Is Your Neighborhood Changing? Ramsey Proposes Major New Housing Zone on Island Road

Ramsey’s New Housing Strategy: What You Need to Know About the Island Road Proposal

the staff of the Ridgewood blog

Ramsey NJ, changes are coming to Ramsey’s residential landscape. The borough has officially introduced a proposal for a new affordable housing overlay zone on Island Road, a move that could pave the way for up to 350 new residential units.

Here is the breakdown of the latest development in Ramsey’s ongoing Fair Share Housing journey.

The Proposal: Ordinance 04-2026

The new ordinance seeks to establish the R-5E Island Road Multifamily Residential Overlay District. Spanning 17.2 acres just off the southbound exit from Route 17, this zone is designed to create capacity for at least 70 affordable housing units.

While the zoning allows for a potential 350 total units, Mayor Deirdre Dillon emphasized that this is a framework, not a finalized construction project. “The control remains in the hands of the property owners,” Dillon stated, noting that there is currently no proposed project for the site.

Why Now? Legal Mediation and Deadlines

This move follows a Dec. 12, 2025, mediation agreement. The agreement settled a challenge to Ramsey’s June 2025 Housing Element and Fair Share Plan brought by the nonprofit Fair Share Housing Center and developer North Franklin LLC.

New Jersey municipalities face a strict March 15 deadline to adopt zoning ordinances for affordable housing, making the upcoming weeks critical for the borough council.

Bridging the Gap: Existing Overlay Zones

The proposed R-5E district will sit between two existing affordable housing overlays:

• R-5B Overlay Zone (Former Ramsey Lumber site): 7.1 acres established in 2018 for 140 units.

• R-5C Overlay Zone (425 Island Road): 8.57 acres created in June 2025 for 70 age-restricted units.

Community Concerns and Next Steps

The proposal has met with significant local pushback. The Feb. 11 agenda cited 24 letters of objection, with many residents concerned that the framework invites “speculative and predatory development” that could destabilize established residential blocks.

Important Dates for Ramsey Residents:

• March 3: Planning Board review of the ordinance.

• March 4: Second reading and public hearing at the Borough Council meeting. A final vote is expected at this time.

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