West Orange Fourth Round HEFSP_adopted 111025_Appendices

82-20 April 14, 2020 RESOLUTION WHEREAS, on July 7, 2015, the Township of West Orange (the “Township”) filed a Declaratory Judgment Complaint in Superior Court, Law Division, pursuant to In re N.J.A.C. 5:96 and 5:97, 221 N.J. (2015) (Mount Laurel IV), seeking, among other things, a judicial declaration that its Housing Element and Fair Share Plan (hereinafter “Fair Share Plan”), as to be amended as necessary, satisfies its “fair share” of the regional need for low and moderate income housing pursuant to the “Mount Laurel doctrine”; and WHEREAS, the Township simultaneously sought, and ultimately secured, a protective Order providing the Township with immunity from all exclusionary zoning lawsuits while it pursues approval of its Fair Share Plan; and WHEREAS, the Trial Judge appointed Elizabeth McManus, PP, AICP, LEED AP, as the Special Court Master (hereinafter the “Court Master”), as is customary in Mount Laurel matters adjudicated in the courts; and WHEREAS, with the assistance from the Court Master, the Township and Fair Share Housing Center (hereinafter “FSHC”) engaged in good faith negotiations which resulted in an amicable accord on the various substantive terms and conditions as set forth in the Settlement Agreement attached hereto as Exhibit A; and WHEREAS, the Township was represented in these negotiations by the Township's Affordable Housing Planner Shirley Bishop; and WHEREAS, through the process, the Township and FSHC agreed upon the Township's affordable housing obligations and the compliance techniques necessary for 69297-006; 800617.1

the Township to satisfy its “fair share” of the regional need for low- and moderate- income housing; and WHEREAS, the Township and FSHC also agreed to present the Settlement Agreement to the Trial Judge for approval at a duly-noticed Mount Laurel Fairness Hearing; and WHEREAS, although there is a well-established policy favoring the settlement of all forms of litigation, the settlement of Mount Laurel litigation is particularly favored because (1) it avoids the expenditure of finite public resources; and (2) expedites the construction of safe, decent housing for the region's low- and moderate-income households; and WHEREAS, in light of the above, the Council finds that it is in the best interest of the Township to execute the attached Settlement Agreement with FSHC and to take the various other actions delineated below, which will ultimately result in approval of the Township's Fair Share Plan which, in turn, will maintain the Township's immunity from all Mount Laure! lawsuits for the ten-year period set forth in the New Jersey Fair Share Housing Act, N.J.S.A. 52:27D-301 to 329. NOW, THEREFORE, BE IT RESOLVED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF WEST ORANGE that the Township Council hereby directs, authorizes and empowers the Mayor to execute the Settlement Agreement attached hereto as Exhibit ““A;” and be it further RESOLVED, that the Council hereby directs, authorizes and empowers the Township’s Counsel to (a) file the fully-executed Settlement Agreement with the Court nN 4810-8690-6037, v. 1

for review and approval at a duly-noticed Fairness Hearing, (b) take all actions reasonable and necessary to secure an Order approving the Settlement Agreement, and (c) work towards ultimately securing judicial approval of the Township's Fair Share Plan, after it is drafted, adopted by the Township Planning Board and endorsed by the Council; and be it further RESOLVED, that all other appropriate Township officials are hereby directed, authorized and empowered to execute all documents and take all steps necessary and appropriate to effectuate the terms and purposes of this Resolution and the Settlement Agreement; and be it further RESOLVED, that this Resolution shall be published and made available in the Clerk's office in accordance with applicable law. ze, J. bad R.M.C, Wilke exes Municipal Clerk is President Adopted: April 14, 2020 4810-8690-6037, v. 1

82-20 EXHIBIT “A”

82-20 Peter J. O'Connor. Esq. Adam M. Gordon. Esq, 4 FAIR SHARE ure Srihsbones Be HOUSING CENTER TanOa Le Rooee BE Bassam F. Gergi, Esq. April 6, 2020 Richard Trenk, Esq. McManimom Scotland and Baumann 75 Livingston Avenue Roseland, NJ 07068 Re: In the Matter of the Township of West Orange, County of Essex, Docket No. ESX-L-4697-15 Dear Mr. Trenk: This letter memorializes the terms of an agreement reached between the Township of West Orange (the Township or “West Orange"), the declaratory judgment plaintiff, and Fair Share Housing Center (FSHC), a Supreme Court-designated interested party in this matter in accordance with In re N.J.A.C. 5:96 and 5:97, 221 N.J. 1, 30 (2015) (Mount Laurel IV) and, through this settlement, a defendant in this proceeding. Background West Orange Township filed the above-captioned matter on July 21, 2015 seeking a declaration of its compliance with the Mount Laurel doctrine and the Fair Housing Act of 1985, N.J.S.A. 52:27D-301, et seq., in accordance with In re N.J.A.C. 5:96 and 5:97, supra. Through the declaratory judgment process, the Township and FSHC have agreed to settle the litigation and to present that settlement to the trial court with jurisdiction over this matter to review, recognizing that the settlement of Mount Laurel litigation is favored because it avoids delays and the expense of trial and results more quickly in the construction of homes for lower-income households. Settlement terms The Township and FSHC hereby agree to the following terms: 1. FSHC agrees that the Township, through the adoption of a Housing Element and Fair Share Plan conforming with the terms of this Agreement (hereafter “the Plan") and through the implementation of the Plan and this Agreement, satisfies its obligations under the Mount Laurel doctrine and Fair Housing Act of 1985, N.J.S.A. 52:27D-301, et seq., for the Prior Round (1987-1999) and Third Round (1999-2025). 2. At this time and at this particular point in the process resulting from the Supreme Court's Mount Laurel IV decision, when Third Round fair share obligations have yet to be definitively determined, it is appropriate for the parties to arrive at a settlement regarding a municipality's Third Round Obligation instead of doing so through plenary adjudication of the Third Round Obligation. 3. FSHC and West Orange hereby agree that West Orange's affordable

nt regarding a municipality's Third Round Obligation instead of doing so through plenary adjudication of the Third Round Obligation. 3. FSHC and West Orange hereby agree that West Orange's affordable housing obligations are as follows: 510 Park Blvd. - Cherry Hill, New Jersey 08002 + 856-665-5444 - fax: 856-663-8182 + www. fairsharehousing.org

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 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