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West Orange Reaches Deal With Nursing Home Over Expansion Plans

The town's sizable affordable housing quota played a large part in the settlement with Daughters of Israel – here's why.

The West Orange Township Council approved a settlement agreement with Daughters of Israel at their meeting on Oct. 13, 2026. (Google Maps)

WEST ORANGE, NJ — A nonprofit nursing home's expansion plans in West Orange took a big leap forward at the latest town council meeting.

The council unanimously approved a settlement agreement with Daughters of Israel at their Oct. 13 meeting. The deal nixes a lawsuit that the town was facing and lays the groundwork for future development at 1155 Pleasant Valley Way.

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The current plan is to build a continuing care retirement community facility with a maximum building height of five floors and 347 parking spaces. There would be 311 total units, including 163 independent living units, 84 skilled nursing units and 64 assisted living units.

Seven of the assisted living units would qualify as "affordable housing" – a key component of the deal.

Several people spoke in favor of the expansion at last week's meeting, telling council members that the nonprofit nursing home is serving a crucial function in the community. Some shared personal stories about how the facility has impact the lives of their loved ones.

Meanwhile, some people argued that there are still too many missing details about the project, including information about building on steep slopes, property taxes and infrastructure impacts.

Responding to some of the concerns raised during public comment, township attorney Mark Semeraro said a future ordinance will be put forth with more zoning specifics. He said the town's tree and steep slope regulations will be complied with.

Semeraro said traffic impact and infrastructure demands would be higher if a for-profit developer were to build apartments at the site, which is a possibility if the property is sold.

"Based upon my legal knowledge and experience, it's my recommendation that we move forward," he told the council prior to their 5-0 vote.

Daughters of Israel has been trying to secure expansion rights at their campus for years.

According to the nonprofit, the "obsolete" facility urgently needs an update. If the town refuses to approve an expansion, the only choice is to shut down operations in West Orange, sell the property and build somewhere else.

Critics of the proposal have argued that the project would cause "massive tree destruction," increased traffic and high-rise construction that is "out of sync with residential neighborhood character."

The West Orange Zoning Board eventually voted 4-3 in favor of the plan in 2023 after holding nearly a dozen public hearings, but since it required a super-majority for approval, the application was denied.

Daughters of Israel took a different tact when it reintroduced the proposal, pointing to a state mandate to build more affordable housing in West Orange.

The township is on the hook for 409 "present need" units and 660 "prospective need" units over the next 10 years, according to the state's latest affordable housing quota. West Orange was late in approving its plan, leaving it vulnerable to legal action.

Earlier this year, Daughters of Israel filed a "builder's remedy" lawsuit against the township. The lawsuits allow developers to seek court approval to bypass local zoning laws and build higher-density residential projects – as long as they provide a certain number of affordable housing units.

Last week's settlement agreement puts the nursing home's lawsuit against the township to rest. However, the "builder's remedy suit" from Daughters of Israel isn't the only one that West Orange has been slapped with this year, including disputes over 481 Eagle Rock Avenue (Mayfair Farms), 762 Pleasant Valley Way, 155 Prospect Avenue (Kennedy Realty), and 103 Pleasant Valley Way (Valley Hill Properties). A sixth lawsuit involving 410 Main Street was settled in August.

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.

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