Planning Board Resolution Memorializing the HEFSP #20-08

LIST OF TABLES Table 1 Age of Housing Units........... 2 Persons Per ROOM........eseeseeceteereeeesereeeee " 4 3 Plumbing Facilities ..........ssssssssscssssesseseeneteeceessneessesseessecssnseeeeecansassenneanaaescenanas 4 4 Kitchen Facilities 5 Owner-Occupied Housing Unit Values ........--ssssssesssssessesseesseecssneecesnenennssees 5 6 Contract Remt Values .......secssesssesssesssessseesseseneesseesnnessnesenecsssecsnessnsenssesencennenactess 6 7 Tenure and Vacancy ......secsscsssssssssessesseeseesesareansssesseesecsnesacenseneaeenssancensenseneeane 7 8 2019 Low and Moderate Regional Incomes ........2-2+------ceecsessessesseesessennennenneene 8 9 Population 10 Population Characteristics 11 Household Profile 2010 .......cssssssesssssserteeesssssesseessseessseeeseeneenseee 12 Household Type and Relationship .........-.:1:sssssssseecccsnssseneeeennerses 11 13 Type of Housing Units by Structure............. 11 14 Household Income ......-.--.-:-esseseesesesseeereeeees 12 15 Sex by Marital Status - Persons 15 Years and Over 17 Status of Covered Employment within West Orange-2014..

WEST ORANGE TOWNSHIP ESSEX COUNTY HOUSING ELEMENT PREFACE West Orange Township is situated in the central portion of Essex County and contains approximately 12.15 square miles or 7,776 acres of land. West Orange is crossed east-west by Interstate Route 280 which provides travelers with easy access to the Garden State Parkway and the New Jersey Turnpike. Thomas Alva Edison became a resident of West Orange in 1886. In the early 1900s, Edison Industries concentrated on developments in phonograph, film, storage batteries and visual devices. West Orange was the location of the first motion picture, the Great Train Robbery, in 1903. Seventeen hundred films were produced in the area prior to 1930. Edison Industries continued to be a drawing force until 1929 when the great depression caused the market for phonographs and records to fall sharply. _ Edison retired as head of Thomas A. Edison Incorporated in 1930 and was succeeded by his son, Charles. In the period following Ward War II, West Orange continued to develop. Its population grew rapidly during the post-war “baby boom,” reaching a peak in 1970. Then, as the regional economy weakened and the “baby boom” generation matured, the population declined. Today, West Orange is primarily a residential community with a large commuting population. Investment, bank, insurance and service firms have replaced most of the manufacturing firms. The township borders on nine municipalities. These include Montclair, Verona, Essex Fells, Roseland, Livingston, Millburn, Maplewood, South Orange and Orange. West Orange received second round substantive certification from the Council on Affordable Housing (COAH) on October 11, 1995 that was extended to December 20, 2005 by COAH on February 9, 2005. In addition, West Orange received third round substantive certification from COAH on December 9, 2009. Unfortunately, the rules upon which substantive certification was based were declared invalid by the Court. A municipality's Housing Element must be designed to achieve the goal of providing affordable housing to meet the total 1987-2025 affordable housing need comprised of Prospective Need, Prior Round Obligation and Present Need (Rehabilitation Share). The regulations of COAH and the Fair Housing Act delineate a municipality's strategy for addressing its present and prospective housing needs, and, as such, each municipality's

(Rehabilitation Share). The regulations of COAH and the Fair Housing Act delineate a municipality's strategy for addressing its present and prospective housing needs, and, as such, each municipality's Housing Element must contain the following:

10, I An inventory of the municipality's housing stock by age, condition, purchase or rental value, occupancy characteristics and type, including the number of units affordable to low and moderate income households and substandard housing capable of being rehabilitated; A projection of the municipality's housing stock, including the probable future construction of low and moderate income housing, for the 10 years subsequent to the adoption of the housing element, taking into account, but not necessarily limited to, construction permits issued, approvals for development and probable residential development of lands; . An analysis of the municipality's demographic characteristics, including, but not limited to, household size, income level and age; An analysis of the existing and probable future employment characteristics of the municipality; A determination of the municipality's present and prospective fair share for low and moderate income housing and its capacity to accommodate its present and prospective housing needs, including its fair share for low and moderate income housing; A consideration of the lands that are most appropriate for construction of low and moderate income housing and of the existing structures most appropriate for conversion to, or rehabilitation for, low and moderate income housing, including a consideration of lands of developers who have expressed a commitment to provide low and moderate income housing; A map of all sites designated by the municipality for the production of low and moderate income housing and a listing of each site that includes its owner, acreage, lot and block; The location and capacities of existing and proposed water and sewer lines and facilities relevant to the designated sites; Copies of necessary applications for sewer service and water quality management plans submitted pursuant to Sections 201 and 208 of the Federal Clean Water Act, 33 U.S.C. §1251, et seq.; A copy of the most recently adopted municipal master plan, and where required, the immediately preceding, adopted master plan; For each designated site, a copy of the New Jersey Freshwater Wetlands map where available. When such maps are not available, municipalities shall provide appropriate copies of the National Wetlands Inventory maps provided by the U.S. Fish and Wildlife Service;

12. A copy of appropriate United States Geological Survey Topographic Quadrangles for designated sites; and 13. Any other documentation pertaining to the review of the municipal housing element as may be required. INVENTORY OF HOUSING STOCK A. Age Approximately 71 percent of the township’s housing stock was built prior to 1970. There has been minimal residential construction or only 29 percent from 1970 to 2010. West Orange has a total housing stock of 17,168 units. The median year that a structure was built in West Orange was 1956. TABLE 1 Age of Housing Units Dates of Construction Structures Percent of Total 1939 or earlier 4,511 26 1940 — 1949 1,869 11 1950 - 1959 3,708 22 1960 — 1969 2,152 13 1970 — 1979 1,134 7 1980 — 1989 1,241 7 1990 — 1999 1,831 ll 2000 - 2004 431 7 3 2005 - 2010 291 2 TOTAL UNITS 17,168 100 Median Year: 1956 Source: 2006-2010 American Community Survey 5-Year Estimates Units built before 1960 and contain 1.01 or more persons per room are highly correlated with substandard housing indicators. This is an index utilized by COAH in determining the Rehabilitation Share. In West Orange, 10,088 units or 59 percent of the housing stock was built before 1960. This is generally an important indicator in calculating West Orange’s Rehabilitation Share and explains why West Orange’s Rehabilitation Share is 305 units. B. Condition Rehabilitation Share is the total deficient housing signaled by selected housing unit characteristics unique to each community. It is assumed that units so indicated will be prime candidates for rehabilitation. Characteristics indicating a need for rehabilitation are:

(1) Persons per Room. 1.01 or more persons per room in housing units built before 1960. These are old units that are overcrowded. (2) Plumbing Facilities. Inadequate plumbing sufficient for rehabilitation is indicated. by incomplete plumbing facilities, i.c., lack of hot and cold piped water, flush toilet or bathtub/shower. (3) Kitchen Facilities. Inadequate kitchen facilities signaling rehabilitation are indicated by the non —presence of kitchen facilitates within the unit, or the non-presence of one of three components: a sink with piped water, a stove or a refrigerator. These characteristics of deficient housing are nationally recognized indicators of housing inadequacy. Each one, properly identified and not double-counted or multiplied is enough to signal the call for unit rehabilitation. This is true not solely because the characteristic specified is itself debilitating but rather signals a unit that is either old or missing a basic component of normal housing services. These characteristics exist at the municipal level, are reported by the American Community Survey such that they can be isolated and not over counted, and individually indicate the need for structure rehabilitation. The age of West Orange’s housing stock has been presented in Table 1. Tables 2 through 4 address the other surrogates of deficient housing. TABLE 2 Persons Per Room Persons Occupied Owner Renter Per Room Occupied Occupied 1.01 to 1.50 229 91 138 1.51 to 2.00 24 0 24 2.01 or more 87 0 87 TOTAL 340 91 249 Source: 2006-2010 American Community Survey 5-Year Estimates TABLE 3 Plumbing Facilities Total Units Complete plumbing facilities 17,131 Lacking complete plumbing facilities 37 Source: 2006-2010 American Community Survey 5-Year Estimates

TABLE 4 Kitchen Facilities Complete kitchen facilities 16,761 Lacking complete kitchen facilities 407 Source: 2006-2010 American Community Survey 5-Year Estimates Based on the above, it is determined that West Orange has 305 housing units that are substandard and occupied by low- and- moderate income households. C. Purchase and Rental Value Approximately 97 percent of the owner-occupied housing units in West Orange had values over $200,000. The median value was $417,800. TABLE 5 Owner-Occupied Housing Unit Values Units Percent Less than $15,000 46 0 $15,000 - $19,999 0 0 _ $20,000 - $24,999 0 0 $25,000 - $29,999 8 0 $30,000 - $34,999 0 0 $35,000 - $39,999 0 0 $40,000 - $49,999 10 0 $50,000 - $59,999 0 0 $60,000 - $69,999 18 0 $70,000 - $99,999 0 0 $100,000 - $124,999 29 0 $125,000 - $149,999 18 0 $150,000 - $174,999 97 1 $175,000 - $199,999 106 1 $200,000 - $249,999 484 4 $250,000 - $299,999 816 7 $300,000 - $399,999 3,577 31 $400,000 - $499,999 3,358 29 $500,000 - $749,999 2,415 21 $750,000 - $999,999 447 4 $1,000,000 or more 185 2 TOTAL 11,614 100

Median Value Source: $417,800 2006-2010 American Community Survey 5-Year Estimates Of the 4,566 rental units with cash rent in West Orange, 80 percent were rented for $750 or more per month. The median contract rent was $1,081 per month. With cash rent: $0 - $99 $100 - $149 $150 - $199 $200 - $249 $250 - $299 $300 - $349 $350 - $399 $400 - $449 $450 - $499 $500 - $549 $550 - $599 $600 - $649 $650 - $699 $700 - $749 $750 - $999 $1,000- $1,249 $1,250- $1,499 $1,500- $1,999 $2,000 - or more Total No cash rent Median contract rent Source: 2006-2010 American Community Survey 5-Year Estimates TABLE 6 Contract Rent Values Units

D. Occupancy Characteristics and Types Seventy percent of the housing in West Orange is owner occupied. of the housing stock is rental. TABLE 7 Tenure and Vacancy Total Occupied Occupied: Owner Occupied Renter Occupied Vacant: For rent For sale only Rented or sold, not occupied For seasonal, recreational, or occasional use Other vacant Approximately 30 percent Housing Units 16,790 11,698 5,092 302 189 50 107 174 Note: Total housing units do not match between tables due to varied data sources Source: 2010 Census of Population and Housing E. Units Affordable to Low- and- Moderate Income Households Units are affordable to low- and -moderate income households if the maximum sales price or rent is set within a specified formula as per the Uniform Housing Affordability Controls (UHAC) regulations, N.J.A.C. 5:80-26.1 et seq. A moderate income household is a household whose gross family income is more than 50 percent of median income, but less than 80 percent of median income for households of the same size within the housing region. ‘A low income household is a household whose gross family income is equal to or less than 50 percent of median gross household income for a household of the same size within the housing region for West Orange. West Orange is in Region 2, which encompasses Essex, Morris, Union and Warren counties.

Using 2019 regional income limits, a four person Essex County median household income is estimated at $100,767. A moderate income four person household would earn a maximum of $80,61 (80 percent of regional median) and a four person low income household would earn a maximum of $50,384 (50 percent of regional median). Income levels for one, two, three and four person households as of 2019 are given below: TABLE 8 2019 Low and Moderate Regional Incomes Income 1 person 2 persons 3 persons 4 persons Median $70,537 $80,614 $90,691 $100,767 Moderate $56,430 $64,491 $72,553 $80,614 Low $35,269 $40,307 $45,345 $50,384 Source: 2019 Income Limits Based on the qualifying formula in N.J.A.C. 5:80-26, the monthly cost of shelter which includes mortgage (principal and interest), taxes, insurance and homeowners or condominium association fees, may not exceed 28 percent of gross monthly household income based on a five percent down payment. In addition, moderate income sales units must be available for at least three different prices and low income sales units available for at least two different prices. The maximum sales prices must now be affordable to households earning no more than 70 percent of median income. The sales prices must average 55 percent of median income. Under UHAC regulations, rents including utilities, may not exceed 30 percent of gross monthly income. The average rent must now be affordable to houscholds earning 52 percent of median income. The maximum rents must be affordable to households earning no more than 60 percent of median income. In averaging 52 percent, one rent may be established for a low income unit and one rent for a moderate income unit for each bedroom distribution. The utility allowance must be consistent with the utility allowance approved by HUD and utilized in New Jersey. In inclusionary rental developments, 13 percent of the rental units must be affordable to households earning no more than 30 percent of median income. West Orange currently has the following low- and -moderate income housing: Name Units Type Jewish Federation 134 Age-restricted rentals Degnan House 10 Age-restricted rentals ARC Group Home 3 Bedroom Marmon Terrace Group Home 6 Bedrooms Woodland Valley Senior Home 57 Age-restricted rentals Dogwood Drive Group Home 4 Bedrooms