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Resolution of the Mayor and Council of Princeton Authorizing the Execution of a Development Agreement with PCH Development Corporation for an Affordable Housing Development in Connection with the Municipality’s Fourth Round Affordable Housing Plan
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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 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 Township filed a Complaint for Declaratory Judgment entitled In the Matter of the Application of the Municipality of Princeton in Mercer County, bearing Docket No. MER-L-1550-15, identifying its fourth round present need and prospective need obligations, committing to timely preparing and adopting a Housing Element and Fair Share Plan (“HEFSP”), implementing ordinances and compliance submissions, and seeking a declaratory judgment granting fourth round compliance certification, including a judgment of compliance and repose pursuant to N.J.S.A. 52:27D-304.1 of the FHA; and
WHEREAS, PCH Development Corporation (“PCH”) is a local not-for-profit corporation that has a long history of developing, constructing, facilitating and managing affordable housing opportunities within the Municipality of Princeton (“Princeton”); and
WHEREAS, PCH has expressed an interest in constructing, owning, operating and maintaining additional affordable, income-restricted family rental housing within Princeton to assist Princeton in addressing its Fourth Round (2025-2035) affordable housing obligation; and
WHEREAS, Princeton is the owner of certain real property located at 13 Chestnut Street, designated as Block 30.02, Lots 39.01 and 39.02 on the Princeton Tax Map (the “Property”), which Princeton believes is suitable and appropriate for the provision of low- and moderate-income housing; and
WHEREAS, Princeton is desirous of having PCH construct, develop, own and operate a 16-unit, 100% affordable housing development on the Property (the “Project”); and
WHEREAS, the Township has included the Project in its HEFSP, with the Project assisting Princeton in meeting its Fourth Round affordable housing obligations; and
WHEREAS, N.J.S.A. 52:27D-311.a.(5) and N.J.S.A. 52:27D-325 authorizes a municipality to convey public property for the purposes of creating affordable housing opportunities; and
WHEREAS, N.J.A.C. 5:97-8.7(a) and N.J.A.C. 5:93-8.16 specifies that a municipality may use affordable housing funds for the construction of new affordable housing units, related development costs and for infrastructure directly serving affordable housing developments, for a rehabilitation program, for the acquisition and/or improvement of land to be used for affordable housing, for maintenance and repair of affordable housing units, and for any other activities as specified in an approved spending plan; and
WHEREAS, to enable, facilitate and support the development of the Project, Princeton agrees and commits to provide funding to PCH in the amount of $325,000.00 for the Project; and
WHEREAS, said funds shall come from the municipal affordable housing trust fund and/or by bonding, and is made expressly contingent upon court-approval of a municipal spending plan amendment that includes and commits the necessary funds for this Project; and
WHEREAS, Princeton wishes to enter into an Agreement with CHA providing for the Project contemplated herein and does wish to commit and expend funds to assist PCH construct and complete the Project. .
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of Princeton, County of Mercer, State of New Jersey, on this 8th day of September, 2025, as follows:
1. The preamble to this resolution is hereby incorporated as if fully restated herein.
2. Princeton is hereby authorized to enter into a Development Agreement with PCH Development Corporation (the “Agreement”), providing for (a) the conveyance of municipally owned property located at 13 Chestnut Street, designated as Block 30.02, Lots 39.01 and 39.02 on the Princeton Tax Map, and (b) development of the Property with a 16-unit, 100% affordable housing rental project that will be administered in accordance with the terms and conditions of the FHA, the applicable rules of the Council on Affordable Housing (“COAH”), the Uniform Housing Affordability Controls (“UHAC”), and Princeton’s ordinances.
3. Pursuant to the authority granted by N.J.S.A. 52:27D-311.a.(5) and N.J.S.A. 52:27D-325, Princeton is authorized to convey by private sale and conveyance the Property to PCH under the terms and conditions set forth in the Agreement, with such conveyance specifically conditioned upon a contractual guarantee that the Project will remain available to low- and moderate-income households for a period of at least 40 years.
4. Princeton hereby commits the sum of up to Three Hundred Twenty Five Thousand ($325,000.00) Dollars for the construction of the Project set forth and described herein. Said funds are or shall be available from by the adoption of a necessary funding ordinance and/or the Municipal Affordable Housing Trust Fund pursuant to the Court’s approval of a Fourth Round Municipal Affordable Housing Spending Plan as part of Princeton’s Mount Laurel Declaratory Judgment action, Docket No. MER-L-1550-15.
5. The Mayor and Municipal Clerk are authorized and directed to sign the Agreement on behalf of the Princeton, 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.
6. The Mayor, Administrator, Clerk, Finance Officer, Attorney, Affordable Housing Planner, and other appropriate officers, employees, staff and professionals are hereby authorized and directed to prepare and execute any and all documents regarding the agreement authorized above and to undertake any and all further acts necessary to accomplish the purposes hereof
7. This Resolution shall take effect immediately.