Public Township Council Meeting — Packet

2. ADMINISTRATIVE MECHANISM TO COLLECT AND DISTRIBUTE FUNDS The following procedural sequence for the collection and distribution of development fee revenues shall be followed by West Orange: (a) Collection of development fee revenues: Collection of development fee revenues shall be consistent with West Orange’s development fee ordinance for both residential and non-residential developments in accordance with COAH’s rules and P.L.2008, c.46, sections 8 (C. 52:27D-329.2) and 32- 38 (C. 40:55D-8.1 through 8.7). (b) Distribution of development fee revenues: The following procedural sequence for the collection and distribution of development fee revenues is being followed by West Orange and was previously approved by COAH: The Director of Planning and Development will be responsible for the overall management of the fund. The director will supervise the collection of all fees, which will be turned over to the Chief Financial Officer. The Chief Financial Officer will then deposit all fees in a separate interest-bearing housing trust fund. The Township Council will review all fund requests on an as needed basis. The Director of Planning and Development will activate the procedures to disburse funds from the Affordable Housing Trust Fund. The Comptroller will certify as to the availability of funds. Development fees will be paid in part upon issuance of a building permit based on the estimated added value of the project (50 percent of anticipated fees). This estimate will be determined by the Tax Assessor. The Township Construction Official will notify the Tax Assessor when a Certificate of Occupancy (CO) is ready to be issued. Upon completion of construction, the Township Tax Assessor will calculate the equalized assessed value to be added as a result of the project and the remaining amount of the development fee, which is due upon issuance of a CO. No CO will be issued until the Tax Assessor has made this calculation and the entire development fee is paid. The Director of Planning and Development will monitor this process and the Chief Financial Officer will provide reports to the governing body. 3. DESCRIPTION OF ANTICIPATED USE OF AFFORDABLE HOUSING FUNDS (a) Rehabilitation and new construction programs and projects (N.J.A.C.

Financial Officer will provide reports to the governing body. 3. DESCRIPTION OF ANTICIPATED USE OF AFFORDABLE HOUSING FUNDS (a) Rehabilitation and new construction programs and projects (N.J.A.C. 5:97-8.7) West Orange will dedicate $1,663,292.14 to rehabilitation (see detailed descriptions in Fair Share Plan) as follows: 4

Rehabilitation program: West Orange has a rehabilitation obligation of 324 units. West Orange averages $21,000 per project cost. Special Needs Partnership: MOU - $250,000 TOTAL NEW CONSTRUCTION - $1,913,292.14 Projected minimum affordability assistance requirement: Actual development fees through 2011 $4,324,233.78 Actual interest earned through 2011 + $408,591.17 Development fees projected* 2012-2018 + $700,000 Interest projected 2012-2018 + $7,000 Less housing activity expenditures - $2,848,686.23 Total = $2,591,138.72 30 percent requirement x 0.30 = $777,341.62 Less Affordability assistance expenditures through - $00.00 PROJECTED MINIMUM Affordability Assistance = $777,341.62 Requirement 1/1/2012 through 12/31/2018 PROJECTED MINIMUM Very Low-Income Affordability Assistance Requirement 1/1/2012 through 12/31/2018 ÷ 3 = $259,113.87 West Orange will dedicate $777,341.62 from the affordable housing trust fund to render units more affordable, including $259,113.87 to render units more affordable to households earning 30 percent or less of median income by region, as follows: Converting low income units to very low income units and / or emergency repairs and/ or energy efficiency assistance program . (c) Administrative Expenses (N.J.A.C. 5:97-8.9) West Orange projects that $911,491.78 will be available from the affordable housing trust fund to be used for administrative purposes. Projected administrative expenditures, subject to the 20 percent cap, are as follows: 5

Projected Administrative expenses Actual fees and interest through 12/31/2011 $4,732,824.95 Projected development fees and interest through 2018 $707,000 Payments in lieu of development and other deposits through 2011 $1,095,927.66 Less RCA Expenditures through 12/31/18 00.00 Total for Admin. Calculation 2012-2018 $6,535,752.61 20 % Maximum for Admin. Expenses $1,307,150.52 Less Admin through 12/31/2011 $395,658.74 Available for Admin. 1211-1218 $911,491.78 These fees will be utilized for administrative purposes such as consultant’s fees necessary to develop and implement the soft costs of the housing program, the housing element, the fair share plan and the affirmative marketing program. Administrative funds may be used to defray the costs of consultants that are preparing or implementing a plan such as the accessory apartment program and the Market to Affordable Program. Administrative funds may be used to income qualify households and monitor implementation. 4. EXPENDITURE SCHEDULE West Orange intends to use affordable housing trust fund revenues for the creation and/or rehabilitation of housing units. Where applicable, the creation/rehabilitation funding schedule below parallels the implementation schedule set forth in the amended Spending Plan and is summarized as follows. 6

Number Program of Units 2012 2013 2014 2015 2016 2017 2018 Total Projected Rehabilitation 1 275,000 275,000 275,000 275,000 280,000 283,292 0 $1,663,292 Group Home 4 250,000 0 0 0 0 0 0 $250,000 Total Programs 5 Affordability 150,000 150,000 150,000 150,000 177,341 $777,341 Assistance Administration 85,000 100,000 85,000 85,000 85,000 85,000 75,763 $600,763 Total $3,291,397 7

5. EXCESS OR SHORTFALL OF FUNDS Pursuant to the Housing Element and Fair Share Plan, the governing body of West Orange has adopted a bond ordinance agreeing to fund any shortfall of funds required for implementing housing programs. The bond ordinances are on file with COAH. As can be seen, there is a shortfall of funds to run the proposed housing program. 6. BARRIER FREE ESCROW Collection and distribution of barrier free funds shall be consistent with West Orange’s Affordable Housing Ordinance in accordance with N.J.A.C. 5:97-8.5. SUMMARY West Orange intends to spend affordable housing trust fund revenues pursuant to N.J.A.C. 5:97 -8.7 through 8.9 and consistent with the housing programs outlined in the housing element and fair share plan dated November 5, 2008. West Orange has a balance of $2,584,397.64 as of December 31, 2011 and anticipates an additional $707,000 in revenues before the expiration of substantive certification for a total of $3,291,397.64. The municipality will dedicate $1,663,292 towards rehabilitation and, $250,000 towards Group Homes at this time, $777,341.62 to render units more affordable, and $600,763.88 to administrative costs.* Any shortfall of funds will be offset by bonding. To the extent feasible and available, West Orange will utilize public funding. Only in the absence of public funds will West Orange utilize bonding. * West Orange will transfer unspent administrative funds each year into other housing projects that may have deficits. 8

SPENDING PLAN SUMMARY Balance as of 12-31-11 $2,584,397.64 PROJECTED REVENUE 2012-2018 Development fees + $700,000 Payments in lieu of construction + $00.00 Other funds + $00.00 Interest + $7,000 TOTAL REVENUE = $3,291,397.64 EXPENDITURES Funds used for Rehabilitation - $1,663,292.14 Funds used for New Construction 1. MOU on Special Needs - $250,000 Affordability Assistance - $777,341.62 Administration* - $600,763.88 Excess Funds for Additional Housing Activity = $ TOTAL PROJECTED EXPENDITURES = $3,291,397.64 REMAINING BALANCE = To the extent feasible and available, West Orange will utilize public funding. Only in the absence of public funds will West Orange utilize bonding. * Unexpended administrative funds will be used to fund affordable housing program deficits. 9

108-12 May 29, 2012 RESOLUTION TO IMPLEMENT EMERGENCY REPAIR PROGRAM UNDER AFFORDABILITY ASSISTANCE WHEREAS, N.J.A.C. 5:97 – 8.8 (a) requires that at least 30 percent of all development fees collected and interest earned shall be used to provide Affordability Assistance to low income and moderate income households in affordable units included in a municipality’s Fair Share Plan; and WHEREAS, N.J.A.C. 5:97 – 8.8 (a) 1. states that among other options, Affordability Assistance may include assistance with emergency repairs; and WHEREAS, the Township has the following units / projects in its Certified Fair Share Plan: Degnan House, Jewish Federation Plaza, Woodland Valley, 4 Wedgewood Drive, Marmon Terrace, 97 Edgewood Avenue, 525 Pleasant Valley Way, 19 Dogwood Drive, Prism Group Home, 39 Washington, 158 Main Street, 152 Main Street, 112 Whittlesey Avenue and those homes in the Rehabilitation Program that still contain the 10 year lien; and WHEREAS, the Township shall make available funding for emergency repairs on an as- needed and requested basis; and NOW THEREFORE BE IT RESOLVED, that West Orange Township shall implement its Affordability Assistance requirement in the form of emergency repairs to units / projects that are in its certified Fair Share Plan; and BE IT FURTHER RESOLVED, that West Orange Township shall make available $777,341.62 for emergency repairs as seen in its amended spending plan. I certify the above to be a true copy of a Resolution adopted by the Township Council of the Township of West Orange at a meeting held on May 29, 2012. Karen J. Carnevale Patricia Spango Municipal Clerk Council President Adopted: May 29, 2012

MEMORANDUM OF UNDERSTANDING BETWEEN NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY AND NEW JERSEY DEPARTMENT OF HUMAN SERVICES AND TOWNSHIP OF WEST ORANGE THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is made this May ___ 2012 by and between the STATE OF NEW JERSEY Housing and Mortgage Finance Agency, a principal agency established in the Executive Branch of the government of the State of New Jersey (hereafter, “HMFA”), with a place of business at 637 South Clinton Avenue, Trenton, NJ 08650-2085; AND The STATE OF NEW JERSEY Department of Human Services, a principal department established in the Executive Branch of government of the State of New Jersey (hereafter, “DHS”), with a place of business at 222 South Warren Street, Trenton, NJ 08625- 0700; AND Township of West Orange, a Municipal corporation in Essex County, State of New Jersey, with its office at 66 Main Street, West Orange, NJ 07052. The HMFA, DHS and Township of West Orange are referred to collectively as the “Parties.” PURPOSE The purpose of this MOU is to coordinate the efforts of the parties to create appropriate housing for individuals with developmental disabilities in the community through the purchase and conversion of existing residential structures within the municipality.

DEFINITIONS Special Needs Partnership (SNP) The NJ Department of Community Affairs, the Housing and Mortgage Finance Agency and the NJ Department of Human Services, collectively working to expand housing opportunities and expedite the process of placing developmentally disabled individuals into community based supportive housing. Qualified developer A housing developer that has been screened by the SNP and meets the standards set by the SNP for the purpose described above. Unit A bedroom housing one individual with a developmental disability. Cost caps The sum of the purchase price and renovation cost is not to exceed $125,000 per unit or $500,000 per house. UNDERSTANDING Township of West Orange has Affordable Housing Trust Fund (AHTF) monies that it chooses to allocate for the purpose described in this MOU. AHTF monies transferred to the HMFA will be made available to Our House, Inc. who has identified a property to acquire for conversion to a community residence for individuals with developmental disabilities. The cost to acquire and rehabilitate one house with three or four bedrooms shall be capped at $125,000 per bedroom or $500,000 for one house. The State will match the municipality’s trust fund contribution. The $125,000 per bedroom cap and the $500,000 per house cap includes the State’s contribution, the municipal contribution and all renovations. The municipal contribution pursuant to this MOU will be $250,000.00 of the current balance of its Affordable Housing Trust Fund as set forth in Paragraph 1 below. Some preference for local residents will be given. Township of West Orange agrees to vest oversight for the expenditure of AHTF monies so transferred for the development of said residences with the HMFA, an entity that has experience and an established process that ensures the completion of the affordable, supportive housing. PROCESS 1. Within 15 business days of the execution of this MOU, Township of West Orange shall transfer $250,000.00 from its current Affordable Housing Trust Fund of $2,512,143.00 to HMFA for the purpose of funding the purchase of existing ranch style homes and other first story residences within the municipality. 2. HMFA will deposit and hold the municipality’s AHTF money in a separate escrow account for Township of West Orange identifiable from other funds. 3. The