Court lets N.J. towns contest housing-fund seizures: Appeals court says N.J. towns must give state affordable housing funds but can also challenge seizure

Nearly 200 towns will have to give the state at least $160 million set aside for low- and moderate-income housing, but not before the Christie administration allows them to contest the seizure, a state appeals court ruled late today. The ruling by the three-judge panel, which heard arguments presented by lawyers for the New Jersey State League of Municipalities and the Fair Share Housing Center, came four days before the municipalities would have had to transfer the money. In issuing the decision, the court helped Gov. Chris Christie’s administration avoid having a gaping hole in its $31.7 billion budget for the new fiscal year that began July 1.

– Star Ledger

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