[Amended 3-9-2026 by Ord. No. 2026-15]
(a) 
This section of the Code sets forth regulations regarding the very-low-, low- and moderate-income housing units in the Municipality of Princeton consistent with the provisions outlined in P.L. 2024, Chapter 2, including the amended Fair Housing Act ("FHA") at N.J.S.A. 52:27D-301 et seq., as well as the Department of Community Affairs, Division of Local Planning Services ("LPS"), at N.J.A.C. 5:99 et seq., statutorily upheld existing regulations of the now-defunct Council on Affordable Housing ("COAH") at N.J.A.C. 5:93 and 5:97, the Uniform Housing Affordability Controls ("UHAC") at N.J.A.C. 5:80-26.1 et seq., and as reflected in the adopted municipal Fourth Round Housing Element and Fair Share Plan ("HEFSP").
(b) 
This article is intended to ensure 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 pursuant to statutory requirements. This article shall apply to all inclusionary developments, individual affordable units, and 100% affordable housing developments except where inconsistent with applicable law. Low-income housing tax credit financed developments shall adhere to the provisions set forth in subsection (e)(3) below.
(c) 
The Princeton Planning Board has adopted a HEFSP pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1 et seq. The fair share plan describes the ways the municipality shall address its fair share of very-low-, low- and moderate-income housing as approved by the Superior Court and documented in the housing element.
(d) 
This article implements and incorporates the relevant provisions of the HEFSP and addresses the requirements of P.L. 2024, Chapter 2, the FHA, N.J.A.C. 5:99, NJ Supreme Court upheld COAH regulations at N.J.A.C. 5:93 and 5:97, and UHAC at N.J.A.C. 5:80-26.1, as may be amended and supplemented.
(e) 
Applicability.
(1) 
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 pursuant to the municipality's most recently adopted HEFSP.
(2) 
This article shall apply to all developments that contain very-low-, low- and moderate-income housing units included in the municipal HEFSP, including any unanticipated future developments that will provide very-low-, low- and moderate-income housing units.
(3) 
Projects receiving federal low income housing tax credit financing and are proposed for credit shall comply with the low/moderate split and bedroom distribution requirements, maximum initial rents and sales prices requirements, affirmative fair marketing requirements of UHAC at N.J.A.C. 5:80-26.16 and the length of the affordability controls applicable to such projects shall be not less than a 30-year compliance period plus a 15-year extended-use period, for a total of not less than 45 years.
[Amended 3-9-2026 by Ord. No. 2026-15]
As used herein the following terms shall have the following meanings:
95/5 RESTRICTION
Means a deed restriction governing a restricted ownership unit that is part of a housing element that received substantive certification from COAH pursuant to N.J.A.C. 5:93, as it was in effect at the time of the receipt of substantive certification, before October 1, 2001, or any other deed restriction governing a restricted ownership unit with a seller repayment option requiring 95% of the price differential to be paid to the municipality or an instrument of the municipality at the closing of a sale at market price.
ACCESSORY APARTMENTS
Means a residential dwelling unit that provides complete independent living facilities with a private entrance for one or more persons, consisting of provisions for living, sleeping, eating, sanitation, and cooking, including a stove and refrigerator, and is located within a proposed preexisting primary dwelling, within an existing or proposed structure that is an accessory to a dwelling on the same lot, constructed in whole or part as an extension to a proposed or existing primary dwelling, or constructed as a separate detached structure on the same lot as the existing or proposed primary dwelling. Accessory apartments are also referred to as "accessory dwelling units."
ACT
Means the New Jersey Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
ADAPTABLE
Means constructed in compliance with the technical design standards of the barrier free subcode adopted by the Commissioner of Community Affairs pursuant to the "State Uniform Construction Code Act," P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 et seq.) and in accordance with the provisions of Section 5 of P.L. 2005, c. 350 (N.J.S.A. 52:27D-123.15).
ADMINISTRATIVE AGENT
Means the entity approved by the Division responsible for the administration of affordable units, in accordance with N.J.A.C. 5:99-7, and UHAC at N.J.A.C. 5:80-26.15.
AFFIRMATIVE MARKETING
Means a regional marketing strategy designed to attract buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.16.
AFFIRMATIVE MARKETING PLAN
Means the municipally adopted plan of strategies from which the administrative agent will choose to implement as part of the affirmative marketing requirements.
AFFIRMATIVE MARKETING PROCESS OR PROGRAM
Means the actual undertaking of affirmative marketing activities in furtherance of each project with very-low-, low- and moderate-income units.
AFFORDABILITY ASSISTANCE
Means the use of funds to render housing units more affordable to low- and moderate-income households and includes, but is not limited to, down payment assistance, security deposit assistance, low-interest loans, rental assistance, assistance with homeowner's association or condominium fees and special assessments, common maintenance expenses, and assistance with emergency repairs and rehabilitation to bring deed-restricted units up to code, pursuant to N.J.A.C. 5:99-2.5.
AFFORDABILITY AVERAGE
Means an average of the percentage of regional median income at which restricted units in an affordable development are affordable to low- and moderate-income households.
AFFORDABLE
Means, in the case of an ownership unit, that the sales price for the unit conforms to the standards set forth at N.J.A.C. 5:80-26.7 and, in the case of a rental unit, that the rent for the unit conforms to the standards set forth at N.J.A.C. 5:80-26.13.
AFFORDABLE HOUSING DEVELOPMENT
Means a development included in a municipality's housing element and fair share plan, and includes, but is not limited to, an inclusionary development, a municipally sponsored affordable housing project, or a 100% affordable development. This includes developments with affordable units on-site, off-site, or provided as a payment-in-lieu of construction only if such a payment-in-lieu option has been previously approved by the Program or Superior Court as part of the HEFSP. Payments in lieu of construction were invalidated per P.L. 2024, c. 2.
AFFORDABLE HOUSING DISPUTE RESOLUTION PROGRAM or THE PROGRAM
Refers to the dispute resolution program established pursuant to N.J.S.A. 52:27D-313.2.
AFFORDABLE HOUSING MONITORING SYSTEM or AHMS
Means the Department's cloud-based software application, which shall be the central repository for municipalities to use for reporting detailed information regarding affordable housing developments, affordable housing unit completions, and the collection and expenditures of funds deposited into the Municipal Affordable Housing Trust Fund.
AFFORDABLE HOUSING TRUST FUND or AHTF
Means that non-lapsing, revolving trust fund established in DCA pursuant to N.J.S.A. 52:27D-320 and N.J.A.C. 5:43 to be the repository of all state funds appropriated for affordable housing purposes. All references to the "Neighborhood Preservation Nonlapsing Revolving Fund" and "Balanced Housing" mean the AHTF.
AFFORDABLE UNIT
Means a housing unit proposed or developed pursuant to the Act, including units created with municipal affordable housing trust funds.
AGE-RESTRICTED HOUSING
Means a housing unit that is designed to meet the needs of, and is exclusively for, an age-restricted segment of the population such that:
(a) 
All the residents of the development where the unit is situated are 62 years or older;
(b) 
At least 80% of the units are occupied by one person that is 55 years or older; or
(c) 
The development has been designated by the Secretary of HUD as "housing for older persons" as defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
AGENCY
Means the New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ASSISTED LIVING RESIDENCE
Means a facility licensed by the New Jersey Department of Health to provide apartment-style housing and congregate dining and to ensure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor. Apartment units must offer, at a minimum, one unfurnished room, a private bathroom, a kitchenette, and a lockable door on the unit entrance.
BARRIER-FREE ESCROW
Means the holding of funds collected to adapt affordable unit entrances to be accessible in accordance with N.J.S.A. 52:27D-311a et seq. Such funds shall be held in a municipal affordable housing trust fund pursuant to N.J.A.C. 5:99-2.6.
BUILDER'S REMEDY
Means court-imposed site-specific relief for a litigant who seeks to build affordable housing for which the court requires a municipality to utilize zoning techniques, such as mandatory set-asides or density bonuses, including techniques which provide for the economic viability of a residential development by including housing that is not for low- and moderate-income households.
CERTIFIED HOUSEHOLD
Means a household that has been certified by an administrative agent as a very-low-income household, a low-income household, or a moderate-income household.
CHOICE
Means the no-longer-active Choices in Homeownership Incentives for Everyone Program, as it was authorized by the Agency.
COAH or the COUNCIL
Means the Council on Affordable Housing established in, but not of, DCA pursuant to the Act and that was abolished effective March 20, 2024, pursuant to Section 3 at P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1).
COMMISSIONER
Means the Commissioner of the Department of Community Affairs.
COMPLIANCE CERTIFICATION
Means the certification obtained by a municipality pursuant to Section 3 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1), that protects the municipality from exclusionary zoning litigation during the current round of present and prospective need and through July 1 of the year the next round begins, which is also known as a "judgment of compliance" or "judgment of repose." The term "compliance certification" shall include a judgment of repose granted in an action filed pursuant to Section 13 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-313).
CONSTRUCTION
Means new construction and additions, but does not include alterations, reconstruction, renovations, conversion, relocation, or repairs, as those terms are defined in the State Uniform Construction Code promulgated pursuant to the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 et seq.).
COUNTY-LEVEL HOUSING JUDGE
Means a judge appointed pursuant to Section 5 at P.L. 2024, c. 2, to resolve disputes over the compliance of municipal fair share affordable housing obligations and municipal fair share plans and housing elements with the Act.
DCA and DEPARTMENT
Mean the State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
Means a housing unit with health and safety code violations that require 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.
DEPARTMENT
Means the New Jersey Department of Community Affairs.
DEVELOPER
Means the legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land.
DEVELOPMENT
Means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mining, excavation, or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to the Municipal Land Use Law, N.J.S.A. 40:55D-1 et seq.
DEVELOPMENT FEE
Means money paid by a developer for the improvement of residential and nonresidential property as permitted pursuant to N.J.S.A. 52:27D-329.2 and 40:55D-8.1 through 40:55D-8.7 and N.J.A.C. 5:99-3.
DISPUTE RESOLUTION PROGRAM
Means the Affordable Housing Dispute Resolution Program, established pursuant to Section 5 at P.L. 2024, c. 2 (N.J.S.A. 52:27D-313.2).
DIVISION
Means the Division of Local Planning Services within the Department of Community Affairs.
EMERGENT OPPORTUNITY
Means a circumstance that has arisen whereby affordable housing will be able to be produced through a delivery mechanism not originally contemplated by or included in a fair share plan that has been the subject of a compliance certification.
EQUALIZED ASSESSED VALUE or EAV
Means 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 at P.L. 1973, c. 123 (N.J.S.A. 54:1-35a, 54:1-35b, and 54:1-35c). Estimates at the time of building permit may be obtained by the tax assessor using construction cost estimates. Final EAV shall be determined at project completion by the municipal assessor.
EQUITY SHARE AMOUNT
Means the product of the price differential and the equity share, with the equity share being the whole number of years that have elapsed since the last non-exempt sale of a restricted ownership unit, divided by 100, except that the equity share may not be less than 5% and may not exceed 30%.
EXCLUSIONARY ZONING LITIGATION
Means litigation challenging the fair share plan, housing element, ordinances, or resolutions that implement the fair share plan or housing element of a municipality based on alleged noncompliance with the Act or the Mount Laurel doctrine, which litigation shall include, but shall not be limited to, litigation seeking a builder's remedy.
EXIT SALE
Means the first authorized non-exempt sale of a restricted unit following the end of the control period, which sale terminates the affordability controls on the unit.
EXTENSION OF EXPIRING CONTROLS
Means extending the deed restriction period on units where the controls will expire in the current round of a housing obligation, so that the total years of a deed restriction is at least 60 years.
FAIR SHARE OBLIGATION
Means the total of the present need and prospective need, including prior rounds, as determined by the Affordable Housing Dispute Resolution Program, or a court of competent jurisdiction.
FAIR SHARE PLAN
Means the plan or proposal, with accompanying ordinances and resolutions, by which a municipality proposes to satisfy its constitutional obligation to create a realistic opportunity to meet its fair share of low- and moderate-income housing needs of its region and which details the affirmative measures the municipality proposes to undertake to achieve its fair share of low- and moderate-income housing, as provided in the municipal housing element, and which addresses the development regulations necessary to implement the housing element, including, but not limited to, inclusionary requirements and development fees, and the elimination of unnecessary housing cost-generating features from the municipal land use ordinances and regulations.
FHA
Means the New Jersey Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
GREEN BUILDING STRATEGIES
Means the 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.
HMFA or THE AGENCY
Means the New Jersey Housing and Mortgage Finance Agency established pursuant to P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
HOUSEHOLD INCOME
Means a household's gross annual income calculated in a manner consistent with the determination of annual income pursuant to Section 8 of the United States Housing Act of 1937 (Section 8), not in accordance with the determination of gross income for federal income tax liability.
HOUSING ELEMENT
Means the portion of a municipality's master plan adopted in accordance with the Municipal Land Use Law (MLUL) at N.J.S.A. 40:55D-28.b(3) and the Act consisting of reports, statements proposals, maps, diagrams, and text designed to meet the municipality's fair share of its region's present and prospective housing needs, particularly with regard to low- and moderate-income housing, which shall include the municipal present and prospective obligation for affordable housing, determined pursuant to subsection f at N.J.S.A. 52:27D-304.1.
HOUSING REGION
Means a geographic area established pursuant to N.J.S.A. 52:27D-304.2b.
INCLUSIONARY DEVELOPMENT
Means a residential housing development in which a substantial percentage of the housing units are provided for a reasonable income range of low- and moderate-income households.
JUDGMENT OF COMPLIANCE or JUDGMENT FOR REPOSE
Means a determination issued by the Superior Court approving a municipality's fair share plan to satisfy its affordable housing obligation for a particular 10-year round.
LOW-INCOME HOUSEHOLD
Means a household with a household income equal to 50% or less of the regional median income.
LOW-INCOME UNIT
Means a restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
Means 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 or load-bearing structural systems.
MIXED-USE DEVELOPMENT
Means any development that includes both a nonresidential development component and a residential development component, and shall include developments for which:
(a) 
There is a common developer for both the residential development component and the nonresidential development component, provided that for purposes of this definition, multiple persons and entities maybe considered a common developer if there is a contractual relationship among them obligating each entity to develop at least a portion of the residential or nonresidential development, or both, or otherwise to contribute resources to the development; and
(b) 
The residential and nonresidential developments are located on the same lot or adjoining lots, including, but not limited to, lots separated by a street, a river, or another geographical feature.
MODERATE-INCOME HOUSEHOLD
Means a household with a household income in excess of 50% but less than 80% of the regional median income.
MODERATE-INCOME UNIT
Means a restricted unit that is affordable to a moderate-income household.
MONI
Means the no-longer-active Market Oriented Neighborhood Investment Program, as it was authorized by the Agency.
MUNICIPAL AFFORDABLE HOUSING TRUST FUND
Means a separate, interest-bearing account held by a municipality for the deposit of development fees, payments in lieu of constructing affordable units on sites zoned for affordable housing previously approved prior to March 20, 2024 (per P.L. 2024, c. 2), barrier-free escrow funds, recapture funds, proceeds from the sale of affordable units, rental income, repayments from affordable housing program loans, enforcement fines, unexpended RCA funds remaining from a completed RCA project, application fees, and any other funds collected by the municipality in connection with its affordable housing programs, which shall be used to address municipal low- and moderate-income housing obligations within the time frames established by the Legislature and this chapter.
MUNICIPAL DEVELOPMENT FEE ORDINANCE
Means an ordinance adopted by the governing body of a municipality that authorizes the collection of development fees.
MUNICIPAL HOUSING LIAISON or MHL
Means an appointed municipal employee who is, pursuant to N.J.A.C. 5:99-6, responsible for oversight and/or administration of the affordable units created within the municipality.
NEW CONSTRUCTION
Means the creation of a new housing unit under regulation by a code enforcement official regardless of the means by which the unit is created. Newly constructed units are evidenced by the issuance of a certificate of occupancy and may include new residences created through additions and alterations, adaptive reuse, subdivision, or conversion of existing space, and moving a structure from one location to another.
NEW JERSEY AFFORDABLE HOUSING TRUST FUND
Means an account established pursuant to N.J.S.A. 52:27D-320.
NEW JERSEY HOUSING RESOURCE CENTER or HOUSING RESOURCE CENTER
Means the online affordable housing listing portal, or its successor, overseen by the Agency pursuant to N.J.S.A. 52:27D-321.3 et seq.
NON-EXEMPT SALE
Means any sale or transfer of ownership of a restricted unit to one's self or to another individual other than the transfer of ownership between spouses or civil union partners; the transfer of ownership between former spouses or civil union partners 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.
NONPROFIT
Means an organization granted nonprofit status in accordance with Section 501(c)(3) of the Internal Revenue Code.
NONRESIDENTIAL DEVELOPMENT
Means:
(a) 
Any building or structure, or portion thereof, including, but not limited to, any appurtenant improvements, which is designated to a use group other than a residential use group according to the State Uniform Construction Code, N.J.A.C. 5:23, promulgated to effectuate the State Uniform Construction Code Act, N.J.S.A. 52:27D-119 et seq., including any subsequent amendments or revisions thereto;
(b) 
Hotels, motels, vacation timeshares, and child-care facilities; and
(c) 
The entirety of all continuing care facilities within a continuing care retirement community which is subject to the Continuing Care Retirement Community Regulation and Financial Disclosure Act, N.J.S.A. 52:27D-330 et seq.
NONRESIDENTIAL DEVELOPMENT FEE
Means the fee authorized to be imposed pursuant to N.J.S.A. 40:55D-8.1 through 40:55D-8.7.
ORDER FOR REPOSE
Means the protection a municipality has from a builder's remedy lawsuit for a period of time from the entry of a judgment of compliance by the Superior Court. A judgment of compliance often results in an order for repose.
PAYMENT IN LIEU OF CONSTRUCTING AFFORDABLE UNITS
Means the prior approval of the payment of funds to the municipality by a developer when affordable units are not produced on a site zoned for an inclusionary development. The statutory permission for payments in lieu of constructing affordable units was eliminated per P.L. 2024, c. 2.
PERSON WITH A DISABILITY
Means a person with a physical disability, infirmity, malformation, or disfigurement which is caused by bodily injury, birth defect, aging, or illness including epilepsy and other seizure disorders, and which shall include, but not be limited to, any degree of paralysis, amputation, lack of physical coordination, blindness or visual impairment, deafness or hearing impairment, the inability to speak or a speech impairment, or physical reliance on a service animal, wheelchair, or other remedial appliance or device.
PRICE DIFFERENTIAL
Means the difference between the controlled sale price of a restricted unit and the contract price at the exit sale of the unit, determined as of the date of a proposed contract of sale for the unit. If there is no proposed contract of sale, the price differential is the difference between the controlled sale price of a restricted unit and the appraised value of the unit as if it were not subject to UHAC, determined as of the date of the appraisal. If the controlled sale price exceeds the contract price or, in the absence of a contract price, the appraised value, the price differential is zero dollars.
PRIOR ROUND UNIT
Means a housing unit that addresses a municipality's fair share obligation from a round prior to the fourth round of affordable housing obligations, including any unit that: (1) received substantive certification from COAH; (2) is part of a third-round settlement agreement or judgment of compliance approved by a court of competent jurisdiction, inclusive of units created pursuant to a zoning designation adopted as part of the settlement agreement or judgment of compliance to create a realistic opportunity for development; (3) is subject to a grant agreement or other contract with either the state or a political subdivision thereof entered into prior to July 1, 2025, pursuant to either item (1) or (2) above; or (4) otherwise addresses a municipality's fair share obligation from a round prior to the fourth round of affordable housing obligations. A unit created after the enactment of P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1) on March 20, 2024, is not a prior round unit unless: (1) it is created pursuant to a prior round development plan or zoning designation that received COAH or court approval on or before the cutoff date of June 30, 2025, or the date that the municipality adopts the implementing ordinances and resolutions for the fourth round of affordable housing obligations, whichever occurs sooner; and (2) its siting and creation are consistent with the form of the prior round development plan or zoning designation in effect as of the cutoff date, without any amendment or variance.
PROGRAM
Means the Affordable Housing Dispute Resolution Program, established pursuant to Section 5 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-313.2).
PROSPECTIVE NEED
Means a projection of housing needs based on development and growth which is reasonably likely to occur in a region or a municipality, as the case may be, as a result of actual determination of public and private entities. Prospective need shall be determined by the methodology set forth pursuant to Sections 6 and 7 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.2 and N.J.S.A. 52:27D-304.3) for the fourth round and all future rounds of housing obligations.
QUALIFIED URBAN AID MUNICIPALITY
Means a municipality that meets the criteria established pursuant to N.J.S.A. 52:27D-304.3.c(1).
RANDOM SELECTION PROCESS
Means a lottery process by which currently income-eligible applicant-households are selected, at random, for placement in affordable housing units such that no preference is given to one applicant over another, except in the case of a veterans' preference where such an agreement exists; for purposes of matching household income and size with an appropriately priced and sized affordable unit; or another purpose allowed pursuant to N.J.A.C. 5:80-26.7(k)3. This definition excludes any practices that would allow affordable housing units to be leased or sold on a first-come-first-served basis.
RCA ADMINISTRATOR
Means an appointed municipal employee who is responsible for oversight and/or administration of affordable units and associated revenues and expenditures within the municipality that were funded through regional contribution agreements.
RCA PROJECT PLAN
Means a past application, submitted by a receiving municipality in an RCA, delineating the manner in which the receiving municipality intended to create or rehabilitate low- and moderate-income housing.
RECEIVING MUNICIPALITY
Means, for the purposes of an RCA, a municipality that contractually agreed to assume a portion of another municipality's fair share obligation.
RECONSTRUCTION
Means any project where the extent and nature of the work is such that the work area cannot be occupied while the work is in progress and where a new certificate of occupancy is required before the work area can be reoccupied, pursuant to the Rehabilitation Subcode of the Uniform Construction Code, N.J.A.C. 5:23-6. Reconstruction shall not include projects comprised only of floor finish replacement, painting or wallpapering, or the replacement of equipment or furnishings. Asbestos hazard abatement and lead hazard abatement projects shall not be classified as reconstruction solely because occupancy of the work area is not permitted.
RECREATIONAL FACILITIES AND COMMUNITY CENTERS
Means any indoor or outdoor buildings, spaces, structures, or improvements intended for active or passive recreation, including, but not limited to, ballfields, meeting halls, and classrooms, accommodating either organized or informal activity.
REGIONAL CONTRIBUTION AGREEMENT or RCA
Means a contractual agreement, pursuant to the Act, into which two municipalities voluntarily entered and was approved by COAH and/or Superior Court prior to July 18, 2008, to transfer a portion of a municipality's affordable housing obligation to another municipality within its housing region.
REGIONAL MEDIAN INCOME
Means the median income by household size for an applicable housing region, as calculated annually in accordance with N.J.A.C. 5:80-26.3.
REHABILITATION
Means the repair, renovation, alteration, or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
RENT
Means 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. With respect to units in assisted living residences, rent does not include charges for food and services.
RESIDENTIAL DEVELOPMENT FEE
Means money paid by a developer for the improvement of residential property as permitted pursuant to N.J.S.A. 52:27D-329.2 and N.J.A.C. 5:99-3.2.
RESTRICTED UNIT
Means a dwelling unit, whether a rental unit or ownership unit, that is subject to the affordability controls of this article but does not include a market-rate unit that was financed pursuant to UHORP, MONI, or CHOICE.
SPENDING PLAN
Means a method of allocating funds contained in an affordable housing trust fund account, which includes, but is not limited to, development fees collected and to be collected pursuant to an approved municipal development fee ordinance, or pursuant to N.J.S.A. 52:27D-329.1 et seq., for the purpose of meeting the housing needs of low- and moderate-income individuals.
STATE DEVELOPMENT AND REDEVELOPMENT PLAN or STATE PLAN
Means the plan prepared pursuant to Sections 1 through 12 of the "State Planning Act," P.L. 1985, c. 398 (N.J.S.A. 52:18A-196 et seq.), designed to represent a balance of development and conservation objectives best suited to meet the needs of the state, and for the purpose of coordinating planning activities and establishing statewide planning objectives in the areas of land use, housing, economic development, transportation, natural resource conservation, agriculture and farmland retention, recreation, urban and suburban redevelopment, historic preservation, public facilities and services, and intergovernmental coordination pursuant to subsection f of Section 5 of P.L. 1985, c. 398 (N.J.S.A. 52:18A-200).
SUPPORTIVE HOUSING HOUSEHOLD
Means a very-low-, low- or moderate-income household certified as income eligible by an administrative agent in accordance with N.J.A.C. 5:80-26.14, in which at least one member is an individual who requires supportive services to maintain housing stability and independent living and who is part of a population identified by federal or state statute, regulation, or program guidance as eligible for supportive or special needs housing. Such populations include, but are not limited to, persons with intellectual or developmental disabilities, persons with serious mental illness, person with head injuries (as defined in Section 2 of P.L. 1977), persons with physical disabilities or chronic health conditions, persons who are homeless as defined by the U.S. Department of Housing and Urban Development at 24 CFR Part 578, survivors of domestic violence, youth aging out of foster care, and other special needs populations recognized under programs administered by the U.S. Department of Housing and Urban Development, the Low-Income Housing Tax Credit Program, the McKinney—Vento Act, or the New Jersey Department of Human Services. A supportive housing household may include family members, unrelated individuals, or live-in aides, provided that the household meets the income eligibility requirements of this article, except that in the case of unrelated individuals not operating as a family unit, income eligibility shall be tested on an individual basis rather than in the aggregate; the unit is leased or sold subject to the affordability controls established herein; and the supportive services available to the household are designed to promote housing stability, independent living, and community integration. The determination of whether unrelated individuals are operating as a family unit shall be made based on the applicant's self-identification of household members on the affordable housing application.
SUPPORTIVE HOUSING SPONSORING PROGRAM
Means grant or loan program which provided financial assistance to the development of the unit.
SUPPORTIVE HOUSING UNIT
Means a restricted rental unit, as defined by N.J.S.A. 34:1B-21.24, that is affordable to very-low-, low- or moderate-income households and is reserved for occupancy by a supportive housing household. Supportive housing units are also referred to as "permanent supportive housing units."
TRANSITIONAL HOUSING
Means temporary housing that:
(a) 
Includes, but is not limited to, single-room occupancy housing or shared living and supportive living arrangements;
(b) 
Provides access to on-site or off-site supportive services for very-low-income households who have recently been homeless or lack stable housing;
(c) 
Is licensed by the department; and
(d) 
Allows households to remain for a minimum of six months.
TREASURER
Means the Treasurer of the State of New Jersey.
UHAC
Means the Uniform Housing Affordability Controls set forth at N.J.A.C. 5:80-26.
UHORP
Means the Agency's Urban Homeownership Recovery Program, as it was authorized by the Agency Board.
UNIT TYPE
Means type of dwelling unit with various building standards, including but not limited to single-family detached, single-family attached/townhouse, stacked townhouse (attached building containing two units each with separate entrances), duplex (detached building containing two units each with separate entrances), triplex (three units each with separate entrance), quadplex (four units each with separate entrance), multifamily/flat (two or more units with a shared entrance). Inclusion of a garage, or not, shall not define the unit type.
VERY-LOW-INCOME HOUSEHOLD
Means a household with a household income less than or equal to 30% of the regional median income.
VERY-LOW-INCOME HOUSING
Means housing affordable according to the Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to 30 percent or less of the median gross household income for households of the same size within the housing region in which the housing is located.
VERY-LOW-INCOME UNIT
Means a restricted unit that is affordable to a very-low-income household.
VETERAN
Means a veteran as defined at N.J.S.A. 54:4-8.10.
VETERANS' PREFERENCE
Means the agreement between a municipality and a developer or residential development owner that allows for low- to moderate-income veterans to be given preference for up to 50% of rental units in relevant projects, as provided for at N.J.S.A. 52:27D-311.j.
WEATHERIZATION
Means 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 rehabilitation.
[Amended 3-9-2026 by Ord. No. 2026-15]
The municipality shall comply with the following monitoring and reporting requirements regarding the status of the implementation of its court-approved housing element and fair share plan:
(a) 
The municipality shall provide electronic monitoring data with the Department pursuant to P.L. 2024, Chapter 2 and N.J.A.C. 5:99 through the Affordable Housing Monitoring System (AHMS). All monitoring information required to be made public by the FHA shall be available to the public on the Department's website at https://www.nj.gov/dca/dlps/hss/MuniStatusReporting.shtml.
(b) 
On or before February 15 of each year, the municipality shall provide annual reporting of its municipal Affordable Housing Trust Fund activity to the Department on the AHMS portal. The reporting shall include an accounting of all municipal Affordable Housing Trust Fund activity, including the sources and amounts of funds collected and the amounts and purposes for which any funds have been expended, for the previous year from January 1 to December 31.
(c) 
On or before February 15 of each year, the annual reporting of the status of all affordable housing activity shall be provided to the Department on the AHMS portal, for the previous year from January 1 to December 31.
[Amended 3-9-2026 by Ord. No. 2026-15]
(a) 
A development, other than single-family detached, providing a minimum of five new housing units created through any municipal rezoning or Zoning Board action, use or density variance, redevelopment plan, or rehabilitation plan that provides for densities at or above six units per acre, is required to include an affordable housing set-aside of 20%.
(b) 
Within the lands of the former Borough, any residential development, except as noted herein, providing a minimum of 10 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.
(1) 
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) 
Any affordable units generated through such mandatory set-aside shall be subject to all other provisions of this article.
(d) 
All such affordable units shall be governed by this article, including controls on affordability and bedroom distribution, and shall be affirmatively marketed to the housing region in conformance with UHAC at N.J.A.C. 5:80-26.1 et seq., any successor regulation, and all other applicable laws.
(e) 
No subdivision shall be permitted or approved for the purpose of avoiding compliance with this requirement. Developers cannot, for example, subdivide a project into two lots and then make each of them a number of units just below the threshold.
(f) 
The mandatory set-aside requirements of this section do not give any developer the right to any rezoning, variance or other relief, or establish any obligation on the part of the municipality to grant such rezoning, variance or other relief.
(g) 
This municipality-wide mandatory set-aside requirement does not apply to any sites or specific zones otherwise identified in the HEFSP, for which density and set-aside requirements shall be governed by the specific standards as set forth therein.
(h) 
In the event that the inclusionary set-aside of 20% of the total number of residential units does not result in a full integer, the developer shall choose one of two options for addressing the fractional unit:
(1) 
The developer may round the set-aside upward to construct a whole additional affordable unit; or
(2) 
If the set-aside includes a fractional unit equal to 0.49 or less, the developer may round the set-aside downward and construct the lesser whole number of affordable units and shall also contribute the fractional subsidy payment ("fractional subsidy payment") to be made to the municipality and deposited in the municipal Affordable Housing Trust Fund. The fractional subsidy payment amount shall be calculated as the fractional unit multiplied by the base subsidy payment amount currently established by the municipality as the average subsidy reflected in financial pro formas for 100% affordable housing or subsidized developments in the municipality or region on file with the municipality.
For example, if seven total units are developed at an inclusionary site, a 20% set-aside would require 1.4 affordable units. Per the requirements above, the developer shall round up the 0.4 unit to one whole affordable unit so as to construct a total of two (2) affordable housing units; or the developer shall round the set-aside downward so as to construct only one affordable unit and shall pay into the municipal Affordable Housing Trust Fund a fractional subsidy payment equal to the dollar amount established by the municipality multiplied by 0.4.