West Orange Fourth Round HEFSP_adopted 111025_Appendices

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 KYLE+ MCMANUS ASSOCIATES, Prior Round Obiigation 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 Project Units Credits Credits Status Degnan House 10 t¢] 10 Complete Federation Plaza 92 0 92 Complete ARC of Essex Wedgewood Avenue 2 2 4 Complete Easter Seal Society I 30-32 Kinsley 8 9 8 Complete ARC of Essex 4 Marmon Terrace 5 6 R. Complete Merrywood Drive 5 5 10 Complete Phase 1: Complete;”. 4: PRISM 44 4 88 Phase 2: Approved, Habitat for Humanity 112 Whittlesey Ave., 2 0 2 Complete Units A and B- . Township of West Orange | Docket No.: ESX-L-4697-15 Comptionce Heoring February 15, 2021 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 KYLE+ MCMANUS ASSOCIATES The Township satisfies the RDP with a mix of family, special needs and senior housing. The following table provides a summary of the RDP strategies. Satisfaction of the 421-unit Third Round RDP Bonus Total Project Units Credits Credits Status & Comments Federation Plaza x 42 ie) 42 Complete ARC of Essex 2 Wedgewood Avenue | * 2 0 Complete Dogwood Drive x 4 0 4 Complete Pleasant Valley Way x 6 0 6 Complete 39 Washington Street | x x 3 0 3 Complete 152 Main Street x x 3 0 3 Complete 158 Main Street x x 3 0 3 Complete St. Cloud — Prism x 4 0 4 a Complete ‘Forest Avenue . | X 4 . 0 4 ; Complete _ valley Roa ‘ x x 55 55 110 Complete : West Essex Highlands | x x 100 51 151 Settlement Agreements Redevelopment Plan in place; 1 Selecto Flash x x v7 0 7 Agreement underway Executive Drive: Block 155, Lot 40.03 x x 23 fe) 23 Redevelopment Plan in place Executive Drive: Block 155, Lots 40.02, 42.02 | * x] 64 ° 6 Approved Township of West Orange | Docket No.: ESX-L-4697-15 February 15, 2021 Campliance Hearing Page 6

KMA KYLE-+MCMANUS ASSOCIATES Satisfaction of the 421-unit Third Round RDP > = Bonus Total 5 Project 5 Units Credits Credits Status & Comments TD ER Total 347 Surplus 32 The Township provided adequate evidence of compliance for the majority of third round RDP strategies, including but not limited adopted zoning and affordability controls, However, inadequate information has been submitted for the following strategies. The Township should submit the missing information to confirm eligibility for credit. * Selecto Flash. Seventeen affordable units will be created by the developer on a property (Block 6, Lot 36.01) owned by the Township. The Township will convey the property for development of the affordable housing. The agreement outlining the roles and responsibility of each party is not yet executed. The Township should submit the executed contract to confirm eligibility for credit, @ Executive Drive: Block 155, Lot 40.03. information was not submitted on this strategy. The * To p_should submit the adopted Redevelopment Plan and Agreement between the ‘developer and Township. , . The Township's satisfaction of the third round RDP meets the applicable requirements for minimum rental units, maximum senior units, and the proper mix of income and bedroom distribution. The Settlement Agreement sets forth how the Township will satisfy the unmet need with proposed strategies..The third round unmet need is quantified as 533 units (954-421). The following provides an overview of the Township's unmet need strategies. Satisfaction of the Third Round Unmet Need Project % : i Status & Comments Surplus Credits Various Township of West Orange | Docket No.: ESX-L-4697-15 February 15, 2021 Compliance Hearing Page 7

KMA KYLE+MCMANUS ASSOCIATES Satisfaction of the Third Round Unmet Need Project ‘ : i Status & Comments Woodland Valley x 54 Complete Library Site (47 of 64) x x 47 Approved K-Mart / Whole Foods Center x Not Zoned (Block 152.01, Lots 1445, 1445.05) quantified Mayfair Farms Site x Not Zoned (Block 152.01, Lot 1445.01) quantified Redwood (Block 151, Lot 33) x x Not Settlement Agreement; Zoned quantified Mandatory Set-aside Ordinance x x Not Zoned (Township-wide) quantified Total 133+ In addition to the above unmet need mechanisms, the Township has identified. additional Potential opportunities for affordable housing. The following summarizes those mechanisms. 10 Rooney Circle (Block 144, Lot 41.02), The Township Is negotiating with the fandowner “concerning the future use of this site and shall, within 18 months of the court's approval of the Settlement Agreement, inform the special master and FSHC as to the site’s future use. If the future use will be residential, the Township has agreed to place overlay zoning on this site permitting 16 du/ac and requiring a 20% set-aside. The Township’s Housing Plan states negotiations for this site are ongoing and that Township will inform FSHC and the Special Master as to the status within 18 months of the Court’s Order on Fairness (February 3, 2022) © Rock Springs Golf Course. The Township recently purchased the golf course; however, the site’s continued viability as a golf course is uncertain. The Township has contracted with a golf course consulting company that will operate Rock Spring as a golf course for 22 months (this appears to begin in April 2020) to establish its continuing viability as an 18-hole course. 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 permitting at least 150 dwelling units with a 20% affordable housing Township of West Orange | Docket No.: ESX-L-4697-15 February 15, 2021 Compliance Hearing Page 8

KMA KYLE+MCMANUS ASSOCIATES, set-aside. 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. Administration The Township submitted an adopted affordable housing regulating ordinance. This ordinance provides standards for item such as, but not limited to, bedroom distribution, sales and rental prices, affordability average, administration, monitoring and enforcement. It is consistent with the applicable standards in COAH’s substantive rules (N.J.A.C. 5:93), the Uniform Housing Affordability Control Rules (N.J.A.C. 5:80- 26.1 et seq.) and the Fair Housing Act (N.J.S.A. 52:27D-301 et seq.), as well as the Township's Settlement Agreement with FSHC. The Township submitted rental and sale affordable unit operating manuals prepared by the Affordable Housing Administrative Agent. Also submitted was a compliant affirmative marketing plan. Additionally, the Township submitted a draft resolution designating the municipal housing liaison (hereinafter the “MHL”}, as well as an adopted resolution appointing Community, Grants, Planning and Housing as the administrative agent. The Township should submit the adopted resolution appointing the municipal housing liaison. Affordable Housing Trust Fund The Township submitted the adopted development fee ordinance. This ordinance meets the appliable requirements in COAH's substantive rules (N.J.A.C. 5:93) and the Fair Housing Act (N.J.S.A. 52:27D-301 et seq.), as well as the Township’s Settlement Agreement with F5HC. | recommend the Court approve the development fee ordinance. The Township should submit a Spending Plan and adopted resolution of intent to fund (a draft resolution was submitted), The Township’s Spending Plan provides for collection and expenditure of money in the affordable housing trust fund in manners consistent with the applicable regulations. The proposed expenditures include a large affordability assistance program and administration. The Township’s Spending Plan states affordability assistance funds will be used for emergency repairs and subsidizing future special assessments of existing low and moderate income homeowners. The Township indicates the affordable housing