In re Plan for the Abolition of the Council on Affordable Housing

70 A.3d 559, 214 N.J. 444, 2013 WL 3717751, 2013 N.J. LEXIS 727
CourtSupreme Court of New Jersey
DecidedJuly 10, 2013
StatusPublished
Cited by59 cases

This text of 70 A.3d 559 (In re Plan for the Abolition of the Council on Affordable Housing) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Plan for the Abolition of the Council on Affordable Housing, 70 A.3d 559, 214 N.J. 444, 2013 WL 3717751, 2013 N.J. LEXIS 727 (N.J. 2013).

Opinions

Chief Justice RABNER

delivered the opinion of the Court.

This case is about whether a Chief Executive has the authority to abolish independent agencies that were created by legislative action. The issue arises in the context of whether the Legislature delegated the power to abolish the Council on Affordable Housing (COAH or Council) to the Governor. That question turns on COAH’s status, which the Legislature outlined at N.J.S.A. 52:27D-305, and the scope of the Executive Reorganization Act of 1969 (Reorganization Act or Act), N.J.S.A. 52:14C-1 to -11.

The Legislature created COAH to ensure that municipalities fulfill their constitutional obligation to provide affordable housing. Because COAH is an executive agency, the Constitution required the Legislature to place COAH “within” an Executive Branch department. See N.J. Const, art. V, § 4, H 1. At the same time, the Legislature took steps to make COAH independent and insulate it from complete Executive control. To achieve that aim, the Legislature included a term of art in COAH’s enabling legislation when it placed COAH “in, but not of,” the Department of Community Affairs (DCA). N.J.S.A. 52:27D-305(a). That phrase has long been understood to signify an agency’s independence, see N.J. Tpk. Auth. v. Parsons, 3 N.J. 235, 244, 69 A.2d 875 (1949), and the Legislature has used the designation to create dozens of independent offices.

In June 2011, the Governor issued a Reorganization Plan that abolished COAH and transferred its responsibilities to DCA. The Governor relied on the Reorganization Act. The Act, however, extends the Chief Executive’s authority only to agencies that are “of the executive branch.” N.J.S.A. 52:14C-3(a)(1) (emphasis added). Because COAH is “in, but not of,” an Executive Branch department, N.J.S.A. 52:27D-305(a) (emphasis added), the plain language of the Reorganization Act does not encompass COAH. We therefore conclude that the Act does not authorize a Chief Executive to abolish an independent agency like COAH. As a result, we affirm the judgment of the Appellate Division in that regard.

[449]*449We offer no opinion as to whether COAH’s structure should be abolished, maintained as is, or modified. That is a policy decision left to the Governor and the Legislature and guided by the Constitution. This case instead is about the process that the two branches must follow if they decide to alter COAH.

That same process applies to possible changes to other independent entities. The precise language in the Reorganization Act does not authorize a Chief Executive to abolish them and replace their independent boards with a cabinet official who answers to the Chief Executive. Instead, to abolish or change the structure of independent agencies, both the legislative and executive branches must enact new laws that are passed by the Senate and Assembly and signed by the Governor.

We need not address the State’s appeal of a separate Appellate Division order that granted Fair Share Housing Center’s motion in aid of litigant’s rights. The parties have advised us that, in light of recent developments, the appeal is now moot and should be dismissed. We ask the Clerk to enter an order to that effect.

I.

A.

The Legislature enacted the Fair Housing Act (FHA) in 1985, L. 1985, c. 222, in response to the Supreme Court’s two Mount Laurel decisions, see N.J.S.A. 52:27D-302; Hills Dev. Co. v. Twp. of Bernards, 103 N.J. 1, 19, 510 A.2d 621 (1986). The decisions recognized a constitutional obligation on municipalities to “afford[ ] a realistic opportunity for the construction of [theirj fair share of the present and prospective regional need for low and moderate income housing.” S. Burlington Cnty. N.A.A.C.P. v. Twp. of Mount Laurel, 92 N.J. 158, 205, 456 A.2d 390 (1983) (Mount Laurel II) (citing S. Burlington Cnty. N.A.A.C.P. v. Twp. of Mount Laurel, 67 N.J. 151, 174, 336 A.2d 713 (1975) (Mound Laurel I)). The FHA, in turn, created COAH, N.J.S.A. 52:27D-305, and gave it rulemaking and adjudicatory powers to satisfy the [450]*450requirement to provide affordable housing. Hills, supra, 103 N.J. at 20, 510 A.2d 621.

The Legislature codified COAH as an independent agency and structured it in a precise way. COAH was placed “in, but not of, the Department of Community Affairs,” N.J.S.A. 52:27D-305(a)— a term of art that is discussed later. The Council consists of twelve “members appointed by the Governor with the advice and consent of the Senate.” Ibid. The members represent different perspectives related to affordable housing:

four shall be elected officials representing the interests of local government, at least one of whom shall be representative of an urban municipality having a population in excess of 40,000 persons and a population density in excess of 3,000 persons per square mile, at least one of whom shall be representative of a municipality having a population of 40,000 persons or less and a population density of 3,000 persons per square mile or less, and no more than one of whom may be a representative of the interests of county government; four shall represent the interests of households in need of low and moderate housing, one of whom shall represent the interests of the nonprofit builders of low and moderate income housing, and shall have an expertise in land use practices and housing issues, one of whom shall be the Commissioner of Community Affairs, ex officio, or his or her designee, who shall serve as chairperson, one of whom shall be the executive director of the agency, serving ex officio; and one of whom shall represent the interests of disabled persons and have expertise in construction accessible to disabled persons; one shall represent the interests of the for-profit builders of market rate homes, and shall have an expertise in land use practices and housing issues; and three shall represent the public interest.
[Ibid.]

No more than six of the twelve members can belong to the same political party. Ibid. They serve six-year terms with staggered initial appointments, N.J.S.A. 52:27D-305(b), and can be removed only for cause in a proceeding in Superior Court, N.J.S.A. 52:27D-305(e).

The FHA granted COAH “extremely broad” powers that we refer to only briefly. Hills, supra, 103 N.J. at 32, 510 A.2d 621. Within months after its formation, and “from time to time thereafter,” the Council was to divide the State into housing regions and determine the need for low- and moderate-income housing for the State and each region. N.J.S.A. 52:27D-307(a), (b). COAH is also required to establish and regularly adjust criteria and guide[451]*451lines for municipalities to determine their fair share of the region’s need for affordable housing, consistent with the FHA’s overall scheme. N.J.S.A. 52:27D-307(c). The agency determines whether a municipality’s housing plan complies with COAH’s rules and makes it realistically possible for the municipality to achieve its fair share of low- and moderate-income housing. N.J.S.A. 52:27D-314(a), (b).

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Bluebook (online)
70 A.3d 559, 214 N.J. 444, 2013 WL 3717751, 2013 N.J. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-plan-for-the-abolition-of-the-council-on-affordable-housing-nj-2013.