NY State Senate Bill 2025-S6958

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 27, 2025	referred to housing, construction and community development

2025-S6958 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Public Housing Law
Laws Affected:: Add Art 16 §§700 - 723, Pub Hous L; add §99-ss, St Fin L

2025-S6958 (ACTIVE) - Summary

Enacts the New York fair housing act to require municipalities to take affirmative steps to address the creation and maintenance of affordable housing.

2025-S6958 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6958

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the public housing law and the state finance law, in
relation to enacting the New York fair housing act

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure equitable access to affordable housing by requiring all muni-
cipalities to meet their fair share of regional housing needs, address-
ing the critical affordable housing shortage in New York State, and
promoting sustainable and inclusive housing development practices.

 
SUMMARY OF PROVISIONS:

Section 1 establishes the short title of the act as the "New York Fair
Housing Act."

Section 2

*Amends the public housing law by adding a new Article 16 which intro-
duces fair share housing obligations for municipalities based on
regional housing needs.

*Establishes the Affordable Housing Committee to determine regional and
municipal fair share housing obligations on a 10-year cycle.

*Requires municipalities to adopt housing elements and fair share plans,
which must include zoning and planning measures to address current and
future housing needs.

*Requires annual reporting requirements for municipalities and penalties
for noncompliance, such as loss of immunity from exclusionary zoning
litigation.

*Introduces compliance mechanisms, including the Builder's Remedy, which
permits developers to bypass local zoning restrictions in cases of
municipal noncompliance, and the Affordable Housing Dispute Resolution
Program to resolve disputes.

*Authorizes the Attorney General to file actions against municipalities
that fail to meet fair share obligations or violate compliance certif-
ications.

*Mandates that new construction meeting housing obligations adhere to
accessibility requirements as defined in state law.  go Includes specif-
ic restrictions, such as prohibiting municipalities from using the demo-
lition of certain residential structures to meet fair share obligations.

*Specifies that municipalities may use development fees collected from
non-residential or residential projects to support affordable housing
efforts, but only under approved spending plans.

Section 3



*Amends the state finance law to create the New York Affordable Housing
Trust Fund, which is established under the joint custody of the Comp-
troller and the Commissioner of Housing and Community Renewal.

*Specifies that revenues for the trust fund will be collected from
penalties levied against noncompliant municipalities and other appropri-
ated or transferred funds.

*Provides that funds will be used to finance affordable housing
projects. The Commissioner is responsible for awarding grants or loans
and may establish rules governing eligibility, application procedures,
and conditions for funding.

Section 4 establishes the effective date.

 
JUSTIFICATION:

New York State is grappling with a severe housing shortage, with the
National Low Income Housing Coalition estimating a shortage of over
666,000 affordable housing units in New York State. This crisis has
exacerbated economic inequality and limited opportunities for families
across the state. The New York Fair Housing Act draws upon proven models
from states such as New Jersey and California to create a comprehensive
framework for addressing affordable housing needs while balancing local
autonomy with state-level accountability.

The New York Fair Housing Act utilizes municipal and regional affordable
housing obligations to ensure a fair distribution of affordable housing.
The bill allows municipalities to determine their own zoning regulations
within the framework of their fair share obligations, providing flexi-
bility to municipalities in how they achieve compliance.

The bill includes mechanisms for ensuring compliance and accountability
such as the Builder's Remedy and the Affordable Housing Dispute Resol-
ution Program. The bill also establishes the "New York Affordable Hous-
ing Trust Fund," providing a mechanism to financially support affordable
housing development.

The New York Fair Housing Act addresses key social, economic, and envi-
ronmental objectives by fostering diverse and inclusive communities,
reducing housing instability, addressing the rising cost of living, and
promoting sustainable development practices. Meeting affordable housing
needs across all regions of the state is critical to attracting a
diverse workforce, supporting local economies, and reducing the long-
term societal costs associated with homelessness and housing insecurity.
This bill represents a transformative step toward addressing New York's
housing crisis in a comprehensive, equitable, and sustainable manner.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect 180 days after becoming law.

2025-S6958 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6958
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the public housing law and the state finance law, in
   relation to enacting the New York fair housing act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York fair housing act".
   § 2. The public housing law is amended by adding a new article  16  to
 read as follows:
                                 ARTICLE XVI
                         NEW YORK FAIR HOUSING ACT
 SECTION 700. LEGISLATIVE FINDINGS AND INTENT.
         701. DEFINITIONS.
         702. HOUSING REGIONS.
         703. AFFORDABLE HOUSING COMMITTEE.
         704. FAIR HOUSING OBLIGATIONS.
         705. MUNICIPAL HOUSING ELEMENT AND FAIR SHARE PLAN.
         706. MUNICIPAL HOUSING ELEMENT; CONTENTS.
         707.  CALCULATION  OF  AVAILABLE  LAND FOR MUNICIPAL ADJUSTMENT;
                CERTAIN LAND EXCLUDED.
         708. MUNICIPAL HOUSING ELEMENT; TECHNIQUES  FOR  PROVIDING  FAIR
                SHARE OF LOW AND MODERATE INCOME HOUSING.
         709. ACCESSIBILITY REQUIREMENT FOR NEW CONSTRUCTION.
         710. PROHIBITION OF DEMOLITION OF CERTAIN RESIDENTIAL STRUCTURES
                FOR FAIR HOUSING PURPOSES.
         711.  MUNICIPALITIES; PROVISION FOR PURCHASE OF CERTAIN RESIDEN-
                TIAL PROPERTY.
         712. CERTIFICATION OF HOUSING ELEMENT.
         713. AFFORDABLE HOUSING DISPUTE RESOLUTION PROGRAM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01029-01-5

 S. 6958                             2
 
         714. AFFORDABLE HOUSING PROGRAMS.
         715. ALLOCATION OF FEDERAL LOW-INCOME TAX CREDITS.
         716. ANNUAL REPORT ON ACTIVITIES PROMOTING AFFORDABLE HOUSING.
         717.  ADMINISTRATION  OF  ONLINE  PORTAL  FOR AFFORDABLE HOUSING
                LISTINGS AND SEARCHES.
         718. MARKETING OF AFFORDABLE HOUSING  UNITS;  POSTING;  LOTTERY;
                PROOF OF LISTING; PENALTIES FOR NONCOMPLIANCE.
         719.  CONTRACTUAL  AGREEMENTS  WITH  WILLING  MUNICIPALITIES  OR
                DEVELOPERS  OF  INCLUSIONARY  DEVELOPMENTS  FOR  ADMINIS-
                TRATION OF RESALE AND RENT CONTROLS.
         720.  PURCHASE,  LEASE  OR ACQUISITION BY GIFT OF REAL PROPERTY;
                ACQUISITION, CONSTRUCTION AND  MAINTENANCE  OF  BUILDINGS
                AND STRUCTURES; PRIVATE SALE OR LEASE BY MUNICIPALITY.
         721. COORDINATION AND REVIEW OF HOUSING ELEMENTS; RESERVATION OF
                HOUSING  UNITS  MADE AVAILABLE FOR OCCUPANCY BY VERY LOW-
                INCOME HOUSEHOLDS.
         722. COLLECTION AND EXPENDITURE OF AFFORDABLE  HOUSING  DEVELOP-
                MENT FEES BY MUNICIPALITIES; EXCLUSION FROM COLLECTION.
         723.  STATUS REPORT CONCERNING PETITIONS FOR SUBSTANTIVE CERTIF-
                ICATION; HOUSING UNIT INFORMATION; FAIR SHARE PLAN INFOR-
                MATION.
   § 700. LEGISLATIVE FINDINGS  AND  INTENT.  NEW  YORK  STATE'S  HOUSING
 PRODUCTION  HAS BEEN INSUFFICIENT TO MEET GROWING DEMAND DUE TO POLICIES
 THAT SEVERELY LIMIT CONSTRUCTION OF HOUSING.  THE  NATIONAL  LOW  INCOME
 HOUSING  COALITION  ESTIMATES  THAT  NEW  YORK HAS A SHORTAGE OF 656,000
 HOUSING UNITS. THE LEGISLATURE FINDS THAT THIS  SHORTAGE  OF  AFFORDABLE
 HOUSING  IS AN EMERGENCY. IT HAS MADE NEW YORK UNAFFORDABLE TO MILLIONS,
 SLOWED ECONOMIC  GROWTH,  FUELED  GENTRIFICATION,  LIMITED  INDIVIDUALS'
 FREEDOM TO CHOOSE WHERE THEY LIVE, AND ENTRENCHED RACIAL SEGREGATION AND
 INEQUALITY.
   THE  MOUNT  LAUREL  DECISIONS  BY  THE  NEW  JERSEY  SUPREME COURT, S.
 BURLINGTON COUNTY N.A.A.C.P. V MOUNT LAUREL TP., 67 NJ 151, 336 A2D  713
 (1975)  AND  S.  BURLINGTON  COUNTY N.A.A.C.P. V MOUNT LAUREL TP., 92 NJ
 158, 456 A2D 390 (1983), A  PRODUCT  OF  THE  COMMENDABLE  CIVIL  RIGHTS
 ACTIVISM  OF  ETHEL LAWRENCE, DECLARED THAT EACH MUNICIPALITY MUST BUILD
 ITS FAIR SHARE OF THE AFFORDABLE HOUSING UNITS NEEDED IN THE REGION. NEW
 YORK SEEKS TO EMULATE THIS JUSTICE-BASED, ECONOMICALLY AND MORALLY SOUND
 APPROACH TO HOUSING.
   NEW JERSEY'S FAIR HOUSING ACT, A RESULT OF THE MOUNT LAUREL DECISIONS,
 HAS PROVED TO BE AN EFFECTIVE TOOL THAT BALANCES LOCAL AUTONOMY WITH THE
 REGION'S HOUSING NEEDS. IT HAS ALLOWED FOR THE CONSTRUCTION OF  AFFORDA-
 BLE HOUSING IN NEW JERSEY AT A FAR HIGHER RATE THAN NEW YORK.
   RECOGNIZING  THE EFFECTIVENESS OF THIS MODEL IN OUR NEIGHBORING STATE,
 THE LEGISLATURE FINDS THAT ADOPTING IT WILL SERVE AS A CRUCIAL  TOOL  TO
 ADDRESSING NEW YORK'S AFFORDABILITY CRISIS.
   § 701. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "ACCESSIBLE"  MEANS  CONSTRUCTED IN COMPLIANCE WITH ALL APPLICABLE
 ACCESSIBILITY PROVISIONS OF THE NEW YORK STATE UNIFORM  FIRE  PREVENTION
 AND  BUILDING  CODE,  AND  ANY  LOCAL  CODE OR ORDINANCE APPLICABLE TO A
 JURISDICTION.
   2. "BUILDER'S REMEDY" MEANS COURT-IMPOSED SITE-SPECIFIC RELIEF  FOR  A
 LITIGANT  WHO  SEEKS  TO  BUILD  AFFORDABLE  HOUSING FOR WHICH THE COURT
 REQUIRES A MUNICIPALITY TO UTILIZE ZONING TECHNIQUES, SUCH AS  MANDATORY
 SET-ASIDES,  INCLUDING TECHNIQUES WHICH PROVIDE FOR THE ECONOMIC VIABIL-
 S. 6958                             3
 
 ITY OF A RESIDENTIAL DEVELOPMENT BY INCLUDING HOUSING THAT  IS  NOT  FOR
 LOW- AND MODERATE-INCOME HOUSEHOLDS.
   3.  "COMMITTEE"  MEANS  THE  AFFORDABLE  HOUSING COMMITTEE ESTABLISHED
 PURSUANT TO SECTION SEVEN HUNDRED THREE OF THIS ARTICLE.
   4. "COMPLIANCE CERTIFICATION" MEANS THE CERTIFICATION  OBTAINED  BY  A
 MUNICIPALITY  PURSUANT  TO  SECTION  SEVEN HUNDRED FIVE OF THIS ARTICLE,
 THAT PROTECTS THE  MUNICIPALITY  FROM  EXCLUSIONARY  ZONING  LITIGATION,
 WHICH  IS  ALSO  KNOWN  AS  A  "JUDGMENT  OF COMPLIANCE" OR "JUDGMENT OF
 REPOSE." THE TERM "COMPLIANCE CERTIFICATION" SHALL INCLUDE A JUDGMENT OF
 REPOSE GRANTED IN AN ACTION FILED  PURSUANT  TO  SECTION  SEVEN  HUNDRED
 TWELVE OF THIS ARTICLE.
   5.  "CONVERSION"  MEANS  THE CONVERSION OF EXISTING COMMERCIAL, INDUS-
 TRIAL, OR RESIDENTIAL STRUCTURES FOR LOW-  AND  MODERATE-INCOME  HOUSING
 PURPOSES  WHERE  A  SUBSTANTIAL  PERCENTAGE  OF  THE  HOUSING  UNITS ARE
 PROVIDED FOR A REASONABLE  INCOME  RANGE  OF  LOW-  AND  MODERATE-INCOME
 HOUSEHOLDS.
   6.  "COUNTY-LEVEL  HOUSING  JUDGE" MEANS A JUDGE APPOINTED PURSUANT TO
 SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE, TO RESOLVE DISPUTES OVER
 THE COMPLIANCE OF MUNICIPAL FAIR SHARE  AFFORDABLE  HOUSING  OBLIGATIONS
 AND MUNICIPAL FAIR SHARE PLANS AND HOUSING ELEMENTS, WITH THE PROVISIONS
 OF THIS ARTICLE.
   7.  "DEFICIENT  HOUSING  UNIT"  MEANS  HOUSING THAT: (A) IS OVER FIFTY
 YEARS OLD AND OVERCROWDED; (B) LACKS COMPLETE  PLUMBING;  OR  (C)  LACKS
 COMPLETE KITCHEN FACILITIES.
   8. "DISABILITY" SHALL HAVE THE SAME DEFINITION AS SUCH TERM IS DEFINED
 IN SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW.
   9. "DIVISION" MEANS THE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
   10. "EXCLUSIONARY ZONING LITIGATION" MEANS LITIGATION TO CHALLENGE THE
 FAIR  SHARE  PLAN,  HOUSING ELEMENT, OR ORDINANCES OR RESOLUTIONS IMPLE-
 MENTING THE FAIR SHARE PLAN OR HOUSING ELEMENT OF A  MUNICIPALITY  BASED
 ON  ALLEGED  NONCOMPLIANCE  WITH  THE  PROVISIONS OF THIS ARTICLE, WHICH
 LITIGATION SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, LITIGATION  SEEK-
 ING A BUILDER'S REMEDY.
   11.  "FAIR  SHARE  PLAN"  MEANS THE PLAN OR PROPOSAL THAT IS IN A FORM
 WHICH MAY READILY BE ADOPTED, WITH ACCOMPANYING  ORDINANCES  AND  RESOL-
 UTIONS, PURSUANT TO SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE, BY WHICH
 A  MUNICIPALITY PROPOSES TO SATISFY ITS OBLIGATION TO CREATE A REALISTIC
 OPPORTUNITY TO MEET ITS FAIR SHARE OF LOW- AND  MODERATE-INCOME  HOUSING
 NEEDS OF ITS REGION AND WHICH DETAILS THE AFFIRMATIVE MEASURES THE MUNI-
 CIPALITY  PROPOSES  TO  UNDERTAKE  TO ACHIEVE ITS FAIR SHARE OF LOW- AND
 MODERATE-INCOME HOUSING, AS PROVIDED IN THE MUNICIPAL  HOUSING  ELEMENT,
 AND  ADDRESSES  THE  DEVELOPMENT  REGULATIONS NECESSARY TO IMPLEMENT THE
 HOUSING ELEMENT, INCLUDING, BUT NOT LIMITED  TO,  INCLUSIONARY  REQUIRE-
 MENTS  AND  DEVELOPMENT FEES, AND THE ELIMINATION OF UNNECESSARY HOUSING
 COST-GENERATING FEATURES FROM THE  MUNICIPAL  LAND  USE  ORDINANCES  AND
 REGULATIONS.
   12.  "HOUSING  ELEMENT" MEANS THAT PORTION OF A MUNICIPALITY'S COMPRE-
 HENSIVE  PLAN  CONSISTING  OF  REPORTS,  STATEMENTS,  PROPOSALS,   MAPS,
 DIAGRAMS, AND TEXT DESIGNED TO MEET THE MUNICIPALITY'S FAIR SHARE OF ITS
 REGION'S PRESENT AND PROSPECTIVE HOUSING NEEDS, PARTICULARLY WITH REGARD
 TO LOW- AND MODERATE-INCOME HOUSING, AND WHICH SHALL CONTAIN THE MUNICI-
 PAL  PRESENT  AND  PROSPECTIVE OBLIGATION FOR AFFORDABLE HOUSING, DETER-
 MINED PURSUANT TO SECTION SEVEN HUNDRED FOUR OF THIS ARTICLE.
   13. "HOUSING REGION" MEANS A GEOGRAPHIC AREA ESTABLISHED  PURSUANT  TO
 SECTION SEVEN HUNDRED TWO OF THIS ARTICLE.
 S. 6958                             4
 
   14. "INCLUSIONARY DEVELOPMENT" MEANS A RESIDENTIAL HOUSING DEVELOPMENT
 IN  WHICH A SUBSTANTIAL PERCENTAGE OF THE HOUSING UNITS ARE PROVIDED FOR
 A REASONABLE INCOME RANGE OF LOW- AND MODERATE-INCOME HOUSEHOLDS.
   15. "LOW-INCOME HOUSING" MEANS HOUSING AFFORDABLE ACCORDING TO FEDERAL
 DEPARTMENT  OF  HOUSING AND URBAN DEVELOPMENT OR OTHER RECOGNIZED STAND-
 ARDS FOR HOME OWNERSHIP AND RENTAL COSTS AND OCCUPIED  OR  RESERVED  FOR
 OCCUPANCY  BY  HOUSEHOLDS  WITH  A GROSS HOUSEHOLD INCOME EQUAL TO FIFTY
 PERCENT OR LESS OF THE MEDIAN GROSS HOUSEHOLD INCOME FOR  HOUSEHOLDS  OF
 THE SAME SIZE WITHIN THE HOUSING REGION IN WHICH THE HOUSING IS LOCATED.
   16.  "MODERATE-INCOME  HOUSING"  MEANS HOUSING AFFORDABLE ACCORDING TO
 FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR OTHER  RECOGNIZED
 STANDARDS  FOR  HOME OWNERSHIP AND RENTAL COSTS AND OCCUPIED OR RESERVED
 FOR OCCUPANCY BY HOUSEHOLDS WITH A GROSS HOUSEHOLD INCOME EQUAL TO  MORE
 THAN  FIFTY  PERCENT  BUT  LESS  THAN EIGHTY PERCENT OF THE MEDIAN GROSS
 HOUSEHOLD INCOME FOR HOUSEHOLDS OF THE  SAME  SIZE  WITHIN  THE  HOUSING
 REGION IN WHICH THE HOUSING IS LOCATED.
   17.  "MUNICIPALITY"  MEANS  A  MUNICIPALITY WITHIN THE STATE WHICH HAS
 ZONING AUTHORITY.
   18. "PROGRAM" MEANS THE AFFORDABLE HOUSING DISPUTE RESOLUTION PROGRAM,
 ESTABLISHED PURSUANT TO SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE.
   19. "PROSPECTIVE NEED" MEANS A PROJECTION OF HOUSING  NEEDS  BASED  ON
 DEVELOPMENT  AND  GROWTH WHICH IS REASONABLY LIKELY TO OCCUR IN A REGION
 OR A MUNICIPALITY, AS THE CASE MAY BE, AS A RESULT  OF  ACTUAL  DETERMI-
 NATION OF PUBLIC AND PRIVATE ENTITIES.
   20. "TRANSITIONAL HOUSING" MEANS TEMPORARY HOUSING THAT:
   (A)  INCLUDES, BUT IS NOT LIMITED TO, SINGLE-ROOM OCCUPANCY HOUSING OR
 SHARED LIVING AND SUPPORTIVE LIVING ARRANGEMENTS;
   (B) PROVIDES ACCESS TO ON-SITE OR  OFF-SITE  SUPPORTIVE  SERVICES  FOR
 VERY  LOW-INCOME  HOUSEHOLDS  WHO  HAVE  RECENTLY  BEEN HOMELESS OR LACK
 STABLE HOUSING;
   (C) IS LICENSED BY THE DIVISION; AND
   (D) ALLOWS HOUSEHOLDS TO REMAIN FOR A MINIMUM OF SIX MONTHS.
   21. "VERY LOW-INCOME HOUSING" MEANS HOUSING  AFFORDABLE  ACCORDING  TO
 FEDERAL  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR OTHER RECOGNIZED
 STANDARDS FOR HOME OWNERSHIP AND RENTAL COSTS AND OCCUPIED  OR  RESERVED
 FOR OCCUPANCY BY HOUSEHOLDS WITH A GROSS HOUSEHOLD INCOME EQUAL TO THIR-
 TY  PERCENT  OR LESS OF THE MEDIAN GROSS HOUSEHOLD INCOME FOR HOUSEHOLDS
 OF THE SAME SIZE WITHIN THE HOUSING  REGION  IN  WHICH  THE  HOUSING  IS
 LOCATED.
   §  702.  HOUSING REGIONS. THE COMMISSIONER SHALL DIVIDE THE STATE INTO
 EIGHT TO FIFTEEN GEOGRAPHIC REGIONS  FOR  THE  PURPOSE  OF  ESTABLISHING
 HOUSING OBLIGATIONS, IN THE DISCRETION OF SUCH COMMISSIONER.
   §  703. AFFORDABLE HOUSING COMMITTEE. THE COMMISSIONER SHALL ESTABLISH
 AN AFFORDABLE HOUSING COMMITTEE TO  DETERMINE  MUNICIPAL  HOUSING  OBLI-
 GATIONS  IN  THE  STATE.  SUCH COMMITTEE SHALL BE COMPRISED OF REPRESEN-
 TATIVES OF EACH REGION ESTABLISHED PURSUANT TO SECTION SEVEN HUNDRED TWO
 OF THIS ARTICLE. THE MEMBERSHIP OF THE COMMITTEE SHALL BE DETERMINED  BY
 THE  COMMISSIONER  AND  SHALL  INCLUDE  REPRESENTATIVES FROM EACH COUNTY
 EQUAL TO ONE REPRESENTATIVE FOR EVERY ONE HUNDRED THOUSAND RESIDENTS  OF
 SUCH  COUNTY  OVER TWO HUNDRED THOUSAND RESIDENTS, WITH A MINIMUM OF ONE
 REPRESENTATIVE PER COUNTY AND ONE REPRESENTATIVE PER CITY.
   § 704. FAIR HOUSING OBLIGATIONS. 1. REGIONAL AND MUNICIPAL FAIR  HOUS-
 ING OBLIGATIONS SHALL BE DETERMINED ON A TEN-YEAR BASIS RUNNING FROM THE
 FIRST  OF  APRIL  NEXT  SUCCEEDING  THE  EFFECTIVE  DATE OF THIS ARTICLE
 THROUGH MARCH THIRTY-FIRST  OF  THE  TENTH  YEAR  THEREAFTER,  AND  EACH
 SUCCESSIVE TEN-YEAR PERIOD.
 S. 6958                             5
 
   2. FOR THE PURPOSE OF DETERMINING REGIONAL NEED FOR THE TEN-YEAR ROUND
 OF  LOW-  AND  MODERATE-INCOME  HOUSING  OBLIGATIONS, THE DIVISION SHALL
 DETERMINE SUCH NEED BASED ON THE PROVISIONS OF SUBDIVISION THREE OF THIS
 SECTION. SUCH REGIONAL NEED DETERMINATIONS SHALL  BE  PRESENTED  TO  THE
 COMMITTEE  REPRESENTATIVES  FOR SUCH REGION, AND SUCH REPRESENTATIVES IN
 CONJUNCTION WITH THE DIVISION SHALL ESTABLISH FAIR  HOUSING  OBLIGATIONS
 FOR  EACH  MUNICIPALITY WITHIN SUCH REGION. MUNICIPAL OBLIGATIONS ESTAB-
 LISHED PURSUANT TO THIS SUBDIVISION SHALL BE MADE WITHIN SIXTY  DAYS  OF
 RECEIPT OF THE REGIONAL NEED DETERMINATIONS BY THE COMMITTEE.
   3.  (A)  REGIONAL  PRESENT  NEED FOR EACH TEN-YEAR ROUND OF AFFORDABLE
 HOUSING OBLIGATIONS SHALL BE DETERMINED BY THE DIVISION  ESTIMATING  THE
 DEFICIENT  HOUSING UNITS OCCUPIED BY LOW- AND MODERATE-INCOME HOUSEHOLDS
 IN THE REGION, FOLLOWING A METHODOLOGY PROMULGATED BY THE  COMMISSIONER,
 THROUGH  THE  USE OF THE MOST RECENT DATASETS MADE AVAILABLE THROUGH THE
 FEDERAL DECENNIAL CENSUS AND THE AMERICAN  COMMUNITY  SURVEY,  INCLUDING
 THE COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY DATASET THEREOF.
   (B)  REGIONAL PROSPECTIVE NEED FOR A TEN-YEAR ROUND OF LOW- AND MODER-
 ATE-INCOME HOUSING OBLIGATIONS  SHALL  BE  DETERMINED  BY  THE  DIVISION
 UTILIZING THE CALCULATION PROVIDED IN THIS SUBDIVISION. PROJECTED HOUSE-
 HOLD  CHANGE  FOR  A  TEN-YEAR  ROUND  IN A REGION SHALL BE ESTIMATED BY
 ESTABLISHING THE HOUSEHOLD CHANGE EXPERIENCED IN THE REGION BETWEEN  THE
 MOST RECENT FEDERAL DECENNIAL CENSUS, AND THE SECOND-MOST RECENT FEDERAL
 DECENNIAL  CENSUS.  THIS HOUSEHOLD CHANGE, IF POSITIVE, SHALL BE DIVIDED
 BY TWO AND A HALF TO ESTIMATE THE NUMBER  OF  LOW-  AND  MODERATE-INCOME
 HOMES NEEDED TO ADDRESS LOW- AND MODERATE-INCOME HOUSEHOLD CHANGE IN THE
 REGION  AND  TO  DETERMINE  THE REGIONAL PROSPECTIVE NEED FOR A TEN-YEAR
 ROUND OF LOW- AND  MODERATE-INCOME  HOUSING  OBLIGATIONS.  IF  HOUSEHOLD
 CHANGE IS ZERO OR NEGATIVE, THE NUMBER OF LOW- AND MODERATE-INCOME HOMES
 NEEDED  TO  ADDRESS  LOW-  AND  MODERATE-INCOME  HOUSEHOLD CHANGE IN THE
 REGION AND THE REGIONAL PROSPECTIVE NEED SHALL BE ZERO.
   4. THE DIVISION SHALL REPORT ITS REGIONAL NEED FOR THE TEN-YEAR  ROUND
 OF  LOW-  AND  MODERATE-INCOME  HOUSING OBLIGATION DETERMINATIONS TO THE
 GOVERNOR AND THE LEGISLATURE WITHIN THIRTY DAYS OF MAKING SUCH  DETERMI-
 NATIONS.  SUCH  DETERMINATIONS  SHALL  ALSO  BE  PUBLISHED ON THE PUBLIC
 WEBSITE OF THE DIVISION.
   § 705. MUNICIPAL HOUSING ELEMENT AND FAIR SHARE PLAN. 1. (A) A MUNICI-
 PALITY SHALL ADOPT A HOUSING ELEMENT AND FAIR SHARE  PLAN,  AND  PROPOSE
 DRAFTS OF THE APPROPRIATE ZONING AND OTHER ORDINANCES AND RESOLUTIONS TO
 IMPLEMENT  ITS PRESENT AND PROSPECTIVE OBLIGATION ESTABLISHED IN SECTION
 SEVEN HUNDRED FOUR OF THIS ARTICLE WITHIN NINETY DAYS OF THE  ESTABLISH-
 MENT OF SUCH OBLIGATIONS. AFTER ADOPTION OF THE HOUSING ELEMENT AND FAIR
 SHARE  PLAN,  AND  THE  PROPOSAL OF DRAFTS OF THE APPROPRIATE ZONING AND
 OTHER ORDINANCES AND RESOLUTIONS, THE MUNICIPALITY SHALL  WITHIN  FORTY-
 EIGHT HOURS, FILE THE SAME WITH THE PROGRAM THROUGH THE PROGRAM'S INTER-
 NET  WEBSITE.  ANY  MUNICIPALITY  THAT FAILS TO ADOPT AND FILE A HOUSING
 ELEMENT AND FAIR SHARE PLAN WITHIN THE TIMEFRAMES SET BY THIS PARAGRAPH,
 SHALL NOT RETAIN IMMUNITY FROM EXCLUSIONARY ZONING LITIGATION UNTIL SUCH
 TIME AS THE MUNICIPALITY IS DETERMINED TO HAVE COME INTO COMPLIANCE WITH
 THE PROVISIONS OF THIS ARTICLE AND SHALL BE SUBJECT  TO  REVIEW  THROUGH
 THE  DECLARATORY  JUDGMENT  PROCESS AS ESTABLISHED IN SUBDIVISION TWO OF
 THIS SECTION. AS PART OF ITS HOUSING ELEMENT AND FAIR  SHARE  PLAN,  THE
 MUNICIPALITY  SHALL  INCLUDE  AN  ASSESSMENT  OF THE DEGREE TO WHICH THE
 MUNICIPALITY HAS MET ITS FAIR SHARE OBLIGATION FROM THE PRIOR ROUNDS  OF
 AFFORDABLE  HOUSING  OBLIGATIONS AS ESTABLISHED BY PRIOR COURT APPROVAL,
 OR APPROVAL BY THE COMMITTEE, AND DETERMINE TO WHAT  EXTENT  THIS  OBLI-
 GATION  IS UNFULFILLED OR WHETHER THE MUNICIPALITY HAS CREDITS IN EXCESS
 S. 6958                             6
 
 OF ITS PRIOR ROUND OBLIGATIONS. IF  A  PRIOR  ROUND  OBLIGATION  REMAINS
 UNFULFILLED,  OR A MUNICIPALITY NEVER RECEIVED AN APPROVAL FROM COURT OR
 THE COMMITTEE FOR ANY PRIOR ROUND, THE MUNICIPALITY SHALL  ADDRESS  SUCH
 UNFULFILLED PRIOR ROUND OBLIGATION IN ITS HOUSING ELEMENT AND FAIR SHARE
 PLAN.  UNITS  INCLUDED  AS  PART OF THE MUNICIPALITY'S UNFULFILLED PRIOR
 ROUND OBLIGATION SHALL NOT COUNT TOWARDS THE CAP ON UNITS IN THE MUNICI-
 PALITY'S PROSPECTIVE NEED OBLIGATION. IN ADDRESSING  PRIOR  ROUND  OBLI-
 GATIONS, THE MUNICIPALITY SHALL RETAIN ANY SITES THAT, IN FURTHERANCE OF
 THE  PRIOR  ROUND OBLIGATION, ARE THE SUBJECT OF A CONTRACTUAL AGREEMENT
 WITH A DEVELOPER, OR FOR WHICH THE DEVELOPER HAS FILED A COMPLETE APPLI-
 CATION SEEKING SUBDIVISION OR SITE PLAN APPROVAL PRIOR TO  THE  DATE  BY
 WHICH THE HOUSING ELEMENT AND FAIR SHARE PLAN ARE REQUIRED TO BE SUBMIT-
 TED,  AND  SHALL  DEMONSTRATE  HOW  ANY SITES THAT WERE NOT BUILT IN THE
 PRIOR ROUNDS CONTINUE TO PRESENT  A  REALISTIC  OPPORTUNITY,  WHICH  MAY
 INCLUDE PROPOSING CHANGES TO THE ZONING ON THE SITE TO MAKE ITS DEVELOP-
 MENT MORE LIKELY, AND WHICH MAY ALSO INCLUDE THE DEDICATION OF MUNICIPAL
 AFFORDABLE  HOUSING  TRUST  FUND  DOLLARS  OR  OTHER MONETARY OR IN-KIND
 RESOURCES. THE MUNICIPALITY SHALL ONLY PLAN TO REPLACE ANY SITES PLANNED
 FOR DEVELOPMENT AS PROVIDED BY A PRIOR COURT APPROVAL, SETTLEMENT AGREE-
 MENT, OR APPROVAL BY THE COMMITTEE, WITH ALTERNATIVE DEVELOPMENT  PLANS,
 IF  IT IS DETERMINED THAT THE PREVIOUSLY PLANNED SITES NO LONGER PRESENT
 A REALISTIC OPPORTUNITY, AND THE SITES IN  THE  ALTERNATIVE  DEVELOPMENT
 PLAN  PROVIDE  AT LEAST AN EQUIVALENT NUMBER OF AFFORDABLE UNITS AND ARE
 OTHERWISE IN COMPLIANCE WITH THIS ARTICLE. IF A MUNICIPALITY PROPOSES TO
 REPLACE A SITE FOR WHICH A COMPLETE APPLICATION SEEKING  SUBDIVISION  OR
 SITE  PLAN  APPROVAL  HAS  NOT BEEN FILED PRIOR TO THE DATE BY WHICH THE
 HOUSING ELEMENT AND FAIR SHARE PLAN IS REQUIRED TO BE  SUBMITTED,  THERE
 SHALL  BE A REBUTTABLE PRESUMPTION IN ANY CHALLENGE FILED TO THE MUNICI-
 PALITY'S PLAN THAT ANY SITE FOR WHICH A ZONING DESIGNATION  WAS  ADOPTED
 CREATING  A REALISTIC OPPORTUNITY FOR THE DEVELOPMENT OF A SITE PRIOR TO
 JULY FIRST OF  EVERY  TENTH  YEAR  THEREAFTER,  AS  APPLICABLE,  MAY  BE
 REPLACED  WITH  ONE  OR  MORE ALTERNATIVE SITES THAT PROVIDE A REALISTIC
 OPPORTUNITY FOR AT LEAST THE SAME NUMBER  OF  AFFORDABLE  UNITS  AND  IS
 OTHERWISE  IN  COMPLIANCE  WITH  THE  PROVISIONS OF THIS ARTICLE. TO THE
 EXTENT A MUNICIPALITY HAS CREDITS, FROM UNITS  CREATED  DURING  A  PRIOR
 ROUND  THAT  ARE  OTHERWISE PERMITTED TO BE ALLOCATED TOWARD THE MUNICI-
 PALITY'S UNFULFILLED PRIOR ROUND OBLIGATION OR  PRESENT  OR  PROSPECTIVE
 NEED OBLIGATION IN AN UPCOMING ROUND, THE MUNICIPALITY SHALL BE ENTITLED
 TO RELY ON THE RULES APPLICABLE FOR THE ROUND DURING WHICH THOSE CREDITS
 WERE  ACCUMULATED.  IF A MUNICIPALITY HAS CREDITS IN EXCESS OF ITS PRIOR
 ROUND OBLIGATIONS, AND SUCH EXCESS CREDITS REPRESENT HOUSING  THAT  WILL
 CONTINUE TO BE DEED-RESTRICTED AND AFFORDABLE THROUGH THE CURRENT ROUND,
 THE MUNICIPALITY MAY INCLUDE SUCH HOUSING TOWARDS ADDRESSING THE MUNICI-
 PALITY'S NEW CALCULATION OF PROSPECTIVE NEED.
   (B)  WITHIN  NINETY  DAYS  FOLLOWING  THE FILING OF AN ADOPTED HOUSING
 ELEMENT AND FAIR SHARE PLAN PURSUANT TO PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION,  THE ATTORNEY GENERAL OR AN INTERESTED PARTY MAY FILE IN AN ACTION
 A RESPONSE ALLEGING THAT THE MUNICIPALITY'S FAIR SHARE PLAN AND  HOUSING
 ELEMENT  ARE  NOT  IN  COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE.
 SUCH ALLEGATION SHALL NOT INCLUDE A CLAIM THAT A SITE ON  REAL  PROPERTY
 PROPOSED  BY  THE  INTERESTED  PARTY IS A BETTER SITE THAN A SITE IN THE
 PLAN, BUT RATHER SHALL BE BASED ON WHETHER THE HOUSING ELEMENT AND  FAIR
 SHARE PLAN AS PROPOSED IS COMPLIANT WITH THE PROVISIONS OF THIS ARTICLE.
 TO  RESOLVE A CHALLENGE, THE PROGRAM SHALL APPLY AN OBJECTIVE ASSESSMENT
 STANDARD TO DETERMINE WHETHER OR NOT THE MUNICIPALITY'S HOUSING  ELEMENT
 AND FAIR SHARE PLAN IS COMPLIANT WITH THIS ARTICLE. THE ATTORNEY GENERAL
 S. 6958                             7
 
 OR ANY INTERESTED PARTY THAT FILES A CHALLENGE SHALL SPECIFY WITH PARTI-
 CULARITY WHICH SITES OR ELEMENTS OF THE MUNICIPAL FAIR SHARE PLAN DO NOT
 COMPLY WITH THIS ARTICLE, AND THE BASIS FOR ALLEGING SUCH NONCOMPLIANCE.
 THE   PROGRAM  SHALL  ESTABLISH  PROCEDURES  TO  SUMMARILY  DISMISS  ANY
 OBJECTION OR CHALLENGE THAT DOES NOT MEET THESE MINIMUM  STANDARDS.  FOR
 THE  PURPOSE  OF  EFFICIENCY,  THE PROGRAM SHALL, IN ITS OWN DISCRETION,
 PERMIT MULTIPLE CHALLENGES TO THE SAME  MUNICIPAL  HOUSING  ELEMENT  AND
 FAIR  SHARE PLAN TO BE CONSOLIDATED. IF A MUNICIPALITY'S FAIR SHARE PLAN
 AND HOUSING ELEMENT IS NOT CHALLENGED WITHIN NINETY DAYS  FOLLOWING  THE
 FILING  OF  AN  ADOPTED  HOUSING ELEMENT AND FAIR SHARE PLAN PURSUANT TO
 PARAGRAPH (A) OF THIS SUBDIVISION,  THEN  THE  PROGRAM  SHALL  APPLY  AN
 OBJECTIVE  STANDARD  TO  CONDUCT A LIMITED REVIEW OF THE FAIR SHARE PLAN
 AND HOUSING ELEMENT FOR CONSISTENCY AND TO DETERMINE WHETHER IT  ENABLES
 THE MUNICIPALITY TO SATISFY THE FAIR SHARE OBLIGATION, APPLIES COMPLIANT
 MECHANISMS,  MEETS  THE  THRESHOLD  REQUIREMENTS  FOR  RENTAL AND FAMILY
 UNITS, DOES NOT EXCEED LIMITS ON OTHER UNIT OR CATEGORY  TYPES,  AND  IS
 COMPLIANT WITH THE PROVISIONS OF THIS ARTICLE. THE PROGRAM SHALL ISSUE A
 COMPLIANCE  CERTIFICATION  UNLESS THESE OBJECTIVE STANDARDS ARE NOT MET.
 THE PROGRAM SHALL FACILITATE COMMUNICATION BETWEEN THE MUNICIPALITY, THE
 ATTORNEY GENERAL AND ANY INTERESTED PARTIES FOR A CHALLENGE AND  PROVIDE
 THE  MUNICIPALITY A PERIOD OF NINETY DAYS TO COMMIT TO REVISING ITS FAIR
 SHARE PLAN AND HOUSING ELEMENT IN COMPLIANCE WITH THE CHANGES  REQUESTED
 IN  THE  CHALLENGE, OR PROVIDE AN EXPLANATION AS TO WHY IT WILL NOT MAKE
 ALL OF THE REQUESTED CHANGES, OR BOTH. UPON RESOLUTION OF  A  CHALLENGE,
 THE  PROGRAM  SHALL  ISSUE  COMPLIANCE CERTIFICATION, CONDITIONED ON THE
 MUNICIPALITY'S COMMITMENT, AS NECESSARY, TO REVISE ITS FAIR  SHARE  PLAN
 AND  HOUSING ELEMENT IN ACCORDANCE WITH THE RESOLUTION OF THE CHALLENGE.
 THE PROGRAM MAY ALSO TERMINATE IMMUNITY IF IT  FINDS  THAT  THE  MUNICI-
 PALITY  IS  NOT  DETERMINED  TO COME INTO COMPLIANCE AT ANY POINT IN THE
 PROCESS.  IF BY THE CONCLUSION OF THE NINETY  DAY  REVISION  PERIOD  THE
 MUNICIPALITY, THE ATTORNEY GENERAL AND ANY INTERESTED PARTY THAT FILED A
 RESPONSE  HAVE RESOLVED THE ISSUES RAISED IN THE RESPONSE THROUGH AGREE-
 MENT OR WITHDRAWAL OF THE FILING, THEN THE PROGRAM SHALL REVIEW THE FAIR
 SHARE PLAN AND HOUSING ELEMENT FOR CONSISTENCY AND TO DETERMINE  WHETHER
 IT  IS COMPLIANT WITH THE PROVISIONS OF THIS ARTICLE AND ISSUE A COMPLI-
 ANCE CERTIFICATION UNLESS THESE OBJECTIVE STANDARDS ARE NOT MET.
   (C) THE PROGRAM MAY PERMIT A MUNICIPALITY THAT STILL HAS  A  REMAINING
 DISPUTE  BY  INTERESTED  PARTIES  TO  RETAIN  IMMUNITY FROM EXCLUSIONARY
 ZONING LITIGATION INTO THE YEAR FOLLOWING THE YEAR IN WHICH A NEW  ROUND
 BEGINS  IF  THE  PROGRAM, OR COUNTY-LEVEL HOUSING JUDGE, DETERMINES THAT
 THE MUNICIPALITY HAS BEEN UNABLE TO RESOLVE THE ISSUES DISPUTED  DESPITE
 BEING  DETERMINED  TO  COME  INTO  CONSTITUTIONAL  COMPLIANCE. THE CHIEF
 ADMINISTRATOR OF THE COURTS SHALL DEVELOP PROCEDURES TO ENABLE  A  COUN-
 TY-LEVEL  HOUSING  JUDGE  TO  RESOLVE  THIS DISPUTE OVER THE ISSUANCE OF
 COMPLIANCE CERTIFICATION THROUGH A SUMMARY PROCEEDING IN  SUPREME  COURT
 FOLLOWING  THE  YEAR  IN  WHICH  THE  NEW ROUND BEGINS. A JUDGE SHALL BE
 PERMITTED TO SERVE AS A COUNTY-LEVEL HOUSING JUDGE  FOR  MORE  THAN  ONE
 COUNTY  IN  THE  SAME VICINAGE. THE PENDENCY OF SUCH A DISPUTE SHALL NOT
 STAY THE DEADLINE FOR ADOPTION OF  IMPLEMENTING  ORDINANCES  AND  RESOL-
 UTIONS  PURSUANT  TO  THIS  SUBDIVISION. THE IMPLEMENTING ORDINANCES AND
 RESOLUTIONS ADOPTED PRIOR TO  THE  RESOLUTION  OF  THE  DISPUTE  MAY  BE
 SUBJECT TO CHANGES TO REFLECT THE RESULTS OF THE DISPUTE. AS AN ALTERNA-
 TIVE  TO  ADOPTING ALL NECESSARY IMPLEMENTING ORDINANCES AND RESOLUTIONS
 BY THE DEADLINES SET IN THIS  SECTION,  A  MUNICIPALITY  INVOLVED  IN  A
 CONTINUING  DISPUTE  OVER  THE  ISSUANCE OF COMPLIANCE CERTIFICATION MAY
 ADOPT A BINDING RESOLUTION BY SUCH DEADLINES TO COMMIT TO  ADOPTING  THE
 S. 6958                             8
 
 IMPLEMENTING  ORDINANCES  AND  RESOLUTIONS  FOLLOWING  RESOLUTION OF THE
 DISPUTE, WITH NECESSARY ADJUSTMENTS TO REFLECT  THE  RESOLUTION  OF  THE
 DISPUTE.
   (D)  A  COMPLIANCE CERTIFICATION, ISSUED PURSUANT TO THIS SUBDIVISION,
 SHALL BE ACCOMPANIED BY A WRITTEN REPORT THAT SHALL SET FORTH THE  BASIS
 OF  THE  ISSUANCE  OF  THE  CERTIFICATION AND SHALL BE IN A FORMAT TO BE
 DEVELOPED AND APPROVED BY THE CHIEF ADMINISTRATOR OF THE COURTS.
   2. (A) IF A MUNICIPALITY FAILS TO MATERIALLY  ADHERE  TO  ANY  OF  THE
 DEADLINES  ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION DUE TO CIRCUM-
 STANCES BEYOND THE CONTROL  OF  THE  MUNICIPALITY,  INCLUDING,  BUT  NOT
 LIMITED  TO,  AN  INABILITY TO MEET A DEADLINE DUE TO AN EXTREME WEATHER
 EVENT, THEN THE PROGRAM, OR THE COUNTY LEVEL HOUSING JUDGE,  IN  ACCORD-
 ANCE  WITH COURT RULES, MAY PERMIT A MUNICIPALITY TO HAVE A GRACE PERIOD
 TO COME INTO COMPLIANCE WITH THE TIMELINE,  THE  LENGTH  OF  WHICH,  AND
 EFFECT  OF  WHICH  ON LATER DEADLINES, SHALL BE DETERMINED ON A CASE-BY-
 CASE BASIS.
   (B) A MUNICIPALITY THAT HAS NOT ADOPTED AND FILED  A  HOUSING  ELEMENT
 AND FAIR SHARE PLAN PURSUANT TO SUBDIVISION ONE OF THIS SECTION MAY SEEK
 COMPLIANCE  CERTIFICATION  BY FILING AN ACTION PURSUANT TO SECTION SEVEN
 HUNDRED TWELVE OF THIS ARTICLE, PROVIDED THAT  ANY  EXCLUSIONARY  ZONING
 LITIGATION  FILED  BY  A  PLAINTIFF AGAINST SUCH A MUNICIPALITY PRIOR TO
 SUCH TIME MAY PROCEED NOTWITHSTANDING SUCH  FILING.  IN  A  MUNICIPALITY
 THAT  HAS ADOPTED AND FILED A HOUSING ELEMENT AND FAIR SHARE PLAN PURSU-
 ANT TO SUBDIVISION ONE OF THIS  SECTION,  A  COURT  SHALL  NOT  CONSIDER
 EXCLUSIONARY  ZONING  LITIGATION  DURING  THE TIMEFRAME AFTER THE TIMELY
 SUBMISSION OF A BINDING  RESOLUTION  OR  FAIR  SHARE  PLAN  AND  HOUSING
 ELEMENT OF A MUNICIPALITY, OR BOTH, AND BEFORE A CHALLENGE IS SUBMITTED,
 OR  DURING  THE TIMEFRAME OF A CHALLENGE THAT IS PENDING RESOLUTION WITH
 THE PROGRAM PURSUANT TO THIS SECTION. A COURT MAY CONSIDER  EXCLUSIONARY
 ZONING  LITIGATION  AFTER SUCH TIMEFRAME UPON A FINDING THAT THE MUNICI-
 PALITY:  (I) IS DETERMINED TO BE NONCOMPLIANT WITH ITS  RESPONSIBILITIES
 PURSUANT  TO  THE  PROVISIONS OF THIS SECTION OR IS PARTICIPATING IN THE
 PROGRAM IN BAD FAITH; (II) HAS FAILED TO MEET THE DEADLINES  ESTABLISHED
 PURSUANT  TO  THIS  SECTION;  OR  (III)  HAS, AFTER RECEIVING COMPLIANCE
 CERTIFICATION, FAILED TO COMPLY WITH THE TERMS OF THAT CERTIFICATION  BY
 NOT  ACTUALLY  ALLOWING FOR THE DEVELOPMENT OF THE AFFORDABLE HOUSING AS
 PROVIDED FOR IN ITS FAIR SHARE PLAN AND HOUSING ELEMENT THROUGH  ACTIONS
 OR OMISSIONS, OR BOTH, OF A MUNICIPALITY OR ITS SUBORDINATE BOARDS.
   (C)  ALL  PARTIES  SHALL  BEAR THEIR OWN FEES AND COSTS IN PROCEEDINGS
 BEFORE THE PROGRAM.
   (D) A DETERMINATION BY THE PROGRAM AS TO THE PRESENT  AND  PROSPECTIVE
 NEED  OBLIGATION  OR AS TO ISSUANCE OF COMPLIANCE CERTIFICATION PURSUANT
 TO THIS SECTION SHALL BE CONSIDERED A FINAL DECISION, SUBJECT TO  APPEL-
 LATE REVIEW.
   3.  (A)  ONCE  A  MUNICIPALITY HAS RECEIVED A COMPLIANCE CERTIFICATION
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR  OTHERWISE  HAS  HAD  ITS
 FAIR  SHARE  OBLIGATION  AND HOUSING ELEMENT AND FAIR SHARE PLAN FINALLY
 DETERMINED VIA JUDGMENT OF REPOSE OR OTHER  JUDGMENT,  THE  MUNICIPALITY
 SHALL  MAKE  THE  MUNICIPALITY'S FAIR SHARE PLAN AND HOUSING ELEMENT, AS
 WELL AS ANY SUBSEQUENTLY  ADOPTED  IMPLEMENTING  ORDINANCES  AND  RESOL-
 UTIONS, OR AMENDMENTS THERETO, AVAILABLE TO THE DIVISION AND THE PROGRAM
 FOR  PUBLICATION  ON  THE  DIVISION'S  AND PROGRAM'S RESPECTIVE INTERNET
 WEBSITES.
   (B) A MUNICIPALITY SHALL NOT BE DEEMED  OUT  OF  COMPLIANCE  WITH  THE
 DEADLINES  OF  SUBDIVISION  ONE  OF  THIS SECTION, OR LOSE IMMUNITY FROM
 EXCLUSIONARY ZONING LITIGATION, DUE TO  A  FAILURE  BY  THE  PROGRAM  TO
 S. 6958                             9

 PROMPTLY  MAINTAIN  AND UPDATE ITS INTERNET WEBSITE OR OTHER OPERATIONAL
 FAILURE OF THE PROGRAM.
   4.  (A)  A  MUNICIPALITY  SHALL HAVE IMMUNITY FROM EXCLUSIONARY ZONING
 LITIGATION IF THE MUNICIPALITY COMPLIES WITH THE  DEADLINES  ESTABLISHED
 IN  SUBDIVISION  ONE  OF THIS SECTION FOR ADOPTING A HOUSING ELEMENT AND
 FAIR SHARE PLAN TO MEET  PRESENT  AND  PROSPECTIVE  FAIR  HOUSING  OBLI-
 GATIONS.
   (B)  IMMUNITY  FROM EXCLUSIONARY ZONING LITIGATION SHALL NOT LIMIT THE
 ABILITY OF THE ATTORNEY GENERAL OR AN INTERESTED PARTY  TO  CHALLENGE  A
 MUNICIPALITY  FOR  FAILURE  TO  COMPLY  WITH THE TERMS OF ITS COMPLIANCE
 CERTIFICATION. HOWEVER, A MUNICIPALITY'S  ACTIONS  TO  COMPLY  WITH  THE
 TERMS  OF  ITS  COMPLIANCE  CERTIFICATION  SHALL RETAIN A PRESUMPTION OF
 VALIDITY IF CHALLENGED FOR AN ALLEGED FAILURE DESCRIBED  IN  THIS  PARA-
 GRAPH.
   (C)  IMMUNITY  FROM EXCLUSIONARY ZONING LITIGATION SHALL NOT LIMIT THE
 ABILITY OF THE ATTORNEY GENERAL OR AN INTERESTED PARTY TO BRING A  CHAL-
 LENGE  BEFORE THE PROGRAM ALLEGING THAT, DESPITE THE ISSUANCE OF COMPLI-
 ANCE CERTIFICATION, A MUNICIPALITY'S FAIR SHARE OBLIGATION,  FAIR  SHARE
 PLAN, HOUSING ELEMENT, OR ORDINANCES IMPLEMENTING THE FAIR SHARE PLAN OR
 HOUSING  ELEMENT  ARE  IN  VIOLATION  OF THE PROVISIONS OF THIS ARTICLE.
 HOWEVER, THE DECISIONS OF THE PROGRAM  SHALL  RETAIN  A  PRESUMPTION  OF
 VALIDITY  IF CHALLENGED FOR AN ALLEGED VIOLATION DESCRIBED IN THIS PARA-
 GRAPH.
   § 706. MUNICIPAL HOUSING ELEMENT; CONTENTS. A  MUNICIPALITY'S  HOUSING
 ELEMENT  SHALL  BE  DESIGNED TO ACHIEVE THE GOAL OF ACCESS TO AFFORDABLE
 HOUSING TO MEET PRESENT AND PROSPECTIVE HOUSING NEEDS,  WITH  PARTICULAR
 ATTENTION  TO  LOW-  AND  MODERATE-INCOME  HOUSING, AND SHALL CONTAIN AT
 LEAST:
   1. AN INVENTORY OF THE MUNICIPALITY'S HOUSING STOCK BY AGE, CONDITION,
 PURCHASE OR RENTAL VALUE, OCCUPANCY CHARACTERISTICS, AND TYPE, INCLUDING
 THE NUMBER OF UNITS AFFORDABLE TO LOW-  AND  MODERATE-INCOME  HOUSEHOLDS
 AND  SUBSTANDARD HOUSING CAPABLE OF BEING REHABILITATED, AND IN CONDUCT-
 ING THIS INVENTORY THE MUNICIPALITY SHALL HAVE ACCESS, ON A CONFIDENTIAL
 BASIS FOR THE SOLE PURPOSE OF CONDUCTING THE INVENTORY, TO ALL NECESSARY
 PROPERTY TAX  ASSESSMENT  RECORDS  AND  INFORMATION  IN  THE  ASSESSOR'S
 OFFICE;
   2.  A  PROJECTION  OF  THE MUNICIPALITY'S HOUSING STOCK, INCLUDING THE
 PROBABLE FUTURE CONSTRUCTION OF LOW- AND  MODERATE-INCOME  HOUSING,  FOR
 THE NEXT TEN YEARS, TAKING INTO ACCOUNT, BUT NOT NECESSARILY LIMITED TO,
 CONSTRUCTION  PERMITS  ISSUED, APPROVALS OF APPLICATIONS FOR DEVELOPMENT
 AND PROBABLE RESIDENTIAL DEVELOPMENT OF LANDS;
   3. AN ANALYSIS  OF  THE  MUNICIPALITY'S  DEMOGRAPHIC  CHARACTERISTICS,
 INCLUDING  BUT  NOT NECESSARILY LIMITED TO, HOUSEHOLD SIZE, INCOME LEVEL
 AND AGE;
   4. AN ANALYSIS OF THE EXISTING AND PROBABLE FUTURE EMPLOYMENT  CHARAC-
 TERISTICS OF THE MUNICIPALITY;
   5.  A DETERMINATION OF THE MUNICIPALITY'S PRESENT AND PROSPECTIVE FAIR
 SHARE FOR LOW- AND MODERATE-INCOME HOUSING AND ITS CAPACITY TO  ACCOMMO-
 DATE ITS PRESENT AND PROSPECTIVE HOUSING NEEDS, INCLUDING ITS FAIR SHARE
 FOR LOW- AND MODERATE-INCOME HOUSING, AS ESTABLISHED PURSUANT TO SECTION
 SEVEN HUNDRED FOUR OF THIS ARTICLE; AND
   6.  A  CONSIDERATION  OF  THE  LANDS  THAT  ARE  MOST  APPROPRIATE FOR
 CONSTRUCTION OF LOW- AND MODERATE-INCOME HOUSING  AND  OF  THE  EXISTING
 STRUCTURES  MOST  APPROPRIATE  FOR CONVERSION TO, OR REHABILITATION FOR,
 LOW- AND MODERATE-INCOME HOUSING, INCLUDING A CONSIDERATION OF LANDS  OF
 S. 6958                            10

 DEVELOPERS  WHO  HAVE  EXPRESSED A COMMITMENT TO PROVIDE LOW- AND MODER-
 ATE-INCOME HOUSING.
   § 707. CALCULATION OF AVAILABLE LAND FOR MUNICIPAL ADJUSTMENT; CERTAIN
 LAND  EXCLUDED.  1.  ANY MUNICIPALITY THAT RECEIVES AN ADJUSTMENT OF ITS
 PROSPECTIVE NEED OBLIGATIONS BASED ON A LACK OF  VACANT  LAND  SHALL  AS
 PART OF THE PROCESS OF ADOPTING AND IMPLEMENTING ITS HOUSING ELEMENT AND
 FAIR  SHARE  PLAN IDENTIFY SUFFICIENT PARCELS LIKELY TO REDEVELOP DURING
 THE CURRENT ROUND OF OBLIGATIONS TO ADDRESS AT LEAST TWENTY-FIVE PERCENT
 OF THE PROSPECTIVE NEED OBLIGATION THAT HAS  BEEN  ADJUSTED,  AND  ADOPT
 REALISTIC  ZONING  THAT  ALLOWS  FOR SUCH ADJUSTED OBLIGATION, OR DEMON-
 STRATE WHY THE MUNICIPALITY IS UNABLE TO DO SO. WHEN COMPUTING A MUNICI-
 PAL ADJUSTMENT REGARDING AVAILABLE LAND RESOURCES AS PART OF THE  DETER-
 MINATION  OF  A  MUNICIPALITY'S  FAIR  SHARE  OF AFFORDABLE HOUSING, THE
 MUNICIPALITY, IN FILING A HOUSING ELEMENT AND FAIR SHARE  PLAN  PURSUANT
 TO SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE, SHALL EXCLUDE FROM DESIG-
 NATING AS VACANT LAND:
   (A)  ANY  LAND  THAT  IS  OWNED BY A LOCAL GOVERNMENT ENTITY THAT, HAS
 ADOPTED, PRIOR TO THE INSTITUTION OF A LAWSUIT SEEKING A BUILDER'S REME-
 DY OR PRIOR TO THE FILING OF A PETITION FOR SUBSTANTIVE CERTIFICATION OF
 A HOUSING ELEMENT AND FAIR  SHARE  PLAN,  A  RESOLUTION  AUTHORIZING  AN
 EXECUTION  OF  AGREEMENT  THAT THE LAND BE UTILIZED FOR A PUBLIC PURPOSE
 OTHER THAN HOUSING;
   (B) ANY LAND LISTED ON A COMPREHENSIVE PLAN OF A MUNICIPALITY AS BEING
 DEDICATED, BY EASEMENT OR OTHERWISE, FOR PURPOSES OF CONSERVATION,  PARK
 LANDS  OR  OPEN  SPACE  AND  WHICH IS OWNED, LEASED, LICENSED, OR IN ANY
 MANNER OPERATED BY  A  COUNTY,  MUNICIPALITY  OR  TAX-EXEMPT,  NONPROFIT
 ORGANIZATION  INCLUDING  A LOCAL BOARD OF EDUCATION, OR BY MORE THAN ONE
 MUNICIPALITY BY JOINT AGREEMENT, FOR SO LONG  AS  THE  ENTITY  MAINTAINS
 SUCH OWNERSHIP, LEASE, LICENSE, OR OPERATIONAL CONTROL OF SUCH LAND;
   (C)  ANY  VACANT  CONTIGUOUS PARCELS OF LAND IN PRIVATE OWNERSHIP OF A
 SIZE WHICH WOULD ACCOMMODATE FEWER THAN  FIVE  HOUSING  UNITS  BASED  ON
 APPROPRIATE STANDARDS PERTAINING TO HOUSING DENSITY;
   (D)  HISTORIC  AND ARCHITECTURALLY IMPORTANT SITES LISTED ON THE STATE
 REGISTER OF HISTORIC SITES AND OBJECTS PURSUANT TO SECTION 19.03 OF  THE
 PARKS, RECREATION AND HISTORIC PRESERVATION LAW;
   (E) AGRICULTURAL LANDS WHEN THE DEVELOPMENT RIGHTS TO THESE LANDS HAVE
 BEEN PURCHASED OR RESTRICTED BY COVENANT;
   (F)  SITES  DESIGNATED  FOR  ACTIVE RECREATION THAT ARE DESIGNATED FOR
 RECREATIONAL PURPOSES IN THE MUNICIPAL COMPREHENSIVE PLAN; AND
   (G) ENVIRONMENTALLY SENSITIVE LANDS WHERE DEVELOPMENT IS PROHIBITED BY
 ANY STATE OR FEDERAL AGENCY.
   2. NO MUNICIPALITY SHALL BE REQUIRED TO UTILIZE LAND THAT IS  EXCLUDED
 FROM BEING DESIGNATED AS VACANT LAND FOR AFFORDABLE HOUSING PURPOSES.
   3.  NOTWITHSTANDING  ANY  LAW  OR  REGULATION TO THE CONTRARY, NOTHING
 SHALL PRECLUDE A MUNICIPALITY WHICH HAS RESERVED LESS THAN THREE PERCENT
 OF ITS LAND AREA FOR CONSERVATION, PARK LANDS OR OPEN SPACE FROM RESERV-
 ING UP TO THREE PERCENT OF ITS LAND  AREA  FOR  SUCH  PURPOSES.  NOTHING
 HEREIN  IS INTENDED TO ALTER THE RESPONSIBILITIES OF MUNICIPALITIES WITH
 RESPECT TO PLANS ALREADY APPROVED WHICH WERE BASED UPON THE RIGHT  TO  A
 VACANT LAND ADJUSTMENT.
   §  708. MUNICIPAL HOUSING ELEMENT; TECHNIQUES FOR PROVIDING FAIR SHARE
 OF LOW- AND MODERATE-INCOME HOUSING. 1. IN ADOPTING ITS HOUSING ELEMENT,
 THE MUNICIPALITY MAY PROVIDE FOR ITS FAIR SHARE OF LOW- AND MODERATE-IN-
 COME HOUSING BY MEANS OF ANY  TECHNIQUE  OR  COMBINATION  OF  TECHNIQUES
 WHICH  PROVIDE  A  REALISTIC  OPPORTUNITY  FOR THE PROVISION OF THE FAIR
 SHARE. THE HOUSING ELEMENT SHALL CONTAIN AN ANALYSIS DEMONSTRATING  THAT
 S. 6958                            11
 
 IT WILL PROVIDE SUCH A REALISTIC OPPORTUNITY, AND THE MUNICIPALITY SHALL
 ESTABLISH  THAT  ITS  LAND  USE  AND OTHER RELEVANT ORDINANCES HAVE BEEN
 REVISED TO INCORPORATE THE PROVISIONS FOR LOW- AND MODERATE-INCOME HOUS-
 ING.  IN  PREPARING THE HOUSING ELEMENT, THE MUNICIPALITY SHALL CONSIDER
 THE FOLLOWING TECHNIQUES FOR PROVIDING LOW- AND MODERATE-INCOME  HOUSING
 WITHIN THE MUNICIPALITY, AS WELL AS SUCH OTHER APPROPRIATE TECHNIQUES AS
 HAVE  BEEN  ESTABLISHED THROUGH APPLICABLE PRECEDENT AND MAY BE EMPLOYED
 BY THE MUNICIPALITY:
   (A) REZONING FOR DENSITIES NECESSARY TO ASSURE THE ECONOMIC  VIABILITY
 OF  ANY  INCLUSIONARY DEVELOPMENTS, EITHER THROUGH MANDATORY SET-ASIDES,
 AS MAY BE NECESSARY TO MEET ALL OR PART OF THE MUNICIPALITY'S FAIR SHARE
 IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION SEVEN OF THIS SECTION;
   (B) DETERMINATION OF THE TOTAL RESIDENTIAL ZONING NECESSARY TO  ASSURE
 THAT THE MUNICIPALITY'S FAIR SHARE IS ACHIEVED;
   (C)  DETERMINATION  OF  MEASURES  THAT  THE  MUNICIPALITY WILL TAKE TO
 ASSURE THAT LOW- AND MODERATE-INCOME UNITS REMAIN AFFORDABLE TO LOW- AND
 MODERATE-INCOME HOUSEHOLDS FOR AN APPROPRIATE PERIOD OF  NOT  LESS  THAN
 THE  PERIOD REQUIRED BY THE REGULATIONS ADOPTED BY THE DIVISION PURSUANT
 TO SUBDIVISION SIX OF SECTION SEVEN HUNDRED FOURTEEN OF THIS ARTICLE;
   (D) A PLAN FOR INFRASTRUCTURE EXPANSION AND REHABILITATION AND CONVER-
 SION OR REDEVELOPMENT OF UNUSED OR UNDERUTILIZED REAL PROPERTY,  INCLUD-
 ING  EXISTING  STRUCTURES, IF NECESSARY TO ASSURE THE ACHIEVEMENT OF THE
 MUNICIPALITY'S FAIR SHARE OF LOW- AND MODERATE-INCOME HOUSING;
   (E) DONATION OR USE OF MUNICIPALLY OWNED LAND OR LAND CONDEMNED BY THE
 MUNICIPALITY FOR PURPOSES OF PROVIDING LOW- AND MODERATE-INCOME HOUSING;
   (F) TAX ABATEMENTS FOR PURPOSES OF PROVIDING LOW- AND  MODERATE-INCOME
 HOUSING;
   (G)  UTILIZATION  OF  FUNDS OBTAINED FROM ANY STATE OR FEDERAL SUBSIDY
 TOWARD THE CONSTRUCTION OF LOW- AND MODERATE-INCOME HOUSING;
   (H) UTILIZATION OF MUNICIPALLY GENERATED FUNDS TOWARD THE CONSTRUCTION
 OF LOW- AND MODERATE-INCOME HOUSING; AND
   (I) THE PURCHASE OF PRIVATELY OWNED REAL PROPERTY USED FOR RESIDENTIAL
 PURPOSES AT THE VALUE OF ALL LIENS SECURED BY  THE  PROPERTY,  EXCLUDING
 ANY  TAX LIENS, NOTWITHSTANDING THAT THE TOTAL AMOUNT OF DEBT SECURED BY
 LIENS EXCEEDS THE APPRAISED VALUE OF THE  PROPERTY,  PURSUANT  TO  REGU-
 LATIONS  PROMULGATED  BY  THE  COMMISSIONER  PURSUANT  TO  SECTION SEVEN
 HUNDRED ELEVEN OF THIS ARTICLE.
   2. THE MUNICIPALITY  MAY  PROVIDE  FOR  A  PHASING  SCHEDULE  FOR  THE
 ACHIEVEMENT OF ITS FAIR SHARE OF LOW- AND MODERATE-INCOME HOUSING.
   3.  NOTHING  IN  THIS ARTICLE SHALL REQUIRE A MUNICIPALITY TO RAISE OR
 EXPEND MUNICIPAL REVENUES IN ORDER TO PROVIDE LOW-  AND  MODERATE-INCOME
 HOUSING.
   4.  WHEN  A  MUNICIPALITY'S  HOUSING ELEMENT INCLUDES THE PROVISION OF
 RENTAL HOUSING UNITS IN A COMMUNITY RESIDENCE FOR PERSONS WITH  A  DISA-
 BILITY,  OR IN TRANSITIONAL HOUSING, WHICH WILL BE AFFORDABLE TO PERSONS
 OF LOW- AND MODERATE-INCOME, AND FOR WHICH ADEQUATE MEASURES  TO  RETAIN
 SUCH  AFFORDABILITY PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS
 SECTION ARE INCLUDED IN THE HOUSING ELEMENT, THOSE HOUSING  UNITS  SHALL
 BE  FULLY  CREDITED  TOWARDS  THE FULFILLMENT OF THE MUNICIPALITY'S FAIR
 SHARE OF LOW- AND MODERATE-INCOME  HOUSING.  A  MUNICIPALITY  SHALL  NOT
 CREDIT  TRANSITIONAL  HOUSING UNITS TOWARDS MORE THAN TEN PERCENT OF THE
 MUNICIPALITY'S FAIR SHARE OBLIGATION.
   5. IT HAVING BEEN DETERMINED BY THE LEGISLATURE THAT THE PROVISION  OF
 HOUSING  UNDER THIS ARTICLE IS A PUBLIC PURPOSE, A MUNICIPALITY OR MUNI-
 CIPALITIES MAY UTILIZE PUBLIC MONIES TO MAKE DONATIONS, GRANTS OR  LOANS
 OF  PUBLIC  FUNDS  FOR THE REHABILITATION OF DEFICIENT HOUSING UNITS AND
 S. 6958                            12
 
 THE PROVISION OF NEW OR SUBSTANTIALLY REHABILITATED HOUSING FOR LOW- AND
 MODERATE-INCOME PERSONS, PROVIDING THAT ANY PRIVATE ADVANTAGE  IS  INCI-
 DENTAL.
   6.  A  MUNICIPALITY  THAT HAS RECEIVED APPROVAL OF ITS HOUSING ELEMENT
 AND FAIR SHARE PLAN  FOR  THE  CURRENT  ROUND,  AND  THAT  HAS  ACTUALLY
 EFFECTED  THE  CONSTRUCTION  OF THE AFFORDABLE HOUSING UNITS IT IS OBLI-
 GATED TO PROVIDE, MAY AMEND ITS AFFORDABLE  HOUSING  ELEMENT  OR  ZONING
 ORDINANCES WITHOUT LOSING IMMUNITY FROM EXCLUSIONARY ZONING LITIGATION.
   7.  WHENEVER  AFFORDABLE  HOUSING  UNITS  ARE  PROPOSED TO BE PROVIDED
 THROUGH AN  INCLUSIONARY  DEVELOPMENT,  A  MUNICIPALITY  SHALL  PROVIDE,
 THROUGH  ITS  ZONING  POWERS,  INCENTIVES  TO THE DEVELOPER, WHICH SHALL
 INCLUDE INCREASED DENSITIES AND REDUCED COSTS.
   8. A MUNICIPALITY AND A DEVELOPER MAY  REQUEST  A  MODIFICATION  OF  A
 COMPLIANCE CERTIFICATION INVOLVING REDUCED AFFORDABLE HOUSING SET-ASIDES
 OR  INCREASED  DENSITIES TO ENSURE THE ECONOMIC FEASIBILITY OF AN INCLU-
 SIONARY DEVELOPMENT, IF ANY SUCH APPLICATION DEMONSTRATES HOW ANY SHORT-
 FALL IN MEETING  THE  MUNICIPAL  FAIR  SHARE  OBLIGATION  WILL  THEN  BE
 ADDRESSED.  SUCH  A  REQUEST MAY BE GRANTED ONLY IF THE MUNICIPALITY AND
 DEVELOPER HAVE DEMONSTRATED THAT THE PROJECT HAS BEEN IMPACTED BY MARKET
 CONDITIONS BEYOND THEIR REASONABLE CONTROL.
   9. A MUNICIPALITY MAY ENTER INTO AN  AGREEMENT  WITH  A  DEVELOPER  OR
 RESIDENTIAL  DEVELOPMENT  OWNER  TO  PROVIDE A PREFERENCE FOR AFFORDABLE
 HOUSING TO LOW- AND MODERATE-INCOME VETERANS, AS DEFINED IN SECTION  ONE
 OF  THE VETERANS' SERVICES LAW, OF UP TO FIFTY PERCENT OF THE AFFORDABLE
 UNITS IN THAT PARTICULAR PROJECT. THIS PREFERENCE SHALL  BE  ESTABLISHED
 IN  THE  APPLICANT  SELECTION  PROCESS FOR AVAILABLE AFFORDABLE UNITS SO
 THAT APPLICANTS WHO ARE VETERANS WHO APPLY WITHIN  NINETY  DAYS  OF  THE
 INITIAL  MARKETING PERIOD SHALL RECEIVE PREFERENCE FOR THE RENTAL OF THE
 AGREED-UPON PERCENTAGE OF AFFORDABLE UNITS. AFTER THE FIRST NINETY  DAYS
 OF  THE  INITIAL  ONE  HUNDRED  TWENTY-DAY MARKETING PERIOD, IF ANY SUCH
 UNITS SUBJECT TO THE PREFERENCE REMAIN AVAILABLE, THEN  APPLICANTS  FROM
 THE  GENERAL  PUBLIC  SHALL  BE  CONSIDERED FOR OCCUPANCY. FOLLOWING THE
 INITIAL ONE HUNDRED TWENTY-DAY MARKETING  PERIOD,  PREVIOUSLY  QUALIFIED
 APPLICANTS  AND  FUTURE  QUALIFIED  APPLICANTS WHO ARE VETERANS SHALL BE
 PLACED ON A SPECIAL WAITING LIST AS WELL AS THE  GENERAL  WAITING  LIST.
 THE  VETERANS  ON THE SPECIAL WAITING LIST SHALL BE GIVEN PREFERENCE FOR
 AFFORDABLE UNITS, AS THE UNITS BECOME AVAILABLE, WHENEVER THE PERCENTAGE
 OF PREFERENCE-OCCUPIED UNITS FALLS BELOW THE AGREED UPON PERCENTAGE. ANY
 AGREEMENT TO PROVIDE AFFORDABLE HOUSING PREFERENCES FOR VETERANS  PURSU-
 ANT  TO  THIS  SUBDIVISION  SHALL NOT AFFECT A MUNICIPALITY'S ABILITY TO
 RECEIVE CREDIT FOR THE UNIT.
   10. A MUNICIPALITY MAY NOT SATISFY MORE THAN  THIRTY  PERCENT  OF  THE
 AFFORDABLE  HOUSING  UNITS,  TO  ADDRESS ITS PROSPECTIVE NEED AFFORDABLE
 HOUSING OBLIGATION THROUGH THE CREATION  OF  AGE-RESTRICTED  HOUSING.  A
 MUNICIPALITY  SHALL  SATISFY  A  MINIMUM  OF FIFTY PERCENT OF THE ACTUAL
 AFFORDABLE HOUSING UNITS CREATED TO ADDRESS ITS PROSPECTIVE NEED AFFORD-
 ABLE HOUSING OBLIGATION THROUGH THE CREATION  OF  HOUSING  AVAILABLE  TO
 FAMILIES WITH CHILDREN AND OTHERWISE IN COMPLIANCE WITH THE REQUIREMENTS
 AND  CONTROLS  ESTABLISHED  PURSUANT TO SUBDIVISION SIX OF SECTION SEVEN
 HUNDRED FOURTEEN OF THIS ARTICLE. A MUNICIPALITY SHALL SATISFY A MINIMUM
 OF TWENTY-FIVE PERCENT OF THE ACTUAL AFFORDABLE HOUSING UNITS TO ADDRESS
 ITS PROSPECTIVE NEED AFFORDABLE HOUSING OBLIGATION, THROUGH RENTAL HOUS-
 ING, INCLUDING AT LEAST HALF OF THAT NUMBER AVAILABLE TO  FAMILIES  WITH
 CHILDREN.  ALL  UNITS  REFERRED TO IN THIS SECTION SHALL OTHERWISE BE IN
 COMPLIANCE WITH THE REQUIREMENTS AND CONTROLS  ESTABLISHED  PURSUANT  TO
 SUBDIVISION SIX OF SECTION SEVEN HUNDRED FOURTEEN OF THIS ARTICLE.
 S. 6958                            13
 
   11. THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TO REQUIRE A
 MUNICIPALITY  TO FUND INFRASTRUCTURE IMPROVEMENTS FOR AFFORDABLE HOUSING
 PROJECTS BEYOND ANY COMMITMENTS MADE IN A FAIR SHARE  PLAN  AND  HOUSING
 ELEMENT  THAT HAS BEEN PROVIDED WITH COMPLIANCE CERTIFICATION. A MUNICI-
 PALITY  MAY  FUND  INFRASTRUCTURE  IMPROVEMENTS  FOR  AFFORDABLE HOUSING
 PROJECTS, THROUGH THE ADOPTION  OF  A  DEVELOPMENT  AGREEMENT  WITH  THE
 APPLICANT,  BEYOND ANY COMMITMENTS MADE IN A FAIR SHARE PLAN AND HOUSING
 ELEMENT THAT HAS BEEN PROVIDED WITH COMPLIANCE CERTIFICATION.
   § 709. ACCESSIBILITY REQUIREMENT FOR NEW  CONSTRUCTION.  1.  BEGINNING
 UPON  THE EFFECTIVE DATE OF THIS ARTICLE, ANY NEW CONSTRUCTION FOR WHICH
 CREDIT IS SOUGHT AGAINST A FAIR SHARE OBLIGATION  SHALL  BE  ACCESSIBLE.
 FOR  THE  PURPOSES  OF  THIS  SECTION,  "NEW CONSTRUCTION" SHALL MEAN AN
 ENTIRELY NEW  IMPROVEMENT  NOT  PREVIOUSLY  OCCUPIED  OR  USED  FOR  ANY
 PURPOSE.
   2.  A  MUNICIPALITY  MAY TAKE SUCH MEASURES AS ARE NECESSARY TO ASSURE
 COMPLIANCE WITH THE ACCESSIBILITY REQUIREMENTS IMPOSED PURSUANT TO  THIS
 SECTION,  INCLUDING  THE  INSPECTION  OF  THOSE  UNITS  WHICH  ARE NEWLY
 CONSTRUCTED AND RECEIVE HOUSING CREDIT FOR ACCESSIBILITY, AS PART OF THE
 MONITORING WHICH OCCURS PURSUANT TO THIS ARTICLE. IF ANY UNITS FOR WHICH
 CREDIT WAS GRANTED IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE ARE
 FOUND NOT TO CONFORM TO THE REQUIREMENTS  OF  THIS  SECTION,  ANY  PARTY
 REPRESENTING  THE  INTERESTS  OF HOUSEHOLDS WITH DISABILITIES MAY SEEK A
 MODIFICATION TO THE APPROVAL OF THE MUNICIPAL FAIR SHARE PLAN TO REQUIRE
 THE MUNICIPALITY TO AMEND ITS FAIR SHARE PLAN WITHIN NINETY DAYS OF SUCH
 A FINDING, TO ADDRESS ITS FAIR SHARE OBLIGATION PURSUANT TO  THIS  ARTI-
 CLE.    IN THE EVENT THAT THE MUNICIPALITY FAILS TO AMEND ITS FAIR SHARE
 PLAN WITHIN NINETY DAYS OF SUCH A FINDING, THE MUNICIPALITY  SHALL  LOSE
 IMMUNITY  TO EXCLUSIONARY ZONING LITIGATION FOR THE PORTION OF ITS OBLI-
 GATION THAT IS FOUND NOT TO CONFORM TO THE REQUIREMENTS OF THIS SECTION.
   § 710. PROHIBITION OF DEMOLITION OF CERTAIN RESIDENTIAL STRUCTURES FOR
 FAIR HOUSING PURPOSES. NOTHING IN THIS ARTICLE  SHALL  BE  CONSTRUED  TO
 REQUIRE THAT A MUNICIPALITY FULFILL ALL OR ANY PORTION OF ITS FAIR SHARE
 HOUSING  OBLIGATION  THROUGH PERMITTING THE DEVELOPMENT OR REDEVELOPMENT
 OF PROPERTY WITHIN THE MUNICIPALITY ON WHICH IS  LOCATED  A  RESIDENTIAL
 STRUCTURE  WHICH  HAS  NOT  BEEN DECLARED UNFIT, OR WHICH WAS WITHIN THE
 PREVIOUS THREE YEARS NEGLIGENTLY OR WILLFULLY RENDERED UNFIT, FOR  HUMAN
 OCCUPANCY  OR USE, AND WHICH IS SITUATED ON A LOT OF LESS THAN TWO ACRES
 OF LAND OR ON A LOT FORMED BY MERGING TWO OR  MORE  SUCH  LOTS,  IF  THE
 DEVELOPMENT OR REDEVELOPMENT WOULD REQUIRE THE DEMOLITION OF SUCH STRUC-
 TURE.
   §  711.  MUNICIPALITIES; PROVISION FOR PURCHASE OF CERTAIN RESIDENTIAL
 PROPERTY. 1. NOTWITHSTANDING THE PROVISIONS OF THE EMINENT DOMAIN PROCE-
 DURE LAW, OR OF ANY OTHER LAW, RULE OR REGULATION  TO  THE  CONTRARY,  A
 MUNICIPALITY MAY PROVIDE FOR THE PURCHASE OF PRIVATELY OWNED RESIDENTIAL
 PROPERTY  AT  THE VALUE OF ALL LIENS SECURED BY REAL PROPERTY, EXCLUDING
 ANY TAX LIEN TO WHICH THE PROPERTY IS SUBJECT AND  INCLUDE  THOSE  UNITS
 TOWARD  THE FULFILLMENT OF ITS FAIR SHARE HOUSING OBLIGATION PURSUANT TO
 THE PROVISIONS OF THIS ARTICLE. ANY SUCH  PURCHASE  UNDER  THIS  SECTION
 SHALL BE MADE PURSUANT TO AND CONSISTENT WITH REGULATIONS PROMULGATED BY
 THE COMMISSIONER PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   2.  THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
 SARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
   § 712. CERTIFICATION OF HOUSING ELEMENT.   1. IF  A  MUNICIPALITY  HAS
 ADOPTED  A HOUSING ELEMENT AND FAIR SHARE PLAN PURSUANT TO SECTION SEVEN
 HUNDRED FIVE OF THIS ARTICLE, BUT HAS FAILED TO  SATISFY  THE  DEADLINES
 ESTABLISHED  IN  SUCH SECTION, FOR ANY ROUND OF AFFORDABLE HOUSING OBLI-
 S. 6958                            14
 
 GATIONS, THE MUNICIPALITY MAY REQUEST AND BE PROVIDED WITH A GRACE PERI-
 OD PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN  HUNDRED  FIVE  OF  THIS
 ARTICLE,  IF AUTHORIZED BY THE PROGRAM OR COUNTY-LEVEL HOUSING JUDGE, AS
 DETERMINED  BY THE RULES OF COURT. IF A MUNICIPALITY THAT HAS NOT SATIS-
 FIED THIS DEADLINE IS NOT PROVIDED WITH A GRACE PERIOD, THE MUNICIPALITY
 MAY INSTITUTE AN ACTION FOR DECLARATORY JUDGMENT GRANTING IT  REPOSE  IN
 THE SUPREME COURT FOR THE TEN-YEAR PERIOD CONSTITUTING THE CURRENT ROUND
 OF  FAIR SHARE OBLIGATIONS. THE MUNICIPALITY SHALL PUBLISH NOTICE OF ITS
 FILING OF A DECLARATORY JUDGMENT ACTION IN A NEWSPAPER OF GENERAL CIRCU-
 LATION WITHIN THE MUNICIPALITY AND COUNTY AND SHALL  MAKE  AVAILABLE  TO
 THE  PUBLIC INFORMATION ON THE ELEMENT AND ORDINANCES BY SUBMITTING SUCH
 INFORMATION TO THE PROGRAM TO BE PUBLISHED ON THE  INTERNET  WEBSITE  OF
 THE  PROGRAM IN ACCORDANCE WITH SECTION SEVEN HUNDRED FIVE OF THIS ARTI-
 CLE.
   2. (A) A MUNICIPALITY, THE ATTORNEY GENERAL OR  ANY  OTHER  INTERESTED
 PARTY  MAY FILE AN ACTION THROUGH THE PROGRAM SEEKING A REALISTIC OPPOR-
 TUNITY REVIEW AT THE MIDPOINT OF  THE  CERTIFICATION  PERIOD  AND  SHALL
 PROVIDE  FOR  NOTICE  TO  THE  PUBLIC, INCLUDING A REALISTIC OPPORTUNITY
 REVIEW OF ANY INCLUSIONARY DEVELOPMENT SITE IN THE HOUSING  ELEMENT  AND
 FAIR  SHARE  PLAN  THAT  HAS NOT RECEIVED PRELIMINARY SITE PLAN APPROVAL
 PRIOR TO THE MIDPOINT OF THE TEN-YEAR ROUND. IF SUCH AN ACTION IS INITI-
 ATED BY A MUNICIPALITY, THE MUNICIPALITY MAY PROPOSE ONE OR MORE  ALTER-
 NATIVE SITES WITH AN ACCOMPANYING DEVELOPMENT PLAN OR PLANS THAT PROVIDE
 A  REALISTIC  OPPORTUNITY FOR THE SAME NUMBER OF AFFORDABLE UNITS AND IS
 OTHERWISE IN COMPLIANCE WITH THE PROVISIONS OF  THIS  ARTICLE,  PROVIDED
 THAT  IF  THE FACTS DEMONSTRATE THAT THE MUNICIPALITY OR ITS SUBORDINATE
 BOARDS HAVE PREVENTED THE SITE FROM RECEIVING SITE PLAN  APPROVAL,  THEN
 THE PROGRAM SHALL REJECT THE MUNICIPALITY'S CHALLENGE.
   (B)  ANY  PARTY  MAY  FILE  A REQUEST FOR INFORMATION FROM THE PROGRAM
 REGARDING THE PROGRESS OF DEVELOPMENT AT  ANY  INCLUSIONARY  DEVELOPMENT
 SITE  IN THE HOUSING ELEMENT AND FAIR SHARE PLAN OF A MUNICIPALITY OR AT
 ANY ALTERNATIVE SITE PROPOSED  BY  THE  MUNICIPALITY.  THE  PROGRAM  MAY
 RESPOND TO A REQUEST INDEPENDENTLY OR IN COORDINATION WITH THE DIVISION.
   §  713.  AFFORDABLE  HOUSING DISPUTE RESOLUTION PROGRAM.   1. THERE IS
 ESTABLISHED AN AFFORDABLE HOUSING DISPUTE RESOLUTION PROGRAM THAT  SHALL
 HAVE  THE  PURPOSE  OF  EFFICIENTLY  RESOLVING  DISPUTES  INVOLVING  THE
 PROVISIONS OF THIS ARTICLE, TO CONSIST OF AN ODD NUMBER OF  MEMBERS,  OF
 AT  LEAST THREE AND NO MORE THAN SEVEN MEMBERS WHO SHALL LEAD THE ADMIN-
 ISTRATION OF THE PROGRAM. THE CHIEF ADMINISTRATOR OF  THE  COURTS  SHALL
 UPDATE  THE  ASSIGNMENT  OF  DESIGNATED HOUSING JUDGES TO INDICATE WHICH
 CURRENT OR RETIRED AND ON-RECALL JUDGES OF THE SUPREME COURT SHALL SERVE
 AS MEMBERS, WITHIN SIXTY DAYS  FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS
 SECTION.  THE CHIEF ADMINISTRATOR OF THE COURTS MAY APPOINT OTHER QUALI-
 FIED EXPERTS AS MEMBERS IF SUFFICIENT CURRENT  AND  RETIRED  JUDGES  ARE
 UNAVAILABLE.  THE  CHIEF  ADMINISTRATOR  OF  THE  COURTS SHALL TAKE INTO
 CONSIDERATION IN MAKING SUCH APPOINTMENTS EXPERIENCE IN  THE  EMPLOYMENT
 OF  ALTERNATIVE  DISPUTE  RESOLUTION  METHODS  AND  IN  RELEVANT SUBJECT
 MATTER.
   2. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL DESIGNATE A  MEMBER  TO
 SERVE  AS  CHAIR.  THE  CHIEF ADMINISTRATOR OF THE COURTS SHALL MAKE NEW
 APPOINTMENTS AS NEEDS ARISE FOR NEW APPOINTMENTS.
   3. THE PROGRAM, IN ITS DISCRETION AND IN  ACCORDANCE  WITH  APPLICABLE
 COURT  RULES,  MAY CONSULT OR EMPLOY THE SERVICES OF ONE OR MORE SPECIAL
 MASTERS OR STAFF TO ASSIST IT  IN  RENDERING  DETERMINATIONS,  RESOLVING
 DISPUTES,  AND  FACILITATING  COMMUNICATION AS REQUIRED IN SECTION SEVEN
 HUNDRED FIVE OF THIS ARTICLE. IN ADDITION, THE PROGRAM  MAY  INCORPORATE
 S. 6958                            15

 ANY EXISTING OR NEWLY ESTABLISHED COURT MEDIATION OR ALTERNATIVE DISPUTE
 RESOLUTION  PROCESS  TO  ASSIST  THE  PROGRAM  IN RESOLVING DISPUTES AND
 FACILITATING COMMUNICATION AMONG MUNICIPALITIES AND INTERESTED PARTIES.
   4.  THE  CHIEF  ADMINISTRATOR  OF  THE COURTS SHALL ESTABLISH A FILING
 SYSTEM VIA AN INTERNET WEBSITE IN WHICH THE PUBLIC IS  ABLE  TO  ACCESS,
 WITHOUT  COST,  FILINGS  MADE  PURSUANT  TO  THIS ARTICLE AND SUCH OTHER
 RELATED FILINGS AS THE CHIEF ADMINISTRATOR OF THE COURTS MAY INCLUDE  ON
 THE FILING SYSTEM.
   5. THE CHIEF ADMINISTRATOR OF THE COURTS MAY ASSIGN ADDITIONAL RESPON-
 SIBILITIES  TO  THE  PROGRAM  FOR  RESOLVING  DISPUTES ARISING OUT OF OR
 RELATED TO THE PROVISIONS OF THIS ARTICLE.
   6. THE CHIEF ADMINISTRATOR OF THE COURTS  SHALL  ESTABLISH  PROCEDURES
 FOR   THE  PURPOSE  OF  EFFICIENTLY  RESOLVING  DISPUTES  INVOLVING  THE
 PROVISIONS OF THIS SECTION, FOR CIRCUMSTANCES IN WHICH  THE  PROGRAM  IS
 UNABLE  TO  ADDRESS  THE DISPUTE WITHIN THE TIME LIMITATIONS ESTABLISHED
 PURSUANT TO SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE. AS A PART OF THE
 PROCEDURES ESTABLISHED PURSUANT TO THIS SECTION, IN ORDER TO  FACILITATE
 AN  APPROPRIATE  LEVEL  OF LOCALIZED CONTROL OF AFFORDABLE HOUSING DECI-
 SIONS, FOR EACH VICINAGE, THE CHIEF ADMINISTRATOR OF  THE  COURTS  SHALL
 DESIGNATE  A  SUPREME  COURT  JUDGE  WHO  SITS WITHIN THE VICINAGE, OR A
 RETIRED JUDGE WHO, DURING THE JUDGE'S TENURE AS A JUDGE,  SERVED  WITHIN
 THE VICINAGE, TO SERVE AS COUNTY-LEVEL HOUSING JUDGE TO RESOLVE DISPUTES
 OVER THE COMPLIANCE, OF FAIR SHARE PLANS AND HOUSING ELEMENTS OF MUNICI-
 PALITIES WITHIN THEIR DESIGNATED COUNTY OR COUNTIES, WITH THE PROVISIONS
 OF  THIS ARTICLE, AS WELL AS DISPUTES THAT ARISE WITH RESPECT TO ONGOING
 COMPLIANCE OR NONCOMPLIANCE  WITH  OBLIGATIONS  CREATED  BY  FAIR  SHARE
 PLANS,  HOUSING  ELEMENTS,  AND  THE PROVISIONS OF THIS ARTICLE. A JUDGE
 SHALL BE PERMITTED TO SERVE AS A COUNTY-LEVEL  HOUSING  JUDGE  FOR  MORE
 THAN ONE COUNTY IN THE SAME VICINAGE.
   7.  THE  CHIEF ADMINISTRATOR OF THE COURTS SHALL PROMULGATE, MAINTAIN,
 AND APPLY A CODE OF ETHICS THAT IS MODELED UPON  THE  CODE  OF  JUDICIAL
 CONDUCT  OF  THE AMERICAN BAR ASSOCIATION, AND MAY ESTABLISH ADDITIONAL,
 MORE RESTRICTIVE ETHICAL STANDARDS IN ORDER TO MEET THE  SPECIFIC  NEEDS
 OF THE PROGRAM AND OF COUNTY-LEVEL HOUSING JUDGES.
   §  714.  AFFORDABLE  HOUSING PROGRAMS. 1. THE DIVISION SHALL ESTABLISH
 AFFORDABLE HOUSING PROGRAMS TO  ASSIST  MUNICIPALITIES  IN  MEETING  THE
 OBLIGATION OF DEVELOPING COMMUNITIES TO PROVIDE LOW- AND MODERATE-INCOME
 HOUSING.
   2.  THE DIVISION SHALL TO THE EXTENT OF AVAILABLE FUNDS, AWARD ASSIST-
 ANCE TO AFFORDABLE HOUSING  PROGRAMS  LOCATED  IN  MUNICIPALITIES  WHOSE
 HOUSING  ELEMENTS  HAVE OBTAINED COMPLIANCE CERTIFICATION, OR WHICH HAVE
 BEEN SUBJECT TO A BUILDER'S REMEDY. DURING ANY PERIOD WHICH  THE  AGENCY
 MAY  APPROVE,  THE  DIVISION MAY ASSIST AFFORDABLE HOUSING PROGRAMS THAT
 HAVE A  PENDING  REQUEST  FOR  COMPLIANCE  CERTIFICATION;  PROVIDED  THE
 AFFORDABLE HOUSING PROGRAM WILL MEET ALL OR IN PART A MUNICIPAL LOW- AND
 MODERATE-INCOME HOUSING OBLIGATION.
   3.  ASSISTANCE  PROVIDED PURSUANT TO THIS SECTION MAY TAKE THE FORM OF
 GRANTS OR AWARDS TO MUNICIPALITIES, PROSPECTIVE HOME PURCHASERS,  OR  AS
 CONTRIBUTIONS  TO THE ISSUANCE OF MORTGAGE REVENUE BONDS OR MULTI-FAMILY
 HOUSING DEVELOPMENT BONDS WHICH HAVE THE EFFECT OF ACHIEVING THE GOAL OF
 PRODUCING AFFORDABLE HOUSING.
   4. AFFORDABLE HOUSING PROGRAMS WHICH MAY BE FINANCED OR ASSISTED UNDER
 THIS PROVISION MAY INCLUDE, BUT ARE NOT LIMITED TO:
   (A) ASSISTANCE FOR HOME PURCHASE AND  IMPROVEMENT  INCLUDING  INTEREST
 RATE  ASSISTANCE,  DOWN  PAYMENT AND CLOSING COST ASSISTANCE, AND DIRECT
 GRANTS FOR PRINCIPAL REDUCTION;
 S. 6958                            16
 
   (B)  RENTAL  PROGRAMS  INCLUDING  LOANS  OR  GRANTS  FOR  DEVELOPMENTS
 CONTAINING  LOW- AND MODERATE-INCOME HOUSING, MODERATE REHABILITATION OF
 EXISTING RENTAL HOUSING, CONGREGATE CARE AND RETIREMENT FACILITIES;
   (C) FINANCIAL ASSISTANCE FOR THE CONVERSION OF NONRESIDENTIAL SPACE TO
 RESIDENCES;
   (D)  OTHER  HOUSING  PROGRAMS  FOR  LOW-  AND MODERATE-INCOME HOUSING,
 INCLUDING INFRASTRUCTURE PROJECTS DIRECTLY FACILITATING THE CONSTRUCTION
 OF LOW- AND MODERATE-INCOME HOUSING; AND
   (E) GRANTS OR LOANS TO MUNICIPALITIES, HOUSING SPONSORS AND  COMMUNITY
 ORGANIZATIONS  TO  ENCOURAGE  DEVELOPMENT  OF  INNOVATIVE  APPROACHES TO
 AFFORDABLE HOUSING, INCLUDING:
   (I) SUCH ADVISORY, CONSULTATIVE, TRAINING AND EDUCATIONAL SERVICES  AS
 WILL  ASSIST IN THE PLANNING, CONSTRUCTION, REHABILITATION AND OPERATION
 OF HOUSING; AND
   (II) ENCOURAGING RESEARCH IN AND DEMONSTRATION PROJECTS TO DEVELOP NEW
 AND BETTER TECHNIQUES AND METHODS FOR INCREASING THE SUPPLY,  TYPES  AND
 FINANCING OF HOUSING AND HOUSING PROJECTS IN THE STATE.
   5.  THE  DIVISION  SHALL ESTABLISH PROCEDURES AND GUIDELINES GOVERNING
 THE QUALIFICATIONS OF APPLICANTS, THE  APPLICATION  PROCEDURES  AND  THE
 CRITERIA  FOR  AWARDING GRANTS AND LOANS FOR AFFORDABLE HOUSING PROGRAMS
 AND THE STANDARDS FOR ESTABLISHING THE AMOUNT, TERMS AND  CONDITIONS  OF
 EACH GRANT OR LOAN.
   6.  THE  DIVISION  SHALL ESTABLISH REQUIREMENTS AND CONTROLS TO ENSURE
 THE MAINTENANCE OF HOUSING ASSISTED UNDER THIS ARTICLE AS AFFORDABLE  TO
 LOW-  AND MODERATE-INCOME HOUSEHOLDS FOR A PERIOD OF NOT LESS THAN FORTY
 YEARS FOR NEWLY CREATED RENTAL UNITS, THIRTY YEARS FOR  FOR-SALE  UNITS,
 AND  THIRTY YEARS FOR HOUSING UNITS FOR WHICH AFFORDABILITY CONTROLS ARE
 EXTENDED FOR A NEW TERM OF  AFFORDABILITY,  PROVIDED  THAT  THE  MINIMUM
 EXTENSION  TERM  MAY  BE LIMITED TO NO LESS THAN TWENTY YEARS AS LONG AS
 THE ORIGINAL AND EXTENDED TERMS, IN COMBINATION, TOTAL  AT  LEAST  SIXTY
 YEARS.   ANY ONE HUNDRED PERCENT AFFORDABLE RENTAL PROPERTY SHALL HAVE A
 RIGHT TO EXTINGUISH A DEED RESTRICTION REGARDLESS  OF  ORIGINAL  LENGTH,
 BEGINNING  THIRTY  YEARS  FOLLOWING  THE  START OF THE DEED RESTRICTION,
 PROVIDED A REFINANCING OR REHABILITATION, OR BOTH, FOR  THE  PURPOSE  OF
 PRESERVATION  IS  COMMENCED  AND THAT A NEW DEED RESTRICTION OF AT LEAST
 THIRTY YEARS IS PROVIDED. A MUNICIPALITY SHALL BE  ELIGIBLE  TO  RECEIVE
 CREDITS FOR ALL PRESERVED UNITS PURSUANT TO THIS SUBDIVISION, AS LONG AS
 THE  ORIGINAL  AND  EXTENDED  TERMS TOTAL AT LEAST SIXTY YEARS, AND THIS
 CREDIT MAY BE OBTAINED AT THE TIME  OF  PRESERVATION.  ALL  ONE  HUNDRED
 PERCENT AFFORDABLE PROJECTS SHALL BE ELIGIBLE FOR ANY AFFORDABLE HOUSING
 PRESERVATION  PROGRAM  ADMINISTERED BY THE STATE, BEGINNING THIRTY YEARS
 FOLLOWING THE START OF THE  DEED  RESTRICTION,  REGARDLESS  OF  ORIGINAL
 LENGTH  OF  THE  DEED  RESTRICTION.  ANY STATE ADMINISTERED PRESERVATION
 PROGRAM MAY ALLOW A REFINANCING FUNDING PROCESS TO COMMENCE PRIOR TO THE
 THIRTIETH YEAR OF THE DEED RESTRICTION WHEN SUCH REFINANCING OR REHABIL-
 ITATION FUNDING IS NEEDED TO PRESERVE AFFORDABLE HOUSING.  THE  CONTROLS
 MAY  INCLUDE,  AMONG  OTHERS,  REQUIREMENTS  FOR RECAPTURE OF ASSISTANCE
 PROVIDED PURSUANT TO THIS ARTICLE OR RESTRICTIONS ON RETURN ON EQUITY IN
 THE EVENT OF FAILURE TO MEET THE REQUIREMENTS OF THE PROGRAM.
   7. (A) THE DIVISION SHALL PROMULGATE PROCESSES AND STANDARDS  FOR  THE
 CERTIFICATION OF ADMINISTRATIVE AGENTS AND MUNICIPAL HOUSING LIAISONS IN
 THE STATE, AS WELL AS STANDARDS FOR MEASURING PERFORMANCE OF AND ENFORC-
 ING  COMPLIANCE  BY ADMINISTRATIVE AGENTS AND MUNICIPAL HOUSING LIAISONS
 IN IMPLEMENTING THE AFFORDABLE HOUSING REQUIREMENTS AND CONTROLS  ESTAB-
 LISHED PURSUANT TO SUBDIVISION SIX OF THIS SECTION.
 S. 6958                            17
 
   (B)  ADMINISTRATIVE  AGENTS  SHALL BE RESPONSIBLE FOR IMPLEMENTING THE
 REQUIREMENTS AND CONTROLS SET BY THE REGULATIONS PROMULGATED PURSUANT TO
 SUBDIVISION SIX OF THIS SECTION. THE  DIVISION  MAY  BRING  VIA  SUMMARY
 PROCEEDING  ANY  FINDINGS OF VIOLATION OF THE RESPONSIBILITIES SET FORTH
 IN  THIS  SECTION  BEFORE  A  COUNTY-LEVEL  HOUSING  JUDGE TO DOCKET THE
 VIOLATION AND ISSUE CORRECTIVE ORDERS AND LEVY FINES.
   (C) MUNICIPAL HOUSING LIAISONS SHALL  BE  RESPONSIBLE  FOR  MONITORING
 ADMINISTRATIVE AGENTS WITHIN THEIR MUNICIPALITY'S JURISDICTION TO ENSURE
 COMPLIANCE  WITH  THE  REQUIREMENTS AND CONTROLS SET BY REGULATION UNDER
 SUBDIVISION SIX OF THIS SECTION.
   (D) MUNICIPAL HOUSING LIAISONS, THE DIVISION, AND  INTERESTED  PARTIES
 MAY  BRING  A CHALLENGE BEFORE A COUNTY-LEVEL HOUSING JUDGE TO DETERMINE
 WHETHER PROPERTIES SUBJECT TO THE REGULATIONS SET FORTH BY THIS  SECTION
 ARE  OUT  OF  COMPLIANCE  WITH  THE REGULATIONS. A FINDING OF DELIBERATE
 NONCOMPLIANCE MAY RESULT IN THE  DIVISION  REMOVING  THE  ADMINISTRATIVE
 AGENT'S CERTIFICATION.
   (E)  A COUNTY-LEVEL HOUSING JUDGE MAY ISSUE FINES AND ORDER CORRECTIVE
 ACTIONS FOR VIOLATIONS AND MAY CONSIDER PATTERNS OF VIOLATIONS IN DETER-
 MINING WHETHER A MUNICIPALITY  IS  MEETING  ITS  OBLIGATIONS  UNDER  THE
 COMPLIANCE  CERTIFICATION  ESTABLISHED  BY SECTION SEVEN HUNDRED FIVE OF
 THIS ARTICLE.
   (F) THE DIVISION SHALL PROMULGATE ALL RULES AND REGULATIONS  NECESSARY
 TO IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION.
   §  715.  ALLOCATION OF FEDERAL LOW-INCOME TAX CREDITS. NOTWITHSTANDING
 ANY LAW, RULE OR REGULATION TO THE CONTRARY, THE ALLOCATION  OF  FEDERAL
 LOW-INCOME TAX CREDITS SHALL BE MADE TO THE FULL EXTENT SUCH CREDITS ARE
 PERMITTED  TO  BE  ALLOCATED UNDER FEDERAL LAW, INCLUDING ALLOCATIONS OF
 FOUR PERCENT OR NINE PERCENT FEDERAL LOW-INCOME TAX CREDITS AND  INCLUD-
 ING ALLOCATIONS ALLOWABLE FOR PARTIAL CREDITS. THE AFFORDABLE PORTION OF
 ANY  MIXED  INCOME OR MIXED-USE DEVELOPMENT THAT IS PART OF A FAIR SHARE
 HOUSING PLAN THAT HAS OBTAINED  COMPLIANCE  CERTIFICATION,  INCLUDING  A
 COURT-APPROVED  JUDGMENT  OF REPOSE OR COMPLIANCE, SHALL BE PERMITTED TO
 RECEIVE ALLOCATIONS OF LOW-INCOME TAX CREDITS, PROVIDED THAT THE  APPLI-
 CANT  CAN  CONCLUSIVELY  DEMONSTRATE THAT THE MARKET RATE RESIDENTIAL OR
 COMMERCIAL UNITS ARE  UNABLE  TO  INTERNALLY  SUBSIDIZE  THE  AFFORDABLE
 UNITS, AND THE AFFORDABLE UNITS ARE DEVELOPED CONTEMPORANEOUSLY WITH THE
 COMMERCIAL OR MARKET RATE RESIDENTIAL UNITS.
   §  716.  ANNUAL REPORT ON ACTIVITIES PROMOTING AFFORDABLE HOUSING. THE
 DIVISION SHALL MAINTAIN ON ITS WEBSITE AND  PUBLISH  ANNUALLY  A  REPORT
 CONCERNING  ITS  ACTIVITIES  DURING  THE YEAR IN PROMOTION OF AFFORDABLE
 HOUSING, INCLUDING ANY ACTIVITY PURSUANT TO SECTION SEVEN HUNDRED  FOUR-
 TEEN  OF  THIS  ARTICLE  AND SECTION NINETY-NINE-SS OF THE STATE FINANCE
 LAW. THE REPORT SHALL DETAIL THE NUMBER AND AMOUNTS  OF  GRANTS,  LOANS,
 THE  AVERAGE  LOAN  AMOUNT  MADE,  THE AMOUNTS OF LOW INCOME TAX CREDITS
 ALLOCATED BY THE DIVISION, BY  LOCATION,  AND  THE  NUMBER  OF  PROPOSED
 UNITS,  AND  ANY ADDITIONAL INFORMATION WHICH THE DIVISION DEEMS INFORM-
 ATIVE TO THE PUBLIC.
   § 717. ADMINISTRATION OF ONLINE PORTAL FOR AFFORDABLE HOUSING LISTINGS
 AND SEARCHES. THE DIVISION SHALL ESTABLISH A HOUSING RESOURCE CENTER, AS
 AN ONLINE PORTAL FOR INCOME-RESTRICTED HOUSING LISTINGS AND SEARCHES.
   § 718. MARKETING OF AFFORDABLE HOUSING UNITS; POSTING; LOTTERY;  PROOF
 OF LISTING; PENALTIES FOR NONCOMPLIANCE. 1. AS USED IN THIS SECTION, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "AFFIRMATIVE  MARKETING PLAN" MEANS A REGIONAL MARKETING STRATEGY
 DESIGNED TO ATTRACT BUYERS, RENTERS, OR BOTH TO HOUSING UNITS WHICH  ARE
 BEING  MARKETED  BY  A  DEVELOPER  OR  SPONSOR OF AFFORDABLE HOUSING. AN
 S. 6958                            18

 AFFIRMATIVE MARKETING PLAN SHALL TARGET ELIGIBLE PERSONS WHO  ARE  LEAST
 LIKELY TO APPLY FOR AFFORDABLE UNITS IN THE REGION.
   (B)  "DEVELOPMENT"  MEANS ANY RESIDENTIAL DEVELOPMENT IN WHICH HOUSING
 FOR VERY LOW-, LOW-, OR MODERATE-INCOME HOUSEHOLDS IS REQUIRED,  INCLUD-
 ING  DEVELOPMENTS  RECEIVING  CREDIT  IN A MUNICIPAL HOUSING ELEMENT AND
 FAIR SHARE PLAN OR OTHERWISE APPROVED BY THE COMMITTEE OR COURT,  OR  IN
 WHICH SUCH HOUSING IS REQUIRED VIA LAND USE APPROVALS FROM ANY MUNICIPAL
 LAND USE BOARD.
   (C)  "HOUSING RESOURCE CENTER" MEANS THE ONLINE PORTAL FOR INCOME-RES-
 TRICTED HOUSING LISTINGS AND SEARCHES ESTABLISHED  PURSUANT  TO  SECTION
 SEVEN HUNDRED SEVENTEEN OF THIS ARTICLE.
   2.  EVERY  MUNICIPALITY  SHALL ESTABLISH AN AFFIRMATIVE MARKETING PLAN
 AND REQUIRE OWNERS, DEVELOPERS, PROPERTY MANAGERS, OR OTHER  ADMINISTRA-
 TIVE ENTITIES WHICH OFFER AFFORDABLE HOUSING WITHIN SUCH MUNICIPALITY TO
 IMPLEMENT SUCH AFFIRMATIVE MARKETING PLAN FOR THEIR DEVELOPMENTS.
   3. (A) THE OWNER, DEVELOPER, PROPERTY MANAGER, OR OTHER ADMINISTRATIVE
 ENTITY  REQUIRED  TO IMPLEMENT THE AFFIRMATIVE MARKETING PLAN OF A NEWLY
 CONSTRUCTED DEVELOPMENT WHERE AFFORDABLE HOUSING UNITS WILL BE LEASED OR
 SOLD FOR THE FIRST TIME SHALL BE REQUIRED TO POST A LISTING ON THE HOUS-
 ING RESOURCE CENTER OF THE AVAILABLE AFFORDABLE  HOUSING  UNITS,  ON  OR
 BEFORE  THE  EARLIER  OF:  (I) AT LEAST SIXTY DAYS PRIOR TO CONDUCTING A
 LOTTERY OF THE APPLICANTS; OR (II) WITHIN ONE  DAY  FOLLOWING  WHEN  THE
 OWNER,  DEVELOPER,  PROPERTY  MANAGER,  OR  OTHER  ADMINISTRATIVE ENTITY
 PROVIDES ANY INFORMATION REGARDING HOW TO APPLY FOR UNITS TO PROSPECTIVE
 APPLICANTS  OR  SOLICITS  ANY  APPLICATIONS  FROM  POTENTIAL  APPLICANTS
 THROUGH  ANY  OTHER  MEANS. THE POSTING SHALL INCLUDE, AT A MINIMUM, THE
 DATE THAT THE AFFORDABLE HOUSING UNITS ARE EXPECTED TO BE COMPLETED, THE
 DATE OF THE LOTTERY, THE NUMBER OF AFFORDABLE HOUSING UNITS, AN ACCOUNT-
 ING OF HOW MANY OF THE AFFORDABLE HOUSING UNITS  WILL  BE  AVAILABLE  TO
 VERY  LOW-,  LOW-, AND MODERATE-INCOME HOUSEHOLDS, AND EACH BEDROOM SIZE
 THAT WILL BE AVAILABLE.
   (B) A LOTTERY SHALL NOT TAKE PLACE  LESS  THAN  SIXTY  DAYS  FOLLOWING
 POSTING  ON  THE  HOUSING  RESOURCE  CENTER.  ANY POSTING ON THE HOUSING
 RESOURCE CENTER SHALL PROVIDE A LINK TO AN ONLINE FILLABLE FORM OR PORT-
 ABLE DOCUMENT FORMAT (PDF) FORM OF THE APPLICATION  FOR  THE  AFFORDABLE
 HOUSING  UNITS ON THE WEBSITE OF THE OWNER, DEVELOPER, PROPERTY MANAGER,
 OR OTHER ADMINISTRATIVE ENTITY AND INFORMATION ON HOW TO REQUEST A PAPER
 COPY OF THE APPLICATION FROM THE OWNER, DEVELOPER, PROPERTY MANAGER,  OR
 OTHER ADMINISTRATIVE ENTITY.
   4.  THE  OWNER,  DEVELOPER,  PROPERTY MANAGER, OR OTHER ADMINISTRATIVE
 ENTITY REQUIRED TO IMPLEMENT THE AFFIRMATIVE MARKETING PLAN OF AN EXIST-
 ING DEVELOPMENT WHERE ONE  OR  MORE  AFFORDABLE  HOUSING  UNITS  BECOMES
 AVAILABLE  SHALL  POST VACANCIES AND WAITLIST OPENINGS FOR ANY SUCH UNIT
 ON THE HOUSING RESOURCE CENTER AND THE REQUIREMENTS  SET  FORTH  IN  THE
 AFFIRMATIVE  MARKETING PLAN OF THE MUNICIPALITY WHERE THE DEVELOPMENT IS
 LOCATED. THE POSTING SHALL BE MADE WITHIN ONE DAY OF ACCEPTING  APPLICA-
 TIONS  AND  SHALL  INCLUDE,  AT  A  MINIMUM,  THE EXPECTED DATE THAT THE
 AFFORDABLE HOUSING UNITS WILL BECOME AVAILABLE, THE NUMBER OF AFFORDABLE
 HOUSING UNITS, AN ACCOUNTING OF HOW MANY OF THE AFFORDABLE HOUSING UNITS
 WILL BE AVAILABLE TO VERY LOW-, LOW-,  AND  MODERATE-INCOME  HOUSEHOLDS,
 AND EACH BEDROOM SIZE THAT WILL BE AVAILABLE.
   5.  (A)  FROM  TIME TO TIME THE OWNER, DEVELOPER, PROPERTY MANAGER, OR
 ADMINISTRATIVE ENTITY REQUIRED TO IMPLEMENT  THE  AFFIRMATIVE  MARKETING
 PLAN  OF  AN  EXISTING DEVELOPMENT MAY ELECT TO CONDUCT A NEW LOTTERY TO
 GENERATE OR EXPAND THE POOL  OF  APPLICANTS,  PROVIDED  THAT  APPLICANTS
 ALREADY  ON A WAITLIST FOR A PARTICULAR UNIT TYPE ARE NOT DISPLACED FROM
 S. 6958                            19
 
 THEIR PLACE IN THE QUEUE IN THE  LOTTERY.  IN  SUCH  CASES,  THE  OWNER,
 DEVELOPER,  PROPERTY  MANAGER,  OR  OTHER ADMINISTRATIVE ENTITY SHALL BE
 REQUIRED TO POST A LISTING ON THE HOUSING  RESOURCE  CENTER  WEBSITE  AT
 LEAST  SIXTY  DAYS PRIOR TO CONDUCTING THE LOTTERY OF THE APPLICANTS, OR
 WITHIN ONE DAY OF WHEN THE OWNER, DEVELOPER, PROPERTY MANAGER, OR  OTHER
 ADMINISTRATIVE  ENTITY  PROVIDES  ANY INFORMATION REGARDING HOW TO APPLY
 FOR THE LOTTERY TO PROSPECTIVE APPLICANTS OR SOLICITS  ANY  APPLICATIONS
 FROM POTENTIAL APPLICANTS THROUGH ANY OTHER MEANS, WHICHEVER IS EARLIER.
   (B)  A  LOTTERY  SHALL  NOT  TAKE PLACE LESS THAN SIXTY DAYS FOLLOWING
 POSTING ON THE HOUSING RESOURCE  CENTER.  ANY  POSTING  ON  THE  HOUSING
 RESOURCE CENTER SHALL PROVIDE A LINK TO AN ONLINE FILLABLE FORM OR PORT-
 ABLE  DOCUMENT  FORMAT  (PDF) FORM OF THE APPLICATION FOR THE AFFORDABLE
 HOUSING UNITS ON THE WEBSITE OF THE OWNER, DEVELOPER, PROPERTY  MANAGER,
 OR OTHER ADMINISTRATIVE ENTITY AND INFORMATION ON HOW TO REQUEST A PAPER
 COPY  OF THE APPLICATION FROM THE OWNER, DEVELOPER, PROPERTY MANAGER, OR
 OTHER ADMINISTRATIVE ENTITY.
   6. THE OWNER, DEVELOPER, PROPERTY  MANAGER,  OR  OTHER  ADMINISTRATIVE
 ENTITY SHALL SUBMIT EVIDENCE OF THE LISTING OF THEIR AVAILABLE UNITS AND
 WAITLIST  OPENINGS,  AS  REQUIRED BY THIS SECTION, TO THE ADMINISTRATIVE
 AGENT FOR THE MUNICIPALITY.
   7. (A) THE ADMINISTRATIVE AGENT FOR THE MUNICIPALITY AND THE MUNICIPAL
 HOUSING LIAISON SHALL ENSURE COMPLIANCE  WITH  THE  PROVISIONS  OF  THIS
 SECTION.
   (B)  THE  ADMINISTRATIVE  AGENT FOR THE MUNICIPALITY AND THE MUNICIPAL
 HOUSING LIAISON SHALL HAVE THE AUTHORITY TO LEVY FINES AGAINST THE OWNER
 OF THE DEVELOPMENT FOR INSTANCES  OF  NONCOMPLIANCE,  FOLLOWING  WRITTEN
 NOTICE  TO  THE  OWNER.  THE FINE FOR THE FIRST OFFENSE OF NONCOMPLIANCE
 SHALL BE FIVE THOUSAND DOLLARS, THE  FINE  FOR  THE  SECOND  OFFENSE  OF
 NONCOMPLIANCE  SHALL  BE  TEN  THOUSAND  DOLLARS,  AND THE FINE FOR EACH
 SUBSEQUENT OFFENSE OF NONCOMPLIANCE SHALL BE FIFTEEN THOUSAND DOLLARS.
   (C) THE COMMISSIONER MAY ADJUST THE FINE SCHEDULE ESTABLISHED IN PARA-
 GRAPH (B) OF THIS SUBDIVISION, BUT SHALL NOT ADJUST SUCH  FINE  SCHEDULE
 UNTIL AT LEAST SIXTY MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION.
   (D)  ALL  REVENUE  GENERATED  FROM  THE  FINES LEVIED PURSUANT TO THIS
 SECTION SHALL BE DEPOSITED INTO THE  MUNICIPALITY'S  AFFORDABLE  HOUSING
 TRUST FUND.
   (E) A FINE SHALL NOT BE ISSUED PURSUANT TO THIS SUBDIVISION UNLESS THE
 ADMINISTRATIVE AGENT FOR THE MUNICIPALITY OR THE MUNICIPAL HOUSING LIAI-
 SON FIRST PROVIDES THE OWNER WITH WRITTEN NOTICE NO LESS THAN TWO MONTHS
 PRIOR TO THE DATE THE FINE IS LEVIED. A FINE SHALL ONLY BE ISSUED IF THE
 OFFENSE HAS NOT BEEN CURED WITHIN THAT TWO-MONTH TIMEFRAME.  ISSUANCE OF
 A  WRITTEN  NOTICE OR A FINE SHALL NOT PROVIDE EXEMPTION TO THE REQUIRE-
 MENT OF CONDUCTING A LOTTERY NO LESS THAN SIXTY DAYS  FOLLOWING  POSTING
 ON THE HOUSING RESOURCE CENTER.
   (F)  THE  ADMINISTRATIVE AGENT AND THE MUNICIPAL HOUSING LIAISON SHALL
 HAVE THE AUTHORITY TO REQUIRE THE OWNER, DEVELOPER, PROPERTY MANAGER, OR
 ADMINISTRATIVE ENTITY TO CONDUCT A NEW LOTTERY IF THE PROVISIONS OF THIS
 SECTION ARE NOT IMPLEMENTED PROPERLY.
   8. IF A MUNICIPALITY FAILS TO  COMPLY  WITH  THE  PROVISIONS  OF  THIS
 SECTION, THEN THE MUNICIPALITY SHALL BE CONSIDERED NONCOMPLIANT WITH THE
 AFFIRMATIVE  MARKETING  PLAN  REQUIREMENTS, EXCEPT IN CASES IN WHICH THE
 MUNICIPALITY  TAKES  APPROPRIATE  CORRECTIVE  ACTION  PURSUANT  TO  THIS
 SECTION  THAT  SUCH CORRECTIVE ACTION SHALL BE CONSTRUED AS REMAINING IN
 COMPLIANCE.
   § 719. CONTRACTUAL AGREEMENTS WITH WILLING MUNICIPALITIES OR  DEVELOP-
 ERS  OF  INCLUSIONARY DEVELOPMENTS FOR ADMINISTRATION OF RESALE AND RENT
 S. 6958                            20
 
 CONTROLS. 1. THE DIVISION SHALL ESTABLISH PROCEDURES FOR ENTERING  INTO,
 AND SHALL ENTER INTO, CONTRACTUAL AGREEMENTS WITH WILLING MUNICIPALITIES
 OR  DEVELOPERS  OF  INCLUSIONARY  DEVELOPMENTS  WHEREBY  THE AGENCY WILL
 ADMINISTER  RESALE CONTROLS AND RENT CONTROLS IN MUNICIPALITIES WHERE NO
 APPROPRIATE ADMINISTRATIVE AGENCY  EXISTS.  THE  CONTRACTUAL  AGREEMENTS
 SHALL  BE FOR THE DURATION OF THE CONTROLS AND SHALL INVOLVE ELIGIBILITY
 DETERMINATIONS, DETERMINATION OF INITIAL  OCCUPANTS,  THE  MARKETING  OF
 UNITS,  MAINTENANCE  OF  ELIGIBILITY  LISTS FOR SUBSEQUENT PURCHASERS OR
 RENTERS, AND DETERMINATION OF MAXIMUM RESALE PRICES OR RENTS. THE  DIVI-
 SION  MAY CHARGE THE MUNICIPALITY OR INCLUSIONARY DEVELOPER A REASONABLE
 PER UNIT FEE FOR ENTERING INTO  SUCH  AN  AGREEMENT,  OR  MAY  CHARGE  A
 REASONABLE  FEE  TO  A LOW- OR MODERATE-INCOME HOUSEHOLD AT THE TIME THE
 HOME IS SOLD SUBJECT TO THE RESALE CONTROL OR BOTH.
   2. NEITHER THE DIVISION NOR ANY OTHER ENTITY ENTERING INTO  AN  AGREE-
 MENT  TO  PROVIDE  SERVICES  TO  A MUNICIPALITY UNDER THIS SECTION SHALL
 REQUIRE, AS A  CONDITION  OF  SUCH  AGREEMENT,  THAT  SUCH  SERVICES  BE
 PROVIDED  FOR  ALL ELIGIBLE HOUSING UNITS IN THE MUNICIPALITY. A MUNICI-
 PALITY, AT ITS DISCRETION, MAY ENTER INTO AN AGREEMENT FOR THE PROVISION
 OF SERVICES FOR ANY REASONABLE PORTION OF ITS ELIGIBLE HOUSING UNITS.
   § 720. PURCHASE, LEASE OR ACQUISITION BY GIFT OF REAL PROPERTY; ACQUI-
 SITION,  CONSTRUCTION  AND  MAINTENANCE  OF  BUILDINGS  AND  STRUCTURES;
 PRIVATE  SALE OR LEASE BY MUNICIPALITY. 1. NOTWITHSTANDING ANY OTHER LAW
 TO THE CONTRARY, A MUNICIPALITY MAY PURCHASE, LEASE OR ACQUIRE  BY  GIFT
 OR  THROUGH THE EXERCISE OF EMINENT DOMAIN, REAL PROPERTY AND ANY ESTATE
 OR INTEREST THEREIN,  WHICH  THE  MUNICIPAL  GOVERNING  BODY  DETERMINES
 NECESSARY  OR  USEFUL FOR THE CONSTRUCTION OR REHABILITATION OF LOW- AND
 MODERATE-INCOME HOUSING OR CONVERSION TO LOW- AND MODERATE-INCOME  HOUS-
 ING.
   2.  THE MUNICIPALITY MAY PROVIDE FOR THE ACQUISITION, CONSTRUCTION AND
 MAINTENANCE OF BUILDINGS, STRUCTURES OR OTHER IMPROVEMENTS NECESSARY  OR
 USEFUL  FOR  THE  PROVISION OF LOW- AND MODERATE-INCOME HOUSING, AND MAY
 PROVIDE FOR THE RECONSTRUCTION, CONVERSION OR  REHABILITATION  OF  THOSE
 IMPROVEMENTS  IN  SUCH  MANNER  AS  MAY BE NECESSARY OR USEFUL FOR THOSE
 PURPOSES.
   3. NOTWITHSTANDING THE PROVISIONS  OF  ANY  OTHER  LAW  REGARDING  THE
 CONVEYANCE, SALE OR LEASE OF REAL PROPERTY BY MUNICIPALITIES, THE MUNIC-
 IPAL  GOVERNING  BODY MAY, BY RESOLUTION, AUTHORIZE THE PRIVATE SALE AND
 CONVEYANCE OR LEASE OF A HOUSING UNIT OR UNITS ACQUIRED  OR  CONSTRUCTED
 PURSUANT  TO  THIS  SECTION, WHERE THE SALE, CONVEYANCE OR LEASE IS TO A
 LOW- OR MODERATE-INCOME HOUSEHOLD OR NONPROFIT  ENTITY  AND  CONTAINS  A
 CONTRACTUAL  GUARANTEE  THAT  THE  HOUSING UNIT WILL REMAIN AVAILABLE TO
 LOW- AND MODERATE-INCOME HOUSEHOLDS FOR A  PERIOD  OF  AT  LEAST  THIRTY
 YEARS.
   §  721.  COORDINATION  AND  REVIEW OF HOUSING ELEMENTS; RESERVATION OF
 HOUSING UNITS MADE AVAILABLE FOR OCCUPANCY  BY  VERY  LOW-INCOME  HOUSE-
 HOLDS.    HOUSING  ELEMENTS  AND  FAIR  SHARE  PLANS ADOPTED PURSUANT TO
 SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE SHALL ENSURE  THAT  AT  LEAST
 THIRTEEN  PERCENT  OF  THE HOUSING UNITS MADE AVAILABLE FOR OCCUPANCY BY
 LOW- AND MODERATE-INCOME HOUSEHOLDS TO ADDRESS A MUNICIPALITY'S PROSPEC-
 TIVE NEED OBLIGATION WILL BE RESERVED FOR OCCUPANCY BY  VERY  LOW-INCOME
 HOUSEHOLDS, WITH AT LEAST HALF OF SUCH UNITS MADE AVAILABLE FOR FAMILIES
 WITH  CHILDREN.  SUCH  THIRTEEN  PERCENT SHALL COUNT TOWARDS THE MINIMUM
 FIFTY PERCENT OF THE HOUSING UNITS REQUIRED TO  BE  MADE  AVAILABLE  FOR
 OCCUPANCY  BY LOW-INCOME HOUSEHOLDS TO ADDRESS A MUNICIPALITY'S PROSPEC-
 TIVE NEED OBLIGATION  PURSUANT  TO  SUBDIVISION  TEN  OF  SECTION  SEVEN
 HUNDRED  EIGHT  OF  THIS  ARTICLE. NOTHING IN THIS SECTION SHALL REQUIRE
 S. 6958                            21
 
 THAT A SPECIFIC PERCENTAGE OF THE  UNITS  IN  ANY  SPECIFIC  PROJECT  BE
 RESERVED AS VERY LOW-INCOME HOUSING.
   §  722.  COLLECTION  AND EXPENDITURE OF AFFORDABLE HOUSING DEVELOPMENT
 FEES BY MUNICIPALITIES; EXCLUSION FROM COLLECTION. 1. (A) A MUNICIPALITY
 THAT IS IN THE PROCESS OF SEEKING COMPLIANCE CERTIFICATION, HAS OBTAINED
 COMPLIANCE CERTIFICATION, OR THAT HAS BEEN SO AUTHORIZED BY A  COURT  OF
 COMPETENT  JURISDICTION,  AND  WHICH HAS ADOPTED A MUNICIPAL DEVELOPMENT
 FEE ORDINANCE SHALL BE AUTHORIZED TO IMPOSE AND COLLECT DEVELOPMENT FEES
 FROM DEVELOPERS  OF  RESIDENTIAL  PROPERTY,  IN  ACCORDANCE  WITH  RULES
 PROMULGATED  BY  THE  DIVISION. EACH AMOUNT COLLECTED SHALL BE DEPOSITED
 AND SHALL BE ACCOUNTED FOR SEPARATELY, BY PAYER AND DATE OF DEPOSIT.
   (B) NO LATER THAN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE
 OF ADOPTING A MUNICIPAL DEVELOPMENT FEE ORDINANCE, ANY MUNICIPALITY THAT
 IS OR HAS BEEN AUTHORIZED TO IMPOSE AND COLLECT  DEVELOPMENT  FEES  FROM
 DEVELOPERS  OF RESIDENTIAL PROPERTY, OR PAYMENTS IN LIEU OF CONSTRUCTING
 AFFORDABLE HOUSING, SHALL PROVIDE THE DIVISION WITH A DETAILED  ACCOUNT-
 ING  OF  ALL  SUCH  FEES THAT HAVE BEEN COLLECTED AND EXPENDED SINCE THE
 INCEPTION OF THE MUNICIPAL AUTHORIZATION TO COLLECT SUCH FEES.
   (C) BEGINNING WITH THE YEAR FIRST SUCCEEDING  THE  EFFECTIVE  DATE  OF
 THIS ARTICLE, ANNUALLY BY FEBRUARY FIFTEENTH, EVERY MUNICIPALITY THAT IS
 OR  HAS  BEEN  AUTHORIZED  TO  IMPOSE  AND COLLECT DEVELOPMENT FEES FROM
 DEVELOPERS OF RESIDENTIAL PROPERTY, OR PAYMENTS IN LIEU OF  CONSTRUCTING
 AFFORDABLE  HOUSING, SHALL PROVIDE THE DIVISION WITH A DETAILED ACCOUNT-
 ING OF ALL SUCH FEES THAT HAVE BEEN COLLECTED AND EXPENDED THE  PREVIOUS
 YEAR.
   (D)  A  MUNICIPALITY  MAY  NOT SPEND OR COMMIT TO SPEND ANY AFFORDABLE
 HOUSING DEVELOPMENT FEES WITHOUT FIRST OBTAINING  THE  APPROVAL  OF  THE
 EXPENDITURE  AS  PART  OF ITS COMPLIANCE CERTIFICATION OR FROM THE DIVI-
 SION.  A MUNICIPALITY SHALL INCLUDE IN  ITS  HOUSING  ELEMENT  AND  FAIR
 SHARE  PLAN ADOPTED PURSUANT TO SECTION SEVEN HUNDRED FIVE OF THIS ARTI-
 CLE A SPENDING PLAN FOR CURRENT FUNDS IN THE MUNICIPAL AFFORDABLE  HOUS-
 ING  TRUST FUND AND PROJECTED FUNDS THROUGH THE CURRENT ROUND. REVIEW OF
 SUCH SPENDING PLAN FOR CONSISTENCY WITH APPLICABLE LAW AND  THE  MUNICI-
 PALITY'S  HOUSING ELEMENT AND FAIR SHARE PLAN SHALL BE PART OF THE PROC-
 ESS SPECIFIED IN SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE.  THE  DIVI-
 SION  SHALL  PROMULGATE  UPDATED  REGULATIONS  NO LATER THAN NINE MONTHS
 FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE  REGARDING  THE  ESTABLISH-
 MENT,  ADMINISTRATION,  REPORTING, AND ENFORCEMENT OF THE EXPENDITURE OF
 AFFORDABLE HOUSING  DEVELOPMENT  FEES  BY  MUNICIPALITIES,  WHICH  SHALL
 INCLUDE  ESTABLISHING  AN  EXPEDITED PROCESS FOR APPROVING SPENDING PLAN
 EXPENDITURES FOR EMERGENT OPPORTUNITIES  TO  CREATE  AFFORDABLE  HOUSING
 AFTER  A  MUNICIPALITY  HAS OBTAINED COMPLIANCE CERTIFICATION AND PROCE-
 DURES FOR MONITORING THE COLLECTION AND EXPENDITURE OF TRUST FUNDS.  THE
 DIVISION  SHALL  DEVELOP  AND PUBLISH ON ITS INTERNET WEBSITE A DETAILED
 SUMMARY OF THE MUNICIPAL AFFORDABLE HOUSING TRUST FUND EXPENDITURES  FOR
 EACH  MUNICIPALITY  AND SHALL UPDATE EACH SUMMARY ON AN ANNUAL BASIS. AS
 PART OF THE REGULATIONS ADOPTED PURSUANT TO  THIS  SECTION  AND  SECTION
 SEVEN  HUNDRED  TWENTY-THREE  OF  THIS ARTICLE, THE DIVISION SHALL ADOPT
 REPORTING REQUIREMENTS APPLICABLE TO MUNICIPAL AFFORDABLE HOUSING  TRUST
 FUNDS  TO  FACILITATE FULFILLMENT OF THE DIVISION'S OBLIGATIONS PURSUANT
 TO THIS SECTION.
   (E) THE GOVERNING BODY OF A MUNICIPALITY WHICH IS SPENDING OR  COMMIT-
 TING  TO SPEND AFFORDABLE HOUSING DEVELOPMENT FEES MAY PROVIDE, BY ORDI-
 NANCE, THAT THE UNITS OF AFFORDABLE HOUSING BEING DEVELOPED OR PRESERVED
 PURSUANT TO A HOUSING PROJECT OR PROGRAM BEING FUNDED, IN  WHOLE  OR  IN
 PART,  THROUGH  AFFORDABLE HOUSING DEVELOPMENT FEES SHALL BE EXEMPT FROM
 S. 6958                            22
 
 REAL PROPERTY TAXATION IF THE HOUSING SPONSOR ENTERS INTO  AN  AGREEMENT
 WITH  THE MUNICIPALITY FOR PAYMENTS TO THE MUNICIPALITY IN LIEU OF TAXES
 FOR MUNICIPAL SERVICES. ANY SUCH AGREEMENT MAY REQUIRE THE HOUSING SPON-
 SOR  TO  PAY  TO  THE MUNICIPALITY AN AMOUNT UP TO TWENTY PERCENT OF THE
 ANNUAL GROSS REVENUE FROM EACH HOUSING PROJECT  SITUATED  ON  SUCH  REAL
 PROPERTY  FOR  EACH  YEAR  OF  OPERATION  OF THE AGREEMENT FOLLOWING THE
 SUBSTANTIAL COMPLETION OF THE HOUSING PROJECT. ANY SUCH AGREEMENT  SHALL
 REQUIRE  THE  HOUSING SPONSOR TO PAY THE MUNICIPALITY AN AMOUNT NOT LESS
 THAN THE GREATER OF FOUR PERCENT OF THE  ANNUAL  GROSS  REVENUE  OR  THE
 AMOUNT  OF  THE  TAXES  ATTRIBUTABLE  TO THE LAND VALUE COMPONENT OF THE
 PROPERTY COMPRISING THE PROJECT SITE FOR THE YEAR PRECEDING THE  RECORD-
 ING OF THE MORTGAGE, IF APPLICABLE. FOR THE PURPOSE OF THIS SUBDIVISION,
 "ANNUAL  GROSS  REVENUE" MEANS THE TOTAL ANNUAL GROSS RENTAL OR CARRYING
 CHARGE AND OTHER INCOME OF A HOUSING SPONSOR FROM A HOUSING PROJECT.  IF
 AN  AGREEMENT IS ENTERED INTO FROM THE DATE OF RECORDING THE MORTGAGE ON
 THE HOUSING PROJECT TO THE DATE OF SUBSTANTIAL COMPLETION OF THE HOUSING
 PROJECT, THE ANNUAL AMOUNT PAYABLE TO THE MUNICIPALITY AS  TAXES  OR  AS
 PAYMENTS IN LIEU OF TAXES IN RESPECT OF THE PROJECT SITE SHALL NOT BE IN
 EXCESS OF THE AMOUNT OF TAXES ON THE PROJECT SITE FOR THE YEAR PRECEDING
 THE  RECORDING  OF  THE MORTGAGE. WITHIN THIRTY CALENDAR DAYS FOLLOWING:
 THE EFFECTIVE DATE OF AN ORDINANCE ADOPTED BY A MUNICIPAL GOVERNING BODY
 APPROVING A TAX EXEMPTION UNDER THIS SUBDIVISION; OR THE EXECUTION OF  A
 FINANCIAL AGREEMENT BETWEEN A HOUSING SPONSOR AND A MUNICIPALITY ENTERED
 INTO  PURSUANT TO THIS SUBDIVISION, WHICHEVER IS LATER, THE MUNICIPALITY
 SHALL ELECTRONICALLY TRANSMIT A CERTIFIED COPY OF THE ORDINANCE AND  THE
 AGREEMENT  TO  THE  APPLICABLE  TAX  ASSESSOR IN SUCH A MANNER AS MAY BE
 SPECIFIED BY SUCH ASSESSOR.  AN  EXEMPTION  FROM  TAXATION  PROVIDED  IN
 ACCORDANCE  WITH  THIS  SUBDIVISION  SHALL NOT EXTEND BEYOND THE DATE ON
 WHICH AN ELIGIBLE LOAN MADE FOR THE PROJECT IS PAID IN FULL.
   (F) NOTWITHSTANDING THE PROVISIONS OF ANY LAW  OR  REGULATION  TO  THE
 CONTRARY,  THE GOVERNING BODY OF A MUNICIPALITY MAY AGREE TO CONTINUE OR
 GRANT A NEW TAX EXEMPTION FOR A STATE, FEDERALLY, OR MUNICIPALLY  SUBSI-
 DIZED HOUSING PROJECT BEYOND THE DATE ON WHICH AN ELIGIBLE LOAN MADE FOR
 THE PROJECT IS FULLY PAID, OR BEYOND THE DATE UPON WHICH A TAX EXEMPTION
 EXPIRES,  FOR  ANY  PERIOD  THE PROJECT REMAINS SUBJECT TO AFFORDABILITY
 CONTROLS PURSUANT TO:
   (I) PROJECT-BASED FEDERAL RENTAL ASSISTANCE,  AUTHORIZED  PURSUANT  TO
 SECTION  8 OF THE UNITED STATES HOUSING ACT OF 1937 (42 U.S.C. S.1437F),
 OR OTHER FEDERAL OR STATE PROJECT-BASED ASSISTANCE;
   (II) SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY  TAX  LAW;
 OR
   (III) THE RENT AND INCOME LIMITS ESTABLISHED BY THE FEDERAL LOW INCOME
 HOUSING TAX CREDIT PROGRAM PURSUANT TO SECTION 42 OF THE INTERNAL REVEN-
 UE CODE (26 U.S.C. S.42).
   2.  A  MUNICIPALITY  SHALL  DEPOSIT ALL FEES COLLECTED, WHETHER OR NOT
 SUCH COLLECTIONS WERE DERIVED FROM FEES IMPOSED UPON NON-RESIDENTIAL  OR
 RESIDENTIAL  CONSTRUCTION  INTO A TRUST FUND DEDICATED TO THOSE PURPOSES
 AS REQUIRED UNDER THIS SECTION, AND SUCH ADDITIONAL PURPOSES AS  MAY  BE
 APPROVED BY THE DIVISION.
   3.  (A) A MUNICIPALITY MAY ONLY SPEND DEVELOPMENT FEES FOR AN ACTIVITY
 APPROVED BY THE DIVISION TO ADDRESS THE MUNICIPAL FAIR SHARE  OBLIGATION
 OR APPROVED AS PART OF COMPLIANCE CERTIFICATION.
   (B) MUNICIPAL DEVELOPMENT TRUST FUNDS SHALL NOT BE EXPENDED UNLESS THE
 MUNICIPALITY  HAS  IMMUNITY  FROM  EXCLUSIONARY ZONING LITIGATION AT THE
 TIME OF THE EXPENDITURE, OR SAID MUNICIPALITY HAS  PREVIOUSLY  COLLECTED
 SUCH FUNDS WHILE UNDER THE PROTECTION OF PRESUMPTIVE VALIDITY OR IMMUNI-
 S. 6958                            23
 
 TY  FROM  EXCLUSIONARY  ZONING  LITIGATION  AND  IN  ACCORDANCE  WITH AN
 APPROVED SPENDING PLAN. MUNICIPAL DEVELOPMENT FEE TRUST FUNDS SHALL  NOT
 BE EXPENDED:
   (I) TO REIMBURSE MUNICIPALITIES FOR ACTIVITIES WHICH OCCURRED PRIOR TO
 THE AUTHORIZATION OF A MUNICIPALITY TO COLLECT DEVELOPMENT FEES; OR
   (II)(1)  ON  ADMINISTRATIVE  COSTS,  ATTORNEY  FEES  OR COURT COSTS TO
 OBTAIN A JUDGMENT OF REPOSE; (2)  TO  CONTEST  A  DETERMINATION  OF  THE
 MUNICIPALITY'S  FAIR SHARE OBLIGATION; OR (3) ON COSTS OF ANY CHALLENGER
 IN CONNECTION TO A CHALLENGE TO THE MUNICIPALITY'S  OBLIGATION,  HOUSING
 ELEMENT, OR FAIR SHARE PLAN.
   (C)  (I)  A  MUNICIPALITY SHALL SET ASIDE A PORTION OF ITS DEVELOPMENT
 FEE TRUST FUND FOR THE PURPOSE OF PROVIDING AFFORDABILITY ASSISTANCE  TO
 LOW-  AND  MODERATE-INCOME  HOUSEHOLDS IN AFFORDABLE UNITS INCLUDED IN A
 MUNICIPAL FAIR SHARE PLAN, IN ACCORDANCE WITH RULES OF THE DIVISION.
   (II)  AFFORDABILITY  ASSISTANCE  PROGRAMS  MAY  INCLUDE  DOWN  PAYMENT
 ASSISTANCE,  SECURITY  DEPOSIT  ASSISTANCE,  LOW-INTEREST  LOANS, COMMON
 MAINTENANCE EXPENSES FOR UNITS LOCATED IN CONDOMINIUMS,  RENTAL  ASSIST-
 ANCE, AND ANY OTHER PROGRAM AUTHORIZED BY THE DIVISION.
   (III) AFFORDABILITY ASSISTANCE TO HOUSEHOLDS EARNING THIRTY PERCENT OR
 LESS  OF  MEDIAN  INCOME  MAY INCLUDE BUYING DOWN THE COST OF LOW-INCOME
 UNITS IN A MUNICIPAL FAIR SHARE PLAN TO MAKE THEM AFFORDABLE  TO  HOUSE-
 HOLDS EARNING THIRTY PERCENT OR LESS OF MEDIAN INCOME.
   (D)  A  MUNICIPALITY  MAY  CONTRACT WITH A PRIVATE OR PUBLIC ENTITY TO
 ADMINISTER ANY PART OF ITS HOUSING ELEMENT AND FAIR SHARE PLAN,  INCLUD-
 ING  THE  REQUIREMENT  FOR  AFFORDABILITY  ASSISTANCE, OR ANY PROGRAM OR
 ACTIVITY FOR WHICH THE MUNICIPALITY EXPENDS DEVELOPMENT FEE PROCEEDS, IN
 ACCORDANCE WITH RULES OF THE DIVISION.
   (E) NOT MORE THAN TWENTY PERCENT OF THE REVENUES COLLECTED FROM DEVEL-
 OPMENT FEES SHALL BE EXPENDED  ON  ADMINISTRATION,  IN  ACCORDANCE  WITH
 RULES  OF  THE  DIVISION.  SUCH  ADMINISTRATION  MAY INCLUDE EXPENDING A
 PORTION OF ITS AFFORDABLE HOUSING TRUST  FUND  ON  ACTIONS  AND  EFFORTS
 REASONABLY RELATED TO THE DETERMINATION OF ITS FAIR SHARE OBLIGATION AND
 THE  DEVELOPMENT  OF ITS HOUSING ELEMENT AND FAIR SHARE PLAN PURSUANT TO
 SECTION SEVEN HUNDRED FIVE OF THIS ARTICLE, AND FOR  EXPENSES  THAT  ARE
 REASONABLY  NECESSARY  FOR COMPLIANCE WITH THE PROCESSES OF THE PROGRAM,
 INCLUDING, BUT NOT LIMITED TO, THE COSTS TO THE MUNICIPALITY OF  RESOLV-
 ING A CHALLENGE UNDER THE PROGRAM.
   4.  THE  DIVISION SHALL ESTABLISH A TIME BY WHICH ALL DEVELOPMENT FEES
 COLLECTED WITHIN A CALENDAR YEAR SHALL BE EXPENDED;  PROVIDED,  HOWEVER,
 THAT  ALL FEES SHALL BE COMMITTED FOR EXPENDITURE WITHIN FOUR YEARS FROM
 THE DATE OF COLLECTION. A MUNICIPALITY THAT FAILS TO  COMMIT  TO  EXPEND
 THE  BALANCE  REQUIRED IN THE DEVELOPMENT FEE TRUST FUND BY THE TIME SET
 FORTH IN THIS SECTION SHALL BE REQUIRED BY THE COMMITTEE TO TRANSFER THE
 REMAINING UNSPENT BALANCE AT THE END OF THE FOUR-YEAR PERIOD TO THE  NEW
 YORK  AFFORDABLE  HOUSING  TRUST  FUND,  ESTABLISHED PURSUANT TO SECTION
 NINETY-NINE-SS OF THE STATE FINANCE LAW,  TO  BE  USED  IN  THE  HOUSING
 REGION  OF  THE TRANSFERRING MUNICIPALITY FOR THE AUTHORIZED PURPOSES OF
 THAT FUND.
   5. NOTWITHSTANDING ANY PROVISION OF THIS SECTION,  OR  REGULATIONS  OF
 THE  DIVISION, A MUNICIPALITY SHALL NOT COLLECT A DEVELOPMENT FEE FROM A
 DEVELOPER WHENEVER THAT DEVELOPER IS PROVIDING FOR THE  CONSTRUCTION  OF
 AFFORDABLE UNITS, EITHER ON-SITE OR ELSEWHERE WITHIN THE MUNICIPALITY.
   §  723.  STATUS  REPORT  CONCERNING  PETITIONS FOR SUBSTANTIVE CERTIF-
 ICATION; HOUSING UNIT INFORMATION; FAIR SHARE PLAN INFORMATION.  1.  THE
 DIVISION  SHALL MAINTAIN ON ITS INTERNET WEBSITE, AND ALSO PUBLISH ON AN
 ANNUAL BASIS,  AN  UP-TO-DATE  MUNICIPAL  STATUS  REPORT  BASED  ON  ITS
 S. 6958                            24
 
 COLLECTION  AND  PUBLICATION  OF  INFORMATION  CONCERNING  THE NUMBER OF
 AFFORDABLE HOUSING  UNITS  ACTUALLY  CONSTRUCTED,  CONSTRUCTION  STARTS,
 CERTIFICATES  OF  OCCUPANCY  GRANTED,  THE START AND EXPIRATION DATES OF
 DEED  RESTRICTIONS, AND RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT FEES
 COLLECTED AND EXPENDED, INCLUDING PURPOSES AND AMOUNTS OF SUCH  EXPENDI-
 TURES,  ALONG  WITH THE CURRENT BALANCE IN THE MUNICIPALITY'S AFFORDABLE
 HOUSING TRUST FUND.   WITH RESPECT TO UNITS  ACTUALLY  CONSTRUCTED,  THE
 INFORMATION  SHALL SPECIFY THE CHARACTERISTICS OF THE HOUSING, INCLUDING
 HOUSING TYPE, TENURE, AFFORDABILITY LEVEL, NUMBER OF BEDROOMS, DATE  AND
 EXPIRATION  OF AFFORDABILITY CONTROLS, AND WHETHER OCCUPANCY IS RESERVED
 FOR FAMILIES, SENIOR CITIZENS, OR OTHER SPECIAL POPULATIONS.
   2. BEGINNING WITH THE YEAR FIRST SUCCEEDING THE EFFECTIVE DATE OF THIS
 ARTICLE, ANNUALLY BY FEBRUARY FIFTEENTH, EACH MUNICIPALITY SHALL PROVIDE
 THE DIVISION WITH THE INFORMATION NECESSARY TO COMPLY WITH THIS SECTION.
   3. THE DIVISION MAY PROMULGATE ANY RULES AND REGULATIONS NECESSARY  TO
 EFFECTUATE  THE  PROVISIONS  OF THIS SECTION, INCLUDING, BUT NOT LIMITED
 TO, RULES AND REGULATIONS TO ENSURE THAT MUNICIPALITIES  AND  DEVELOPERS
 REPORT  ANY  INFORMATION AS MAY BE NECESSARY FOR THE DIVISION TO FULFILL
 ITS OBLIGATIONS PURSUANT TO THIS SECTION.
   § 3. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   § 99-SS. NEW YORK AFFORDABLE HOUSING TRUST FUND.  1. THERE  IS  HEREBY
 ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER
 OF  HOUSING  AND  COMMUNITY  RENEWAL A FUND TO BE KNOWN AS THE "NEW YORK
 AFFORDABLE HOUSING TRUST FUND".
   2. SUCH FUND SHALL CONSIST OF REVENUES RECEIVED BY THE STATE  PURSUANT
 TO  SECTION  SEVEN  HUNDRED TWENTY-TWO OF THE PUBLIC HOUSING LAW AND ALL
 OTHER MONEYS, APPROPRIATED, CREDITED, OR TRANSFERRED  THERETO  FROM  ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW.
   3.  (A) THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL BE PERMIT-
 TED TO UTILIZE ANNUALLY UP TO SEVEN AND ONE-HALF PERCENT OF  THE  MONEYS
 AVAILABLE  IN  THE  FUND FOR THE PAYMENT OF ANY NECESSARY ADMINISTRATIVE
 COSTS RELATED TO THE ADMINISTRATION OF ARTICLE  SIXTEEN  OF  THE  PUBLIC
 HOUSING LAW.
   (B)  THE  COMMISSIONER  SHALL AWARD GRANTS OR LOANS FROM THIS FUND FOR
 HOUSING PROJECTS AND PROGRAMS IN MUNICIPALITIES WHOSE  HOUSING  ELEMENTS
 HAVE OBTAINED COMPLIANCE CERTIFICATION PURSUANT TO SECTION SEVEN HUNDRED
 FIVE OF THE PUBLIC HOUSING LAW.
   (C)  PROGRAMS  AND  PROJECTS  IN ANY MUNICIPALITY SHALL BE FUNDED ONLY
 AFTER RECEIPT BY THE COMMISSIONER OF A WRITTEN STATEMENT IN  SUPPORT  OF
 THE PROGRAM OR PROJECT FROM THE MUNICIPAL GOVERNING BODY.
   (D)  THE  COMMISSIONER SHALL ESTABLISH RULES AND REGULATIONS GOVERNING
 THE QUALIFICATIONS OF APPLICANTS, THE APPLICATION  PROCEDURES,  AND  THE
 CRITERIA  FOR AWARDING GRANTS AND LOANS AND THE STANDARDS FOR ESTABLISH-
 ING THE AMOUNT, TERMS, AND CONDITIONS OF EACH SUCH GRANT OR LOAN.
   4. THE GOVERNING BODY OF A MUNICIPALITY IN WHICH A HOUSING PROJECT  OR
 PROGRAM  IS  LOCATED, AND WHICH IS AWARDED A GRANT OR LOAN FROM THE FUND
 FOR A HOUSING PROJECT OR PROGRAM, MAY PROVIDE, BY  ORDINANCE,  THAT  THE
 UNITS  OF  AFFORDABLE HOUSING BEING DEVELOPED OR PRESERVED PURSUANT TO A
 HOUSING PROJECT OR PROGRAM BEING FUNDED, IN WHOLE OR  IN  PART,  THROUGH
 THIS  FUND  SHALL  BE  EXEMPT FROM REAL PROPERTY TAXATION IF THE HOUSING
 SPONSOR ENTERS INTO AN AGREEMENT WITH THE MUNICIPALITY FOR  PAYMENTS  TO
 THE  MUNICIPALITY  IN  LIEU  OF  TAXES  FOR MUNICIPAL SERVICES. ANY SUCH
 AGREEMENT SHALL REQUIRE THE HOUSING SPONSOR TO PAY TO  THE  MUNICIPALITY
 AN  AMOUNT  UP  TO  TWENTY PERCENT OF THE ANNUAL GROSS REVENUE FROM EACH
 HOUSING PROJECT SITUATED ON SUCH REAL PROPERTY FOR EACH YEAR  OF  OPERA-
 S. 6958                            25
 
 TION  OF THE AGREEMENT FOLLOWING THE SUBSTANTIAL COMPLETION OF THE HOUS-
 ING PROJECT.  ANY SUCH AGREEMENT SHALL REQUIRE THE  HOUSING  SPONSOR  TO
 PAY THE MUNICIPALITY AN AMOUNT NOT LESS THAN THE GREATER OF FOUR PERCENT
 OF  THE  ANNUAL GROSS REVENUE OR THE AMOUNT OF THE TAXES ATTRIBUTABLE TO
 THE LAND VALUE COMPONENT OF THE PROPERTY COMPRISING THE PROJECT SITE FOR
 THE YEAR PRECEDING THE RECORDING OF THE MORTGAGE, IF APPLICABLE. FOR THE
 PURPOSE OF THIS SUBDIVISION, "ANNUAL  GROSS  REVENUE"  MEANS  THE  TOTAL
 ANNUAL  GROSS  RENTAL  OR  CARRYING CHARGE AND OTHER INCOME OF A HOUSING
 SPONSOR FROM A HOUSING PROJECT. IF AN AGREEMENT IS ENTERED INTO FROM THE
 DATE OF RECORDING THE MORTGAGE ON THE HOUSING PROJECT  TO  THE  DATE  OF
 SUBSTANTIAL COMPLETION OF THE HOUSING PROJECT, THE ANNUAL AMOUNT PAYABLE
 TO  THE MUNICIPALITY AS TAXES OR AS PAYMENTS IN LIEU OF TAXES IN RESPECT
 OF THE PROJECT SITE SHALL NOT BE IN EXCESS OF THE AMOUNT OF TAXES ON THE
 PROJECT SITE FOR THE YEAR PRECEDING THE RECORDING OF THE MORTGAGE. WITH-
 IN THIRTY CALENDAR DAYS FOLLOWING: THE EFFECTIVE DATE  OF  AN  ORDINANCE
 ADOPTED  BY  A  MUNICIPAL GOVERNING BODY APPROVING A TAX EXEMPTION UNDER
 THIS SUBDIVISION, OR THE EXECUTION OF A FINANCIAL  AGREEMENT  BETWEEN  A
 HOUSING  SPONSOR AND A MUNICIPALITY ENTERED INTO PURSUANT TO THIS SUBDI-
 VISION, WHICHEVER IS LATER, THE  MUNICIPAL  CLERK  SHALL  ELECTRONICALLY
 TRANSMIT  A  CERTIFIED  COPY  OF  THE ORDINANCE AND THE AGREEMENT TO THE
 APPLICABLE TAX ASSESSOR IN SUCH A MANNER AS MAY  BE  SPECIFIED  BY  SUCH
 ASSESSOR.  AN EXEMPTION FROM TAXATION PROVIDED PURSUANT TO THIS SUBDIVI-
 SION SHALL NOT EXTEND BEYOND THE DATE ON WHICH AN ELIGIBLE LOAN MADE FOR
 THE PROJECT IS PAID IN FULL.
   5. NOTWITHSTANDING THE PROVISIONS OF ANY  LAW  OR  REGULATION  TO  THE
 CONTRARY,  THE  GOVERNING BODY OF A MUNICIPALITY MAY AGREE TO CONTINUE A
 TAX EXEMPTION FOR A STATE, FEDERALLY, OR MUNICIPALLY SUBSIDIZED  HOUSING
 PROJECT  BEYOND  THE DATE ON WHICH AN ELIGIBLE LOAN MADE FOR THE PROJECT
 IS FULLY PAID, OR BEYOND THE DATE UPON WHICH A  TAX  EXEMPTION  EXPIRES,
 FOR  ANY  PERIOD  THE  PROJECT REMAINS SUBJECT TO AFFORDABILITY CONTROLS
 PURSUANT TO:
   (A) PROJECT-BASED FEDERAL RENTAL ASSISTANCE,  AUTHORIZED  PURSUANT  TO
 SECTION  8  OF THE UNITED STATES HOUSING ACT OF 1937 (42 U.S.C. S.1437F)
 OR OTHER FEDERAL OR STATE PROJECT-BASED ASSISTANCE;
   (B) SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW; OR
   (C) THE RENT AND INCOME LIMITS ESTABLISHED BY THE FEDERAL  LOW  INCOME
 HOUSING TAX CREDIT PROGRAM PURSUANT TO SECTION 42 OF THE INTERNAL REVEN-
 UE CODE (26 U.S.C. S.42).
   6.  FOR  ANY  PERIOD  WHICH  THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL MAY APPROVE, SUCH COMMISSIONER  MAY  ASSIST  AFFORDABLE  HOUSING
 PROGRAMS  THAT ARE LOCATED IN MUNICIPALITIES THAT HAVE A PENDING REQUEST
 FOR COMPLIANCE CERTIFICATION PURSUANT TO ARTICLE SIXTEEN OF  THE  PUBLIC
 HOUSING LAW; PROVIDED THAT SUCH AFFORDABLE HOUSING PROGRAM WILL MEET ALL
 OR  PART  OF  A  MUNICIPAL  LOW-  AND MODERATE-INCOME HOUSING OBLIGATION
 PURSUANT TO SUCH ARTICLE.
   7. AMOUNTS DEPOSITED IN THE FUND SHALL BE TARGETED TO REGIONS BASED ON
 THE REGION'S PERCENTAGE OF THE STATE'S LOW- AND MODERATE-INCOME  HOUSING
 NEED  AS  DETERMINED  PURSUANT TO THE LOW- AND MODERATE-INCOME HOUSEHOLD
 GROWTH OVER THE PRIOR TEN  YEARS,  AS  CALCULATED  PURSUANT  TO  ARTICLE
 SIXTEEN  OF THE PUBLIC HOUSING LAW. AMOUNTS IN THE FUND SHALL BE APPLIED
 FOR THE FOLLOWING PURPOSES IN DESIGNATED NEIGHBORHOODS:
   (A) REHABILITATION OF SUBSTANDARD HOUSING  UNITS  OCCUPIED  OR  TO  BE
 OCCUPIED BY LOW- AND MODERATE-INCOME HOUSEHOLDS;
   (B)  CREATION  OF  ACCESSORY DWELLING UNITS TO BE OCCUPIED BY LOW- AND
 MODERATE-INCOME HOUSEHOLDS;
 S. 6958                            26

   (C) CONVERSION  OF  NON-RESIDENTIAL  SPACE  TO  RESIDENTIAL  PURPOSES;
 PROVIDED  A SUBSTANTIAL PERCENTAGE OF THE RESULTING HOUSING UNITS ARE TO
 BE OCCUPIED BY LOW- AND MODERATE-INCOME HOUSEHOLDS;
   (D) ACQUISITION OF REAL PROPERTY, DEMOLITION AND REMOVAL OF BUILDINGS,
 OR  CONSTRUCTION OF NEW HOUSING THAT WILL BE OCCUPIED BY LOW- AND MODER-
 ATE-INCOME HOUSEHOLDS, OR ANY COMBINATION THEREOF;
   (E) GRANTS OF ASSISTANCE  TO  ELIGIBLE  MUNICIPALITIES  FOR  COSTS  OF
 NECESSARY  STUDIES,  SURVEYS, PLANS, AND PERMITS; ENGINEERING, ARCHITEC-
 TURAL, AND OTHER TECHNICAL SERVICES; COSTS OF LAND ACQUISITION  AND  ANY
 BUILDINGS  THEREON;  AND  COSTS  OF  SITE  PREPARATION,  DEMOLITION, AND
 INFRASTRUCTURE  DEVELOPMENT  FOR  PROJECTS  UNDERTAKEN  PURSUANT  TO  AN
 APPROVED REGIONAL CONTRIBUTION AGREEMENT;
   (F)  ASSISTANCE  TO  A  LOCAL  HOUSING AUTHORITY FOR REHABILITATION OR
 RESTORATION OF HOUSING UNITS WHICH IT ADMINISTERS WHICH: (I) ARE  UNUSA-
 BLE  OR  IN  A  SERIOUS  STATE  OF DISREPAIR; (II) CAN BE RESTORED IN AN
 ECONOMICALLY FEASIBLE AND SOUND MANNER; AND (III) CAN BE RETAINED  IN  A
 SAFE,  DECENT, AND SANITARY MANNER, UPON COMPLETION OF REHABILITATION OR
 RESTORATION; AND
   (G) OTHER HOUSING PROGRAMS FOR LOW- AND  MODERATE-INCOME  HOUSING,  AS
 DEFINED  IN SECTION SEVEN HUNDRED ONE OF THE PUBLIC HOUSING LAW, INCLUD-
 ING, WITHOUT LIMITATION, (I) INFRASTRUCTURE PROJECTS DIRECTLY FACILITAT-
 ING THE CONSTRUCTION OF LOW- AND MODERATE-INCOME HOUSING NOT TO EXCEED A
 REASONABLE PERCENTAGE OF THE CONSTRUCTION COSTS OF THE LOW-  AND  MODER-
 ATE-INCOME  HOUSING TO BE PROVIDED AND (II) ALTERATION OF DWELLING UNITS
 OCCUPIED OR TO BE OCCUPIED BY HOUSEHOLDS OF LOW- OR MODERATE-INCOME  AND
 THE  COMMON  AREAS OF THE PREMISES IN WHICH THEY ARE LOCATED IN ORDER TO
 MAKE THEM ACCESSIBLE TO PERSONS WITH DISABILITIES.
   8. ANY GRANT OR LOAN AGREEMENT ENTERED INTO PURSUANT TO  THIS  SECTION
 SHALL  INCORPORATE  CONTRACTUAL  GUARANTEES  AND PROCEDURES BY WHICH THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ENSURE THAT ANY UNIT  OF
 HOUSING  PROVIDED FOR LOW- AND MODERATE-INCOME HOUSEHOLDS SHALL CONTINUE
 TO BE OCCUPIED BY LOW- AND MODERATE-INCOME HOUSEHOLDS FOR A PERIOD  THAT
 CONFORMS  TO  THE  REQUIREMENTS OF ARTICLE SIXTEEN OF THE PUBLIC HOUSING
 LAW FOLLOWING THE AWARD OF THE LOAN OR GRANT, EXCEPT THAT  THE  DIVISION
 MAY APPROVE A GUARANTEE FOR A PERIOD OF LESS DURATION WHERE NECESSARY TO
 ENSURE PROJECT FEASIBILITY.
   9.  NOTWITHSTANDING  THE  PROVISIONS  OF ANY OTHER LAW, RULE, OR REGU-
 LATION TO THE CONTRARY, IN MAKING GRANTS OR LOANS  UNDER  THIS  SECTION,
 THE  DIVISION  OF  HOUSING  AND COMMUNITY RENEWAL SHALL NOT REQUIRE THAT
 TENANTS BE CERTIFIED AS LOW-  OR  MODERATE-INCOME  OR  THAT  CONTRACTUAL
 GUARANTEES OR DEED RESTRICTIONS BE IN PLACE TO ENSURE CONTINUED LOW- AND
 MODERATE-INCOME OCCUPANCY AS A CONDITION OF PROVIDING HOUSING ASSISTANCE
 FROM  ANY  PROGRAM ADMINISTERED BY THE DIVISION, WHEN THAT ASSISTANCE IS
 PROVIDED FOR A PROJECT OF MODERATE REHABILITATION IF  THE  PROJECT:  (A)
 CONTAINS  THIRTY  OR  FEWER  RENTAL UNITS AND (B) IS LOCATED IN A CENSUS
 TRACT IN WHICH THE MEDIAN HOUSEHOLD INCOME IS SIXTY PERCENT OR  LESS  OF
 THE  MEDIAN  INCOME  FOR THE HOUSING REGION IN WHICH THE CENSUS TRACT IS
 LOCATED, AS DETERMINED FOR A THREE-PERSON HOUSEHOLD BY THE  DIVISION  IN
 ACCORDANCE  WITH THE LATEST FEDERAL DECENNIAL CENSUS. A LIST OF ELIGIBLE
 CENSUS TRACTS SHALL BE MAINTAINED BY THE DIVISION OF HOUSING AND  COMMU-
 NITY  RENEWAL  AND  SHALL  BE ADJUSTED UPON PUBLICATION OF MEDIAN INCOME
 FIGURES BY CENSUS TRACT AFTER EACH FEDERAL DECENNIAL CENSUS.
   10. IN ADDITION TO OTHER GRANTS OR  LOANS  AWARDED  PURSUANT  TO  THIS
 SECTION,  AND  WITHOUT REGARD TO ANY LIMITATIONS ON SUCH GRANTS OR LOANS
 FOR ANY OTHER PURPOSES HEREIN IMPOSED, THE COMMISSIONER OF  HOUSING  AND
 COMMUNITY  RENEWAL SHALL ANNUALLY ALLOCATE SUCH AMOUNTS AS MAY BE NECES-
 S. 6958                            27
 
 SARY IN THE COMMISSIONER'S DISCRETION, TO FUND RENTAL ASSISTANCE GRANTS.
 SUCH RENTAL ASSISTANCE GRANTS SHALL BE DEEMED NECESSARY  AND  AUTHORIZED
 PURSUANT  TO ARTICLE SIXTEEN OF THE PUBLIC HOUSING LAW, IN ORDER TO MEET
 THE HOUSING NEEDS OF CERTAIN LOW-INCOME HOUSEHOLDS WHO MAY NOT BE ELIGI-
 BLE TO OCCUPY OTHER HOUSING PRODUCED PURSUANT TO SUCH ARTICLE.
   11.  MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF HOUSING AND COMMUNITY RENEWAL.
   §  4.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law.

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Senate Bill S6958

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Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Sponsored By

Robert Jackson

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

2025-S6958 (ACTIVE) - Details

2025-S6958 (ACTIVE) - Summary

2025-S6958 (ACTIVE) - Sponsor Memo

2025-S6958 (ACTIVE) - Bill Text download pdf

Comments