A3447

An Act concerning affordable housing and revising and supplementing various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) The Legislature finds and declares that:

a. In 1975, the New Jersey Supreme Court determined that municipalities may not validly employ their zoning powers to prevent the creation of a variety and choice of housing opportunities. In response, the Legislature established the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), which has resulted in a complex system of administration that micromanages all types of development, including market rate- and low- and moderate-income residential development, as well as commercial, retail, and industrial growth through a determination of each region and municipality's housing needs based on difficult to predict and fallible population and job growth projections.

b. The Legislature further finds that this approach has not resulted in the creation of housing opportunities for all categories of the State's citizens. During first 35 years of the "Fair Housing Act's" existence, this complex system of regulation has resulted in scores of lawsuits and court decisions, and the unnecessary expenditure of millions of dollars by municipalities, developers, and the State. In 2010, the system remains tied up with multiple legal challenges, preventing the creation of housing opportunities within the State.

c. It is incumbent on the State’s elected officials to develop a new approach that will result in the creation, through zoning requirements, of a realistic opportunity for a variety and choice of housing for low- and moderate-income families in each municipality of the State, in consideration of regional and Statewide needs for affordable housing. The welfare of the public requires a new approach that does not waste the limited resources needed to fulfill government's many functions, including public safety, health care, education and environmental protection, ensuring the affordability of mass transit, protection of civil rights, promotion of economic growth, and job creation.

d. A simple, rather than complex, system that maximizes the ability of the free market to produce a variety and choice of housing will most effectively provide housing opportunities for the low- and moderate-income residents of New Jersey. To ensure that New Jersey is an affordable, appealing home for all the State's residents, municipalities must have clear and realistic standards to guide municipal action.

e. Municipalities that already have a healthy mix of housing should not be encumbered with State zoning mandates that are needed to create an opportunity for an appropriate variety and choice of housing in municipalities where a reasonable mix of housing does not already exist.

f. By requiring those municipalities not already having a reasonable mix of housing to comply with the zoning mandates established hereunder, the State will maximize the opportunity for variety and choice of housing in those municipalities without wasting limited resources necessary to provide for the other governmental functions stated herein, which only represent some, but not all, of government's responsibility to provide for the general welfare of its residents

g. It is the public policy of this State to encourage the well-organized production of low- and moderate-income housing to serve the general welfare of all the State's residents by implementing a clear, intelligible regulatory system.

2. (New section) The Council on Affordable Housing established by the “Fair Housing Act,” P.L.1985, c.222 (C.52:27D-301 et al.) is abolished, and all of its powers, functions, and duties that are not repealed herein are continued in the Department of Community Affairs, established pursuant to section 1 of P.L.1966, c.293 (C.52:27D-1), except as herein otherwise provided. Whenever, in any law, rule, regulation, order, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the Council on Affordable Housing, the same shall mean and refer to the Department of Community Affairs. All appropriations and other moneys available, and to become available, to the Council on Affordable Housing are hereby continued in the Department of Community Affairs, and shall be available for the objects and purposes for which such moneys are appropriated, subject to any terms, restriction, limitations, or other requirements imposed by State or federal law.

To effectuate this transfer there shall also be transferred all necessary records and papers of the Council on Affordable Housing.

This transfer shall be subject to the provisions of the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.).

3. Section 3 of P.L.1993, c.32 (C.40:55D-40.3) is amended to read as follows:

3. a. There is established in, but not of, the department a Site Improvement Advisory Board, to devise statewide site improvement standards pursuant to section 4 of this act. The board shall consist of the commissioner or his designee, who shall be a non-voting member of the board, the Director of the Division of Housing in the Department of Community Affairs, who shall be a voting member of the board, and [10] nine other voting members, to be appointed by the commissioner. The other members shall include two professional planners, one of whom serves as a planner for a governmental entity or whose professional experience is predominantly in the public sector and who has worked in the public sector for at least the previous five years and the other of whom serves as a planner in private practice and has particular expertise in private residential development and has been involved in private sector planning for at least the previous five years, and one representative each from:

(1) The New Jersey Society of Professional Engineers;

(2) The New Jersey Society of Municipal Engineers;

(3) The New Jersey Association of County Engineers;

(4) The New Jersey Federation of Planning Officials;

(5) [The Council on Affordable Housing] (Deleted by amendment, P.L. , c. (C. );

(6) The New Jersey Builders' Association;

(7) The New Jersey Institute of Technology;

(8) The New Jersey State League of Municipalities.

b. Among the members to be appointed by the commissioner who are first appointed, four shall be appointed for terms of two years each, four shall be appointed for terms of three years each, and two shall be appointed for terms of four years each. Thereafter, each appointee shall serve for a term of four years. Vacancies in the membership shall be filled in the same manner as original appointments are made, for the unexpired term. The commission shall select from among its members a chairman. Members may be removed by the commissioner for cause.

c. Board members shall serve without compensation, but may be entitled to reimbursement, from moneys appropriated or otherwise made available for the purposes of this act, for expenses incurred in the performance of their duties.

(cf: P.L.1993, c.32, s.3)

4. Section 4 of P.L.1987, c.129 (C.40:55D-45.2) is amended to read as follows:

4. A general development plan may include, but not be limited to, the following:

a. A general land use plan at a scale specified by ordinance indicating the tract area and general locations of the land uses to be included in the planned development. The total number of dwelling units and amount of nonresidential floor area to be provided and proposed land area to be devoted to residential and nonresidential use shall be set forth. In addition, the proposed types of nonresidential uses to be included in the planned development shall be set forth, and the land area to be occupied by each proposed use shall be estimated. The density and intensity of use of the entire planned development shall be set forth, and a residential density and a nonresidential floor area ratio shall be provided;

b. A circulation plan showing the general location and types of transportation facilities, including facilities for pedestrian access, within the planned development and any proposed improvements to the existing transportation system outside the planned development;

c. An open space plan showing the proposed land area and general location of parks and any other land area to be set aside for conservation and recreational purposes and a general description of improvements proposed to be made thereon, including a plan for the operation and maintenance of parks and recreational lands;

d. A utility plan indicating the need for and showing the proposed location of sewage and water lines, any drainage facilities necessitated by the physical characteristics of the site, proposed methods for handling solid waste disposal, and a plan for the operation and maintenance of proposed utilities;

e. A storm water management plan setting forth the proposed method of controlling and managing storm water on the site;

f. An environmental inventory including a general description of the vegetation, soils, topography, geology, surface hydrology, climate and cultural resources of the site, existing man-made structures or features and the probable impact of the development on the environmental attributes of the site;

g. A community facility plan indicating the scope and type of supporting community facilities which may include, but not be limited to, educational or cultural facilities, historic sites, libraries, hospitals, firehouses, and police stations;

h. A housing plan outlining the number of housing units to be provided and the extent to which any affordable housing [obligation assigned to the municipality pursuant to P.L. 1985, c. 222 (C. 52:27D-301 et al.) will be fulfilled] will be addressed by the development;

i. A local service plan indicating those public services which the applicant proposes to provide and which may include, but not be limited to, water, sewer, cable and solid waste disposal;

j. A fiscal report describing the anticipated demand on municipal services to be generated by the planned development and any other financial impacts to be faced by municipalities or school districts as a result of the completion of the planned development. The fiscal report shall also include a detailed projection of property tax revenues which will accrue to the county, municipality and school district according to the timing schedule provided under subsection k. of this section, and following the completion of the planned development in its entirety;

k. A proposed timing schedule in the case of a planned development whose construction is contemplated over a period of years, including any terms or conditions which are intended to protect the interests of the public and of the residents who occupy any section of the planned development prior to the completion of the development in its entirety; and

l. A municipal development agreement, which shall mean a written agreement between a municipality and a developer relating to the planned development.

(cf: P.L.1987, c. 129, s. 4)

5. Section 3 of P.L.1992, c.79 (C.40A:12A-3) is amended to read as follows:

3. As used in [this act] P.L.1992, c.79 (C.40A:12A-1 et seq.):

"Bonds" means any bonds, notes, interim certificates, debentures or other obligations issued by a municipality, county, redevelopment entity, or housing authority pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.).

"Comparable, affordable replacement housing" means newly-constructed or substantially rehabilitated housing to be offered to a household being displaced as a result of a redevelopment project, that is affordable to that household based on its income under the guidelines established by [the Council on Affordable Housing in] the Department of Community Affairs for maximum affordable sales prices or maximum fair market rents, and that is comparable to the household's dwelling in the redevelopment area with respect to the size and amenities of the dwelling unit, the quality of the neighborhood, and the level of public services and facilities offered by the municipality in which the redevelopment area is located.

"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," P.L.1975, c.291 (C.40:55D-1 et seq.).

"Governing body" means the body exercising general legislative powers in a county or municipality according to the terms and procedural requirements set forth in the form of government adopted by the county or municipality.

"Housing authority" means a housing authority created or continued pursuant to this act.

"Housing project" means a project, or distinct portion of a project, which is designed and intended to provide decent, safe and sanitary dwellings, apartments or other living accommodations for persons of low and moderate income; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare or other purposes. The term "housing project" also may be applied to the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith.

"Persons of low and moderate income" means persons or families who are, in the case of State assisted projects or programs, so defined by the Council on Affordable Housing in the Department of Community Affairs, or in the case of federally assisted projects or programs, defined as of "low and very low income" by the United States Department of Housing and Urban Development.

"Public body" means the State or any county, municipality, school district, authority or other political subdivision of the State.

"Public housing" means any housing for persons of low and moderate income owned by a municipality, county, the State or the federal government, or any agency or instrumentality thereof.

"Publicly assisted housing" means privately owned housing which receives public assistance or subsidy, which may be grants or loans for construction, reconstruction, conservation, or rehabilitation of the housing, or receives operational or maintenance subsidies either directly or through rental subsidies to tenants, from a federal, State or local government agency or instrumentality.

"Real property" means all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise, and indebtedness secured by such liens.

"Redeveloper" means any person, firm, corporation or public body that shall enter into or propose to enter into a contract with a municipality or other redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, under the provisions of this act, or for any construction or other work forming part of a redevelopment or rehabilitation project.

"Redevelopment" means clearance, replanning, development and redevelopment; the conservation and rehabilitation of any structure or improvement, the construction and provision for construction of residential, commercial, industrial, public or other structures and the grant or dedication of spaces as may be appropriate or necessary in the interest of the general welfare for streets, parks, playgrounds, or other public purposes, including recreational and other facilities incidental or appurtenant thereto, in accordance with a redevelopment plan.

"Redevelopment agency" means a redevelopment agency created pursuant to subsection a. of section 11 of P.L.1992, c.79 (C.40A:12A-11) or established heretofore pursuant to the "Redevelopment Agencies Law," P.L.1949, c.306 (C.40:55C-1 et al.), repealed by this act, which has been permitted in accordance with the provisions of this act to continue to exercise its redevelopment functions and powers.

"Redevelopment area" or "area in need of redevelopment" means an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) or determined heretofore to be a "blighted area" pursuant to P.L.1949, c.187 (C.40:55-21.1 et seq.) repealed by this act, both determinations as made pursuant to the authority of Article VIII, Section III, paragraph 1 of the Constitution. A redevelopment area may include lands, buildings, or improvements which of themselves are not detrimental to the public health, safety or welfare, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they are a part.

"Redevelopment entity" means a municipality or an entity authorized by the governing body of a municipality pursuant to subsection c. of section 4 of P.L.1992, c.79 (C.40A:12A-4) to implement redevelopment plans and carry out redevelopment projects in an area in need of redevelopment, or in an area in need of rehabilitation, or in both.

"Redevelopment plan" means a plan adopted by the governing body of a municipality for the redevelopment or rehabilitation of all or any part of a redevelopment area, or an area in need of rehabilitation, which plan shall be sufficiently complete to indicate its relationship to definite municipal objectives as to appropriate land uses, public transportation and utilities, recreational and municipal facilities, and other public improvements; and to indicate proposed land uses and building requirements in the redevelopment area or area in need of rehabilitation, or both.

"Redevelopment project" means any work or undertaking pursuant to a redevelopment plan; such undertaking may include any buildings, land, including demolition, clearance or removal of buildings from land, equipment, facilities, or other real or personal properties which are necessary, convenient, or desirable appurtenances, such as but not limited to streets, sewers, utilities, parks, site preparation, landscaping, and administrative, community, health, recreational, educational, and welfare facilities.

"Rehabilitation" means an undertaking, by means of extensive repair, reconstruction or renovation of existing structures, with or without the introduction of new construction or the enlargement of existing structures, in any area that has been determined to be in need of rehabilitation or redevelopment, to eliminate substandard structural or housing conditions and arrest the deterioration of that area.

"Rehabilitation area" or "area in need of rehabilitation" means any area determined to be in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14).

(cf: P.L.2008, c.46, s.1)

6. Section 7 of P.L.1992, c.79 (C.40A:12A-7) is amended to read as follows:

7. a. No redevelopment project shall be undertaken or carried out except in accordance with a redevelopment plan adopted by ordinance of the municipal governing body, upon its finding that the specifically delineated project area is located in an area in need of redevelopment or in an area in need of rehabilitation, or in both, according to criteria set forth in section 5 or section 14 of P.L.1992, c.79 (C.40A:12A-5 or 40A:12A-14), as appropriate.

The redevelopment plan shall include an outline for the planning, development, redevelopment, or rehabilitation of the project area sufficient to indicate:

(1) Its relationship to definite local objectives as to appropriate land uses, density of population, and improved traffic and public transportation, public utilities, recreational and community facilities and other public improvements.

(2) Proposed land uses and building requirements in the project area.

(3) Adequate provision for the temporary and permanent relocation, as necessary, of residents in the project area, including an estimate of the extent to which decent, safe and sanitary dwelling units affordable to displaced residents will be available to them in the existing local housing market.

(4) An identification of any property within the redevelopment area which is proposed to be acquired in accordance with the redevelopment plan.

(5) Any significant relationship of the redevelopment plan to (a) the master plans of contiguous municipalities, (b) the master plan of the county in which the municipality is located, and (c) the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.).

(6) As of the date of the adoption of the resolution finding the area to be in need of redevelopment, an inventory of all housing units affordable to low and moderate income households, as defined pursuant to section [4 of P.L.1985, c.222 (C.52:27D-304)] 20 of P.L. , c. (C. ) (pending before the Legislature as this bill), that are to be removed as a result of implementation of the redevelopment plan, whether as a result of subsidies or market conditions, listed by affordability level, number of bedrooms, and tenure.

(7) A plan for the provision, through new construction or substantial rehabilitation of one comparable, affordable replacement housing unit for each affordable housing unit that has been occupied at any time within the last 18 months, that is subject to affordability controls and that is identified as to be removed as a result of implementation of the redevelopment plan. Displaced residents of housing units provided under any State or federal housing subsidy program, or pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), provided they are deemed to be eligible, shall have first priority for those replacement units provided under the plan; provided that any such replacement unit shall not be [credited against a prospective municipal obligation under the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.)] counted as qualified units, if the housing unit which is removed had previously been [credited toward satisfying the municipal fair share obligation] counted. To the extent reasonably feasible, replacement housing shall be provided within or in close proximity to the redevelopment area. A municipality shall report annually to the Department of Community Affairs on its progress in implementing the plan for provision of comparable, affordable replacement housing required pursuant to this section.

b. A redevelopment plan may include the provision of affordable housing in accordance with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the housing element of the municipal master plan.

c. The redevelopment plan shall describe its relationship to pertinent municipal development regulations as defined in the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.). The redevelopment plan shall supersede applicable provisions of the development regulations of the municipality or constitute an overlay zoning district within the redevelopment area. When the redevelopment plan supersedes any provision of the development regulations, the ordinance adopting the redevelopment plan shall contain an explicit amendment to the zoning district map included in the zoning ordinance. The zoning district map as amended shall indicate the redevelopment area to which the redevelopment plan applies. Notwithstanding the provisions of the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) or of other law, no notice beyond that required for adoption of ordinances by the municipality shall be required for the hearing on or adoption of the redevelopment plan or subsequent amendments thereof.

d. All provisions of the redevelopment plan shall be either substantially consistent with the municipal master plan or designed to effectuate the master plan; but the municipal governing body may adopt a redevelopment plan which is inconsistent with or not designed to effectuate the master plan by affirmative vote of a majority of its full authorized membership with the reasons for so acting set forth in the redevelopment plan.

e. Prior to the adoption of a redevelopment plan, or revision or amendment thereto, the planning board shall transmit to the governing body, within 45 days after referral, a report containing its recommendation concerning the redevelopment plan. This report shall include an identification of any provisions in the proposed redevelopment plan which are inconsistent with the master plan and recommendations concerning these inconsistencies and any other matters as the board deems appropriate. The governing body, when considering the adoption of a redevelopment plan or revision or amendment thereof, shall review the report of the planning board and may approve or disapprove or change any recommendation by a vote of a majority of its full authorized membership and shall record in its minutes the reasons for not following the recommendations. Failure of the planning board to transmit its report within the required 45 days shall relieve the governing body from the requirements of this subsection with regard to the pertinent proposed redevelopment plan or revision or amendment thereof. Nothing in this subsection shall diminish the applicability of the provisions of subsection d. of this section with respect to any redevelopment plan or revision or amendment thereof.

f. The governing body of a municipality may direct the planning board to prepare a redevelopment plan or an amendment or revision to a redevelopment plan for a designated redevelopment area. After completing the redevelopment plan, the planning board shall transmit the proposed plan to the governing body for its adoption. The governing body, when considering the proposed plan, may amend or revise any portion of the proposed redevelopment plan by an affirmative vote of the majority of its full authorized membership and shall record in its minutes the reasons for each amendment or revision. When a redevelopment plan or amendment to a redevelopment plan is referred to the governing body by the planning board under this subsection, the governing body shall be relieved of the referral requirements of subsection e. of this section.

(cf: P.L.2008, c.46, s.2)

7. Section 16 of P.L.1992, c.79 (C.40A:12A-16) is amended to read as follows:

16. a. In order to carry out the housing purposes of this act, a municipality, county, or housing authority may exercise the following powers, in addition to those set forth in section 22 of P.L.1992, c.79 (C.40A:12A-22):

(1) Plan, construct, own, and operate housing projects; maintain, reconstruct, improve, alter, or repair any housing project or any part thereof; and for these purposes, receive and accept from the State or federal government, or any other source, funds or other financial assistance;

(2) Lease or rent any dwelling house, accommodations, lands, buildings, structures or facilities embraced in any housing project; and pursuant to the provisions of this act, establish and revise the rents and charges therefor;

(3) Acquire property pursuant to subsection i. of section 22 of P.L.1992, c.79 (C.40A:12A-22);

(4) Acquire, by condemnation, any land or building which is necessary for the housing project, pursuant to the provisions of the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.);

(5) Issue bonds in accordance with the provisions of section 29 of P.L.1992, c.79 (C.40A:12A-29);

(6) Cooperate with any other municipality, private, county, State or federal entity to provide funds to the municipality or other governmental entity and to homeowners, tenant associations, nonprofit or private developers to acquire, construct, rehabilitate or operate publicly assisted housing, and to provide rent subsidies for persons of low and moderate income, including the elderly, pursuant to applicable State or federal programs;

(7) Encourage the use of demand side subsidy programs such as certificates and vouchers for low-income families and promote the use of project based certificates which provide subsidies for units in newly constructed and substantially rehabilitated structures, and of tenant based certificates which subsidize rent in existing units;

(8) Cooperate with any State or federal entity to secure mortgage assistance for any person of low or moderate income;

(9) Provide technical assistance and support to nonprofit organizations and private developers interested in constructing low and moderate income housing;

(10) If it owns and operates public housing units, provide to the tenants public safety services, including protection against drug abuse, and social services, including counseling and financial management, in cooperation with other agencies;

(11) Provide emergency shelters, transitional housing and supporting services to homeless families and individuals.

b. All housing projects, programs and actions undertaken pursuant to this act shall accord with the housing element of the master plan of the municipality within which undertaken, and with [any fair share housing plan filed by the municipality with the Council on Affordable Housing, based upon the council's criteria and guidelines, pursuant to] the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.)[, whether or not the municipality has petitioned for substantive certification of the plan].

(cf: P.L.1992, c.79, s.16)

8. Section 2 of P.L.1992, c.148 (C.46:15-10.2) is amended to read as follows:

2. a. The annual appropriations act for each State fiscal year shall, without other conditions, limitations or restrictions on the following:

(1) credit amounts paid to the State Treasurer, if any, in payment of fees collected pursuant to paragraph (1) or paragraph (2) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7) to the "Shore Protection Fund" created pursuant to section 1 of P.L.1992, c.148 (C.13:19-16.1), the [Neighborhood Preservation Nonlapsing Revolving Fund] "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), and the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19), pursuant to the requirements of section 4 of P.L.1968, c.49 (C.46:15-8);

(2) appropriate the balance of the "Shore Protection Fund" created pursuant to section 1 of P.L.1992, c.148 (C.13:19-16.1), for the purposes of that fund;

(3) appropriate the balance of the [Neighborhood Preservation Nonlapsing Revolving Fund] "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), for the purposes of that fund, including any permitted transfer of monies to the "Urban Housing Assistance Fund," established pursuant to section 13 of P.L.2008, c.46 (C.52:27D-329.7); and

(4) appropriate the balance of the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19), for the purposes of that fund.

b. If the requirements of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate any of the requirements of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates any of the requirements of subsection a. of this section, certify to the Director of the Division of Taxation that the requirements of subsection a. of this section have not been met.

(cf: P.L.2004, c.120, s.62)

9. Section 9 of P.L.1966, c.293 (C.52:27D-9) is amended to read as follows:

9. The department shall, in addition to other powers and duties invested in it by this act, or by any other law:

(a) Assist in the coordination of State and Federal activities relating to local government;

(b) Advise and inform the Governor on the affairs and problems of local government and make recommendations to the Governor for proposed legislation pertaining thereto;

(c) Encourage cooperative action by local governments, including joint service agreements, regional compacts and other forms of regional cooperation;

(d) Assist local government in the solution of its problems, to strengthen local self-government;

(e) Study the entire field of local government in New Jersey;

(f) Collect, collate, publish and disseminate information necessary for the effective operation of the department and useful to local government;

(g) Maintain an inventory of data and information and act as a clearing house and referral agency for information on State and Federal services and programs;

(h) Stimulate local programs through publicity, education, guidance and technical assistance concerning Federal and State programs;

(i) Convene meetings of municipal, county or other local officials to discuss ways of cooperating to provide service more efficiently and economically; [and]

(j) Maintain and make available on request a list of persons qualified to mediate or arbitrate disputes between local units of government arising from joint service projects or other cooperative activities, and further to prescribe rates of compensation for all such mediation, factfinding or arbitration services; and

(k) Assume the duties of the Council on Affordable Housing that are not repealed by P.L. , c. (pending before the Legislature as this bill) and are transferred to the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.1973, c.208, s.10)

10. Section 1 of P.L.1991, c.479 (C52:27D-307.1) is amended to read as follows:

1. As used in [this act] P.L.1991, c.479 (C52:27D-307.1 et seq.):

"Agency" means the Housing and Mortgage Finance Agency established pursuant to section 4 of the "New Jersey Housing and Mortgage Finance Agency Law of 1983," P.L.1983, c.530 (C.55:14K-4).

"Commissioner" means the Commissioner of Community Affairs.

["Council" means the Council on Affordable Housing created by the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.)]

"Department" means the Department of Community Affairs.

"Housing region" means a housing region as determined by the Council on Affordable Housing pursuant to section 7 of P.L.1985, c.222 (C.52:27D-307).

"Project" or "housing project" means any specific work or undertaking for the purpose of providing housing accommodations, whether by new construction or by rehabilitation or adaptation of existing structures, that shall be affordable to persons and families of low or moderate income within the meaning of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). Such work or undertaking may include the acquisition, construction or rehabilitation of lands, buildings and improvements, and such stores, offices, and social, recreational, communal or other facilities as may be incidental or appurtenant to the housing accommodations that are to be provided.

"Register" means the Register of Housing Projects directed by section 2 of this act to be established and maintained by the commissioner.

(cf: P.L.1991, c.479, s.1)

11. Section 3 of P.L.1991, c.479 (C.52:27D-307.3) is amended to read as follows:

3. a. The commissioner shall cause to be developed a system for assigning and designating priority ratings to each project included in the register. Priority ratings shall be based upon the following factors, giving to each factor such weight as the commissioner shall judge to be appropriate:

(1) Feasibility. Each project shall be evaluated for its physical and financial feasibility, giving consideration to the capabilities of the proposed sponsor or developer, market conditions and regulatory requirements in the locality for which it is proposed, and the availability of financing in sufficient amount and at reasonable cost.

(2) Desirability. Each project shall be evaluated with relation to its probable effect in meeting the affordable housing needs of the housing region in which it is to be located, in accordance with the standards and criteria of the [council] Department of Community Affairs. Consideration shall be given to (a) the number of affordable dwelling units that the project would provide, (b) the proportion of affordable units to the total number of units envisaged in the project plan, (c) the distribution of those affordable units as between those affordable to persons and families of low income and those of moderate income, considered in relation to the needs of the housing region, (d) appropriateness of the proposed tenure of the affordable units, whether to be rental or owner-occupied, in relation to the needs of the housing region, and (e) appropriateness of the proposed distribution of units as to family size, in relation to the needs of the housing region.

(3) Efficiency. Each project shall be evaluated on the basis of the cost to the State, in terms of financial assistance granted or revenue forgone in order to further the project, for each affordable dwelling unit judged by the commissioner to be feasible and desirable according to the terms of the proposal or application made for such assistance.

b. In developing the system of assigning and designating priorities, and in evaluating individual projects for such assignment and designation in the register, the commissioner shall consult with the executive director of the agency [and the executive director of the council]. The [council] person having control over the project and the agency shall promptly and fully supply the commissioner with all relevant information necessary for the commissioner's timely and complete fulfillment of the requirements of this act.

(cf: P.L.1991, c.479, s.3)

12. Section 4 of P.L.1991, c.479 (C.52:27D-307.4) is amended to read as follows:

4. a. Any officer or employee of the department, including any member, officer or employee of the agency [or the council], who receives from any person any solicitation, application, proposal or communication of any kind, whether oral or in writing, aimed at furthering the assistance of any project shall promptly report the same to the commissioner. The report shall identify the person or persons making such communication. If any such person is not identified in the register in accordance with the requirements of subsection b. of section 2 of this act, the report shall state the person's relationship to the sponsor or developer of the project and the capacity in which the person represents himself or herself to be acting on behalf of the sponsor or developer; or if the person fails or refuses to supply that information, the report shall so state.

b. The commissioner shall develop a procedure or procedures by which reports required under subsection a. of this section shall be made either to the commissioner directly or through such administrative channels as the commissioner shall devise and direct. Notwithstanding the provisions of subsection i. of section 4 of P.L.1983, c.530 (C.55:14K-4) [and subsection a. of section 5 of P.L.1985, c.222 (C.52:27D-305) ], the regulations adopted by the commissioner in fulfillment of this subsection shall be of full force and application on and within the agency [and the council]; and all members, officers and employees of the agency [and council] shall give full compliance with and obedience to the rules and orders of the commissioner made in pursuance of [his] the commissioner's duties and responsibilities under this act.

c. Reports made to the commissioner shall be promptly forwarded [by him], not later than 10 days after their receipt, to the Governor and to the presiding officers of the Houses of the Legislature, who shall cause all members of their respective Houses to be notified of the receipt of those reports and shall make adequate provision for the inspection of the commissioner's reports by members and committees of either House, and for the dissemination of those reports to the public. The reports forwarded by the commissioner shall in each instance indicate the priority rating that has been assigned in the register to the project to which the report relates.

(cf: P.L.1991, c.479, s.4)

13. Section 1 of P.L.2005, c.350 (C.52:27D-311a) is amended to read as follows:

1. Beginning upon the effective date of P.L.2005, c.350 (C.52:27D-311a et al.), in order to be a qualified unit for purposes of P.L. , c. (C. ), any new construction for which credit is sought [against a fair share obligation] shall be adaptable in accordance with the provisions of section 5 of P.L.2005, c.350 (C.52:27D-123.15). For the purposes of P.L.2005, c.350 (C.52:27D-311a et al.), "new construction" shall mean an entirely new improvement not previously occupied or used for any purpose.

(cf: P.L.2005, c.350, s.1)

14. Section 6 of P.L.2005, c.350 (C.52:27D-311b) is amended to read as follows:

6. The [council] department may take such measures as are necessary to assure compliance with the adaptability requirements imposed pursuant to P.L.2005, c.350 (C.52:27D-311a et al.), including the inspection of those units which are newly constructed and receive housing credit as provided under section 1 of P.L.2005, c.350 (C.52:27D-311a) for adaptability, as part of the monitoring which occurs pursuant to P.L.1985, c.222 (C.52:27D-301 et al.). [If any units for which credit was granted in accordance with the provisions of P.L.2005, c.350 (C.52:27D-311a et al.) are found not to conform to the requirements of P.L.2005, c.350 (C.52:27D-311a et al.), the council may require the municipality to amend its fair share plan within 90 days of receiving notice from the council, to address its fair share obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.). In the event that the municipality fails to amend its fair share plan within 90 days of receiving such notice, the council may revoke substantive certification.]

(cf: P.L.2005, c.350, s.6)

15. Section 20 of P.L.1985, c.222 (C.52:27D-320) is amended to read as follows:

20. There is established in the Department of Community Affairs a separate trust fund, to be used for the exclusive purposes as provided in this section, and which shall be known as the "New Jersey Affordable Housing Trust Fund." The fund shall be a non-lapsing, revolving trust fund, and all monies deposited or received for purposes of the fund shall be accounted for separately, by source and amount, and remain in the fund until appropriated for such purposes. The fund shall be the repository of all State funds appropriated for affordable housing purposes, including, but not limited to, the proceeds from the receipts of the additional fee collected pursuant to paragraph (2) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7), proceeds from available receipts of the Statewide non-residential development fees collected pursuant to section 35 of P.L.2008, c.46 (C.40:55D-8.4), monies lapsing or reverting from municipal development trust funds, or other monies as may be dedicated, earmarked, or appropriated by the Legislature for the purposes of the fund. All references in any law, order, rule, regulation, contract, loan, document, or otherwise, to the "Neighborhood Preservation Nonlapsing Revolving Fund" shall mean the "New Jersey Affordable Housing Trust Fund." No less than 13 percent of the total expenditures in any State fiscal year from the New Jersey Affordable Housing Trust Fund shall be used for housing projects reserved for very low income households and special needs housing units. The department shall be permitted to utilize annually up to 7.5 percent of the monies available in the fund for the payment of any necessary administrative costs related to the administration of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), the State Housing Commission, or any costs related to administration of P.L.2008, c.46 (C.52:27D-329.1 et al.).

a. [Except as permitted pursuant to subsection g. of this section, and by section 41 of P.L.2009, c.90 (C.52:27D-320.1), the] The commissioner shall award grants or loans from this fund to non-profits and municipalities for housing projects and programs [in municipalities whose housing elements have received substantive certification from the council,] in municipalities receiving State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.), and in municipalities subject to a builder's remedy [as defined in section 28 of P.L.1985, c.222 (C.52:27D-328) or in receiving municipalities in cases where the council has approved a regional contribution agreement and a project plan developed by the receiving municipality.

Of those monies deposited into the "New Jersey Affordable Housing Trust Fund" that are derived from municipal development fee trust funds, or from available collections of Statewide non-residential development fees, a priority for funding shall be established for projects in municipalities that have petitioned the council for substantive certification]. The commissioner shall prioritize funding for projects that include special needs units when making grants and awards from the "New Jersey Affordable Housing Trust Fund."

Programs and projects in any municipality shall be funded only after receipt by the commissioner of a written statement in support of the program or project from the municipal governing body.

b. The commissioner shall establish rules and regulations governing the qualifications of applicants, the application procedures, and the criteria for awarding grants and loans and the standards for establishing the amount, terms and conditions of each grant or loan.

c. [For any period which the council may approve, the commissioner may assist affordable housing programs which are not located in municipalities whose housing elements have been granted substantive certification or which are not in furtherance of a regional contribution agreement; provided that the affordable housing program will meet all or part of a municipal low and moderate income housing obligation.] Deleted by amendment, P.L. , c. (C. ) (pending before the Legislature as this bill).

d. Amounts deposited in the "New Jersey Affordable Housing Trust Fund" shall be targeted to [regions based on the region's percentage of the State's low and moderate income housing need as determined by the council] assist projects in municipalities that are deemed compliant pursuant to section 21 of P.L. , c (C. ) (pending before the Legislature as this bill), and to assist projects in municipalities that are neither compliant nor deemed compliant pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). Amounts [in the fund] deposited in the "New Jersey Affordable Housing Trust Fund" shall be applied for the following purposes in designated neighborhoods:

(1) Rehabilitation of substandard housing units occupied or to be occupied by low and moderate income households;

(2) Creation of accessory apartments to be occupied by low and moderate income households;

(3) Conversion of non-residential space to residential purposes; provided at least 10 percent of the resulting housing units are to be occupied by low and moderate income households;

(4) Acquisition of real property, demolition and removal of buildings, or construction of new housing that will be occupied by low and moderate income households, or any combination thereof;

(5) Grants of assistance to eligible municipalities for costs of necessary studies, surveys, plans and permits; engineering, architectural and other technical services; costs of land acquisition and any buildings thereon; and costs of site preparation, demolition and infrastructure development for projects undertaken pursuant to an approved regional contribution agreement;

(6) Assistance to a local housing authority, nonprofit or limited dividend housing corporation or association or a qualified entity acting as a receiver under P.L.2003, c.295 (C.2A:42-114 et al.) for rehabilitation or restoration of housing units which it administers which: (a) are unusable or in a serious state of disrepair; (b) can be restored in an economically feasible and sound manner; and (c) can be retained in a safe, decent and sanitary manner, upon completion of rehabilitation or restoration; [and]

(7) Other housing programs for low and moderate income housing, including, without limitation, (a) infrastructure projects directly facilitating the construction of low and moderate income housing not to exceed a reasonable percentage of the construction costs of the low and moderate income housing to be provided and (b) alteration of dwelling units occupied or to be occupied by households of low or moderate income and the common areas of the premises in which they are located in order to make them accessible to handicapped persons; and

(8) Transfers authorized pursuant to this section to the "Urban Housing Assistance Fund" established by section 13 of P.L.2008, c.46 (C.52:27D-329.7) to provide assistance for rehabilitation and new construction through the Urban Housing Assistance Program pursuant to section 13 of P.L.2008, c.46 (C.52:27D-329.7).

e. Any grant or loan agreement entered into pursuant to this section shall incorporate contractual guarantees and procedures by which the division will ensure that any unit of housing provided for low and moderate income households shall continue to be occupied by low and moderate income households for at least 20 years following the award of the loan or grant, except that the division may approve a guarantee for a period of less than 20 years where necessary to ensure project feasibility.

f. Notwithstanding the provisions of any other law, rule or regulation to the contrary, in making grants or loans under this section, the department shall not require that tenants be certified as low or moderate income or that contractual guarantees or deed restrictions be in place to ensure continued low and moderate income occupancy as a condition of providing housing assistance from any program administered by the department, when that assistance is provided for a project of moderate rehabilitation if the project (1) contains 30 or fewer rental units and (2) is located in a census tract in which the median household income is 60 percent or less of the median income for the housing region in which the census tract is located, as determined for a three person household by the council in accordance with the latest federal decennial census. A list of eligible census tracts shall be maintained by the department and shall be adjusted upon publication of median income figures by census tract after each federal decennial census.

g. In addition to other grants or loans awarded pursuant to this section, and without regard to any limitations on such grants or loans for any other purposes herein imposed, the commissioner shall annually allocate such amounts as may be necessary in the commissioner's discretion, and in accordance with section 3 of P.L.2004, c.140 (C.52:27D-287.3), to fund rental assistance grants under the program created pursuant to P.L.2004, c.140 (C.52:27D-287.1 et al.). Such rental assistance grants shall be deemed necessary and authorized pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), in order to meet the housing needs of certain low income households who may not be eligible to occupy other housing produced pursuant to P.L.1985, c.222 (C.52:27D-301 et al.).

h. The department and the State Treasurer shall submit the "New Jersey Affordable Housing Trust Fund" for an audit annually by the State Auditor or State Comptroller, at the discretion of the Treasurer. In addition, the department shall prepare an annual report for each fiscal year, and submit it by November 30th of each year to the Governor and the Legislature, and the Joint Committee on Housing Affordability, or its successor, and post the information to its web site, of all activity of the fund, including details of the grants and loans by number of units, number and income ranges of recipients of grants or loans, location of the housing renovated or constructed using monies from the fund, the number of units upon which affordability controls were placed, and the length of those controls. The report also shall include details pertaining to those monies allocated from the fund for use by the State rental assistance program pursuant to section 3 of P.L.2004, c.140 (C.52:27D-287.3) and subsection g. of this section.

i. The commissioner may award or grant the amount of any appropriation deposited in the "New Jersey Affordable Housing Trust Fund" pursuant to section 41 of P.L.2009, c.90 (C.52:27D-320.1) to municipalities pursuant to the provisions of section 39 of P.L.2009, c.90 (C.40:55D-8.8).

j. Not less than 10 percent and not more than 25 percent of the amount of the additional fees collected pursuant to paragraph (2) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7) and deposited in the "New Jersey Affordable Housing Trust Fund" shall be transferred to the "Urban Housing Assistance Fund" in any State fiscal year.

(cf: P.L.2009, c.90, s.38)

16. Section 19 of P.L.2008, c.46 (C.52:27D-321.1) is amended to read as follows:

19. a. Notwithstanding any rules of the New Jersey Housing and Mortgage Finance Agency to the contrary, the allocation of low income tax credits shall be made by the agency to the full extent such credits are permitted to be allocated under federal law, including allocations of 4 percent or 9 percent federal low income tax credits, and including allocations allowable for partial credits. The affordable portion of any mixed income or mixed use development that is part of a [fair share] housing plan [approved by the council, or] including a development that has received a court-approved judgment of repose or compliance, including, but not limited to, a development that has received a density bonus, shall be permitted to receive allocations of low income tax credits, provided that the applicant can conclusively demonstrate that the market rate residential or commercial units are unable to internally subsidize the affordable units, and the affordable units are developed contemporaneously with the commercial or market rate residential units. In adopting the Qualified Allocation Plan pursuant to 26 U.S.C. s.42, and any rules promulgated thereunder, the Agency shall, in issuing the credits, prioritize applications from projects that include a special needs or very low income unit.

b. A housing unit financed in whole or in part through the allocation of federal Low-Income Housing Tax Credits shall be eligible to be counted as a qualified unit for purposes of determining whether a municipality is a compliant municipality pursuant to section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill) if the requirements of federal law pursuant
to 26U.S.C. s.42 have been met for that unit.

(cf: P.L.2008, c.46, s.19)

17. Section 13 of P.L.2008, c.46 (C.52:27D-329.7) is amended to read as follows:

13. a. There is established within the Department of Community Affairs an Urban Housing Assistance Program for the purposes of assisting certain municipalities in the provision of housing through the rehabilitation of existing buildings or the construction of affordable housing.

b. Within the program there shall be established a trust fund to be known as the "Urban Housing Assistance Fund," into which may be deposited:

(1) monies which may be available to the fund from any other programs established for the purposes of housing rehabilitation[, other than monies from the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320)];

(2) monies appropriated by the Legislature to the fund; and

(3) any other funds made available through State or federal housing programs for the purposes of producing affordable housing [, other than monies from the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320)].

c. The Commissioner of Community Affairs shall develop a strategic five-year plan for the program aimed at developing strategies to assist municipalities in creating rehabilitation programs and other programs to produce safe, decent housing within the municipality.

d. The commissioner may award a housing rehabilitation grant to a municipality that qualifies for aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.), or a non-profit corporation in a municipality that qualifies for such aid, and that has submitted a valid application to the Department of Community Affairs which details the manner in which the municipality will utilize funding in order to meet the municipality's need to rehabilitate or create safe, decent, and affordable housing.

e. The commissioner shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of P.L.2008, c.46 (C.52:27D-329.1 et al.); provided that the regulations shall permit a municipality broad discretion in shaping its housing rehabilitation and construction program, but shall not permit a municipality to provide assistance to any household having an income greater than 120 percent of median household income for the housing region. The department may require a return of a grant upon its determination that a municipality is not performing in accordance
with its grant or with the regulations.

(cf: P.L.2008, c.46, s.13)

18. Section 18 of P.L.2008, c.46 (C.52:27D-329.9) is amended to read as follows:

18. a. [Notwithstanding any rules of the council to the contrary, for developments consisting of newly-constructed residential units located, or to be located, within the jurisdiction of any regional planning entity required to adopt a master plan or comprehensive management plan pursuant to statutory law, including the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6), the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8), the Fort Monmouth Economic Revitalization Planning Authority pursuant to section 5 of P.L.2006, c.16 (C.52:27I-5), or its successor, and the Highlands Water Protection and Planning Council pursuant to section 11 of P.L.2004, c.120 (C.13:20-11), but excluding joint planning boards formed pursuant to section 64 of P.L.1975, c.291 (C.40:55D-77), there shall be required to be reserved for occupancy by low or moderate income households at least 20 percent of the residential units constructed, to the extent this is economically feasible.] (Deleted by amendment, P.L. , c. ).

b. A developer of a project consisting of newly-constructed residential units being financed in whole or in part with State funds, including, but not limited to, transit villages designated by the Department of Transportation, units constructed on State-owned property, and urban transit hubs as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208), shall be required to reserve at least [20] 10 percent of the residential units constructed [for occupancy by] as low or moderate income [households] housing, as those terms are defined in section [4 of P.L.1985, c.222 (C.52:27D-304)] 20 of P.L. , c. (C. ) (pending before the Legislature as this bill), with affordability controls as required under the rules of the [council, unless the municipality in which the property is located has received substantive certification from the council] department [and such a reservation is not required under the approved affordable housing plan, or the municipality has been given a judgment of repose or a judgment of compliance by the court, and such a reservation is not required under the approved affordable housing plan] pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

[c. (1) The Legislature recognizes that regional planning entities are appropriately positioned to take a broader role in the planning and provision of affordable housing based on regional planning considerations. In recognition of the value of sound regional planning, including the desire to foster economic growth, create a variety and choice of housing near public transportation, protect critical environmental resources, including farmland and open space preservation, and maximize the use of existing infrastructure, there is created a new program to foster regional planning entities.

(2) The regional planning entities identified in subsection a. of this section shall identify and coordinate regional affordable housing opportunities in cooperation with municipalities in areas with convenient access to infrastructure, employment opportunities, and public transportation. Coordination of affordable housing opportunities may include methods to regionally provide housing in line with regional concerns, such as transit needs or opportunities, environmental concerns, or such other factors as the council may permit; provided, however, that such provision by such a regional entity may not result in more than a 50 percent change in the fair share obligation of any municipality; provided that this limitation shall not apply to affordable housing units directly attributable to development by the New Jersey Sports and Exposition Authority within the New Jersey Meadowlands District.

(3) In addition to the entities identified in subsection a. of this section, the Casino Reinvestment Development Authority, in conjunction with the Atlantic County Planning Board, shall identify and coordinate regional affordable housing opportunities directly attributable to Atlantic City casino development, which may be provided anywhere within Atlantic County, subject to the restrictions of paragraph (4) of this subsection.

(4) The coordination of affordable housing opportunities by regional entities as identified in this section shall not include activities which would provide housing units to be located in those municipalities that are eligible to receive aid under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.), or are coextensive with a school district which qualified for designation as a "special needs district" pursuant to the "Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et al.), or at any time in the last 10 years has been qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.) and that fall within the jurisdiction of any of the regional entities specified in subsection a. of this section.] (Deleted by amendment, P.L. , c. ).

(cf: P.L.2008, c.46, s.18)

19. (New section) To determine whether property has access to sewer for purposes of determining whether the property is developable land as defined in section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill), any party may apply to the Department of Environmental Protection for a review or determination of site specific or project specific amendments or revisions to wastewater management plans and water quality management plans when a county or other wastewater management planning agency has not adopted or submitted a wastewater management plan in accordance with the schedule at N.J.A.C.7:15-5.23(a). The Department of Environmental Protection shall review and act upon the amendments or revisions within 90 days of receipt of a complete application for a determination or review.

20. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"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 (C.52:27D-119 et seq.) and in accordance with the provisions of section 5 of P.L.2005, c.350 (C.52:27D-123.15).

"Affordability control" means any deed restriction, covenant, or other legally binding provision requiring that a low or moderate income housing unit remains affordable to and restricted to occupancy by low or moderate income households, as the case may be, for a period of 30 years from the date of initial occupancy of the unit, or for the time period required pursuant to any regulation in force at the time of sale of the unit.

"Agency" means the New Jersey Housing and Mortgage Finance Agency established by P.L.1983, c.530 (C.55:14K-1 et seq.). "Attached housing" means any form of residential development other than detached single family housing, including, but not limited to, two-family housing, three-family housing, attached single family houses, multifamily apartments, and manufactured housing communities.

"Compliance threshold" means the percentage of a municipality’s housing stock that is required to be qualified housing units in order for the municipality to be deemed a compliant municipality.

"Conversion" means the conversion of existing commercial, industrial, or residential structures for low and moderate income housing purposes where at least 10 percent of the housing units are provided for a reasonable income range of low and moderate income households.

"Council" means the former Council on Affordable Housing established by section 5 of P.L.1985, c.222, and, following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Community Affairs, pursuant to pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Department" means the Department of Community Affairs established pursuant to section 1 of P.L.1966, 293 (C.52:27D-1).

"Development" means any development for which permission may be required pursuant to the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.).

"Developable land" means any lot or parcel, whether or not the parcel is vacant, or any part of a lot or parcel, having access to sewer service, or that has been determined by the Department of Environmental Protection, pursuant to section 19 of P.L. , c. (C. ) (pending before the Legislature as this bill), to be legally able to connect to service, having a slope of less than 15 percent, and that is not:

(1) land that is owned by a local government entity that as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), has adopted, prior to the institution of a lawsuit seeking a builder's remedy, a resolution authorizing an execution of agreement that the land be utilized for a public purpose other than housing;

(2) any land listed on a master plan of a municipality as being dedicated, by easement or otherwise, for purposes of conservation, park lands or open space and which is owned, leased, licensed, or in any manner operated by a county, municipality or tax-exempt, nonprofit organization including a local board of education, or by more than one municipality by joint agreement pursuant to the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-1 et seq.), for so long as the entity maintains such ownership, lease, license, or operational control of such land;

(3) any vacant contiguous parcels of land in private ownership of a size which would accommodate fewer than five housing units if the economic viability standards of the department were applied pertaining to housing density;

(4) historic and architecturally important sites listed on the State Register of Historic Places or National Register of Historic Places prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill);

(5) agricultural lands when the development rights to these lands have been purchased or restricted by covenant;

(6) sites designated for active recreation that are designated for recreational purposes in the municipal master plan; and

(7) environmentally sensitive lands where development is prohibited by any State or federal agency, including prohibitions pursuant to the "Freshwater Wetlands Protection Act," P.L.1987, c.156 (C.13:9B-1 et seq.), the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), the "Coastal Area Facility Review Act," P.L.1973, c.185 (C.13:19-1 et seq.), the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), the federal Clean Water Act, 33U.S.C. ss.1251 et seq., or the "Hackensack Meadowlands Reclamation and Development Act" P.L.1968, c.404 (C.13:17-1 et seq.).

Developable land shall include existing structures that are appropriate for conversion to or rehabilitation for housing, including, but not limited to, structures abandoned or underutilized.

"Housing region" means a geographic area of not less than two nor more than four contiguous, whole counties which exhibit significant social, economic and income similarities, and which constitute to the greatest extent practicable the primary metropolitan statistical areas as last defined by the United States Census Bureau prior to the effective date of P.L.1985, c.222 (C.52:27D-301 et al.).

"Low income housing" means housing affordable according to 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 50 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.

"Moderate income housing" means housing affordable according to 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 more than 50 percent but less than 80 percent of the median gross household income for households of the same size within the housing region in which the housing is located.

"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 impediment, deafness or hearing impediment, muteness or speech impediment or physical reliance on a service or guide dog, wheelchair, or other remedial appliance or device.

"Qualified housing units" means the sum of housing units that are very low income housing, low income housing, moderate income housing, mobile home units, public housing units, and units whose deeds contain sale, resale or transfer price restrictions because the units were financed by federal Low Income Housing Tax Credits, received project-based assistance under the program authorized pursuant to section 8 of the United States Housing Act of 1937 as added by the Housing and Community Development Act of 1974, Pub.L.93-383 (42U.S.C. s. 1437f), or received financing from funds received pursuant to a Regional Contribution Agreement; provided, that any qualified units shall be adaptable, as required by section 1 of P.L.2005, c.350 (C.52:27D-311a).

"Qualified low income housing units" means housing units that are affordable to and occupied by households earning no more than 50 percent of the median income for the region in which the municipality is located, as adjusted for family size, and which are subject to affordability controls.

"Qualified moderate income housing units" means housing that is affordable to and occupied by households earning no more than 80 percent of the median income for the region in which the municipality is located, as adjusted for family size, and which is subject to affordability controls.

"Qualified very low income housing units" means housing units that are affordable to and occupied by households earning no more than 30 percent of the median income for the region in which the municipality is located, as adjusted for family size, and which are subject to affordability controls.

"Rehabilitation project" means a "gut rehabilitation" 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, 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.

"Residential development project" means a new construction or any residential development project requiring a new certificate of occupancy, including, but not limited to any redevelopment, rehabilitation, infill development, or adaptive reuse of property. A "new residential development project" shall not mean any construction or reconstruction of a single-family dwelling that is occupied by, or intended to be occupied by, the owner.

"Supportive and special needs housing" means homes for persons with developmental disabilities and mental illness that are designed as permanent housing, and licensed or regulated by the New Jersey Department of Human Services; permanent supportive housing; and permanent supportive shared living housing. This term does not include housing restricted to occupancy by persons under 18 years of age.

"Very low income housing" means housing affordable according to 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.

21. (New section) a. A municipality shall meet its compliance threshold if it demonstrates that:

(1) 12 percent of its total current housing stock is qualified housing units; or

(2) at least 25, but less than 50, percent of the children enrolled in schools in the municipality in October of the preceding year were eligible for free or reduced price meals under the federal School Lunch Program.

b. For purposes of counting towards a compliance threshold determined pursuant to (1) in subsection a. of this section:

(1) at least 50 percent of the total number of qualified housing units in any municipality shall be qualified low income units; and

(2) no more than 25 percent of the total number of qualified low income housing units and qualified moderate income housing units in any municipality shall be age-restricted units as defined pursuant to section 2 of P.L.2009, c.82 (C.45:22A-46.4).

c. Each permanent supportive housing unit that receives a certificate of occupancy following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be counted as two units of qualified housing in the municipality in which the unit is located. Each new unit of housing for persons with developmental disabilities or mental illness, designed as permanent housing, and regulated by the New Jersey Department of Human Services, shall be counted as one and one-quarter unit of qualified housing in the municipality in which the unit is located. Each new bedroom in permanent supportive shared living housing created following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be counted as one and one-quarter unit of qualified housing in the municipality in which the unit is located. The total added additional units counted pursuant to this subsection shall not exceed 25 percent of the number of housing units affordable to low- and moderate-income people counted to determine that a municipality is a compliant municipality.

d. A municipality that is a compliant municipality pursuant to this section shall remain a compliant municipality as long as the requirements of this section are met, and the affordability controls on any required qualified housing units remain in effect. At the time the municipality files a resolution, pursuant to subsection e. of this section, the Department shall review affordability controls in effect for qualified units, where relevant, for compliance with the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill).

e. To demonstrate that it has met the compliance threshold, a municipal governing body shall adopt a resolution containing an analysis of data demonstrating that it met its threshold. Each municipality adopting a resolution pursuant to this section shall file the resolution and other relevant information with the Department in an electronic format.

f. Any municipality demonstrating that it has met the compliance threshold pursuant to this section shall submit an analysis calculating the number of existing substandard housing units in the municipality occupied by low and moderate income families, and a plan for rehabilitating at least those units within the next ten years.

g. The department shall make any ordinances or housing element filed by a municipality available on the website established pursuant to section 27 of P.L. , c. (C. ) (pending before the Legislature as this bill).

h. Upon receipt of a municipality's filing, the Commissioner of Community Affairs will undertake a review of the municipality’s filing, for the sole purpose of determining whether the filing accurately and completely represents the required composition of the municipal housing stock and ordinances in conformance with the requirements of this section.

22. (New section) a. Notwithstanding the provisions of section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill) a municipality may be deemed to be a compliant municipality if it adopts an ordinance providing that at least 20 percent of its developable property is zoned for use as housing affordable to, according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs, and occupied by, or reserved for occupancy by, households with a gross household income equal to or less than 150 percent of the median gross household income for households of the same size within the housing region in which the housing is located, and zoning permitting minimum presumptive densities as follows:

(1) Residential development resulting in single-family, detached homes must allow for such development at a minimum gross density of at least 4 dwelling units or greater per acre; and

(2) Residential development resulting in attached townhouses or multi-family must allow for such development at a minimum gross density of at least 8 dwelling units per acre.

When developable land in a municipality is subject to a federal or State law or regulation that permits development, but restrict the gross average density of a parcel or portion of a parcel to a density below that specified by this subsection, a municipality shall comply with this section by zoning for the greatest average density allowed by law.

b. As a prerequisite to being deemed compliant pursuant to this section, a municipality shall submit an analysis calculating the number of existing substandard housing units in the municipality occupied by low and moderate income families and a plan for rehabilitating at least those units within the next ten years.

c. Any municipality adopting an ordinance, a housing element, or a rehabilitation plan pursuant to this section shall file its zoning and development ordinances, housing element, or rehabilitation plan with the Department in an electronic format. The Department of Community Affairs shall make the filings available through the internet website established pursuant to section 27 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. Upon receipt of a municipality's filing, the Commissioner of Community Affairs will undertake a review of the municipality’s filing, for the sole purpose of determining whether the filing accurately and completely represents the required composition of the municipal housing stock and ordinances in conformance with the requirements of this section.

23. (New section) a. Any municipality in which 50 percent or more of the children enrolled in schools in the municipality in October of the preceding year were eligible for free or reduced price meals under the federal School Lunch Program shall be compliant pursuant to P.L. , c. (C. ) upon filing an analysis calculating the number of existing substandard housing units in the municipality occupied by low and moderate income families, and a plan for rehabilitating at least those units within the next ten years.

b. Nothing in this section shall be construed to prohibit a municipality from adopting an ordinance requiring that units proposed as part of a residential development project be set aside for low- or moderate-income households, or establishing an affordable housing trust fund and adopting corresponding fee ordinances, pursuant to paragraph (2) of subsection b. of section 25 of P.L. , c. (C. ) (pending before the Legislature as this bill) and section 8 of P.L.2008, c.46 (C.52:27D-329.2).

24. (New section) a. In a municipality that is not a compliant municipality pursuant to section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill), or deemed compliant pursuant to section 22 of P.L. , c. (C. ) (pending before the Legislature as this bill), a developer requesting a variance or other relief pursuant to subsection d. of section 57 of P.L.1975, c.291 (C.40:55D-70) for a proposed development, in which at least 10 percent of any dwelling units are set aside for housing affordable to low income and moderate income households, shall be required to make only a showing that the variance or other relief can be granted without substantial detriment to the public good and will not substantially impair the intent and the purpose of the zone plan and zoning ordinance.

b. The provisions of this section shall only apply to applications under the "Municipal Land Use Law," P.L.1975, c.210 (C.40:55D-1 et al.) concerning lots or parcels within a municipality's developable property.

25. (New section) a. Every municipality of the State, except municipalities described in section 23 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall require that no less than 10 percent of the residential housing units proposed as part of any new residential development project resulting in 10 or more units be reserved for occupancy as low income or moderate income housing.

b. (1) The municipality may waive, by resolution or ordinance of the governing body, the requirement of this section that an individual development include a set-aside of qualified units, provided that, at the time the municipality and developer enter into and execute any developer's agreement that proposes 10 or more units, the developer's agreement contains provisions identifying one or more activities that will result in creation of a number of new qualified housing units elsewhere in the municipality that is no less than the number that would have been required in the development pursuant to subsection a. of this section.

(2) The municipality may waive, by resolution or ordinance of the governing body, the requirement of this section that an individual development include a set-aside of qualified units, provided that any such resolution shall require that a developer proposing ten units or pays a development fee instead of actually constructing the affordable units. A developer of a project in a municipality that has met its compliance threshold pursuant to section 21 of P.L. , c (C. ) (pending before the Legislature as this bill) shall make a payment of two percent of the equalized assessed value of the development, and a developer in any other municipality makes a payment of three percent of the equalized assessed value of the development, into the municipal affordable housing trust fund as a precondition to issuance of a certificate of occupancy.

(3) The municipality may waive, by resolution or ordinance of the governing body, the requirement of this section that an individual development include a set-aside of qualified units, provided that, at the time the municipality and developer enter into and execute any developer's agreement that proposes 10 or more units, the developer's agreement contains provisions identifying one or more rehabilitation projects that will result in creation of a number of qualified housing units elsewhere in the municipality that is no less than the number that would have been required in the development pursuant to subsection a. of this section.

(4) The municipality shall modify zoning ordinances to authorize an increase in gross average density to facilitate the economic viability of any residential development to which this section applies.

c. For any new residential development project resulting in the production of fewer than 10 units, the developer shall pay a residential development fee of one and one-half percent of the equalized assessed value of the project at completion, or a municipality shall require that five percent of residential housing units proposed as part of that project be reserved for occupancy as low-income or moderate- income housing. For the purposes of this reservation, one special needs housing unit shall count as two housing units.

d. A municipality shall be permitted to give preference for occupancy for up to 25 percent of the low and moderate income units required to be provided pursuant to this section to those households that have at least one member who works or resides in the municipality.

e. The low and moderate income units required to be provided pursuant to this section shall be subject to affordability controls of not less than 30 years' duration.

f. Any residential development which has received final approval pursuant to section 38 of P.L.1975, c.291 (C.40:55D-50) on or before the effective date of P.L. , c. (pending before the Legislature as this bill) and proceeds based on those approvals without seeking a revised approval shall be exempt from any set-aside requirement created by P.L. , c. (pending before the Legislature as this bill) and the terms of the approval previously issued by the municipality shall govern the development.

g. A municipality shall not impose any additional financial or other obligation related to affordable housing on a developer that has complied with the provisions of this section.

26. (New section) The Department of Community Affairs, Department of Environmental Protection, and the Department Transportation shall promulgate regulations to provide that a municipality that has filed with the Department of Community Affairs as a compliant municipality, a municipality deemed compliant pursuant to section 22 of P.L. , c. (C. ) (pending before the Legislature as this bill), or a municipality described by section 23 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall receive preference with respect to discretionary grant programs administered by those departments for which municipal governments are eligible, and shall prioritize and expedite applications from developments included in a housing element prepared and filed pursuant to P.L. , c (C. ) (pending before the Legislature as this bill).

27. (New section) a. The Department shall design, establish, and maintain a searchable Internet website accessible to the general public for no charge. This website shall contain data and information concerning affordable housing in each municipality of the State. The Department may consult with the Division of Information Technology in the Department of the Treasury in order to develop the Internet website.

b. At least the following information about each municipality shall be made available on the website:

(1) the total number of additional housing units created and the number lost through demolition or other causes since the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) in the municipality;

(2) the number of additional housing units created in the municipality that are qualified very low income, low income or moderate income housing and an itemized listing of these units, whether they are restricted to seniors or people with special needs, and the income levels served;

(3) the number of previously existing qualified very low income, low income or qualified moderate income housing units which have been demolished or are no longer subject to affordability controls;

(4) the amount of development fees collected and uses for these fees as required pursuant to P.L.2008, c.46 (C.52:27D-329.1 et al.) and P.L. , c. (pending before the legislature as this bill); and

(5) Housing elements and amendments to municipal housing elements required to be posted pursuant to P.L. , c. (pending before the Legislature as this bill).

c. Each municipality shall annually report the information described in subsection b. of this section to the Department. The Department shall ensure that the information is available to the public on the website within seven business days of receipt. To facilitate this process, the Department may choose to create a system in which municipalities may directly enter this information in the internet website established pursuant to this section.

28. (New section) a. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall require a municipality to raise or expend municipal revenues in order to provide a realistic opportunity for low and moderate income housing.

b. Notwithstanding any law or rule to the contrary, a municipality shall not alter the zoning classification of any development site during the period that the site is subject to a judgment of repose, or was, by court order, mediation settlement, or settlement in exclusionary zoning litigation, designated or reserved for purposes of affordable housing.

c. Except as provided in subsection b., for any litigation involving exclusionary zoning instituted prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), jurisdiction may remain with the court, which shall take judicial notice of the statutory intent stated hereunder.

29. Section 34 of P.L.2008, c.46 (C.40:55D-8.3) is amended to read as follows:

34. As used in sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7):

"Construction" means new construction and additions, but does not include alterations, reconstruction, renovations, and repairs as those terms are defined under the State Uniform Construction Code promulgated pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.).

"Commissioner" means the Commissioner of Community Affairs.

["Council" means the Council on Affordable Housing, established pursuant to P.L.1985, c.222 (C.52:27D-301 et al.).]

"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.

"Equalized assessed value" 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 of P.L.1973, c.123 (C.54:1-35a through C.54:1-35c).

"Mixed use development" means any development which includes both a non-residential development component and a residential development component, and shall include developments for which (1) there is a common developer for both the residential development component and the non-residential development component, provided that for purposes of this definition, multiple persons and entities may be 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 non-residential development, or both, or otherwise to contribute resources to the development; and (2) the residential and non-residential 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.

"Non-residential development" means: (1) 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 promulgated to effectuate the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), including any subsequent amendments or revisions thereto; (2) hotels, motels, vacation timeshares, and child-care facilities; and (3) 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," P.L.1986, c.103 (C.52:27D-330 et seq.).

"Non-residential development fee" means the fee authorized to be imposed pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7).

"Relating to the provision of housing" shall be liberally construed to include the construction, maintenance, or operation of housing, including but not limited to the provision of services to such housing and the funding of any of the above.

"Spending plan" means a method of allocating funds collected and to be collected pursuant to an approved municipal development fee ordinance, or pursuant to P.L.2008, c.46 (C.52:27D-329.1 et al.) for the purpose of meeting the housing needs of low and moderate income individuals.

"Treasurer" means the Treasurer of the State of New Jersey.

(cf: P.L.2008 c.46, s.34)

30. Section 35 of P.L.2008, c.46 (C.40:55D-8.4) is amended to read as follows:

35. a. Beginning on the effective date of P.L.2008, c.46 (C.52:27D-329.1 et al.), a fee is imposed on all construction resulting in non-residential development, as follows:

(1) A fee equal to two and one-half percent of the equalized assessed value of the land and improvements, for all new non-residential construction on an unimproved lot or lots; or

(2) A fee equal to two and one-half percent of the increase in equalized assessed value, of the additions to existing structures to be used for non-residential purposes[.]; provided, that the fee shall be imposed as described in this section and phased in pursuant to section 33 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. All non-residential construction of buildings or structures on property used by churches, synagogues, mosques, and other houses of worship, and property used for educational purposes, which is tax-exempt pursuant to R.S.54:4-3.6, shall be exempt from the imposition of a non-residential development fee pursuant to this section, provided that the property continues to maintain its tax exempt status under that statute for a period of at least three years from the date of issuance of the certificate of occupancy. In addition, the following shall be exempt from the imposition of a non-residential development fee:

(1) parking lots and parking structures, regardless of whether the parking lot or parking structure is constructed in conjunction with a non-residential development, such as an office building, or whether the parking lot is developed as an independent non-residential development;

(2) any non-residential development which is an amenity to be made available to the public, including, but not limited to, recreational facilities, community centers, and senior centers, which are developed in conjunction with or funded by a non-residential developer;

(3) non-residential construction resulting from a relocation of or an on-site improvement to a nonprofit hospital or a nursing home facility;

(4) projects that are located within a specifically delineated urban transit hub, as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208);

(5) projects that are located within an eligible municipality, as defined under section 2 of P.L.2007, c.346 (C.34:1B-208), when a majority of the project is located within a one-half mile radius of the midpoint of a platform area for a light rail system; [and]

(6) projects determined by the New Jersey Transit Corporation to be consistent with a transit village plan developed by a transit village designated by the Department of Transportation.

A [developer of a] non-residential development exempted from the non-residential development fee pursuant to this section shall be subject to [it] the fee at such time the basis for the exemption set forth in this subsection no longer applies, and the owner of the property at that time shall make the payment of the non-residential development fee[, in that event,] within three years after that event or after the issuance of the final certificate of occupancy of the non-residential development, whichever is later.

For purposes of this subsection, "recreational facilities and community center" means any indoor or outdoor buildings, spaces, structures, or improvements intended for active or passive recreation, including but not limited to ball fields, meeting halls, and classrooms, accommodating either organized or informal activity; and "senior center" means any recreational facility or community center with activities and services oriented towards serving senior citizens.

If a property which was exempted from the collection of a non-residential development fee thereafter ceases to be exempt from property taxation, the owner of the property shall remit the fees required pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid non-residential development fees under these circumstances may be enforceable by the municipality as a lien against the real property of the owner.

c. [(1) Unless authorized to pay directly to the municipality in which the non-residential construction is occurring in accordance with paragraph (2) of this subsection, developers shall pay non-residential development fees imposed pursuant to P.L.2008, c.46 (C.52:27D-329.1 et al.) to the Treasurer, in accordance with subsection g. of this section in a manner and on such forms as required by the Treasurer, provided that a certified proof concerning the payment shall be furnished by the Treasurer, to the municipality.

(2) The council shall maintain on its website a list of each municipality that is authorized to use the development fees collected pursuant to this section and that has a confirmed status of compliance with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), which compliance shall include a spending plan authorized by the council for all development fees collected.] (Deleted by amendment, P.L. , c. (C. ).)

d. The payment of non-residential development fees required pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7) shall be made prior to the issuance of a certificate of occupancy for such development. A final certificate of occupancy shall not be issued for any non-residential development until such time as the fee imposed pursuant to this section has been paid by the developer. A non-residential developer may deposit with the appropriate entity the development fees as calculated by the municipality under protest, and the local code enforcement official shall thereafter issue the certificate of occupancy provided that the construction is otherwise eligible for a certificate of occupancy.

e. The construction official responsible for the issuance of a building permit shall notify the local tax assessor of the issuance of the first building permit for a development which may be subject to a non-residential development fee. Within 90 days of receipt of that notice, the municipal tax assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the non-residential development. The construction official responsible for the issuance of a final certificate of occupancy shall notify the local assessor of any and all requests for the scheduling of a final inspection on property which may be subject to a non-residential development fee. Within 10 business days of a request for the scheduling of a final inspection, the municipal assessor shall confirm or modify the previously estimated equalized assessed value of the improvements of the non-residential development in accordance with the regulations adopted by the Treasurer pursuant to P.L.1971, c.424 (C.54:1-35.35); calculate the non-residential development fee pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7); and thereafter notify the developer of the amount of the non-residential development fee. Should the municipality fail to determine or notify the developer of the amount of the non-residential development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in subsection b. of section 37 of P.L.2008, c.46 (C.40:55D-8.6). Upon tender of the estimated non-residential development fee, provided the developer is in full compliance with all other applicable laws, the municipality shall issue a final certificate of occupancy for the subject property. Failure of the municipality to comply with the timeframes or procedures set forth in this subsection may subject it to penalties to be imposed by the commissioner; any penalties so imposed shall be deposited into the "New Jersey Affordable Housing Trust Fund" established pursuant to section 20 of P.L.1985, c.222 as amended by section 17 of P.L.2008, c.46 (C.52:27D-320).

A developer of a mixed use development shall be required to pay the Statewide non-residential development fee relating to the non-residential development component of a mixed use development subject to the provisions of P.L.2008, c.46 (C.52:27D-329.1 et al.).

Non-residential construction which is connected with the relocation of the facilities of a for-profit hospital shall be subject to the fee authorized to be imposed under this section to the extent of the increase in equalized assessed valuation in accordance with regulations to be promulgated by the Director of the Division of Taxation, Department of the Treasury.

f. Any municipality that is not in compliance with the requirements established pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7), or regulations of the [council] department adopted thereto, may be subject to forfeiture of any or all funds remaining within its municipal development trust fund. Any funds so forfeited shall be deposited into the New Jersey Affordable Housing Trust Fund established pursuant to section 20 of P.L.1985, c.222 as amended by section 17 of P.L.2008, c.46 (C.52:27D-320).

g. [The Treasurer shall credit to the "Urban Housing Assistance Fund," established pursuant to section 13 of P.L.2008, c.46 (C.52:27D-329.7) annually from the receipts of the fees authorized to be imposed pursuant to this section an amount equal to $20 million; all receipts in excess of this amount shall be deposited into the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 as amended by section 17 of P.L.2008, c.46 (C.52:27D-320), to be used for the purposes of that fund.] Deleted by amendment, P.L. , c. (C. ) (pending before the Legislature as this bill).

h. The fee imposed pursuant to the "Statewide Non-Residential Development Fee Act," sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7), shall be collected by the municipality in which the non-residential development is located, pursuant to this section. Each amount collected shall be deposited and shall be accounted for separately, by payer and date of deposit. A municipality shall deposit 80 percent of all non-residential development fees collected into a trust fund dedicated to those purposes as set forth in section 34 of P.L. , c. (C. ) (pending before the Legislature as this bill). The remaining 20 percent shall be transferred to the State Treasurer for deposit into the Urban Housing Assistance Fund pursuant to Section 13 of P.L. 2008, c. 46 (C.52:27D-329.7).

The Treasurer shall adopt such regulations as necessary to effectuate sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7), in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf: P.L.2008, c.46, s.35)

31. (New section) Beginning July 1, 2010, the fee imposed on all construction resulting in non-residential development pursuant to section 35 of P.L.2008, c.46 (C.40:55D-8.4) shall be phased in as follows:

a. No fee shall be imposed on projects receiving a construction permit in the two years next following the enactment date of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. For projects receiving construction permits in the third year next following the enactment date of P.L. c. (C. ) (pending before the Legislature as this bill), a fee equal to one percent of the equalized assessed value of the land and improvements shall be imposed on all new non-residential construction on an unimproved lot or lots; and a fee equal to one percent of the increase in equalized assessed value shall be imposed on additions to existing structures to be used for non-residential purposes.

c. For projects receiving construction permits in the fourth year next following the enactment date of P.L. c. (C. ) (pending before the Legislature as this bill) a fee equal to two percent of the equalized assessed value of the land and improvements shall be imposed on all new non-residential construction on an unimproved lot or lots; and a fee equal to two percent of the increase in equalized assessed value shall be imposed on additions to existing structures to be used for non-residential purposes.

d. For projects receiving construction permits in the fifth year next following the enactment date of P.L. c. (C. ) (pending before the Legislature as this bill) and later, a fee equal to two and one half percent of the equalized assessed value of the land and improvements shall be imposed on all new non-residential construction on an unimproved lot or lots; and a fee equal to two and one half percent of the increase in equalized assessed value shall be imposed on additions to existing structures to be used for non-residential purposes.

32. Section 36 of P.L.2008, c.46 (C.40:55D-8.5) is amended to read as follows:

36. a. The commissioner, in consultation with the [council] Treasurer, shall promulgate, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), [such] regulations [as are necessary for the prompt and effective implementation of the provisions and purposes of P.L.2008, c.46 (C.52:27D-329.1 et al.),] concerning non-residential development fees including, but not limited to, provisions for the payment of any necessary administrative costs related to the assessment of properties and collection of any development fees by a municipality.

b. [Notwithstanding the authority granted to the commissioner herein, the council] The commissioner shall adopt and promulgate, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such regulations as are necessary for the effectuation of P.L.2008, c.46 (C.52:27D-329.1 et al.), including but not limited to, regulations necessary for the establishment, implementation, review, monitoring, and enforcement of a municipal affordable housing trust fund and
spending plan.

(cf: P.L.2008, c.46, s.36)

33. Section 38 of P.L.2008, c.46 (C.40:55D-8.7) is amended to read as follows:

38. a. Except as expressly provided in P.L.2008, c.46 (C.52:27D-329.1 et al.) including subsection b. of this section, any provision of a local ordinance which imposes a fee for the development of affordable housing upon a developer of non-residential property, including any and all development fee ordinances adopted in accordance with any regulations of the [Council on Affordable Housing] commissioner, or any provision of an ordinance which imposes an obligation relating to the provision of housing affordable to low and moderate income households, or payment in-lieu of building as a condition of non-residential development, shall be void and of no effect. A provision of an ordinance which imposes a development fee which is not prohibited by any provision of P.L.2008, c.46 (C.52:27D-329.1 et al.) shall not be invalidated by this section.

b. No affordable housing obligation shall be imposed concerning a mixed use development that would result in an affordable housing obligation greater than that which would have been imposed if the residential portion of the mixed use development had been developed independently of the non-residential portion of the mixed use development.

c. Whenever the developer of a non-residential development regulated under P.L.1977, c.110 (C.5:12-1 et seq.) has made or committed itself to make a financial or other contribution relating to the provision of housing affordable to low and moderate income households, the non-residential development fee authorized pursuant to P.L.2008, c.46 (C.52:27D-329.1 et al.) shall be satisfied through the investment obligations made pursuant to P.L.1977, c.110 (C.5:12-1 et seq.).

(cf: P.L.2008, c.46, s.38)

34. Section 8 of P.L.2008, c.46 (C.52:27D-329.2) is amended to read as follows:

8. a. [The council may authorize a municipality that has petitioned for substantive certification, or that has been so authorized by a court of competent jurisdiction, and which that has adopted a municipal development fee] A municipality may adopt an ordinance to impose and collect [development] fees from developers of residential property, in accordance with paragraph (2) of subsection b. of section 25 of P.L. , c. (C. ) and rules promulgated by the [council] department. Each amount collected shall be deposited and shall be accounted for separately, by payer and date of deposit.

[A municipality may not spend or commit to spend any affordable housing development fees, including Statewide non-residential fees collected and deposited into the municipal affordable housing trust fund, without first obtaining the council's approval of the expenditure. The council shall promulgate regulations regarding the establishment, administration and enforcement of the expenditure of affordable housing development fees by municipalities. The council shall have exclusive jurisdiction regarding the enforcement of these regulations, provided that any] Any municipality which is not in compliance with the regulations adopted by the [council] department may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds so forfeited shall be deposited into the "New Jersey Affordable Housing Trust Fund" established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320).

b. A municipality shall deposit all fees collected, whether or not such collections were derived from fees imposed upon non-residential or residential construction into a trust fund dedicated to those purposes as required under this section, and such additional purposes as may be approved by the [council] department.

c. (1) A municipality may only spend development fees for an activity approved by the [council] department to address the municipal [fair share] affordable housing obligation.

(2) Municipal development trust funds shall not be expended to reimburse municipalities for activities which occurred prior to the authorization of a municipality to collect development fees.

(3) A municipality shall set aside a portion of its development fee trust fund for the purpose of providing affordability assistance to low and moderate income households in affordable units [included in a municipal fair share plan, in accordance with rules of the council].

(a) Affordability assistance programs may include down payment assistance, security deposit assistance, low interest loans, common maintenance expenses for units located in condominiums, rental assistance, and any other program authorized by the [council] department.

(b) Affordability assistance to households earning 30 percent or less of median income may include buying down the cost of low income units [in a municipal fair share plan] to make them affordable to households earning 30 percent or less of median income. The use of development fees in this manner shall not entitle a municipality to bonus credits except as may be provided by the rules of the [council] department.

(4) A municipality may contract with a private or public entity to administer any part of its housing element and [fair share] affordable housing plan, including the requirement for affordability assistance, or any program or activity for which the municipality expends development fee proceeds, in accordance with rules of the [council] department.

(5) Not more than 20 percent of the revenues collected from development fees shall be expended on administration, in accordance with rules of the [council] department.

d. The [council] department shall establish a time by which all development fees collected within a calendar year shall be expended; provided, however, that all fees shall be committed for expenditure within four years from the date of collection. A municipality that fails to commit to expend the balance required in the development fee trust fund by the time set forth in this section shall be required by the [council] department to transfer the remaining unspent balance at the end of the four-year period to the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), as amended by P.L.2008, c.46 (C.52:27D-329.1 et al.), to be used in the [housing region of the] transferring municipality for the authorized purposes of that fund.

e. Notwithstanding any provision of this section, or regulations of the [council] department, a municipality shall not collect a development fee from a developer whenever that developer is providing for the construction of affordable units, either on-site or elsewhere within the municipality.

[This section shall not apply to the collection of a Statewide development fee imposed upon non-residential development pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 et seq.) by the State Treasurer, when such collection is not authorized to be retained by a municipality.]

(cf: P.L.2008, c.46, s.8)

35. (New section) It shall be the duty of the Department of Community Affairs to administer the "Fair Housing Act," P.L.1985, c.222 (C:52:27D-301 et al.) and to assist municipalities in implementing the provisions of the act. When appropriate, the Commissioner Pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Department of Community Affairs may promulgate any rules and regulations necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), including:

a. Guidelines or model language for covenants or other devices to maintain the affordability of affordable units developed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);

b. Affirmative marketing requirements for affordable units, whether or not developed pursuant to section 25 of P.L. , c. (C. ) (pending before the Legislature as this bill);

c. Guidelines concerning the crediting and counting of qualified units;

d. Guidelines concerning the application of covenants or other affordability controls for affordable units; and

e. Guidelines for zoning to assure the economic viability of a project.

36. (New section) The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be severable, and if any of its provisions shall be held to be unconstitutional, the decision of the court shall not affect the validity of the remaining provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

37. The following sections are repealed:

Section 14 of P.L.2009, c.82 (C.45:22A-46.16);

Section 5 of P.L.1985 c.222 (C.52:27D-304);

Section 5 of P.L.1985 c.222 (C.52:27D-305);

Section 6 of P.L.1985, c.222 (C.52:27D-306);

Section 7 of P.L.1985, c.222 (C.52:27D-307);

Section 6 of P.L.2001, c.435 (C.52:27D-307.6);

Section 8 of P.L.1985, c.222 (C.52:27D-308);

Section 9 of P.L.1985, c.222 (C.52:27D-309);

Section 10 of P.L.1985, c.222 (C.52:27D-310);

Section 1 of P.L.1995, c.231 (C.52:27D-310.1);

Section 2 of P.L.1995, c.231 (C.52:27D-310.2);

Section 11 of P.L.1985, c.222 (C.52:27D-311);

Section 40 of P.L.2009, c.90 (C. 52:27D-311.3);

Section 13 of P.L.1985 c.222 (C.52:27D-313);

Section 2 of P.L.1989, c.142 (C.52:27D-313.1);

Section 14 of P.L.1985 c.222 (C.52:27D-314);

Section 15 of P.L.1985 c.222 (C.52:27D-315);

Section 16 of P.L.1985, c.222 (C.52:27D-316);

Section 17 of P.L.1985, c.222 (C.52:27D-317);

Section 18 of P.L.1985, c.222 (C.52:27D-318);

Section 19 of P.L.1985 c.222 (C.52:27D-319);

Section 22 of P.L.1985, c.222 (C.52:27D-322);

Section 28 of P.L.1985, c.222 (C.52:27D-328);

Section 7 of P.L.2008, c.46 (C.52:27D-329.1);

Section 9 of P.L.2008, c.46 (C.52:27D-329.3);

Section 12 of P.L.2008, c.46 (C.52:27D-329.6);

Section 14 of P.L.2008, c.46 (C.52:27D-329.8);

Section 21 of P.L.2008, c.46 (C.52:27D-329.10);

Section 22 of P.L.2008, c.46 (C.52:27D-329.11);

Section 23 of P.L.2008, c.46 (C.52:27D-329.12);

Section 24 of P.L.2008, c.46 (C.52:27D-329.13);

Section 25 of P.L.2008, c.46 (C.52:27D-329.14);

Section 26 of P.L.2008, c.46 (C.52:27D-329.15);

Section 27 of P.L.2008, c.46 (C.52:27D-329.16)

Section 28 of P.L.2008, c.46 (C.52:27D-329.17)

Section 29 of P.L.2008, c.46 (C.52:27D-329.18); and

Section 30 of P.L.2008, c.46 (C.52:27D-329.19).

38. This act shall take effect on the first day of the fourth month next following enactment.

STATEMENT

This bill would modify the “Fair Housing Act,” P.L.1985, c.222, and other laws related to affordable housing development in New Jersey. If enacted, this legislation would abolish the Council on Affordable Housing and would permit municipalities to control planning for affordable housing within their boundaries while ensuring that municipalities “make realistically possible an appropriate variety and choice of housing” Mt. Laurel I, 67 N.J. 168, 174 (1973). This legislation also modifies the "Statewide Non-Residential Development Fee Act," N.J.S.A.40:55D-8.1 et seq., and provides for transfers from the "New Jersey Affordable Housing Trust Fund" to the "Urban Housing Assistance Fund" established by P.L.2008, c.46.

The bill abolishes the Council on Affordable Housing established by the 1985 "Fair Housing Act." The bill transfers the Council's remaining duties to the Department of Community Affairs. Municipalities would meet their affordable housing obligations by achieving and maintaining 12 percent of their housing stock as long term affordable low and moderate income housing stock. Deed-restricted housing produced pursuant to a Regional Contribution Agreement or with federal project-based assistance, as well as public housing and mobile homes would count towards the computation of a municipality's affordable housing stock. If a municipality does not demonstrate that 12 percent of its housing stock is affordable, the municipality may show that it has complied with the law by filing an analysis demonstrating that at least 25, but less than 50, percent of the children enrolled in schools in the municipality in October of the preceding year were eligible for free or reduced price meals under the federal School Lunch Program.

In addition, a municipality may show that it has complied with the legislation by adopting land use ordinances that set aside one-fifth of the developable land within the municipality as housing affordable to families making 150 percent of the area median income or less. In order to ensure that there is a realistic possibility for residential development, the bill defines developable land as property that has or will have access to sewer service.

Under this legislation, all municipalities are required to plan for the rehabilitation of substandard units within their boundaries. Municipalities in which more than half of the children qualify for federal free or reduced-price lunch would only be required to show how they are addressing dilapidated and substandard units within their boundaries.

Section 24 of this bill provides for an expedited variance procedure in municipalities that refuse to comply with the law. In a non-complying municipality, projects including 10 percent affordable units will be deemed to be an inherently beneficial use. These projects will need to prove only the "negative" criteria of the standard for a variance under the "Municipal Land Use Law," N.J.S.A.40:55D-1 et seq. The variance procedure would be available for any project in which 10 percent or more of the proposed units will be affordable housing, including mixed-use projects, conventional residential developments and 100 percent affordable developments.

The bill also provides for inclusionary zoning throughout the State. Any new residential development, whether or not the development is new construction, that results in 10 or more units would be required to reserve 10 percent of the units produced for affordable housing. This bill requires municipalities to provide density bonuses, a compensatory benefit, to developers who develop mixed income projects to ensure the economic viability of the development. This legislation also preserves the payment of residential development fees to address affordable housing need as an alternative to on-site building by developers, consistent with the Supreme Court's endorsement of the use of fees as a "more flexible and comprehensive approach that will encourage the appropriate use and development of land within a municipality...." Holmdel Builders' Assoc. v. Twp. of Holmdel, 121 N.J. 550 at 570 (1990). In addition, the legislation authorizes a municipality to waive on-site construction of affordable units if a developer specifies that the developer will rehabilitate or construct new units off site instead of providing of affordable units on site.

This set-aside requirement would not apply in municipalities in which 50 percent or more of the students are eligible for free or reduced-price meals, although the bill creates incentives and makes financing available for affordable units in these municipalities.

The bill would also maintain the provisions in the existing "Fair Housing Act" that require affordable units to be adaptable. In addition, the legislation provides regulatory incentives to encourage development of special needs housing and permanent supportive housing.

The legislation also modifies the "Statewide Non-Residential Development Fee Act," N.J.S.A.40:55D-8.1 et seq., to provide for a phase-in of the fee, in order to ensure that the fee is not an obstacle to development in the current economic climate. The amendments to the Fee Act would phase in the Statewide fee over five years. By retaining the "Statewide Non-Residential Development Fee Act," this bill retains the important link between development activities generating a need for lower-income housing and the financing of that housing.

Because the modifications to the "Statewide Non-Residential Development Fee" would reduce collections deposited in the "Urban Housing Assistance Fund," this bill authorizes transfers from the "New Jersey Affordable Housing Trust Fund" to the "Urban Housing Assistance Fund." No less than 10 percent, and up to 25 percent of the monies in the Trust Fund could be transferred to the Urban Fund.

Also, this legislation retains N.J.S.A.52:27D-329.2, which authorizes residential development fees and provides that these fees, along with the Statewide Non-Residential Development Fee, shall be deposited in a municipal affordable housing trust fund. Pursuant to this bill, fees collected could only be expended for affordable housing purposes, and must be expended within four years of collection.

Under the bill, the Department of Community Affairs will be required to establish an online, searchable website containing housing information. The Department will be required to post all municipal housing planning information that it receives on the website.