[Added 10-19-2022 by Ord. No. 22-2059]
A. 
Purpose. This section is intended to ensure that any site that benefits from a rezoning, variance or redevelopment plan approved by the Borough or the Borough Planning/Zoning Board that results in multifamily residential development of five dwelling units or more produces affordable housing at a set-aside rate of at least 15% for multifamily rental projects and at least 20% for all other multifamily projects. This section shall apply except where inconsistent with applicable law. This section shall not apply to existing affordable housing inclusionary zones, which predate the effective date of this section.
B. 
Affordable housing mandatory set-aside requirement.
(1) 
If the Borough or the Borough Planning Board/Zoning Board permits the construction of multifamily or single-family attached residential development that is "approvable" and "developable," as defined at N.J.A.C. 5:93-1.3,[1] the Borough or the Borough's Planning Board/Zoning Board shall require that an appropriate percentage of the residential units be set aside for low- and moderate-income households. This requirement shall apply beginning with the effective date the ordinance creating this section was adopted to any multifamily or single-family attached residential development, including the residential portion of a mixed-use project, which consists of five or more new residential units, whether permitted by a zoning amendment, a variance granted by the Borough's Planning Board or Zoning Board. For any such development for which the Borough's land use ordinances already permitted residential development as of the effective date of the ordinance creating this section was adopted, this requirement shall only apply if the Borough or the Borough's Planning Board or Zoning Board permits an increase in approvable and developable gross residential density to at least twice the permitted approvable and developable gross residential density as of the effective date the ordinance creating this section was adopted. Nothing in this subsection precludes the Borough or the Borough's Planning Board or Zoning Board from imposing an affordable housing set-aside in a development not required to have a set-aside pursuant to this subsection consistent with N.J.S.A. 52:27D-311(h) and other applicable law. For all inclusionary projects, the appropriate set-aside percentage will be at least 15% for multifamily rental projects and at least 20% for all other multifamily projects. This requirement does not create any entitlement for a property owner or applicant for a zoning amendment or variance, or for approval of any particular proposed project. This requirement does not apply to any sites or specific zones otherwise identified in the Borough's Settlement Agreement with FSHC, which was executed on December 22, 2017, or in the Borough's Adopted Housing Element and Fair Share Plan dated December 18, 2018, for which density and set-aside standards shall be governed by the specific standards set forth therein.
[1]
Editor's Note: N.J.A.C. 5:93-1.1 et seq., entitled "Substantive Rules of the New Jersey Council on Affordable Housing for the Period Beginning on June 6, 1994," which included the regulations cited in this subsection, expired 10-16-2016.
(2) 
Furthermore, this section shall not apply to developments containing four or less dwelling units. All subdivision and site plan approvals of qualifying residential developments shall be conditioned upon compliance with the provisions of this section. Where a developer demolishes existing dwelling units and builds new dwelling units on the same site, the provisions of this section shall apply only if the number of net new dwelling units is five or more.
(3) 
All affordable units produced as a result of this section shall comply with the Borough's Affordable Housing Ordinance, COAH and UHAC regulations and applicable laws, including, but not limited to, bedroom and income distributions and income distribution requirements within each bedroom category. This obligation also includes compliance with the Fair Housing Act's ("FHA") very-low-income requirements, including the requirement for at least 13% very-low-income units as defined by the FHA (households earning no more than 30% of the region's median income).
C. 
Redevelopment projects. The Borough may, if it determines appropriate, require affordable housing in redevelopment projects that deviates from the requirements of Subsections A and B. Such requirement shall be included in applicable redevelopment agreements, provided that such requirements must comply with the Borough's Settlement Agreement with FSHC, which was executed on December 22, 2017, and the Borough's Adopted Housing Element and Fair Share Plan dated December 18, 2018.