The meeting kicked off with Borough Planner Darlene Green providing an in-depth analysis of the borough’s obligations under the revised Fair Housing Act. She emphasized the borough’s vulnerability to builder remedy lawsuits if it failed to submit the housing plan on time. These lawsuits could allow developers to sidestep local zoning ordinances if the borough is found non-compliant with its affordable housing obligations. Green stated, “The carrot in this process has always been towns come in and voluntarily comply and you will receive immunity, which protects your zoning and your master plan.” She starkly described the risk of lawsuits as “much more than a stick. It’s more of like a club with nail spikes surrounding it.”

The council discussed the intricacies of the borough’s housing obligations, which included a prior round obligation of 111 units and a contested third-round obligation that was initially set at 234 units but reduced to 35 units after a vacant land adjustment. The fourth-round obligation, set to begin on July 1st, was initially pegged at 220 units by the Department of Community Affairs (DCA) but was negotiated down to 190 units. Green elaborated on the borough’s strategy for meeting these obligations using various mechanisms and credits from existing developments, such as Hillsdale House, which contributes to the borough’s housing credits.

In a review of the borough’s current affordable housing mechanisms, Green noted that Hillsdale House, a 99-unit affordable housing facility, plays a role by contributing credits towards both prior and current obligations. The council also discussed other properties, including group homes and inclusionary developments, that add to the borough’s credits. Despite these efforts, the borough still needed to address its unmet housing needs while balancing flexibility in planning.

The council then highlighted ongoing efforts to redevelop specific sites as part of a settlement agreement with Fair Share Housing Center. The Claremont redevelopment site, located within the Patterson Street redevelopment area, was identified as a key project anticipated to yield 20 affordable housing credits. The broader Patterson Street area is expected to contribute an additional 24 credits toward the borough’s third-round unmet need. Zoning changes to the Verizon property on Broadway were also discussed, with an anticipated six credits from its potential redevelopment.

An ordinance described as a “fisherman’s net” aimed at facilitating affordable housing development outside designated inclusionary zones was introduced. This ordinance mandates a set-aside of 15% for rental developments and 20% for sales, though recent changes propose a uniform 20% set-aside for both categories. This adjustment was made to eliminate rental bonuses and create a more equitable incentive structure for developers.

The discussion also covered the borough’s fourth-round obligations, requiring the satisfaction of a four-unit realistic development potential (RDP). The site on Central Avenue, developed by Bergen County United Way, was identified as a partnership project expected to provide four credits for special needs units. Additionally, redevelopment plans for the property at 100-101 West Street were outlined, proposing 18 townhomes with an increase in affordable units from two to four, contributing credits towards the borough’s RDP.

The status of Hillsdale House was again emphasized, with commitments to maintain it for affordable housing until 2045. The council discussed extending the tax abatement agreement to 2046 to secure additional credits. Hillsdale House currently contributes nine credits for disabled adults and 51 credits for seniors, addressing some of the borough’s unmet needs.

The court-approved settlement had already acknowledged the mechanisms in place for the third-round unmet need, though there remained some uncertainty about the specific yield of the rental set-aside.