State of NJ Mandated Affordable Housing Requirements - Explanation

The following bulletin has been prepared regarding the Borough’s affordable housing obligation. Please note that there are currently no active plans for any multifamily development in any of the Borough’s overlay zoning districts. There are also no development applications or plans before the Borough at this time for multifamily development. FAQ and Map also attached. 

Affordable Housing Update – Explained Simply

In 2024, the State of New Jersey Department of Community Affairs changed the rules for how towns must handle affordable housing. The legislation required the New Jersey Department of Community Affairs (“DCA”) to impose an affordable housing obligation on every municipality in the State (except for qualified urban aid communities).

The State told every town how many affordable housing units they are responsible for. Midland Park was assigned 155 affordable units.

If the Borough had to meet that number through typical large housing developments (where 20% of units are affordable and 80% are market rate), that could have meant zoning for over 775 total housing units. Many nearby towns were also given large numbers, including:

• Ridgewood: 427 affordable units
• Wyckoff: 334 affordable units
• Waldwick: 164 affordable units

What Did Midland Park Do?

Because Midland Park is mostly built-out, the Borough studied how much vacant or developable land actually exists. That study showed there realistically isn’t land available to support large-scale development.

However, courts have said that even towns with little available land must still plan for at least 25% of their assigned number.

For Midland Park, that means planning for 39 affordable units (25% of 155).

Why Did the Borough Reach a Settlement?

Affordable housing plans must be reviewed by the Fair Share Housing Center, a nonprofit housing advocacy group.

The Borough reached a settlement agreement with them in January 2026. This was important because without an agreement, the Borough could have faced “builder’s remedy” lawsuits. That could have allowed developers to bypass some local zoning controls and potentially build larger projects than the Borough preferred.

The settlement helps the Borough maintain more local control.

How Is the Borough Meeting the 39-Unit Requirement?

The plan includes:

• 1 affordable unit already approved at 577 Godwin Avenue
• 5 affordable units in a 100% affordable building reserved for veterans
• At least 5 affordable units as part of the redevelopment of 90 Midland Avenue
• A proposed new overlay zone (MFO-3- Multifamily Overlay) that could create at least 17 affordable units
• Increasing density in an existing overlay zone (MFO-2- Multifamily Overlay) that could allow at least 10 additional affordable units

Together, these strategies meet the required 39 units.

What Is an Overlay Zone?

An overlay zone does not change what a property owner can currently do with their land. It also does not mean that the Borough is seeking to acquire anyone’s property.

It simply creates an option for multifamily housing under certain conditions. Property owners are not required to build anything. Property owners are also not required to sell their homes.

In addition, the proposed MFO-3 District requires a minimum lot size of 1.5 acres. That means that multiple properties would need to be combined to create a qualifying site.

Are There Any Projects Planned Right Now?

No. There are:

• No active plans
• No applications
• No pending approvals for multifamily development

If a project is ever proposed, it must go through a public hearing process before the Planning Board or Zoning Board. Property owners within 200 feet would be notified and would be allowed to attend the meeting to ask questions and offer opinions.

Bottom Line

The State required Midland Park to address affordable housing.

The Borough’s plan:

• Reduces the number to a realistic level
• Protects local zoning control
• Avoids costly lawsuits
• Maintains the character of the community

At this time, there are no new developments proposed.

The Borough has acted prudently to address the obligations imposed by the State in connection with affordable housing.  We believe that the Borough’s HE&FSP will address Midland Park’s obligation without substantially altering our community’s residential character.

We trust this provides a clearer understanding of the matter and helps address any misinformation.

Wendy Martin, R.M.C Borough Administrator/Clerk