By Robert Wright
By now most municipalities have adopted a Third Round Housing Element and Fair Share Plan which has been approved by the Superior Court granting the municipality a Final Judgment of Compliance and Repose through July 1, 2025. While the Fourth Round does not start for a couple of years, municipalities should not be just sitting back and waiting. There are many requirements to retain Third Round compliance and prepare for the Fourth Round.
The municipality’s Third Round Judgment of Compliance and Settlement Agreement with Fair Share Housing outline the ongoing obligations during the Third Round. These include an annual monitoring report. Normally this report is prepared by the municipality’s community development director (or comparable title) or township planner and reviewed by the municipality’s affordable housing attorney. The Settlement Agreement and Judgment of Compliance and Repose will set forth the date the Annual Monitoring Report is due, usually on the anniversary of the Judgment of Compliance.
The Annual Monitoring Report is a status update on all affordable housing activity in the municipality for the prior year. The report must include an update on any conditions set forth in the Judgment of Compliance and Repose, as well as an update of any construction that was in progress or anticipated at the time the Judgment was entered. It also needs to include a financial report regarding the municipality’s Affordable Housing Trust Fund. This Annual Monitoring Report is required to be made publicly available by posting it on the Township’s website.
In addition to the Annual Monitoring Report, every three (3) years municipalities are required to report on the status of the municipality’s very-low-income housing requirements consistent with N.J.S.A. 52:27D-329.1. This is a standard requirement in Settlement Agreements with Fair Share Housing Center. This can be part of the municipality’s Annual Monitoring Report either every year or added every third year.
As of right now, there is no available information on what the Fourth Round is going to look like. A lot of legislation has been proposed, but there are currently no proposed regulations from the Department of Community Affairs, nor has any legislation progressed substantially. With this uncertainty, here are a few things you can do now to make sure your municipality is prepared for the Fourth Round:
- Make sure you have appointed affordable housing professionals including an affordable housing attorney, planner and an administrative agent;
- Consult with those professionals to make sure your municipality remains in compliance with its Third Round obligations;
- Look for opportunities to get credit for existing affordable housing, such as group homes; and
- Continue to work with your professionals on monitoring legislation and regulations for the Fourth Round.
Hopefully the Legislature and Administration will provide municipalities with adequate time and guidance to prepare for the Fourth Round. For now, the best way to prepare for the Fourth Round is to remain compliant with your municipality’s Third Round requirements.
The government attorneys at Malamut & Associates can help municipalities stay in compliance. Contact Robert Wright at rwright@malamutlaw.com or visit our website at MalamutLaw.com.
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.
