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Ordinance #2026-02 Fourth Round Affordable Housing Summary & Full Detail – Introduction (pdf)

BID #: 2026-02

ISSUED: 2/17/2026

DUE: 3/2/2026

VALUE: TBD

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Executive Summary

Ordinance 2026-02 for the Borough of Spring Lake Heights establishes regulations for very low-, low-, and moderate-income housing units, ensuring affordability controls over time and occupancy by eligible households. It applies to inclusionary developments, individual affordable units, and 100% affordable housing developments. The ordinance also updates residential and non-residential development fees related to the borough's affordable housing trust fund, aligning them with current statutory and regulatory requirements. The public hearing for this ordinance is scheduled for March 2, 2026, at 7:00 pm in the Council Meeting Room.

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--- Document: Ordinance #2026-02 Fourth Round Affordable Housing Summary & Full Detail – Introduction (pdf) Document ---
 
Borough of Eatontown, Monmouth County | Page 1 of 38 
BOROUGH OF SPRING LAKE HEIGHTS – NOTICE OF ORDINANCE INTRODUCTION 2026-02 
The public hearing for Ordinance, a summary of which is published herewith, will be on March 2, 2026 at 7:00 
pm (or as soon thereafter the matter is reached) in the Council Meeting Room. The ordinance was introduced 
and passed on first reading at the February 17, 2026 meeting of the Mayor and Borough Council. Copies of this 
ordinance are available at the Borough Clerk’s Office, 555 Brighton Avenue, Spring Lake Heights,  or at 
www.springlakeheights.com or via email at jgillis@springlakehts.com-- By Order of the Borough of Spring 
Lake Heights Governing Body. Janine Gillis, RMC, CMR, Borough Clerk 
 
ORDINANCE 2026-02 
BOROUGH OF SPRING LAKE HEIGHTS 
COUNTY OF MONMOUTH, STATE OF NEW JERSEY 
 
Ordinance 2026-02, Affordable Housing Ordinance of the Borough of Spring Lake Heights sets forth 
regulations regarding the very low-, low- and moderate-income housing units in the Borough of Eatontown 
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-301 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. 5:93and  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”). 
 
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. 
 
It also updates the Borough’s Residential and Non-Residential Development Fee and the related expenditure 
requirements in connection with the Borough’s affordable housing trust fund to current statutory and 
regulatory requirements. 
 
 


 
Borough of Eatontown, Monmouth County | Page 2 of 38 
 
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 
A. Introduction & Applicability 


 
Borough of Eatontown, Monmouth County | Page 3 of 38 
1. This section of the Code sets forth regulations regarding the very low-, low- and moderate-income housing 
units in Borough of Oceanport 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 Oceanport Borough Planning 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. 
“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 


 
Borough of Eatontown, Monmouth County | Page 4 of 38 
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 
is situated are 62 years or older; 2. At least 80 percent of the units are occupied by one person that is 55 


 
Borough of Eatontown, Monmouth County | Page 5 of 38 
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, c. 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, c. 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 Eatontown, Monmouth County | Page 6 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 Eatontown, Monmouth County | Page 7 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 Eatontown, Monmouth County | Page 8 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 Eatontown, Monmouth County | Page 9 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, c.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 Eatontown, Monmouth County | Page 10 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. 


 
Borough of Eatontown, Monmouth County | Page 11 of 38 
“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. 5:99-3.2. 
“Restricted unit” means a dwelling unit, whether a rental unit or ownership unit, that is subject to the 
affordability controls of this subchapter but does not include a market-rate unit that was financed pursuant to 
UHORP, MONI, or CHOICE. 
“Spending plan” means a method of allocating funds contained in an affordable housing trust fund account, 
which includes, but is not limited to, development fees collected and to be collected pursuant to an approved 
municipal development fee ordinance, or pursuant to N.J.S.A. 52:27D-329.1 et seq., for the purpose of 
meeting the housing needs of low- and moderate-income individuals. 
“State Development and Redevelopment Plan” or “State Plan” means the plan prepared pursuant to sections 
1 through 12 of the “State Planning Act,” P.L.1985, c. 398 (C.52:18A-196 et al.), designed to represent a 
balance of development and conservation objectives best suited to meet the needs of the State, and for the 
purpose of coordinating planning activities and establishing Statewide planning objectives in the areas of 
land use, housing, economic development, transportation, natural resource conservation, agriculture and 
farmland retention, recreation, urban and suburban redevelopment, historic preservation, public facilities 
and services, and intergovernmental coordination pursuant to subsection f. of section 5 of P.L.1985, c. 398 
(C.52:18A-200). 
“Supportive housing household” means a very low-, low- or moderate-income household certified as 
income eligible by an administrative agent in accordance with N.J.A.C. 5:80-26.14, in which at least one 
member is an individual who requires supportive services to maintain housing stability and independent 
living and who is part of a population identified by federal or state statute, regulation, or program guidance 
as eligible for supportive or special needs housing. Such populations include, but are not limited to: persons 
with intellectual or developmental disabilities, persons with serious mental illness, person with head injuries 
(as defined in Section 2 of P.L. 1977), persons with physical disabilities or chronic health conditions, 
persons who are homeless as defined by the U.S. Department of Housing and Urban Development at 24 
C.F.R. Part 578, survivors of domestic violence, youth aging out of foster care, and other special needs 
populations recognized under programs administered by the U.S. Department of Housing and Urban 
Development, the Low-Income Housing Tax Credit Program, the McKinney–Vento Act, or the New Jersey 
Department of Human Services. A supportive housing household may include family members, unrelated 
individuals, or live-in aides, provided that the household meets the income eligibility requirements of this 
subchapter, except that in the case of unrelated individuals not operating as a family unit, income eligibility 
shall be tested on an individual basis rather than in the aggregate; the unit is leased or sold subject to the 
affordability controls established herein; and the supportive services available to the household are designed 
to promote housing stability, independent living, and community integration. The determination of whether 
unrelated individuals are operating as a family unit shall be made based on the applicant’s self-identification 
of household members on the affordable housing application.  


 
Borough of Eatontown, Monmouth County | Page 12 of 38 
“Supportive housing sponsoring program” means grant or loan program which provided financial assistance 
to the development of the unit.  
“Supportive housing unit” means a restricted rental unit, as defined by N.J.S.A. 34:1B-21.24, that is 
affordable to very low-, low- or moderate-income households and is reserved for occupancy by a supportive 
housing household. Supportive housing units are also referred to as permanent supportive housing units.   
 
“Transitional housing” means temporary housing that: (1) includes, but is not limited to, single-room 
occupancy housing or shared living and supportive living arrangements; (2) provides access to on-site or 
off-site supportive services for very low-income households who have recently been homeless or lack stable 
housing; (3) is licensed by the department; and (4) allows households to remain for a minimum of six 
months. 
“Treasurer” means the Treasurer of the State of New Jersey. 
“UHAC” means the Uniform Housing Affordability Controls set forth at N.J.A.C. 5:80-26. 
“UHORP” means the Agency’s Urban Homeownership Recovery Program, as it was authorized by the 
Agency Board. 
“Unit type” means type of dwelling unit with various building standards including but not limited to single-
family detached, single-family attached/townhouse, stacked townhouse (attached building containing 2 units 
each with separate entrances), duplex (detached building containing 2 units each with separate entrances), 
triplex (3 units each with separate entrance), quadplex (4 units each with separate entrance), multifamily / 
flat (2 or more units with a shared entrance). Inclusion of a garage, or not, shall not define the unit type.  
“Very-low-income household” means a household with a household income less than or equal to 30 percent 
of the regional median income. 
“Very-low-income housing” means housing affordable according to the 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 30 percent or less of the 
median gross household income for households of the same size within the housing region in which the 
housing is located. 
“Very-low-income unit” means a restricted unit that is affordable to a very-low-income household. 
“Veteran” means a veteran as defined at N.J.S.A. 54:4-8.10. 
“Veterans’ preference” means the agreement between a municipality and a developer or residential 
development owner that allows for low- to moderate-income veterans to be given preference for up to 50 
percent of rental units in relevant projects, as provided for at N.J.S.A. 52:27D-311.j. 
“Weatherization” means building insulation (for attic, exterior walls and crawl space), siding to improve 
energy efficiency, replacement storm windows, replacement storm doors, replacement windows and 
replacement doors and is considered a major system for rehabilitation.     
 §22-650-3 
C. Monitoring and Reporting Requirements 
1. The municipality shall comply with the following monitoring and reporting requirements regarding the 
status of the implementation of its court-approved Housing Element and Fair Share Plan: 


 
Borough of Eatontown, Monmouth County | Page 13 of 38 
a. The municipality shall provide electronic monitoring data  with the Department pursuant to P.L 2024, 
Chapter 2 and N.J.A.C. 5:99 through the Affordable Housing Monitoring System (AHMS). All 
monitoring information required to be made public by the FHA shall be available to the public on the 
Department’s website at https://www.nj.gov/dca/dlps/hss/MuniStatusReporting.shtml. 
b. On or before February 15 of each year, the municipality shall provide annual reporting of its municipal 
Affordable Housing Trust Fund activity to the Department on the AHMS portal. The reporting shall 
include an accounting of all municipal Affordable Housing Trust Fund activity, including the sources 
and amounts of funds collected and the amounts and purposes for which any funds have been 
expended, for the previous year from January 1st to December 31st. 
c. On or before February 15 of each year, the annual reporting of the status of all affordable housing 
activity shall be provided to the Department on the AHMS portal, for the previous year from January 
1st to December 31st. 
§22-650.4 
D. Municipality-wide Mandatory Set-Aside  
1. A development, other than single-family family detached, providing a minimum of five new housing units 
created through any municipal rezoning or Zoning Board action, use or density variance, redevelopment 
plan, or rehabilitation plan that provides for densities at or above six units per acre, is required to include 
an affordable housing set-aside of 20%. 
2. Any affordable units generated through such mandatory set-aside shall be subject to all other provisions 
of this ordinance. 
3. All such affordable units shall be governed by this ordinance the controls on affordability, including 
bedroom distribution, and affirmatively marketed to the housing region in conformance with UHAC at 
N.J.A.C. 5:80-26.1 et seq., any successor regulation, and all other applicable laws. 
4. No subdivision shall be permitted or approved for the purpose of avoiding compliance with this 
requirement. Developers cannot, for example, subdivide a project into two lots and then make each of 
them a number of units just below the threshold. 
5. The mandatory set-aside requirements of this section do not give any developer the right to any rezoning, 
variance or other relief, or establish any obligation on the part of the municipality to grant such rezoning, 
variance or other relief. 
6. This municipality-wide mandatory set-aside requirement does not apply to any sites or specific zones 
otherwise identified in the HEFSP, for which density and set-aside requirements shall be governed by the 
specific standards as set forth therein.  
7. In the event that the inclusionary set-aside of 20% of the total number of residential units does not result 
in a full integer, the developer shall round the set-aside upward to construct a whole additional affordable 
unit. 
 
§22-650.5 
E. New Construction (per N.J.A.C. 5:93 as may be updated per various sections in N.J.A.C. 5:97 and N.J.S.A. 
52:27D-302 et seq.). Per the definition of “New Construction,” this section governs the creation of new 
affordable housing units regardless of the means by which the units are created. Newly constructed units may 
include new residences constructed or created through other means.   
1. The following requirements shall apply to all new or planned developments that contain very low-, low- 
and moderate-income housing units. To the extent possible, details related to the adherence to the 
requirements below shall be outlined in the resolution granting municipal subdivision or site plan approval 
of the project to assist municipal representatives, developers and Administrative Agents. 


 
Borough of Eatontown, Monmouth County | Page 14 of 38 
2. Completion Schedule (previously known as phasing). Final site plan or subdivision approval shall be 
contingent upon the affordable housing development meeting the following completion schedule for very 
low-, low- and moderate-income units whether developed in a single-phase development, or in a multi-
phase development: 
Maximum Percentage of Market-Rate      
Units Issued a Temporary or Final 
Certificate of Occupancy 
Minimum Percentage of Affordable 
Units Issued a Temporary or Final 
Certificate of Occupancy 
25+1 
10 
50 
50 
75 
75 
90 
100 
3. Design. The following design requirements apply to affordable housing developments, excluding prior 
round units.  
a. Design of 100 percent affordable developments: 
i. Restricted units must meet the minimum square footage required for the number of inhabitants for 
which the unit is marketed and the minimum square footage required for each bedroom, as set 
forth in the Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4. 
ii. Each bedroom in each restricted unit must have at least one window. 
iii. Restricted units must include adequate air conditioning and heating. 
b. Design of developments comprising market-rate rental units and restricted rental units. The following 
does not apply to prior round units, unless stated otherwise.  
i. Restricted units must use the same building materials and architectural design elements (for 
example, plumbing, insulation, or siding) as market-rate units of the same unit type (for example, 
flat or townhome) within the same development, except that restricted units and market-rate units 
may use different interior finishes.  This shall apply to prior round units.  
ii. Restricted units and market-rate units within the same affordable development must be sited such 
that restricted units are not concentrated in less desirable locations. 
iii. Restricted units may not be physically clustered so as to segregate restricted and market-rate units 
within the same development or within the same building, but must be interspersed throughout the 
development, except that age-restricted and supportive housing units may be physically clustered 
if the clustering facilitates the provision of on-site medical services or on-site social services. Prior 
round affordable units shall be integrated with market rate units to the extent feasible. 
iv. Residents of restricted units must be offered the same access to communal amenities as residents 
of market-rate units within the same affordable development. Examples of communal amenities 
include, but are not limited to, community pools, fitness and recreation centers, playgrounds, 
common rooms and outdoor spaces, and building entrances and exits. This shall apply to prior 
round units.  
v. Restricted units must include adequate air conditioning and heating and must use the same type of 
cooling and heating sources as market-rate units of the same unit type.   This shall apply to prior 
round units.  
vi. Each bedroom in each restricted unit must have at least one window. 
vii. Restricted units must be of the same unit type as market-rate units within the same building. 


 
Borough of Eatontown, Monmouth County | Page 15 of 38 
viii. Restricted units and bedrooms must be no less than 90 percent of the minimum size prescribed 
by the Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4.  
c. Design of developments containing for-sale units, including those with a mix of rental and for-sale 
units. Restricted rental units shall meet the requirements of section b above. Restricted sale units shall 
comply with the below: 
i. Restricted units must use the same building standards as market-rate units of the same unit type 
(for example, flat, townhome, or single-family home), except that restricted units and market-rate 
units may use different interior finishes. This shall apply to prior round units.  
ii. Restricted units may be clustered, provided that the buildings or housing product types containing 
the restricted units are integrated throughout the development and are not concentrated in an 
undesirable location or in undesirable locations. Prior round affordable units shall be integrated 
with market rate units to the extent feasible. 
iii. Restricted units may be of different unit housing product types than market-rate units, provided 
that there is a restricted option available for each market rate housing type. Developments 
containing market-rate duplexes, townhomes, and/or single-family homes shall offer restricted 
housing options that also include duplexes, townhomes, and/or single-family homes. Penthouses 
and higher priced end townhouses may be exempt from this requirement. The proper ratio for 
restricted to market-rate unit type shall be subject to municipal ordinance or, if not specified, shall 
be determined at the time of site plan approval.  
iv. Restricted units must meet the minimum square footage required for the number of inhabitants for 
which the unit is marketed and the minimum square footage required for each bedroom, as set 
forth in the Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4. 
v. Penthouse and end units may be reserved for market-rate sale, provided that the overall number, 
value, and distribution of affordable units across the development is not negatively impacted by 
such reservation(s). 
vi. Residents of restricted units must be offered the same access to communal amenities as residents 
of market-rate units within the same affordable development. Examples of communal amenities 
include, but are not limited to, community pools, fitness and recreation centers, playgrounds, 
common rooms and outdoor spaces, and building entrances and exits. This shall apply to prior 
round units.  
vii. Each bedroom in each restricted unit must have at least one window; and 
viii. 
Restricted units must include adequate air conditioning and heating. 
4. Utilities. 
a. Affordable units shall utilize the same type of cooling and heating source as market-rate units within 
the affordable housing development. 
b. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall 
be consistent with the utility allowance in accordance with N.J.AC 5:80-26.13(e). 
5. Low/moderate split and bedroom distribution.  
a. Affordable units shall be divided equally between low- and moderate-income units, except that where 
there is an odd number of affordable housing units, the extra unit shall be a low-income unit. 
b. In each affordable housing development, at least 50% of the restricted units within each bedroom 
distribution rounded up to the nearest whole number  shall be very low- or low-income units.   
c. Within rental developments, of the total number of affordable rental units, at least 13%, rounded up to 
the nearest whole number, shall be affordable to very low-income households. The very low-income 
units shall be distributed between each bedroom count as proportionally as possible, to the nearest 


 
Borough of Eatontown, Monmouth County | Page 16 of 38 
whole unit, to the total number of restricted units within each bedroom count, and counted as part of 
the required number of low-income units within the development. 
d. Affordable housing developments that are not age-restricted or supportive housing shall be structured 
such that: 
i. At a minimum, the number of bedrooms within the restricted units equals twice the number of 
restricted units; 
ii. Two-bedroom and/or three-bedroom units compose at least 50 percent of all restricted units; 
iii. The combined number of efficiency and one-bedroom units shall be no greater than 20%, rounded 
down, of the total number of low- and moderate-income units.  
iv. At least 30% of all low- and moderate-income units,  rounded up shall be two-bedroom units.  
v. At least 20% of all low- and moderate-income units, rounded up shall be three-bedroom units.  
vi. The remaining units may be allocated among two- and three- bedroom units at the discretion of 
the developer.  
e. Affordable housing developments that are age-restricted or supportive housing, except those 
supportive housing units whose sponsoring program determines the unit arrangements, shall be 
structured such that, at a minimum, the number of bedrooms shall equal the number of age-restricted 
or supportive housing low- and moderate-income units within the inclusionary development. 
Supportive housing units whose sponsoring program determines the unit arrangement shall comply 
with all requirements of the sponsoring program. The standard may be met by having all one-bedroom 
units or by having a two-bedroom unit for each efficiency unit. In affordable housing developments 
with 20 or more restricted units that are age-restricted or supportive housing, two-bedroom units must 
comprise at least 5% of those restricted units. 
6. Accessibility requirements. 
a. Any new construction shall be adaptable; however, elevators shall not be required in any building or 
within any dwelling unit for the purpose of compliance with this section. In buildings without elevator 
service, only ground floor dwelling units shall be required to be constructed to conform with the 
technical design standards of the barrier free subcode.  “Ground floor” means the first floor with a 
dwelling unit or portion of a dwelling unit, regardless of whether that floor is at grade. A building may 
have more than one ground floor. 
b. Notwithstanding the exemption for townhouse dwelling units in the barrier free subcode, the first floor 
of all townhouse dwelling units and of all other multifloor dwelling units that are attached to at least 
one other dwelling unit shall be subject to the technical design standards of the barrier free subcode 
and shall include the following features: 
i. An adaptable toilet and bathing facility on the first floor; 
ii. An adaptable kitchen on the first floor; 
iii. An interior accessible route of travel however an interior accessible route of travel shall not be 
required between stories; 
iv. An adaptable room that can be used as a bedroom, with a door, or the casing for the installation of 
a door that is compliant with the Barrier Free Subcode, on the first floor; 
v. If not all of the foregoing requirements in b.i. through b.iv. can be satisfied, then an interior 
accessible route of travel shall be provided between stories within an individual unit; and 
vi. An accessible entranceway as set forth in P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the 
Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that the municipality has collected funds from 
the developer sufficient to make 10% of the adaptable entrances in the development accessible: 


 
Borough of Eatontown, Monmouth County | Page 17 of 38 
(a) Where a unit has been constructed with an adaptable entrance, upon the request of a disabled 
person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be 
installed. 
(b) To this end, the builder of restricted units shall deposit funds within the Affordable Housing 
Trust Fund sufficient to install accessible entrances in 10% of the affordable units that have 
been constructed with adaptable entrances. 
(c) The funds deposited shall be expended for the sole purpose of making the adaptable entrance 
of an affordable unit accessible when requested to do so by a person with a disability who 
occupies or intends to occupy the unit and requires an accessible entrance. 
(d) The developer of the restricted units shall submit to the Construction Official a design plan and 
cost estimate for the conversion from adaptable to accessible entrances. 
(e) Once the Construction Official has determined that the design plan to convert the unit entrances 
from adaptable to accessible meets the requirements of the Barrier Free Subcode, N.J.A.C. 
5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to 
the Affordable Housing Trust Fund and earmarked appropriately. 
vii. Full compliance with the foregoing provisions shall not be required where an entity can 
demonstrate that it is “site-impracticable” to meet the requirements. If full compliance with this 
section would be site impracticable, compliance with this section for any portion of the dwelling 
shall be required to the extent that it is not site impracticable. Determinations of site 
impracticability shall comply with the Barrier Free Subcode at N.J.A.C. 5:23-7. 
§22-650.6 
F. Affordable Housing Programs  
1. Pursuant to amended UHAC regulations at N.J.A.C. 5:80-26.1 et seq. and, in addition, pursuant to P.L. 
2024, c.2 and specifically to the amended FHA at N.J.S.A. 52:27D-311.m, “All parties shall be entitled to 
rely upon regulations on municipal credits, adjustments, and compliance mechanisms adopted by the 
Council on Affordable Housing unless those regulations are contradicted by statute, including but not 
limited to P.L. 2024, c.2, or binding court decisions.” The following are many of the main provisions of 
the COAH regulations at either N.J.A.C. 5:93 or 5:97 that have been upheld by the NJ Supreme Court. 
Municipalities should consult the cited full COAH regulations when preparing the HEFSP for required 
documentation, etc. Additional compliance details may also be included in the specific municipal program 
manual.  
2. Supportive Housing and Group Homes (per N.J.A.C. 5:97-6.10). 
a. The following provisions shall apply to group homes, residential health care facilities, and supportive 
shared living housing: 
i. Units are subject to Affirmative Marketing requirements, household certification, and 
administrative agent oversight; and may, with the approval of the municipal housing liaison and 
the administrative agent, be leased either by the bedroom or to a single household in the case of 
multi-bedroom configurations, provided such arrangement is consistent with the Federal Fair 
Housing Act (Title VIII of the Civil Rights Act of 1968). 
ii. Units may, with the approval of the administrative agent, be subject to a master lease by an 
approved supportive housing operator, provided that all subleases are to be certified supportive 
housing households and remain fully subject to the affordability controls of this subchapter. Rents 
for supportive housing units shall not exceed the rent standards established and published by the 
New Jersey Department of Human Services.  
iii. The unit of credit shall be the bedroom.  However, the unit of credit shall be the unit if occupied 
by a single person or household.  


 
Borough of Eatontown, Monmouth County | Page 18 of 38 
iv. Housing that is age-restricted shall be included with the maximum number of units that may be 
age-restricted pursuant to the Act. 
v. Occupancy shall not be restricted to youth under 18 years of age. 
vi. In affordable developments with 20 or more restricted units that are supportive housing, two-
bedroom units must compose at least five percent of those restricted units. 
vii. The bedrooms and/or units shall comply with UHAC with the following exceptions: 
(a) Affirmative marketing; however, group homes, residential health care facilities, permanent 
supportive housing, and supportive shared living housing shall be affirmatively marketed to 
broadest possible population of qualified individuals with special needs in accordance with a 
plan approved by the sponsoring program; 
(b) Affordability average and bedroom distribution (N.J.A.C. 5:80-26.4).  
viii. 
With the exception of units established with capital funding through a 20-year operating 
contract with the Department of Human Services, Division of Developmental Disabilities, group 
homes, residential health care facilities, supportive shared living housing and permanent 
supportive housing shall have the appropriate controls on affordability in accordance with the Act. 
In the event that a supportive housing provider is unable to record or execute a long-term deed 
restriction, the units shall be subject to annual recertification by the Municipal Housing Liaison to 
confirm continued occupancy and compliance with this Section. 
ix. Objective standards shall be applied in the selection of tenants for supportive housing units and 
shall be designed to ensure that individuals are not excluded in an arbitrary or capricious manner. 
x. The following documentation shall be submitted by the sponsor to the municipality prior to 
marketing the completed units or facility: 
(a) An Affirmative Marketing Plan in accordance with D1 above; and 
(b) If applicable, proof that the supportive and/or special needs housing is regulated by the New 
Jersey Department of Health and Senior Services, the New Jersey Department of Human 
Services or another State agency in accordance with the requirements of this section, which 
includes validation of the number of bedrooms or units in which low- or moderate-income 
occupants reside. 
xi. The sponsor/owner shall complete annual monitoring as directed by the MHL. 
§22-650.7 
G. Regional Income Limits. 
1. Administrative agents shall use the current regional income limits for the purpose of pricing affordable 
units and determining income eligibility of households. 
2. Regional income limits are based on regional median income, which is established by a regional weighted 
average of the “median family incomes” published by HUD. The procedure for computing the regional 
median income is detailed in N.J.A.C. 5:80-26.3. 
3. Updated regional income limits are effective as of the effective date of the regional Section 8 income 
limits for the year, as published by HUD, or 45 days after HUD publishes the regional Section 8 income 
limits for the year, whichever comes later. The new income limits may not be less than those of the 
previous year. 
H. Maximum Initial Rents And Sales Prices. 
1. In establishing rents and sales prices of affordable housing units, the Administrative Agent shall follow 
the procedures set forth in UHAC N.J.A.C. 5:80-26.4. 


 
Borough of Eatontown, Monmouth County | Page 19 of 38 
2. The average rent for all restricted units within each affordable housing development shall be affordable to 
households earning no more than 52 percent of regional median income. 
3. The maximum rent for restricted rental units within each affordable housing development shall be 
affordable to households earning no more than 60% of regional median income.  
4. 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 13% of all low- and 
moderate-income rental units shall be affordable to households earning no more than 30% of median 
income. These very low-income units shall be part of the low-income requirement and very-low-income 
units should be distributed between each bedroom count as proportionally as possible, to the nearest whole 
unit, to the total number of restricted units within each bedroom count. 
5. The maximum sales price of restricted ownership units within each affordable housing development shall 
be affordable to households earning no more than 70% of median income, and each affordable housing 
development must achieve an affordability average that does not exceed 55% for all 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 when the number of low- and moderate-income units 
permits. 
6. The master deeds and declarations of covenants and restrictions for affordable developments 
may not distinguish between restricted units and market-rate units in the calculation of any 
condominium or homeowner association fees and special assessments to be paid by low- and 
moderate-income purchasers and those to be paid by market-rate purchasers. Notwithstanding the 
foregoing sentence, condominium units subject to a municipal ordinance adopted before December 20, 
2004, which ordinance provides for condominium or homeowner association fees and/or assessments 
different from those provided for in this subsection are governed by the ordinance. 
7. In determining the initial sales prices and rents for compliance with the affordability average requirements 
for restricted family units, the following standards shall be met: 
a. A studio or efficiency unit shall be affordable to a one-person household; 
b. A one-bedroom unit shall be affordable to a one and one-half person household; 
c. A two-bedroom unit shall be affordable to a three-person household; 
d. A three-bedroom unit shall be affordable to a four and one-half person household; and 
e. A four-bedroom unit shall be affordable to a six-person household. 
8. In determining the initial rents and sales prices for compliance with the affordability average requirements 
for restricted units in assisted living facilities and age-restricted and special needs and supportive housing 
developments, the following standards shall be met: 
a. A studio or efficiency unit shall be affordable to a one-person household; 
b. A one-bedroom unit shall be affordable to a one and one-half person household; and 
c. A two-bedroom unit shall be affordable to a two-person household or to two one-person households. 
Where pricing is based on two one-person households, the developer shall provide a list of units so 
priced to the Municipal Housing Liaison and the Administrative Agent. 
9. The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying 
cost of the unit, including principal and interest (based on a mortgage loan equal to 95 percent of the 
purchase price and the FreddieMac 30-Year Fixed Rate-Mortgage rate of interest), property taxes, 
homeowner and private mortgage insurance and condominium or homeowner association fees do not 
exceed 30 percent of the eligible monthly income of the appropriate size household as determined pursuant 
to N.J.A.C. 5:80-26.7, as may be amended and supplemented; provided, however, that the price shall be 


 
Borough of Eatontown, Monmouth County | Page 20 of 38 
subject to the affordability average requirement of N.J.A.C. 5:80-26.4, as may be amended and 
supplemented. 
10. The initial rent for a restricted rental unit shall be calculated so that the total monthly housing expense, 
including an allowance for tenant-paid utilities, does not exceed 30 percent of the gross monthly income 
of a household of the appropriate size whose income is targeted to the applicable percentage of median 
income for the unit, as determined pursuant to N.J.A.C. 5:80-26.3, as may be amended and supplemented. 
The rent shall also comply with the affordability average requirement of N.J.A.C. 5:80-26.4, as may be 
amended and supplemented. The initial rent for a restricted rental unit shall be calculated so the eligible 
monthly housing expenses/income, including an allowance for tenant-paid utilities does not  exceed 30 
percent of gross income of and the appropriate household size as determined pursuant to N.J.A.C. 5:80-
26.3, as may be amended and supplemented. 
11. At the anniversary date of the tenancy of the certified household occupying a restricted rental unit, 
following proper notice provided to the occupant household pursuant to N.J.S.A. 2A:18-61.1.f, the rent 
may be increased to an amount commensurate with the annual percentage increase in the Consumer Price 
Index for All Urban Consumers (CPI-U), specifically U.S. Bureau of Labor Statistics Series 
CUUR0100SAH, titled “Housing in Northeast urban, all urban consumers, not seasonally adjusted.” Rent 
increases for units constructed pursuant to Low-Income Housing Tax Credit regulations shall be indexed 
pursuant to the regulations governing Low-Income Housing Tax Credits. 
§22-650.8 
I. Affirmative Marketing. 
1. The municipality shall adopt, by resolution, an Affirmative Marketing Plan, subject to approval of the 
Superior Court, compliant with N.J.A.C. 5:80-26.16, as may be amended and supplemented. 
2. The Affirmative Marketing Plan is a regional marketing strategy designed to attract buyers and/or renters 
of all majority and minority groups, regardless of race, creed, color, national origin, ancestry, marital or 
familial status, gender, affectional or sexual orientation, disability, age, or number of children, to housing 
units which are being marketed by a developer, sponsor or owner of affordable housing. The Affirmative 
Marketing Plan is intended to target those potentially eligible persons who are least likely to apply for 
affordable units in that region. It is a continuing program that directs all marketing activities toward 
Housing Region 4 and is required to be followed throughout the period of deed restriction. 
3. The Affirmative Marketing Plan provides the following preferences, provided that units that remain 
unoccupied after these preferences are exhausted may be offered to households without regard to these 
preferences.  
a. Where the municipality has entered into an agreement with a developer or residential development 
owner to provide a preference for very-low-,low-, and moderate-income veterans who served in time 
of war or other emergency, pursuant to N.J.S.A. 52:27D-311.j, there shall be a preference for veterans 
for up to 50 percent of the restricted rental units in a particular project.   
b. There shall be a regional preference for all households that live and/or work in Housing Region 4 
comprising Monmouth, Mercer and Ocean Counties.    
c. Subordinate to the regional preference, there shall be a preference for households that live and/or work 
in New Jersey.  
d. With respect to existing restricted units undergoing approved rehabilitation for the purpose of 
preservation or to restricted units newly created to replace existing restricted units undergoing 
demolition, a preference for the very-low-, low-, and moderate-income households that are displaced 
by the rehabilitation or demolition and replacement. 
4. The municipality has the ultimate responsibility for adopting the Affirmative Marketing Plan and for the 
proper administration of the Affirmative Marketing Process, including the marketing of initial sales and 
rentals and resales and re-rentals. The Administrative Agent designated by the municipality shall 


 
Borough of Eatontown, Monmouth County | Page 21 of 38 
implement the Affirmative Marketing Process to ensure the Affirmative Marketing of all affordable units, 
with the exception of affordable programs that are exempt from Affirmative Marketing as noted herein. 
5. The Affirmative Marketing Process shall describe the media to be used in advertising and publicizing the 
availability of housing. In implementing the Affirmative Marketing Process, the Administrative Agent 
shall consider the use of language translations where appropriate. 
6. Applications for affordable housing or notices thereof, if offered online, shall be available in several 
locations, including, at a minimum, the County Administration Building and/or the County Library for 
each county within the housing region; the municipal administration building and municipal library in the 
municipality in which the units are located; and the developer’s rental or sales office. The developer shall 
mail applications to prospective applicants upon request and shall make applications available through a 
secure online website address. 
7. In addition to other Affirmative Marketing strategies, the Administrative Agent shall provide specific 
notice of the availability of affordable housing units on the New Jersey Housing Resource Center website. 
Any other entities, including developers or persons or companies retained to implement the Affirmative 
Marketing Process, shall comply with this paragraph. 
8. In implementing the Affirmative Marketing Process, the Administrative Agent shall provide a list of 
counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, 
mortgage qualification, rental lease requirements, and landlord/tenant law. 
9. The Affirmative Marketing Process for available affordable units shall begin at least four months (120 
days) prior to the expected date of occupancy. 
10. The cost to affirmatively market the affordable units shall be the responsibility of the developer, sponsor 
or owner, with the exception of Affirmative Marketing for resales.  
J. Selection of Occupants of Affordable Housing Units. 
1. The Administrative Agent shall use a random selection process to select occupants of very low-, low- and 
moderate-income housing. 
2. A pool of interested households will be maintained in accordance with the provisions of N.J.A.C. 5:80-
26.16. 
K. Occupancy Standards. 
1. In referring certified households to specific restricted units, to the extent feasible, and without causing an 
undue delay in occupying the unit, the Administrative Agent shall strive to: 
a. Ensure each bedroom is occupied by at least one person, except for age-restricted and supportive and 
special needs housing units; 
b. Provide a bedroom for every two adult occupants; 
c. With regard to occupants under the age of 18, accommodate the household’s requested arrangement, 
except that such arrangement may not result in more than two occupants under the age of 18 occupying 
any bedroom; and 
d. Avoid placing a one-person household into a unit with more than one bedroom. 
L. Control Periods for Restricted Ownership Units and Enforcement Mechanisms. 
1. Control periods for restricted ownership units shall be in accordance with N.J.A.C. 5:80- 26.6, as may be 
amended and supplemented, and each restricted ownership unit shall remain subject to the controls on 
affordability for a period of at least 30 years subject to the requirements of N.J.A.C. 5:80-26.6, as may be 
amended and supplemented.  
2. Rehabilitated housing units that are improved to code standards shall be subject to affordability controls 
for a period of not less than 10 years (crediting towards present need only). 


 
Borough of Eatontown, Monmouth County | Page 22 of 38 
3. The affordability control period for a restricted ownership unit shall commence on the date the initial 
certified household takes title to the unit.  The date of commencement shall be identified in the deed 
restriction. 
4. If existing affordability controls are being extended, the extended control period for a restricted ownership 
unit commences on the effective date of the extension, which is the end of the original control period. 
5. After the end of any control period, the restricted ownership unit remains subject to the affordability 
controls set forth in this subchapter until the owner gives notice of their intent to make an exit sale, at 
which point: 
a. If the municipality exercises the right to extend the affordability controls on the unit, no exit sale 
occurs and a new control period commences; or 
b. If the municipality does not exercise the right to extend the affordability controls on the unit, the 
affordability controls terminate following the exit sale. 
6. Prior to the issuance of any building permit for the construction/rehabilitation of restricted ownership 
units, the developer/owner and the municipality shall record a preliminary instrument provided by the 
Administrative Agent. 
7. Prior to the issuance of the initial certificate of occupancy for a restricted ownership unit and upon each 
successive sale during the period of restricted ownership, the Administrative Agent shall determine the 
restricted price for the unit and shall also determine the nonrestricted, fair market value of the unit based 
on either an appraisal or the unit’s equalized assessed value without the restrictions in place.  
8. At the time of the initial sale of the unit and upon each successive price-restricted sale, the initial purchaser 
shall execute and deliver to the Administrative Agent a recapture note obliging the purchaser, as well as 
the purchaser’s heirs, successors, and assigns, to repay, upon the first non-exempt sale after the unit’s 
release from the restrictions set forth in this Ordinance, an amount equal to the difference between the 
unit’s non-restricted fair market value and its restricted price, and the recapture note shall be secured by a 
recapture lien evidenced by a duly recorded mortgage on the unit. 
9. The affordability controls set forth in this Ordinance shall remain in effect despite the entry and 
enforcement of any judgment of foreclosure with respect to price-restricted ownership units. 
§22-650.9 
M. Price Restrictions for Restricted Ownership Units and Resale Prices. 
1. Price restrictions for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.7, as may be 
amended and supplemented, including: 
a. The initial purchase price and affordability percentage for a restricted ownership unit shall be set by 
the Administrative Agent. 
b. The Administrative Agent shall approve all resale prices, in writing and in advance of the resale, to 
assure compliance with the standards set forth in N.J.A.C 5:80-26.7.   
i. If the resale occurs prior to the one-year anniversary of the date on which title to the unit was 
transferred to a certified household, the maximum resale price for a is the most recent non-exempt  
purchase price. 
ii. If the resale occurs on or after such anniversary date, the maximum resale price is the most recent 
non-exempt purchase price increased to reflect the cumulative annual percentage increases to the 
regional median income, effective as of the same date as the regional median income calculated 
pursuant to N.J.A.C. 5:80-26.3 
c. The owners of restricted ownership units may apply to the Administrative Agent to increase the 
maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital 
improvements shall be: 


 
Borough of Eatontown, Monmouth County | Page 23 of 38 
i. those that render the unit suitable for a larger household or the addition of a bathroom.  
ii. The maximum resale price may be further increased by an amount up to the cumulative dollar 
value of approved capital improvements made after the last non-exempt sale for improvements 
and/or upgrades to the unit, excluding capital improvements paid for by the entity favored on the 
recapture note and recapture lien described at N.J.A.C. 5:80-26.6(d); 
d. No increase for capital improvements is permitted if the maximum resale price prior to adjusting for 
capital improvements already exceeds whatever initial purchase price the unit would have if it were 
being offered for purchase for the first time at the initial affordability percentage. All adjustments for 
capital improvements are subject to 10-year, straight-line depreciation.  
2. Upon the resale of a restricted ownership unit, all items of property that are permanently affixed to the 
unit or were included when the unit was initially restricted (for example, refrigerator, range, washer, dryer, 
dishwasher, wall-to-wall carpeting) shall be included in the maximum allowable resale price. Other items 
may be sold to the purchaser at a reasonable price that has been approved by the Administrative Agent at 
the time of the signing of the agreement to purchase but shall be separate and apart from any contract of 
sale for the underlying real estate. The purchase of central air conditioning installed subsequent to the 
initial sale of the unit and not included in the base price may be made a condition of the unit resale provided 
the price of the air conditioning equipment, which shall be subject to 10-year, straight-line depreciation, 
has been approved by the Administrative Agent. Unless otherwise approved by the Administrative Agent, 
the purchase of any property other than central air conditioning shall not be made a condition of the unit 
resale. The seller and the purchaser must personally certify at the time of closing that no unapproved 
transfer of funds for the purpose of selling and receiving property has taken place at the time of or as a 
condition of resale. 
N. Buyer Income Eligibility. 
1. Buyer income eligibility for restricted ownership units shall be established pursuant to N.J.A.C. 5:80-
26.17, as may be amended and supplemented, such that very low-income ownership units shall be reserved 
for occupancy by households with a gross household income less than or equal to 30% of median income, 
low-income ownership units shall be reserved for occupancy by households with a gross household 
income less than or equal to 50% of median income and moderate-income ownership units shall be 
reserved for occupancy by households with a gross household income less than 80% of median income. 
2. Notwithstanding the foregoing, the Administrative Agent may, upon approval by the municipality, and 
subject to the Division’s approval, permit a moderate-income purchaser to buy a low-income unit if and 
only if the Administrative Agent can demonstrate that there is an insufficient number of eligible low-
income purchasers in the housing region to permit prompt occupancy of the unit and all other reasonable 
efforts to attract a low-income purchaser, including pricing and financing incentives, have failed. Any 
such low-income unit that is sold to a moderate-income household shall retain the required pricing and 
pricing restrictions for a low-income unit.  Similarly, the administrative agent may permit low-income 
purchasers to buy very-low-income units in housing markets where, as determined by the Division, units 
are reserved for very-low-income purchasers, but there is an insufficient number of very-low-income 
purchasers to permit prompt occupancy of the units. In such instances, the purchased unit must be 
maintained as a very-low-income unit and sold at a very-low-income price point such that on the next 
resale the unit will still be affordable to very-low-income households and able to be purchased by a very-
low-income household. A very-low-income unit that is seeking bonus credit pursuant to N.J.S.A. 52:27D-
311.k(9) must first be advertised exclusively as a very-low-income unit according to the Affirmative 
Marketing requirements at N.J.A.C. 5:80-26.16, then advertised as a very-low-income or low-income unit 
for at least 30 additional days prior to referring any low-income household to the unit. 
3. A certified household that purchases a restricted ownership unit must occupy it as the certified household’s 
principal residence and shall not lease the unit; provided, however, that the Administrative Agent may 
permit the owner of a restricted ownership unit, upon application and a showing of hardship, to lease the 
restricted unit to another certified household for a period not to exceed one year. 


 
Borough of Eatontown, Monmouth County | Page 24 of 38 
4. The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the 
household is a low-income household or a moderate-income household, as applicable to the unit, and the 
estimated monthly housing cost for the particular unit (including principal, interest, property taxes, 
homeowner and private mortgage insurance and condominium or homeowner association fees, as 
applicable) does not exceed 35 percent of the household’s eligible monthly income; provided, however, 
that this limit may be exceeded if one or more of the following circumstances exists: 
a. The household currently pays more than 35% (40% for households eligible for age-restricted units) of 
its gross household income for housing expenses, and the proposed housing expenses will reduce its 
housing costs; 
b. The household has consistently paid more than 35% (40% for households eligible for age-restricted 
units) of eligible monthly income for housing expenses in the past and has proven its ability to pay; or 
c. The household is currently in substandard or overcrowded living conditions; 
d. The household documents the existence of assets, within the asset limitation otherwise applicable, 
with which the household proposes to supplement the rent payments 
O. Limitations on Indebtedness Secured by Ownership Unit; Subordination. 
1. Prior to incurring any indebtedness to be secured by a restricted ownership unit, the owner shall apply to 
the Administrative Agent for a determination in writing that the proposed indebtedness complies with the 
provisions of this Section, and the Administrative Agent shall issue such determination prior to the owner 
incurring such indebtedness. 
With the exception of original purchase money mortgages, neither an owner nor a lender shall at any 
time during the control period cause or permit the total indebtedness secured by a restricted ownership 
unit to exceed 95% of the maximum allowable resale price of that unit, as such price is determined by 
the Administrative Agent in accordance with N.J.A.C. 5:80-26.7(c). 
 
P. Control Periods for Restricted Rental Units. 
1. Control periods for units that meet the definition of prior round units shall be pursuant to the 2001 UHAC 
rules originally adopted October 1, 2001, 33 N.J.R. 3432, and amended December 20, 2004, 36 N.J.R. 
5713 and shall remain subject to the requirements of this ordinance for a period of at least 30 years as 
applicable unless otherwise indicated. 
2. Other than for prior round units, control periods for restricted rental units shall be in accordance with 
N.J.A.C. 5:80-26.12, as may be amended and supplemented, and each restricted rental unit shall remain 
subject to the requirements of this Ordinance for a period of at least 40 years. Restricted rental units created 
as part of developments receiving 9% Low-Income Housing Tax Credits must comply with a control 
period of not less than a 30-year compliance period plus a 15-year extended use period for a total of 45 
years. 
3. The affordability control period for a restricted rental unit shall commence on the first date that a unit is 
issued a certificate of occupancy following the execution of the deed restriction or, if affordability controls 
are being extended, on the effective date of the extension, which is the end of the original control period. 
4. Rehabilitated renter-occupied housing units that are improved to code standards shall be subject to 
affordability controls for a period of not less than 10 years. 
5. Prior to the issuance of any building permit for the construction/rehabilitation of restricted rental units, 
the developer/owner and the municipality shall record a preliminary instrument provided by the 
Administrative Agent. 
6. Deeds of all real property that include restricted rental units shall contain deed restriction language. The 
deed restriction shall have priority over all mortgages on the property. The deed restriction shall be 
recorded by the developer with the county records office, and provided as filed and recorded, to the 
Administrative Agent within 30 days of the receipt of a certificate of occupancy. 


 
Borough of Eatontown, Monmouth County | Page 25 of 38 
7. A restricted rental unit shall remain subject to the affordability controls of this Ordinance despite the 
occurrence of any of the following events: 
a. Sublease or assignment of the lease of the unit; 
b. Sale or other voluntary transfer of the ownership of the unit; 
c. The entry and enforcement of any judgment of foreclosure on the property containing the unit; or 
d. The end of the control period, until the occupant household vacates the unit, or is certified as over-
income and the controls are released in accordance with UHAC. 
Q. Rent Restrictions for Rental Units; Leases and Fees. 
1. The initial rent for a restricted rental unit shall be set by the Administrative Agent. 
2. A written lease shall be required for all restricted rental units, except for units in an assisted living 
residence, and tenants shall be responsible for security deposits and the full amount of the rent as stated 
on the lease. A copy of the current lease for each restricted rental unit shall be retained on file by the 
Administrative Agent. 
3. No additional fees, operating costs, or charges shall be added to the approved rent (except, in the case of 
units in an assisted living residence, to cover the customary charges for food and services) without the 
express written approval of the Administrative Agent. 
a. Operating costs, for the purposes of this section, include certificate of occupancy fees, move-in fees, 
move-out fees, mandatory internet fees, mandatory cable fees, mandatory utility submetering fees, and 
for developments with more than one and a half off-street parking spaces per unit, parking fees for 
one parking space per household. 
4. Any fee structure that would remove or limit affordable unit occupant access to any amenities or services 
that are required or included for market-rate unit occupants is prohibited.  Application fees (including the 
charge for any credit check) shall not exceed 5% of the monthly rent of the applicable restricted unit to be 
applied to the costs of administering the controls applicable to the unit as set forth in this Ordinance. 
5. Fees for unit-specific, non-communal items that are charged to market-rate unit tenants on an optional 
basis, such as pet fees for tenants with pets, storage spaces, bicycle-share programs, or one-time rentals of 
party or media rooms, may also be charged to affordable unit tenants, if applicable.   
6. Pet fees may not exceed $30.00 per month and associated one-time payments for optional fees pertaining 
to pets, such as a pet cleaning fee, are prohibited.   
7. Fees charged to affordable unit tenants for other optional, unit-specific, non-communal items shall not 
exceed the amounts charged to market-rate tenants. 
8. For any prior round rental unit leased before December 20, 2024, elements of the existing fee structure 
that are consistent with prior rules, but inconsistent with 5:80-26.13(c)1, may continue until the occupant 
household’s current lease term expires or that occupant household vacates the unit, whichever occurs later. 
R. Tenant Income Eligibility. 
1. Tenant income eligibility shall be determined pursuant to N.J.A.C. 5:80-26.14, as may be amended and 
supplemented, and shall be determined as follows: 
a. Very low-income rental units shall be reserved for households with a gross household income less 
than or equal to 30% of the regional median income by household size. 
b. Low-income rental units shall be reserved for households with a gross household income less than or 
equal to 50% of the regional median income by household size. 
c. Moderate-income rental units shall be reserved for households with a gross household income less 
than 80% of the regional median income by household size.  


 
Borough of Eatontown, Monmouth County | Page 26 of 38 
2. The Administrative Agent shall certify a household as eligible for a restricted rental unit when the 
household is a very low-income, low-income or moderate-income household, as applicable to the unit, 
and the rent proposed for the unit does not exceed 35% (40% for age-restricted units) of the household’s 
eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.17, as may be amended and 
supplemented; provided, however, that this limit may be exceeded if one or more of the following 
circumstances exists: 
a. The household currently pays more than 35% (40% for households eligible for age-restricted units) of 
its gross household income for rent, and the proposed rent will reduce its housing costs; 
b. The household has consistently paid more than 35% (40% for households eligible for age-restricted 
units) of eligible monthly income for rent in the past and has proven its ability to pay; 
c. The household is currently in substandard or overcrowded living conditions; 
d. The household documents the existence of assets with which the household proposes to supplement 
the rent payments; or 
e. The household documents reliable anticipated third-party assistance from an outside source such as a 
family member in a form acceptable to the Administrative Agent and the owner of the unit. 
3. The applicant shall file documentation sufficient to establish the existence of any of the circumstances in 
2.a. through 2.e. above with the Administrative Agent, who shall counsel the household on budgeting. 
§22-650.10 
S. Municipal Housing Liaison. 
1. The Municipal Housing Liaison shall be  approved by municipal resolution. 
2. The Municipal Housing Liaison shall be approved by the Division, or is in the process of getting approval, 
and fully or conditionally meets the requirements for qualifications, including initial and periodic training 
as set forth in in N.J.A.C. 5:99-1 et seq. 
3. The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable 
housing program, including the following responsibilities, which may not be contracted out to the 
Administrative Agent:  
a. Serving as the primary point of contact for all inquiries from the Affordable Housing Dispute 
Resolution Program, the State, affordable housing providers, administrative agents and interested 
households. 
b. The oversight of the Affirmative Marketing Plan and affordability controls. 
c. When applicable, overseeing and monitoring any contracting Administrative Agent. 
d. Overseeing the monitoring of the status of all restricted units listed in the Fair Share Plan. 
e. Verifying, certifying and providing annual information within AHMS at such time and in such form 
as required by the Division. 
f. Coordinating meetings with affordable housing providers and administrative agents, as needed. 
g. Attending continuing education opportunities on affordability controls, compliance monitoring, and 
affirmative marketing as offered or approved by the Division. 
h. Overseeing the recording of a preliminary instrument in the form set forth at N.J.A.C. 5:80-26.1 for 
each affordable housing development. 
i. Coordinating with the Administrative Agent, municipal attorney and municipal Construction Code 
Official to ensure that permits are not issued unless the document required in C.8. above has been duly 
recorded. 
j. Listing on the municipal website contact information for the MHL and Administrative Agents. 


 
Borough of Eatontown, Monmouth County | Page 27 of 38 
§22-650.11 
T. Administrative Agent. 
1. All municipalities that have created or will create affordable housing programs and/or affordable units 
shall designate or approve, for each project within its HEFSP, an administrative agent to administer the 
affordable housing program and/or affordable housing units in accordance with the requirements of the 
FHA, NJAC 5:99-1 et seq. and UHAC.  
2. The fees for administrative agents shall be paid as follows:  
a. Administrative agent fees related to rental units shall be paid by the developer/owner. 
b. Administrative agent fees related to initial sale of units shall be paid by the developer. 
c. Administrative agent fees related to resales shall be paid by the seller of the affordable home.  
d. Administrative agent fees related to ongoing administration and enforcement shall be paid by the 
municipality. 
3. An Operating Manual for each affordable housing program shall be provided by the Administrative 
Agent(s). The Operating Manual(s) shall be available for public inspection in the Office of the Clerk and 
in the office(s) of the Administrative Agent(s). Operating manuals shall be adopted by resolution of the 
Governing Body.  
4. Subject to the role of the Administrative Agent(s), the duties and responsibilities as are set forth in 
N.J.A.C. 5:99-7and which are described in full detail in the Operating Manual, including those set forth 
in UHAC, include: 
a. Attending continuing education opportunities on affordability controls, compliance monitoring, and 
affirmative marketing as offered or approved by the Division; 
b. Affirmative marketing: 
i. Conducting an outreach process to affirmatively market affordable housing units in accordance 
with the Affirmative Marketing Plan of the municipality and the provisions of N.J.A.C. 5:80-26.16. 
ii. Providing counseling, or contracting to provide counseling services, to low- and moderate-income 
applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease 
requirements; and landlord/tenant law. 
c. Household certification. 
i. Soliciting, scheduling, conducting and following up on interviews with interested households. 
ii. Conducting interviews and obtaining sufficient documentation of gross income and assets upon 
which to base a determination of income eligibility for a low- or moderate-income unit; 
iii. Providing written notification to each applicant as to the determination of eligibility or non-
eligibility within 5 days of the determination thereof. 
iv. Requiring that all certified applicants for restricted units execute a certificate substantially in the 
firm, as applicable, of either the ownership or rental certificates set forth in the Appendices J and 
K of N.J.A.C. 5:80-26.1 et seq. 
v. Creating and maintaining a referral list of eligible applicant households living in the housing 
region, and eligible applicant households with members working in the housing region, where the 
units are located. 
vi. Employing a random selection process as provided in the Affirmative Marketing Plan when 
referring households for certification to affordable units. 
d. Affordability controls. 


 
Borough of Eatontown, Monmouth County | Page 28 of 38 
i. Furnishing to attorneys or closing agents forms of deed restrictions and mortgages for the 
recording at the time of conveyance of title of each restricted unit. 
ii. Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are 
effectuated and filed properly with the County Register of Deeds or County Clerk’s office after 
the termination of the affordability controls for each restricted unit in accordance with UHAC. 
iii. Communicating with lenders and the Municipal Housing Liaison regarding foreclosures. 
iv. Ensuring the issuance of Continuing Certificates of Occupancy or certifications pursuant to 
N.J.A.C. 5:80-26.11. 
e. Records retention. 
i. Creating and maintaining a file on each restricted unit for its control period, including the recorded 
deed with restrictions, recorded recapture mortgage, and note, as appropriate.  
ii. Records received, retained, retrieved, or transmitted in furtherance of crediting affordable units of 
a municipality constitute public records of the municipality as defined by N.J.S.A. 47:3-16, and 
are legal property of the municipality. 
f. Resales and re-rentals. 
i. Instituting and maintaining an effective means of communicating information between owners and 
the Administrative Agent regarding the availability of restricted units for resale or re-rental. 
ii. Instituting and maintaining an effective means of communicating information to very low-, low-, 
or moderate-income households regarding the availability of restricted units for resale or re-rental. 
g. Processing requests from unit owners. 
i. Reviewing and approving requests from owners of restricted units who wish to refinance or take 
out home equity loans during the term of their ownership to determine that the amount of 
indebtedness to be incurred will not violate the terms of this ordinance. 
ii. Reviewing and approving requests to increase sales prices from owners of restricted units who 
wish to make capital improvements to the units that would affect the selling price, such 
authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms 
and the depreciated cost of central air conditioning systems. 
iii. Notifying the municipality of an owner’s intent to sell a restricted unit. 
iv. Making determinations on requests by owners of restricted units for hardship waivers. 
h. Enforcement. 
i. Securing annually from the municipality a list of all affordable ownership units for which property 
tax bills are mailed to absentee owners, and notifying all such owners that they must either move 
back to their unit or sell it;  
ii. Securing from all developers and sponsors of restricted units, at the earliest point of contact in the 
processing of the project or development, written acknowledgement of the requirement that no 
restricted unit can be offered, or in any other way committed, to any person, other than a household 
duly certified to the unit by the Administrative Agent; 
iii. Sending annual mailings to all owners of affordable dwelling units reminding them of the notices 
and requirements outlined in N.J.A.C. 5:80-26.19(d)4; 
iv. Establishing a program for diverting unlawful rent payments to the municipal  Affordable Housing 
Trust Fund; and 
v. Creating and publishing a written operating manual for each affordable housing program 
administered by the Administrative Agent setting forth procedures for administering the 
affordability controls. 


 
Borough of Eatontown, Monmouth County | Page 29 of 38 
i. The Administrative Agent(s) shall, as delegated by the municipality, have the authority to take all 
actions necessary and appropriate to carry out its/their responsibilities, herein. 
U. Responsibilities of The Owner of a development containing affordable units.   
1. The owner of all developments containing affordable units subject to this subchapter or the assigned 
management company thereof shall provide to the administrative agent: 
a. Site plan, architectural plan, or other plan that identifies the location of each affordable unit, if subject 
to the site plan approval, settlement agreement, or other applicable document regulating the location 
of affordable units.  The administrative agent shall determine the location of affordable units if not set 
forth in the site plan approval, settlement agreement, or other applicable document. 
b. The total number of units in the project and the number of affordable units. 
c. The breakdown of the affordable units by or identification of affordable unit locations by bedroom 
count and income level, including street addresses / unit numbers, if subject to the site plan approval, 
settlement agreement, or other applicable document regulating the breakdown of affordable units.  The 
administrative agent shall determine the bedroom and income distribution if not set forth in the site 
plan approval, settlement agreement, or other applicable document. 
d. Floor plans of all affordable units, including complete and accurate identification of all rooms and the 
dimensions thereof. 
e. A projected construction schedule. 
f. The location of any common areas and elevators. 
g. The name of the person who will be responsible for official contact with the administrative agent for 
the duration of the project, which must be updated if the contact changes. 
2. In addition to A above, the owner of rental developments containing affordable rental units subject to this 
subchapter or the assigned management company thereof shall: 
a. Send to all current tenants in all restricted rental units an annual mailing containing a notice as to the 
maximum permitted rent and a reminder of the requirement that the unit must remain their principal 
place of residence, which is defined as residing in the unit at least 260 days out of each calendar year, 
together with the telephone number, mailing address, and email address of the administrative agent to 
whom complaints of excess rent can be issued. 
b. Provide to the administrative agent a description of any applicable fees. 
c. Provide to the administrative agent a description of the types of utilities and which utilities will be 
included in the rent. 
d. Agree and ensure that the utility configuration established at the start of the rent-up process not be 
altered at any time throughout the restricted period. 
e. Provide to the administrative agent a proposed form of lease for any rental units. 
f. Ensure that the tenant selection criteria for the applicants for affordable units not be more restrictive 
that the tenant selection criteria for applicants for non-restricted units. 
g. Strive to maintain the continued occupancy of the affordable units during the entire restricted period. 
3. In addition to A, above, the owner of affordable for-sale developments containing affordable for-sale  units 
subject to this subchapter or the assigned management company thereof shall provide the administrative 
agent: 
a. Proposed pricing for all units, including any purchaser options and add-on items. 
b. Condominium or homeowner association fees and any other applicable fees. 
c. Estimated real property taxes. 


 
Borough of Eatontown, Monmouth County | Page 30 of 38 
d. Sewer, water, trash disposal, and any other utility assessments. 
e. Flood insurance requirement, if applicable. 
f. The State-approved planned real estate development public offering statement and/or master deed, 
where applicable, as well as the full build-out budget. 
§22-650.12 
V. Enforcement of Affordable Housing Regulations 
1. Upon the occurrence of a breach of any of the regulations governing the affordable unit by an owner, 
developer or tenant, the municipality shall have all remedies provided at law or equity, including but not 
limited to foreclosure, tenant eviction, municipal fines, a requirement for household recertification, 
acceleration of all sums due under a mortgage, recoupment of any funds from a sale in the violation of the 
regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and 
specific performance. 
2. After providing written notice of a violation to an owner, developer or tenant of an affordable unit and 
advising the owner, developer or tenant of the penalties for such violations, the municipality may take the 
following action against the owner, developer or tenant for any violation that remains uncured for a period 
of 60 days after service of the written notice: 
a. The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation, or 
violations, of the regulations governing the affordable housing unit. If the owner, developer or tenant 
is found by the Court to have violated any provision of the regulations governing affordable housing 
units the owner, developer or tenant shall be subject to one or more of the following penalties, at the 
discretion of the Court: 
i. A fine of not more than $500 or imprisonment for a period not to exceed 90 days, or both, unless 
otherwise specified below, provided that each and every day that the violation continues or exists 
shall be considered a separate and specific violation of these provisions and not a continuation of 
the initial offense; 
ii. In the case of an owner who has rented his or her low- or moderate-income unit in violation of the 
regulations governing affordable housing units, payment into the Affordable Housing Trust Fund 
of the gross amount of rent illegally collected; 
iii. In the case of an owner who has rented his or her affordable unit in violation of the regulations 
governing affordable housing units, payment of an innocent tenant’s reasonable relocation costs, 
as determined by the Court. 
3. The municipality shall have the authority to levy fines against the owner of the development for instances 
of noncompliance with NJHRC advertising requirements (N.J.S.A. 52:27D-321.6.e.(2)), following written 
notice to the owner.  The fine for the first offense of noncompliance shall be $5,000, the fine for the second 
offense of noncompliance shall be $10,000, and the fine for each subsequent offense of noncompliance 
shall be $15,000.  
4. The municipality may file a court action in the Superior Court seeking a judgment, which  would result in 
the termination of the owner’s equity or other interest in the unit, in the nature of a mortgage foreclosure. 
Any judgment shall be enforceable as if the same were a judgment of default of the first purchase money 
mortgage and shall constitute a lien against the low- or moderate-income unit. 
a. Such judgment shall be enforceable, at the option of the municipality, by means of an execution sale 
by the Sheriff, at which time the affordable unit of the violating owner shall be sold at a sale price 
which is not less than the amount necessary to fully satisfy and pay off any first purchase money 
mortgage and prior liens and the costs of the enforcement proceedings incurred by the municipality , 
including attorney’s fees. The violating owner shall have the right to possession terminated as well as 
the title conveyed pursuant to the Sheriff’s sale. 


 
Borough of Eatontown, Monmouth County | Page 31 of 38 
b. The proceeds of the Sheriff’s sale shall first be applied to satisfy the first purchase money mortgage 
lien and any prior liens upon the low- or moderate-income unit. The excess, if any, shall be applied to 
reimburse the municipality for any and all costs and expenses incurred in connection with either the 
court action resulting in the judgment of violation or the Sheriff’s sale. In the event that the proceeds 
from the Sheriff’s sale are insufficient to reimburse the municipality in full as aforesaid, the violating 
owner shall be personally responsible for the full extent of such deficiency, in addition to any and all 
costs incurred by the municipality in connection with collecting such deficiency. In the event that a 
surplus remains after satisfying all of the above, such surplus shall be placed in escrow by the 
municipality for the owner and shall be held in such escrow for a maximum period of two years or 
until such earlier time as the owner shall make a claim with the municipality for such. Failure of the 
owner to claim such balance within the two year period shall automatically result in a forfeiture of 
such balance to the municipality.  Any interest accrued or earned on such balance while being held in 
escrow shall belong to and shall be paid to the municipality, whether such balance shall be paid to the 
owner or forfeited to the municipality. 
c. Foreclosure due to violation of the regulations governing affordable housing units shall not extinguish 
the restrictions of the regulations  governing affordable housing units as they apply to the low- and 
moderate-income unit. Title shall be conveyed to the purchaser at the Sheriff’s sale, subject to the 
restrictions and provisions of the regulations governing the affordable housing unit. The owner 
determined to be in violation of the provisions of this plan and from whom title and possession were 
taken by means of the Sheriff’s sale shall not be entitled to any right of redemption. 
d. If there are no bidders at the Sheriff’s sale, or if insufficient amounts are bid to satisfy the first purchase 
money mortgage and any prior liens, the municipality may acquire title to the affordable unit by 
satisfying the first purchase money mortgage and any prior liens and crediting the violating owner 
with an amount equal to the difference between the first purchase money mortgage and any prior liens 
and costs of the enforcement proceedings, including legal fees and the maximum resale price for which 
the affordable unit could have been sold under the terms of the regulations governing affordable 
housing units. This excess shall be treated in the same manner as the excess that would have been 
realized from an actual sale as previously described. 
e. Failure of the low- or moderate-income unit to be either sold at the Sheriff’s sale or acquired by the 
municipality shall obligate the owner to accept an offer to purchase from any qualified purchaser that 
may be referred to the owner by the municipality, with such offer to purchase being equal to the 
maximum resale price of the low- or moderate-income unit as permitted by the regulations governing 
affordable housing units. 
f. The affordable unit owner shall remain fully obligated, responsible and liable for complying with the 
terms and restrictions of governing affordable housing units until such time as title is conveyed from 
the owner. 
5. It is the responsibility of the municipal housing liaison and the administrative agent(s) to ensure that 
affordable housing units are administered properly. All affordable units must be occupied within a 
reasonable amount of time and be re-leased within a reasonable amount of time upon the vacating of the 
unit by a tenant. If an administrative agent or municipal housing liaison becomes aware of or suspects that 
a developer, landlord, or property manager has not complied with these regulations, it shall report this 
activity to the Division. The Division must notify the developer, landlord, or property manager, in writing, 
of any violation of these regulations and provide a 30-day cure period. If, after the 30-day cure period, the 
developer, landlord, or property manager remains in violation of any terms of this subchapter, including 
by keeping a unit vacant, the developer, landlord, or property manager may be fined up to the amount 
required to construct a comparable affordable unit of the same size and the deed-restricted control period 
will be extended for the length of the time the unit was out of compliance, in addition to the remedies 
provided for in this section. For the purposes of this subsection, a reasonable amount of time shall 
presumptively be 60 days, unless a longer period of time is required due to demonstrable market conditions 
and/or failure of the municipal housing liaison or the administrative agent to refer a certified tenant.  


 
Borough of Eatontown, Monmouth County | Page 32 of 38 
6. Banks and other lending institutions are prohibited from issuing any loan secured by owner occupied real 
property subject to the affordability controls set forth in this subchapter if such loan would be in excess 
of amounts permitted by the restriction documents recorded in the deed or mortgage book in the county 
in which the property is located. Any loan issued in violation of this subsection is void as against public 
policy.  
7. The Agency and the Department hereby reserve, for themselves and for each administrative agent 
appointed pursuant to this subchapter, all of the rights and remedies available at law and in equity for the 
enforcement of this subchapter, including, but not limited to, fines, evictions, and foreclosures as approved 
by a county-level housing judge.  
8. Appeals 
a. Appeals from all decisions of an administrative agent appointed pursuant to this subchapter must be 
filed, in writing, with the municipal housing liaison. A decision by the municipal housing liaison may 
be appealed to the Division. A written decision of the Division Director upholding, modifying, or 
reversing an administrative agent’s decision is a final administrative action. 
§22-650.13 
W. Development Fees.  
1. Purpose 
a. This section establishes standards for the collection, maintenance, and expenditure of development 
fees that are consistent with the amended Fair Housing Act (P.L.2024, c.2), N.J.A.C. 5:99, and the 
Statewide Non-Residential Development Fee Act (C. 40:55D-8.1 through 8.7). Fees collected pursuant 
to this Ordinance shall be used for the sole purpose of providing very low-, low- and moderate-income 
housing in accordance with a Court-approved Spending Plan. 
§22-650.14 
2. Basic Requirements 
a. The municipality previously adopted a development fee ordinance, which established the Municipal 
Affordable Housing Trust Fund.  
b. The municipality shall not spend development fees until the court has approved a plan for spending 
such fees. 
§22-650.15 
3. Residential Development Fees 
a. Imposed fees 
i. Residential developers, except for developers of the types of development specifically exempted 
below, shall pay a fee of 1.0% of the equalized assessed value for residential development, 
provided no increased density is permitted..   
ii. When an increase in residential density is permitted pursuant to a “d” variance granted under 
N.J.S.A. 40:55D-70d(5), developers shall be required to pay a “bonus” development fee of 6.0%  
of the equalized assessed value for each additional unit that may be realized, except that this 
provision shall not be applicable to a development that will include affordable housing. If the 
zoning on a site has changed during the two-year period preceding the filing of such a variance 
application, the base density for the purposes of calculating the bonus development fee shall be 
the highest density permitted by right during the two-year period preceding the filing of the 
variance application. 
Example: If an approval allows four units to be constructed on a site that was zoned for two 
units, the fees could equal 1.5% of the equalized assessed value on the first two units; and the 


 
Borough of Eatontown, Monmouth County | Page 33 of 38 
specified higher percentage of 6% of the equalized assessed value for the two additional units, 
provided zoning on the site has not changed during the two-year period preceding the filing of 
such a variance application. 
b. Eligible exactions, ineligible exactions and exemptions for residential development 
i. Affordable housing developments, developments where the developer is providing for the 
construction of affordable units elsewhere in the municipality, and developments where the 
developer has made an eligible payment in lieu of on-site construction of affordable units, if 
permitted by ordinance, or by agreement with the municipality and if approved by a municipality 
prior to the statutory elimination of payments in-lieu on March 20, 2024 per P.L.2024, c.2, shall 
be exempt from development fees. 
ii. Developments that have received preliminary or final site plan approval prior to the adoption of 
this ordinance and any preceding ordinance permitting the collection of development fees shall be 
exempt from the payment of development fees, unless the developer seeks a substantial change in 
the original approval. Where a site plan approval does not apply, the issuance of a zoning and/or 
building permit shall be synonymous with preliminary or final site plan approval for the purpose 
of determining the right to an exemption. In all cases, the applicable fee percentage shall be 
determined based upon the development fee ordinance in effect on the date that the construction 
permit is issued. 
iii. Development fees shall be imposed and collected when an existing structure undergoes a change 
to a more intense use, is demolished and replaced, or is expanded, if the expansion is not otherwise 
exempt from the development fee requirement. The development fee shall be calculated on the 
increase in the equalized assessed value of the improved structure. 
iv. Developers of one or two family owner occupied dwelling units and green buildings shall be 
subject to a reduced fee of fifty percent (50% 
 
v. Nonprofit organizations constructing residential projects which have received tax-exempt status 
pursuant to Section 501(c)(3) of the Internal Revenue Code, providing current evidence of that 
status is submitted to the Municipal Clerk, together with a certification that services of the 
organization are provided at reduced rates to those who establish an inability to pay existing 
charges, shall be exempted from paying a development fee. 
 
vi. Federal, state, county and local governments shall be exempted from paying a development fee. 
 
vii. No development fee shall be collected for the demolition and replacement of a residential building 
resulting from a fire or natural disaster.   
 
§22-650.16 
4. Non-Residential Development Fees 
a. Imposition of fees 
i. Within all zoning districts, non-residential developers, except for developers of the types of 
development specifically exempted, shall pay a fee equal to 2.5% of the equalized assessed value 
of the land and improvements, for all new non-residential construction on an unimproved lot or 
lots. 
ii. Within all zoning districts, non-residential developers, except for developers of the types of 
development specifically exempted, shall also pay a fee equal to 2.5% of the increase in equalized 


 
Borough of Eatontown, Monmouth County | Page 34 of 38 
assessed value resulting from any additions to existing structures to be used for non-residential 
purposes. 
iii. Development fees shall be imposed and collected when an existing structure is demolished and 
replaced. The development fee of 2.5% shall be calculated on the difference between the equalized 
assessed value of the pre-existing land and improvements and the equalized assessed value of the 
newly improved structure; i.e., land and improvements; and such calculation shall be made at the 
time a final certificate of occupancy is issued. If the calculation required under this section results 
in a negative number, the non-residential development fee shall be zero. 
b. Eligible exactions, ineligible exactions and exemptions for non-residential development 
i. The non-residential portion of a mixed-use inclusionary or market-rate development shall be 
subject to a 2.5% development fee, unless otherwise exempted below. 
ii. The 2.5% fee shall not apply to an increase in equalized assessed value resulting from alterations, 
change in use within existing footprint, reconstruction, renovations and repairs. 
c. Non-residential developments shall be exempt from the payment of non-residential development fees 
in accordance with the exemptions required pursuant to the Statewide Non-Residential Development 
Fee Act (N.J.S.A. 40:55D-8.1 through 8.7), as specified in Form N-RDF “State of New Jersey Non-
Residential Development Certification/Exemption.” Any exemption claimed by a developer shall be 
substantiated by that developer. 
d. A developer of a non-residential development exempted from the non-residential development fee 
pursuant to the Statewide Non-Residential Development Fee Act shall be subject to the fee at such 
time as the basis for the exemption no longer applies, and shall make the payment of the non-residential 
development fee, in that event, within three years after that event or after the issuance of the final 
certificate of occupancy of the non-residential development, whichever is later. 
e. If a property that was exempted from the collection of a non-residential development fee thereafter 
ceases to be exempt from property taxation, the owner of the property shall remit the fees required 
pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid non-
residential development fees under these circumstances may be enforceable by the municipality as a 
lien against the real property of the owner. 
§22-650.17 
5. Collection Procedures 
a. Upon the granting of a preliminary, final or other applicable approval for a development, the applicable 
approving authority shall direct its staff to notify the construction official responsible for the issuance 
of a building permit. 
b. For non-residential developments only, the developer shall also be provided with a copy of Form N-
RDF, “State of New Jersey Non-Residential Development Certification/Exemption,” to be completed 
by the developer as per the instructions provided in the Form N-RDF. The construction official shall 
verify the information submitted by the non-residential developer as per the instructions provided on 
Form N-RDF. The tax assessor shall verify exemptions and prepare estimated and final assessments 
as per the instructions provided in Form N-RDF. 
c. The construction official responsible for the issuance of a building permit shall notify the tax assessor 
of the issuance of the first construction permit for a development that is subject to a development fee. 
d. Within 90 days of receipt of that notice, the tax assessor shall provide an estimate, based on the plans 
filed, of the equalized assessed value of the development. 
e. The construction official responsible for the issuance of a final certificate of occupancy shall notify 
the tax assessor of any and all requests for the scheduling of a final inspection on property that is 
subject to a development fee. 


 
Borough of Eatontown, Monmouth County | Page 35 of 38 
f. Within 10 business days of a request for the scheduling of a final inspection, the tax assessor shall 
confirm or modify the previously estimated equalized assessed value of the improvements associated 
with the development; calculate the development fee; and thereafter notify the developer of the amount 
of the fee. 
g. Should the municipality fail to determine or notify the developer of the amount of the development 
fee within 10 business days of the request for final inspection, the developer may estimate the amount 
due and pay that estimated amount consistent with the dispute process set forth in Subsection b. of 
section 37 of P.L.2008, c.46 (N.J.S.A. 40:55D-8.6). 
h. Fifty percent (50%) of the development fee shall be collected at the time of issuance of the construction 
permit.  The developer shall be responsible for paying the difference between the fee calculated at the 
time of issuance of the construction permit and that determined at the time of issuance of certificate 
of occupancy.  
6. Appeal of development fees 
a. A developer may challenge residential development fees imposed by filing a challenge with the 
County Board of Taxation. Pending a review and determination by that board, collected fees shall be 
placed in an interest-bearing escrow account by the municipality. Appeals from a determination of the 
board may be made to the Tax Court in accordance with the provisions of the State Tax Uniform 
Procedure Law, R.S. 54:48-1 et seq., within 90 days after the date of such determination. Interest 
earned on amounts escrowed shall be credited to the prevailing party. 
b. A developer may challenge non-residential development fees imposed by filing a challenge with the 
director of the Division of Taxation. Pending a review and determination by the director, which shall 
be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest-bearing 
escrow account by the municipality. Appeals from a determination of the director may be made to the 
Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, R.S. 54:48-1 
et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall 
be credited to the prevailing party. 
§22-650.18 
7. Affordable Housing Trust Fund 
a. A separate, interest-bearing Municipal Affordable Housing Trust Fund shall be maintained by the 
chief financial officer of the municipality for the purpose of depositing development fees collected 
from residential and non-residential developers and proceeds from the sale of units with extinguished 
controls. 
b. The following additional funds shall be deposited in the Municipal Affordable Housing Trust Fund 
and shall at all times be identifiable by source and amount: 
i. Payments in lieu of on-site construction of an affordable unit, where previously permitted by 
ordinance or by agreement with the municipality and if approved by a municipality prior to the 
statutory elimination of payments in-lieu on March 20, 2024 per P.L.2024, c.2; 
ii. Funds contributed by developers to make 10% of the adaptable entrances in a townhouse or other 
multistory attached dwelling unit development accessible; 
iii. Rental income from municipally operated units; 
iv. Repayments from affordable housing program loans; 
v. Recapture funds; 
vi. Proceeds from the sale of affordable units; and 
vii. Any other funds collected in connection with the municipal affordable housing program including 
but not limited to interest earned on fund deposits. 


 
Borough of Eatontown, Monmouth County | Page 36 of 38 
c. The municipality shall provide the Division with written authorization, in the form of a tri-party escrow 
agreement(s) between the municipality, the Division and the financial institution in which the 
municipal affordable housing trust fund has been established to permit the Division to direct the 
disbursement of the funds as provided for in N.J.A.C. 5:99-2.1 et seq.  
d. Occurrence of any of the following deficiencies may result in the Division requiring the forfeiture of 
all or a portion of the funds in the municipal Affordable Housing Trust Fund: 
i. Failure to meet deadlines for information required by the Division in its review of a development 
fee ordinance; 
ii. Failure to commit or expend development fees within four years of the date of collection in 
accordance with N.J.A.C. 5:99-5.5; 
iii. Failure to comply with the requirements of the Non-Residential Development Fee Act and 
N.J.A.C. 5:99-3; 
iv. Failure to submit accurate monitoring reports pursuant to this subchapter within the time limits 
imposed by the Act, this chapter, and/or the Division; 
v. Expenditure of funds on activities not approved by the Superior Court or otherwise permitted by 
law; 
vi. Revocation of compliance certification or a judgment of compliance and repose; 
vii. Failure of a municipal housing liaison or administrative agent to comply with the requirements set 
forth at N.J.A.C. 5:99-6, 7, and 8; 
viii. 
Other good cause demonstrating that municipal affordable housing funds are not being 
used for an approved purpose. 
e. All interest accrued in the housing trust fund shall only be used on eligible affordable housing purposes 
approved by the Court. 
§22-650.19 
8. Use of Funds 
a. The expenditure of all funds shall conform to a Spending Plan approved by Superior Court. Funds 
deposited in the municipal Affordable Housing Trust Fund may be used for any activity approved by 
the Court to address the fair share obligation and may be set up as a grant or revolving loan program. 
Such activities include, but are not limited to: preservation or purchase of housing for the purpose of 
maintaining or implementing affordability controls; housing rehabilitation; new construction of 
affordable housing units and related costs; accessory apartments; a market-to-affordable program; 
conversion of existing non-residential buildings to create new affordable units; green building 
strategies designed to be cost-saving and in accordance with accepted national or state standards; 
purchase of land for affordable housing; improvement of land to be used for affordable housing; 
extensions or improvements of roads and infrastructure to affordable housing sites; financial assistance 
designed to increase affordability; administration necessary for implementation of the Housing 
Element and Fair Share Plan; and/or any other activity permitted by Superior Court and specified in 
the approved Spending Plan. 
b. Funds shall not be expended to reimburse the municipality or activities that occurred prior to the 
authorization of a municipality to collect development fees. 
c. At least a portion of all development fees collected and interest earned shall be used to provide 
affordability assistance to very low-, low- and moderate-income households in affordable units 
included in the municipal Fair Share Plan. A portion of the development fees which provide 
affordability assistance shall be used to provide affordability assistance to very low-income 
households. 


 
Borough of Eatontown, Monmouth County | Page 37 of 38 
i. Affordability assistance programs may include down payment assistance, security deposit 
assistance, low-interest loans, rental assistance, assistance with homeowners association or 
condominium fees and special assessments, infrastructure assistance, and assistance with 
emergency repairs. The specific programs to be used for affordability assistance shall be identified 
and described within the Spending Plan. 
ii. Affordability assistance for very low income households may include producing very low-income 
units or buying down the cost of low- or moderate-income units in the municipal Fair Share Plan 
to make them affordable to households earning 30% or less of median income.  
d. No more than 20% of all affordable housing trust funds, exclusive of those collected to fund an RCA 
prior to July 17, 2008,  shall be expended on administration, including, but not limited to, salaries and 
benefits for municipal employees or consultants’ fees necessary to develop or implement a new 
construction program, prepare and implement a Housing Element and Fair Share Plan, administer an 
Affirmative Marketing Program and for compliance with the Superior Court and the Program 
including the costs to the municipality of resolving a challenge. 
§22-650.20 
9. Monitoring 
a. On or before February 15 of each year, the municipality shall provide annual electronic data reporting 
of trust fund activity for the previous year from January 1st to December 31st through the AHMS 
Reporting System. This reporting shall include an accounting of all Municipal Affordable Housing 
Trust Fund activity, including the sources and amounts of all funds collected and the amounts and 
purposes for which any funds have been expended. Such reporting shall include an accounting of 
development fees collected from residential and non-residential developers, previously eligible 
payments in lieu of constructing affordable units on site (if permitted by ordinance or by agreement 
with the municipality prior to the March 20, 2024 statutory elimination per P.L. 2024, c.4), funds from 
the sale of units with extinguished controls, barrier-free escrow funds, rental income from municipally-
owned affordable housing units, repayments from affordable housing program loans, interest and any 
other funds collected in connection with municipal housing programs, as well as an accounting of the 
expenditures of revenues and implementation of the Spending Plan approved by the Court. 
10. Ongoing Collection of Fees 
a. The ability to impose, collect and expend development fees shall continue so long as the municipality 
retains authorization from the Court in the form of Compliance Certification or the good faith effort 
to obtain it. 
b. If the municipality fails to renew its ability to impose and collect development fees prior to the 
expiration of its Judgment of Compliance, it may be subject to forfeiture of any or all funds remaining 
within its Affordable Housing Trust Fund. Any funds so forfeited shall be deposited into the New 
Jersey Affordable Housing Trust Fund established pursuant to section 20 of P.L.1985, c.222 (C. 
52:27D-320). 
11. Emergent Affordable Housing Opportunities. Requests to expend affordable housing trust funds on 
emergent affordable housing opportunities not included in the municipal fair share plan shall be made to 
the Division and shall be in the form of a governing body resolution. Any request shall be consistent with 
N.J.A.C. 5:99-4.1.  
 
Repealer  
All ordinances or code provisions or parts thereof inconsistent with this Ordinance are hereby repealed to the 
extent of such inconsistency. 
 


 
Borough of Eatontown, Monmouth County | Page 38 of 38 
Severability 
If any section, subsection, paragraph, sentence or any other part of this Ordinance is adjudged unconstitutional 
or invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance. 
 
Effective Date 
This ordinance shall take effect upon its passage and publication, as required by law.