Towns can’t restrict who buys houses in 55+ neighborhoods, N.J. court rules

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Towns can’t restrict who buys houses in 55+ neighborhoods, N.J. court rules
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The first-of-its kind ruling won't impact who can live in retirement communities, but it could change who can purchase properties.

, the trade association group that filed a lawsuit against Berkeley Township. But, the ruling made last month does prevent communities from restricting what age people must be to own homes in 55+ communities.Both state and federal law include a “housing for older persons” exemption to discrimination that allows age-restricted communities to set aside 80% of units for residents who have at least one person living in the residence who is 55 or older.

Christopher Dasti, an attorney for Berkeley Township, which passed the age-restricted property ownership ordinance, did not respond to a request for comment.The new ordinance restricted property ownership within residential retirement communities to people who are 55 years and older. The prior ordinance only restricted property occupancy of age-restricted units within those communities to individuals who are 55 years and older.

The group also argued the ordinance would prevent older owners from transferring their property titles to a family member younger than 55 for estate planning purposes. The ordinance also harmed property owners by “artificially suppressing” the pool of eligible buyers, the Realtors said. The “wariness of ownership restrictions” also stems from the 14th Amendment in the U.S. Constitution, part of which concerns property rights, the court said.

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