NJ Affordable Housing Crisis: How One Town’s Data Center Deal Ended Up in Court
the staff of the Ridgewood blog
Montvale, NJ — A major legal battle is brewing in Bergen County over the future of the historic 44-acre KPMG property. What was supposed to be a straightforward plan to meet New Jersey’s strict affordable housing mandates has now devolved into a high-stakes courtroom showdown over data centers, special tax breaks, and the local “overdevelopment madness.”
The Fair Share Housing Center, a powerful housing advocacy non-profit, has officially challenged Montvale’s revised Fourth Round affordable housing strategy. As a result, State Superior Court Judge Lina Corriston has ordered both sides back to the briefing table, with a crucial case management conference now set for June 22, 2026.
The Deal: Data Centers vs. Affordable Homes
At the heart of the controversy is a revised settlement agreement submitted on April 10, 2026. Under the proposed plan, developer S. Hekemian Group (SHG Montvale) would transform the prime Chestnut Ridge Road site into a dual-use property featuring:
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A massive commercial data center operating under a lucrative PILOT (Payment in Lieu of Taxes) agreement.
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Multiple residential housing units.
While the borough views this as an innovative economic win, housing advocates are blowing the whistle.
“By tying its housing plan to a data center backed by special tax treatment, Montvale is attempting to sidestep its obligation to create affordable homes through a lawful and transparent process,” warns Jag Davies, spokesperson for the Fair Share Housing Center.
Montvale’s Looming Housing Map: By the Numbers
The former KPMG headquarters at 3 and 51 Chestnut Ridge Road isn’t the only property hanging in the balance. According to recent court filings submitted by attorney Antimo Del Vecchio, the borough’s conceptual development pipeline targets four major sites:
| Development Site | Total Proposed Units | Affordable Housing Units Allocated |
| KPMG Site | 250 Units | 50 Units |
| TOP Site | 35 Units | 0 Units |
| Glenview / 25 Philips Site | 135 Units | 24 Units |
| Reckitt Site | 650 Units | 109 Units |
Note: Town officials emphasize that these plans remain fluid and can still be “refined, changed or altered” by developers.
Mayor Mike Ghassali Slams “Overdevelopment Madness”
Montvale Mayor Mike Ghassali is fiercely defending the borough’s approach, calling the current system fundamentally broken. Under New Jersey’s 50-year-old Mount Laurel doctrine, Trenton is demanding the creation of roughly 200,000 affordable housing units statewide.
According to Ghassali, the current math forces towns into a corner: to make a profit and deliver those 200,000 affordable units, private developers must build an staggering 800,000 luxury homes at full market rate.
“This is a fact and a genuine problem!” Ghassali stated. “There are close to 100,000 vacant, abandoned buildings across the state—let’s help rehab these buildings… Let’s all work together, Republicans and Democrats alike, to find a way to fund 100% affordable housing development and stop this overdevelopment madness.”
Despite the Fair Share legal roadblock, Mayor Ghassali remains confident, stating that the borough’s proposal is “constitutionally compliant based on any objective standard of review.”
What’s Next? Key Court Deadlines
The legal calendar is filling up quickly as Bergen County watches closely:
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May 29, 2026: Deadline for primary legal briefs to be submitted to the court.
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June 12, 2026: Deadline for responses from both parties.
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June 22, 2026: Case management conference before Judge Corriston.
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Putting low income people in Montvale does not make sense. Most of them will need public transit to get to their jobs.
The state needs to work with developers to build good affordable housing in urban centers, even rehabbing vacant buildings as Mayor Ghassali suggests, because that’s where public transit and the jobs are.
100%. Anywhere they can be rarely seen and definitely not heard.
KPMG already has a data center in Montvale on it’s sprawling campus. They’ve been there forever and provide a ton of great jobs, let them do their thing.
Think the reference to KPMG is to their old properties at Three (and 51 ) Chestnut Ridge Road. They have left that space and are now where Benjamin Moore 75 Chestnut Ridge Road was at one time.