Judges rule state can seize affordable housing funds, but towns allowed to appeal
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-5257-11
MOTION NO. MBEFORE PART: Y
JUDGE(S): CUFF
FUENTES
MESSANO
“In the light of the record presented, we are satisfied that a global preliminary injunction, restraining COAH from transferring funds held in trust by municipalities to meet their affordable housing obligations, is not warranted. For the past four years, municipalities have known of their obligation to present affordable housing plans to COAH for approval to secure
the availability of trust funds and “commit” or protect such funds from forfeiture under N.J.S.A. 52:27D-329.2d. The ambiguity, if any, concerning the term “commit” has not precluded municipalities from seeking COAH’s approval of particular housing projects on a case-by-case basis. The Governor’s recent rejection of legislative efforts to provide a more concrete definition of “commit” does not transform a fouryear-old deadline into an unforeseen event warranting immediate judicial intervention.
We are nevertheless concerned that, under these circumstances, COAH may sieze affordable housing trust funds without giving the affected municipalities adequate notice and an opportunity to contest the transfer. We, therefore, order that before any transfer is effectuated, COAH must provide the affected municipality with written notice describing the exact “