Newark Council Defers Affordable Housing Transfers Until Owners Commit to Repairs
Municipal Council • NewarkSeptember 23, 2026
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Newark's Municipal Council refused on Sept. 23, 2026, to sign off on transferring financial agreements covering 120 affordable apartments. Members said the sale is the city's best chance to secure repairs at troubled L&M-owned buildings. The pressure on housing ran through the whole meeting, from a federal default notice at the Newark Housing Authority to renter fee relief and a request for a state eviction moratorium.
- Two L&M property transfers deferred (82 and 38 units) until owners present repair plans
- HUD default notice puts Newark Housing Authority on the clock, with a reported Oct. 2 response deadline
- Environmental groups press for a one-year data center moratorium as more facilities are proposed
- Health director will reissue lead-inspection letters after residents felt pushed toward one contractor
- Renter brokerage-fee ordinance passes 9-0, and the council asks the state for an eviction moratorium
No Repairs, No Transfer: Council Stalls L&M Deals
The basics: Ordinances 6PSF-A (file 26-0893, 82 affordable rental units) and 6PSF-B (file 26-0904, 38 units) would assign existing financial agreements to new owners. In New Jersey, financial agreements typically govern long-term tax exemptions for a property. Properties discussed included Georgia King Village and Zion Towers, along with the Livingston and Somerset Urban Renewal entities.
Why it matters: Residents of Georgia King Village and Zion Towers have lived with deteriorating conditions. Members said council approval of the transfer is their leverage to force repairs before the properties change hands.
Where things stand: Councilmember Donna Jackson moved to defer both items before the hearing closed. "I'm asking for these items to be deferred because the information that we need, we do not have," said Jackson.
Members asked that the owners attend the next pre-meeting. They also asked that future transfers include a presentation and an obligation to bring properties up to code. Another member asked that any deal carry a confirmed, enforceable commitment to abate existing problems.
On the administration's side, staff noted that the ordinance could be amended to require abatement. That amendment would not happen if the item were deferred.
The other side: Public commenter George Tillman Jr. argued that the city holds leverage now and should use it. "I strongly disagree with them being able to profit and benefit from this agreement without having to do what they were supposed to do while they were still owners," said Tillman. He also said the city's affirmative action review council should have reviewed the deal.
Decisions and stakeholder impacts: The council deferred 6PSF-A with eight yes votes recorded (For: 8, Against: 0); one member's vote was not recorded. It then deferred 6PSF-B on Jackson's motion, seconded by Councilmember Dupré L. Kelly (For: 9, Against: 0, Absent: 0).
Tenants gain time and a public forum. L&M and any buyer now face a council demanding repair commitments in writing. The delay also preserves the city's ability to attach conditions.
What's next: The owners are expected to present at the next pre-meeting before either ordinance returns.
Housing Authority Default: Dueling Explanations
Why it matters: A federal takeover could affect roughly 7,000 Newark Housing Authority (NHA) residents. The NHA is the city's largest affordable housing provider.
Where things stand: Public speakers said the U.S. Department of Housing and Urban Development (HUD) issued a substantial-default notice. They said the notice followed a move to remove the NHA's executive director and carries an Oct. 2 response deadline. Public commenter Alif Muhammad criticized the authority's leadership and the push to oust the director.
A councilmember who serves as an NHA commissioner disputed the basis for the notice. He said the default rests solely on missing a 91% occupancy target by fiscal 2024. According to him, the NHA now sits at 92% occupancy, has met 19 or more other corrective items, and is approaching a national rate of about 93%. He also questioned why the notice arrived alongside a contract non-renewal.
"I'm not going to glorify Housing Authority or HUD coming in to take over Newark Housing Authority," he said.
The other side: Public commenter Felicia Austin Singleton said she had warned for years about the authority, inclusionary zoning and Georgia King Village and was dismissed.
What's next: Speakers cited Oct. 2 as the NHA's deadline to respond to HUD. The council took no action.
Data Centers: Advocates Want the Clock Enforced
Why it matters: Newark already hosts six data centers, with three more proposed. Advocates point to asthma rates and pollution risk in an environmental justice community.
Where things stand: An organized slate of environmental speakers backed File 26-1273, a one-year data center moratorium sponsored by Councilmember Patrick O. Council. The Central Planning Board is reviewing the ordinance's data center definition before it can return to the council for a vote.
Dr. Leah Owens of the South Ward Environmental Alliance urged the council to make sure the board finishes its review within the required 35 days. Alejandra Torres, Assistant Director of Advocacy and Organizing at Ironbound Community Corporation, cited water, air quality and asthma risks.
"It's imperative that the City Council, the Central Planning Board and the Environmental Commission be proactive," said Torres.
Speakers pointed to an Equinix diesel spill in Secaucus and a $1M fine in Vineland as cautionary examples.
Fossil fuel ordinance in limbo: Advocates also asked when the Title 41 fossil fuel amendment, known as the Newark Fossil Free Future Ordinance, will be heard. It has been at the planning board since February. Councilmember-at-Large C. Lawrence Crump requested a status update. "I sponsored that legislation to go down to the planning board," said Crump.
Decisions and stakeholder impacts: Councilmember Jackson promised stronger legislation. Council President Luis A. Quintana directed the clerk to notify the planning board. Residents near existing and proposed sites, along with utilities and developers, have a direct stake in the timing.
What's next: A town hall is set for Oct. 6 at 6 p.m. at 1067 Bergen Street.
Lead Letters Get a Rewrite
Why it matters: State law requires rental dwellings built before 1978 to be inspected every three years. Residents, including seniors, said city letters read as if they had to hire one firm, and some paid immediately.
Where things stand: Public commenter Rodney Davis and council members raised the letters naming LEW Environmental. Councilmember-at-Large Louise Scott-Rountree told residents directly: "You don't have to use this company."
Health Director Ketlin Alsbrook said the contractor was engaged to speed inspections but is not exclusive. She said more than 100 evaluators certified by the state Department of Community Affairs (DCA) are available. She described exemptions, a 60-day notice to comply, and grants for homeowners at or below 80% of area median income.
"There is a penalty that can be issued through the department of up to $1,000 a week until they come into compliance," said Alsbrook.
Decisions and stakeholder impacts: Alsbrook agreed to reissue the letters to state that homeowners may use any DCA-certified evaluator. She also promised a general presentation and put the contractor on notice. "If I find that this firm was disrespectful to our residents, I will terminate that relationship immediately," she said.
Separately, the council adopted six temporary emergency health appropriations, covering WIC, lead, STD testing, dental, code red and immunization programs (For: 9, Against: 0, Absent: 0). One member appeared to abstain on item E, but that abstention was not confirmed.
Renters Get Fee Relief and a State Ask
Where things stand: The council approved an ordinance eliminating certain brokerage fees for renters on a 9-0 roll call taken at the close of the hearing. The ordinance will be administered through the Rent Control Office, whose registry now covers one- to four-unit buildings.
"I'm glad that we're moving forward with this brokerage, eliminating that fee because it's a very big barrier for renters," said Jackson.
The deputy mayor said letters will go out through the Rent Control Office, and Quintana suggested adding information to tax bills. Public commenter Nadira Brown supported the measure but asked that "certain brokerage costs" be defined. She also urged the city to engage realtors and Senator Burgess's state effort.
Eviction moratorium request: Jackson moved to ask the state legislative office to craft a one-year eviction moratorium, citing "a record number of evictions in Essex County, over 350 a day." The motion also seeks budget answers within a week and briefings from court administrators. It passed with Bey and Ramos absent (For: 7, Against: 0, Absent: 2).
Other member requests: The council also approved requests for an update on the JFK Pool roof, a status report on blighted 97-99 Camden Street with possible demolition if city-owned, and East Ward sinkhole repairs. "I had one street sweeper in the East Ward today," said Councilmember Michael J. Silva.
Minor Items
- Animal shelter contract amended to $2,691,835 and adopted (For: 9, Against: 0, Absent: 0).
- Police firearms range lease assigned to a new property owner on unchanged terms, approved 9-0 despite resident complaints about unexplained ordinance language.
- Historic sites ordinance (6FA) passed first reading 9-0, replacing the federal registration form with a Newark-specific application; a hearing is set for Oct. 7 or soon thereafter.
- Property sales: Item M passed with Crump abstaining and Item N passed with Council abstaining (each For: 8, Abstain: 1); members asked that future packages be split by ward.
- Added housing resolutions supporting a 100% affordable East Ward building and state financing programs passed 9-0.
Looking Ahead
After repeated outbursts, Quintana said speakers who shout or follow officials to the podium will be removed by police. "We cannot allow this continuing," said Quintana. He plans to meet with the clerk, corporation counsel and business administrator on updated conduct rules.