INTRODUCTION

This Housing Plan Element has been prepared in accordance with the Municipal Land Use Law (MLUL) at N.J.S.A. 40:55D-28b(3) to address Ringwood Borough’s cumulative housing obligation for the period 1987- 2014. This Plan has also been prepared pursuant to N.J.S.A. 52:27D-310, which outlines the mandatory requirements for a Housing Plan Element, including an inventory and projection of the municipal housing stock; an analysis of the demographic characteristics of the Borough’s residents; and, a discussion of municipal employment characteristics. It also responds to the affordable housing mandates of the Third Round Substantive Rules of the Council on Affordable Housing (COAH) (N.J.A.C. 5:94-1 et seq.).

As required by the Fair Housing Act, municipalities that choose to enact and enforce a zoning ordinance are obligated to prepare a Housing Element as part of the community's Master Plan. The Fair Housing Act also established the Council on Affordable Housing (COAH) as the State agency to administer municipal implementation of municipal plans and to create rules and regulations to develop low- and moderate-housing in the State.

COAH has established both procedural and substantive rules for a Compliance Plan to address the affordable housing obligation, based on a regional fair share allocation formula. Municipal land development regulations are now entitled to a ten-year presumption of validity against a builders remedy challenge when a local Housing Element/Fair Share Plan either receives substantive certification from COAH.

The first round COAH regulations covered the 1987-1993 time period. In 1994, COAH adopted substantive rules establishing the requirements for the Second Round of affordable housing plans, covering a twelve-year cumulative period from 1987-1999. The substantive rules for COAH’s Third Round were adopted on December 20, 2004, covering the period from January 2000 to December 2013, although compliance is to be achieved during the period from January 2004 to December 2013.

CUMULATIVE PRIOR ROUND AND THIRD ROUND OBLIGATION

Affordable housing obligations assigned to municipalities by COAH for the Third Round (through 2013) have been adjusted from prior forecast estimates, based on population and housing data from the 2000 Census. COAH recalculated each municipality’s prior round obligation, remaining rehabilitation component and anticipated residential and non-residential growth through the year 2013, to generate a new affordable housing obligation for each municipality, which is to be met during the period January 1, 2004 to January 1, 2014.

COAH Third Round rules provide that a growth share obligation accrues, beginning January 1, 2004, in relation to new residential and non-residential development. One (1) affordable housing unit is required for every 8 market units and for each 25 new jobs after that date. Pending readoption of the State Plan, with revised forecasts, COAH’s Third Round rules utilize household and job forecasts prepared by Metropolitan Planning Organizations to calculate growth share, and also require municipalities to compare these numbers to locally-derived estimates based on approved or expected growth according to a new COAH methodology..

As shown on Table 1, the MPO forecast results in a growth share obligation of 22 affordable units. The analysis of approved and potential development activity in the Borough indicates lower residential growth but more jobs than projected by the MPO with a net result that the 13-unit growth share component based on the Borough’s development information is 9 units lower than the MPO estimate. Given the impact of the Highlands regulations, which have sharply curtailed the Borough’s development potential, it appears appropriate to utilize the locally-derived growth share estimate in calculating Ringwood’s fair share housing obligation.

TABLE 1

MPO AND LOCALLY-DERIVED GROWTH SHARE

Growth Share Component	MPO	Locally-derived
Residential growth share	21 affordable units	5 affordable units
Nonresidential growth share	+ 1 affordable unit	+7 affordable units
Total Growth Share	22 affordable units	12 affordable units

The total Third Round obligation, which is cumulative for all prior cycles, includes three components, as shown in Table 2. The 12-unit growth share estimate is combined with an 8-unit rehabilitation requirement and the 39-unit recalculated prior round obligation to yield a 59-unit cumulative obligation for the period 1987 through 2013.

TABLE 2

RINGWOOD BOROUGH’S THIRD ROUND

AFFORDABLE HOUSING OBLIGATION

Total Recalculated Second Round (Appendix C – COAH Third Round rules)	39
Growth Share	12
Rehabilitation Obligation	8
Total Third Round Obligation	59

COAH requires monitoring actual growth at intervals during the 10-year period of certification (Years 3, 5 and 8) and can adjust the obligation upward or downward if actual growth differs from projected growth.

COAH-CERTIFIED SECOND ROUND UNITS AND CREDITS

Ringwood Borough received second round substantive certification on August 4, 1999, and the components of that plan were acknowledged in the COAH Compliance Report dated September, 30, 2005. The certified plan included a total of 11 rehabilitation credits leaving a remaining obligation of 62 units, consisting of 51 new units and an 11-unit rehabilitation obligation. The new construction components and rental bonus credits were computed as follows:

16 units (15 age-restricted and 1 non-age-restricted unit/bed) in the Sisters of Saint Francis Assisted Living facility
10 for-sale units in a municipally sponsored construction project
12 beds in a group home
12 bonus credits for the group home units
11 units in rehabilitation program

According to the COAH Compliance report of September 30, 2005, COAH subsequently determined that the municipal construction site would not be developed as anticipated, and that another municipally-owned vacant site was selected as a replacement. In accordance with an Administrative Order issued by COAH, Ringwood adopted an amended Housing Element and Fair Share Plan and submitted its petition for substantive certification on June 27, 2001. An objection was filed, followed by COAH mediation that has not been concluded. However, the site in question is now within the Preservation Area of the Highlands Region and the project has not yet secured Planning Board approval. COAH has not certified the amended June 27, 2001 Housing Element.

MEETING THE RECALCULATED PRIOR ROUND OBLIGATION

While COAH may continue to recognize the Sisters of Saint Francis site as presenting a realistic opportunity to address part of Ringwood’s fair share obligation if submitted as part of Ringwood’s Fair Share Plan (pending resolution of the Highlands issues), this compliance element appears unduly burdensome on the Borough. With only 15 affordable units as the 10% set aside inclusionary component of a 150-unit project, as cited in the COAH Compliance report of September 30, 2005, the Borough will accrue an additional 10-unit growth share obligation from this project, as only 60 of 135 market units will be excluded from growth share according to NJAC 5:94-2.4 (a) 4, based on a minimum 20% set-aside requirement for excluding market units.

A more appropriate approach is seen in the municipal construction project, which remains a viable option to create 10 for-sale units (subject to the impact of the Highlands’ Preservation Area controls). The Spectrum for Living group home actually includes 16 beds for developmentally disabled adults occupied as of December 2002, not the 12 beds acknowledged by COAH and credited with 12 rental bonus credits. These 16 units qualify for 16 rental bonuses. Table 3 illustrates the 42 credits Ringwood is applying toward the 39-unit recalculated new construction obligation, leaving a 3-unit surplus toward the Third Round.

TABLE 3

SUMMARY OF RINGWOOD BOROUGH’S RECALCULATED SECOND ROUND

AFFORDABLE HOUSING COMPLETION STATUS

Project Name	Total affordable units	Rental Bonus Credits	Affordable Units / Bedrooms and Bonus Credits Applied to Second Round	Affordable Units to be Applied to Third Round
Spectrum for Living (occupied)	16	16	32	0
Municipal construction	10		7	3
Total			39	3

MEETING THE THIRD ROUND COAH OBLIGATION

Ringwood’s Third Round Obligation includes the post-2000 rehab obligation (8 units) and the 12-unit growth share obligation, as seen in Table 4,

TABLE 4

RINGWOOD’S THIRD ROUND GROWTH SHARE OBLIGATION

AND PRIOR ROUND SURPLUS UNITS

Growth Share	12
Third Round Rehabilitation Obligation	8
Total Surplus from Recalculated Second Round	-3
Remaining Third Round Obligation	17

PLANNING FOR FUTURE AFFORDABLE HOUSING

COAH Third Round rules permit municipalities to meet growth share obligations with a combination of techniques, and also specify how the growth share obligation must be satisfied, including:

up to 50% of growth share addressed within the municipality may be age-restricted units (up to 6 units);
up to 50% of total growth share (up to 6 units) can be transferred to another municipality via Regional Contribution Agreements (at $35,000/unit minimum);
at least 25% of growth share (at least 3 units) must be rental units (rental obligation);
no more than 50% of the rental obligation may be met with age-restricted units;
rental bonuses are not available for age-restricted units;
rental bonuses for non-age restricted units only apply after the rental obligation has been met.

FAIR SHARE PLAN

Ringwood will utilize the following affordable housing strategies, which will complement the Borough’s land use goals and policies and meet local needs, to meet the 17-unit Third Round obligation:

FAIR SHARE PLAN

Fair Share Compliance Component	Number of Units
Rehabilitation	8
Regional Contribution Agreement	6
Accessory Apartments	3
Total	17

Ringwood may utilize the following funding tools to meet the COAH obligation:

Developer fee ordinance – development fees of one percent for residential development and two percent for non-residential development may be charged through a COAH approved development fee ordinance that can fund out of town construction including RCA units.

Growth share ordinance – builders whose new development produces a growth share may be required to build affordable units at the required rate (1 affordable/8 market units or 25 jobs) or to pay an in-lieu fee to cover the pro-rated cost of partial-unit obligations.

As an alternative to the foregoing approaches, or in the event monitoring of actual growth requires a greater growth share in the future, the Borough may elect to pursue a small 100% affordable senior housing project, to encourage and permit other group homes or similar facilities for low and moderate income persons, or to encourage mixed use of existing commercial facilities in order to provide affordable units.

APPENDIX A - HOUSING AND DEMOGRAPHIC CHARACTERISTICS

Inventory of Municipal Housing Conditions

The primary source of information for the inventory of the Borough’s housing stock is the 2000 U.S. Census, with the data reflecting conditions in 2000.According to the 2000 Census, the Borough had 4,221 housing units, of which 4,108 (97%) were occupied. Table 1 identifies the units in a structure by tenure; as used throughout this Plan Element, "tenure" refers to whether a unit is owner-occupied or renter-occupied. While the Borough largely consisted of one-family, detached dwellings (98% of the total, compared to 43% in the County), there were 101 units in attached or multi-family structures. The Borough had a lower percentage of renter-occupied units, 6%, compared to 43% in Passaic County and 32% in the State.

TABLE 1: Units in Structure by Tenure

Units in Structure	Vacant Units	Occupied Units
Units in Structure	Vacant Units	Total	Owner	Renter
1, detached	106	4,014	3,847	167
1, attached	7	27	0	27
2	0	60	33	27
3 or 4	0	7	0	7
5+	0	0	0	0
Other	0	0	0	0
Mobile home or trailer	0	0	0	0
Total	113	4,108	3,880	228

Source: 2000 U.S. Census, Summary Tape File 3 (STF-3) for Borough, QT-H10 and DP-4.

Table 2 indicates the year housing units were built by tenure, while Table 3 compares the Borough to Passaic County and the State. Approximately 66% of the owner-occupied units and all renter occupied units in the Borough were built before 1970.

TABLE 2: Year Structure Built by Tenure

Year Built	Vacant Units	Occupied Units
Year Built	Vacant Units	Total	Owner	Renter
1990-2000	0	163	163	0
1980-1989	0	296	296	0
1970-1979	14	892	876	16
1960-1969	34	1,329	1,281