More than two dozen New Jersey towns have asked the U.S. Supreme Court to pause a March 15 affordable housing deadline, warning of lawsuits and community impact, while housing advocates say delays would worsen the state’s shortage.
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More than two dozen municipalities in New Jersey have escalated their legal battle over affordable housing rules to the nation’s highest court, asking the U.S. Supreme Court to halt a looming March 15 compliance deadline while appeals continue.
The coalition, Local Leaders for Responsible Planning (LLRP), filed an emergency application seeking a stay after losing multiple rulings in lower courts. Both a federal district judge and the Third Circuit Court of Appeals rejected earlier attempts to block the deadline.
What towns want
Under New Jersey’s 2024 Affordable Housing Reform Law, municipalities must rezone land to allow construction of affordable housing or risk losing legal protection from so-called “builder’s remedy” lawsuits — cases that allow developers to sue towns that fail to meet housing obligations and potentially build high-density projects.
Town leaders argue they face financial, political, and reputational damage if forced to comply before their legal challenge is resolved.
Montvale Mayor Mike Ghassali, whose borough leads the case, said the coalition is “taking the fight to the highest court to protect our communities.”
State and housing advocates push back
Housing advocates say most towns are already complying. According to the Fair Share Housing Center, about 380 municipalities had submitted acceptable housing plans by the end of 2025.
Advocates argue the law simply enforces long-standing housing principles requiring municipalities to provide their fair share of affordable housing.
They also warn that delaying implementation would stall construction and worsen the state’s housing shortage.
The legal dispute
The towns claim the new law:
- Violates the Mount Laurel doctrine
- Imposes unfunded mandates
- Transfers excessive power to the courts
- Shifts housing burdens from major cities to suburban communities
Courts so far have disagreed. A state judge ruled the legislature has authority to enforce housing obligations, while a federal judge said municipalities cannot bring such constitutional challenges in federal court — and noted the towns would still face the same obligations even if the new law were struck down.
What happens next
The Supreme Court’s emergency docket typically handles urgent matters quickly, meaning a decision on the stay could come within days or weeks.
If the stay is denied, towns must rezone by March 15 or risk a wave of developer lawsuits — potentially reshaping suburban zoning across New Jersey.
