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State judge dismisses challenge to affordable housing law

By Zach Blackburn, September 30 2025 3:08 pm

A state judge dismissed a lawsuit from 27 municipalities challenging the legality of affordable housing legislation signed into law last year. 

In an 81-page ruling, Superior Court Judge Robert Lougy dismissed a lawsuit arguing new mandates for affordable housing construction in certain towns exceeded constitutional requirements. Gov. Phil Murphy signed a bill last March that set a path for future enforcement of the New Jersey Supreme Court’s Mount Laurel Doctrine — a fifty-year battle to mandate that every municipality accept its fair share of low- and moderate-income housing.

“Because all counts of Plaintiffs’ complaints fail to state a legal claim, the Court grants Defendants’ application for an order dismissing both complaints with prejudice,” Lougy wrote in the order.

The Fair Share Housing Center, a nonprofit advocacy group that argued the motion to dismiss, extolled Lougy’s ruling.

“It’s outrageous that a handful of wealthy towns are spending hundreds of thousands of dollars in taxpayer money trying to block the affordable homes New Jerseyans desperately need,” said Josh Bauers, director of Exclusionary Zoning Litigation for Fair Share Housing Center. “Thankfully, Judge Lougy saw through their baseless claims — and the overwhelming majority of municipalities are already moving forward to create the homes our families, seniors, and people with disabilities urgently need.”

The legal challenge started last September with a coalition of nine towns, led by Montvale Mayor Michael Ghassali. Eighteen other towns have since joined the lawsuit.

In January, Lougy declined a request from the towns to delay the law from taking effect.

“The trial court’s rogue decision held that municipalities and mayors cannot even challenge the affordable housing process because it is optional. We are appealing because there is nothing optional about mandating hundreds of thousands of new units in our communities,” said Ghassali.  “We know it will be a multi-year effort to fight 50 years of disastrous Mount Laurel Doctrine law. Our consortium of over 30 municipalities, representing over half a million New Jerseyans, looks forward to bringing this case to the Appellate Division while continuing our equal protection challenge in federal district court.”

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