New Jersey's top court is considering whether Gov. Chris Christie was within his rights in 2011 to abolish the agency that oversees deals with affordable housing in the state.
The Supreme Court is holding a hearing in the case Monday.
A lower court determined last year that Christie was overstepping his bounds, but the governor appealed.
The case is the latest in a four-decade-long line of litigation over state affordable housing policy. The court has ruled in the past that towns have an obligation to provide subsidized housing for low-income people.
Two years ago, Christie abolished the Council on Affordable Housing, which enforces the requirement.
The state Supreme Court is also considering a separate case on whether the agency's rules for towns are constitutional.