Paramus Mayor Chris DiPiazza is pushing back hard against a New Jersey Senate bill that would let struggling malls and office parks be converted into housing without going through the borough's usual zoning process. The bill's sponsor, meanwhile, says the legislation is a necessary tool to chip away at the state's housing crunch without stripping towns of their voice.
Mayor Questions Trenton's Grip on Local Zoning
DiPiazza criticized Senate Bill 1766, which would allow qualifying underused shopping centers and office parks statewide to be redeveloped into mixed-use housing, according to News 12 New Jersey. He wrote that he questioned state Senator Troy Singleton's authority over local zoning decisions, arguing that local officials know their town best regardless of political party. DiPiazza also argued that zoning helps preserve individual community identities, and he questioned whether Singleton truly knew Paramus's neighborhoods, malls, traffic patterns and classrooms.
Singleton, a Burlington County Democrat who co-sponsored the bill, defended it as a way to address New Jersey's housing shortage. He said the legislation could revitalize struggling commercial properties and expand housing opportunities, and argued that local control and tackling the state's housing shortage can both be respected without outdated land-use restrictions blocking responsible redevelopment, per the same News 12 report.
What Senate Bill 1766 Would Actually Do
The bill, sponsored by Senator Singleton of the 7th District and Senator Benjie E. Wimberly of the 35th District, would authorize conversion of certain vacant or underutilized office parks and retail centers into mixed-use developments that include housing, according to the bill text filed with the New Jersey Legislature. Eligible properties would include office parks of at least 50,000 square feet or retail centers that contain, or once contained, a single retail unit of at least 15,000 square feet.
To qualify, a property would need either a vacancy rate of at least 25 percent sustained for at least 18 continuous months, or proof of a qualifying economic downturn over the preceding three years. Owners would also have to show a continuous, good-faith effort to address the vacancy, rent out space or market the property during that 18-month window, the bill text states. At least 20 percent of the residential units in any qualifying project would have to be reserved for very-low-, low- or moderate-income housing, and the development would need to include at least two types of uses — one of them residential — with no industrial use permitted.
Permitted Use, But Not a Zoning Free-For-All
The most consequential piece for mayors like DiPiazza is that a compliant mixed-use development would be classified as a permitted use and would not require a use variance — the discretionary local approval that typically gives town boards leverage over whether and how a project gets built. Still, the bill's text specifies that projects would have to comply with the Municipal Land Use Law and other applicable municipal zoning requirements that don't directly conflict with the statute. Municipal planning boards would retain oversight of the site-plan approval process, according to a notice from the New Jersey Legislative Senate Democrats.
Lawmakers have framed the measure as part of a broader push. The Senate committee presented the zoning reform package as a way to increase housing inventory, remove barriers to development and create more affordable housing opportunities across the state, the Senate Democrats' office said in a separate statement. The same office noted that national office vacancy rates recently reached record highs, with older suburban office parks and retail centers facing long-term vacancies and declining demand.
The Scale of New Jersey's Housing Gap
Just how big that gap is depends on who's counting. One account from traded.co put the statewide housing shortage at more than 200,000 units, while a state government statement cited a separate finding that New Jersey must build 350,000 additional homes to keep pace with growth, improve affordability and stay competitive. The two figures haven't been reconciled, and the bill's backers have cited the broader shortage, without specifying which estimate, as a driving rationale for the legislation.
Supporters argue that converting struggling commercial properties into housing takes advantage of existing infrastructure already in place — roads, utilities, parking — potentially adding homes without expanding suburban sprawl, per the traded.co report. The bill's own findings describe many large retail centers and office parks as declining, dated or vacant due to shifting economic conditions, changing consumer preferences and competition from alternative retail and business formats, and it specifically names outdated, rigid municipal zoning regulations as a significant impediment to turning those stranded properties into functioning mixed-use communities.
Other NJ Sites Already Eyeing Similar Conversions
Paramus wouldn't be breaking new ground if a project like this eventually moved forward locally — similar redevelopment efforts are already underway or under discussion elsewhere in the state. In Eatontown, the Monmouth Square redevelopment plans call for roughly 1,000 apartments alongside restaurants, event space, walking paths and redesigned retail offerings, according to traded.co. Brunswick Square Mall and Livingston Mall have likewise been floated as potential candidates for future redevelopment, the same outlet reported.
No specific Paramus property has been identified as a candidate under the bill's criteria, and there's no confirmed redevelopment proposal pending in the borough. Under the bill's effective-date provisions, the conversion provisions for eligible properties would kick in on the first day of the seventh month after enactment, while the law's general effective date would fall on the first day of the 13th month after enactment, per the bill text. Whether S1766 ultimately clears the full Legislature and reaches the governor's desk remains to be seen.
