Draft_October 2025_West Orange_HEFSP_with Appendices

DRAFT FOURTH ROUND HOUSING ELEMENT AND FAIR SHARE PLAN Township of West Orange Essex County, New Jersey October 2025 Adopted by the Planning Board on x x, 2025 Prepared By: Heyer, Gruel & Associates Community Planning Consultants 236 Broad Street, Red Bank, NJ 07701 (732) 741-2900

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- DRAFT FOURTH ROUND HOUSING ELEMENT AND FAIR SHARE PLAN Township of West Orange Essex County, New Jersey October 2025 Adopted by the Planning Board on x x, 2025 Prepared By: Heyer, Gruel & Associates Community Planning Consultants 236 Broad Street, Red Bank, NJ 07701 (732) 741-2900 The original of this report was signed and sealed in accordance with N.J.S.A. 45:14A-12 ____________________________________ Susan S. Gruel, P.P. #1955 With contributing content by Megan Adam, AICP Candidate and Julia DeLorenzo Cover page images courtesy of West Orange Township 2

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- TOWNSHIP PLANNING BOARD Dr. Robert Bagoff, Chair Jerry Guarino, Vice Chair Susan McCartney, Mayor Ken Alper John Cardoza Lori Kapferer Lee D. Klein, PE, PTOE Christopher Morgan, Sr. Susan Scarpa, Councilwoman Frank Noborine William B. Wilkes, II Diana McGovern, Esq., Board Attorney Phil Scott, PE, Board Engineer Zayibeth Carballo, Carballo, PE, PLS, PP, Township Engineer Jamilet Baquerizo Vite, Board Secretary Geniece Gary-Adams, Director of Planning & Development and Zoning Official TOWNSHIP COUNCIL AND ADMINISTRATION Susan McCartney, Mayor Council President Joe Krakoviak Councilwoman Michelle Casalino Councilwoman Joyce Rudin Councilwoman Susan Scarpa Peter F. Smeraldo, Jr., Interim Assistant Business Administrator / Chief of Staff Karen J. Carnevale, RMC, Township Clerk 3

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- Table of Contents EXECUTIVE SUMMARY ....................................................................................................................................... 6 INTRODUCTION ................................................................................................................................................... 8 First and Second Rounds ................................................................................................................................ 9 Third Round ...................................................................................................................................................... 9 Fourth Round .................................................................................................................................................10 TOWNSHIP OF WEST ORANGE’S HISTORY OF AFFORDABLE HOUSING ......................................................12 PLANNING FOR AFFORDABLE HOUSING ........................................................................................................13 PART 1. HOUSING ELEMENT ............................................................................................................................15 DEMOGRAPHIC CHARACTERISTICS ............................................................................................................15 EXISTING HOUSING CONDITIONS ...............................................................................................................22 EMPLOYMENT DATA ....................................................................................................................................30 PART 2: FAIR SHARE PLAN ...............................................................................................................................38 INTRODUCTION .............................................................................................................................................38 CURRENT STANDARDS .................................................................................................................................38 WEST ORANGE TOWNSHIP

...........................38 CURRENT STANDARDS .................................................................................................................................38 WEST ORANGE TOWNSHIP AFFORDABLE HOUSING OBLIGATIONS ........................................................40 REVIEW OF PRIOR ROUND COMPLIANCE ...................................................................................................41 FOURTH ROUND OBLIGATION .....................................................................................................................68 CONSISTENCY WITH STATE PLANNING REQUIREMENTS ..................................................................... 127 USE OF SURPLUS CREDITS........................................................................................................................ 127 SUMMARY OF FAIR SHARE COMPLIANCE ............................................................................................... 128 Appendices Appendix A: Executed Settlement Agreement between The Township of West Orange and Fair Share Housing Center, dated April 6, 2020 Appendix B: Executed Settlement Agreement between The Township of West Orange and West Essex Highlands, Inc., dated April 23, 2020 Appendix C: Court Order Approving Fair Share Housing Center Settlement Agreement, filed on August 3, 2020 Appendix D: Township of West Orange Final Third Round Judgement of Compliance and Repose, dated March 17, 2021 Appendix E: Township of West Orange Resolution #67-25 – Approving the Department of Community Affairs Calculation of Regional Need for Affordable Housing for Fourth Round Obligation Appendix F: Prism Redevelopment Documentation Appendix G: 46 Mount Pleasant Avenue Site Documentation Appendix H: Adopted Inclusionary Housing Ordinances Appendix I: 25 Tompkins Street Site Documentation 4

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------Appendix J: Stonehill Site Documentation Appendix K: Mandatory Set-Aside Ordinance Appendix L: West Orange Homeowners Rehabilitation Program (WOHRP) Documentation Appendix M: 555 Northfield Avenue Documentation Appendix N: 172-174 Main Street Documentation Appendix MO: Existing Group Homes Documentation Appendix NP: Additional Affordable Housing Resolutions • Resolution #186-25 –Appointing Geniece Gary-Adams as the Township’s Municipal Housing Liaison, and Peter F. Smeraldo, Jr. as the Alternate Municipal Housing Liaison • Resolution #17-24 – Appointing CGP&H as the Township’s Administrative Agent 5

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- EXECUTIVE SUMMARY The following Fourth Round Housing Element and Fair Share Plan has been prepared for the Township of West Orange in the County of Essex in accordance with the Fair Housing Act as most recently amended (P.L. 2024, c 2). The Township of West Orange is a 12.1 square mile developed community located in the northeastern part of New Jersey in the County of Essex. The Township is surrounded by Montclair and Verona to the north, Livingston, Roseland, and Essex Fells to the west, Maplewood, Millburn, and South Orange to the south, and Orange to the east. Interstate 280 bisects the Township and offers connections to the New Jersey Turnpike and Garden State Parkway. West Orange includes areas of significant grade change within its eastern and western sections. According to the 2020 Census, West Orange’s population was 48,843, which represents an increase of 5.7 percent from 2010. The US Census Bureau 2019-2023 American Community Survey estimates a total population of 48,276 in 2023. In 2020, the median age of Township residents was 42.2 years, and the average household size decreased slightly from the 2010 level of 2.74 persons to 2.73 persons. The housing stock of the Township is predominantly single-family detached dwelling units. A majority of the housing structures was built prior to 1960. The Township is located in Housing Region 2, a region that consists of Essex, Morris, Union, and Warren counties. Based on the 2025 Regional Income Limits (released by Affordable Housing Professionals of New Jersey on May 5, 2025), the median income in Region 2 for a four-person household is $135,300, the moderate-income is $108,240, the low-income is $67,650, and the very-low-income level is $40,590. West Orange Township entered into a Settlement Agreement with Fair Share Housing Center (FSHC) to establish the Township’s Third Round affordable housing obligation on April 6, 2020. A second settlement agreement with the Township, West Essex Highlands, Inc., (“WEHI”), and the West Essex Highlands Condominium Association, Inc., (the “Association”) was executed on April 23, 2020 (“WEHI

cond settlement agreement with the Township, West Essex Highlands, Inc., (“WEHI”), and the West Essex Highlands Condominium Association, Inc., (the “Association”) was executed on April 23, 2020 (“WEHI Settlement Agreement”).” Subsequent compliance efforts were approved by the Court in a Final Judgement of Compliance and Repose (JOR), dated March 17, 2021, confirming the Township satisfied its Third Round obligations. The Township was able to fully meet its Prior Round and Third Round obligations through credit-worthy units that are existing or proposed, as well as through rental bonus credits. The Township has a Fourth Round rehabilitation share of 409 units and a Fourth Round Prospective Need of 660 units. This Prospective Need is separated into a realistic development potential (RDP) of 0 units and an unmet need of 660 units. 6

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- The Township will fully address its Fourth Round obligations through the following mechanisms: • New Inclusionary Development • Continuation of its Rehabilitation Program • Mandatory Set-Aside Ordinance • Bonus Credits • 100% Affordable Development • Group Homes • New Accessory Apartment Ordinance 7

Township of West Orange October 2025 Essex County, New Jersey Draft Housing Element and Fair Share Plan ------------------------------------------------------------------------------------------------------------------------------------------------------------- INTRODUCTION The need to provide a realistic opportunity for the construction of affordable housing in New Jersey, the country’s most densely populated state, has been recognized for decades. In the case of Southern Burlington County NAACP v. the Township of Mount Laurel 67 N.J. 151 (1975), (commonly known as Mount Laurel I), the New Jersey Supreme Court established the doctrine that developing municipalities have a constitutional obligation to create a realistic opportunity for their fair share of low and moderate income housing. In Southern Burlington County NAACP v. Township of Mount Laurel, 92 N.J. 158, 456 A.2d 390 (1983), decided on January 20, 1983 (commonly known as Mount Laurel II), the Supreme Court responded to the response of municipalities to Mount Laurel II. It sought to make it far easier for developers to secure a builder’s remedy. The builder’s remedy created an incentive to developers to sue non-compliant municipalities and force them to comply. Mount Laurel II also created the Judgment of Compliance and Repose to incentivize municipalities to comply. A Judgment of Compliance and Repose protected municipalities from anyone who would sue it and claim entitlement to a builder’s remedy or other relief based upon the claim that the municipality was noncompliant. In the wake of Mount Laurel II, developers sued municipalities seeking builder’s remedies. The wave of builder’s remedy lawsuits created the impetus for legislation to protect municipalities from builder’s remedies. A decision by Judge Serpentelli, one of three judges appointed by Chief Justice Wilentz to implement Mount Laurel II, increased the need for a legislative cure. More specifically, in 1984, Judge Serpentelli issued the AMG decision which established a formula for any developer to determine the fair share obligation of any municipality. The pressure of builder’s remedy suits, combined with the ease in determining the fair share of any municipality through the AMG formula, culminated in the enactment of the New Jersey Fair Housing Act in 1985. The Fair Housing Act (FHA) is found at N.J.S.A. 52:270-301, et seq. The FHA