Multiple N.J. towns fight back against state affordable housing legislation

By Rebecca Heath | NJ Advance Media for NJ.com Updated: Nov. 18, 2025, 6:53 p.m.

Several New Jersey towns are pushing back against proposed legislation in the state Legislature that would loosen requirements for affordable housing projects developed by religious and nonprofit organizations.

Towns including Chatham, Morris Plains and Monroe have passed resolutions opposing the bill, S4736, introduced on Oct. 27. The town resolutions argue that the measure’s provisions would be an “egregious assault on municipal autonomy.”

The bill would require local planning boards in the state to approve certain property conversions into housing developments if they meet the measure’s rules, and would greatly limit the reasons towns can use to reject those projects.

This would allow developers to “bypass” the local planning process, the resolutions claim.

Under the legislation, buildings could exceed local height and density restrictions, “regardless of a municipality’s ability to ensure safety,” according to the resolutions.

Projects could be built at densities up to 40 units per acre and one story taller than local zoning requirements allow.

The bill would require that 20% of the new housing units be designated as affordable, but the councils argue that allowing the remaining 80% to be market rate could make it more difficult for the towns to meet the state’s fourth-round affordable housing requirements.

“It does not make sense to mandate municipalities meet certain affordable housing requirements, to work with their professional planners, lawyers and the community to craft a detailed housing plan for the 4th round, only to have the legislature turn around that circumvents and undermines that process and preempts local zoning,” Chatham Borough Mayor Carolyn Dempsey said in a statement.

Chatham Borough Council President Jocelyn Mathiasen said at last week’s council meeting—where the resolution passed unanimously—that the proposed bill would have a “significant” impact on the borough.

“The state likes to ram through a lot of legislation during lame duck and not give time for any opposition to build up to that legislation,” Mathiasen said.

The councils have forwarded their resolutions to several state officials.

“This bill would strip our local leaders of the ability to make thoughtful planning decisions and would strong-arm our towns into accepting even more high-density projects without any regard for the added burdens on local infrastructure,” Assemblywoman Michele Matskoudis said in a statement.

“I stand with every municipality fighting to protect responsible, sensible development,” she added.

The bill would need to be passed by both houses of the Legislature and signed by the governor to become law