Court Strikes Down COAH Rules

In a decision delivered today, the state’s Appellate Division struck down key provisions of the Council on Affordable Housing (COAH) rules regarding municipal affordable housing obligations for the period 1999 to 2014. It mandated that COAH adopt lawful regulations within six months and barred the stateIn a decision delivered today, the state’s Appellate Division struck down key provisions of the Council on Affordable Housing (COAH) rules regarding municipal affordable housing obligations for the period 1999 to 2014. It mandated that COAH adopt lawful regulations within six months and barred the state agency from acting on any of the more than 250 pending petitions by municipalities for approval of their housing plans until lawful rules are adopted.

In its decision, the court invalidated COAH’s methodology for determining municipal fair-share obligations. Among other rulings, it declared that COAH could not authorize municipalities to meet their housing obligations by requiring builders to provide affordable housing unless the builders were also granted compensating incentives.

The decision was made on a case that was first filed by the New Jersey Builders Association and three other local organizations in 2005.