On December 15, 2025, New Jersey confirmed a settlement between the Division on Civil Rights and the City of Hoboken that alters the city’s approach to affordable housing eligibility. The agreement resolves a complaint examining whether Hoboken’s residency-based preference complied with the New Jersey Law Against Discrimination.
- A state civil rights review concluded Hoboken’s local residency preference may have produced unequal racial outcomes in affordable housing access.
- The city will replace the Hoboken-only rule with a four-county regional preference and reinstate affected waitlist positions.
- The settlement includes a minimum $30,000 commitment to affordability and fair housing initiatives, along with required staff education.
Residency Ordinance Review Followed Civil Rights Complaint
The Division on Civil Rights initiated its review after a Black Jersey City resident submitted a complaint stating she was unable to apply for an affordable housing unit in Hoboken, even though she had remained on the waitlist for five years. The complaint asserted that the policy resulted in discrimination based on race.
The review centered on Municipal Ordinance Amendment B-175, adopted in 2019. This ordinance prioritized current Hoboken residents when allocating affordable housing units. It replaced an earlier policy that extended residency consideration across a four-county area consisting of Hudson, Bergen, Passaic, and Sussex counties.
Although the ordinance did not explicitly reference race, the Division assessed whether it caused a disparate impact under the Law Against Discrimination. The LAD bars housing discrimination related to race, national origin, and other protected characteristics, including policies that appear neutral but generate disproportionate effects. The review identified concerns that the Hoboken-only preference may have limited access for residents of nearby municipalities that are more racially diverse than Hoboken.
Policy Revision Restores Regional Preference and Waitlist Status
As part of the settlement, Hoboken agreed to revise its ordinance by removing the city-only residency requirement. The city will return to a regional preference covering the four COAH Region 1 counties: Hudson, Bergen, Passaic, and Sussex.
This regional standard will apply to newly constructed affordable housing units used to meet Hoboken’s affordable housing obligations from 2025 through 2035, in accordance with the Mount Laurel doctrine and applicable affordable housing laws.
The settlement also outlines corrective actions for individuals affected by the prior rule. Applicants who were denied or bypassed on the waitlist because of the residency preference will regain their original waitlist placement. Individuals removed from the waitlist due to missed annual recertifications may request reinstatement if their initial application occurred before the ordinance revision. Those previously skipped or removed will be evaluated for opportunities to apply for affordable housing units, provided eligibility requirements are met.
Funding Commitments and Administrative Requirements
Under the agreement, Hoboken will dedicate no less than $30,000 to additional affordability assistance and fair housing-related projects or training efforts. City employees involved in affordable housing administration will be required to complete instruction on housing discrimination laws.
The settlement establishes that affordable housing opportunities in Hoboken will be accessible to a more diverse applicant pool, aligning the city’s housing practices with state civil rights requirements.
