The alliance of community groups, the Newark Coalition for Low-Income Housing, charges that mismanagement and incompetence are behind the construction delays.

The Newark Coalition sued, and the authority was forced to reverse its course.

"This represents a victory," said Stephen Finn, executive director of the Newark Coalition for Low-Income Housing, which filed the lawsuit.

The Newark Coalition for Low Income Housing said that the Newark Housing Authority had, through "ineptitude," violated numerous construction and replacement schedules.

The group, the Newark Coalition for Low-Income Housing, was formed by tenant and community groups after the housing authority announced plans in 1987 to tear down virtually all of its 46 high rises.

The judge's ruling came in response to a motion filed by the Newark Coalition for Low Income Housing.

"Even with low-rise there are complaints about the construction and crime," said Richard Cammarieri, a board member of the Newark Coalition for Low Income Housing.

"We need a reality check on some of these things," said Mr. Cammarieri of the Newark Coalition for Neighborhoods.

Leaders of the Newark Coalition for Low Income Housing called today's settlement a guarantee that housing for poor people would be built.

Victor DeLuca, executive director of the Newark Coalition for Low-Income Housing, said, "The administrative shifts in the last six to eight months have definitely brought more police on the streets."