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Ordinance #2026-02 Fourth Round Affordable Housing Adopted (pdf)

BID #: 2026-02

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Executive Summary

Ordinance 2026-02 amends Chapter 22, Article VI of the Borough of Spring Lake Heights' code to address its Fourth Round affordable housing obligations, covering the period of 2025-2035. This ordinance aligns with the amended Fair Housing Act and the Department of Community Affairs' (DCA) calculations of the Borough's fair share, which includes a Present Need (Rehabilitation) Obligation of 35 units and a Fourth Round Prospective Need (New Construction) Obligation of 44 affordable housing units. The Borough aims to obtain compliance certification to protect against exclusionary zoning litigation until 2035 by implementing updated Affordable Housing and Development Fee ordinances, as required by a Program Decision issued on January 8, 2026.

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--- Document: Ordinance #2026-02 Fourth Round Affordable Housing Adopted (pdf) Document ---
BOROUGH OF SPRING LAKE HEIGHTS
COUNTY OF MONMOUTH
ORDINANCE NO. 2026-02
AN ORDINANCE AMENDING CHAPTER 22, ARTICLE VI, AFFORDABLE HOUSING IN
FURTHERANCE OF THE BOROUGH'S FOURTH ROUND AFFORDABLE HOUSING
OBLIGATION
WHEREAS, on March 20, 2024, Governor Murphy signed into law P.L. 2024, c.2, an Amendment to
the 1985 Fair Housing Act (hereinafter "Amended FHA" or "Act") establishing the statutory calculation of the
state-wide fair share obligation for the Fourth Round of affordable housing for the time period 2025-2035; and
WHEREAS, the Amended FHA requires the Department of Community Affairs ("DCA") to provide its
calculation of every municipality's Fourth Round fair share affordable housing obligations based upon the
criteria on the Amended FHA and the DCA issued a report on October 18, 2024 (the "DCA Report") wherein it
supplied its calculation of the fair share affordable housing obligation for all municipalities, including the
Borough of Spring Lake Heights; and
WHEREAS, the DCA Report calculated Spring Lake Heights's Fourth Round fair share obligations as
follows: Present Need (Rehabilitation) Obligation of 35 units and a Fourth Round Prospective Need (New
Construction) Obligation of 44 affordable housing units; and
WHEREAS, the Borough of Spring Lake Heights (the "Borough" or "Spring Lake Heights") having
filed a resolution of participation in the Affordable Housing Dispute Resolution Program (the "Program") and a
declaratory judgment action bearing the caption, In the Matter of the Borough of Spring Lake Heights, Superior
Court of New Jersey, Law Division, Docket No. MON-L-436-25 on January 21, 2025; and
WHEREAS, the Borough having filed its Housing Element and Fair Share Plan on June 4 2025(the
"HEFSP"); and
WHEREAS, FSHC and other objectors having filed challenges pursuant to N.J.S.A. 52:27D-
304.1(f)(2)(b) regarding the Borough's HEFSP on August 31, 2025; and
WHEREAS, the Mediation before the Program was unsuccessful, and the Program, Judge, the Hon. Mary
C. Jacobson, A. J.S.C. (retired), having found the Borough's position legally consistent with the Fair Housing Act
and issued a Program Decision on January 8, 2026 which requires the Borough to implement its Fourth Round
Affordable Housing obligation through the adoption of an updated Affordable Housing and Development Fee
ordinance; and
WHEREAS, the Borough Council of the Borough of Spring Lake Heights believes it is in the best
interest of the Borough to adopt the Fourth Round implementing ordinances in order to obtain compliance
certification from the Program/Court thereby protecting the Borough from exclusionary zoning litigation
for ten years until 2035; and
NOW THEREFORE, BE IT HEREBY ORDAINED by the Mayor and Council of the Borough of
Spring Lake Heights in the County of Monmouth, State of New Jersey that Sections 22-650.1 through 22-650.9
are hereby repealed and replaced with the following:
§22-650.1
Borough of Spring Lake Heights, Monmouth County | Page 2 of 38
A. Introduction & Applicability
1. This section of the Code sets forth regulations regarding the very low-, low- and moderate-income housing
units in Borough of Spring Lake Heights consistent with the provisions outlined in P.L 2024, Chapter 2,
including the amended Fair Housing Act ("FHA") at N.J.S.A. 52:27D-302 et seq., as well as the
Department of Community Affairs, Division of Local Planning Services ("LPS") at N.J.A.C. 5:99 et seq.,
statutorily upheld existing regulations of the now-defunct Council on Affordable Housing ("COAH") at
N.J.A.C. 5:93 and 5:97, the Uniform Housing Affordability Controls (“UHAC") at N.J.A.C. 5:80-26.1 et
seq., and as reflected in the adopted municipal Fourth Round Housing Element and Fair Share Plan
("HEFSP").
2. This Ordinance is intended to ensure that very low-, low- and moderate-income units ("affordable units")
are created with controls on affordability over time and that very low-, low- and moderate-income
households shall occupy these units pursuant to statutory requirements. This Ordinance shall apply to all
inclusionary developments, individual affordable units, and 100% affordable housing developments
except where inconsistent with applicable law. Low-Income Housing Tax Credit financed developments
shall adhere to the provisions set forth below in item 5.c. below.
3. The Spring Lake Heights Land Use Board has adopted a HEFSP pursuant to the Municipal Land Use Law
at N.J.S.A. 40:55D-1, et seq. The Fair Share Plan describes the ways the municipality shall address its fair
share of very low-, low- and moderate-income housing as approved by the Superior Court and documented
in the Housing Element.
4. This Ordinance implements and incorporates the relevant provisions of the HEFSP and addresses the
requirements of P.L 2024, Chapter 2, the FHA, N.J.A.C. 5:99, NJ Supreme Court upheld COAH
regulations at N.J.A.C. 5:93 and 5:97, and UHAC at N.J.A.C. 5:80-26.1, as may be amended and
supplemented.
5. Applicability
a. The provisions of this Ordinance shall apply to all affordable housing developments and affordable
housing units that currently exist and that are proposed to be created pursuant to the municipality's
most recently adopted HEFSP.
b. This Ordinance shall apply to all developments that contain very low-, low- and moderate-income
housing units included in the Municipal HEFSP, including any unanticipated future developments that
will provide very low-, low- and moderate-income housing units.
c. Projects receiving federal Low Income Housing Tax Credit financing and are proposed for credit shall
comply with the low/moderate split and bedroom distribution requirements, maximum initial rents and
sales prices requirements, affirmative fair marketing requirements of UHAC at N.J.A.C. 5:80-26.16
and the length of the affordability controls applicable to such projects shall be not less than a 30-year
compliance period plus a 15-year extended-use period, for a total of not less than 45 years.
§22-650.2
B. Definitions
As used herein the following terms shall have the following meanings:
"Accessory apartments" means a residential dwelling unit that provides complete independent living
facilities with a private entrance for one or more persons, consisting of provisions for living, sleeping,
eating, sanitation, and cooking, including a stove and refrigerator, and is located within a proposed
preexisting primary dwelling, within an existing or proposed structure that is an accessory to a dwelling on
the same lot, constructed in whole or part as an extension to a proposed or existing primary dwelling, or
constructed as a separate detached structure on the same lot as the existing or proposed primary dwelling.
Accessory apartments are also referred to as "accessory dwelling units".
"Act" means the New Jersey Fair Housing Act, N.J.S.A. 52:27D-302 et seq.
Borough of Spring Lake Heights, Monmouth County | Page 3 of 38
"Adaptable" means constructed in compliance with the technical design standards of the barrier free
subcode adopted by the Commissioner of Community Affairs pursuant to the "State Uniform Construction
Code Act," P.L.1975, c. 217 (C.52:27D-119 et seq.) and in accordance with the provisions of section 5 of
P.L.2005, c. 350 (C.52:27D-123.15).
"Administrative agent" means the entity approved by the Division responsible for the administration of
affordable units, in accordance with N.J.A.C. 5:99-7, and UHAC at N.J.A.C. 5:80-26.15.
"Affirmative marketing" means a regional marketing strategy designed to attract buyers and/or renters of
affordable units pursuant to N.J.A.C. 5:80-26.16.
"Affirmative Marketing Plan" means the municipally adopted plan of strategies from which the
administrative agent will choose to implement as part of the Affirmative Marketing requirements.
"Affirmative Marketing Process" or "Program" means the actual undertaking of Affirmative Marketing
activities in furtherance of each project with very low- low- and moderate-income units.
"Affordability assistance" means the use of funds to render housing units more affordable to low- and
moderate-income households and includes, but is not limited to, down payment assistance, security deposit
assistance, low interest loans, rental assistance, assistance with homeowner's association or condominium
fees and special assessments, common maintenance expenses, and assistance with emergency repairs and
rehabilitation to bring deed-restricted units up to code, pursuant to N.J.A.C. 5:99-2.5.
"Affordability average" means an average of the percentage of regional median income at which restricted
units in an affordable development are affordable to low- and moderate-income households.
"Affordable" means, in the case of an ownership unit, that the sales price for the unit conforms to the
standards set forth at N.J.A.C. 5:80-26.7 and, in the case of a rental unit, that the rent for the unit conforms
to the standards set forth at N.J.A.C. 5:80-26.13.
"Affordable housing development" means a development included in a municipality's housing element and
fair share plan, and includes, but is not limited to, an inclusionary development, a municipally sponsored
affordable housing project, or a 100 percent affordable development. This includes developments with
affordable units on-site, off-site, or provided as a payment in-lieu of construction only if such a payment-in-
lieu option has been previously approved by the Program or Superior Court as part of the HEFSP. Payments
in lieu of construction were invalidated per P.L. 2024, c.2.
"Affordable Housing Dispute Resolution Program" or "the Program" refers to the dispute resolution
program established pursuant to N.J.S.A. 52:27D-313.2.
"Affordable Housing Monitoring System" or "AHMS" means the Department's cloud-based software
application, which shall be the central repository for municipalities to use for reporting detailed information
regarding affordable housing developments, affordable housing unit completions, and the collection and
expenditures of funds deposited into the municipal affordable housing trust fund.
"Affordable Housing Trust Fund" or "AHTF" means that non-lapsing, revolving trust fund established in
DCA pursuant to N.J.S.A. 52:27D-320 and N.J.A.C. 5:43 to be the repository of all State funds appropriated
for affordable housing purposes. All references to the "Neighborhood Preservation Nonlapsing Revolving
Fund" and "Balanced Housing" mean the AHTF.
"Affordable unit" means a housing unit proposed or developed pursuant to the Act, including units created
with municipal affordable housing trust funds.
"Age-restricted housing" means a housing unit that is designed to meet the needs of, and is exclusively for,
an age-restricted segment of the population such that: 1. All the residents of the development where the unit
Borough of Spring Lake Heights, Monmouth County | Page 4 of 38
is situated are 62 years or older; 2. At least 80 percent of the units are occupied by one person that is 55
years or older; or 3. The development has been designated by the Secretary of HUD as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
"Agency" means the New Jersey Housing and Mortgage Finance Agency established by P.L.1983, с. 530
(C.55:14K-1 et seq.).
"Assisted living residence" means a facility licensed by the New Jersey Department of Health to provide
apartment-style housing and congregate dining and to ensure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor. Apartment units must offer, at a minimum,
one unfurnished room, a private bathroom, a kitchenette, and a lockable door on the unit entrance.
"Barrier-free escrow" means the holding of funds collected to adapt affordable unit entrances to be
accessible in accordance with N.J.S.A. 52:27D-311a et seq. Such funds shall be held in a municipal
affordable housing trust fund pursuant to N.J.A.C. 5:99-2.6.
"Builder's remedy" means court-imposed site-specific relief for a litigant who seeks to build affordable
housing for which the court requires a municipality to utilize zoning techniques, such as mandatory set-
asides or density bonuses, including techniques which provide for the economic viability of a residential
development by including housing that is not for low- and moderate-income households.
"Certified household" means a household that has been certified by an administrative agent as a very-low-
income household, a low-income household, or a moderate-income household.
"CHOICE" means the no-longer-active Choices in Homeownership Incentives for Everyone Program, as it
was authorized by the Agency.
"COAH" or the "Council" means the Council on Affordable Housing established in, but not of, DCA
pursuant to the Act and that was abolished effective March 20, 2024, pursuant to section 3 at P.L. 2024, c. 2
(N.J.S.A. 52:27D-304.1).
"Commissioner" means the Commissioner of the Department of Community Affairs.
"Compliance certification" means the certification obtained by a municipality pursuant to section 3 of
P.L.2024, c. 2 (C.52:27D-304.1), that protects the municipality from exclusionary zoning litigation during
the current round of present and prospective need and through July 1 of the year the next round begins,
which is also known as a "judgment of compliance" or "judgment of repose." The term "compliance
certification" shall include a judgment of repose granted in an action filed pursuant to section 13 of
P.L.1985, с. 222 (C.52:27D-313).
"Construction" means new construction and additions, but does not include alterations, reconstruction,
renovations, conversion, relocation, or repairs, as those terms are defined in the State Uniform Construction
Code promulgated pursuant to the State Uniform Construction Code Act, P.L. 1975, c. 217(N.J.S.A.
52:27D-119 et seq.).
"County-level housing judge" means a judge appointed pursuant to section 5 at P.L. 2024, c. 2, to resolve
disputes over the compliance of municipal fair share affordable housing obligations and municipal Fair
Share plans and housing elements with the Act.
"DCA" and "Department" mean the State of New Jersey Department of Community Affairs.
"Deficient housing unit" means a housing unit with health and safety code violations that require the repair
or replacement of a major system. A major system includes weatherization, roofing, plumbing (including
wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement and/or load
bearing structural systems.
Borough of Spring Lake Heights, Monmouth County | Page 5 of 38
"Department" means the New Jersey Department of Community Affairs.
"Developer" means the legal or beneficial owner or owners of a lot or of any land proposed to be included
in a proposed development, including the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
"Development" means the division of a parcel of land into two or more parcels, the construction,
reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other
structure, or of any mining, excavation, or landfill, and any use or change in the use of any building or other
structure, or land or extension of use of land, for which permission may be required pursuant to the
Municipal Land Use Law, N.J.S.A. 40:55D-1 et seq.
"Development fee" means money paid by a developer for the improvement of residential and non-
residential property as permitted pursuant to N.J.S.A. 52:27D-329.2 and 40:55D-8.1 through 40:55D-8.7
and N.J.A.C. 5:99-3.
"Dispute Resolution Program" means the Affordable Housing Dispute Resolution Program, established
pursuant to section 5 at P.L. 2024, c. 2 (N.J.S.A. 52:27D-313.2).
"Division" means the Division of Local Planning Services within the Department of Community Affairs.
"Emergent opportunity" means a circumstance that has arisen whereby affordable housing will be able to be
produced through a delivery mechanism not originally contemplated by or included in a fair share plan that
has been the subject of a compliance certification.
"Equalized assessed value” or “EAV" means the assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the property is situated, as determined in
accordance with sections 1, 5, and 6 at P.L. 1973, c. 123 (N.J.S.A. 54:1-35a, 54:1-35b,and 54:1-35c).
Estimates at the time of building permit may be obtained by the tax assessor using construction cost
estimates. Final EAV shall be determined at project completion by the municipal assessor.
"Equity share amount" means the product of the price differential and the equity share, with the equity share
being the whole number of years that have elapsed since the last non-exempt sale of a restricted ownership
unit, divided by 100, except that the equity share may not be less than five percent and may not exceed 30
percent.
"Exit sale" means the first authorized non-exempt sale of a restricted unit following the end of the control
period, which sale terminates the affordability controls on the unit.
"Exclusionary zoning litigation" means litigation challenging the fair share plan, housing element,
ordinances, or resolutions that implement the fair share plan or housing element of a municipality based on
alleged noncompliance with the Act or the Mount Laurel doctrine, which litigation shall include, but shall
not be limited to, litigation seeking a builder's remedy.
"Extension of expiring controls" means extending the deed restriction period on units where the controls
will expire in the current round of a housing obligation, so that the total years of a deed restriction is at least
60 years.
"Fair share obligation" means the total of the present need and prospective need, including prior rounds, as
determined by the Affordable Housing Dispute Resolution Program, or a court of competent jurisdiction.
"Fair share plan" means the plan or proposal, with accompanying ordinances and resolutions, by which a
municipality proposes to satisfy its constitutional obligation to create a realistic opportunity to meet its fair
share of low- and moderate-income housing needs of its region and which details the affirmative measures
the municipality proposes to undertake to achieve its fair share of low- and moderate-income housing, as
Borough of Spring Lake Heights, Monmouth County | Page 6 of 38
provided in the municipal housing element, and which addresses the development regulations necessary to
implement the housing element, including, but not limited to, inclusionary requirements and development
fees, and the elimination of unnecessary housing cost-generating features from the municipal land use
ordinances and regulations.
"FHA" means the New Jersey Fair Housing Act, N.J.S.A. 52:27D-302 et seq.
"Green Building Strategies" means the strategies that minimize the impact of development on the
environment, and enhance the health, safety and well-being of residents by producing durable, low-
maintenance, resource-efficient housing while making optimum use of existing infrastructure and
community services.
"HMFA" or "the Agency" means the New Jersey Housing and Mortgage Finance Agency established
pursuant to P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
"Household income" means a household's gross annual income calculated in a manner consistent with the
determination of annual income pursuant to section 8 of the United States Housing Act of 1937 (Section 8),
not in accordance with the determination of gross income for Federal income tax liability.
"Housing element" means the portion of a municipality's master plan adopted in accordance with the
Municipal Land Use Law (MLUL) at N.J.S.A. 40:55D-28.b(3) and the Act consisting of reports, statements
proposals, maps, diagrams, and text designed to meet the municipality's fair share of its region's present and
prospective housing needs, particularly with regard to low- and moderate-income housing, which shall
include the municipal present and prospective obligation for affordable housing, determined pursuant to
subsection f. at N.J.S.A. 52:27D-304.1.
"Housing region" means a geographic area established pursuant to N.J.S.A. 52:27D-304.2b.
"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.
"Judgment of compliance" or "judgment for repose" means a determination issued by the Superior Court
approving a municipality's fair share plan to satisfy its affordable housing obligation for a particular 10-year
round.
"Low-income household" means a household with a household income equal to 50 percent or less of the
regional median income.
"Low-income unit" means a restricted unit that is affordable to a low-income
household.
"Major system" means the primary structural, mechanical, plumbing, electrical, fire protection, or occupant
service components of a building which include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement or
load bearing structural systems.
"Mixed use development" means any development that includes both a non-residential development
component and a residential development component, and shall include developments for which: (1)there is
a common developer for both the residential development component and the non-residential development
component, provided that for purposes of this definition, multiple persons and entities maybe considered a
common developer if there is a contractual relationship among them obligating each entity to develop at
least a portion of the residential or non-residential development, or both, or otherwise to contribute
resources to the development; and (2) the residential and non-residential developments are located on the
Borough of Spring Lake Heights, Monmouth County | Page 7 of 38
same lot or adjoining lots, including, but not limited to, lots separated by a street, a river, or another
geographical feature.
"Moderate-income household" means a household with a household income in excess of 50 percent but less
than 80 percent of the regional median income.
"Moderate-income unit" means a restricted unit that is affordable to a moderate-income
household.
"MONI" means the no-longer-active Market Oriented Neighborhood Investment Program, as it was
authorized by the Agency.
"Municipal housing liaison" or "MHL" means an appointed municipal employee who is, pursuant to
N.J.A.C. 5:99-6, responsible for oversight and/or administration of the affordable units created within the
municipality.
"Municipal affordable housing trust fund" means a separate, interest-bearing account held by a municipality
for the deposit of development fees, payments in lieu of constructing affordable units on sites zoned for
affordable housing previously approved prior to March 20, 2024 (per P.L. 2024, c.2), barrier-free escrow
funds, recapture funds, proceeds from the sale of affordable units, rental income, repayments from
affordable housing program loans, enforcement fines, unexpended RCA funds remaining from a completed
RCA project, application fees, and any other funds collected by the municipality in connection with its
affordable housing programs, which shall be used to address municipal low- and moderate-income housing
obligations within the time frames established by the Legislature and this chapter.
"Municipal development fee ordinance" means an ordinance adopted by the governing body of a
municipality that authorizes the collection of development fees.
"New construction" means the creation of a new housing unit under regulation by a code enforcement
official regardless of the means by which the unit is created. Newly constructed units are evidenced by the
issuance of a certificate of occupancy and may include new residences created through additions and
alterations, adaptive reuse, subdivision, or conversion of existing space, and moving a structure from one
location to another.
"New Jersey Affordable Housing Trust Fund" means an account established pursuant to N.J.S.A. 52:27D-
320.
"New Jersey Housing Resource Center" or "Housing Resource Center" means the online affordable housing
listing portal, or its successor, overseen by the Agency pursuant to N.J.S.A. 52:27D-321.3 et seq.
"95/5 restriction" means a deed restriction governing a restricted ownership unit that is part of a housing
element that received substantive certification from COAH pursuant to N.J.A.C. 5:93, as it was in effect at
the time of the receipt of substantive certification, before October 1, 2001, or any other deed restriction
governing a restricted ownership unit with a seller repayment option requiring 95 percent of the price
differential to be paid to the municipality or an instrument of the municipality at the closing of a sale at
market price.
"Non-exempt sale" means any sale or transfer of ownership of a restricted unit to one's self or to another
individual other than the transfer of ownership between spouses or civil union partners; the transfer of
ownership between former spouses or civil union partners ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties; the transfer of ownership between family
members as a result of inheritance; the transfer of ownership through an executor's deed to a class A
beneficiary; and the transfer of ownership by court order.
Borough of Spring Lake Heights, Monmouth County | Page 8 of 38
"Nonprofit" means an organization granted nonprofit status in accordance with section 501(c)(3) of the
Internal Revenue Code.
"Non-residential development" means:
Any building or structure, or portion thereof, including, but not limited to, any appurtenant
improvements, which is designated to a use group other than a residential use group according to the
State Uniform Construction Code, N.J.A.C. 5:23, promulgated to effectuate the State uniform
Construction Code Act, N.J.S.A. 52:27D-119 et seq., including any subsequent amendments or revisions
thereto;
Hotels, motels, vacation timeshares, and child-care facilities; and
The entirety of all continuing care facilities within a continuing care retirement community which is
subject to the Continuing Care Retirement Community Regulation and Financial Disclosure Act,
N.J.S.A.52:27D-330 et seq.
"Non-residential development fee" means the fee authorized to be imposed pursuant to N.J.S.A. 40:55D-8.1
through 40:55D-8.7.
"Order for repose" means the protection a municipality has from a builder's remedy lawsuit for a period of
time from the entry of a judgment of compliance by the Superior Court. A judgment of compliance often
results in an order for repose.
"Payment in lieu of constructing affordable units" means the prior approval of the payment of funds to the
municipality by a developer when affordable units are were not produced on a site zoned for an inclusionary
development. The statutory permission for payments in lieu of constructing affordable units was eliminated
per P.L. 2024, с.2.
"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. Prospective need shall be determined by the methodology set
forth pursuant to sections 6 and 7 of P.L.2024, c. 2 (C.52:27D-304.2 and C.52:27D-304.3) for the fourth
round and all future rounds of housing obligations.
"Qualified Urban Aid Municipality" means a municipality that meets the criteria established pursuant to
N.J.S.A. 52:27D-304.3.c(1).
"Person with a disability" means a person with a physical disability, infirmity, malformation, or
disfigurement which is caused by bodily injury, birth defect, aging, or illness including epilepsy and other
seizure disorders, and which shall include, but not be limited to, any degree of paralysis, amputation, lack of
physical coordination, blindness or visual impairment, deafness or hearing impairment, the inability to speak
or a speech impairment, or physical reliance on a service animal, wheelchair, or other remedial appliance or
device.
"Price differential" means the difference between the controlled sale price of a restricted unit and the
contract price at the exit sale of the unit, determined as of the date of a proposed contract of sale for the unit.
If there is no proposed contract of sale, the price differential is the difference between the controlled sale
price of a restricted unit and the appraised value of the unit as if it were not subject to UHAC, determined as
of the date of the appraisal. If the controlled sale price exceeds the contract price or, in the absence of a
contract price, the appraised value, the price differential is zero dollars.
"Prior round unit" means a housing unit that addresses a municipality's fair share obligation from a round
prior to the fourth round of affordable housing obligations, including any unit that: (1) received substantive
Borough of Spring Lake Heights, Monmouth County | Page 9 of 38
certification from COAH; (2) is part of a third-round settlement agreement or judgment of compliance
approved by a court of competent jurisdiction, inclusive of units created pursuant to a zoning designation
adopted as part of the settlement agreement or judgment of compliance to create a realistic opportunity for
development; (3) is subject to a grant agreement or other contract with either the State or a political
subdivision thereof entered into prior to July 1, 2025, pursuant to either item (1) or (2) above; or (4)
otherwise addresses a municipality's fair share obligation from a round prior to the fourth round of
affordable housing obligations. A unit created after the enactment of P.L. 2024, c. 2 (N.J.S.A. 52:27D-
304.1) on March 20, 2024, is not a prior round unit unless: (1) it is created pursuant to a prior round
development plan or zoning designation that received COAH or court approval on or before the cutoff date
of June 30, 2025, or the date that the municipality adopts the implementing ordinances and resolutions for
the fourth round of affordable housing obligations, whichever occurs sooner; and (2) its siting and creation
are consistent with the form of the prior round development plan or zoning designation in effect as of the
cutoff date, without any amendment or variance.
"Program" means the Affordable Housing Dispute Resolution Program, established pursuant to section 5 of
P.L.2024, c. 2 (C.52:27D-313.2).
"Random selection process" means a lottery process by which currently income-eligible applicant-
households are selected, at random, for placement in affordable housing units such that no preference is
given to one applicant over another, except in the case of a veterans' preference where such an agreement
exists; for purposes of matching household income and size with an appropriately priced and sized
affordable unit; or another purpose allowed pursuant to N.J.A.C. 5:80-26.7(k)3. This definition excludes any
practices that would allow affordable housing units to be leased or sold on a first-come, first-served basis.
"RCA administrator" means an appointed municipal employee who is responsible for oversight and/or
administration of affordable units and associated revenues and expenditures within the municipality that
were funded through regional contribution agreements.
"RCA project plan" means a past application, submitted by a receiving municipality in an RCA, delineating
the manner in which the receiving municipality intended to create or rehabilitate low- and moderate-income
housing.
"Receiving municipality" means, for the purposes of an RCA, a municipality that contractually agreed to
assume a portion of another municipality's fair share obligation.
"Reconstruction" means any project where the extent and nature of the work is such that the work area
cannot be occupied while the work is in progress and where a new certificate of occupancy is required
before the work area can be reoccupied, pursuant to the Rehabilitation Subcode of the uniform Construction
Code, N.J.A.C. 5:23-6. Reconstruction shall not include projects comprised only of floor finish replacement,
painting or wallpapering, or the replacement of equipment or furnishings. Asbestos hazard abatement and
lead hazard abatement projects shall not be classified as reconstruction solely because occupancy of the
work area is not permitted.
"Recreational facilities and community centers" means any indoor or outdoor buildings, spaces, structures,
or improvements intended for active or passive recreation, including, but not limited to, ballfields, meeting
halls, and classrooms, accommodating either organized or informal activity.
"Regional contribution agreement" or "RCA" means a contractual agreement, pursuant to the Act, into
which two municipalities voluntarily entered into and was approved by COAH and/or Superior Court prior
to July 18, 2008, to transfer a portion of a municipality's affordable housing obligation to another
municipality within its housing region.
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"Regional median income" means the median income by household size for an applicable housing region, as
calculated annually in accordance with N.J.A.C. 5:80-26.3.
"Rehabilitation" means the repair, renovation, alteration, or reconstruction of any building or structure,
pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
"Rent" means the gross monthly cost of a rental unit to the tenant, including the rent paid to the landlord, as
well as an allowance for tenant-paid utilities computed in accordance with allowances published by DCA
for its Section 8 program. With respect to units in assisted living residences, rent does not include charges
for food and services.
"Residential development fee" means money paid by a developer for the improvement of residential
property as permitted pursuant to N.J.S.A. 52:27D-329.2 and N.J.A.C.