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Union (Union)Green Risk

ClosedPublic Works & Infrastructure

Midpoint Review

BID #: N/A

ISSUED: 7/9/2020

DUE: 7/1/2025

VALUE: TBD

100

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Green Risk

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Executive Summary

This is a midpoint review for Union City, Hudson County, New Jersey, concerning their Settlement Agreement with the Fair Share Housing Center (FSHC). The review, dated July 9, 2020, assesses Union City's compliance with the Fair Housing Act. It includes a status report on compliance mechanisms and unbuilt sites, inviting public comments. Union City received its final Judgment of Compliance and Repose (JOR) on October 23, 2018, which remains in effect until July 1, 2025.

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Document Text

--- Document: Midpoint Review Document ---
 
MIDPOINT REVIEW 
CITY OF UNION CITY 
Hudson County, New Jersey 
 
 
 
July 9, 2020 
 
 
 
 
 
 
 
 
Prepared By: 
 
Heyer, Gruel & Associates 
Community Planning Consultants 
236 Broad Street, Red Bank, NJ 07701 
(732) 741-2900 


Union City 
July 9, 2020 Midpoint Review 
 
2 
 
PREPARED BY HGA 
MIDPOINT REVIEW OF THE CITY OF UNION CITY, HUDSON COUNTY 
Purpose 
Union City’s Settlement Agreement with Fair Share Housing Center (“FSHC”) requires that Union City 
complies with the statutory midpoint review requirements of the Fair Housing Act (“FHA”) and 
specifically N.J.S.A. 52:27D-313, which provides in relevant part: “[t]he Council shall establish 
procedures for a realistic opportunity review at the midpoint of the certification period and shall 
provide for notice to the public.” Pursuant to the Settlement Agreement, that review requires the 
City to post on its website, with a copy to FSHC, a status report regarding its compliance 
mechanisms and whether or not unbuilt sites/unfulfilled mechanisms continue to present a realistic 
opportunity. Such posting shall invite any interested party to submit comments to the City, with a 
copy to FSHC, regarding the implementation of the Plan.  
Relevant Background 
In response to Mount Laurel IV, Union City filed a Declaratory Judgment action, along with a 
motion for temporary immunity, on July 6, 2015. the City and the Fair Share Housing Center (FSHC) 
executed a Settlement Agreement on May 2, 2017. Pursuant to the executed Settlement 
Agreement, the City has the following obligation: 
Rehabilitation Share: 1,442 
Prior Round Obligation: 0 
Third Round Obligation: 0 
As Union City is a State-designated Urban Aid Municipality, the City has Prior Round and Third 
Round Obligations of 0 units.  
In an Order dated October 23, 2018, Union City received its final Judgment of Compliance and 
Repose (“JOR”) to remain in effect until July 1, 2025. There were no conditions attached to the 
City’s JOR. In accordance with the Fair Housing Act and the Municipal Land Use Law (MLUL), the 
City prepared the Housing Element and Fair Share Plan, which was adopted by the City Planning 
Board on September 18, 2017. Additionally, the Board of Commissioners has adopted all requisite 
documents, including: 
• 
An Ordinance amending and replacing Chapter 40, Affordable Housing on July 24, 2017. 
This Ordinance includes Development Fees, compliance with COAH and UHAC 
Regulations, the mandatory sliding scale set-aside for inclusionary developments within the 
City, and a payment in lieu option of $175,000 per units. 
• 
Endorsement of Housing Element and Fair Share Plan on September 18, 2017 
• 
Resolution 2018-R-339 appointing Erin Knoedler as the Municipal Housing Liaison 
• 
Appointing Administrative Agents for Affordability Controls on September 14, 2018. At its 
meeting in July 2020, the Board of Commissioners will adopt a new resolution appointing 
Heyer, Gruel & Associates as its Administrative Agent. 


Union City 
July 9, 2020 Midpoint Review 
 
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PREPARED BY HGA 
• 
Resolution adopting Affirmative Marketing Plan on August 8, 2018. 
• 
A Spending Plan was adopted in 2017 and amended in 2018. The 2018 Spending Plan was 
endorsed by the Board of Commissioners on April 24, 2018. The City is in the process of 
once again amending its Spending Plan. 
 
Rehabilitation Program(s) Update 
Union City has a Rehabilitation/Present Need obligation of 1,442 units.  
County Rehabilitation Updates 
Union City continues to be part of the Hudson County Consortium (the “Consortium”). Because of 
the City’s continued partnership with the Consortium, the City and its residents are entitled to 
partake in the Community Development Block Grant (“CDBG”) as well as the HOME Investment 
Partnership Program (“HOME”). The CDBG program provides block grant funds for communities to 
carry out affordable housing and community development activities directed toward revitalizing 
neighborhoods, economic development, and providing improved community facilities and 
services.  
The HOME program is a housing rehabilitation program for renter or owner-occupied units. Funds 
from the HOME program are typically issued to nonprofits, individuals, corporations, and other 
public entities that are in partnership with communities.  
For the year July 1, 2017 to June 30, 2018, the City spent its $2,165,810.27 CDBG allocation on youth 
centers and services, street improvements, public services, and general program administration. 
For the year July 1, 2018 to June 30, 2019, Union City spent their $774,328.53 allocation on youth 
services, street improvements, health facilities, operating costs for homeless/AIDS patient programs, 
and general program administration. CBDG money from these two years did not go toward 
creating new affordable housing units. 
Since the adoption of the 2017 Housing Element and Fair Share Plan, two new developments 
received HOME funds from the Consortium. A two-family structure at 113 37th Street received 
$294,505 from HOME to rehabilitate the two units to create rental affordable units. The 
rehabilitation is currently underway and is expected to be complete and ready for occupancy by 
the fall of 2020. 
The second development is located at 518 10th Street and is a four-family building. That will 
produce four family rental affordable units. This project received $147,201 in HOME funds. This 
project is also under construction and is expected to be completed by the end of the summer. 
City Rehabilitation Updates 
In 2019, the City utilized funds from its Affordable Housing Trust Fund to rehabilitate 12 units at 519-
521 Summit Avenue, a development owned and operated by the Union City Housing Authority. 
The rehabilitation included bringing the entire building up to code, which consisted of replacing 12 


Union City 
July 9, 2020 Midpoint Review 
 
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PREPARED BY HGA 
boilers, 12 water heaters, all damaged baseboards throughout the building as well as 13 windows; 
updates to electrical, plumbing, and the roof; and related activities such as painting and 
replacement of hardware. 519-521 Summit Avenue continues to be operated by the Union City 
Housing Authority and its units are available to very low, low, and moderate-income households.  
The City is in the beginning stages of rehabilitating 40 units that are operated by the Union City 
Housing Authority. The 40 units are available to veterans of very low, low, and moderate-income. 
The units are within four buildings between 110 Cantello Street and 148 Cantello Street. The City is in 
the process of amending its Spending Plan to identify funds for this project. 
Realistic Opportunity Review 
The realistic opportunity standard applies to all mechanisms for non-adjustment municipalities and 
RDP/non-deferred mechanisms for Vacant Land/Durational Adjustment municipalities.  
Mechanism 
Description 
Ordinances 
Adopted 
(Yes/No) 
Status 
Notes/Additional 
Information 
Garden State Episcopal 
Community 
Development Corp. 
(1514-1518 Palisade 
Avenue) 
13 
supportive/special 
needs rental units* 
None 
Required 
COMPLETED: 
Received final CO 
in May 2020 
 5 of the units are 
already leased; 
remainder of 
units are actively 
being marketed  
Blue Chapel 
(604 14th Street) 
75 senior rental 
units 
None 
Required 
PROPOSED: 
Negotiations are 
ongoing 
 - 
St. John’s 
(3501-3509 and 3511 
Palisade Avenue) 
 
25 family rental 
units 
None 
Required 
PROPOSED: 
Negotiations are 
ongoing 
 - 
Block 42, Lot 9  
(720 8th Street) 
100 senior rental 
units 
None 
Required 
PROPOSED: 
Negotiations are 
ongoing; litigation 
pending 
 - 
*The 2017 Housing Element and Fair Share Plan provided for 9 units from this development. The 
project was ultimately developed with 13 units. 
There are no complicated or unusual circumstances associated with the above mechanisms. 
 
 


Union City 
July 9, 2020 Midpoint Review 
 
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PREPARED BY HGA 
Very Low-Income Analysis 
The City will ensure that 13% of all of the affordable units created under the implementation Plan, 
with the exception of units constructed as of July 1, 2008 and units subject to preliminary or final site 
plan approval as of July 1, 2008, will be affordable to very low-income households. Half of the very 
low-income units will be made available to families. 
 
Conclusion 
Union City’s plan implementation continues to create a realistic opportunity, and the City 
maintains sufficient mechanisms for addressing its Rehabilitation/Present Need Obligation.