Denellan council adopts ordinances to meet state affordable-housing rules; South Second plan yields 24 townhomes with six affordable units

Denellan Borough Council on March 2 adopted three ordinances and a package of administrative documents intended to satisfy New Jersey’s fourth-round affordable-housing regulations and secure immunity from ‘builder remedy’ lawsuits through 2035.

Gabe Baylor, a municipal planner with Harbor Consultants, told the council the package includes three land-use ordinances—the South Second redevelopment plan, an amended downtown redevelopment plan and an updated affordable housing ordinance—plus an affordable-housing spending plan and operational manuals. "This deadline has been determined by the state ... to be approved by the mayor and council by March 16, 2026," Baylor said, adding approval is necessary "for the borough to be protected from any builder remedy lawsuits until 2035." (Gabe Baylor.)

Why it matters: adopting the ordinances and the administrative documents is the borough’s path to meeting its statutory obligations under state housing rules and avoiding court-ordered zoning changes. The South Second parcel is positioned as Denellan’s primary compliance mechanism: the plan envisions 24 market-rate stacked townhomes in Denellan with six affordable units; Piscataway would include a separate 140-townhome component on adjacent land. The council also amended the downtown redevelopment plan to increase any future development’s affordable set-aside from 15% to 20% to reduce the borough’s unmet need.

Council and staff framed the approach as narrowly targeted. Mayor Jason Sento said the borough has focused redevelopment on blighted industrial parcels and downtown mixed-use corridors, not single-family neighborhoods, and praised planners for limiting Denellan’s required affordable-unit obligation. "We're not pushing this into single-family zoning," the mayor said, adding the administration seeks to use redevelopment for measured economic development rather than high-density conversion of single-family zones. (Mayor Jason Sento.)

The council also approved several administrative documents required by the state: an affordable-housing spending plan (projected balance rising from $154,460 to an estimated $182,240 by 2035), a marketing plan, an operating manual covering income eligibility and monitoring, and an affordability-assistance manual that addresses rent-payment assistance, emergency repairs and down-payment/closing-cost support for ownership units. Jessica Almeida, the borough’s housing attorney, noted the state model template has changed multiple times and said further amendments may be required, but that adoption by the March 16 deadline is necessary to retain statutory protection; she also said a midpoint review is expected after five years. (Jessica Almeida.)

Public comment and legal process: During the public hearing, resident Jeff Best asked whether the South Second plan would physically connect to the adjacent Nell property and whether the measure amounted to spot zoning. Planners and borough counsel said the redevelopment plan functions as overlying zoning for the parcel (currently industrial), that connection would be limited to emergency access, and that the proposal followed the statutorily required redevelopment-study and planning-board review process. The planning board had already deemed the ordinances consistent on Feb. 23, and the ordinances were introduced at the Feb. 16 meeting. (Jeff Best.)

Council action: The three ordinances—2026-03 (amended downtown redevelopment plan phase one incorporating South Second), 2026-04 (redevelopment plan for Block 85, Lot 3) and 2026-05 (affordable-housing program regulations)—were put to roll-call votes and recorded as unanimous 'yes' by Councilmembers Albertson, Lamb, Rios, Scott, Sigman and Vandermark.

What’s next: The borough must file or maintain the administrative materials and is expected to perform a five-year midpoint review as required by the adopted framework. Jessica Almeida cautioned the state template may require future edits; the council retained authority to amend implementing details as real-world development fees and program administration warrant.

Reported facts and caveats: The planned South Second project is described as conceptual in the council presentation; site plans, final unit counts and final affordability targeting remain subject to future approvals and the detailed site-plan process. The spending-plan dollar figures were presented as projections and subject to adjustment based on actual development-fee collections.

The council also passed a slate of related resolutions to adopt the spending plan, affirmative marketing plan, operating manual and affordability-assistance manual, among other routine items. The council adjourned after public comment and additional department reports.