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Montvale’s “Affordable Housing” Obligation Reduced from 348 to Just 3 Units Following Legal Battle

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the staff of the Ridgewood blog

MONTVALE, NJ — July 2025 — In a significant development for local planning and property development, Mayor Michael Ghassali announced that Montvale will be responsible for constructing only three affordable housing units over the next decade—down from the 348 units originally proposed by a state agency in October 2024.

This announcement comes after prolonged legal challenges and negotiations involving a 27-town coalition known as Local Leaders for Responsible Planning, spearheaded by Ghassali.

⚖️ Court Ruling Slashes Housing Mandate

On June 27, Ghassali informed residents that a state judge reduced Montvale’s official “prospective need” to 205 units for the 2025–2035 period. However, due to limited vacant land that meets state criteria, the borough’s Realistic Development Potential (RDP) was determined to be just three units, based on an 81-page Housing Element and Fair Share Plan (HEFSP) drafted by Colliers Engineering & Design.

🛠️ The borough identified only two viable parcels under the Vacant Land Adjustment (VLA) formula, supporting the lower figure.

🏘️ Affordable Housing Strategy

In addition to the 3-unit RDP:

  • 202 units remain as “unmet need,” for which no buildable space currently exists.

  • Montvale must also address 30 units of “present need”, representing substandard housing in need of rehabilitation.

  • A borough-run rehab program—supported by the Bergen County Home Improvement Program—aims to meet this requirement.

The Planning Board approved the HEFSP on June 17, with the Borough Council following on June 24. Submitting the plan by the June 30 deadline shields Montvale from builder’s remedy lawsuits, which could force high-density development in undesignated areas.

🏗️ Past Efforts Count Toward Surplus

Montvale’s proactive rezoning of commercial areas since 2018 has already yielded a surplus of 44 affordable units, including developments like:

  • Thrive at Montvale

  • Village Springs

  • The District

  • Woodland Square

  • 26 N. Kinderkamack Road

🗣️ Mayor Ghassali on the Decision

In a resident email titled “348 to 3 – Housing Plan”, Ghassali cited Montvale’s geographical limitations—proximity to highways, rail lines, and the state border—as justification for the significant reduction. He also criticized the state’s housing methodology, calling it flawed, though he declined to provide further details.

⚠️ Disputes Remain Over Housing Obligation

Advocacy group Fair Share Housing Center disagrees with how municipalities calculate their required contributions. They argue that the 25% compliance rule applies not only to RDP, but also to the larger unmet need.

A final court interpretation is still pending.

📄 The full HEFSP can be viewed at www.montvale.org.

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One thought on “Montvale’s “Affordable Housing” Obligation Reduced from 348 to Just 3 Units Following Legal Battle

  1. over in Ridgewood, we aren’t doing this, since we are…

    RICH and STUPID

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