Chatham Borough's Planning Board has unanimously approved a 29-unit apartment building for South Passaic Avenue, closing out a yearlong fight over how much housing could rise on a stretch of downtown. The three-story development will include four income-restricted units: one for a very-low-income household, one for a low-income household and two moderate-income units.
The project, spanning addresses at 17, 23 and 33 South Passaic Avenue, comes after developer Vertical Realty filed a court challenge against the borough in August 2025, after officials initially left a larger 43-unit proposal with six affordable units out of Chatham's Fourth Round Fair Share Housing plan, according to Hometown Chatham. Borough officials had raised concerns at the time about building height and impacts on off-site sidewalks. The dispute was resolved when Chatham crafted a new B-4 (AH) affordable housing overlay district specifically for the South Passaic Avenue corridor, capping density at 29 residential units plus one superintendent unit and limiting height to three stories and 42 feet.
As reported by New Jersey Hills, the approved development will include one affordable two-bedroom apartment for a low-income household, one affordable one-bedroom apartment for a very-low-income household, and two moderate-income units — a two-bedroom and a three-bedroom.
Traffic and Parking Changes on the Corridor
Building parking will move into a ground-floor garage, according to the same New Jersey Hills report. The property's parking arrangement was part of the project review.
Traffic and parking were part of the review of the 29-apartment development.
The project also includes site improvements.
Design Debate Over Metal Roof Accents
The building's exterior appearance was discussed during the review process.
The project's design was part of the Planning Board's review.
Connected to Affordable-Housing Requirements
The South Passaic Avenue approval is connected to Chatham's affordable-housing requirements, according to Chatham Borough.
The Planning Board also formalized approval for a 100-unit River Road rental project, according to Summit Area News.
The site sits along South Passaic Avenue. How the new garage will affect the area remains a consideration for its future.
