The Princeton Council has approved a settlement agreement with the Fair Share Housing Center that will require the town to provide 753 affordable housing units to meet its “fair share” obligation between now and 2025.
The council approved the settlement agreement and several related resolutions at a special meeting that was held on Dec. 18.
The settlement agreement resolves a lawsuit filed against the town by the Fair Share Housing Center over its lack of affordable housing.
Under the settlement agreement, Princeton will receive credit for 244 low- and moderate-income housing units that have already been built and occupied.
The remainder of the units will be constructed through a variety of measures, including the rezoning of parcels for inclusionary housing developments. This means that 20% of the units would be set aside for low- and moderate-income households. The rest would be priced at the market rate.
Among the parcels to be rezoned for inclusionary development is a 4.5-acre parcel on the corner of Terhune Road and N. Harrison Street; the adjacent Princeton Shopping Center, which sits on 29 acres; and the vacant office buildings that sit on a 15-acre parcel at 100 Thanet Road and 101 Thanet Road. The office buildings will be demolished and replaced with rental apartments.
Princeton also may satisfy its obligation through the development of 100% affordable housing developments. The Princeton Planning Board approved a 64-unit rental development project on the corner of Mount Lucas Road and Herrontown Road earlier this year. All of the apartments will be affordable to low- and moderate-income households.
The settlement agreement also allows for an overlay zone on portions of Nassau Street to allow for mixed-use development. It would permit affordable housing to be constructed above the commercial uses on the first floor.
The Fair Share Housing Center sued Princeton, along with hundreds of New Jersey towns, over its failure to provide affordable housing under the apparent Mount Laurel Doctrine. The doctrine was a landmark ruling in the history of New Jersey housing.
The Mount Laurel Doctrine requires every town in New Jersey to provide its fair share of affordable housing. The doctrine grew out of lawsuits filed against Mount Laurel Township in the 1970’s.
Mount Laurel Township had rezoned for single-family-home developments, and did not provide for housing for less affluent residents.
The lawsuits led to the New Jersey Supreme Court’s Mount Laurel I and Mount Laurel II rulings that required every town to provide its fair share of housing for low- and moderate-income households.
The state is divided into six regions for affordable housing income standards. Princeton is in Region 4, which includes Mercer, Monmouth and Ocean counties. The median, or midpoint, income is $82,474 for a two-person household and $103,092 for a four-person household.
A two-person household that earns up to $24,742 would qualify as a very low income household. If the household’s income reaches $41,237, it would qualify as a low-income household. If its earnings reach $65,979, it would be a moderate-income household.
A four-person household that earns $30,928 is considered to be a very low income household. If its earnings are $51,546, it is considered to be a low income household. At $82,474, it is considered to be a moderate-income household.