Major flooding is occurring along the Passaic River in Pine Brook and Little Falls and along the Pompton River at Pompton Plains Friday.
The Delaware River remains high, but is cresting.
Heavy bands of rain associated with Lee caused flash flooding on Thursday as people cleaned up from flooding caused by Hurricane Irene.
Portions of Route 29 in Mercer County are closed.
State Police say a mudslide washed two homes on Lewis Lane in Liberty Township in Warren County off their foundations Thursday. No one was injured.
Sgt. Ken Salazar told The Star-Ledger of Newark three other homes were in danger.