Draft_October 2025_West Orange_HEFSP_with Appendices

April 6, 2020 Page 2 Rehabilitation Share (per Kinsey Report) | 305 Prior Round Obligation (pursuant to N.J.A.C. 5:93) | 226 Third Round (1999-2025) Obligation (per Kinsey | 954 Report, as adjusted through this Agreement) 4. For purposes of this Agreement, the Third Round Obligation shall be deemed to include the Gap Period present need for new construction to address the affordable housing needs of households formed from 1999-2015, a need that was recognized by the Supreme Court in In re Declaratory Judgment Actions Filed By Various Municipalities, 227 N.J. 508 (2017), and the Prospective Need, which is a measure of the affordable housing need anticipated to be generated between July 1, 2015 and June 30, 2025. 5. The Township's efforts to meet its Rehabilitation Share include the following: West Orange has contracted with Community Action Services (CAS) to operate a rehabilitation program for both rental and owner occupied units which is entirely funded through West Orange's affordable housing trust fund. West Orange will provide a valid contract with CAS as part of achieving compliance. West Orange also participates in the Essex County rehab program. This is sufficient to satisfy the Township's present need obligation of 305 units. 6. As noted above, the Township has a Prior Round (new construction) Obligation of 226 units, which is met through the following compliance mechanisms: Name of Development #of Units | Bonus | Total Status Degnan House (age-restricted) 10 0 10 Completed Federation Plaza (age-restricted) 92 0 92 Completed Wedgewood Avenue (supportive 2 bedrooms 2 4 Completed housing) 30-32 Kingsley (supportive housing) 8 bedrooms 0 8 Completed 4 Marmon Terrace (supportive housing) | 6 bedrooms 6 12 Completed Merrywood Drive (supportive housing) 5 bedrooms 5 10 Completed PRISM Redevelopment (family rental) 44 44 88 Phase 1 is completed; Phase 2 is approved w/ developer's agreement in place Habitat for Humanity (family for-sale) 2 0 2 Completed TOTAL 169 57 226 - ' David N. Kinsey, PhD, PP, FAICP, NEW JERSEY LOW AND MODERATE INCOME HOUSING OBLIGATIONS FOR 1999-2025 CALCULATED USING THE NJ COAH PRIOR ROUND (1987-1999) METHODOLOGY, May 2016.

April 6, 2020 Page 3 7. As noted above West Orange has a Third Round obligation of 954 units. The Township is eligible for a vacant land adjustment and has a realistic development potential (RDP) of 421 units, as calculated in Exhibit A. That RDP will be satisfied as follows: Name of Development # of units | Bonus Total Status Federation Plaza (age-restricted) 42 0 42 Completed Wedgewood Avenue (supportive 2 0 2 Completed housing) Dogwood Drive (supportive housing) 4 (0) 4 Completed Pleasant Valley Way (supportive 6 0 6 Completed housing) Washington Street (family rental) 3 0 3 Completed Main Street (family rental) 3 0 3 Completed 158 Main Street (family rental) 3 0 3 Completed St. Cloud — Prism (supportive housing) 4 0 4 Completed Forest Avenue (supportive housing) 4 0 4 Completed Valley Road Residential (family rental) 55 55 110 Under Construction West Essex Highlands (family rental) 100 51 151 Settlement Agreement; still being finalized Selecto Flash (family rental) 17 0 17 Redevelopment Plan; pending developer's agreement Executive Drive Block 155 Lot 40.03 23 0 23 Redevelopment (family rental) Plan; pending developer's agreement Executive Drive Block 155 Lot 40.02 and 64 (0) 64 Redevelopment 42.02 (family rental) Plan; pending developer's agreement Library Site (senior housing) 17 (of 0 17 Redevelopment 64) Plan and awarded tax credits; 347 106 453 - 8. The Township shall provide a realistic opportunity for the development of affordable housing through the adoption of inclusionary zoning on the following sites: a) West Essex Highlands - The Township of West Orange intends to continue working in good faith to enter into a settlement agreement with West Essex

April 6, 2020 Page 4 Highlands, Inc., an intervenor in this declaratory judgment matter. The proposed agreement (not yet drafted and presented to Council) will provide that West Essex shall be permitted to construct up to 496 apartments. West Essex shall provide a letter prior to the fairness hearing in this matter firmly committing to setting aside 100 of the 496 units for affordable housing, a 20% set-aside. The letter shall confirm that West Essex has agreed to provide all of the affordable housing units as family rental units and that it shall follow the UHAC regulations regarding, among other things, income distribution, bedroom distribution, length of deed restrictions, and affirmative marketing and that West Essex agrees that 13% of the affordable housing units provided on this site shall be available to households earning less than 30% of the median income. b) Selecto Flash —- The Township has adopted a Redevelopment Plan for the area called the Central Valley Corridor Redevelopment Area on December 12, 2016. The Selecto Flash site at Block 9 Lot 35 and Block 7 Lot 22 is located within this Redevelopment Area. The Township has rezoned these properties as part of the Redevelopment Plan to permit up to 111 residential units including a 15% set- aside of 17 affordable housing units, c) Executive Drive Redevelopment —- The Township has adopted a Redevelopment Plan for the area called the Essex Green Executive Drive Redevelopment Area. Block 155 Lots 40.02, 40.03, 40.04, 41.02, 41.02, and 42.02 are included in this Redevelopment Area. The Redevelopment Plan is in the process of being amended, which process shall be completed no later than 30 days prior to the final compliance hearing in this matter, to permit the following on each Block/Lot: « Block 155 Lot 40.02 and 42.02 — 18.2 total acres — permitting 425 residential units including a 15% set-aside of 64 affordable housing units. Block 155 42.01 — 8.2 total acres — will continue its office use and will not provide affordable housing or generate RDP at this time. « Block 155 Lot 40.03 - 4.72 total acres — permitting up to 123 residential units including a 20% set-aside of 23 affordable housing units. 9. Library Site — 46 Mount Pleasant Redevelopment Area — The Alpert Group have secured an award of low-income housing tax credits for this site for the development of 64 age- restricted rental units.

9. Library Site — 46 Mount Pleasant Redevelopment Area — The Alpert Group have secured an award of low-income housing tax credits for this site for the development of 64 age- restricted rental units. The Township may apply 17 of these 64 credits towards its Third Round RDP because of the age-restricted cap, The 47 additional units will be applied toward the Township's unmet need. The Township shall further explain in its Housing Element and Fair Share Plan how this site creates a realistic opportunity for affordable housing in accordance with N.J.A.C. 5:93-5.5. 10. The RDP of 421 subtracted from the agreed upon Third Round Obligation of 954 units, results in an Unmet Need of 533 units. The Unmet Need is further reduced by the 32 surplus credits the Township has provided in addressing its RDP, the existing 57 affordable housing units provided at the Woodland Valley age-restricted site, and the remaining 47 units of credit from the Library site. Thus, the Township's unmet need is 397 units, which shall be addressed through the following mechanisms: a) K-Mart/ Whole Foods Shopping Center * Block 152.01, Lots 1445 and 1445.05 * Corner of Eagle Rock and Prospect Avenue * Current owner: West Orange Plaza Lot Area: 32.32 acres Zone: P-C Planned Commercial

April 6, 2020 Page 5 * The Township has agreed to place a mixed-use overlay zone for commercial/retail on the first floor and up to three stories of residential above. The residential density for this site shall permit up to 16 du/a and require a 20% set-aside. b) Mayfair Farms Site * Block 152.01 Lot 1445.01 * 481 Eagle Rock Avenue * Current Owner: Mayfair Farms Holding Corp. Lot Area: 11.07 acres Zone: B-2 Business * The Township has agreed to place a mixed-use overlay zone for commercial/retail on the first floor and up to three stories of residential above. The residential density for this site shall permit up to 16 du/a and require a 20% set-aside. c) Redwood ¢ Block 151 Lot 33 200 Pleasant Valley Way « Current Owner: Redwood LLC, c/o Pagano Real Estate Lot Area: 5.91 acres +/- * Zone: R-2 Single-Family Residential * The Township has agreed to place overlay zoning on this site permitting non age-restricted residential development up to 24 du/a and requiring a 20% affordable housing set-aside. The parties agree that this zoning yield shall be permitted to be rounded up to 142 total units, which if developed to that maximum would require an affordable housing set-aside of either a) 28 on-site affordable housing units and a payment in lieu of $59,473.20, or b) 29 on-site affordable housing units. d) The Township shall adopt an ordinance requiring a mandatory affordable housing set aside for all new multifamily residential developments of five (5) units or more. The set aside for rental and for sale developments shall be twenty percent (20%). The provisions of the ordinance shall not apply to residential expansions, additions, renovations, replacement, or any other type of residential development that does not result in a net increase in the number of dwellings of five or more. The form of the Ordinance shall be finalized prior to final judgment being issued in this matter through collaboration between FSHC, the Special Master, and representatives of the Township. 11. In addition to the Unmet Need mechanisms identified in Paragraph 10 the Township has identified the following areas where affordable housing may be produced in the future: a) 10 Rooney Circle Block 155 Lot 41.02 e Address — 10 Rooney Circle « Current Owner: West Orange Office Executive Park Lot Area: 5.2 acres * Zone: Site is in Essex Green Redevelopment Area « The

) 10 Rooney Circle Block 155 Lot 41.02 e Address — 10 Rooney Circle « Current Owner: West Orange Office Executive Park Lot Area: 5.2 acres * Zone: Site is in Essex Green Redevelopment Area « The Township is currently in negotiations with the landowner concerning the future use of this site. Within 18 months of the court's approval of this agreement the Township shall inform the special master and FSHC as to the future use. In the event that the future use will be residential the

April 6, 2020 Page 6 Township has agreed to place overlay zoning on this site permitting 16 du/a and requiring a 20% set-aside. 12. Rock Spring Golf Course -The Township has recently purchased this 138-acre golf course that it intends to initially continue to utilize as a golf course. The Township has contracted with a golf course consulting company that will operate Rock Spring as a golf course for the next 22 months in order to establish its continuing viability as an 18-hole course which may be extended. In the event that the golf course is found to not be viable as an 18-hole golf course, but is viable as a 9-hole golf course the Township agrees to rezone a portion of the property to provide residential zoning for the 9-hole portion of the course to be redeveloped permitting at least 150 dwelling units including a 20% affordable housing set-aside of at least 30 units. The Township will provide FSHC with notice of its intentions for future use of this site by July 1, 2021 or sooner if a decision is made prior to that date. At this time the golf course will not generate any RDP but will be evaluated for RDP purposes at the time of notice of decision and FSHC is free to take whatever position it wishes at that time as to the appropriate RDP. 13. The Township agrees to require 13% of all affordable units referenced in this Agreement, excepting those units that were constructed or granted preliminary or final site plan approval prior to July 1, 2008, to be very low income units, with half of the very low income units being available to families. The municipality will comply with those requirements as follows: Affordable Housing Units Created after 7/1/2008 # of Units Valley Road Residential 55 West Essex Highlands 100 Executive Drive Redevelopment Area (B: 155 L: 40.02, 40.03) 108 PRISM Redevelopment 44 Selecto Flash 17 Forest Ave Group Home 4 St. Cloud Group Home 4 Library site 64 Total | 396 Minimum VLI Required (13% of Total) | 52 Minimum Family VLI Units (50% of Total VLI) | 26 PRISM 6 Valley Road Residential 7 West Essex Highlands 13 Executive Drive Redevelopment Area 14 Selecto Flash 2 St. Cloud — supportive housing 4 Forest Ave — supportive housing 4 Library Site 9 Total VLI | 59 Total Family VLI | 42

Aprit 6, 2020 Page 7 The Township will also require that 13 percent of any affordable units produced from any site resulting from the mechanisms in paragraphs 10 through 12 of this agreement shall be very low income units. 14. The Township shall meet its Third Round Obligation in accordance with the following standards as agreed to by the Parties and reflected in the table in paragraph 7 above: a) Third Round bonuses will be applied in accordance with N.J.A.C. 5:93-5.15(d). b) At least 50 percent of the units addressing the Third Round Obligation shall be affordable to very-low-income and low-income households with the remainder affordable to moderate-income households. c) At least twenty-five percent of the Third Round Obligation shall be met through rental units, including at least half in rental units available to families. d) At least half of the units addressing the Third Round Prospective Need in total must be available to families. e) The Township agrees to comply with an age-restricted cap of 25% and to not request a waiver of that requirement. This shall be understood to mean that in no circumstance may the municipality claim credit toward its fair share obligation for age-restricted units that exceed 25% of all units developed or planned to meet its cumulative prior round and third round fair share obligation. 15. The Township shall add to the list of community and regional organizations in its affirmative marketing plan, pursuant to N.J.A.C. 5:80-26.15(f)(5), Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, East Orange NAACP, Newark NAACP, Morris County NAACP, Elizabeth NAACP, Supportive Housing Association , and shall, as part of its regional affirmative marketing strategies during its implementation of the affirmative marketing plan, provide direct notice to those organizations of all available affordable housing units, along with copies of application forms. The Township also agrees to require any other entities, including developers or persons or companies retained to do affirmative marketing, to comply with this paragraph. 16. All units shall include the required bedroom distribution, be governed by controls on affordability and affirmatively marketed in conformance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq., or any successor regulation, with

tion, be governed by controls on affordability and affirmatively marketed in conformance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq., or any successor regulation, with the exception that in lieu of 10 percent of affordable units in rental projects being required to be at 35 percent of median income, 13 percent of affordable units in rental projects shall be required to be at 30 percent of median income, and in conformance with all other applicable law. The Township, as part of its HEFSP, shall adopt and/or update appropriate implementing ordinances in conformance with standard ordinances and guidelines developed by COAH to ensure that this provision is satisfied. limits for all units that are part of the Plan required by this Agreement and for which income limits are not already established through a federal program exempted from the Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall be updated by the Township annually within 30 days of the publication of determinations of median income by HUD as follows:

April 6, 2020 Pages a) Regional income limits shall be established for the Housing Region in which the b) c) d) Township is located (in this case, Housing Region 2) based on the median income by household size, which shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD. To compute this regional income limit, the HUD determination of median county income for a family of four is multiplied by the estimated number of households within the county according to the most recent decennial Census. The resulting product for each county within the housing region is summed. The sum is divided by the estimated total number of households from the most recent decennial Census in the Township's housing region. This quotient represents the regional weighted average of median income for a household of four, The income limit for a moderate-income unit for a household of four shall be 80 percent of the regional weighted average median income for a family of four. The income limit for a low-income unit for a household of four shall be 50 percent of the HUD determination of the regional weighted average median income for a family of four. The income limit for a very low income unit for a household of four shall be 30 percent of the regional weighted average median income for a family of four. These income limits shall be adjusted by household size based on multipliers used by HUD to adjust median income by household size. In no event shall the income limits be less than those for the previous year. The income limits attached hereto as Exhibit B are the result of applying the percentages set forth in paragraph (a) above to HUD's determination of median income for FY 2019, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year. The Regional Asset Limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to paragraph (a) above over the previous year's income limits, and applying the same percentage increase to the Regional Asset Limit from the prior year. In no event shall the Regional Asset Limit be less than that for the previous year. The parties