Homeownership Can't Be Age-Restricted In Berkeley, Court Rules

BERKELEY, NJ — New Jersey towns cannot require homeowners in 55-and-older communities to actually be 55-and-older, a state appeals court ruled.

Berkeley Township, home to a plethora of senior communities, enacted an ordinance in 2022 that limited homeownership in senior communities to those aged 55-and-older. This is unlawful, according to the ruling on New Jersey Realtors v. Township of Berkeley.

The township adopted the ordinance to maintain status quo, but allowed bylaws of individual communities to sell to those under 55 if they so desire. Read more: Berkeley Council Votes To Support 55+ Communities

Three judges ruled that this violated the federal Fair Housing Act (FHA) and the state Law Against Discrimination (NJLAD).

Judge Greta Gooden Brown wrote in the 29-page decision that "we conclude that any age restriction imposed on ownership in PRRCs [Planned Residential Retirement Community]
is a discriminatory housing practice that violates the NJLAD on the basis of familial status."

Initially, the ordinance was adopted to prevent LLCs from buying up homes in senior communities, but some feared it would impact adult children buying homes for their parents or those parents leaving their homes to their children. The court agreed, saying the ordinance "unreasonably infringes upon the well-established and constitutionally protected right to own and sell property and the restriction unreasonably and irrationally exceeds the public need."

"As the judge pointed out, the restriction could impact to a significant degree the very seniors the Township seeks to protect by preventing owners over the age of fifty-five from transferring title to non-qualifying family members, a common practice in estate planning," Gooden Brown wrote. "Additionally, the Ordinance would adversely affect every owner's ability to sell by limiting the pool of eligible buyers."

Age restrictions can only be placed on occupancy, not ownership, the court ruled.