N.J. Supreme Court gives more power to municipalities, puts more onus on developers - BINJE

State municipalities will soon have more power to build senior housing, schools, and other proposals intended to improve the public sphere, based on a New Jersey Supreme Court decision last week that changed the legal framework in place for approving beneficial projects.

Following a case where a 165-unit senior living community was denied by the Montville Zoning Board, the court decided its current four-step process for giving the green light to proposals — based on the 1992 Sica v. Board of Adjustment of Wall decision that established the present procedure — needed revisions.

Under the new standard, developers must prove that their proposed project will benefit the public good and not interfere significantly with a municipality’s zoning plan.

Because the Montville senior housing project was likely to meet both of those standards, a trial court sided with the developer, believing the prospective facility would not impair the town’s goal.

But the implications extend beyond the instance. Future projects not in line with local zoning plans may be denied – regardless of their intent for positive impact – increasing the role of municipalities in development decisions.

“The New Jersey Supreme Court has unanimously sided with Not In My Backyard (NIMBY) interests, sounding a death knell for housing affordability,” Wendy Paul, executive director of the Jersey City Apartment Owners Association, said.

“In fact, they are also in disagreement with the will of the legislature that attempted to solve our housing affordability crisis with a landmark law requiring municipalities to improve zoning so towns deliver on the court’s previously required affordable housing mandates under the Mount Laurel decision.”

Michael Romer, managing partner, Romer Debbas LLP, said there is no doubt that New Jersey, like many parts of the country, faces a shortage of affordable housing and senior housing.

“However, the New Jersey Supreme Court’s recent decision highlights an important principle: solving the housing crisis cannot come at the expense of disregarding local zoning objectives and sound land-use planning. Municipalities must retain the ability to evaluate whether a proposed variance is consistent with the intent and purpose of their master plans and zoning ordinances, he said.

“The path forward requires cooperation—not conflict—among state and local governments and the development community. Increasing housing supply and preserving responsible local planning are not competing goals; both are necessary to create sustainable communities.”

Revising a long-standing test

The court revised the long-standing Sica test so that developers must now prove not only that a project benefits the public, but also that it will not substantially impair the municipality’s zoning plan and zoning ordinance.

This gives towns stronger authority to deny or condition projects that conflict with local planning goals—even when those projects serve important public needs.

The Court found that the old Sica v. Board of Adjustment of Wall (1992) balancing test no longer aligned with the Legislature’s 1997 amendment to the Municipal Land Use Law (MLUL).

The amendment required boards to consider whether a variance would not substantially impair the zoning plans, something the original Sica test did not explicitly require.

The new requirement for developers is that before any balancing of positive and negative criteria, developers must now independently demonstrate that their proposal fits within the town’s long‑term planning framework.

If they cannot make that showing, the variance cannot be granted, regardless of the project’s public benefits.

The purpose of the ruling is to reinforce the legislature’s intent that zoning decisions be made primarily through ordinances, not variances, and to prevent developers from relying solely on the “public good” argument to bypass local planning goals.

Source: https://binje.com/sectors/politics/n-j-supreme-court-gives-more-power-to-municipalities-puts-more-onus-on-developers/