Draft_October 2025_West Orange_HEFSP_with Appendices

XYLE+ MCMANUS ASSOCIATES AOU’ FUARORG DISON SPECIAL MASTER’S REPORT FOR A MOUNT LAUREL AMENDED FAIRNESS & COMPLIANCE HEARING TOWNSHIP OF WEST ORANGE | HUNTERDON COUNTY, NEW JERSEY IMO Application of the Township of West Orange Docket No. E5X-L-4697-15 February 15, 2021 Prepared for: The Honorable Robert H. Gardner, J.S.C. Superior Court of New Jersey Historic Courthouse, Room 404 470 Martin Luther King Jr. Blvd. Newark, NJ 07102 Prepared By: ZEEE aoe Elizabeth K. McManus, PP, AICP, LEED AP New Jerscy Professional Planning License No. S985

KYLE EMCMAAIUS ASSOCIATES, TABLE OF CONTENTS 1.6 INTRODUCTION .... one 2.0 BACKGROUND ...... 3.0 CONTEXT FOR REVIEW ..........000- 4.0 WEST ORANGE TOWNSH!P’S HOUSING PLAN...... 5.0 CONCLUSION Township of West Orange} Rocket No.: ESX-L-4636-15 February 15, 2021 Campliance Hearing

KMA KYLE¢ MCMANUS ASSOCIATES 1.0 INTRODUCTION This report has been prepared and submitted in my capacity as Special Master to assist the Court in the upcoming Compliance Hearing before the Honorable Robert H. Gardner, J.S.C. on February 18, 2021 In the Matter of the Application of the Township of West Orange, Docket No. ESX-L-4697.15. The following Report reviews and recommends whether the Township’s adopted 2020 Housing Element and Fair Share Plan (hereinafter the “Housing Pian”) is consistent with the Township's 2020 Settlement Agreement with Fair Share Housing Center (hereinafter the “2020 Settlement Agreement”), the and the accompanying Order on Fairness and Preliminary Round 3 Mount Laurel Compliance issued by the Honorable Robert H. Gardner, J.S.C. dated August 3, 2020 (hereinafter the “Order on Fairness”), as well as the applicable rules of the Council on Affordable Housing (hereinafter “COAH”) (N.J.A.C. 5:93), the Fair Housing Act (N.J.S.A. 52:27D-301 et seq), and relevant case law. The hearing notice adequately describes the hearing and directs comments to be distributed not later than January 11, 2021. | am not aware of any objections. 2.0 | BACKGROUND The Township of West Orange has a history of affordable housing compliance. The Township received second round substantive certification from COAH on October 11, 1995, with an extension through December 20, 2005 granted on February 9, 2005. The Township received third round substantive certification on December 9, 2009. The Township filed for Declaratory Judgment on July 21, 2015. There are two intervenors in this case — WEHI was granted intervention on December 4, 2015 and Redwood, LLC (hereinafter “Redwood”) was granted intervention on December 1, 2017. The Township executed a Settlement Agreement with Fair Share Housing Center (hereinafter “FSHC”) on April 17, 2020; Redwood is a signatory to this agreement as well. The also Township executed a Settlement Agreement with West Essex Highlands, Inc. (hereinafter “WEHI") on April 17, 2020. Both Settlement Agreements were approved by the Honorable Robert H. Gardner, J.S.C. via an Order an Fairness and Preliminary Round 3 Maunt Laure! Compliance dated August 3, 2020. Township of West Orange | Docket No.: ESX-L-4697-15 February 15, 2021 Compliance Hearing Pagel

KMA KYLE MCMANUS ASSOCIATES 3.0 CONTEXT FOR REVIEW This report reviews West Orange’s adopted 2020 Housing Element and Fair Share Plan against the Township’s April 17, 2020 Settlement Agreement with FSHC, the accompanying Order on Fairness dated August 3, 2020, as well as the applicable rules of the Council on Affordable Housing (hereinafter “COAH") (NJ.A.C, 5:93), the Fair Housing Act (N.J.S.A, 52:27D-301 et seq), and relevant case law. In doing so, this report relies upon the second round regulations of COAH (N.J.A.C. 5:93) to the greatest extent practicable, the Uniform Housing Affordability Control Rules, N.J.A.C, 5:80-26,1 et seq., the Fair Housing Act (NJS.A. 52:27D-301 et seq), and relevant case law. This approach encourages uniformity in the interpretation of the Mount Laurel doctrine and is consistent with both legislative and judicial directives. The Fair Housing Act (P.L. 1985, c. 222) states, “The interest of all citizens, including low and moderate income families in need of affordable housing, would be best served by a comprehensive planning and implementation response to this constitutional obligation.” (W.J.5.4, 52:27D-302(c)) Furthermore, the New Jersey Supreme Court, in its decision in The Hills Development Co. v. Town of Bernards, 103 NJ 1 (1986) {commonly known as Mount Laurel I!I) upheld the constitutionality of the Fair Housing Act, and stated, “Instead of varying and potentially inconsistent definitions of total need, regions, regional need, and fair share that can result from the case-by-case determinations of courts involved in isolated litigation, an overall plan for the entire state is envisioned, with definitions and standards that will have the kind of consistency that can result only when full responsibility and power are given to a single entity [COAH].” (103 N.J. at 25) Lastly, in the decision, the Supreme Court also stated that to the extent that Mount Laurel cases remained before the courts, “any such proceedings before a court should conform wherever possible to the decisions, criteria and guidelines of the Council.” (103 N.J. at 63) On March 10, 2015, the N.J. Supreme Court delivered In the Matter of the Adoption of N.JA.C. 5:96 and 5:97 by the New Jersey Council on Affordable Housing, 221 N.J. 1 (2015) (hereinafter “Mount Laurel IV"). This decision acknowledged COAH’s inability or unwillingness to adopt

ption of N.JA.C. 5:96 and 5:97 by the New Jersey Council on Affordable Housing, 221 N.J. 1 (2015) (hereinafter “Mount Laurel IV"). This decision acknowledged COAH’s inability or unwillingness to adopt constitutional rules for the so- called “Third Round” of municipal affordable housing compliance. In the absence of regulatory guidance from COAH or Legislative action, the decision instructs the Trial Courts to once again evaluate the constitutionality of municipal Fair Share Plans. While the Court has invalidated COAH’s attempts to promulgate Third Round rules, the Second Round rules (N.J.A.C. 5:93) are still largely intact. In fact, these rules have been relied upon by the Trial Courts in numerous compliance and fairness hearings during the “gaps” in COAH’s rule-making since the Second Round ended in 1999. Furthermore, in the Mount Laurel IV decision the NJ Supreme Court directed the Township of West Orange | Docket No.: ESX-t-4697-15 February 15, 2021 Compliance Heoring Page 2

KMA KYLE+ MCMANUS ASSOCIATES Trial Courts to continue to rely on the Second Round rules, with certain specific exceptions. The parties in this case have been guided by these instructions and this Report relies on COAH's Second Round rules and established Court precedent to evaluate the Settlement Agreements before the Court. This will promote the uniformity of approach which is clearly indicated in the Supreme Court's decisions. 4,0 | WEST ORANGE TOWNSHIP’S HOUSING PLAN West Orange’s Planning Board adopted the Housing Plan on December 2, 2020 and the Township Council subsequently endorsed it on January 26, 2021. The obligations and compliance mechanisms are consistent with the Settlement Agreement reached with FSHC unless otherwise noted. The Obligation and Compliance Mechanisms The Housing Pian set forth the following affordable housing obligation for the Township of West Orange = Rehabilitation Obligation: 305 units = Prior Round (1987 -- 1999) Obligation: 226 units = Third Round (1999 - 2025} Obligation: 954 units Rehabilitation Obligation The Township will continue a municipally operated rehabilitation program for both renter and owner- occupied units that is operated by Community Action Services (CAS). Additionally, the Township will participate in the Essex County Home Improvement Program, which is limited to owner-occupied units. The municipal program is necessary for the Township to be compliant with N.J.A.C. 5:93-5.2(f), which states rental units may not be excluded from the rehabilitation program. Acceptable operating manuals were submitted to ensure the programs meet the requirements of N.J.A.C. 5:93-5.2. The Township completed rehabilitations for 53 units since 2010 through the municipal program administered by CAS. The information submitted confirms the Township expended appropriate funds and brough the units up to code, as well as confirmation of other requirements. The Township should submit a sample affordability control for the municipal program. Township of West Orange | Docket No.; ESX-L-4697-15 February 15, 2021 Compliance Hearing Page 3

KMA WVLES MCMANUS ASSOCIATES, Prior Round Obfigation The Township satisfies the 226 unit prior round obligation with a variety of family, special needs, and senior units, with the majority already constructed and currently providing affordable housing. The following table provides a summary of these strategies. Satisfaction of the 226-unit Prior Round Obligation Bonus Total > Proje: 4 € i" - Status ect & Credits Credits Degnan House x 10 0 10 Complete Federation Plaza x 92 0 92 Complete ARC of Essex 2 4 Complet Wedgewood Avenue | * 2 ‘omplete Easter Seal Society & 30-32 Kinsley x 0 8 Complete ARC of Essex Ce Het 4 Marmon Terrace * & 6 12, ‘complete Merrywood Drive x S 5 10 Complete Phi : lete; PRISM x x 44 44 88 ase 1: Cornplete; Phase 2: Approved | Habitat for Humanity 112 Whittlesey Ave., x 2 0 2 Complete Units A and B Township of West Orange { Docket No.: ESX-L-4697-15 February 15, 2622 Comphonce Hearing Page 4

KMA KYLE+ MCMANUS ASSOCIATES The Township provided adequate evidence of compliance for most prior round strategies, including but not limited adopted zoning and affordability controls. However, no, or inadequate Information has been submitted for the following strategies. The Township should submit the missing information to confirm eligibility for credit. © Degnan House. The information submitted does not identify the units which are eligible for credit or confirm affordability controls. The Township should submit the project's affordability controls and identify the units which are eligible for credit (as stated in the Housing Plan, 10 of 62 units are were occupied after April 1, 1980 and are therefore eligible for credit). ¢ Easter Seal Society at 20-32 Kinsley St. No information has been submitted. The Township should submit the project’s affordability controls as well as the special needs survey, and supporting documentation, available from COAH. * Merrywood Dr. Group Home. The Township submitted a deed for the property; however, it does not reference affordability controls or other information about the group home’s operation. The Township should submit the project's affordability controls as well as the special needs survey, and supporting documentation, available from COAH. © Habitat for Humanity, Unit 1, Affordability controls were not submitted for Unit 1, The Township should submit the affordability control for this unit. Notwithstanding the above items, the Township's satisfaction of the prior round obligation meets the applicable requirements for minimum rental units, maximum sentor units, and the proper mix of income and bedroom distribution. Third Round Obligation The Township conducted a vacant land adjustment, pursuant to N.J.A.C. 5:93-4.2., and it was subject to the Fairness Hearing and approved via the Court’s August 3, 2020 Order on Fairness. Municipalities, such as West Orange, that do not have adequate capacity of developable land to fulfil the entirety of the affordable housing obligation are eligible for an adjustment of the obligation that reflects a realistic development potential (hereinafter “RDP”) and the unmet need. The RDP represents the portion of the new construction affordable housing obligation that can realistically be addressed with inclusionary development on lots identified as being developable in the vacant

RDP represents the portion of the new construction affordable housing obligation that can realistically be addressed with inclusionary development on lots identified as being developable in the vacant land adjustment. The unmet need is calculated as the difference between the total obligation and the RDP. The Township’s calculated RDP is 421 units, The vacant land adjustment was completed in accordance with N.J.A.C. 5:93-4.2. More specifically, the Township evaluated vacant (property class 1) lands, public lands (property class 15c) and additional properties which were under-developed or otherwise may offer an opportunity for inclusionary affordable housing. Environmental constraints, such as but not limited to wetlands, and municipally owned recreation lands were excluded from generating an RDP, The Township utilized densities between 6 and 67 du/ac and a 20% affordable housing set-aside to calculate the RDP. Tawnship of West Orange | Docket No.: ESX-L-4697-15 February 15, 2021 Compliance Hearing Page S

KMA YLE+ MCMANUS ASSOCIATES. The Township satisfies the RDP with a mix of family, speclal needs and senior housing. The following table provides a summary of the RDP strategies. Satisfaction of the 421-unit Third Round ROP Bonus Total Project Units Credits Credits Status & Comments Federation Plaza x 42 is} 42 Complete Weduewood avenue x 2 ° 2 Complete Dogwood Drive x 4 0 4 Complete Pleasant Valley Way x 6 0 6 Complete 39 Washington Street | x x 3 iv) 3 Complete 152 Main Street x x 3 ta] 3 Complete 158 Main Street xX x 3 i) 3 Complete St, Cloud — Prism x 4 0 4 Complete Forest Avenue - x 4 0 4 Complete Valley Road x x} 55 | ss | 110 Complete West Essex Hightands | x x | wo | 51 | 151 Settlement Agreement Selecto Flash x x 7 0 17 Redevelopment Plan in place; Agreement underway Executive Drive: Black 2 . 155, Lot 40.03 x x 23 ie) 3 Redevelopment Plan in place Executive Drive: Block 155, Lots 40.02, 42.02 | * x | 64 ° os Approved Township of West Orenge | Docket No.: ESX-L-4697-15 Febrvory 15, 2021 Campitance Hearing Poge 6