title
Resolution of the Mayor and Council of Princeton of Intent to Fund or Bond for Fourth Round Affordable Housing Program
end
body
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 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”); 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”), the Municipality 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, identifying its 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 adopted a Fourth Round Spending Plan; and
WHEREAS, Princeton’s Fourth Round HEFSP includes a number of compliance mechanisms, including municipally sponsored projects, to meet the municipality’s fourth round affordable housing obligations; and
WHEREAS, the Fourth Round HEFSP and Spending Plan also provide for expenditures to fund and support its municipally sponsored affordable housing mechanisms; and
WHEREAS, pursuant to the requirements of the FHA and Administrative Directive #14-24, in order to ensure the creditworthiness of the various compliance techniques included in its HEFSP, the Municipality must demonstrate adequate and stable funding sources; and
WHEREAS, Princeton is committed to securing approval of its Fourth Round HEFSP; and
WHEREAS, Princeton has in place an affordable housing Development Fee Ordinance to generate revenue for the Municipality’s Affordable Housing Trust Fund; and
WHEREAS, Princeton anticipates that monies collected and deposited in the Affordable Housing Trust Fund, along with other permitted funding sources, will be sufficient to effectuate the mechanisms included in its HEFSP; and
WHEREAS, Princeton acknowledges that the FHA and the State’s affordable housing rules and regulations contemplate that utilization of a mandatory development fee ordinance is an appropriate mechanism to generate the revenue necessary to fund the expenses incurred in connection with its HEFSP, but that said rules also require that there be an alternative funding source in the event that insufficient monies are derived from the development fee ordinance or other resources, or the funds are not received in a timely fashion, for the purpose of effectuating the municipally-sponsored affordable housing mechanisms; and
WHEREAS, in compliance with the FHA, the State’s affordable housing rules and regulations, and Administrative Directive #14-24, by this Resolution, Princeton expresses its commitment to fund any shortfalls in its affordable housing compliance program through bonding or other lawful means.
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, that Princeton does hereby confirm that in the event that the projected funding for its municipally sponsored affordable housing compliance mechanisms set forth in Princeton’s Fourth Round HEFSP necessary to meet its Fourth Round affordable housing obligations are insufficient, it is the intention of Princeton to fund any such shortfall by other means, including by the adoption of appropriate bond ordinance(s) if necessary, in order to provide the requisite funding in an appropriate time frame.