[Added 6-29-2020 by Ord.
No. 2020-15]
(a)
This article sets forth regulations regarding the very-low-,
low-, and moderate-income housing units in the Municipality consistent
with the provisions known as the "Substantive Rules of the New Jersey
Council on Affordable Housing", N.J.A.C. 5:93 et seq., the Uniform
Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq.,
except where modified by the requirements for very low-income housing
as established in P.L. 2008, c. 46 (the "Roberts Bill," codified at
N.J.S.A. 52:27D-329.1) as reflected in the terms of a Settlement Agreement
between the Municipality and Fair Share Housing Center ("FSHC") such
that the statutory requirement to provide very low-income units equal
to 13% of affordable units approved and constructed after July 17,
2008, to be affordable households at 30% of the regional median income,
overrides the UHAC requirement that 10% of all low- and moderate-income
units must be affordable at 35% of the regional median income, and
the Municipality's constitutional obligation to provide a fair share
of affordable housing for very-low-, low-, and moderate-income households.
(b)
This article is intended to assure that very-low-, low- and
moderate-income units ("affordable units") are created with controls
on affordability over time and that very-low-, low- and moderate-income
households shall occupy these units. This article shall apply to all
inclusionary developments and 100% affordable developments (including
those funded with low-income housing tax credit financing) except
where inconsistent with applicable law.
(c)
This article implements and incorporates the Fair Share Plan
and addresses the requirements of N.J.A.C. 5:93, as may be amended
and supplemented.
(d)
The Municipal Council, to implement the goals and objectives
of the Princeton Community Master Plan, has determined that an affordable
housing program shall be established in the municipality in order
to:
(1)
Provide housing opportunities for very-low-, low-, and moderate-income
families in order to meet the existing and anticipated housing needs
of such persons, maintain a socio-economic mix in the community, provide
a range of housing types dispersed throughout the community in a suitable
living environment, and satisfy the community's obligation to provide
a fair share of the region's housing needs;
(2)
Assure that the very-low-, low-, and moderate-income units constructed
under this program continue to remain available to very-low-, low-,
and moderate-income households through controls on rental and resale
prices to be exercised by the Affordable Housing Board under the guidance
of the Municipality's housing manager;
(3)
Provide for housing opportunities for those who work in Princeton
and provide the community with essential services, but who cannot
currently afford to live in the community; and
(4)
Provide that developments that create affordable housing demand
within Princeton share in the burden of providing such affordable
housing, including commercial and institutional developments.
[Added 6-29-2020 by Ord.
No. 2020-15]
The Municipality shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Court-approved Housing Plan Element and Fair Share Plan:
(a)
Beginning on the first anniversary of the final Judgment of
Repose and on every anniversary of that date thereafter through July
1, 2025, the Municipality agrees to provide annual reporting of its
Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs ("NJDCA"), Council on Affordable Housing ("COAH"),
or Local Government Services ("NJLGS"), or other entity designated
by the State of New Jersey, with a copy provided to FSHC and posted
on the municipal website, using forms developed for this purpose by
the NJDCA, COAH, or NJLGS. The reporting shall include an accounting
of all Affordable Housing Trust Fund activity, including the source
and amount of funds collected and the amount and purpose for which
any funds have been expended.
(b)
Beginning on the first anniversary of the final Judgment of
Repose and on every anniversary thereafter of that date through July
1, 2025, the Municipality agrees to provide annual reporting of the
status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to FSHC, using forms previously developed for this purpose
by COAH or any other forms endorsed by the Special Master and FSHC.
(c)
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313,
the Municipality will post on its municipal website, with a copy provided
to FSHC, a status report as to its implementation of its Plan and
an analysis of whether any unbuilt sites or unfulfilled mechanisms
continue to present a realistic opportunity and whether any mechanisms
to meet unmet need should be revised or supplemented.
(d)
By May 22, 2021, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the Municipality will post on its municipal
website, with a copy provided to FSHC, a status report as to its satisfaction
of its very low income requirements, including its family very-low-income
requirements.
[Added 6-29-2020 by Ord.
No. 2020-15]
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity designated by the Municipality to administer affordable
units in accordance with this article, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26.1).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
Very-low-, low- and moderate-income housing as defined by
the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1 et
seq. (Ord. No 2018-11 § 2), with one exception to UHAC,
pursuant to the 2008 amendments to the Fair Housing Act, P.L. 2008,
c. 46 (codified as N.J.S.A. 52:27D-329.1), municipalities must provide
very-low-income units equal to 13% of all affordable units approved
and constructed after July 17, 2008 at 30% of the regional median
income instead of the UHAC standard of 10% at 35% of the regional
median income.
A development included in or approved pursuant to the Housing
Plan Element and Fair Share Plan or otherwise intended to address
the Municipality's fair share obligation, and includes, but is not
limited to, an inclusionary development, a municipal construction
project or a 100% affordable housing development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development wherein the unit is situated
are 62 years of age or older; or
At least 80% of the units are occupied by one person who is
55 years of age or older; or
The development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
A building in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A household that has been certified by an Administrative
Agent as a very-low-, low-income household or moderate-income household.
The New Jersey Council on Affordable Housing, as established
by the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.) which
has primary jurisdiction for the administration of housing obligations
in accordance with sound regional planning consideration in the State.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load bearing structural systems.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.8.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with sections 1,
5, and 6 of P.L.1973, c. 123 (C. 54:1-35a through C. 54:1-35c).
See Non-exempt sales.
The unrestricted price of a low- or moderate-income housing
unit if sold at a current real estate market rate.
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A development containing both affordable units and market
rate units. This term includes, but is not limited to: new construction,
the conversion of a non-residential building to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential building.
Either: (a) an increase in residential density, i.e., the
number of dwelling units per acre, (b) an increase in floor area ratio
(FAR) for nonresidential development, or (c) conversion of an existing
structure that uses the structure more intensely, and which results
in an increase in the equalized assessed value of the improved structure,
as demonstrated by, but not limited to: (1) an increase in employees,
(2) an increase in customers, (3) an increase in visitors, (4) an
increase in parking spaces, (5) an increase in hours of operation,
or (6) a change of existing nonhabitable space to habitable space.
A judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load bearing structural
systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by the Municipality pursuant to this ordinance,
by COAH or a successor entity approved by the Court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between spouses; the transfer of ownership between former
spouses ordered as a result of a judicial decree of divorce or judicial
separation, but not including sales to third parties; the transfer
of ownership between family members as a result of inheritance; the
transfer of ownership through an executor's deed to a class A beneficiary
and the transfer of ownership by court order.
The difference between the controlled unit sales price and
the fair market value as determined at the date of the proposed contract
of sale, after reasonable real estate broker fees have been paid.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted Regional Income Limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
The obligation of a seller exercising a repayment option
to pay 95% of the price differential to a municipality at closing
for use in the municipal housing plan.
The option of a seller of a low- or moderate-income unit
to sell a unit pursuant to N.J.A.C. 5:92-12.7 at fair market value
subject to compliance with the terms of a repayment clause.
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
The percentage of housing units devoted to low- and moderate-income
households within an inclusionary development.
[Ord. No. 90-33, § 1; Ord. No. 91-32, § 1]
A plan approved by the governing body of the Municipality
as part of its housing element and fair share plan pursuant to N.J.A.C.
5:93-8.2, and approved by COAH or the Court.
Nonprofit housing owned and operated by an accredited academic
institution for full-time undergraduate and graduate students who
are currently registered and enrolled in a degree-granting program
at the same academic institution located within the Municipality of
Princeton.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1, et seq.
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for purposes of a rehabilitation
program.
[Added 6-29-2020 by Ord.
No. 2020-15]
(a)
The provisions of this article shall apply to all affordable
housing developments and affordable housing units that currently exist
and that are proposed to be created within the Municipality of Princeton
pursuant to Princeton's most recently adopted Housing Plan Element
and Fair Share Plan.
(b)
Moreover, this article shall apply to all developments that
contain very-low-, low-and moderate-income housing units, including
any currently unanticipated future developments that will provide
very-low-, low- and moderate-income housing units.
(c)
Projects receiving Federal Low Income Housing Tax Credit financing
shall comply with the income and bedroom distribution requirements
of UHAC at N.J.A.C. 5:80-26.3 (with the exception that the UHAC requirement
for 10% of the affordable units in rental projects being required
to be at 35% of median income be modified as required by the statutory
requirement, N.J.S.A. 52:27D-329.1 to 13% of affordable units in such
projects shall be required to be at 30% of median income) and the
length of the affordability controls applicable to such projects shall
be not less than a thirty-year compliance period plus a fifteen-year
extended use period.
[Added 6-29-2020 by Ord.
No. 2020-15; amended 12-21-2021 by Ord. No. 2021-34]
(a)
Purpose. The purpose of this mandatory affordable housing set-aside
ordinance is two-fold:
(1)
One, ensure that multi-family residential development or combined
multi-family residential/non-residential development, providing a
minimum of five new housing units at a density of six or more units
per acre that results from a rezoning, variance, redevelopment plan,
rehabilitation plan, or other zoning or land use incentive produces
affordable housing at an appropriate set-aside rate of 20%, consistent
with applicable law; and
(2)
Two, ensure consistent with the New Jersey Supreme Court's directives
in Mount Laurel II, that opportunities for affordable housing are
captured as land becomes available for development and redevelopment
(including as a result of private acquisition or assembly of a tract,
fires and the resulting demolition of structures, and redevelopment,
either public or private) within the boundaries of the former Borough,
which has an unmet need obligation, see S. Burlington Cty. NAACP v.
Mount Laurel, 92 N.J. 158, 248 n.21 (1983) (Mount Laurel II) and the
Consent Order for Final Judgment and Judgment of Repose entered October
10, 1990, in Witherspoon Jackson Development Corporation v. Borough
of Princeton et al., Docket No. L-37675-84.
(b)
Applicability of Mandatory Affordable Housing Set-Aside. This
mandatory affordable housing set-aside ordinance shall apply as follows:
(1)
A minimum affordable housing set-aside of 20% shall be required
to be included within a development, except as noted herein, throughout
the entirety of the municipality when a multi-family residential,
or combined multi-family residential/non-residential development,
providing a minimum of five new housing units at a density of six
or more units per acre, is created through:
(2)
Within the lands of the former Borough, any residential development,
except as noted herein, providing a minimum of five new housing units
at a density of six or more units per acre that requires site plan
or subdivision approval shall provide a minimum affordable housing
set-aside of 20%, to be included within the development.
a.
A developer subject to this mandatory affordable housing set-aside
ordinance may request, and the approving authority at its discretion
may grant, additional incentives for the production of affordable
housing, including but not limited to increased density, an increase
in the maximum permitted number of dwelling units within a building,
and/or a reduction in the off-street parking spaces otherwise required.
(c)
Exemptions. This mandatory affordable housing set-aside ordinance
shall not apply to the following:
(2)
Sites already zoned for inclusionary residential development
with an affordable housing set-aside or for which an inclusionary
residential redevelopment plan has been adopted consistent with the
Municipality's Court-approved Housing Plan Element and Fair Share
Plan, adopted in accordance with the settlement agreement with Fair
Share Housing Center, which sites shall comply with the applicable
adopted zoning.
(d)
Other Terms Applicable. The following terms shall apply to Princeton's
mandatory affordable housing set-aside ordinance:
(1)
All subdivision and site plan approvals of qualifying developments
identified in § T10B-336.2.a and § T10B-336.2.b
shall be conditioned upon compliance with the provisions of this mandatory
affordable housing set-aside ordinance.
(e)
No subdivision shall be permitted or approved for the purpose
of avoiding compliance with this requirement. A developer may not,
for example, subdivide a project into two lots and then plan each
of them to produce a number of units just below the threshold.
(f)
In the event the number of affordable housing units to be provided
includes a fraction, the number shall be rounded up if the fractional
amount is 0.5 or greater and rounded down if the fractional amount
is less than 0.5. The developer shall provide a payment in lieu of
constructing affordable units for the fraction of a unit less than
0.5.
(h)
This requirement shall not give any developer the right to any
such rezoning, variance, redevelopment designation or redevelopment
or rehabilitation plan approval, or any other such relief, or establish
any obligation on the part of the Municipality to grant such rezoning,
variance, redevelopment designation, redevelopment or rehabilitation
plan approval, or other such or further relief.
(i)
No developer may make a payment in lieu of constructing affordable
units on site, except for fractional units as noted in Paragraph (f)
above.
(j)
Affordable housing developed in accordance with this section
of the ordinance within the boundaries of the former Borough of Princeton
shall be credited to the unmet need obligation of the former Borough.
(k)
Affordable housing developed in accordance with this section
of the ordinance within the boundaries of the former Township of Princeton
shall be credited to the consolidated Municipality's prospective need
for future affordable housing obligations in accordance with then-applicable
law.
[Added 6-29-2020 by Ord.
No. 2020-15]
Notwithstanding the provisions of any other ordinance to the
contrary, the provisions of this article shall apply to developments
containing affordable housing units.
