The three-alarm blaze broke on the second floor of a home in the middle of a row of squat houses on Lafayette Street out around 3 a.m.
In less than 15 minutes, the flames quickly had spread to each of the two neighboring homes, as well.
Police Sgt. Ryan Duffy and Officer Juan Capella got 10 people – one of whom is handicapped – out of one of the homes and into the rear yard, where the fire had them boxed in, Public Safety Director Jerry Speziale said.
Firefighters quickly cut through a fence and got the residents and officers out safely without injury, the director said.
Seven other residents in the other homes all got out OK, as well, he said.
Firefighters had the blaze in the main building knocked down by 3:45 a.m. The main body in all three was doused within a half hour.
The fire was declared under control shortly before 5 a.m.
The Red Cross provided food, shelter and clothing for the 17 displaced residents, Speziale said.
Meanwhile, the city fire marshal was working with members of the Passaic County prosecutor’s arson unit to determine the cause, he said.
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