Tax exempt status for religious institutions exists because they do good for the community. I would rather 10 churches open up in my community then a welfare office.
The problem with these communities is that they failed to zone enough industrial/commercial properties, rely heavily on residential zones and the local government spends money like a drunken sailor. Never mind the fact that NJ has the worse school funding formula on the planet.
None of that is the fault of the Jews or any religion.
Apparently the locals failed to see the “good for the community” here - just as they apparently fail to see it in central NJ and Rockland County NY. The “good for the community” disappeared as the government absorbed the charitable and education functions of many religious groups; that is why the Catholic Church is going extinct in the same areas. The residents in that part of Jersey City in particular may see this as a competing welfare office - one which will expel them from the neighborhood.