[Added 4-26-2004 by Ord. No. 13-04; amended 9-12-2006 by Ord. No. 21-06]

A. Applicability. This section of the land use regulations of the Township of Jackson sets forth the mechanisms by which developers shall provide for a fair share of affordable housing based on growth that is associated with development taking place within the Township of Jackson.

(1) Residential development. Except as exempted by Subsection A(3), all residential development that results in the construction of new market-rate dwelling units in accordance with N.J.A.C. 5:94-1 et seq., shall be subject to the growth share provisions of this section.

(2) Nonresidential development. Except as exempted by Subsection A(3), all nonresidential development that results in an increase in gross floor area of any existing nonresidential structure or the construction of a new nonresidential structure in accordance with N.J.A.C. 5:94-1 et seq., shall be subject to the growth share provisions of this section.

(3) Exemptions. All developments that received preliminary or final approval from the Planning Board and/or Board of Adjustment, as applicable, prior to the effective date of this section.

B. Residential growth share provisions.

(1) Pursuant to the applicable rules and regulations of COAH, all residential developments of eight or more lots or units shall provide one affordable housing unit (as defined by COAH) on site for every eight market-rate units or petition the Council for approval to provide the affordable housing units off site or make a payment-in-lieu of providing affordable housing on site or constructing the affordable housing unit, in accordance with Subsection D.

(2) For developments that result in a number of market-rate residential units not evenly divisible by eight, the developer may construct the additional affordable unit on site or, alternatively, the developer may make a payment-in-lieu of constructing the additional affordable unit in accordance with Subsection D. If the developer selects the latter option, the amount of said payment shall be established by subtracting any whole multiples of eight from the total number of market-rate residential units being created, dividing any remaining number of units by eight and multiplying the resulting fraction by $200,000.

(3) All residential development consisting of less than eight residential units may provide one affordable unit on site or may make a payment-in-lieu of constructing the proportionate fraction of the affordable housing unit required. If the developer selects the latter option, the amount of said payment shall be established by dividing the number of market-rate units by eight and multiplying the resulting fraction by $200,000.

(4) All residential developments not subject to Subsection B(1) through (3) shall be subject to the provision of the Township's Mandatory Development Fee Ordinance (Ordinance No. 08-05).

C. Nonresidential growth share provisions.

(1) All nonresidential developments that result in an increase in gross floor area of any existing nonresidential building or the construction of a new nonresidential building in the Township of Jackson shall provide one affordable housing unit for every 25 jobs that result from the application of standards adopted by COAH (presently found in Appendix E of N.J.A.C. 5:94-1 et seq.) and based on use groups, as defined by the International Building Code (IBC) which has been incorporated by reference into the Uniform Construction Code ("UCC").

(2) All nonresidential developments in the Township of Jackson shall provide one unit of affordable housing for every 25 jobs created by new or expanded development. Determinations of the number of jobs created shall be based on the new or expanded floor area in the development and by the conversion factors, by use group, established by COAH as Appendix E in N.J.A.C. 5:94-1 et seq.

(3) For nonresidential developments that result in a number of jobs not evenly divisible by 25, the developer may construct the additional affordable unit off site in accordance with Subsection D or, alternatively, the developer may make a payment-in-lieu of constructing an additional affordable unit in accordance with Subsection D. If the developer selects the latter option, the amount of said payment shall be established by subtracting any whole multiples of 25 from the total number of jobs being created, dividing any remaining number of jobs by 25 and multiplying the resulting fraction by $200,000.

(4) All nonresidential developments creating less than 25 jobs may provide one affordable housing unit off site in accordance with Subsection D or may make a payment-in-lieu of constructing an affordable housing unit. If the developer selects the latter option, the amount of said payment shall be established by dividing the number of jobs by 25 and multiplying the resulting fraction by $200,000.

D. Affordable housing compliance mechanisms. All residential developments consisting of eight or more units or lots must provide affordable housing on site. For all residential developments consisting of seven or less units and for all nonresidential developments, the developer may satisfy its affordable housing growth share obligation through the following mechanisms permitted in COAH's rules:

(1) The construction of the affordable housing unit(s) on site;

(2) The construction of the affordable housing unit(s) off site but within the Township of Jackson;

(3) 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

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

(a) Payments-in-lieu of the construction of affordable housing shall be negotiated with the Township Council, but shall in no case be less than $200,000 per unit unless the cost of the Township independently developing an affordable housing unit within the Township is less. Payments-in-lieu of construction of affordable housing may exceed $200,000 but shall not exceed the cost of the Township independently developing an affordable housing unit within the Township.

(b) 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.

E. Division for low- and moderate-income 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.

F. Compliance with COAH rules and regulations.

(1) Affordable housing units being constructed on site or off site shall meet the requirements of Article XIII, Affordable Housing, of this chapter and shall be in conformance with COAH's third round rules at N.J.A.C. 5:94-1 et seq., and the Uniform Housing Affordability Controls at N.J.A.C. 5:80-26.1 et seq., including, but not limited to requirements regarding phasing schedule, controls on affordability, low-/moderate-income split, heating source, maximum rent and/or sales price, affordability average, bedroom distribution and affirmative marketing.

(2) To the greatest extent possible, affordable housing units being provided within inclusionary developments shall be disbursed through inclusionary developments and shall be located within buildings designed to be architecturally indistinguishable from the market-rate units otherwise being constructed within the development. To that end, the scale, massing, roof pitch and architectural detailing (such as the selection of exterior materials, doors, windows, etc.) of the buildings containing the affordable housing units shall be similar to and compatible with that of the market-rate units.

(3) All applicants subject to this section shall include, as part of any application to the Zoning Board of Adjustment or Planning Board, a calculation from a qualified professional as to the affordable housing obligation generated by the project and a plan through which the applicant intends to satisfy said affordable housing obligation.