West Orange May Push Back Against NJ’s Affordable Housing Quota

WEST ORANGE, NJ — Will West Orange be challenging the state’s new affordable housing numbers? It’s an option that’s on the table, administrators acknowledged during Monday’s town council meeting.

In October, state officials released a new round of affordable housing quotas that New Jersey towns and cities will have to meet over the next 10 years, including West Orange.

The calculations include numbers for “present need” (existing housing units deemed substandard/deficient and in need of repair), and “prospective need” (the number of new units that will be needed based on population trends).

Here are the totals for West Orange:

• Present Need – 409
• Prospective Need – 660

Municipalities have to come up with a plan to meet their quotas and get it approved by state officials, unless they plan to challenge the numbers.

This possibility came up at Monday’s council meeting while discussing a resolution to appoint a “municipal housing liaison” who will be responsible for oversight of West Orange’s affordable housing program – and who must be familiar with the state’s formula.

The council voted to table the resolution until their next meeting. A decision on the appointment will need to be made by Feb. 3.

Michelle Casalino said that towns have the right to challenge the state’s figures, saying that West Orange was “quoted a high number.”

“Are we challenging that number at this point in time?” Casalino asked assistant business administrator Peter Smeraldo.

“I think we’re going to look to challenge those numbers,” Smeraldo replied, adding that the decision hasn’t been made yet – and ambiguity with the state’s procedures to do so is complicating the matter.

The town is working with a consultant on the issue. But a decision will eventually have to be made, he added.

“This is something that we have to address,” Smeraldo said.

Watch footage from Monday’s meeting below (video is cued to the discussion).

West Orange isn’t the only municipality in the area that is wrestling with the issue of affordable housing.

Towns and cities don’t have to create the housing themselves, but must ensure that the threshold is met, often by requiring affordable housing units as part of local real estate development projects.

This has caused some bad blood between the state and some municipalities, including Millburn and Cedar Grove, which have joined a lawsuit with several other New Jersey towns seeking to overturn the law. Read More: 2 Essex County Towns Join Lawsuit Againste NJ Affordable Housing Quotas

Some elected officials have supported the law, arguing that it’s time for “ultra-wealthy communities” to create their fair share of affordable housing. Read More: NJ Advocates Defend State's Affordable Housing Rules Amid Lawsuit

“This is a statewide issue that is driving up costs for everyone living in our state, not just in the suburbs or cities but across the board,” Newark Mayor Ras Baraka said.

“Most New Jerseyans understand the need for more housing because most New Jerseyans want to reduce costs, prevent homelessness and raise our standard of living,” Baraka said. “But we can’t do this by fighting each other. When we waste time fighting amongst ourselves, housing continues to go unbuilt and we all lose.”

Some towns have already gotten a jump on the process, with one New Jersey mayor declaring that a recent settlement isn’t perfect, but “doesn’t bleed out forever and doesn’t cost us lawyers.” Read More: NJ Town Reaches Settlement, Will Build 1,500 Affordable Housing Units

Others towns aren’t so eager to reach a deal, however.

Millburn was among the first municipalities to join the lawsuit against the state’s new round of quotas. The town has a past history of pushing back against affordable housing obligations handed down by the state.

• See Related: Budging On Main Street Building Unlikely, Millburn Says
• See Related: Millburn ‘Disappointed’ With Affordable Housing Decision From Court

The Cedar Grove Township Council approved a resolution opposing the latest round of affordable housing obligations in March, agreeing to kick in $10,000 in 2024 and $10,000 in 2025 to help fund the legal battle against them.

“There's no flexibility, it appears, for towns like ours that have always worked in good faith to try to fully comply,” Cedar Grove Councilman Joseph Maceri said.

The coalition may be in for a serious battle, however, housing advocates say.

The Fair Share Housing Center has called the legal effort to derail the new law a “smokescreen,” and said it will likely be thrown out of court.

“This lawsuit is nothing new — it’s supported by many of the same ultra-wealthy communities who have fought affordable housing for decades, every step of the way,” the nonprofit charged.

There are several ways that towns and cities can meet their affordable housing quotas, advocates said:

“Municipalities can choose from a range of options — including 100% affordable housing, mixed income housing, preservation of existing affordable homes that otherwise would no longer be affordable, and accessory dwelling units that a property owner can place on their property. The recently-enacted law and associated bills give towns additional tools like new bonuses, financing options, and credits to meet their obligation.”

Currently, the state needs to rehab 65,410 affordable homes or apartments to meet its housing needs. Looking ahead, an additional 84,698 units will need to be built across New Jersey over the next decade, officials say.

These numbers still fall short of what the National Low Income Housing Coalition estimates is needed for extremely low-income households, which is 214,475 rental homes.

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