Federal judge strikes down lawsuit by 27 towns against affordable housing mandate

Federal Judge Strikes Down Lawsuit by 27 Towns Against Affordable Housing Mandate

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1 min read
January 21, 2026

TRENTON, NJ – A federal judge has dismissed a lawsuit filed by more than two dozen New Jersey municipalities challenging the state’s 2024 affordable housing law, marking another major victory for the state’s long-running fair share housing mandate.

U.S. District Judge Zahid N. Quraishi issued the ruling Monday, denying both the towns’ lawsuit and a request for a motion to stay that would have delayed implementation of the landmark A4/S50 legislation. The decision follows multiple earlier rejections in state courts, including a similar case dismissed with prejudice last year by Mercer County Superior Court Judge Robert T. Lougy.

The towns, many of them among New Jersey’s most affluent and historically exclusionary, had argued that the law overstepped state authority by forcing localities to approve large-scale housing developments. The law requires every municipality to plan for and accommodate its fair share of affordable homes, a constitutional obligation under the Mount Laurel Doctrine.

Adam Gordon, executive director of the Fair Share Housing Center, which defended the law in court, said the ruling should put an end to years of legal resistance. “The courts have been crystal clear — New Jersey’s affordable housing law is here to stay,” Gordon said. “Now that the federal court has rejected these claims in full, it’s time to move forward by producing the affordable homes New Jersey desperately needs.”

According to the Fair Share Housing Center, about 380 municipalities have already submitted compliant housing plans through the state’s Affordable Housing Dispute Resolution Program, which now publicly displays each town’s plan under the transparency requirements of A4/S50.

The 2024 law, signed ahead of the current Fourth Round of Obligations, streamlined how affordable housing requirements are calculated for each municipality based on regional growth, income, and job data. It gives towns flexibility in how they meet those obligations — through 100% affordable developments, mixed-income projects, supportive housing, or redevelopment of underused commercial properties.

The law’s sponsors include Senate President Nicholas Scutari, Senate Majority Leader Teresa Ruiz, Senator Troy Singleton, Assembly Speaker Craig Coughlin, and Assemblymembers Yvonne Lopez, Benjie Wimberly, and Verlina Reynolds-Jackson.

With this ruling, municipal leaders are now expected to move ahead with their approved plans, as the state pushes for new affordable housing construction over the next decade.

Key Points: Federal judge rejects lawsuit from 27 New Jersey towns fighting state’s affordable housing law – Trenton

  • Judge Zahid Quraishi dismissed a federal challenge to New Jersey’s 2024 A4/S50 affordable housing law
  • Similar lawsuits were previously rejected in state courts, including by Judge Robert Lougy in Mercer County
  • More than 380 municipalities have submitted approved plans under the Mount Laurel affordable housing framework
Phil Stilton

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