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Allendale says Dec. 31 settlement ends housing fight; borough wins 10 years of builder's-remedy immunity and about $500,000
Summary
Borough attorney Ray West told the council the borough settled its fair-share affordable-housing case and the Avalon Bay dispute on Dec. 31, 2025, securing a 10-year immunity from "builder's remedy" lawsuits and receiving roughly $500,000; councilmembers said they will monitor sewer impacts as nearby Saddle River projects seek sewer capacity.
BOROUGH OF ALLENDALE — Borough attorney Ray West told the council on Jan. 5 that Allendale resolved two interlinked legal disputes on Dec. 31, 2025: the borough's fair-share affordable-housing obligation and a separate Avalon Bay lawsuit. "We were able to settle both fair share housing obligation and the Avalon Bay litigation," West said, describing the outcome as a "significant win" for the borough.
West said the agreement includes 10 years of immunity from builder's-remedy claims, language he said was negotiated to limit impacts on the downtown. "What ultimately resulted was a significant win for the borough in terms of the affordable housing plan that was ultimately approved," he said. West also said the borough received about $500,000 as part of the overall resolution: "we even got $500,000, a half a million dollars from the kitty to boot."
Why it matters: Builder's-remedy lawsuits can allow developers to seek court orders to override local zoning if a municipality fails to meet state affordable-housing obligations. The settlement, West said, reduces the near-term legal exposure Allendale faced at a calendar deadline on Dec. 31 and preserves the borough's control over downtown zoning for now.
Council reaction and regional implications: Mayor Wzinski and council members characterized the days before the deadline as intense and credited staff, special counsel and outside consultants. Several council members raised immediate concerns about sewer capacity and regional spillover: West and the mayor described multiple Saddle River projects that may rely on Allendale's sewer system, with council members saying they will attend a Saddle River planning-board meeting and press for clarity about sewer use and infrastructure responsibilities. One councilmember cited proposed project counts discussed at the meeting (examples in debate included projects of 58, 128 and 265 units), and the council said it will continue to track school- and service-level impacts.
What the borough will do next: Council President Homeman said the borough will register as an intervener in relevant utility or development proceedings when appropriate and will meet with neighboring municipalities and developers to clarify sewer agreements. The borough attorney noted some details remain to be finalized in implementation and that certain approvals and transfers tied to the settlement are still in process.
What was not decided: The council did not take any new land-use votes at the Jan. 5 meeting; the remarks described a legal settlement and next steps for monitoring and coordination. Details about any operational or capital projects needed to accommodate added sewer usage were not specified at the meeting. The borough also said some contractual and property transfers connected to Veolia's work and New Street construction remain under review.
The meeting record shows the council discussed follow-up contacts with Saddle River planners and additional town-hall outreach to explain the settlement to residents.
