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Resolution of the Mayor and Council of Princeton Authorizing a Fourth Round Affordable Housing Settlement Agreement with Fair Share Housing Center
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WHEREAS, the New Jersey Supreme Court, through its rulings in Southern Burlington County NAACP v. Mount Laurel, 67 N.J. 151 (1975) and Southern Burlington County NAACP 14 v. Mount Laurel, 92 N.J. 158 (1983), has determined that every municipality in New Jersey has a constitutional obligation to provide through its land use regulations a realistic opportunity for its fair share of its region’s present and prospective needs for housing for low- and moderate-income families; and
WHEREAS, on July 7, 2015, pursuant to the Court’s Mount Laurel IV (In the Matter of the Adoption of N.J.A.C. 5:96 and 5:97, 221 N.J. 1 (2015)) decision, Princeton instituted a declaratory judgment action in the Superior Court of New Jersey, entitled In the Matter of the Application of the Municipality of Princeton in Mercer County, bearing Docket No. MER-L-1550-15, seeking a judgment of immunity and repose pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301 et seq., for its “third round” affordable housing obligations (the “Third Round DJ Action”); and
WHEREAS, Fair Share Housing Center (“FSHC”) was an interested party in the Third Round DJ Action; and
WHEREAS, Princeton and FSHC entered into a settlement agreement in the Third Round DJ Action on December 18, 2019, agreeing upon and setting forth Princeton’s plan to meet its third round affordable housing obligations, with said settlement approved by the Court at a Fairness Hearing held on February 7, 2020 and memorialized by Order entered on February 20, 2020; and
WHEREAS, Princeton implemented and complied with the terms of its third round Settlement Agreement with FSHC and obtained a Conditional Judgment of Compliance and Repose from the Court in the Third Round DJ Action on December 10, 2020, and a Final Judgment of Compliance and Repose on February 7, 2025; and
WHEREAS, on March 20, 2024, Governor Murphy signed P.L.2024, c.2. into law, amending the Fair Housing Act of 1985, N.J.S.A. 52:27D-301, et seq., to establish a new framework for determining and enforcing municipalities’ affordable housing obligations under the New Jersey Supreme Court’s Mount Laurel doctrine and the Act (the “FHA”), starting with fourth round (2025-2035) affordable housing obligations; and
WHEREAS, in accordance with the FHA and Administrative Directive #14-24 issued by the Administrative Office of the Courts on December 13, 2024 (“Administrative Directive #14-24”), Princeton filed a Complaint for Declaratory Judgment entitled In the Matter of the Application of the Municipality of Princeton in Mercer County, Docket No. MER-L-000207-25 on January 28, 2025 (the “Fourth Round DJ Action”), identifying Princeton’s present and prospective fair share obligations for the Fourth Round, and committing to adopting and submitting a Fourth Round Housing Plan Element and Fair Share Plan (“HEFSP”) as required by the FHA; and
WHEREAS, on June 25, 2025, the Princeton Planning Board adopted a Fourth Round HEFSP pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1, et seq., as required by and in conformance with the FHA; and
WHEREAS, on June 26, 2025, by Resolution No. 25-230, the Mayor and Council endorsed Princeton’s Fourth Round HEFSP; and
WHEREAS, Princeton’s Fourth Round HEFSP sets forth a plan which fully satisfies Princeton’s Fourth Round affordable housing obligations, including satisfaction of its prior round unmet need obligation that carried forward from the former Princeton Borough, which obligation predates the consolidation of the former Princeton Township and the former Princeton Borough into the Municipality of Princeton; and
WHEREAS, recharacterizing and satisfying the prior round unmet need obligation in the HEFSP results in several benefits to Princeton, including the elimination of the legacy unmet need requirements, gives Princeton the ability to claim bonuses for the former unmet need units, the ability to plan for future housing in locations determined to be appropriate for Princeton, the elimination of a separate accounting of affordable housing units depending on whether they are created in the former Township or former Borough, and enables a unified approach to the consideration of the most appropriate locations and types of affordable housing within Princeton according to sound land use principles; and
WHEREAS, because the HEFSP impacts and modifies components of the third round settlement with FSHC and Princeton’s judgment in the Third Round DJ Action, Princeton consulted with FSHC in the preparation and adoption of its Fourth Round HEFSP; and
WHEREAS, to address such impacts and modifications, Princeton and FSHC now wish to enter into a Fourth Round Affordable Housing Settlement Agreement, setting forth Princeton’s compliance plan and resolving any issues or concerns about the HEFSP, the terms of which agreement are fair and reasonable to low- and moderate-income households, and which satisfies Princeton’s fourth round affordable housing obligations, including the prior round unmet need obligation of the former Princeton Borough.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of Princeton, County of Mercer, State of New Jersey, on this 26th day of June, 2025, as follows:
1. The preamble to this Resolution is hereby incorporated as if more fully set forth herein.
2. Princeton is hereby authorized to enter into a June 26, 2025 Settlement Agreement
with Fair Share Housing Center in resolution of Princeton’s Fourth Round DJ Action referenced above, upon the terms and conditions set forth in the Agreement.
3. The Mayor and Clerk are hereby authorized and directed to sign on behalf of
Princeton the above-referenced Settlement Agreement, a copy of which is on file in the Municipal Clerk’s Office, or such other substantially similar agreement, the terms and form of which shall have been reviewed and approved by the Municipal Attorney in consultation with the Mayor and Administrator.
4. The Mayor, Administrator, Clerk, Attorneys, Planners, and other appropriate
officers, employees and professionals, are hereby authorized and directed to prepare and execute any and all such other documents and undertake any and all such further acts as may be necessary or required to effectuate the above-referenced settlement.
5. This Resolution shall take effect immediately.