A. Residential development. Pursuant to the applicable rules and regulations of COAH, residential developments of eight or more lots or units shall be required to build the applicable number of affordable units (as defined by COAH) on site. Any residential application in any zoning district in the Township that involves the development of five or more lots or units, that has not yet received preliminary major subdivision or preliminary site plan approval, shall set aside 11.1% of said units (rounded to the next higher number if .05 or greater) for affordable housing as defined by COAH. For those residential developments that were approved subsequent to the passage of the Township's Mandatory Development Fee Ordinance, No. 3933-05, but prior to the passage of the instant ordinance, those developments will remain subject to the Mandatory Development Fee Ordinance.

B. Nonresidential development. Except as otherwise provided, any nonresidential development application that has not yet received preliminary major subdivision or preliminary site plan approval will be required to produce at least one affordable unit (rounded to the next number if .05 or greater) in accordance with the substantive rules of the New Jersey Council on Affordable Housing, the calculation of which shall be in accordance with Appendix E to N.J.A.C. 5:94-1 et seq., which is entitled "UCC Use Groups for Projecting and Implementing Nonresidential Components of Growth Share." This obligation may be met pursuant to the terms set forth in Subsection E. For those nonresidential developments that were approved subsequent to the passage of the Township's Mandatory Development Fee Ordinance, No. 3933-05 but prior to the passage of the instant ordinance, those developments will remain subject to the Mandatory Development Fee Ordinance.

C. Division for low and moderate affordable housing. The affordable housing units to be produced pursuant to these regulations shall be allocated as follows: Where only one affordable housing unit is required, that housing unit shall be available to a low-income individual or household; where more than one affordable housing unit is required, the total number of units shall be divided equally between low- and moderate-income individuals or households;. and where the total number of affordable housing units required is an odd number, the last housing unit shall be available to a low-income individual or household.

D. Compliance with COAH rules and regulations. All affordable housing units shall strictly comply with the policies and regulations established by COAH, including but not limited to phasing, bedroom distribution, controls on affordability, range of affordability, affirmative marketing and income qualifications.

E. Affordable housing compliance mechanisms.

(1) All major subdivisions or site plan approvals involving eight or more lots or units of residential development must provide the affordable housing units on site.

(2) For major subdivision or site plan approvals involving seven or fewer lots or units of residential or involving nonresidential development and further provided the applicant obtains advanced written permission from the Dover Township Council, the applicant may choose to satisfy its affordable housing growth share obligation through the following mechanisms permitted in COAH's rules:

(a) On-site housing production of affordable housing;

(b) Off-site affordable housing production within the Township;

(c) The purchase of an existing market rate home at another location in the Township and its conversion to an affordable price-restricted home in accordance with COAH criteria, regulations and policies; or

(d) Contributing a payment in lieu of providing affordable housing as set forth below:

[1] Payments in lieu of the construction of affordable housing shall be negotiated with the Township Council, but shall in no case be less than $150,000 per unit unless the cost of the Township independently developing an affordable housing unit within the Township is less. Negotiated payments in lieu of construction of affordable housing may exceed $150,000 but shall not exceed the cost of the Township independently developing an affordable housing unit within the Township.

[2] Regardless of the mechanism by which the applicant has been approved to satisfy the required number of affordable housing units, any development or portion thereof that generates a fraction of an affordable housing unit as all or a portion of the obligation shall be required to make a payment in lieu of construction for that fraction of a unit. The payment shall be no greater than the fractional prorated cost of constructing an affordable housing unit in the Township.

F. Developers shall pay 50% of the calculated payment-in-lieu fee to the Township of Dover at the issuance of building permits. At the issuance of each individual certificate of occupancy (if temporary), 25% of the per unit required fee shall be paid. The balance of the fee shall be paid at issuance of final certificate of occupancy for each unit.