Indeed, when Hovnanian, the state's largest residentialdeveloper, began building the first phase of Society Hill more thana decade ago, the luxury gated community set a new standard forresidential development in New Jersey's second largest city. Italso set the tone for much of what was to follow along the HudsonRiver on the other side of town.

Because of the tight housing market in New Jersey, it couldn'tcome at a better time: The local planning has officially given thegreen light for phase three. But that approval has come only afterHovnanian had to adjust its plan, presented back in October, toanswer a variety of objections raised by the board of trustees forSociety Hill One, the first phase.

Those objections involved traffic, pedestrian safety andmaintenance questions resulting from the new section, according toRonald Shaljian, the attorney for Hovnanian. The terms andconditions of the agreement worked out between the homeownersassociation and the developer haven't been made public, but theywere apparently enough to satisfy the city planning board aswell.