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FAIR SHARE PLAN

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					FAIR SHARE PLAN




DELAWARE TOWNSHIP,
 HUNTERDON COUNTY
                                       FAIR SHARE PLAN
                               Delaware Township, Hunterdon County
                                         Table of Contents


I.      PREFACE ..........................................................................................................3

II.     REHABILITATION SHARE ............................................................................4


III.    PRIOR ROUND OBLIGATION ......................................................................4

        A.   Rental Obligation and Rental Bonuses .......................................................5
        B.   Maximum Age-restricted Units ..................................................................5
        C.   Regional Contribution Agreement (RCA) Maximum ................................5
        D.   Implementation ...........................................................................................6


IV.     GROWTH SHARE OBLIGATION ..................................................................9


V.      DRAFT FAIR SHARE ORDINANCE ...........................................................12


VI.     DRAFT GROWTH SHARE ORDINANCE ...................................................17


VII.    DRAFT AFFIRMATIVE MARKETING PLAN ............................................25


VIII.   SPENDING PLAN .........................................................................................28




                                                             2
   IX.       PREFACE

A municipality’s affordable housing obligation is cumulative, and includes affordable housing
need for the period 1987 to 2014. The affordable housing obligation consists of three
components:

                Rehabilitation Share (2000)
                Prior Round Obligation (1987-1999)
                Growth Share (1999-2014)

Under growth share, municipalities determine their 1999 to 2014 new construction or “growth
share” obligation, by applying the following ratios:

            For every eight market-rate residential units constructed from January 1, 2004 to
             January 1, 2014, a one-unit affordable housing obligation is generated.
            For every 25 jobs resulting from new or expanded non-residential construction within
             the municipality from January 1, 2004 to January 1, 2014, based on the conversion
             factors found in Appendix E of the third round rules, a one-unit affordable housing
             obligation is generated.

These two components are then added together to arrive at the total growth share obligation.

A municipality’s Rehabilitation Share is a measure of old, crowded, deficient housing that is
occupied by low- and moderate-income households. These rehabilitation numbers are based on
2000 census data. Rehabilitation Share numbers from each prior round are replaced with the
latest round number because the numbers are updated with each decennial census.

A municipality may receive credit for rehabilitation of low- and moderate-income deficient
housing units completed after April 1, 2000 provided the units were rehabilitated up to the
applicable code standard, the average capital cost spent on rehabilitating a unit was at least
$8,000 and the units have the appropriate controls on affordability to ensure the unit remains
affordable during the required period of time.

Rehabilitation credits cannot exceed the Rehabilitation Share and, generally speaking, can only
be credited against the rehabilitation component, not the new construction component.

The prior round obligation is the municipal new construction obligation from 1987 to 1999.
Obligations from the first and second rounds have been recalculated to include the most recent
data from the 2000 census. All municipalities participating in the COAH process must use
these updated figures. COAH continues to offer credits, reductions, and adjustments that may be
applied against the Prior Round Obligation (1987-1999) for affordable housing activity
undertaken from 1980 to 1999.




                                                 3
     II.     REHABILITATION SHARE

The purpose of a rehabilitation program is to renovate deficient housing units. Deficient housing
units are defined as units 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. Upon rehabilitation, the housing deficiencies
must be corrected and the unit must comply with the applicable code standard.

A municipality must demonstrate that it has the capability to administer a rehabilitation program
by either designating an experienced employee to administer the program or entering into an
agreement with a governmental agency or private consultant to administer all or some of the
program A municipality must provide the consultant or municipal employee’s credentials to
administer the program as well as a procedures manual. If the county is administering the
rehabilitation program, the municipality must submit a statement from the county agreeing to
adhere to applicable COAH rules and acknowledging sufficient funding.

Rental units cannot be excluded from a municipal rehabilitation program. There must be at least
10-year affordability controls placed on both owner-occupied units and rental units. For owner-
occupied units, these controls may be in the form of a lien filed with the appropriate property’s
deed. For rental units, the controls must be in the form of a deed restriction and may also include
a lien. Units rehabilitated after April 1, 2000 are eligible for credits against the third round
Rehabilitation Share.

The municipal investment for the rehabilitation of a unit must average at least $10,000 per unit,
of which no more than $2,000 can be used for administration costs. Documentation must also be
submitted demonstrating adequate funding source(s) and a resolution of intent to bond in the
event there is a shortfall of funds. Financing of rehabilitation programs must be structured to
encourage rehabilitation and continued occupancy.

A municipality is also required to prepare and submit a rehabilitation manual to COAH that
summarizes the administration of the rehabilitation program including an affirmative marketing
plan. The affirmative marketing program must clearly describe the outreach efforts to be used in
implementing the program. COAH expects that a combination of media approaches – cable
television, radio and print – plus appropriate mailing to residents, local civic, social and religious
groups will be included in the marketing program.

Delaware has a zero rehabilitation share.

     III.    PRIOR ROUND OBLIGATION

COAH has determined that Delaware’s Prior Round Obligation is 23 units. With a
Rehabilitation Share of zero units, Delaware has a pre-credited need of 23 units.




                                                  4
     A. Rental Obligation and Rental Bonuses

The rental component is calculated as follows:

       .25 (pre-credited need-prior cycle credits-rehabilitation component)

       .25 (23-6-0)

       .25 (17) = 4

Therefore, Delaware has a rental obligation of four units.

Pursuant to N.J.A.C. 5:93-5.15, the maximum number of units for which a municipality may
receive rental bonuses is also calculated in the formula above. One bonus is granted for family
rental units and a 0.33 bonus is granted for age-restricted units.

     B. Maximum Age-restricted Units.

Pursuant to N.J.A.C. 5:93-5.14, a municipality may receive credit for age-restricted units
according to the following formula:


       .25 (pre-credited need-prior cycle credits-rehabilitation credits)

       .25 (23-6-0)

       .25 (17) = 4

Based on this formula, Delaware is eligible to age-restrict four units for COAH credit.


     C. Regional Contribution Agreement (RCA) Maximum

A municipality may transfer one-half of its obligation to another willing municipality within the
COAH housing region. The formula for calculating the maximum RCA is as follows:

       .50 (pre-credited need-prior cycle credits-credits pursuant to N.J.A.C. 5:93-3.4)

       .50 (23-6-0)

       .50 (17) = 8

Based on this formula, Delaware may enter into an RCA not to exceed eight units.




                                                 5
     D. Implementation

Delaware Township’s second round plan was granted substantive certification by COAH on
January 10, 1996. Subsequently, Delaware amended its certified plan and COAH certified the
amendment on December 6, 2000. Delaware received extended certification on July 27, 2005.

COAH certified the following plan:

            Project                        Type                    Number
   RCA                                 Lambertville                   5
   Group Home (prior cycle)                 ALA                  6 Bedrooms
   NORWESCAP                         Age-restricted ALA          9 Bedrooms
   NORWESCAP                               Bonus                      1
   NORWESCAP                         Handicapped ALA             1 Bedroom
   NORWESCAP                               Bonus                      1
                       TOTAL                                       23 Units


   1. Delaware received credit for an existing six-bedroom group home for the
      developmentally disabled that is administered by ARC of Hunterdon County. The
      facility was opened in 1982 and is considered eligible for prior cycle credits. All
      documentation is on file with COAH.

   2. Delaware entered into a five unit RCA with the City of Lambertville that was approved
      by COAH. All money has been transferred. All documentation is on file with COAH.

   3. NORWESCAP will construct a 10-unit, municipally sponsored, alternative living
      arrangement in two homes on property known as the Higgins Farm. (Block 24, Lot 7)
      The site has a tract area of approximately 2.89 acres and fronts on Higgins FarmRoad in
      the Village of Sergeantsville. Once constructed, one home will contain five bedrooms
      that will be age-restricted. The other home will contain four age-restricted bedrooms and
      one bedroom that will be occupied by a handicapped person. Delaware has recently
      submitted a proforma and a proposed development schedule with its extension
      documentation to COAH. In addition, NORWESCAP and Delaware have executed an
      amended agreement that is on file with COAH. NORWESCAP received final approval
      from the Delaware Township Planning Board on March 15, 2005.

However, since Delaware has a zero rehabilitation share, all of the units in the certified plan are
no longer eligible for prior round credit. As a result, Delaware is proposing the following plan to
address its 23-unit prior obligation:




                                                 6
             Project                           Type                   Number
   ARC Group Home                       Prior Cycle Credits         6 Bedrooms
   RCA                                     Lambertville              8 (3 new)
   NORWESCAP                              Age-restricted            1 Bedroom
   Hockar Tract                               Rentals                    4
   Hockar Tract                               Bonus                      4
                           TOTAL                                      23 Units

1. Delaware Township expects to enter into a new three-unit RCA with Lambertville. The RCA
   will be for $35,000 per unit for a total amount of $105,000.

2. In addition, there is a tract of land known as the Hockar Tract that will provide at least six
   rental units that will be open to the general public.

The Hockar Tract contains 18.84 acres (Block 39, Lot 24). The contract purchaser is Perimeter
Properties, LLC. The site will contain 16 total units of which 10 will be market rate units and six
will be affordable rental units open to the general public. Perimerter Properties, LLC intends to
enter into a developer’s agreement with Delaware and is committed to providing the six
affordable rentals. The agreement is in the initial process of discussion and once finalized will
be filed with COAH.

The site is in Planning Area 4 according to the State Development and Redevelopment Plan.
Although the site is in PA 4, the site is in an approved sewer service area and sewer will be
provided by the Delaware Township Municipal Utilities Authority (DTMUA). The site also has
public water.

All of the 18.84 acres are developable except for a small pocket of wetlands at the end of the
property that will remain as open space. The small pocket of wetlands is at the opposite corner
from where the affordable housing is proposed.

The zoning does require more than one affordable unit for every eight market rate residential
units. In addition, the Hockar Tract is not within a designated center. However, the site is
consistent with sound planning principles and goals, because the affordable housing is being
located within an approved sewer service area and has public water rather than being located
outside of a service area.

The site is consistent with the policies and objections of the State Plan in that it is in the public
interest to encourage development that is well situated with respect to present public facilities
and to discourage development where it may impair or destroy natural resources or
environmental qualities that are vital to the health and well-being of the present and future
citizens of this state.

Previously, COAH granted a waiver from center designation to a site known as the Higgins Farm
in Delaware because it was in an approved sewer service area. The site is also consistent with
Policy 28 Mix of Housing Types because the family rental units will enhance Delaware’s fair


                                                   7
share plan that already includes a group home and a shared, age-restricted alternative living
arrangement. Finally, once the site is developed, there will be an integration of different housing
types and units of varied costs.

Delaware Township has included this site in the Village Extension Zone and added the following
language to the Land Use Section of the Master Plan:

“Areas immediately adjacent to the Village of Sergeantsville within the sewer service district
should be developed efficiently at a density compatible with the Village, provided that the
layout, design and architecture of such development are complementary to the existing Village
and do not undermine its historic character. Any new development in and around the Village of
Sergeantsville should include housing affordable to low/moderate income households as a
significant component. Zoning amendments to provide for such development should include
design and architectural standards to maintain the historic ambience of Sergeantsville.

Lots may exist or may be created in and adjacent to the existing V-1 and V-2 districts
encompassing the Villages of Sergeantsville and Rosemont, respectively, on which buildings
could be built to accommodate new low and moderate-income housing units. The selection of
appropriate lots for new low and moderate-income housing units to be built will depend upon
site conditions and the availability of sewer and/or water infrastructure to support such
development. The scale of any buildings that are proposed to be constructed for affordable
housing on such lots should be compatible with the scale of existing buildings in the adjacent
Village and should be designed to be part of the Village and to maintain its historic ambience.”




                                                 8
     IV.       GROWTH SHARE OBLIGATION

The Fair Share Plan includes the projects, strategies and funding sources, if applicable, to
address an affordable housing obligation and any municipal ordinance in draft form that a
municipality is required to adopt as a requirement of certification. The Fair Share Plan is based
upon the municipal fair share obligation developed in the housing element. The planning board
adopts the Fair Share Plan and it is endorsed by the governing body prior to the petition for
substantive certification. The proposed implementing ordinances may be adopted prior to
substantive certification but in any event must be adopted no later than 45 days after COAH
grants substantive certification.

The Fair Share Plan consists of a detailed proposal on how a municipality intends to provide for
its affordable housing obligation. Once certified, the plan will be monitored by COAH to verify
that the construction or provision of affordable housing is in proportion to the actual residential
growth and employment growth at the end of third, fifth and eight year after the filing date for
substantive certification. Zoned sites addressing a prior obligation will also be reviewed at these
intervals.

COAH rules have a number of different provisions regulating the development of affordable
housing. The options available to meet the 1999-2014 fair share obligation include:

              Municipal zoning
                    o Zoning for inclusionary developments
                    o Adoption of a growth share ordinance
                    o Redevelopment districts/sites
              Municipally sponsored new construction and 100 percent affordable
               developments
              Regional contribution agreements (RCAs)
              Alternative living arrangements
                    o Permanent supportive housing (where the tenant has a lease and support
                        services are provided)
                    o Group homes
                    o Congregate housing
                    o Transitional facilities
                    o Residential health care facilities
              Accessory apartments
              Buy-down program of for-sale market-rate units
              Municipally sponsored rental program
              ECHO (elder cottage housing opportunities) housing
              Assisted living residences
              Affordable housing partnership program
              Expanded crediting opportunities
              Extension of affordable units with expiring controls
              Age-restricted housing
              Rental housing with bonus credits


                                                 9
              Very low-income housing with bonus credit

The Fair Share Plan must include the following information:

       o Descriptions of operational and financial feasibility of any specific project intended to
         provide affordable housing. This includes any of the new construction options
         described above intended to address the Growth Share obligation with the exception
         of inclusionary zoning. A municipality must submit a financial plan for each project,
         a municipal resolution appropriating funds from general revenue or a resolution of
         intent to bond in the event there is a shortfall of funding from the identified source.

       o Draft Fair Share Ordinance necessary for the implementation of the programs and
         projects identified as providing affordable housing. The governing body is required
         to formally adopt the final version of this ordinance within 45 days after receiving
         substantive certification. Provisions of such an ordinance may include a Growth
         Share or other zoning requirement, an accessory apartment conditional use, phasing
         requirements, affordability controls or payment in lieu stipulations. A municipality
         must also provide an affirmative marketing plan, which is referenced in the fair share
         ordinance.

A. Delaware Township has projected a 29 unit growth share obligation. The rental component
   is calculated as follows:

    .25 (growth share)
    .25 (29) = 7

    Therefore, Delaware has a seven-unit rental obligation. Only rental units open to the general
    public over the seven-unit obligation are eligible for bonus credits. One-half of the
    affordable units within Delaware may be age-restricted

    One-half of the projected growth share obligation or 14 units may be transferred in an RCA.
    Delaware is proposing the following plan to address its projected growth share obligation of
    29 units.

             Project                            Type                        Number
   Hockar Tract                                Rentals                          2
   NORWESCAP                           Age-Restricted Bedrooms                  8
   NORWESCAP                            Handicapped Bedroom                     1
   Raven Rock                                  Rental                           1
   Raven Rock                                  Bonus                            1
   Knipe                                      For Sale                         11
   RCAs                                     Lambertville                        5
                         TOTAL                                              29 Units

1. The Hockar tract has been discussed under the prior round obligation section.



                                               10
2. The NORWESCAP previously certified site has been discussed under the prior round
   obligation section. All documentation is on file with COAH.

3. Raven Rock is a single family home located at 82 Raven Rock Road (a portion of Block 30,
   Lot 181) within Delaware Township. Hunterdon County owns the property and is leasing
   the property to the Hunterdon County Housing Corporation (HCHC) for the sole purpose of
   providing a low and moderate-income rental unit. HCHC will serve as the sole management
   agent and landlord of this property. HCHC has placed the appropriate controls on
   affordability and has filed the deed with the restrictive covenant with Hunterdon County
   ensuring affordability for 30 years. The HCHC has documented that the property has been
   raised to code standard and has been affirmatively marketed. The rent is consistent with
   COAH regulations.

     As per the November 24, 2004 letter from COAH outling the requirements for this unit to
     receive COAH credit, the following documentation is included in Exhibit A.

        a. Executed resolution between Delaware Township and HCHC;
        b. Copy of re-filed deed, that contains 30 year affordability controls;
        c. Statement signed by HCMC that the unit was below code and raised to code standard
           after rehabilitation;
        d. Statement signed by HCHC that the unit was affirmatively marketed and the rent is
           consistent with COAH regulations;
        e. Copy of the signed lease that includes statement that HCHC will assume all caretaking
           and maintenance services and that the occupant is only responsible for normal
           maintenance of the unit.

4. The Knipe property, Block 59, Lot 10, comprises 90.65 acres and has no development
   application proposed because there are no immediate plans to develop this site. There are 15
   acres in the G-A zone and 75.65 acres in the A-1 zone. The site is on Seabrook Road. If
   developed, the site may yield a total of 106 units according to the present zoning. The Knipe
   property will be the focus of Delaware’s growth share ordinance and, as such, Delaware will
   require that the 12 units of growth share be provided on-site.

5.    Delaware intends to enter into a five-unit RCA with the City of Lambertville. However,
     since the growth share number of 29 is a projection, Delaware anticipates entering into a
     range of RCAs from a minimum of three RCA units to complete its prior round obligation to
     a maximum of 11 RCA units depending upon the Hockar Tract rezoning and the number of
     affordable rentals that will be proposed for the site.

6. Delaware is also considering a buydown program for its anticipated payment in lieu fees.




                                                 11
     V.        DRAFT FAIR SHARE ORDINANCE


A. Proportion of Low and Moderate Income Units By Sale, Rental And By Number of
   Bedrooms

      Except for inclusionary developments constructed pursuant to low income tax credit
      regulations:

          1. At least half of the “for sale” affordable units within each inclusionary
             development shall be affordable to low income households.

          2. At least half of the “rental” affordable units within each inclusionary development
             shall be affordable to low income households.

          3. At least one third of the affordable units in each bedroom distribution within each
             inclusionary development shall be affordable to low income households.

B. Bedroom Distribution of Affordable Units

          1.        Inclusionary developments which are not restricted to age-restricted
                households shall be structured in conjunction with realistic market demands so
                that:

                       A. The combined number of efficiency and one-bedroom units is no
                          greater than 20 percent of the total number of affordable units.
                       B. At least 30 percent of all affordable units shall be two bedroom units.
                       C. At least 20 percent of all affordable units shall be three bedroom units.

          2.        Inclusionary developments that are restricted to age-restricted households
                shall at a minimum have a total number of bedrooms equal to the number of age-
                restricted affordable units within the inclusionary development.

C. Establishment of Rents and Prices of Units As Related to Household Size And Number of
   Units.

          1.        In conjunction with realistic market information, the following shall be used
                to determine the maximum rents and sales prices of the affordable units:

                       A. Efficiency units shall be affordable to a one person household.
                       B. A one bedroom unit shall be affordable to a one and a 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.



                                                 12
                      E. A four bedroom unit shall be affordable to a six person household.

          2.       For assisted living facilities the following standards shall be used:

                      A. A studio 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 two-person household or
                         to two, one person households.

D. Establishing Median Income by Household Size

          1.      Median income by household size shall be established using a regional
               weighted average of the uncapped Section 8 income limits published by HUD
               computed as set forth in N.J.A.C. 5:94-7.2.

E. Establishing Average Rents Of Affordable Units.

          1.       The maximum rent of affordable units within each inclusionary development
               shall be affordable to households earning no more than 60 percent of median
               income. The average rent for low and moderate income units shall be affordable
               to households earning no more than 52 percent of median income. Restricted
               rental units shall establish at least one rent for each bedroom type for all low and
               moderate-income units provided at least 10 percent of all low and moderate
               income units are affordable to households earning no more than 35 percent of
               median income.

          2.      Low and moderate income units shall utilize the same heating source as
               market units within the inclusionary development.

          3.       Gross rents including an allowance for utilities shall be established for the
               various size affordable units at a rate not to exceed 30 percent of the gross
               monthly income of the appropriate household size. The allowance for utilities
               shall be consistent with the utility allowance approved by HUD for use in New
               Jersey.

          4.       All affordable rental units included in the COAH requirement shall not be
               subject to any rent control ordinance which may be adopted in the Township of
               Delaware during the time period in which affordable housing COAH controls are
               effective.




                                                 13
F. Establishing Average Sales Prices of Affordable Units

          1.       The maximum sales price of restricted ownership units within each affordable
               development shall be affordable to households earning no more than 70 percent of
               median income. Each affordable development must achieve an affordability
               average of 55 percent for restricted ownership units. 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.

          2.      Low and moderate income units shall utilize the same heating source as
               market units within the inclusionary development.

G. Affordable Housing Units: Condominium Or Homeowners Association Fees

          1.       If an affordable housing unit is part of a condominium association or
               homeowner’s association, the Master Deed shall reflect that the assessed
               affordable homeowner’s fee be established at one hundred percent of the market
               rate fee. This percentage assessment shall be recorded in the Master Deed.

          2.       The Master Deed shall contain the same fee for the market rate units as the
               low and moderate-income units. Developments that are 100 percent affordable
               shall have condominium or homeowners association fees that are self-supporting
               and sustaining.

H. Reservation of Units

          1.       Low-income housing units shall be reserved for households with a gross
               household income equal to or less than 50 percent of the median income approved
               by COAH.

          2.       Moderate income housing units shall be reserved for households with a gross
               household income in excess of 50 percent but less than 80 percent of the median
               income approved by COAH.

I. Reoccupancy Certificate

          1.       Upon resale of an affordable unit, a certificate of reoccupancy shall be
               required in accordance with N.J.A.C. 5:80-26.10.

J. Phasing Of Construction

          1.        Final site plan approval shall be contingent upon the development meeting
               the following phasing schedule for low and moderate income units within each
               inclusionary development, whether developed in one stage or in two or more
               stages.



                                                14
                          Minimum Percentage                 Percentage of Market Housing
                     Moderate Income Units Completed               Units Completed
                                    0                                      25
                                   10                                 25 + 1 unit
                                   50                                      50
                                   75                                      75
                                   100                                     90
                                                                          100


K. Maintenance of Inclusionary Housing

        All conveyance of newly constructed low and moderate income sales units shall contain
the restrictive covenants and liens adopted which are described in N.J.A.C. 5:80-26 et. seq.

L. Administration Of Inclusionary Units

          1.       The Township of Delaware will contract with the Hunterdon County Housing
               Corporation (HCHC) to be the administrator of the affordable units, except for the
               NORWESCAP alternative living arrangement that NORWESCAP will
               administer. These experienced administrative agents will oversee and administer
               income qualification of low and moderate income households; place income
               eligible households in low and moderate income units upon initial occupancy;
               place income eligible households in low and moderate income units as they come
               available during the period of affordability controls and enforce the terms of the
               required deed restrictions and mortgage loans. HCHC and NORWESCAP will
               specifically administer and implement:

               a.     an administrative plan and program, and related monitoring and reporting
                      requirements as outlined in N.J.A.C. 5:80-26.15 et seq.

               b.     a plan for certifying and verifying the income of low and moderate income
                      households as per N.J.A.C. 5:80-26.16.

               c.     procedures to assure that low and moderate income units are initially sold
                      and rented to eligible households and are thereafter similarly re-sold and
                      rented during the period while there are affordability controls as per
                      N.J.A.C. 5: 80-026. et seq.

               d.     the requirement that all newly constructed low and moderate income sales
                      units contain deed restrictions with appropriate mortgage liens as set forth
                      in Appendices in N.J.A.C. 5:80-26. et seq.

               e.     the several sales/purchase options authorized under N.J.A.C. 5:80-26. et
                      seq. except that the Township retains the right to determine by resolution



                                               15
                      whether or not to prohibit, as authorized under N.J.A.C. 5:880-26. et seq.,
                      the exercise of the repayment option.

              1.      the regulations determining 1) whether installed capital improvements will
                      authorize an increase in the maximum sales price; and 2) which items of
                      property may be included in the sales price as per N.J.A.C. 5:80-26.9.

              2. If the project is rental, the advertising and administration is paid by the
                 owner/developer on an on-going basis. If the project is for-sale, the initial
                 costs are the responsibility of the developer. Owners of affordable units shall
                 pay an administrative fee when an affordable unit is sold.

M. Time Period For Controls

         1.       Newly constructed low and moderate-income rental units shall remain
              affordable to low and moderate income households for a period of 30 years. The
              period of affordability controls for rental units may extend beyond the 30 year
              period at the discretion of the municipality as per N.J.A.C. 5:80-26 et seq.

         2.       Newly constructed low and moderate income for sale units shall remain
              affordable to low and moderate income households for a period of 30 years.

         3.       Housing units created through conversion of a non-residential structure shall
              be considered a new housing unit and shall be subject to affordability controls for
              new housing units as designated in items 1 and 2 above.

         4.       Affordability controls on accessory apartments shall be for a period of 30
              years.

         5.       Affordable controls for units in alternative living arrangements shall be for a
              period of 30 years.

         6.        Affordable controls on buydown units shall be for a period of 30 years.

         7.       Affordability controls on alternative living arrangements shall be for a period
              of 30 years.




                                               16
     VI.     GROWTH SHARE ORDINANCE

                                   DELAWARE TOWNSHIP
                                   ORDINANCE #2005- LU

             AN ORDINANCE OF THE TOWNSHIP OF DELAWARE,
           COUNTY OF HUNTERDON AND STATE OF NEW JERSEY,
 AMENDING SUBSECTION 3:1.23A OF THE LAND USE ORDINANCE PERTAINING TO
   THE REQUIRED GROWTH SHARE AFFORDABLE HOUSING PRODUCTION FOR
                      RESIDENTAL DEVELOPMENT

        WHEREAS, the Township Committee of the Township of Delaware adopted Ordinance
No. 2005-08LU entitled “An Ordinance of the Township of Delaware, County of Hunterdon and
State of New Jersey, Amending the Land Use Ordinance of the Township of Delaware to Add a
New Section 3:1.23 entitled “Required Growth Share Affordable Housing Production”” on June
13, 2005 for the purpose of implementing the “growth share” policies promulgated and
announced by COAH in its third cycle substantive rules in an effort to foster the production of
affordable housing opportunities for qualified low and moderate income households through the
third housing cycle;

       WHEREAS, the Township Committee deems it appropriate to clarify the applicability of
the growth share requirements to residential lots created before and after the adoption of
Ordinance No. 2005-08LU;

       NOW, THEREFORE, BE IT ORDAINED AND ESTABLISHED by the Township
Committee of the Township of Delaware County of Hunterdon and State of New Jersey as
follows:

        SECTION 1. Subsection 3:1.23A Amended. Subsection 3:1.23A of the Land Use
Ordinance of the Township of Delaware is amended in the following manner (additions to text
are indicated by underlining):

        A.      Residential development requirements. All residential development proposing the
construction of one or more net new dwelling units on any new residential lot of lots created
after June 16, 2005 (the initial effective date of Section 3:1.23), in any zoning district, shall be
required to provide affordable housing at the ratio of one affordable unit for every eight net new
market-priced dwelling units being constructed on-site. The provision of the affordable unit(s)
required shall be through on-site construction, through the creation of affordable units off-site
but within Delaware Township or through a payment in lieu of construction. See Section 3:1.23
E.2. regarding the use of a payment in lieu where the obligation is or includes a fraction. If the
developer elects to construct the affordable unit off-site but within Delaware Township or
through payment in lieu of construction, each on-site unit otherwise required to be affordable to a
low or moderate income household may be converted to a market-priced unit, but the
developer’s growth share obligation shall be increased accordingly and reflected in the number
of units being constructed on-site but within Delaware Township or through a payment in lieu of



                                                17
construction. Any residential development proposing the construction of a net new dwelling unit
on any residential building lot existing prior to June 16, 2005 shall be exempt from the growth
share obligations of this Section and instead shall be required to pay an Affordable Housing
Development Fee pursuant to Article VIX, Affordable Housing Development Fees, Section 14:2.

        SECTION 2. Severability. If any paragraph, section, subsection, sentence, clause,
phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by any
Court or administrative agency of competent jurisdiction, such portions shall be deemed a
separate, distinct and independent provision and such holding shall not affect the validity of the
remaining paragraphs or sections hereof.

        SECTION 3. Repealer. All ordinances and resolutions or parts thereof inconsistent with
this ordinance are repealed.

       SECTION 4. Effective Date. This Ordinance shall take effect following final adoption,
publication and filing with the Hunterdon County Planning Board in accordance with applicable
law.




                                                18
                                  DELAWARE TOWNSHIP
                                  ORDINANCE #2005-08LU

               AN ORDINANCE OF THE TOWNSHIP OF DELAWARE,
             COUNTY OF HUNTERDON AND STATE OF NEW JERSEY,
                AMENDING THE LAND USE ORDINANCE OF THE
        TOWNSHIP OF DELAWARE TO ADD A NEW SECTION 3:1.23 ENTITLED
        “REQUIRED GROWTH-SHARE AFFORDABLE HOUSING PRODUCTION"

        WHEREAS, the New Jersey Supreme Court and New Jersey Legislature have recognized
and mandated in So. Burl. Co. NAACP v. Mount Laurel, 92 N.J. 158 (1983) ("Mount Laurel II”)
and the Fair Housing Act, N.J.S.A. 52:27D-301, et. seq. ("FHA") that every municipality in New
Jersey has an affirmative obligation to facilitate the provision of affordable housing; and

       WHEREAS, the New Jersey Council on Affordable Housing ("COAH") is the State
administrative agency created pursuant to the FHA vested with primary jurisdiction for the
administration of affordable housing obligations in accordance with sound regional planning
considerations in New Jersey; and

       WHEREAS, COAH's third cycle Substantive Rules (NJ.A.C. 94-1, et. seq.) implement a
"growth share" approach to affordable housing production which requires affordable housing to
be produced in conjunction with market-priced residential and nonresidential growth and
development within the Township; and

       WHEREAS, the Township of Delaware desires to implement the "growth share” policies
promulgated and announced by COAH in its third cycle Substantive Rules in an effort to foster
the production of affordable housing opportunities for qualified low and moderate income
households through the third housing cycle, which extends from 2000 to 2014;

      NOW, THEREFORE, BE IT ORDAINED AND ESTABLISHED by the Township
Committee of the Township of Delaware, County of Hunterdon and State of New Jersey that the
Land Use Ordinance of the Township of Delaware be and is hereby amended as follows:




                                              19
SECTION 1. Add a new Section 3:1.23, entitled "Required Growth Share Affordable Housing
Production" as follows:

3:1.23 Required Growth Share Affordable Housing Production.

A.      Residential development requirements. All residential development proposing the
construction of one or more net new dwelling units in any zoning district shall be required to
provide affordable housing at the ratio of one affordable unit for every eight net new market-
priced dwelling units being constructed on-site. The provision of the affordable unit(s) required
shall be through on-site construction, through the creation of affordable units off-site but within
Delaware Township or through a payment in lieu of construction. See Section 3:1.23 E.2.
regarding the use of a payment in lieu where the obligation is or includes a fraction. If the
developer elects to construct the affordable unit off-site but within Delaware Township or
through a payment in lieu of construction, each on-site unit otherwise required to be affordable to
a low or moderate income household may be converted to a market-priced unit, but the
developer's growth share obligation shall be increased accordingly and reflected in the number of
units being constructed off-site but within Delaware Township or through a payment in lieu of
construction.

B.      Non-residential development requirements. All nonresidential development proposing
the construction of net new floor area in any zoning district shall be required to provide
affordable housing constructed at the ratio of one affordable unit for every twenty-five (25) new
jobs created as a result of the proposed net new nonresidential floor area. The calculation of the
number of jobs created shall be in accordance with Appendix E of N.J.A.C. 5:94-1, et seq.
entitled "UCC Use Groups for Projecting and Implementing Nonresidential Components of
Growth Share". The provision of the affordable unit(s) required shall be through on-site
construction, through the creation of affordable units off-site but within Delaware Township or
through a payment in lieu of construction. See Section 3:1.23 E.2. regarding the use of a
payment in lieu where the obligation is or includes a fraction.

C.     Construction of affordable housing on site.

       1.      Residential development:

               a.     The affordable housing units may be provided within single-family
detached buildings, duplex buildings, triplex buildings or quadriplex buildings designed to
resemble as nearly as possible the single-family homes otherwise being constructed within the
development to accommodate the market units. Duplex, triplex and quadriplex buildings
containing low and moderate income housing units only shall be deemed to be permitted uses in
the underlying zone when created for the purpose of meeting a growth share obligation on-site.

               b.      No density increase shall be granted for the construction of the affordable
housing units on-site.




                                                20
               c.      All required setbacks, building height, open space requirements and
coverage limits for the zone shall be met on all lots.

               d.       All affordable units shall comply with COAH's Rules pertaining to the
phasing, integration, low/moderate income split, controls on affordability, bedroom distribution,
affirmative marketing, heating source and administration of the affordable units, as set forth in
N.J.A.C. 5:94-4.4 and elsewhere in COAH's Rules.

              e.     All applicable Board of Health and NJDEP regulations for water supply
       and sewage treatment shall be met.

       2.      Non-residential development:

                 a.     Affordable housing units may be constructed within or converted from
space above the first floor level in a non-residential building or may be constructed in a separate
building or buildings on the same site as the permitted non-residential use or development,
subject to site plan review by the Planning Board. A mixed use building or residential building
on a non-residentially zoned site accommodating up to four (4) housing units, where all such
housing units are deed restricted for affordability to and occupancy by low and moderate income
households, shall be deemed to be a permitted use in any non-residential zoning district in
Delaware Township, provided all other requirements of the Land Use Ordinance are met,
including, but not limited to, the permitted density and impervious coverage limits.

              b.       All required setbacks and building height limits for the zone shall be met
on non-residential lots containing affordable housing units.

               c.     In computing the required parking for any mixed use development
containing affordable housing units, consideration shall be given to shared parking opportunities.

               d.       All affordable units shall comply with COAH's Rules pertaining to the
phasing, integration, low/moderate income split, controls on affordability, bedroom distribution,
affirmative marketing, heating source and administration of the affordable units, as set forth in
N.J.A.C. 5:94-4.4 and elsewhere in COAH's Rules.

              e.     All applicable Board of Health and NJDEP regulations for water supply
and sewage treatment shall be met.




                                                21
D.     Creation of affordable housing units off-site but within Delaware Township.

       1.     Developers electing to create affordable housing units elsewhere within Delaware
Township may do so within existing buildings, whether converted, reconstructed or purchased
for buy down, in any zone of Delaware Township, as set forth and regulated herein.

        2.      The reconstruction or conversion of any existing dwelling or any existing
agricultural structure into a building containing up to six (6) dwellings, where all such dwelling
units are deed restricted for affordability to and occupancy by low and moderate income
households, shall be deemed to be a permitted use in any zone, provided all other requirements
of the Land Use Ordinance are met, including, but not limited to, the zoned density, and further
provided that the requirements of this subsection D. are satisfied.

        3.      No such individual dwelling unit shall be smaller than 550 square feet. All such
units shall meet or shall be improved to meet Uniform Construction Code requirements and shall
be certified to be in standard condition prior to their conveyance or occupancy.

        4.     All affordable units shall comply with COAH's Rules pertaining to the phasing
(with the market units being constructed elsewhere by the same developer), low/moderate
income split, controls on affordability, bedroom distribution, affirmative marketing, heating
source and administration of the affordable units, as set forth in N.J.A.C. 5:94-4.4 and elsewhere
in COAH's Rules.

         5.     All required setbacks, building height and impervious coverage limits for the zone
shall be met on the lot except that existing setback deficiencies and other nonconformities of the
lot and/or building(s) located thereon may be continued, for as long as the buildings remain on
the site, without the need for additional variances.

        6.     All of the design standards applicable to the construction of affordable housing
units in the VE Village Extension District (Section 3:8A of the Land Use Ordinance) shall be
equally applicable to the creation of affordable housing units in existing buildings elsewhere in
Delaware Township.

      7.      All applicable Board of Health and NJDEP regulations for water supply and
sewage treatment shall be met.

E.     Payments in lieu of construction.

        1.      Payments in lieu of the construction of affordable housing shall be based upon a
proportionate share of the total project cost embodied in one or more pro-forma statements (pro
formas) for the construction of an affordable housing development elsewhere within Delaware
Township, which pro forma(s) shall be on file in the office of the Township Clerk. The payment
in lieu of construction to be made by the developer may be subject to negotiation with the
Township based upon the following considerations: the actual cost of buying down or
subsidizing one or more existing or planned market priced dwelling units to achieve an average
rent level affordable to a household earning 52.5% of median income; the actual land cost of



                                                22
site(s) earmarked for off-site affordable housing construction within Delaware Township or
reasonable and acceptable offers to substitute land, site preparation and/or construction services
for all or a portion of the monetary payment otherwise required.

        2.     Regardless of the mechanism selected by the developer for satisfying the required
number of affordable housing units, any development or portion thereof that generates a fraction
of an affordable housing unit as all or a portion of the obligation (because the development
contains fewer than or more than a number of units that is evenly divisible by 8), shall under any
circumstances be required to make a payment in lieu of construction for that fraction of a unit
based on the pro-rated cost of constructing an affordable housing unit in Delaware Township.

F.     Other requirements.

        1.      The use of any of the foregoing mechanisms for providing affordable housing
within Delaware Township shall be limited to the provision of non-age-restricted rental
affordable housing units in compliance with all of COAH's Rules set forth at N.J.A.C. 5:94-1, et
seq., except that "buy down" units may be resold.

        2.    The Planning Board shall have the jurisdiction to consider the grant of a waiver
from the foregoing to permit age-restricted affordable housing instead of non-age-restricted
affordable housing or to permit "for sale" affordable housing instead of rental affordable housing
where the Board finds that granting such a waiver would be more appropriate to the context of
the development or to the location and nature of the affordable housing unit(s) being created.
The Planning Board shall give due consideration to the Township-wide impacts of such a
deviation upon the adopted and COAH-certified Housing Element and Fair Share Plan before
approving any such waiver.

       3.      A proposed affordable housing production plan (AHPP) shall be submitted to the
Planning Board at the time application is made for any development requiring growth share
affordable housing production pursuant to this Section. The AHPP shall be a condition of
"completeness" determination. All AHPPs shall be the subject of review by the Township's
Housing Consultant for consistency with COAH’s Rules and with the Township's certified third
round Housing Element and Fair Share Plan. Compliance with all of the terms of COAH's Rules
and with the approved AHPP shall be a condition of development plan approval and may be
covered by appropriate performance and maintenance guarantees as with any other required
improvement.

         4.      Where an odd number of low and moderate income housing units are required to
be provided, the majority of the units shall be low income units. Where there are an insufficient
number of affordable units provided to meet the bedroom distribution requirements of COAH's
Rules, the first unit shall be a two bedroom unit, the second unit shall be a three-bedroom unit
and the third unit shall be a one-bedroom unit. Otherwise, the bedroom distribution shall be in
strict accordance with COAH's Rules.

        5.     It shall be the developer's responsibility, to pay the per unit cost of the initial
advertising and ongoing administration of the controls on affordability for each of the affordable



                                                23
units attributable to the development generating the growth share obligation pursuant to the
Township's contract with a designated administrative entity so as to ensure full COAH
compliance. The designated administrative entity shall, by February 1st of each year, and as
needed throughout the year, file with the Township Clerk of the Township of Delaware such
certifications, reports and/or monitoring forms as may be required by COAH to verify the
continuing compliance of each affordable unit with COAH's Rules.

        6.      Residential developments that have been zoned to produce an affordable housing
set-aside or that include only low and moderate income housing units shall be exempt from the
growth share obligations of this Section. Moreover, developments covered by this Section shall
be exempt from the payment of Development Fees under the adopted Development Fee
Ordinance.

SECTION 2. Severability. If any paragraph, section, subsection, sentence, clause, phrase or
portion of this Ordinance is for any reason held invalid or unconstitutional by any Court or
administrative agency of competent jurisdiction, such portion shall be deemed a separate, distinct
and independent provision and such holding shall not affect the validity of the remaining
paragraphs or sections hereof.

SECTION 3. Inconsistency. All ordinances or parts of ordinances inconsistent with this
Ordinance are hereby repealed to the extent of such inconsistency.

SECTION 4. Effective Date. This Ordinance shall take effect following final adoption and
publication in accordance with applicable law.


                                                            ________________________
ATTEST:                                                     Kenneth P. Johnson, Mayor

____________________
Judith A. Allen, RMC
Township Clerk
May 23, 2005
Published 5/26/05


PLEASE TAKE NOTICE that the Delaware Township Committee approved the above
ordinance on first reading at its Regular Meeting held on May 23, 2005. It will be considered on
second reading for final adoption and will have a public hearing at a Regular Meeting beginning
at 8:00 p.m. on June 13, 2005, at the Delaware Township Hall, 570 Rosemont Ringoes Rd. (Rt.
604), Sergeantsville, NJ. At that time an opportunity will be given for all interested citizens to
be heard.




                                                24
        VII.    DRAFT AFFIRMATIVE MARKETING PLAN

This Affirmative Marketing Plan applies to all developments that contain low and moderate
income units within Delaware. This 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, municipality and/or designated administrative agency of affordable housing.
The plan addresses the requirements of N.J.A.C. 5:94-7 and N.J.A.C. 5:80-26. In addition, the
plan prohibits discrimination in the sale, rental, financing or other services related to housing on
the basis of race, color, sex, affectional or sexual orientation, religion, handicap, age, familial
status/size or national origin.


Delaware Township is in COAH Housing Region 3 consisting of Middlesex, Somerset and
Hunterdon Counties. The affirmative marketing program is a continuing program and will meet
the following requirements:


        The affirmative marketing process for available affordable units shall begin at least four
         months prior to expected occupancy. Advertising and outreach shall take place during
         the first week of the marketing program and each month thereafter until all available units
         have been leased.
        One advertisement will be published in the following newspapers of general circulation
         within the housing region:
               o Courier News
               o Home News
        The advertisement will include the following:
               o The location of the units;
               o Directions to the housing units;
               o A range of prices for the housing units;
               o The size as measured in bedrooms, of the housing units;


                                                    25
        o The maximum income permitted to qualify for the housing units;
        o The location of applications for the housing units;
        o The business hours when interested households may obtain an application for
            housing units and
        o Application fees, if any.
   One advertisement will be broadcasted on the following regional radio and/or cable
    television station(s):
        o 101.5
   Additionally, all newspaper articles, announcements and requests for applications for low
    and moderate income housing will appear in the following:
        o Hunterdon County Democrat
        o Lambertville Beacon
        o Housing Resource Center, www.njhousing.gov
   Applications will be mailed to prospective applicants upon request.
   The following is the location of applications, brochure(s), sign(s), and/or poster(s) used
    as part of the affirmative marketing program:
        o The county administrative building and/or the county library for each county
            within the housing region.
        o The Delaware administrative building
        o The developer’s sales/rental office.
   The following is a list of community and regional organizations that will aid in soliciting
    low and moderate income applicants:
        o Housing Coalition of Central Jersey
        o Somerset County Coalition on Affordable Housing
        o Hunterdon County Housing Corporation
   The following is a description of the random selection method that will be used to select
    occupants of the low and moderate income housing units.
        o Advertisements will be placed in the appropriate newspapers with a deadline for
            filing applications. Applications will be received and each application will be
            assigned a number. There will be a lottery, which will prioritize the application.




                                             26
               The application will then be reviewed for certification in order which resulted
               from the lottery.
           o A waiting list of all eligible candidates will be maintained in accordance with the
               provisions contained in N.J.A.C. 5:80-26 et seq.


Delaware is ultimately responsible for administering the affordability controls and Affirmative
Marketing Plan and will appoint a Delaware employee as the Housing Officer. However,
Delaware has delegated this responsibility and will contract with HCHC and NORWESCAP,
which will administer the affordable housing program, including administering and enforcing the
affordability controls and this Affirmative Marketing Plan. The Housing Officer shall supervise
NORWESCAP and HCHC and shall serve as liaison to NORWESCAP and HCHC.


If the project contains rentals, the advertising and administration shall be paid by the
developer/owner on an on-going basis. If the project contains sales, then the initial costs for
advertising and administration shall be paid by the developer. Owners of units shall pay a fee
when their housing units are sold.




                                                 27
     VIII.   SPENDING PLAN

Delaware Township Development Fee Spending Plan

INTRODUCTION

Delaware Township in Hunterdon County has a development fee ordinance that was
approved by the Council on Affordable Housing (COAH) on November 2, 1994 and
amended to raise the fees on December 27, 2004. This spending plan is prepared in
accordance with N.J.A.C. 5:94-6.2 (c) and 6.5 and includes the following:

     1. Projection of revenues anticipated from imposing fees on development, based on
          actual proposed and approved developments and historic rate of development
          activity.
     2. A description of the administrative mechanism that the municipality will use to
          collect and distribute revenues.
     3. A description of the anticipated use of all development fees, payments in lieu of
          constructing affordable units on site, funds from the sale of units with
          extinguished controls, pursuant to N.J.A.C. 5:94-6.12, repayment of loans for
          rehabilitation or affordability assistance, and voluntary contribution.
     4. A schedule for the creation and/or rehabilitation of housing units.
     5. If the municipality is including a municipally sponsored or 100 percent affordable
          program, a new construction alternative living arrangement or an affordable
          housing partnership program, a pro-forma statement of the anticipated costs and
          revenues associated with the development.
     6. The manner in which the municipality will address any expected or unexpected
          shortfall if the anticipated revenues from development fees and payments in lieu
          are not sufficient to implement the plan.

To date, Delaware Township has $207,372.36 in its affordable housing trust fund. All
development fees collected and interest generated by the fees are deposited in a
separate interest-bearing account in PNC Bank for the purposes of affordable housing.


1. PROJECTION OF REVENUES FOR CERTIFICATION PERIOD

To calculate a projection of revenue anticipated between October 2005 and the expiration of
substantive certification, Delaware Township considered the following:

   a. Residential and non-residential projects which have had development fees imposed
      upon them at the time of preliminary or final development approvals are anticipated
      to provide $165,550 in development fees at issuance of building permits and/or
      certificates of occupancy during the period of substantive certification.
   b. All projects currently before the planning and zoning boards for development
      approvals that may apply for building permits and certificates of occupancy are


                                              28
         anticipated to provide $165,550 in development fees during the period of substantive
         certification.
    c.   Development projected to begin construction based on historic rates of development
         is anticipated to provide an additional $754,000 in development fees during the
         period of substantive certification.
    d.   Payments in lieu of construction from developers pursuant to N.J.A.C. 5:94-4.4 (b-e)
         are anticipated to provide $754,000 in development fees during the period of
         substantive certification.
    e.   Funds from other sources, including, but not limited to, the sale of units with
         extinguished controls, repayment of loans for rehabilitation or affordability
         assistance, and voluntary contributions are not anticipated to provide fees during the
         period of substantive certification.
    f.   Interest on the projected revenue in the housing trust fund at the current average
         interest rate is anticipated to provide $14,000 to accrue to the affordable housing
         trust fund during the period of substantive certification.

Delaware projects a total of $1,853,100 in revenue to be collected between October 2005
and the expiration of substantive certification. When the total revenue projected of
$1,853,100 is added to the amount in the account to date of $207,372.36, a total of
$2,060,372.36 will be collected prior to the expiration of substantive certification. All
development fees, payments in lieu of construction and other funds listed above will be
deposited in a separate interest-bearing account in PNC Bank and all interest earned on the
account will accrue to the account to be used only for the purposes of affordable housing.

2. ADMINISTRATIVE MECHANISM TO COLLECT AND DISTRIBUTE FUNDS

The following procedural sequence for the collection and distribution of development fee
revenue is followed by Delaware Township:

At the time of an application for a building permit, the tax assessor shall determine the value
to which the appropriate development fee percentage shall be applied and estimate the
development fee to be collected. That information shall be provided to the construction
office. The construction office shall collect 50 percent of the estimated development fee
from the applicant before the issuance of a building permit. The funds shall be transferred to
Delaware Township’s CFO for deposit in the separate bank account maintained for
development fees.

At the time of an application for a certificate of occupancy, the tax assessor shall
redetermine the value to which the appropriate development fee percentage shall be applied
and calculate the total development fee to be collected. That information shall be provided to
the construction office. The construction office shall collect the difference between the
amount collected at the time of the issuance of a building permit and the total development
fee from the applicant before the issuance of a certificate of occupancy. The funds shall be
transferred to Delaware Township’s CFO for deposit in the separate bank account
maintained for development fees.




                                                 29
3. DESCRIPTION OF ANTICIPATED USE OF DEVELOPMENT FEES:

a. Delaware will dedicate $1,737,378 to NORWESCAP, to a buy down program and to a
   regional contribution agreement (RCA).

   NORWESCAP: $150,000; COAH directed Delaware to provide $150,000 to the
   development of the NORWESCAP alternative living arrangement.

   RCA: $105,00 to $445,000
   Three to eleven units will be transferred to the City of Lambertville in Hunterdon
   County.

   Buydown: $702,736.40
   Delaware is also considering a buydown program for its payment in lieu fees.

b. Delaware has $439,641.60 remaining in the affordable housing trust fund to render units
   more affordable. Delaware will offer security deposit assistance for the renters at the
   Hockar Tract. In addition, Delaware will lower the rent(s) so as to be affordable to
   households at 30 percent of median income.

c. Delaware will dedicate $323,094 from the affordable housing trust fund to be used for
   administrative purposes as follows:

d. Delaware will utilize its administrative money for consultant fees necessary to develop
   and implement Delaware’s housing programs such as new construction, RCAs, housing
   element and/or affirmative marketing programs. Administrative funds will also be used
   to income qualify households and monitor implementation. Development fees will be
   used to defray the costs of implementing a fair share plan.

There is no remaining revenue in the affordable housing trust fund.

      IV.    SPENDING PLAN CALCULATION SUMMARY
Existing Balance                             $207,372.36
Pending fees due upon issuance of building   + $165,550.00
permit and/or CO
Projects awaiting approval                   + $165,550.00
Projection based on historic development     + $754,000
activity
Payments in lieu of construction             + $754,000
Projected Interest                           + $14,000
Other                                        + $00.00
     TOTAL PROJECTED REVENUE                 = $2,060,472
Funds used for RCA and new construction (not - $595,000
including administration of such programs)
 TOTAL SUBJECT TO AFFORDABILITY = $1,465,472
            ASSISTANCE REQUIREMENT


                                               30
       Affordability Assistance (minimum of 30               - $439,641.60
       percent of above total)
       Affordability Assistance to Very Low Income        $145,081.73
       Households (minimum of 1/3 of above
       allotment)
       Administration (maximum of 20 percent of           - $323,094
       total projected revenue minus RCA
       contribution)
       REMAINING FUNDS FOR OTHER                          = $702,736.40
       HOUSING ACTIVITY
       1. Buydown Program                                 - $702,736.40
       2.                                                 -$
       3.                                                 -$
                                                          = $0.00

       4. SCHEDULE FOR CREATION OF HOUSING UNITS

       Delaware anticipates that the NORWESCAP alternative living arrangement will have certificates
       of occupancy in 2006.


                                                                 FUNDS REQUIRED
                    NUMBER                                           (YEAR)
  PROGRAM             OF
                     UNITS      1       2       3        4          5        6      7        8         9   10

1. NORWESCAP          10     $150,000
2.
3.
4.
5.
6.
7.


       5. MUNICIPALLY SPONSORED OR 100 PERCENT AFFORDABLE PROGRAMS,
          NEW CONSTRUCTION ALTERNATIVE LIVING ARRANGEMENTS, AND
          AFFORDABLE HOUSING PARTNERSHIP PROGRAMS

            See above.

       6. UNEXPECTED SHORTFALL OF FUNDS

            Pursuant to the Housing Element and Fair Share Plan, if there is a deficiency, the governing
            body of Delaware will consider a resolution agreeing to fund any shortfall of funds.

               V.      SUMMARY

       Delaware intends to spend development fee revenues pursuant to N.J.A.C. 5:94-6.12 and in
       conjunction with the housing programs outlined in the Housing Element and Fair Share Plan,
       dated November 2005.


                                                       31
Delaware has collected $207,372.36 to date and anticipates an additional $1,853,100 in revenues
before the expiration of substantive certification for a total of $2,060,472.

Delaware will dedicate up to $595,000 towards RCAs and NORWESCAP. Delaware will reserve
$439,641.60 for affordability assistance to render units more affordable and $323,094 will be
expended for administrative costs. Any shortfall of funds will be offset by bonding.




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