In re Plan for the Abolition of the Council on Affordable Housing
70 A.3d 559
N.J.2013Background
- COAH was created by the Fair Housing Act to ensure municipalities provide affordable housing and was placed in but not of the Department of Community Affairs (DCA).
- The Governor issued a 2011 Reorganization Plan abolishing COAH, transferring its powers to DCA, and replacing the twelve-member COAH Board with the DCA Commissioner.
- The Governor relied on the Executive Reorganization Act of 1969, which provides authority to reorganize agencies that are of the executive branch.
- COAH is an independent agency with a statutorily defined, board-driven structure intended to balance multiple interests in affordable housing.
- The Appellate Division invalidated the Reorganization Plan, holding that the Reorganization Act does not authorize abolition of an in but not of agency like COAH; the State sought Supreme Court review.
- The Supreme Court held that COAH is not subject to the Reorganization Act because it is an in but not of agency, and therefore the Governor could not abolish it under that Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Reorganization Act authorizes abolishing COAH. | State argues the Act applies to agencies 'of the executive branch' and includes in but not of agencies. | State contends COAH is subject because it is within a department and thus within the Act's scope. | No; the Act does not authorize abolishing COAH. |
| Whether COAH’s status as ‘in, but not of’ the department excludes it from the Reorganization Act. | FSHC argues the Act excludes in but not of agencies from its reach. | State contends that despite in but not of status, COAH remains within the Act’s reach as an executive entity. | COAH is not subject to the Reorganization Act; ‘in, but not of’ excludes it from the Act. |
Key Cases Cited
- Parsons, 3 N.J. 235 (New Jersey Supreme Court 1949) (establishes the 'in but not of' concept for independence of agencies)
- Hills Dev. Co. v. Twp. of Bernards, 103 N.J. 1 (New Jersey Supreme Court 1986) (recognizes COAH as having independent status within the statutory framework)
- Brown v. Heymann, 62 N.J. 1 (New Jersey Supreme Court 1972) (upheld constitutionality of the Reorganization Act re: ‘rearranging’ existing agencies; addressed limitations on the Act)
- In re COAH, 424 N.J. Super. 410 (App. Div. 2012) (Appellate Division invalidated the Reorganization Plan for COAH as beyond the Act's scope)