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- posted: Feb. 17, 2025
For decades, New Jersey has attempted to help low-income residents obtain affordable housing in our very expensive residential real estate market. Dating back to the state Supreme Court’s Mount Laurel decision in 1975, courts and lawmakers have sought ways to implement this mandate within the state’s municipalities. During this period, property taxes have also been a major concern. Throughout the Garden State, many retired residents have been compelled to leave their longtime family homes because of concerns about paying taxes on a fixed income.
While it still faces court challenges from multiple towns, a new state law promotes a solution that supporters believe can address both the affordable housing shortage and the property tax struggles of older residence. Under the legislation, accessory dwelling units (ADUs) can qualify as affordable housing under the Mount Laurel Doctrine. ADUs are secondary residential units on a single-family property. They can take the form of detached structures, garage conversions or basement apartments. Sometimes referred to as “in-law suites” or “granny flats” ADUs are increasingly recognized as a flexible, cost-effective way to expand low-cost residential options without drastically altering the character of a community.
The amended fair housing laws encourage local governments to revise zoning ordinances so that ADUs are permitted in residential areas. Zoning rules regarding minimum lot sizes and parking requirements have hindered ADU development. Municipalities are incentivized to count ADUs as part of their Mount Laurel obligations, provided they meet affordability standards. Furthermore, the state is providing funding and technical assistance to support the creation of ADUs, particularly for low- and moderate-income households.
Expending the presence of ADUs can increase the housing supply and give homeowners, including empty nesters, the opportunity to earn supplemental income by renting out part of their property. The term “in-law suites” reflects how they can enable members of extended families to live close together, fostering multigenerational support systems.
Despite their potential and the fact that they don’t alter a suburban or rural landscape in the same way as a large apartment building, ADU adoption faces challenges such as community resistance, construction costs and compliance with building codes. However, this housing option does appear to be on the rise in the Garden State.
If you’re considering the creation of an ADU on your property, or you’re negotiating a contract to live in one, it’s important to discuss the legal aspects of such a move with a knowledgeable attorney. The Law Offices of James C. Zimmermann has locations in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley to assist clients throughout North Jersey. Please call 973-764-1633 or contact us online for an appointment.
