Resolution - Bernards, Petitioning Coah for Certification (A0385478;1)

1 Collyer Lane, Basking Ridge, NJ 07920 Phone: 908-204-3001; Fax: 908-204-3015; Website: www.bernards.org

Resolution #050455 Petitioning the New Jersey Council On Affordable Housing For Substantive Certification

WHEREAS, by Resolution adopted by the Bernards Township Planning Board on November 22, 2005, (a copy of which is annexed hereto as Exhibit 1), the Planning Board adopted an Amended Housing Element and Fair Share Plan for petition purposes to COAH to obtain a Cumulative Third Round Certification (“substantive certification”); and

WHEREAS, the Township of Bernards, in the County of Somerset desires to petition COAH in furtherance of the Amended Housing Element and Fair Share Plan adopted by the Bernards Township Planning Board on November 22, 2005, (a copy of which Amended Housing Element and Fair Share Plan is annexed hereto as Exhibit 2 and made a part hereof).

NOW, THEREFORE, be it resolved by the Mayor and Township Committee of the Township of Bernards, County of Somerset, State of New Jersey, as follows:

1. The Amended Housing Element and Fair Share Plan annexed hereto and made a part hereof as adopted by the Planning Board of the Township of Bernards on November 22, 2005, as part of the Master Plan of the Township of Bernards be submitted to COAH for review and approval of the Township’s petition for substantive certification.

2. The Township of Bernards is authorized to publish notice of the petition for substantive certification in a newspaper of countywide circulation and the Bernardsville News and that a copy of this Resolution and the Amended Housing Element and Fair Share Plan and supporting documents be made available for public inspection at the Township Clerk’s office during regular business hours, on Monday through Friday for a period of 45 days following the date of publication of said legal notice.

3. The Mayor and Township Committee of the Township of Bernards do hereby endorse in its entirety the Amended Housing Element and Fair Share Plan for purposes of petition to COAH as approved by the Planning Board at its meeting on November 22, 2005.

Agenda and Date Voted: 11/29/05 Exhibit 1 RESOLUTION NO.______

RESOLUTION OF THE TOWNSHIP OF BERNARDS PLANNING BOARD ADOPTING AMENDED HOUSING ELEMENT AND FAIR SHARE PLAN

WHEREAS, the Planning Board of Bernards Township, County of Somerset, State of New Jersey, did on November 22, 2005, adopt a Master Plan pursuant to N.J.S.A. 40:55-28 and 89; and WHEREAS, pursuant to N.J.S.A. 40:55-28(b)(3) a housing element is an essential part of said Master Plan; and WHEREAS, the Planning Board of Bernards Township has on November 22, 2005, held a public hearing on an amendment to the said housing element and fair share plan, for which hearing notice was duly provided pursuant to N.J.S.A. 40:55D-13; and WHEREAS, the planning board has determined that the said amended housing element and fair share plan are consistent with the goals and objectives of Bernards Township’s 2003 Master Plan and that adoption and implementation of same is in the public interest and protects public health and safety and promotes the general welfare.

NOW THEREFORE BE IT RESOLVED by the Planning Board of Bernards Township, County of Somerset, State of New Jersey, as follows: Exhibit 2

Bernards Township 2005 Housing Element and Fair Share Plan

Inventory of Municipal Housing Conditions Analysis of Demographic Characteristics Projection of Municipal Housing Stock Determination of Third Round Growth Share Third Round Fair Share Plan

NOVEMBER 2005

Prepared by the Bernards Township Planning Board TABLE OF CONTENTS

INVENTORY OF MUNICIPAL HOUSING CONDITIONS...... 1 Table 1: Units in Structure by Tenure...... 1 Table 2: Year Structure Built by Tenure...... 1 Table 3: Comparison of Year of Construction for Township, County, and State...... 2 Table 4: Household Size in Occupied Housing Units by Tenure...... 2 Table 5: Number of Bedrooms per Unit by Tenure...... 3 Table 6: Average Household Size for Occupied Units for Township, County, and State...3 Table 7: Percentage of All Units by Number of Bedrooms...... 3 Table 8: Housing Quality for Township, County, and State...... 4 Table 9: Value of Owner Occupied Residential Units...... 5 Table 10: Gross Rents for Specified Renter-Occupied Housing Units1...... 5 Table 11: Household Income in 1999 by Gross Rent as a Percentage of Household Income in 19991...... 6 ANALYSIS OF DEMOGRAPHIC CHARACTERISTICS...... 7 Table 12: Population by Age and Sex...... 7 Table 13: Comparison of Age Distribution for Township, County, and State (% of persons)...... 8 Table 14: Persons in Household...... 8 Table 15: Comparison of Persons in Household for Township, County, and State (% of households)...... 9 Table 16: Persons by Household Type and Relationship...... 9 Table 17: 1999 Income for Township, County, and State...... 10 Table 18: Poverty Status for Persons and Families for Township, County, and State...... 10 Table 19: Comparison of 1995 Place of Residence for Township, County, and State...... 11 Table 20: Educational Attainment for Township, County, and State Residents...... 11 Table 21: Means of Transportation to Work for Township, County and State Residents11 PROJECTION OF MUNICIPAL HOUSING STOCK AND EMPLOYMENT...... 12 RESIDENTIAL GROWTH SHARE...... 13 NON-RESIDENTIAL GROWTH SHARE OBLIGATION...... 17 TOTAL PROJECTED AFFORDABLE HOUSING OBLIGATION...... 22 Housing Plan Element and Fair Share Plan Bernards Township, Somerset County NJ

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). This Housing Element 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 Bernards Township’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).

This Housing Plan Element includes the determination of Bernards Township’s fair share affordable housing obligation, and identifies proposed compliance techniques to meet the local obligation, which together constitute Bernards Township's Fair Share Plan. The Fair Share for the Township has been calculated using two methods, including population and employment growth based upon New Jersey Transportation Planning Authority (NJTPA) growth projections, the Metropolitan Planning Organization (MPO) forecasts for the Township; and municipal projections of residential and non residential growth. For both residential and nonresidential growth, locally projected growth is less than MPO household and employment forecasts. These locally derived forecasts are more accurate and a better reflection of growth that will occur during the third housing cycle than the MPO estimates because the local estimates are based upon a buildout analysis taking into consideration all vacant buildable land and zoning. Therefore, Bernards Township has utilized local growth projections based upon approved and projected development to identify the Township’s third round growth share affordable housing obligation.

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

 up to 50% of growth share addressed within the municipality may be age-restricted units;  up to 50% of total growth share (89/2=44) can be transferred to another municipality via Regional Contribution Agreements (at $35,000/unit);  at least 25% of growth share (89/4=23) must be rental units (rental obligation);  no more than 50% of the rental obligation (11 units) 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.

Municipal Determination of Fair Share Obligation - According to the Third Round COAH rules, Bernards Township’s current affordable housing fair share obligation consists of three components, including

1. Rehabilitation Obligation (if any); 2. Remaining Prior Rounds Obligation (if any); and 3. Third Round Growth Share Obligation:

The following is a summary of the calculation of Bernards Township’s third round growth share obligation, which is calculated in Appendix A of this document.

Locally Derived Growth Share Obligation: Residential growth share: 194 ÷ 9 = 21.56 affordable housing units Nonresidential growth share: 1,669.97 ÷ 25 = 66.80 affordable housing units Total Growth Share: 21.56 + 66.80 = 88.36 or 89 affordable housing units

Fair Share Plan: The Township has had no rehabilitation obligation assigned for the third round. The Township’s affordable housing production under the prior rounds has resulted in 45 surplus units and credits that may be applied to the Township’s third round growth share obligation including 39-units of surplus units in the form of age-restricted rental housing (Ridge Oak). The Third Round Growth Share Obligation has been determined to be 89 units. Thus, after applying 45-units of credits from affordable age-restricted rental housing from the prior rounds to the third round growth share, there remains a 44-unit obligation to be addressed as the third round obligation.

Bernards Township will address the remaining 44 unit obligation with 59 bedrooms of alternative living arrangement rental affordable housing. This will be provided in a building leased by Community Hope, Inc. from the Veterans Administration Hospital in Lyons, NJ, through a project called Veterans for Hope, which is a Class I Emergency Homeless Shelter licensed by the New Jersey Department of Community Affairs. This facility came into existence in 2004, and currently includes 47-bedrooms. The Veterans for Hope facility will be enlarged during the third round with the addition of at least 12 bedrooms, yielding a total of 59 bedrooms, which combined with the prior rounds surplus units and credits exceeds the Township’s third round affordable housing obligation by 15 units. Thus, the implementation of the Township’s third round fair share plan will provide the Township with 15 surplus units and credits.

The following table is a summary of the Township’s calculation of its third round fair share plan, taking into account prior rounds obligation and affordable housing production and credits. The table includes the Township’s third round growth share and applies prior rounds surplus units and credits to the obligation, as well as identifying the methods to address the third round growth share. Bernards Township’s Third Round Fair Share Plan Summary

Rehabilitation Obligation: 0

Total Obligation from Prior Rounds: 508 COAH-Certified Credits and Reductions Society Hill (for sale) -100 Society Hill (for sale) -106 Crown Court (family rentals) -19 Rental bonuses -19 RCA (Phillipsburg) -237 Substantial compliance -5 22 COAH-Certified Compliance report Ridge Oak Senior Rentals -39 Bethel Ridge Group Home -6 Rental bonuses -6 Matheny Group Home -6 Rental bonuses -6 RCA with South Bound Brook -4 Prior Rounds Surplus Units and Credits available toward third round growth share obligation: -45

Third Round Growth Share: 89 1. Prior rounds surplus credits Ridge Oak (age-restricted rentals): -45 44 2. Veterans for Hope alternative living arrangement facility (existing) -47 -3 3. Veterans for Hope alternative living arrangement facility (future) -12 Remaining 3rd Round Growth Share Obligation: -15

 Rental Obligation – 25% min. required of growth share: 23  Rental Units provided 3rd round 100%: 98  Age restricted – max. permitted 50% (44)  Age restricted provided 43% (39) 4. Growth share ordinance – may be adopted; development fee ordinance in effect. Inventory of Municipal Housing Conditions

The primary source of information for the inventory of the Township’s housing stock is the 2000 U.S. Census.

According to the 2000 Census, the Township had 9,485 housing units, of which 9,242 (97%) are 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. The Township consists primarily of one-family, detached dwellings (56% of the total, compared to 61% in the County), and single-family attached units (21%) there are 2,155 units in multi-family structures. The Township has a smaller percentage of renter-occupied units than the County, 13%, compared to 23% in Somerset County and 32% in the State.

Table 1: Units in Structure by Tenure Occupied Units Units in Structure Vacant Units Total Owner Renter 1, detached 94 5,204 5,003 201 1, attached 69 1,963 1,823 140 2 0 84 18 66 3 or 4 26 500 315 185 5+ 54 1,491 840 651 Other 0 0 0 0 Mobile home or trailer 0 0 0 0 Total 243 9,242 7,999 1,243 Source: 2000 U.S. Census, Summary Tape File 3 (STF-3) for Township, QT-H5 & 10.

Table 2 presents the data concerning the year housing units were built by tenure, while Table 3 compares the Township to Somerset County and the State. Approximately 61% of the owner-occupied units in the Township were built since 1980. The highest rate of renter-occupied units were also built between 1980 and 2000 (65%). Table 2: Year Structure Built by Tenure Occupied Units Vacant Units Year Built Total Owner Renter 1990-2000 101 3,305 2,930 375 1980-1989 52 2,395 1,962 433 1970-1979 19 816 617 199 1960-1969 29 1,129 1,066 63 1950-1959 18 603 567 36 1940-1949 0 350 274 76 Pre-1940 24 644 583 61 Source: 2000 U.S. Census, STF-3 for Township, QT-H7.

Table 3 compares the year of construction for all dwelling units in the Township to Somerset County and the State. The Township has a much larger percentage of units built between 1980 and 2000 than does the County or State, and a smaller percentage of units built for all previous years. This is exemplified in the median year built between the State, County and Township.

8 Table 3: Comparison of Year of Construction for Township, County, and State % Year Built Bernards Township Somerset County New Jersey 1990 – 2000 35.9 21.3 10.5 1980 – 1989 25.8 20.2 12.4 1970 – 1979 8.8 11.6 14.0 1960 – 1969 12.2 15.2 15.9 1950 – 1959 6.5 12.9 17.1 1940 – 1949 3.7 6.6 10.1 Pre-1940 7 12.4 20.1 Median Year 1985 1973 1962 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-4.

Information reported in the 2000 Census concerning occupancy characteristics includes the household size in occupied housing units by tenure, and the number of bedrooms per unit by tenure; this data is reported in Tables 4 and 5, respectively. Table 4 indicates that renter-occupied units generally house slightly smaller households, with 79% of renter-occupied units having 2 persons or fewer compared to 54% of owner- occupied units. Table 5 indicates that renter-occupied units generally have fewer bedrooms, with 84% having two bedrooms or fewer, compared to 28% of owner-occupied units.

Table 4: Household Size in Occupied Housing Units by Tenure Household Size Total Units Owner-occupied Units Renter-occupied Units 1 person 2,442 1,806 636 2 persons 2,829 2,487 342 3 persons 1,396 1,270 126 4 persons 1,646 1,557 89 5 persons 693 658 35 6 persons 181 170 11 7+ persons 55 52 3 Total 9,242 8,000 1,242 Source: 2000 U.S. Census, SF-3 for Township, H-17.

Table 5: Number of Bedrooms per Unit by Tenure Number of Total Units (%) Vacant Units Occupied Units Bedrooms Total Owner Renter No bedroom 70 .7 0 70 7 63 1 bedroom 849 9 35 814 408 406 2 bedrooms 2,454 25.9 65 2,389 1,814 575 3 bedrooms 2,285 24.1 74 2,211 2,099 112 4 bedrooms 2,819 29.7 69 2,750 2,684 66 5+ bedrooms 1,008 10.6 0 1,008 987 21 Source: 2000 U.S. Census, SF-3 for Township, QT-H8 and QT-H5.

9 Table 6 compares the Township's average household size for all occupied units, owner-occupied units, and renter-occupied units to those of the County and State. The Township's average household size for owner- occupied and renter-occupied units is lower than those of the State and County.

Table 6: Average Household Size for Occupied Units for Township, County, and State Jurisdiction All Occupied Units Owner-occupied units Renter-occupied units Bernards Township 2.58 2.69 1.87 Somerset County 2.69 2.78 2.36 New Jersey 2.68 2.81 2.43 Source: 2000 U.S. Census, SF-1 for Township, County, and State, DP-1. The distribution of bedrooms per unit, shown in Table 7, indicates that the Township contains dramatically more four or more bedroom units than the County or State and fewer none to three bedroom units than either the County or State.

Table 7: Percentage of All Units by Number of Bedrooms Jurisdiction None or one Two or Three Four or More Bernards Township 9.7 50 40.3 Somerset County 12.7 54.2 33.2 New Jersey 18.3 59.2 22.6 Source: 2000 U.S. Census, SF-3 for Township, County, and State, QT-H4.

In addition to data concerning occupancy characteristics, the 2000 Census includes a number of indicators, or surrogates, which relate to the condition of the housing stock. These indicators are used by the Council on Affordable Housing (COAH) in calculating a municipality's deteriorated units and indigenous need. In the first Two Rounds of COAH’s fair share allocations (1987-1999), COAH used seven indicators to calculate indigenous need: age of dwelling; plumbing facilities; kitchen facilities; persons per room; heating fuel; sewer; and, water. In the proposed Round Three rules, COAH has reduced this to three indicators, which in addition to age of unit (Pre-1940 units in Table 2), are the following, as described in COAH's rules.

Plumbing Facilities Inadequate plumbing is indicated by either a lack of exclusive use of plumbing or incomplete plumbing facilities.

Kitchen Facilities Inadequate kitchen facilities are indicated by shared use of a kitchen or the non-presence of a sink with piped water, a stove, or a refrigerator.

Table 8 compares the Township, County, and State for the above indicators of housing quality. The Township has fewer units with inadequate kitchen or plumbing and fewer overcrowded units than the County or State.

Table 8: Housing Quality for Township, County, and State % Condition Bernards Township Somerset County New Jersey Overcrowding .9 3.5 5 Inadequate plumbing 1 .1 .4 .7 Inadequate kitchen 1 .1 .5 .8 Notes: 1The universe for these factors is all housing units. Source: 2000 U.S. Census, SF-3 for Township, County, and State QT-H4.

The last factors used to describe the municipal housing stock are the values and rental values for residential units. With regard to values, the 2000 Census offers a summary of housing values. This data is provided in

10 Table 9 and indicate that 69% of all residential properties in the Township are valued over $300,000 with a median housing value of $380,500.

11 Table 9: Value of Owner Occupied Residential Units Value Number of Units % $0 – 50,000 30 .5 $50,000 – 99,999 32 .5 $100,000 – 149,999 151 2.3 $150,000 – 199,999 513 7.8 $200,000 – 299,999 1315 20.1 $300,000 – 499,999 2666 40.7 $500,000 – 999,999 1629 24.9 $1,000,000 + 212 3.2 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-4.

The data in Table 10 indicate that a majority of housing units (73%) rent for over $1,000/month with the largest percentage, 46.2%, found over $1,500 per month.

Table 10: Gross Rents for Specified Renter-Occupied Housing Units1 Monthly Rent Number of Units % Under $200 58 4.8 $200 – 299 78 6.4 $300 – 499 59 4.9 $500 – 749 77 6.3 $750 – 999 56 4.6 $1,000 – 1,499 240 19.8 $1,500 or more 561 46.2 No Cash Rent 84 6.9 Note: Median gross rent for Bernards Township is $1,494. Source: 2000 U.S. Census, SF-3 for Township, QT-H12.

The data in Table 11 indicate that there are 405 renter households with an income less than $35,000 annually. At least 233 of these households are paying more than 30% of their income for rent; a figure of 30% is considered the limit of affordability for rental housing costs.

12 Table 11: Household Income in 1999 by Gross Rent as a Percentage of Household Income in 19991

Percentage of Household Income Number of Income Households 0 – 19% 20 – 24% 25 – 29% 30 – 34% 35% + Not computed < $10,000 101 6 0 23 23 31 18 $10,000 – 177 16 32 12 29 80 8 19,999 $20,000 – 127 18 12 18 18 52 9 34,999 $35,000 + 808 290 107 74 91 191 55 Note: 1The universe for this Table is specified renter-occupied housing units. Source: 2000 U.S. Census, SF-3 for Township, QT-H13.

13 Analysis of Demographic Characteristics

As with the inventory of the municipal housing stock, the primary source of information for the analysis of the demographic characteristics of the Township's residents is the 2000 U.S. Census. The data collected in the 2000 Census provide a wealth of information concerning the characteristics of the Township's population.

The 2000 Census indicates that the Township has 24,574 residents, or 7,375 more residents than in 1990, a 43% increase. The Township's 43% increase in the 1990's compares to a 24% increase in Somerset County and an 8% increase in New Jersey.

The age distribution of the Township's residents is shown in Table 12. The Township’s male population is predominant in younger age groups from 0-19 with females being predominant in all other groups.

Table 12: Population by Age and Sex Age Total Persons Male Female 0-4 1,962 1,002 960 5 – 19 5,113 2,657 2,456 20 – 34 3,064 1,424 1,640 35 – 54 9,032 4,318 4,714 55 – 69 3,103 1,549 1,554 70 + 2,301 995 1,306 Total 24,574 11,945 12,630 Source: 2000 U.S. Census, SF-1 for Township, QT-P1.

Table 13 compares the Township to the County and State for the same age categories. The principal differences among the Township, County, and State occur in the 0-4, 5-19 and 35- 54 where the Township has more population than the County or State. However the Township has fewer persons in the 20-34 age groups than the County and State.

14 Table 13: Comparison of Age Distribution for Township, County, and State (% of persons) Age Bernards Township Somerset County New Jersey 0-4 8 7.5 6.7 5 – 19 20.8 19.8 20.4 20 – 34 12.4 18.4 19.9 35 – 54 36.7 34.4 30.9 55 – 69 12.6 11.9 12.4 70 + 9.3 8.2 9.7 Median 39.2 37.2 36.7 Source: 2000 U.S. Census, SF-1 for Township, County, and State QT-P1.

Table 14 provides the Census data on household size for the Township, while Table 15 compares household sizes in the Township to those in Somerset County and the State. The Township differs from the County and State in terms of the distribution of household sizes by having a higher number of households with one person and fewer 3 person households.

Table 14: Persons in Household Household Size Number of Households 1 person 2,442 2 persons 2,829 3 persons 1,396 4 persons 1,646 5 persons 693 6 persons 181 7 or more persons 55 Source: 2000 U.S. Census, STF-1 for Township, QT-P10.

15 Table 15: Comparison of Persons in Household for Township, County, and State (% of households) Household Size Bernards Township Somerset County State 1 person 26.4 22.8 24.5 2 persons 30.6 31.1 30.3 3 persons 15.1 17.5 17.3 4 persons 17.8 17.5 16 5 persons 7.5 7.4 7.5 6 persons 2 2.4 2.7 7 or more persons .6 1.2 1.7 Persons per household 2.58 2.69 2.68 Source: 2000 U.S. Census, SF-1 for Township, County, and State, QT-P10.

Table 16 presents a detailed breakdown of the Township’s population by household type and relationship. There are 6,484 family households in the Township and 2,758 non-family households; a family household includes a householder living with one or more persons related to him or her by birth, marriage, or adoption, while a non-family household includes a householder living alone or with non-relatives only. In terms of the proportion of family and non-family households, the Township has fewer family households than the State (70.2% for the Township, 72.3% for the County, and 70.3% for the State).

Table 16: Persons by Household Type and Relationship Total In family Households: 6,484 Married Couples 5,821 Child 3,538

In Non-Family Households: 2,758 Male householder: 943 Living alone 769 Not living alone 174 Female householder: 1,815 Living alone 1,673 Not living alone 142

In group quarters: 746 Institutionalized: 641 Non-institutionalized 105 Source: 2000 U.S. Census, SF-3 for Township, QT-P11 and QT-P12.

Table 17 provides 1999 income data for the Township, County, and State. The Township’s per capita and median incomes are higher than those of the State and County for household income. The definitions used for households and families in Table 17 are similar to those identified in the description of Table 16, so that the households figure in Table 17 includes families.

16 Table 17: 1999 Income for Township, County, and State Per Capita Median Income (Dollars) Jurisdiction Income Households Families (Dollars) Bernards Township 56,521 107,204 135,806 Somerset County 37,970 76,933 90,605 New Jersey 27,006 55,146 65,370 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-3.

Table 18 addresses the lower end of the income spectrum by providing data on poverty levels for persons and families. The determination of poverty status and the associated income levels is based on the cost of an economy food plan and ranges from an annual income of $8,501 for a one-person household to $28,967 for an eight-person family for the year 1999. According to the data in Table 18, the Township proportionally has less persons and families qualifying for poverty status than do the County and State. However, the percentages in Table 18 translate to 319 persons and 37 families in poverty status. Thus, the non-family households have a larger share of the population in poverty status.

Table 18: Poverty Status for Persons and Families for Township, County, and State (% with 1999 income below poverty) Jurisdiction Persons (%) Families (%) Bernards Township 1.3 .6 Somerset County 4.7 3.2 New Jersey 8.5 6.3 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-3.

The U.S. Census includes a vast array of additional demographic data that provides insights into an area's population. For example, Table 19 provides a comparison of the percent of persons who moved into their homes between the years 1995-1998; this is a surrogate measure of the mobility/stability of a population. The data indicate that the percentage of Township residents residing in the same house as in 1995 is more than that of the County and State.

Table 19: Comparison of 1995 Place of Residence for Township, County, and State Jurisdiction Percent living in same house in 1995 Bernards Township 49.2 Somerset County 31 New Jersey 27.7 Source: 2000 U.S. Census, SF-3 for Township, County, and State, QT-H7.

Table 20 compares the educational attainment for Township, County, and State residents. The data indicates that Township resident’s exceeds the County and State for residents in educational attainment.

17 Table 20: Educational Attainment for Township, County, and State Residents (Persons 25 years and over) Jurisdiction Percent (%) high school graduates Percent (%) with bachelor’s degree or higher or higher Bernards Township 95.8 67.4 Somerset County 89.6 46.5 New Jersey 82.1 29.8 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-2.

The 2000 Census also provides data on the means of transportation which people use to reach their place of work. Table 21 compares the Census data for the Township, County, and State relative to driving alone, carpooling, using public transit, and using other means of transportation. The Township has a relatively high percentage of those who drive alone, and a relatively low percentage of workers who carpool or use public transit. Of the 6.4% of workers who reside in the Township and use other means of transportation to reach work, 623 workers work at home and 83 workers walk to work.

Table 21: Means of Transportation to Work for Township, County and State Residents (Workers 16 years old and over) Jurisdiction Percent who Percent in carpools Percent using public Percent using other drive alone transit means Bernards Township 83 5 5.6 6.4 Somerset County 81.7 8 4.1 6.3 New Jersey 73 10.6 9.6 6.7 Source: 2000 U.S. Census, SF-3 for Township, County, and State, DP-3.

18 Projection of Municipal Housing Stock and Employment

As part of the mandatory contents of a housing element, the Township is required to produce “a projection of the municipality’s housing stock, including the probable future construction of low and moderate income housing, for the next six years, taking into account, but not necessarily limited to, construction permits issued, approvals of applications for development and probable residential development of lands.” (N.J.S.A. 52:27D-310b.) The Township is also to provide “an analysis of the existing and probable future employment characteristics of the community.” (N.J.S.A. 52:27D-310d) In COAH’s First Round (1987-1993), COAH used employment data, in terms of how many people worked within a municipal border, as an allocation factor for its affordable housing need allocations. In the Second Round (1993-1999) COAH changed this allocation factor to the value of non-residential ratables. Now in the proposed Third Round rules COAH is using the growth in non-residential jobs as a component of the growth share formula for the determination of a municipality’s affordable housing obligation.

The reasons for which COAH has changed this allocation factor from employment to non-residential valuation are the methodological problems of using employment data. The New Jersey Department of Labor compiles data on the number of people working within a municipality’s borders from unemployment insurance forms filed by employers; thus, only private sector employees are reported, and only those covered by their employers for unemployment insurance. In addition, the data is compiled by the zip code address of the firm, which may not reflect the actual geographic location of employment. For example, if a business has more than one location, its total employment is allocated to only the location listed on the unemployment insurance form. Also, many businesses use mailing addresses in perceived prestigious communities, even though the actual facility is located in another municipality. As a result, the data is fraught with uncertainty.

In accordance with COAH’s third round rules, the following tables identify the current and future development of the Township in order to determine Bernards’ third round affordable housing growth share, based upon actual and projected residential and non residential certificates of occupancy issued between January 1, 2004 and January 1, 2014.

19 APPENDIX A

RESIDENTIAL GROWTH SHARE

Table R1: NJTPA Residential Growth Projection

2015 2005 Household NJTPA - NJTPA = Growth Households Households 10,440 - 10,220 = 220

Table R2: Ten-year Historic Trend of Residential Certificates of Occupancy and Demolition Permits 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 CO’s Issued 183 555 510 357 260 224 146 181 43 26 Demolitions 3 1 2 2 5 5 14 7 9 18 Net 180 554 508 355 155 219 132 174 34 8

Table R3: Net Actual Residential Growth 2004 Actual CO’s Issued 26 Demolitions 18 Net Actual Growth 8

20 Table R4: Anticipated Developments & Number of Residential Units Based on CO’s Minus Demolitions (2005 – 2013) Total COs 2005 - 2013

Approved Development Applications

Bernards Estates (Precision Devel.) 3

Bocina Homes Corp/Nargiello 3

Bocina Homes Corp (So Finley Ave) 6

Cocuzza/Hobbs 1 Colts Glen 1 Deer Ridge 2 1

Emerald Valley (Emerald Glen) 13

Emerald Valley at Warren, LLC 3 HMC Homes, LLC 3 Kenworthy Beneficiaries, LLC 3

Menza/Beissel (Van Cortland Way) 5

Millington Quarry, Inc. 3 (Overlook Avenue Site) Millington Quarry, Inc. 9 (Pond Hill Road Site) Millington Quarry, Inc. 8 (South Maple Avenue Site) Millington Quarry, Inc. 3 (Stonehouse Road Site) Pacer Estates 1 Perimeter (So. Finley Ave) 2 Pheasant Crossing (Durkin) 7 Prince Edward Pointe 2 Ravenswood Estates 2 Rica Properties, LLC 2 Accettura –Meeker Rd 1 Beaudry - Lyons Pl 1 Bedrosian - Chelsea Ct 1 Buccine - Mine Brook Rd 1 Caruso - Canoe Brook Ln 1 Carbone/Sitter - Cherry Ln 1 Connor - Royal Oak Dr 1

21 Cox So. - Finley Ave 1 Early - Somerville Rd 1 Gill - Douglas Rd 1 Kenworthy - Liberty Corner Rd 1 Lackey - Pond Hill Rd 1 Merkle/Bartz - Whitenack Rd 1 Michinard - Lyons Pl 1 Nacheman - Meeker Rd 1

Perimeter Properties - Sunset Ln 1

Picone - Long Rd 1 Seidel - Madisonville Rd 1 Sopko - Sunset Ln 1 TIFA - Pond Hill Rd 1 Turner - Madisonville Rd 1 Wicks - Fawn Ln 1 Wolk - No. Finley Ave 1 Zahos - Martinsville Rd 1 Zeik - Mine Brook Rd 2

Boulder Construction - Grove Rd 1

Giuliano - Milito Way 1 Maolucci - Mountain Rd 1 Pending Development Applications Treich, Edward 1 Berman, Lois 1 Lahoff-Gerhard, Carolyn 1 Ellis, Betsy 3 Cangiano 12 Hirsch, John 4 Winter, John 7 Nahm, Eric 1 Milito, James and Jean 7 Pinson, Ellen 4 English Farm Associates 15 Wagner, William 3 Gorczyinski/Washburn 3 Moye, William 1 Anderson, Edward & Marie 13 Heathermede Corp. 8 Prochaska, Doreen T. 4 Maolucci, P. Vincent 4 Other Projected Development (e.g., single lot dev) 0 Development Sub Total 202 22 Anticipated Demolitions 12 Net Projected Development TOTAL 190

Table R5: Total Net Residential Growth (Sum of Actual and Projected Growth) January 1, 2004 to January 1, 2014 Net ACTUAL Net PROJECTED Total Net Residential Growth + Residential Growth (Table = Residential Growth (Table R3) R4) 8 + 190 = 198

Table R6: Second Round Affordable and Market-Rate Units in Inclusionary Developments To Be Excluded from Growth Projection Total Total Units Total Market Affordable TOTAL UNITS Development Name in Rate Units Units EXCLUDED Development Excluded Excluded Hills 4 4 TOTAL 4

Table R7: Net Residential Growth Projections After Subtracting Second Round Affordable and Inclusionary Market-Rate Units Total Net Residential Growth (Table R5) 198 Minus Second Round Units (Table R6) 4 Final Net Residential Growth 194

Table R8: Residential Growth Share Projection Total Table R7 Total 194 Residential Growth Share Obligation 21.56

NON-RESIDENTIAL GROWTH SHARE OBLIGATION

23 Table NR1: NJTPA Non-Residential Growth Projection 2015 NJTPA 2005 NJTPA Employment - = Employment Employment Change 18,520 - 16,420 = 2,100

Table NR2: Ten-year Historic Trend of Certificates of Occupancy and Demolition Permits by Square Feet 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sq Ft Sq Ft. Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft COs Issued 12,392 15,447 8,512 3,770 86,963 9,224 223,275 54,814 4,676 B - Office COs Issued M - Retail 2,470 0 0 0 0 0 0 13,469 0 COs Issued A-1 - Assembly 0 0 0 1,958 628 0 0 0 0 COs Issued A-3 - Assembly 44,400 7,227 0 0 0 0 0 27,284 0 COs Issued A-4 - Assembly 0 0 0 0 0 15,300 0 10,785 0 COs Issued R-1 - 202,238 0 0 5,357 72,061 0 127,405 525 0 Dormitories COs Issued Education 0 24,166 0 0 0 1,528 13,100 0 0 COs Issued 45,120 0 0 0 0 230 129,479 12,000 9,063 Institutional COs Issued 0 0 9,998 0 0 0 0 2,304 2,608 S - Storage COs Issued H - Hazardous 2,991 2,274 0 0 0 0 0 0 0 Demolitions 0 0 4 4 0 4 1 0 0 B - Office Demolitions M - Retail 0 0 0 0 1 0 0 0 0 Demolitions A-3 - Assembly 0 0 0 0 0 0 0 1 0 Demolitions I- Institutional 0 0 0 0 0 1 0 1 0 Demolitions R1 – Motel 0 0 0 0 0 5 0 0 0

24 Table NR3: “B” USE GROUP: Actual Developments by Year that CO’s Were Issued (3 jobs/1,000 sq ft) 2004 Total Jobs (Sq Ft) Total New Development 4,676 14.03 Total Demolitions 0 0 NET GROWTH (Office) 4,676 14.03

Table NR4: “Insitutional” USE GROUP: Actual Developments by Year that CO’s Were Issued (2 jobs/1,000 sq ft) 2004 Total Jobs (Sq Ft) Total New Development 9,063 18.13 Total Demolitions 0 NET GROWTH (Warehouse) 9,063 18.13

Table NR5: “S” USE GROUP: Actual Developments by Year that CO’s Were Issued (.2 jobs/1,000 sq ft) 2004 Total Jobs (Sq Ft) Total New Development 2,608 .52 Total Demolitions 0 0 NET GROWTH (Warehouse) 2,608 .52

Table NR6: Summary Table Total Actual Growth (in jobs), 2004 Jobs Net Jobs – B (Table NR3) 14.03 Net Jobs – I (Table NR4) 18 Net Jobs – S (TableNR5) .52 TOTAL NET GROWTH for 2004 32.55

25 Table NR7: “B” USE GROUP: Developments and Anticipated Developments based on CO’s Anticipated to be Issued January 1, 2005 to January 1, 2014 (3 jobs/1,000 square feet) Total Jobs (Sq. Ft.) Approved Development Applications Cross 3,857 11.57 Mountain View (Building E) 212,065 636.20 Mountain View (Building F) 131,900 395.70 Trevcon 2,907 8.72 Visiting Nurse 13,835 41.51 Pending Development Applications 0 0 Anticipated Development 0 0 Applications Other Projected Development Peroni 11,194 33.58 TOTAL NEW DEVELOPMENT 375,758 1,127.28 TOTAL DEMOLITIONS 0 0 NET GROWTH (Office) 375,758 1,127.28

Table NR8: “M” USE GROUP: Developments and Anticipated Developments Based on CO’s Anticipated to be Issued January 1, 2005 to January 1, 2014 (1 job/1,000 sq ft) Total Jobs (Sq. Ft.) Approved Development Applications Mountain View (Building A) 17,000 17 Anticipated Development Applications 0 0 Other Projected Development 0 0 TOTAL NEW DEVELOPMENT 17,000 17 TOTAL DEMOLITIONS 0 0 NET GROWTH (Retail) 17,000 17

Table NR19: “A-2” USE GROUP: Developments and Anticipated Developments Based on CO’s Anticipated to be Issued January 1, 2005 to January 1, 2014 (3 jobs/1,000 sq ft) Total Jobs (Sq. Ft.) Approved Development Applications Mountain View (Building A Rest.) 17,000 51 Pending Development Applications 0 0 Anticipated Development Applications 0 0 TOTAL NEW DEVELOPMENT 17,000 51 TOTAL DEMOLITIONS 0 0 NET GROWTH (Assembly) 17,000 51

26 Table NR10: “A-3” USE GROUP: Developments and Anticipated Developments Based on CO’s Anticipated to be Issued January 1, 2005 to January 1, 2014 (3 jobs/1,000 sq ft) Total Jobs (Sq. Ft.) Approved Development Applications Somerset YMCA (Phase 1) 27,036 81.11 Somerset YMCA (Phase 2) 12,150 36.45 Pending Development Applications 0 0 Anticipated Development Applications 0 0 TOTAL NEW DEVELOPMENT 39,186 117.56 TOTAL DEMOLITIONS 0 0 NET GROWTH (Assembly) 39,186 117.56

Table NR11: “Institutional” USE GROUP: Developments and Anticipated Developments Based on CO’s Anticipated to be Issued January 1, 2005 to January 1, 2014 (2 jobs/1,000 sq ft) Total Jobs (Sq. Ft.) Approved Development Applications Mountain View (Building D) 162,290 324.58 Pending Development Applications 0 0 Anticipated Development Applications 0 0 TOTAL NEW DEVELOPMENT 162,290 324.58 TOTAL DEMOLITIONS 0 0 NET GROWTH (Assembly) 162,290 324.58

Table NR12: Summary Table Total Projected Growth (in jobs), January 1, 2005 to January 1, 2014 Jobs Net Jobs – Office (Table NR7) 1,127.28 Net Jobs – Retail (Table NR8) 17.00 Net Jobs – A-2 (Table NR9) 51.00 Net Jobs – A-3 (Table NR10) 117.56 Net Jobs – Institutional (Table NR11) 324.58 TOTAL PROJECTED NET GROWTH 1,637.42

Table NR13: Total Net Non-Residential Growth in Jobs (Sum of Actual and Projected Growth) January 1, 2004 to January 1, 2014 Net ACTUAL Non- Net PROJECTED Non- Total Net Non- Residential Growth + Residential Growth (Table Residential Growth = (Table NR6) NR12) (in jobs) 32.55 + 1,637.42 = 1,669.97

27 Table NR14: Affordable Housing Unit Obligation Generated by Non-Residential Development Total Table NR12 Total 1,669.97 Divided by 25 66.80

TOTAL PROJECTED AFFORDABLE HOUSING OBLIGATION

Table T1: Total Projected Affordable Housing Obligation Generated by Residential and Non-residential Development 2004-2014 Total Table R8 Residential 21.56 Table NR14 Non-Residential 66.80 88.36 Total Or 89

FAIR SHARE PLAN

Bernards Township’s Fair Share Plan for COAH’s 3rd housing cycle is a combination of round obligation is comprised of the following:

1. Rehabilitation Obligation; 2. Remaining Prior Rounds Obligation (if any); and 3. Third Round Growth Share Obligation:

The Township has had no rehabilitation obligation assigned for the third round. The Township’s affordable housing production under the prior rounds has resulted in 45 surplus units and credits that may be applied to the Township’s third round growth share obligation including 39-units of surplus units in the form of age-restricted rental housing (Ridge Oak). The Third Round Growth Share Obligation has been determined to be 89 units. Thus, after applying 45-units of credits from affordable age-restricted rental housing from the prior rounds to the third round growth share, there remains a 44-unit obligation to be addressed as the third round obligation.

CUMULATIVE PRIOR ROUND AND THIRD ROUND OBLIGATION: 597 UNITS The total 3rd round obligation is comprised of:

28  508 units - recalculated prior round (unchanged from prior obligation)  0 units - rehabilitation  89 units - growth share 597 units total

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 each 8 market units and for each 25 new jobs after that date. COAH’s Third Round rules utilize household and job forecasts prepared by Metropolitan Planning Organizations to calculate growth share, and compare these numbers to locally derived estimates based on approved or expected growth (all estimates rounded up).

MPO Growth Share Obligation: Residential growth share: 220 ÷ 9 = 24.44 affordable housing units Nonresidential growth share: 2100 ÷ 25 = 84 affordable housing units Total Growth Share: 24.44+84= 108.44 or 109 affordable housing units

The lower locally-derived growth share estimate has been utilized in calculating the Third Round obligation. This projection is based upon a buildout calculation of all remaining undeveloped lands in the Township in accordance with local zoning. This buildout calculation does not anticipate growth that could result if zoning were changed in accordance with current Master Plan recommendations, which calls for reductions in permitted residential density. Similarly, the buildout calculation relies upon existing nonresidential zoning and approved nonresidential development on remaining undeveloped nonresidentially zoned lands. Thus, the buildout is a more reliable indicator of growth that may occur in the Township during COAH’s third affordable housing cycle than the MPO projection, which does not take into account a lot-by-lot analysis of existing undeveloped lands taking into account zoning in effect on these lands. These projections are listed in the tables provided above.

In summary, the recalculated prior round obligation for Bernards Township decreased, since the 44-unit rehabilitation component was eliminated in the Third Round. However the remainder of the prior round obligation is unchanged, at 508 units. Added to this recalculated number is a growth share obligation to provide an additional 89 affordable units based upon anticipated new residential development and job creation. These elements combine to create a cumulative affordable housing obligation for Bernards Township of 597 affordable units and/or credits for the period 1987-2013.

COAH-CERTIFIED 2ND ROUND CREDITS: 591 UNITS AND CREDITS

The Amended Substantive Certification issued by COAH (9-05-01) cites a 552-unit 12-year cumulative obligation (1987-1999; consisting of 508 new construction and 44 rehabilitation units), and acknowledges the following compliance elements:

COAH-Certified Credits and Reductions Society Hill (for sale) 100 The Cedars (for sale) 106 Crown Court (family rentals) 19 + rental bonuses 19 RCA with Phillipsburg 237 (of which 48 were rentals) Substantial Compliance -5 486 486

COAH-Certified Compliance Plan Ridge Oak Senior Rentals 39 Bethel Ridge Group Home 6 + rental bonuses 6 Matheny Group Home 6 29 + rental bonuses 6 Rehabilitation Program 44 RCA with So. Bound Brook 4 105 units 105 591 units and credits

Bernards Township’s Third Round Fair Share Plan:

Rehabilitation Obligation: 0

Third Round Growth Share: 89 5. Prior rounds surplus credits Ridge Oak (age-restricted rentals): -45 44 6. Veterans for Hope alternative living arrangement facility (existing) -47 -3 7. Veterans for Hope alternative living arrangement facility (future) -12 Remaining 3rd Round Growth Share Obligation: -15

Rental Obligation – 25% minimum required of growth share: 23 Rental Units provided 3rd round 100%: 89

8. Growth share ordinance – may be adopted; development fee ordinance in effect.