Mucicipalities may create and enforce laws for public safety. I witnessed a municipality shut down a minyan in someones basement because it violated a number of the codes for public meeting place. It didnt matter that it was held in a private home. The person tried to fight the municipality, and lost. The judge told him that to house services temporarily, that is one thing, but to establish a permanent place of prayer they needed a permit as a public meeting place (to get the permit, the basement would have to meet the code). to his credit, the homeowner did what was necessary to bring his basement up to code. No, this was not in Jackson, or Mahwah, it was in Sullivan County NY.
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