Township of Eagleswood, NJ Article XIII Affordable Housing (COAH)

[Added 4-25-2005 by Ord. No. 2005-4]

§ 285-58 Legislative intent.

The legislative intent set forth in the above preambles and recitals are hereby adopted and incorporated by reference herein as if set forth herein at length.[1]

[1] Editor's Note: Reference is to the preambles and recitals to Ord. No. 2005-04.

§ 285-59 Provision of affordable housing pursuant to Cycle Three growth share regulations.

A. Quantification of affordable housing obligation for residential developers. Except as otherwise provided below, in those circumstances where an applicant seeks to develop land for residential purposes and receives no right to increased density or other compensatory bonus, said applicant shall produce and develop on site one residential unit of housing affordable to low- and moderate-income households for every eight market-rate residential units constructed (11.11%). In the event 11.11% of the total units should result in a fraction equaling 1/2% or greater, the affordable housing obligation shall be rounded to the next higher number. Affordable housing shall be as defined under the FHA and COAH's regulations. Nothing herein shall relieve applicants seeking to develop projects of eight or fewer units from the requirements of the Township's Mount Laurel Development Fee Ordinance in its current form or any future form.

B. Permissible manner of satisfaction of affordable housing obligation of residential developers.

(1) For all residential development, an applicant shall satisfy its affordable housing production obligation through on-site housing production in connection with the residential project, which is one of the mechanisms permitted pursuant to COAH's regulations.

(2) Alternative mechanisms.

(a) The other alternative mechanisms permitted under COAH's regulations include:

[1] The purchase of an existing market-rate home at another location in the community and its conversion to an affordable price-restricted home in accordance with COAH's criteria, regulations and policies;

[2] The funding of a Regional Contribution Agreement ("RCA");

[3] Participation in reconstruction and/or buy-down/write-down, buy-down/rent-down programs; and/or

[4] Contributing to the Housing Trust Fund at a rate of 1% of the equalized assessed value of the new construction of residential development.

(b) An applicant shall only be entitled to satisfy its affordable housing obligation via one or more of the alternative mechanisms set forth above if the applicant demonstrates to the Land Use Board that the requirement to construct one affordable residential unit for every eight market-rate residential units on site constitutes a taking of the applicant's property without just compensation pursuant to the applicable legal standards.

(3) Before the applicant's development application for final site plan or subdivision approval is deemed complete, consistent with the Municipal Land Use Law and the Township of Eagleswood Land Use Board ordinances, the applicant must secure written permission from the Township of Eagleswood Land Use Board as to the exact manner in which alternative mechanism(s) will be used to achieve the creation of one affordable residential unit for every eight market-rate residential units.

(4) Full and complete satisfaction of compliance with the affordable housing requirements of the development shall be a specific, automatic, essential and nonseverable condition of all land use approvals. Pursuant to this condition, the applicant must demonstrate that it has satisfied the Land Use Board's affordable housing condition of approval prior to obtaining the first building permit, and compliance with the affordable housing condition shall be a continuing condition of all Land Use Board approvals for development.

C. Quantification of affordable housing obligation for nonresidential developers. Except as otherwise provided below, in those circumstances where an applicant seeks to develop land for nonresidential purposes and receives no right to an increased floor area ratio, or other compensatory bonus, the developer shall provide one non-age-restricted affordable residential unit for every 25 jobs projected to be created by its development. The calculation of the number of jobs and employment opportunities shall be in accordance with Appendix E to N.J.A.C. 5:94-1 et seq., entitled "UCC Use Groups for Projecting and Implementing Nonresidential Components of Growth Share."

D. Permissible manner of satisfaction of affordable housing obligation of nonresidential developers.

(1) For all nonresidential development, the applicant may satisfy its affordable housing production obligation through the various mechanisms COAH regulations authorize, including:

(a) On-site housing production in connection with a residential component of the project;

(b) The purchase of an existing market-rate home at another location in the community and its conversion to an affordable price-restricted home in accordance with COAH's criteria, regulations and policies;

(c) The funding of a Regional Contribution Agreement ("RCA");

(d) Participation in reconstruction and/or buy-down/write-down, buy-down/rent-down programs; and/or

(e) Contributing to the Housing Trust Fund at a rate of 2% of equalized assessed value of the new construction for commercial development.

(2) The applicant shall present its planned method of compliance to the Land Use Board at the time of application filing, and the Board shall, in its sole discretion, advise the applicant whether the proposed method of compliance is acceptable, or whether an alternative technique or combination of techniques permitted by COAH regulations would be acceptable.

(3) Full and complete satisfaction of compliance with the affordable housing requirements of the development shall be a specific, automatic, essential and nonseverable condition of all approvals. Pursuant to this condition, the applicant must demonstrate that it has satisfied the Land Use Board's affordable housing condition of approval prior to obtaining the first building permit, and compliance with the affordable housing condition shall be a continuing condition of all approvals for development.

E. Permissible manner of satisfaction of affordable housing obligation of mixed-use developers. For all projects which include a combination of both residential and nonresidential development, the affordable housing obligation created by the residential portion of the project is set forth in Subsection A above. The permissible manner of satisfaction of the affordable housing obligation for the residential component is set forth in Subsection B above. The affordable housing obligation created by the nonresidential portion of the project is set forth in Subsection C above. The permissible manner of satisfaction of the affordable housing obligation for the residential component is set forth in Subsection D above.

F. Compliance with COAH's rules. The affordable unit(s) to be produced pursuant to Subsections A, B, C, D and E (above) shall be available to a low-income individual or household should only one affordable unit be required. Thereafter, each of the affordable units shall be divided evenly between low- and moderate-income individuals and households except in the event of the applicable formulas resulting in an odd number of affordable units; in which event the unit shall be a low-income residential unit. All affordable units shall strictly comply with COAH's regulations and policies, including, but not limited to, pricing, phasing, bedroom distribution, controls on affordability, range of affordability, affirmative marketing and income qualification. It shall be the applicant's responsibility, at its sole cost and expense, to arrange for a COAH and Township-approved qualification service to ensure full COAH compliance and to file such certifications, reports and/or monitoring forms as may be required by COAH or the Court to verify COAH compliance of each affordable unit.

G. Exemptions.

(1) Development fees may be collected when an existing structure is expanded or undergoes a more intense use. The development fee that may be collected shall be calculated on the increase in the equalized assessed value of the improved structure.

(2) The Township shall not reduce densities from preexisting levels and then require developers to pay development fees in exchange for an increased density.

(3) Developments that have received preliminary or final approval prior to the imposition of a development fee shall be exempt from development fees unless the developer seeks a substantial change in the approval; for example, a substantial alteration in site layout, development density or types of uses within the development.

(4) Developers that convert any portion of an existing residential structure to a nonresidential use shall pay a development fee. The development fee shall be based on the increase in the equalized assessed value of the converted structure.

(5) The Township exempts the following types of development from the imposition of development fees:

(a) Nonprofit organizations which have received tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code, providing current evidence of that status is submitted to the Municipal Clerk, together with a certification that services of the organization are provided at reduced rates to those who establish an inability to pay existing charges.

(b) Federal, state, county and local governments.

(c) Public utilities under the jurisdiction of the New Jersey Board of Public Utilities to the extent that the construction for which approval is sought is of a facility which shall house equipment only and not to be occupied by any employees.

(d) Developers of low- and moderate-income housing units, provided that the required minimum percentage of residential units in the development are affordable units in accordance with applicable COAH regulations establishing minimum set-asides for low- and moderate-income sales and rental housing. Where affordable housing units are required to be constructed and where the developer has been authorized to pay a development fee in lieu of building the affordable housing units, developers shall pay a fee equal to the cost of subsidizing the affordable housing units that are not built.

(e) Public uses.

(f) Public education, cultural and outdoor recreation facilities.

H. Right to greater set-aside if compensatory benefit. As to residential developers, nothing herein shall affect the municipality's ability to generate more affordable housing than the one-for-eight standard set forth above in the event that the developer secures a density bonus or other compensatory benefit through zoning or through a use variance. As to nonresidential developers, nothing herein shall affect the Township's ability to generate more affordable housing than the one affordable residential unit for every 25 jobs standard set forth above in the event that the developer secures an increased FAR or other compensatory benefit through zoning or through a use variance.