REQUIREMENTS FOR DEVELOPMENTS THAT INCREASE THE VILLAGE OF RIDGEWOOD"S GROWTH SHARE OBLIGATION FOR AFFORDABLE HOUSING PURSUANT TO THIRD-ROUND RULES OF THE NEW JERSEY COUNCIL ON AFFORDABLE HOUSING
Every development which increases the number of affordable housing units that must be addressed by the Village of Ridgewood's housing element and fair share plan is subject to the following:
The legislative intent and recitals, set forth in the preamble to Ordinance No. 3001 (adopting this article) are hereby adopted and incorporated by reference herein as if set forth herein at length.
The provisions of this article shall apply to the following developments, subject to the exemptions in § 190-139 below:
A. Residential developments. Any development which results in a net increase in the number of market-rate dwelling units in the Village of Ridgewood. For purposes of administering this provision, "net increase" shall be construed to be an increase in the number of dwelling units existing on the subject property on January 1, 2004. A dwelling unit that was under construction on January 1, 2004, but which had not yet received a final certificate of occupancy, shall not be considered "existing" on that date for purposes of administering this provision.
B. Nonresidential developments. Any development which results in a net increase in the gross floor area of any nonresidential building in the Village of Ridgewood of the following use groups, as defined by the International Building Code (IBC) (which has been incorporated by reference into the Uniform Construction Code (UCC)). For purposes of administering this provision, "net increase" shall be construed to be an increase in the amount of gross floor area devoted to nonresidential use from that existing on the subject property on January 1, 2004. Nonresidential floor area that was under construction on January 1, 2004, but which had not yet received a final certificate of occupancy, shall not be considered "existing" on that date for purposes of administering this provision.
* Note: The descriptions in the above table are not intended to be exhaustive, and additional uses are or may be included within the use group; in all cases, the IBC definitions control. The inclusion of any use in the above table is not to be construed to mean that such use is permitted in the Village of Ridgewood or in any particular zoning district; such use shall only be permitted in accordance with the balance of the Land Use Ordinance or other applicable law.
Notwithstanding the provisions of § 190-138 above, the following developments shall be exempt from the provisions of this article:
A. Certain affordable housing developments. Market-rate dwelling units within developments that provide affordable housing units in accordance with the housing element of the Village of Ridgewood Master Plan and the Village of Ridgewood's fair share plan regulations, in accordance with either the first- or second-round rules of the Council on Affordable Housing and in accordance with the applicable affordable housing requirements of the respective zone districts; provided, however, that such exemption shall only apply to the number of market-rate dwelling units in the development that do not exceed a ratio of four market-rate units for every one affordable unit in the development.
B. Government developments. Developments of Federal, state, county and municipal governments.
C. Developments with prior approvals. Approved developments that are exempt from changes in zoning regulations for specified time periods pursuant to provisions of the New Jersey Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.) and developments that have received all required permits authorizing construction prior to the effective date of this article, and which are constructed in accordance with said permits. Developments with permits or other approvals that expire prior to construction but subsequent to the effective date of this article shall not be exempt from this article unless such approvals are extended by the approving authority in accordance with applicable law.
E. Exemption upon appeal. Upon appeal to the Village Council, a development may be exempted, in full or in part, by the Village Council from the requirements of this article if the developer proves to the satisfaction of the Council: a) that no reasonable development of the property in question is economically feasible unless such full or partial exemption is granted, and b) that such economic infeasibility is not due to action or inaction of the developer, property owner or any predecessor in title.
The Village Council may require the preparation of a pro forma or other documentation to substantiate the developer's assertion, and the Village Council may submit such pro forma or other documentation for review by a third party retained by the Village Council.
Prior to or as a condition precedent to the grant of any approval of a development application by the Planning Board or Board of Adjustment, and prior to the issuance of any zoning approval by the Zoning Officer or issuance of any construction permit by the Construction Official, as applicable, for any development described by § 190-138 and not exempted by § 190-139, the developer shall be required to comply with the requirements of this article and to enter into an agreement with the Village Council, in order to address the affect of the development upon the Village of Ridgewood's affordable housing obligation, in accordance with the following requirements:
A. Residential development.
1. A net increase (new construction less demolition) of every eight (8) market-rate dwelling units, or fraction thereof, increases the affordable housing obligation of the Village of Ridgewood by one (1) affordable housing unit, or fraction thereof. For purposes of making this calculation, the demolition permit must have been issued on or after January 1, 2004, otherwise the net increase is calculated based upon the new construction only.
2. For every unit increase, or fraction thereof, in the Village of Ridgewood's affordable housing obligation resulting from the development, the developer shall be required to increase the number of affordable housing units in the Village of Ridgewood by an equal number, as set forth in Paragraphs A.3, 4 and 5 below.
3. For every whole unit of increase in the Village of Ridgewood's obligation resulting from the residential development, the developer shall provide one affordable unit on the site or tract being developed or in another location in the Village of Ridgewood, in accordance with all applicable zoning regulations.
For example, a nine dwelling-unit development may address this requirement by marketing one of the nine units as an affordable unit (8 market-rate units and 1 affordable unit). Alternatively, if all nine dwelling units on the site are developed as market-rate units, the developer shall address an obligation to provide 1.125 affordable units (i.e., 9 marketrate units = 8 = 1.125) by providing one or more affordable units elsewhere in the municipality.
4. For every fractional unit of increase of one-half () unit or more in the Village of Ridgewood's obligation resulting from the residential development, the developer shall provide an affordable unit on the site or tract being developed or at another location in the Village of Ridgewood, in accordance with the applicable zoning regulations, if the Village of Ridgewood or another developer is willing to pay the cost of any resulting fractional unit surplus. The cost shall be calculated using the same criteria as those used to determine the value of the payments in
If neither the Village nor another developer is willing to make such payment, the developer shall not be required to provide such affordable unit, but shall have the option to: a) develop an affordable unit on the site or tract being developed or at another location in the Village of Ridgewood, in accordance with the applicable zoning regulations, and to claim a credit for any resulting fractional unit surplus as set forth in Subsection C below, and/or b) pay a fee to the Village of Ridgewood in accordance with § 190-142.
5. For every fractional unit of increase less than one-half (1 /2) unit in the Village of Ridgewood's obligation resulting from the residential development, the developer shall have the option to: a) develop an affordable unit on the site or tract being developed or at another location in the Village of Ridgewood,. in accordance with the applicable zoning regulations, and to claim a credit for any resulting fractional unit surplus as set forth in Subsection C below, and/or b) pay a fee to the Village of Ridgewood in accordance with § 190-142.
6. None of the foregoing shall be construed as amending the permitted or required uses, floor area ratio, density, coverage, building height, lot area, yard setback, parking or other zoning regulation that would otherwise apply to the development.
B. Nonresidential development.
1. A net increase (new construction less demolition) of every twenty-five (25) estimated jobs, or fraction thereof, shall increase the obligation of the Village of Ridgewood by one (1) affordable housing unit, or fraction thereof. The number of estimated jobs shall be based on the gross floor area in square feet of new buildings or additions to existing buildings, less the gross floor area of any building to be demolished on the site, and on the use group of the development, in accordance with the following table. For purposes of making this calculation, the demolition permit must have been issued on or after January 1, 2004, otherwise the -n.et increase is calculated based upon the new construction only.
2. For every unit increase, or fraction thereof, in the Village of Ridgewood's affordable housing obligation resulting from the development, the developer shall be required to increase the number of affordable housing units in the Village of Ridgewood by an equal number, as set forth in Paragraph B.3 below.
3. For every unit of increase, or fraction thereof,. in the Village of Ridgewood's affordable housing obligation resulting from the nonresidential development, the. developer shall have the option to: a) provide an affordable unit at another location in the Village of Ridgewood, in accordance with the applicable zoning regulations, and/or b) pay a fee to the Village of Ridgewood in accordance with
4. None of the foregoing shall be construed. as amending the permitted or required uses, floor area ratio, density, coverage, building height, lot area, yard setback, parking or other zoning regulation that would otherwise apply to the development.
C. Mixed residential-nonresidential development. In the case of developments involving a mixture of residential and non-residential uses, the following shall apply: .
1 . The affordable housing obligation generated by the residential portion of the development shall be addressed in the same manner as required for residential developments in Subsection A above.
2. The affordable housing obligation generated by the nonresidential portion of the development shall be addressed in the same manner as required for nonresidential developments in Subsection B above; provided, however, that in addition to the options in Subsection B the developer shall have the option to address the obligation by providing affordable -units on the same site being developed.
D. Surplus units; credits. As a means of addressing a fractional increase in the Village of Ridgewood's affordable housing obligation,, or for other reasons, a developer may provide more affordable housing units than required. In addition, ,the Village Council may negotiate with a developer to compensate the developer for the provision of more affordable housing units than required. The following provisions shall apply:
1. Any developer that provides more affordable housing units than required, or fraction thereof, the cost of which have not been paid by the Village of Ridgewood, shall be credited with such surplus. If the Village of Ridgewood or some other entity pays the costs involved in the creation of surplus units, the Village of Ridgewood or such entity shall be credited with such surplus.
2. Credits for surplus units may be applied by the owner of such credits to a subsequent development by the same developer or may be sold or otherwise transferred to other developers, who may then apply such credits to a subsequent. development in the Village of Ridgewood.
3. The sale or other transfer of such credits shall require the approval of both parties to the transaction, and a record of such sale or other transfer shall be filed with the Village Clerk.
4. The Village Clerk shall maintain a record of: a) the creation of surplus units, credits for the same, and the owners of such credits; b) credits available to interested parties for sale or transfer, and c) prior sales or transfers of credits in the Village of Ridgewood. The Clerk shall make such records available for public inspection upon request.
E. Credits for very low income units. In accordance with COAH's substantive rules at N.J.A.C. 5:94-4.22, two units of credit shall be given for each affordable unit available to households of the general public earning thirty percent (30%) or less of median income for the housing region within which the Village of Ridgewood is located, as determined by the Council on Affordable Housing.
All affordable housing units shall be subject to the requirements of this chapter that apply to comparable market-rate housing units of the same type in the same zone district. In addition, affordable housing units provided pursuant to this article shall be subject to the following requirements:
A. Units to comply with COAH rules. All affordable units to be created shall be eligible for credit against the Village of Ridgewood's affordable housing obligations and to, that end shall .comply with all applicable regulations of the New Jersey Council on Affordable Housing (COAH).
B. Limitation on age-restricted units. No age-restricted affordable units and/or affordable sales units may be credited in excess of the number of such units permitted to be credited within the Village of Ridgewood by COAH's regulations.
C. Rental obligation. In residential or mixed-use developments involving rental housing, the affordable units to be provided shall also be rental units.
D. Construction phasing. Affordable housing units, excluding such units to be funded by a payment pursuant to
E. Heating source. Affordable units shall utilize the same heating source as market units within the development.
F. Administration. The developer, in cooperation with the Village Council, shall demonstrate capacity to administer the units in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.
G. Low/moderate income split. The developer, in cooperation with the Village Council, shall demonstrate that the units will have a low/moderate income split in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:8026. For example, in each affordable development, at least 50 percent of the restricted units within each bedroom distribution shall be low-income units and the remainder may be moderate-income units. Where an odd number of affordable units are required to be provided, a majority of the units shall be low-income units.
H. Rents and sale prices. The developer, in cooperation with the Village Council, shall demonstrate that the rents or sale prices of affordable units shall be established in accordance with N.J.A.C. 5:94-7 and with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26. For example:
1. The maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60 percent of median income. The average rent for low- and moderateincome units shall be affordable to households earning no more than 52 percent of median income. The developers and/or municipal sponsors of restricted. rental units shall establish at least one rent for each bedroom type for both low-income and moderate-income units, provided that at least 10 percent of all low- and moderate-income units shall be affordable to households earning no more than 35 percent of median, income.
2. The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70 percent of median income. Each affordable development must achieve an affordability average of 55 percent for restricted ownership units. In achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type, insofar as is possible given the number of affordable units in the development.
I. Marketing of units. The developer, in cooperation with the Village Council, shall demonstrate that the units will be affirmatively marketed in accordance with N.J.A.C. 5:94-7 and with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26;
J. Continuing affordability controls. The developer, in cooperation with the Village Council, shall demonstrate that the units will have the appropriate controls on affordability in accordance with N.J.A.C. 5:94-7 and with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26; and
K. Bedroom distribution. The developer, in cooperation with the Village Council, shall demonstrate that the units will have the appropriate bedroom distributions in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.
1. Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:
a. The combined number of efficiency and one-bedroom units is no greater than 20 percent of the total low- and moderate-income units;
b. At least 30 percent of all low- and moderate-income units are two bedroom units;
c. At least 20 percent of all low- and moderate-income units are three bedroom units; and
d. The remainder, if any, may be allocated at the discretion of the developer.
e. Where there are an insufficient number of affordable units provided to meet the above bedroom distribution, the first unit shall be a twobedroom unit, the second unit shall be a three-bedroom unit and the third unit shall be a one-bedroom unit.
2. Age-restricted low- and moderate-income units may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the affordable development. The standard may be met by creating all onebedroom units or by creating a two-bedroom unit for each efficiency unit.
L. Other requirements. The developer, in cooperation with the Village Council, shall demonstrate that the units comply with all other applicable requirements of the substantive rules of the New Jersey Council on Affordable Housing, N.J.A.C. 5:94, and the Uniform Housing Affordability Controls, N.J.A.C. 5:8026.
Only when permitted by § 190-140A, B and C above, a developer may make a payment to the Village of Ridgewood in lieu of developing affordable housing units. The following provisions shall apply to such payments:
A. Amount of payment. The amount of payments in lieu of constructing affordable units shall be negotiated between the Village Council and the developer shall be determined as follows:
1. The amount of the payment shall be based upon the cost of the Village of Ridgewood to create, or to pay another party to create, the same number, or fraction thereof, of affordable housing units within the Village of Ridgewood as the increased obligation resulting from the development, including both sales and rental unit components of the obligation, using any of the methods permitted by the New Jersey Council on Affordable Housing (COAH) as set forth in Subsection B below.
2. Both the initial hard and soft costs necessary to create the unit shall be included in the calculation, but profit and potential profit shall be excluded. The Village Council may require the preparation of a pro forma to confirm that the payment is accurate and based upon realistic costs within the Village of Ridgewood to create such affordable units, and the Village Council may submit such pro forma for review by a third party or parties retained by the Village Council.
B. Use of payment. Payments in lieu of constructing affordable units on site shall only be used to fund eligible affordable housing activities within the Village of Ridgewood, including but not limited to the following as described and regulated by COAH's substantive rules at N.J.A.C. 5:94-4.5, 4.6 and 4.8 through 4:15, provided that the type of activity or activities to be funded shall be in the Village Council's sole discretion, and further provided that such activities are eligible for credit against the Village of Ridgewood's affordable housing obligation, comply with all applicable requirements of COAH's substantive rules, and comply with the zoning regulations of the Village of Ridgewood:
1. New construction with an affordable housing component.
2. Municipally-sponsored and 100 percent affordable programs.
3. Alternative living arrangements.
4. Buy-down program.
5. Municipally-sponsored rental program.
6. Assisted living residences.
7. Affordable housing partnership programs.
8. Expanded crediting opportunities.
C. Deposit of payment; housing trust fund. Payments in lieu of constructing affordable units shall be deposited in a separate interest- bearing housing trust fund or deposited in a housing trust fund established pursuant to N.J.A.C. 5:94-6.1 1(a). The Village of Ridgewood Clerk shall maintain a record of name and address of entity making the payment, the amount deposited in the account, plus interest, and the purpose and amounts of all expenditures from the account. The Clerk shall make such record available for public inspection upon request.
D. Refund of payment. In the event that a developer makes such a payment, but then does not proceed to develop the project that resulted in the affordable housing obligation, the developer may request a refund of the payment. Such request shall be made in writing to the Village Council. If requested, the Village Council shall refund such fee, plus any interest in the account resulting from the payment, less any administrative expenses required to administer the account. Any refund issued by the Village Council shall be construed as a failure of the applicant to satisfy a condition precedent to the development approval and shall therefore terminate any and all rights to such development. The developer may reinstate such rights by making a new payment, with the amount of such payment to be renegotiated as set forth in
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