This act shall be known and may be cited as the "Fair Housing Act."

L. 1985, c. 222, s. 1, eff. July 2, 1985, operative July 2, 1985.

52:27D-302. Findings

The Legislature finds that:

a. The New Jersey Supreme Court, through its rulings in South Burlington County NAACP v. Mount Laurel, 92 N.J. 158 (1983), has determined that every municipality in a growth area has
a constitutional obligation to provide through its land use regulations a realistic opportunity for a
fair share of its region's present and prospective needs for housing for low and moderate income
families.

b. In the second Mount Laurel ruling, the Supreme Court stated that the determination of the
methods for satisfying this constitutional obligation "is better left to the Legislature," that the court
has "always preferred legislative to judicial action in their field," and that the judicial role in
upholding the Mount Laurel doctrine "could decrease as a result of legislative and executive
action."

c. 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.

d. There are a number of essential ingredients to a comprehensive planning and implementation
response, including the establishment of reasonable fair share housing guidelines and standards,
the initial determination of fair share by officials at the municipal level and the preparation of a
municipal housing element, State review of the local fair share study and housing element, and
continuous State funding for low and moderate income housing to replace the federal housing
subsidy programs which have been almost completely eliminated.

e. The State can maximize the number of low and moderate income units provided in New Jersey
by allowing its municipalities to adopt appropriate phasing schedules for meeting their fair share,
so long as the municipalities permit a timely achievement of an appropriate fair share of the
regional need for low and moderate income housing as required by the Mt. Laurel I and II
opinions.

f. The State can also maximize the number of low and moderate income units by rehabilitating
existing, but substandard, housing in the State, and, in order to achieve this end, it is appropriate to
permit the transfer of a limited portion of the fair share obligations among municipalities in a
housing region, so long as the transfer occurs on the basis of sound, comprehensive planning, with
regard to an adequate housing financing plan, and in relation to the access of low and moderate
income households to employment opportunities.

g. Since the urban areas are vitally important to the State, construction, conversion and
rehabilitation of housing in our urban centers should be encouraged. However, the provision of
housing in urban areas must be balanced with the need to provide housing throughout the State for
the free mobility of citizens.

h. The Supreme Court of New Jersey in its Mount Laurel decisions demands that municipal land
use regulations affirmatively afford a reasonable opportunity for a variety and choice of housing including low and moderate cost housing, to meet the needs of people desiring to live there. While provision for the actual construction of that housing by municipalities is not required, they are encouraged but not mandated to expend their own resources to help provide low and moderate
income housing.

L. 1985, c. 222, s. 2, eff. July 2, 1985, operative July 2, 1985.

52:27D-303. Declarations

The Legislature declares that the statutory scheme set forth in this act is in the public interest in
that it comprehends a low and moderate income housing planning and financing mechanism in
accordance with regional considerations and sound planning concepts which satisfies the
constitutional obligation enunciated by the Supreme Court. The Legislature declares that the
State's preference for the resolution of existing and future disputes involving exclusionary zoning
is the mediation and review process set forth in this act and not litigation, and that it is the
intention of this act to provide various alternatives to the use of the builder's remedy as a method
of achieving fair share housing.

L. 1985, c. 222, s. 3, eff. July 2, 1985, operative July 2, 1985.

52:27D-304. Definitions

As used in this act:

a. "Council" means the Council on Affordable Housing established in this act, which shall have
primary jurisdiction for the administration of housing obligations in accordance with sound regional
planning considerations in this State.

b. "Housing region" means a geographic area of not less than two nor more than four contiguous,
whole counties which exhibit significant social, economic and income similarities, and which
constitute to the greatest extent practicable the primary metropolitan statistical areas as last
defined by the United States Census Bureau prior to the effective date of this act.

c. "Low income housing" means housing affordable according to federal Department of Housing
and Urban Development or other recognized standards for home ownership and rental costs and
occupied or reserved for occupancy by households with a gross household income equal to 50%
or less of the median gross household income for households of the same size within the housing
region in which the housing is located.

d. "Moderate income housing" means housing affordable according to federal Department of
Housing and Urban Development or other recognized standards for home ownership and rental
costs and occupied or reserved for occupancy by households with a gross household income
equal to more than 50% but less than 80% of the median gross household income for households
of the same size within the housing region in which the housing is located.

e. "Resolution of participation" means a resolution adopted by a municipality in which the
municipality chooses to prepare a fair share plan and housing element in accordance with this act.
 
f. "Inclusionary development" means a residential housing development in which a substantial
percentage of the housing units are provided for a reasonable income range of low and moderate
income households.

g. "Conversion" means the conversion of existing commercial, industrial, or residential structures
for low and moderate income housing purposes where a substantial percentage of the housing
units are provided for a reasonable income range of low and moderate income households.

h. "Development" means any development for which permission may be required pursuant to the
"Municipal Land Use Law," P.L. 1975, c. 291 (C. 40:55D-1 et seq.).

i. "Agency" means the New Jersey Mortgage and Housing Finance Agency established by P.L.
1983, c. 530 (C. 55:14K-1 et seq.).

j. "Prospective need" means a projection of housing needs based on development and growth
which is reasonably likely to occur in a region or a municipality, as the case may be, as a result of
actual determination of public and private entities. In determining prospective need, consideration
shall be given to approvals of development applications, real property transfers and economic
projections prepared by the State Planning Commission established by sections 1 through 12 of
P.L. 1985, c. 398 (C. 52:18A-196 et seq.).

L. 1985, c. 222, s. 4, eff. July 2, 1985, operative July 2, 1985.

52:27D-305. Council on Affordable Housing established

 a.  There is established in, but not of, the Department of Community Affairs a Council on
Affordable Housing to consist of 11 members appointed by the Governor with the advice and
consent of the Senate, of whom four shall be elected officials representing the interests of local
government, at least one of whom shall be representative of an urban municipality having a
population in excess of 40,000 persons and a population density in excess of 3,000 persons per
square mile, at least one of whom shall be representative of a municipality having a population of
40,000 persons or less and a population density of 3,000 persons per square mile or less, and no
more than one of whom may be a representative of the interests of county government; three
shall represent the interests of households in need of low and moderate housing, one of whom
shall represent the interests of the nonprofit builders of low and moderate income housing, and
shall have an expertise in land use practices and housing issues, one of whom shall be the
Commissioner of Community Affairs, ex officio, or his or her designee, who shall serve as
chairperson and one of whom shall be the executive director of the agency, serving ex officio;
one shall represent the interests of the for-profit builders of market rate homes, and shall have an
expertise in land use practices and housing issues; and three shall represent the public interest.
Not more than six of the 11 shall be members of the same political party. The membership shall
be balanced to the greatest extent practicable among the various housing regions of the State.

b.  The members shall serve for terms of six years, except that of the members first appointed,
two shall serve for terms of four years, three for terms of five years, and three for terms of six
years. All members shall serve until their respective successors are appointed and shall have
qualified. Notwithstanding the above, a member appointed to represent the interests of local
government shall serve only such length of the term for which appointed as the member continues
to hold elected local office, except that the term of a member so appointed shall not become
vacant until 60 days after the member ceases to hold that elected office. Vacancies shall be filled
in the same manner as the original appointments, but for the remainders of the unexpired terms
only.

c. The members, excluding the executive director of the agency and the Commissioner of
Community Affairs, shall be compensated at the rate of $150.00 for each six-hour day, or
prorated portion thereof for more or less than six hours, spent in attendance at meetings and
consultations and all members shall be eligible for reimbursement for necessary expenses incurred
in connection with the discharge of their duties.

d. The Governor shall nominate the members within 30 days of the effective date of this act and
shall designate a member to serve as chairman throughout the member's term of office and until
his successor shall have been appointed and qualified.

e. Any member may be removed from office for misconduct in office, willful neglect of duty, or
other conduct evidencing unfitness for the office, or for incompetence. A proceeding for removal
may be instituted by the Attorney General in the Superior Court. A member or employee of the
council shall automatically forfeit his office or employment upon conviction of any crime. Any
member or employee of the council shall be subject to the duty to appear and testify and to
removal from his office or employment in accordance with the provisions of P.L.1970, c.72
(C.2A:81-17.2a et seq.).

L.1985,c.222,s.5; amended 1989,c.199; 1995,c.83,s.1.

52:27D-306. Vice-chairman, executive director; other personnel

a. The council may establish, and from time to time alter, such plan of organization as it may
deem expedient, and may incur expenses within the limits of funds available to it.

b. The council shall elect annually by a majority of its members one of its members, other than the
chairman, to serve as vice-chairman for a term of one year and until his successor is elected. The
vice-chairman shall carry out all of the responsibilities of the chairman as prescribed in this act
during the chairman's absence, disqualification or inability to serve.

c. The council shall appoint and fix the salary of an executive director who shall serve at its
pleasure. The council may employ such other personnel as it deems necessary. All employees of
the council shall be in the unclassified service of the Civil Service. The council may employ legal
counsel who shall represent it in any proceeding to which it is a party, and who shall render legal
advice to the counciL. The council may contract for the services of other professional, technical
and operational personnel and consultants as may be necessary to the performance of its duties.
Employees shall be enrolled in the Public Employees' Retirement System of New Jersey
established under P.L. 1954, c. 84 (C. 43:15A-1 et seq.).

L. 1985, c. 222, s. 6, eff. July 2, 1985, operative July 2, 1985.

52:27D-307.Duties of council

    It shall be the duty of the council, seven months after the confirmation of the last
member initially appointed to the council, or January 1, 1986, whichever is earlier, and from time
to time thereafter, to:

    a. Determine housing regions of the State;

    b. Estimate the present and prospective need for low and moderate income housing at
the State and regional levels;

    c. Adopt criteria and guidelines for:

    (1) Municipal determination of its present and prospective fair share of the housing
need in a given region. Municipal fair share shall be determined after crediting on a one-to-one
basis each current unit of low and moderate income housing of adequate standard, including any
such housing constructed or acquired as part of a housing program specifically intended to provide
housing for low and moderate income households. Notwithstanding any other law to the contrary,
a municipality shall be entitled to a credit for a unit if it demonstrates that (a) the municipality
issued a certificate of occupancy for the unit, which was either newly constructed or rehabilitated
between April 1, 1980 and December 15, 1986; (b) a construction code official certifies, based
upon a visual exterior survey, that the unit is in compliance with pertinent construction code
standards with respect to structural elements, roofing, siding, doors and windows; (c) the
household occupying the unit certifies in writing, under penalty of perjury, that it receives no
greater income than that established pursuant to section 4 of P.L.1985, c.222 (C.52:27D-304) to
qualify for moderate income housing; and (d) the unit for which credit is sought is affordable to
low and moderate income households under the standards established by the council at the time of
filing of the petition for substantive certification. It shall be sufficient if the certification required in
subparagraph (c) is signed by one member of the household. A certification submitted pursuant to
this paragraph shall be reviewable only by the council or its staff and shall not be a public record;

    Nothing in P.L.1995, c.81 shall affect the validity of substantive certification granted by the
council prior to November 21, 1994, or to a judgment of compliance entered by any court of
competent jurisdiction prior to that date. Additionally, any municipality that received substantive
certification or a judgment of compliance prior to November 21, 1994 and filed a motion prior to
November 21, 1994 to amend substantive certification or a judgment of compliance for the
purpose of obtaining credits, shall be entitled to a determination of its right to credits pursuant to
the standards established by the Legislature prior to P.L.1995, c.81. Any municipality that filed a
motion prior to November 21, 1994 for the purpose of obtaining credits, which motion was
supported by the results of a completed survey performed pursuant to council rules, shall be
entitled to a determination of its right to credits pursuant to the standards established by the
Legislature prior to P.L.1995, c.81;

    (2) Municipal adjustment of the present and prospective fair share based upon available
vacant and developable land, infrastructure considerations or environmental or historic
preservation factors and adjustments shall be made whenever:

    (a) The preservation of historically or important architecture and sites and their
environs or environmentally sensitive lands may be jeopardized,

    (b) The established pattern of development in the community would be drastically
altered,

    (c) Adequate land for recreational, conservation or agricultural and farmland
preservation purposes would not be provided,

    (d) Adequate open space would not be provided,

    (e) The pattern of development is contrary to the planning designations in the State
Development and Redevelopment Plan prepared pursuant to sections 1 through 12 of P.L.1985,
c.398 (C.52:18A-196 et seq.),

    (f) Vacant and developable land is not available in the municipality, and

    (g) Adequate public facilities and infrastructure capacities are not available, or would
result in costs prohibitive to the public if provided; and

    (3) (Deleted by amendment, P.L.1993, c.31);

    d. Provide population and household projections for the State and housing regions;

    e. In its discretion, place a limit, based on a percentage of existing housing stock in a
municipality and any other criteria including employment opportunities which the council deems
appropriate, upon the aggregate number of units which may be allocated to a municipality as its
fair share of the region's present and prospective need for low and moderate income housing. No
municipality shall be required to address a fair share beyond 1,000 units within six years from the
grant of substantive certification, unless it is demonstrated, following objection by an interested
party and an evidentiary hearing, based upon the facts and circumstances of the affected
municipality that it is likely that the municipality through its zoning powers could create a realistic
opportunity for more than 1,000 low and moderate income units within that six-year period. For
the purposes of this section, the facts and circumstances which shall determine whether a
municipality's fair share shall exceed 1,000 units, as provided above, shall be a finding that the
municipality has issued more than 5,000 certificates of occupancy for residential units in the
six-year period preceding the petition for substantive certification in connection with which the
objection was filed.

    For the purpose of crediting low and moderate income housing units in order to arrive at a
determination of present and prospective fair share, as set forth in paragraph (1) of subsection c.
of this section, housing units comprised in a community residence for the developmentally
disabled, as defined in section 2 of P.L.1977, c.448 (C.30:11B-2), shall be fully credited pursuant
to rules promulgated or to be promulgated by the council, to the extent that the units are
affordable to persons of low and moderate income and are available to the general public.

    In carrying out the above duties, including, but not limited to, present and prospective need
estimations the council shall give appropriate weight to pertinent research studies, government
reports, decisions of other branches of government, implementation of the State Development and
Redevelopment Plan prepared pursuant to sections 1 through 12 of P.L.1985, c.398
(C.52:18A-196 et seq.) and public comment. To assist the council, the State Planning Commission
established under that act shall provide the council annually with economic growth, development
and decline projections for each housing region for the next six years. The council shall develop
procedures for periodically adjusting regional need based upon the low and moderate income
housing that is provided in the region through any federal, State, municipal or private housing
program.

    L.1985,c.222,s.7; amended 1993,c.31,s.1; 1993,c.104; 1995,c.81; 1995,c.344,s.1.

52:27D-307.1. Definitions

1. As used in this act:

"Agency" means the Housing and Mortgage Finance Agency established pursuant to section 4 of
the "New Jersey Housing and Mortgage Finance Agency Law of 1983," P.L.1983, c.530
(C.55:14K-4).

"Commissioner" means the Commissioner of Community Affairs.

"Council" means the Council on Affordable Housing created by the "Fair Housing Act,"
P.L.1985, c.222 (C.52:27D-301 et al.)

"Department" means the Department of Community Affairs.

"Housing region" means a housing region as determined by the Council on Affordable Housing
pursuant to section 7 of P.L.1985, c.222 (C.52:27D-307).

"Project" or "housing project" means any specific work or undertaking for the purpose of
providing housing accommodations, whether by new construction or by rehabilitation or adaptation
of existing structures, that shall be affordable to persons and families of low or moderate income
within the meaning of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). Such
work or undertaking may include the acquisition, construction or rehabilitation of lands, buildings
and improvements, and such stores, offices, and social, recreational, communal or other facilities
as may be incidental or appurtenant to the housing accommodations that are to be provided.

"Register" means the Register of Housing Projects directed by section 2 of this act to be
established and maintained by the commissioner.

L.1991,c.479,s.1.

52:27D-307.2. Register of Housing Projects, requirements, reports

a. The commissioner shall cause to be established and kept a Register of Housing Projects.
The register shall list all projects for which proposal or application has been submitted for
assistance under any program of loans, grants or other financial aid administered by the
department, including programs administered by the agency, or for which the offices of the
department have been solicited in furthering an application for such assistance from any other
program of like nature administered by another agency or instrumentality of the State or of the
United States government.

b. The register shall identify each such project by name and location, and shall identify the
proposed sponsor or developer thereof. If the proposed sponsor or developer is a corporation,
association or partnership, the register shall identify by name and address each stockholder,
member or partner whose participation therein represents an equity interest exceeding five
percent. No application or proposal relating to a project for which the information required by this
subsection is not made available to the commissioner shall be received or entertained by the
department or any division, bureau, officer or employee thereof, or by the agency; nor shall any
action upon such application or proposal heretofore received or entertained be taken after the
effective date of this act until the required information is made available to the commissioner.

c. The commissioner shall, not later than the 90th day next following the effective date of this act,
file with the Governor and Legislature a copy of the register upon its compilation in accordance
with this section, and thereafter shall promptly report to the Governor and Legislature any
additional projects to be included therein. The register and subsequent reports shall include for
each project the priority designation assigned to it pursuant to section 3 of this act. The register
and subsequent supplements pursuant to this subsection shall be filed with the Secretary of the
Senate and Clerk of the General Assembly, and shall be a public record.

L.1991,c.479,s.2.

52:27D-307.3. Priority ratings of projects

a. The commissioner shall cause to be developed a system for assigning and designating
priority ratings to each project included in the register. Priority ratings shall be based upon the
following factors, giving to each factor such weight as the commissioner shall judge to be
appropriate:

(1) Feasibility. Each project shall be evaluated for its physical and financial feasibility, giving
consideration to the capabilities of the proposed sponsor or developer, market conditions and
regulatory requirements in the locality for which it is proposed, and the availability of financing in
sufficient amount and at reasonable cost.

(2) Desirability. Each project shall be evaluated with relation to its probable effect in meeting the
affordable housing needs of the housing region in which it is to be located, in accordance with the
standards and criteria of the council. Consideration shall be given to (a) the number of affordable
dwelling units that the project would provide, (b) the proportion of affordable units to the total
number of units envisaged in the project plan, (c) the distribution of those affordable units as
between those affordable to persons and families of low income and those of moderate income,
considered in relation to the needs of the housing region, (d) appropriateness of the proposed
tenure of the affordable units, whether to be rental or owner-occupied, in relation to the needs of
the housing region, and (e) appropriateness of the proposed distribution of units as to family size,
in relation to the needs of the housing region.

(3) Efficiency. Each project shall be evaluated on the basis of the cost to the State, in terms of
financial assistance granted or revenue forgone in order to further the project, for each affordable
dwelling unit judged by the commissioner to be feasible and desirable according to the terms of
the proposal or application made for such assistance.

b. In developing the system of assigning and designating priorities, and in evaluating individual
projects for such assignment and designation in the register, the commissioner shall consult with
the executive director of the agency and the executive director of the council. The council and the
agency shall promptly and fully supply the commissioner with all relevant information necessary
for the commissioner's timely and complete fulfillment of the requirements of this act.

L.1991,c.479,s.3.

52:27D-307.4. Reports of communications in furtherance of projects

a. Any officer or employee of the department, including any member, officer or employee of
the agency or the council, who receives from any person any solicitation, application, proposal or
communication of any kind, whether oral or in writing, aimed at furthering the assistance of any
project shall promptly report the same to the commissioner. The report shall identify the person or
persons making such communication. If any such person is not identified in the register in
accordance with the requirements of subsection b. of section 2 of this act, the report shall state
the person's relationship to the sponsor or developer of the project and the capacity in which the
person represents himself or herself to be acting on behalf of the sponsor or developer; or if the
person fails or refuses to supply that information, the report shall so state.

b. The commissioner shall develop a procedure or procedures by which reports required under
subsection a. of this section shall be made either to the commissioner directly or through such
administrative channels as the commissioner shall devise and direct. Notwithstanding the
provisions of subsection i. of section 4 of P.L.1983, c.530 (C.55:14K-4) and subsection a. of
section 5 of P.L.1985, c.222 (C.52:27D-305), the regulations adopted by the commissioner in
fulfillment of this subsection shall be of full force and application on and within the agency and the
council; and all members, officers and employees of the agency and council shall give full
compliance with and obedience to the rules and orders of the commissioner made in pursuance of
his duties and responsibilities under this act.

c. Reports made to the commissioner shall be promptly forwarded by him, not later than 10 days
after their receipt, to the Governor and to the presiding officers of the Houses of the Legislature,
who shall cause all members of their respective Houses to be notified of the receipt of those
reports and shall make adequate provision for the inspection of the commissioner's reports by
members and committees of either House, and for the dissemination of those reports to the public.
The reports forwarded by the commissioner shall in each instance indicate the priority rating that
has been assigned in the register to the project to which the report relates.

L.1991,c.479,s.4.

52:27D-307.5 Rules, regulations

    The commissioner shall adopt and promulgate, in accordance with the provisions of the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), all rules and regulations
necessary or expedient for the prompt and effective carrying out of the provisions and purposes
of this act.

L.1991,c.479,s.5.

52:27D-308. Procedural rules

Within four months after the confirmation of the last member initially appointed to the council, or
January 1, 1986, whichever is earlier, the council shall, in accordance with the "Administrative
Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.), propose procedural rules.

L. 1985, c. 222, s. 8, eff. July 2, 1985, operative July 2, 1985.

52:27D-309. Municipal housing element

a. Within four months after the effective date of this act, each municipality which so elects shall,
by a duly adopted resolution of participation, notify the council of its intent to submit to the council
its fair share housing plan. Within five months after the council's adoption of its criteria and
guidelines, the municipality shall prepare and file with the council a housing element, based on the
council's criteria and guidelines, and any fair share housing ordinance introduced and given first
reading and second reading in a hearing pursuant to R.S. 40:49-2 which implements the housing
element.

b. A municipality which does not notify the council of its participation within four months may do
so at any time thereafter. In any exclusionary zoning litigation instituted against such a
municipality, however, there shall be no exhaustion of administrative remedy requirements
pursuant to section 16 of this act unless the municipality also files its fair share plan and housing
element with the council prior to the institution of the litigation.

L. 1985, c. 222, s. 9, eff. July 2, 1985, operative July 2, 1985.

52:27D-310. Essential components

A municipality's housing element shall be designed to achieve the goal of access to affordable
housing to meet present and prospective housing needs, with particular attention to low and
moderate income housing, and shall contain at least:

a. An inventory of the municipality's housing stock by age, condition, purchase or rental value,
occupancy characteristics, and type, including the number of units affordable to low and moderate
income households and substandard housing capable of being rehabilitated, and in conducting this
inventory the municipality shall have access, on a confidential basis for the sole purpose of
conducting the inventory, to all necessary property tax assessment records and information in the
assessor's office, including but not limited to the property record cards;

b. A projection of the municipality's housing stock, including the probable future construction of
low and moderate income housing, for the next six years, taking into account, but not necessarily
limited to, construction permits issued, approvals of applications for development and probable
residential development of lands;

c. An analysis of the municipality's demographic characteristics, including but not necessarily
limited to, household size, income level and age;

d. An analysis of the existing and probable future employment characteristics of the municipality;

e. A determination of the municipality's present and prospective fair share for low and moderate
income housing and its capacity to accommodate its present and prospective housing needs,
including its fair share for low and moderate income housing; and

f. A consideration of the lands that are most appropriate for construction of low and moderate
income housing and of the existing structures most appropriate for conversion to, or rehabilitation
for, low and moderate income housing, including a consideration of lands of developers who have
expressed a commitment to provide low and moderate income housing.

L. 1985, c. 222, s. 10, eff. July 2, 1985, operative July 2, 1985.

52:27D-310.1 Computing municipal adjustment, exclusions

    1. When computing a municipal adjustment regarding available land resources as part of the
determination of a municipality's fair share of affordable housing, the Council on Affordable
Housing shall exclude from designating as vacant land (a) any land that is owned by a local
government entity that as of January 1, 1997, has adopted, prior to the institution of a lawsuit
seeking a builder's remedy or prior to the filing of a petition for substantive certification of a
housing element and fair share plan, a resolution authorizing an execution of agreement that the
land be utilized for a public purpose other than housing; (b) any land listed on a master plan of a
municipality as being dedicated, by easement or otherwise, for purposes of conservation, park
lands or open space and which is owned , leased, licensed, or in any manner operated by a
county, municipality or tax-exempt, nonprofit organization including a local board of education , or
by more than one municipality by joint agreement pursuant to P.L.1964, c.185 (C.40:61-35.1 et
seq.), for so long as the entity maintains such ownership, lease, license, or operational control of
such land ; and (c) any vacant contiguous parcels of land in private ownership of a size which
would accommodate fewer than five housing units if current standards of the council were
applied pertaining to housing density. No municipality shall be required to utilize for affordable
housing purposes land that is excluded from being designated as vacant land .

    L.1995,c.231,s.1; amended 1997, c.49.

52:27D-310.2 Reservation of park land

   Notwithstanding any law or regulation to the contrary, nothing shall preclude a  municipality
which has reserved less than three percent of its land area for conservation, park
lands or open space under the standards set forth in section 1 of this act from reserving up to
three percent of its land area for those purposes. Nothing herein is intended to alter the
responsibilities of municipalities with respect to plans already approved which were based upon
the right to a vacant land adjustment.

    L.1995,c.231,s.2.

52:27D-311.Provision of fair share by municipality

     a. In adopting its housing element, the municipality may provide for its fair share of low
and moderate income housing by means of any technique or combination of techniques which
provide a realistic opportunity for the provision of the fair share. The housing element shall
contain an analysis demonstrating that it will provide such a realistic opportunity, and the
municipality shall establish that its land use and other relevant ordinances have been revised to
incorporate the provisions for low and moderate income housing. In preparing the housing
element, the municipality shall consider the following techniques for providing low and moderate
income housing within the municipality, as well as such other techniques as may be published by
the council or proposed by the municipality:

    (1) Rezoning for densities necessary to assure the economic viability of any
inclusionary developments, either through mandatory set-asides or density bonuses, as may be
necessary to meet all or part of the municipality's fair share;

    (2) Determination of the total residential zoning necessary to assure that the
municipality's fair share is achieved;

    (3) Determination of measures that the municipality will take to assure that low and
moderate income units remain affordable to low and moderate income households for an
appropriate period of not less than six years;

    (4) A plan for infrastructure expansion and rehabilitation if necessary to assure the
achievement of the municipality's fair share of low and moderate income housing;

    (5) Donation or use of municipally owned land or land condemned by the municipality
for purposes of providing low and moderate income housing;

    (6) Tax abatements for purposes of providing low and moderate income housing;

    (7) Utilization of funds obtained from any State or federal subsidy toward the
construction of low and moderate income housing; and

    (8) Utilization of municipally generated funds toward the construction of low and
moderate income housing.

    b. The municipality may provide for a phasing schedule for the achievement of its fair
share of low and moderate income housing which is not inconsistent with section 23 of this act.

    c. The municipality may propose that a portion of its fair share be met through a
regional contribution agreement. The housing element shall demonstrate, however, the manner in
which that portion will be provided within the municipality if the regional contribution agreement is
not entered into. The municipality shall provide a statement of its reasons for the proposal.

    d. Nothing in this act shall require a municipality to raise or expend municipal revenues
in order to provide low and moderate income housing.

    e. When a municipality's housing element includes the provision of rental housing units
in a community residence for the developmentally disabled, as defined in section 2 of P.L.1977,
c.448 (C.30:11B-2), which will be affordable to persons of low and moderate income, and for
which adequate measures to retain such affordability pursuant to paragraph (3) of subsection a.
of this section are included in the housing element, those housing units shall be fully credited as
permitted under the rules of the council towards the fulfillment of the municipality's fair share of
low and moderate income housing.

    L.1985,c.222,s.11; amended 1995,c.344,s.2.

52:27D-311.1. Demolition invalidated

Nothing in the act to which this act is supplementary, P.L.1985, c.222 (C.52:27D-301 et al.), shall
be construed to require that a municipality fulfill all or any portion of its fair share housing
obligation through permitting the development or redevelopment of property within the
municipality on which is located a residential structure which has not been declared unfit, or
which was within the previous three years negligently or willfully rendered unfit, for human
occupancy or use pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.), and which is situated on a lot
of less than two acres of land or on a lot formed by merging two or more such lots, if the
development or redevelopment would require the demolition of that structure. Any action
heretofore taken by the Council on Affordable Housing based upon such a construction of
P.L.1985, c.222 is invalidated.

L.1989,c.142,s.1.

52:27D-312. Regional contribution agreements

a.  A municipality may propose the transfer of up to 50% of its fair share to another
municipality within its housing region by means of a contractual agreement into which two
municipalities voluntarily enter. A municipality may also propose a transfer by contracting with the
agency or another governmental entity designated by the council if the council determines that the
municipality has exhausted all possibilities within its housing region. A municipality proposing to
transfer to another municipality, whether directly or by means of a contract with the agency or
another governmental entity designated by the council, shall provide the council with the housing
element and statement required under subsection c. of section 11 of P.L.1985, c.222
(C.52:27D-311), and shall request the council to determine a match with a municipality filing a
statement of intent pursuant to subsection e. of this section. Except as provided in subsection b. of
this section, the agreement may be entered into upon obtaining substantive certification under
section 14 of P.L.1985, c.222 (C.52:27D-314), or anytime thereafter. The regional contribution
agreement entered into shall specify how the housing shall be provided by the second municipality,
hereinafter the receiving municipality, and the amount of contributions to be made by the first
municipality, hereinafter the sending municipality.

b.  A municipality which is a defendant in an exclusionary zoning suit and which has not obtained
substantive certification pursuant to this act may request the court to be permitted to fulfill a
portion of its fair share by entering into a regional contribution agreement. If the court believes the
request to be reasonable, the court shall request the council to review the proposed agreement
and to determine a match with a receiving municipality or municipalities pursuant to this section.
The court may establish time limitations for the council's review, and shall retain jurisdiction over
the matter during the period of council review. If the court determines that the agreement
provides a realistic opportunity for the provision of low and moderate income housing within the
housing region, it shall provide the sending municipality a credit against its fair share for housing to
be provided through the agreement in the manner provided in this section.

The agreement shall be entered into prior to the entry of a final judgment in the litigation. In cases
in which a final judgment was entered prior to the date this act takes effect and in which an
appeal is pending, a municipality may request consideration of a regional contribution agreement;
provided that it is entered into within 120 days after this act takes effect. In a case in which a
final judgment has been entered, the court shall consider whether or not the agreement constitutes
an expeditious means of providing part of the fair share.

c. Regional contribution agreements shall be approved by the council, after review by the county
planning board or agency of the county in which the receiving municipality is located. The council
shall determine whether or not the agreement provides a realistic opportunity for the provision of
low and moderate income housing within convenient access to employment opportunities. The
council shall refer the agreement to the county planning board or agency which shall review
whether or not the transfer agreement is in accordance with sound, comprehensive regional
planning. In its review, the county planning board or agency shall consider the master plan and
zoning ordinance of the sending and receiving municipalities, its own county master plan, and the
State development and redevelopment plan. In the event that there is no county planning board or
agency in the county in which the receiving municipality is located, the council shall also
determine whether or not the agreement is in accordance with sound, comprehensive regional
planning. After it has been determined that the agreement provides a realistic opportunity for low
and moderate income housing within convenient access to employment opportunities, and that the
agreement is consistent with sound, comprehensive regional planning, the council shall approve
the regional contribution agreement by resolution. All determinations of a county planning board or
agency shall be in writing and shall be made within such time limits as the council may prescribe,
beyond which the council shall make those determinations and no fee shall be paid to the county
planning board or agency pursuant to this subsection.

d. In approving a regional contribution agreement, the council shall set forth in its resolution a
schedule of the contributions to be appropriated annually by the sending municipality. A copy of
the adopted resolution shall be filed promptly with the Director of the Division of Local
Government Services in the Department of Community Affairs, and the director shall thereafter
not approve an annual budget of a sending municipality if it does not include appropriations
necessary to meet the terms of the resolution. Amounts appropriated by a sending municipality for
a regional contribution agreement pursuant to this section are exempt from the limitations or
increases in final appropriations imposed under P.L.1976, c.68 (C.40A:4-45.1 et seq.).

e. The council shall maintain current lists of municipalities which have stated an intent to enter
into regional contribution agreements as receiving municipalities, and shall establish procedures for
filing statements of intent with the council. No receiving municipality shall be required to accept a
greater number of low and moderate income units through an agreement than it has expressed a
willingness to accept in its statement, but the number stated shall not be less than a reasonable
minimum number of units, not to exceed 100, as established by the council. The council shall
require a project plan from a receiving municipality prior to the entering into of the agreement, and
shall submit the project plan to the agency for its review as to the feasibility of the plan prior to
the council's approval of the agreement. The agency may recommend and the council may
approve as part of the project plan a provision that the time limitations for contractual guarantees
or resale controls for low and moderate income units included in the project shall be less than 30
years, if it is determined that modification is necessary to assure the economic viability of the
project.

f. The council shall establish guidelines for the duration and amount of contributions in regional
contribution agreements. In doing so, the council shall give substantial consideration to the
average of: (1) the median amount required to rehabilitate a low and moderate income unit up to
code enforcement standards; (2) the average internal subsidization required for a developer to
provide a low income housing unit in an inclusionary development; (3) the average internal
subsidization required for a developer to provide a moderate income housing unit in an
inclusionary development. Contributions may be prorated in municipal appropriations occurring
over a period not to exceed six years and may include an amount agreed upon to compensate or
partially compensate the receiving municipality for infrastructure or other costs generated to the
receiving municipality by the development. Appropriations shall be made and paid directly to the
receiving municipality or municipalities or to the agency or other governmental entity designated
by the council, as the case may be.

g. The council shall require receiving municipalities to file annual reports with the agency setting
forth the progress in implementing a project funded under a regional contribution agreement, and
the agency shall provide the council with its evaluation of each report. The council shall take such
actions as may be necessary to enforce a regional contribution agreement with respect to the
timely implementation of the project by the receiving municipality.

L.1985,c.222,s.12; amended 1995,c.83,s.2.

52:27D-313. Petition for substantive certification

a. A municipality which has filed a housing element may, at any time during a two-year period
following the filing of the housing element, petition the council for a substantive certification of its
element and ordinances or institute an action for declaratory judgment granting it six-year repose
in the Superior Court. The municipality shall publish notice of its petition in a newspaper of
general circulation within the municipality and county and shall make available to the public
information on the element and ordinances in accordance with such procedures as the council
shall establish. The council shall also establish a procedure for providing public notice of each
petition which it receives.

b. Notwithstanding the provisions of subsection a. of this section, a municipality which filed a
housing element prior to the effective date of this 1990 amendatory act, shall be permitted to
petition for substantive certification at any time within two years following that filing, or within one
year following the effective date of this 1990 amendatory act, whichever shall result in permitting
the municipality the longer period of time within which to petition.

L.1985,c.222,s.13; amended 1990,c.121,s.1.

52:27D-313.1. Previous application for development

The Council on Affordable Housing shall not consider for substantive certification any application
of a housing element submitted which involves the demolition of a residential structure, which has
not been declared unfit, or which was within the previous three years negligently or willfully
rendered unfit, for human occupancy or use pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.),
and which is situated on a lot of less than two acres of land or on a lot formed by merging two or
more such lots, unless an application for development has been previously approved by the
municipal planning board or municipal zoning board pursuant to procedures prescribed by the
"Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.).

L.1989,c.142,s.2.

52:27D-314. Issuance of certification

Unless an objection to the substantive certification is filed with the council by any person within
45 days of the publication of the notice of the municipality's petition, the council shall review the
petition and shall issue a substantive certification if it shall find that:

a. The municipality's fair share plan is consistent with the rules and criteria adopted by the council
and not inconsistent with achievement of the low and moderate income housing needs of the
region as adjusted pursuant to the council's criteria and guidelines adopted pursuant to subsection
c. of section 7 of this act; and

b. The combination of the elimination of unnecessary housing cost-generating features from the
municipal land use ordinances and regulations, and the affirmative measures in the housing
element and implementation plan make the achievement of the municipality's fair share of low and
moderate income housing realistically possible after allowing for the implementation of any
regional contribution agreement approved by the council.

In conducting its review, the council may meet with the municipality and may deny the petition or
condition its certification upon changes in the element or ordinances. Any denial or conditions for
approval shall be in writing and shall set forth the reasons for the denial or conditions. If, within 60
days of the council's denial or conditional approval, the municipality refiles its petition with
changes satisfactory to the council, the council shall issue a substantive certification.

Once substantive certification is granted, the municipality shall have 45 days in which to adopt its
fair share housing ordinance approved by the council.

L. 1985, c. 222, s. 14, eff. July 2, 1985, operative July 2, 1985.

52:27D-315. Mediation, review process

a. The council shall engage in a mediation and review process in the following situations: (1) if an
objection to the municipality's petition for substantive certification is filed with the council within
the time specified in section 14 of this act; or (2) if a request for mediation and review is made
pursuant to section 16 of this act.

b. In cases in which an objection is filed to substantive certification the council shall meet with the
municipality and the objectors and attempt to mediate a resolution of the dispute. If the mediation
is successful, the council shall issue a substantive certification if it finds that the criteria of section
14 of this act have been met.

c. If the mediation efforts are unsuccessful, the matter shall be transferred to the Office of
Administrative Law as a contested case as defined in the "Administrative Procedure Act," P.L.
1968, c. 410 (C. 52:14B-1 et seq.).

The Office of Administrative Law shall expedite its hearing process as much as practicable by
promptly assigning an administrative law judge to the matter; promptly scheduling an evidentiary
hearing; expeditiously conducting and concluding the evidentiary hearing; limiting the time allotted
for briefs, proposed findings of fact, conclusions of law, forms of order or other disposition, or
other supplemental material; and the prompt preparation of the initial decision. A written transcript
of all oral testimony and copies of all exhibits introduced into evidence shall be submitted to the
council by the Office of Administrative Law simultaneously with a copy of the initial decision.
The evidentiary hearings shall be concluded and the initial decision issued no later than 90 days
after the transmittal of the matter as a contested case to the Office of Administrative Law by the
council, unless the time is extended by the Director of the Office of Administrative Law for good
cause shown.

L. 1985, c. 222, s. 15, eff. July 2, 1985, operative July 2, 1985.

52:27D-316. Motion for transfer

a.  For those exclusionary zoning cases instituted more than 60 days before the effective date of this
act, any party to the litigation may file a motion with the court to seek a transfer of the case to the
counciL. In determining whether or not to transfer, the court shall consider whether or not the
transfer would result in a manifest injustice to any party to the litigation. If the municipality fails to
file a housing element and fair share plan with the council within five months from the date of
transfer, or promulgation of criteria and guidelines by the council pursuant to section 7 of this act,
whichever occurs later, jurisdiction shall revert to the court.

b. Any person who institutes litigation less than 60 days before the effective date of this act or
after the effective date of this act challenging a municipality's zoning ordinance with respect to
the opportunity to provide for low or moderate income housing, shall file a notice to request
review and mediation with the council pursuant to sections 14 and 15 of this act. In the event that
the municipality adopts a resolution of participation within the period established in subsection a.
of section 9 of this act, the person shall exhaust the review and mediation process of the council
before being entitled to a trial on his complaint.

L. 1985, c. 222, s. 16, eff. July 2, 1985, operative July 2, 1985.

52:27D-317. Presumption of validity

a. In any exclusionary zoning case filed against a municipality which has a substantive
certification and in which there is a requirement to exhaust the review and mediation process
pursuant to section 16 of this act, there shall be a presumption of validity attaching to the housing
element and ordinances implementing the housing element. To rebut the presumption of validity,
the complainant shall have the burden of proof to demonstrate by clear and convincing evidence
that the housing element and ordinances implementing the housing element do not provide a
realistic opportunity for the provision of the municipality's fair share of low and moderate income
housing after allowing for the implementation of any regional contribution agreement approved by
the council.

b. There shall be a presumption of validity attaching to any regional contribution agreement
approved by the council. To rebut the presumption of validity, the complainant shall have the
burden of proof to demonstrate by clear and convincing evidence that the agreement does not
provide for a realistic opportunity for the provision of low and moderate income housing within the
housing region.

c. The council shall be made a party to any exclusionary zoning suit against a municipality which
receives substantive certification, and shall be empowered to present to the court its reasons for
granting substantive certification.

L. 1985, c. 222, s. 17, eff. July 2, 1985, operative July 2, 1985.

52:27D-318. Expiration of administrative remedy obligation

If a municipality which has adopted a resolution of participation pursuant to section 9 of this act
fails to meet the deadline for submitting its housing element to the council prior to the institution of
exclusionary zoning litigation, the obligation to exhaust administrative remedies contained in
subsection b. of section 16 of this act automatically expires. The obligation also expires if the
council rejects the municipality's request for substantive certification or conditions its certification
upon changes which are not made within the period established in this act or within an extension
of that period agreed to by the council and all litigants.

L. 1985, c. 222, s. 18, eff. July 2, 1985, operative July 2, 1985.

52:27D-319. Motion for relief

If the council has not completed its review and mediation process for a municipality within six
months of receipt of a request by a party who has instituted litigation, the party may file a motion
with a court of competent jurisdiction to be relieved of the duty to exhaust administrative
remedies. In the case of review and mediation requests filed within nine months after this act
takes effect, the six-month completion date shall not begin to run until nine months after this act
takes effect.

L. 1985, c. 222, s. 19, eff. July 2, 1985, operative July 2, 1985.

52:27D-320. Neighborhood Preservation Nonlapsing Revolving Fund

   The Neighborhood Preservation Program within the Department of Community Affairs'
Division of Housing and Development, established pursuant to the Commissioner of the
Department of Community Affairs' authority under section 8 of P.L.1975, c.248 (C.52:27D-149),
shall establish a separate Neighborhood Preservation Nonlapsing Revolving Fund for monies
appropriated by section 33 of this act.

a. The commissioner shall award grants or loans from this fund for housing projects and programs
in municipalities whose housing elements have received substantive certification from the council,
in municipalities receiving State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.), in
municipalities subject to builder's remedy as defined in section 28 of P.L.1985, c.222
(C.52:27D-328) or in receiving municipalities in cases where the council has approved a regional
contribution agreement and a project plan developed by the receiving municipality. Programs and
projects in any municipality shall be funded only after receipt by the commissioner of a written
statement in support of the program or project from the municipal governing body.

b. The commissioner shall establish rules and regulations governing the qualifications of
applicants, the application procedures, and the criteria for awarding grants and loans and the
standards for establishing the amount, terms and conditions of each grant or loan.

c. During the first 12 months from the effective date of this act and for any additional period
which the council may approve, the commissioner may assist affordable housing programs which
are not located in municipalities whose housing elements have been granted substantive
certification or which are not in furtherance of a regional contribution agreement; provided that
the affordable housing program will meet all or part of a municipal low and moderate income
housing obligation.

d. Amounts deposited in the Neighborhood Preservation Fund shall be targeted to regions based
on the region's percentage of the State's low and moderate income housing need as determined
by the council. Amounts in the fund shall be applied for the following purposes in designated
neighborhoods:

(1) Rehabilitation of substandard housing units occupied or to be occupied by low and moderate
income households;

(2) Creation of accessory apartments to be occupied by low and moderate income households;

(3) Conversion of nonresidential space to residential purposes; provided a substantial percentage
of the resulting housing units are to be occupied by low and moderate income households;

(4) Acquisition of real property, demolition and removal of buildings, or construction of new
housing that will be occupied by low and moderate income households, or any combination
thereof;

(5) Grants of assistance to eligible municipalities for costs of necessary studies, surveys, plans and
permits; engineering, architectural and other technical services; costs of land acquisition and any
buildings thereon; and costs of site preparation, demolition and infrastructure development for
projects undertaken pursuant to an approved regional contribution agreement;

(6) Assistance to a local housing authority, nonprofit or limited dividend housing corporation or
association for rehabilitation or restoration of housing units which it administers which: (a) are
unusable or in a serious state of disrepair; (b) can be restored in an economically feasible and
sound manner; and (c) can be retained in a safe, decent and sanitary manner, upon completion of
rehabilitation or restoration; and

(7) Other housing programs for low and moderate income housing, including, without limitation,
(a) infrastructure projects directly facilitating the construction of low and moderate income
housing not to exceed a reasonable percentage of the construction costs of the low and moderate
income housing to be provided and (b) alteration of dwelling units occupied or to be occupied by
households of low or moderate income and the common areas of the premises in which they are
located in order to make them accessible to handicapped persons.

e. Any grant or loan agreement entered into pursuant to this section shall incorporate contractual
guarantees and procedures by which the division will ensure that any unit of housing provided for
low and moderate income households shall continue to be occupied by low and moderate income
households for at least 20 years following the award of the loan or grant, except that the division
may approve a guarantee for a period of less than 20 years where necessary to ensure project
feasibility.

L.1985,c.222,s.20; amended 1995,c.83,s.3.

52:27D-321. Affordable housing assistance

The agency shall establish affordable housing programs to assist municipalities in meeting the
obligation of developing communities to provide low and moderate income housing.

a. Of the bond authority allocated to it under section 24 of P.L. 1983, c. 530 (C. 55:14K-24) the
agency will allocate, for a reasonable period of time established by its board, no less than 25% to
be used in conjunction with housing to be constructed or rehabilitated with assistance under this
act.

b. The agency shall to the extent of available funds, award assistance to affordable housing
programs located in municipalities whose housing elements have received substantive certification
from the council, or which have been subject to a builder's remedy or which are in furtherance of
a regional contribution agreement approved by the counciL. During the first 12 months from the
effective date of this act and for any additional period which the council may approve, the agency
may assist affordable housing programs which are not located in municipalities whose housing
elements have been granted substantive certification or which are not in furtherance of a regional
contribution agreement; provided the affordable housing program will meet all or in part a
municipal low and moderate income housing obligation.

c. Assistance provided pursuant to this section may take the form of grants or awards to
municipalities, prospective home purchasers, housing sponsors as defined in P.L. 1983, c. 530 (C.
55:14K-1 et seq.), or as contributions to the issuance of mortgage revenue bonds or multi-family
housing development bonds which have the effect of achieving the goal of producing affordable
housing.

d. Affordable housing programs which may be financed or assisted under this provision may
include, but are not limited to:

(1) Assistance for home purchase and improvement including interest rate assistance, down
payment and closing cost assistance, and direct grants for principal reduction;

(2) Rental programs including loans or grants for developments containing low and moderate
income housing, moderate rehabilitation of existing rental housing, congregate care and retirement
facilities;

(3) Financial assistance for the conversion of nonresidential space to residences;

(4) Other housing programs for low and moderate income housing, including infrastructure
projects directly facilitating the construction of low and moderate income housing; and

(5) Grants or loans to municipalities, housing sponsors and community organizations to encourage
development of innovative approaches to affordable housing, including:

(a) Such advisory, consultative, training and educational services as will assist in the planning,
construction, rehabilitation and operation of housing; and

(b) Encouraging research in and demonstration projects to develop new and better techniques and
methods for increasing the supply, types and financing of housing and housing projects in the
State.

e. The agency shall establish procedures and guidelines governing the qualifications of applicants,
the application procedures and the criteria for awarding grants and loans for affordable housing
programs and the standards for establishing the amount, terms and conditions of each grant or
loan.

f. In consultation with the council, the agency shall establish requirements and controls to insure
the maintenance of housing assisted under this act as affordable to low and moderate income
households for a period of not less than 20 years; provided that the agency may establish a
shorter period upon a determination that the economic feasibility of the program is jeopardized by
the requirement and the public purpose served by the program outweighs the shorter period. The
controls may include, among others, requirements for recapture of assistance provided pursuant to
this act or restrictions on return on equity in the event of failure to meet the requirements of the
program. With respect to rental housing financed by the agency pursuant to this act or otherwise
which promotes the provision or maintenance of low and moderate income housing, the agency
may waive restrictions on return on equity required pursuant to P.L. 1983, c. 530 (C. 55:14K-1 et
seq.) which is gained through the sale of the property or of any interest in the property or sale of
any interest in the housing sponsor.

g. The agency may establish affordable housing programs through the use or establishment of
subsidiary corporations or development corporations as provided in P.L. 1983, c. 530 (C.
55:14K-1 et seq.). The subsidiary corporations or development corporations shall be eligible to
receive funds provided under this act for any permitted purpose.

L. 1985, c. 222, s. 21, eff. July 2, 1985, operative July 2, 1985.

52:27D-322. 6-year moratorium

Any municipality which has reached a settlement of any exclusionary zoning litigation prior to the
effective date of this act shall not be subject to any exclusionary zoning suit for a six year period
following the effective date of this act. Any such municipality shall be deemed to have a
substantively certified housing element and ordinances, and shall not be required during that period
to take any further actions with respect to provisions for low and moderate income housing in its
land use ordinances or regulations.

L. 1985, c. 222, s. 22, eff. July 2, 1985, operative July 2, 1985.

52:27D-324. Agency administration of controls, agreements to provide services

      The agency shall establish procedures for entering into, and shall enter into, contractual
agreements with willing municipalities or developers of inclusionary developments whereby the
agency will administer resale controls and rent controls in municipalities where no appropriate
administrative agency exists. The contractual agreements shall be for the duration of the controls
and shall involve eligibility determinations, determination of initial occupants, the marketing of
units, maintenance of eligibility lists for subsequent purchasers or renters, and determination of
maximum resale prices or rents. The agency may charge the municipality or inclusionary
developer a reasonable per unit fee for entering into such an agreement, or may charge a
reasonable fee to a low or moderate income household at the time the home is sold subject to the
resale control or both. Agency fees shall be established according to methods or schedules
approved by the State Treasurer.

    Neither the agency nor any other entity entering into an agreement to provide services to a
municipality under this section shall require, as a condition of that agreement, that these services
be provided for all eligible housing units in the municipality. A municipality, at its discretion, may
enter into an agreement for the provision of services for any reasonable portion of its eligible
housing units.

    Amended 1996, c.113, s.20.

52:27D-325. Municipal powers

Notwithstanding any other law to the contrary, a municipality may purchase, lease or acquire by
gift or through the exercise of eminent domain, real property and any estate or interest therein,
which the municipal governing body determines necessary or useful for the construction or
rehabilitation of low and moderate income housing or conversion to low and moderate income
housing.

The municipality may provide for the acquisition, construction and maintenance of buildings,
structures or other improvements necessary or useful for the provision of low and moderate
income housing, and may provide for the reconstruction, conversion or rehabilitation of those
improvements in such manner as may be necessary or useful for those purposes.

Notwithstanding the provisions of any other law regarding the conveyance, sale or lease of real
property by municipalities, the municipal governing body may, by resolution, authorize the private
sale and conveyance or lease of a housing unit or units acquired or constructed pursuant to this
section, where the sale, conveyance or lease is to a low or moderate income household or
nonprofit entity and contains a contractual guarantee that the housing unit will remain available to
low and moderate income households for a period of at least 30 years.

L.1985,c.222,s.25; amended 1990,c.109,s.1.

52:27D-326. Reports to Governor, Legislature

Within 12 months after the effective date of this act and every year thereafter, the agency and
the council shall report separately to the Governor and the Legislature on the effect of this act in
promoting the provision of low and moderate income housing in the several housing regions of this
State. The reports may include recommendations for any revisions or changes in this act which
the agency and the council believe necessary to more nearly effectuate this end.

Within 36 months after the effective date of this act, the council shall report to the Governor and
the Legislature concerning the actions necessary to be taken at the State, regional, county and
municipal levels to provide for the implementation and administration of this act on a regional
basis, including any revisions or changes in the law necessary to accomplish that end. The council
may include in the report any recommendations or considerations it may wish to provide regarding
the advisability of implementing and administering this act on a regional basis.

L. 1985, c. 222, s. 26, eff. July 2, 1985, operative July 2, 1985.

52:27D-328. Builder's remedy moratorium

No builder's remedy shall be granted to a plaintiff in any exclusionary zoning litigation which has
been filed on or after January 20, 1983, unless a final judgment providing for a builder's remedy
has already been rendered to that plaintiff. This provision shall terminate upon the expiration of
the period set forth in subsection a. of section 9 of this act for the filing with the council of the
municipality's housing element.

For the purposes of this section, "final judgment" shall mean a judgment subject to an appeal as of
right for which all right to appeal is exhausted.

For the purposes of this section, "exclusionary zoning litigation" shall mean lawsuits filed in courts
of competent jurisdiction in this State challenging a municipality's zoning and land use regulations
on the basis that the regulations do not make realistically possible the opportunity for an
appropriate variety and choice of housing for all categories of people living within the
municipality's housing region, including those of low and moderate income, who may desire to live
in the municipality.

For the purposes of this section, "builder's remedy" shall mean a court imposed remedy for a
litigant who is an individual or a profit-making entity in which the court requires a municipality to
utilize zoning techniques such as mandatory set-asides or density bonuses which provide for the
economic viability of a residential development by including housing which is not for low and
moderate income households.

L. 1985, c. 222, s. 28, eff. July 2, 1985, operative July 2, 1985.

52:27D-329. Prior law applicable

Until August 1, 1988, any municipality may continue to regulate development pursuant to a zoning
ordinance in accordance with section 49 of the "Municipal Land Use Law," P.L. 1975, c. 291 (C.
40:55D-62) as same read before the effective date of this act.

L. 1985, c. 222, s. 31, eff. July 2, 1985, operative July 2, 1985.