We were all set to post about the New Jersey Appellate Division’s recent opinion in AAHMT Property, LLC v. Township of Middletown, No. A-0844-24 (June 27, 2025), when Christian Britschgi at Reason beat us to it.

In “New Jersey Court Strikes Down Town’s Use of Eminent Domain To Skirt Affordable Housing Mandates,” he summarizes and analyzes the case, which is a beef between an affordable housing developer and a local government that is trying to use eminent domain to stop it. 

AAMHMT wants to rezone property to allow for higher density uses, and sued the township, alleging that the town is violating New Jersey’s “Mount Laurel” housing requirements, and this project should be allowed to proceed. In response, the town initiated eminent domain. The trial court invalided the taking, and the Appellate Division affirmed. 

Christian writes: 

Middletown has a history of using eminent domain to prevent the construction of affordable housing. In 2023, Adoni Property Group filed a builder’s remedy lawsuit against the town for blocking a 474-unit luxury development, which included 71 affordable housing units. In that case, Middletown officials claimed the “seventy-one units of affordable units in a sea of luxury apartments” would not be a substantial contribution to Middletown’s affordable housing inventory, reports the Asbury Park Press.

…

Housing mandates distort real estate markets and increase the government’s role in the housing sector. Despite their fundamental flaws, invoking eminent domain to circumvent these obligations is also harmful and violates private property rights and the intent of the power under the Fifth Amendment. Until the government removes itself from New Jersey’s real estate market, cases like the one in Middletown will likely continue.

Read Christian’s piece for more. 

AAHMT Property, LLC v. Twp of Middletown, No. A-0844-24 (N.J. App. Div. June 27, 2025)