New Jersey § 52:27d-312

§ 52:27d-312.

a. Except as prohibited under P.L.2008, c. 46 ( C.52:27D-329.1 et al.), a municipality may propose the transfer of up to 50% of its fair share to another municipality

within its housing region by means of a contractual agreement into which two municipalities

voluntarily enter. A municipality may also propose a transfer by contracting with the agency or another

governmental entity designated by the council if the council determines that the municipality

has exhausted all possibilities within its housing region. A municipality proposing to transfer to another municipality, whether directly or

by means of a contract with the agency or another governmental entity designated by

the council, shall provide the council with the housing element and statement required

under subsection c. of section 11 of P.L.1985, c. 222 ( C.52:27D-311 ), and shall request the council to determine a match with a municipality filing a

statement of intent pursuant to subsection e. of this section. Except as provided in subsection b. of this section, the agreement may be entered

into upon obtaining substantive certification under section 14 of P.L.1985, c. 222

( C.52:27D-314 ), or anytime thereafter. The regional contribution agreement entered into shall specify how the housing shall

be provided by the second municipality, hereinafter the receiving municipality, and

the amount of contributions to be made by the first municipality, hereinafter the

sending municipality. b. A municipality which is a defendant in an exclusionary zoning suit and which has

not obtained substantive certification pursuant to P.L.1985, c. 222 may request the

court to be permitted to fulfill a portion of its fair share by entering into a regional

contribution agreement. If the court believes the request to be reasonable, the court shall request the

council to review the proposed agreement and to determine a match with a receiving

municipality or municipalities pursuant to this section. The court may establish time limitations for the council's review, and shall retain

jurisdiction over the matter during the period of council review. If the court determines that the agreement provides a realistic opportunity for

the provision of low and moderate income housing within the housing region, it shall

provide the sending municipality a credit against its fair share for housing to be

provided through the agreement in the manner provided in this section. The agreement shall be entered into prior to the entry of a final judgment in the

litigation. In cases in which a final judgment was entered prior to the date P.L.1985, c. 222

takes effect and in which an appeal is pending, a municipality may request consideration

of a regional contribution agreement; provided that it is entered into within 120

days after P.L.1985, c. 222 takes effect. In a case in which a final judgment has been entered, the court shall consider whether

or not the agreement constitutes an expeditious means of providing part of the fair

share. Notwithstanding this subsection, no consideration shall be given to any regional contribution

agreement of which the council did not complete its review and formally approve a

recommendation to the court prior to the effective date of P.L.2008, c. 46 ( C.52:27D-329.1 et al.). c. Except as prohibited under P.L.2008, c. 46 ( C.52:27D-329.1 et al.), regional contribution agreements shall be approved by the council, after review by the county

planning board or agency of the county in which the receiving municipality is located. The council shall determine whether or not the agreement provides a realistic opportunity

for the provision of low and moderate income housing within convenient access to employment

opportunities. The council shall refer the agreement to the county planning board or agency which

shall review whether or not the transfer agreement is in accordance with sound, comprehensive

regional planning. In its review, the county planning board or agency shall consider the master plan

and zoning ordinance of the sending and receiving municipalities, its own county master

plan, and the State development and redevelopment plan. In the event that there is no county planning board or agency in the county in which

the receiving municipality is located, the council shall also determine whether or

not the agreement is in accordance with sound, comprehensive regional planning. After it has been determined that the agreement provides a realistic opportunity

for low and moderate income housing within convenient access to employment opportunities,

and that the agreement is consistent with sound, comprehensive regional planning,

the council shall approve the regional contribution agreement by resolution. All determinations of a county planning board or agency shall be in writing and

shall be made within such time limits as the council may prescribe, beyond which the

council shall make those determinations and no fee shall be paid to the county planning

board or agency pursuant to this subsection. d. In approving a regional contribution agreement, the council shall set forth in

its resolution a schedule of the contributions to be appropriated annually by the

sending municipality. A copy of the adopted resolution shall be filed promptly with the Director of the

Division of Local Government Services in the Department of Community Affairs, and

the director shall thereafter not approve an annual budget of a sending municipality

if it does not include appropriations necessary to meet the terms of the resolution. Amounts appropriated by a sending municipality for a regional contribution agreement

pursuant to this section are exempt from the limitations on increases in final appropriations imposed under P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ). e. The council shall maintain current lists of municipalities which have stated an

intent to enter into regional contribution agreements as receiving municipalities,

and shall establish procedures for filing statements of intent with the council. No receiving municipality shall be required to accept a greater number of low and

moderate income units through an agreement than it has expressed a willingness to

accept in its statement, but the number stated shall not be less than a reasonable

minimum number of units, not to exceed 100, as established by the council. The council shall require a project plan from a receiving municipality prior to

the entering into of the agreement, and shall submit the project plan to the agency

for its review as to the feasibility of the plan prior to the council's approval of

the agreement. The agency may recommend and the council may approve as part of the project plan

a provision that the time limitations for contractual guarantees or resale controls

for low and moderate income units included in the project shall be less than 30 years,

if it is determined that modification is necessary to assure the economic viability

of the project. f. The council shall establish guidelines for the duration and amount of contributions

in regional contribution agreements. In doing so, the council shall give substantial consideration to the average of:

(1) the median amount required to rehabilitate a low and moderate income unit up to

code enforcement standards; (2) the average internal subsidization required for a

developer to provide a low income housing unit in an inclusionary development; (3)

the average internal subsidization required for a developer to provide a moderate

income housing unit in an inclusionary development. Contributions may be prorated in municipal appropriations occurring over a period

not to exceed ten years and may include an amount agreed upon to compensate or partially

compensate the receiving municipality for infrastructure or other costs generated

to the receiving municipality by the development. Appropriations shall be made and paid directly to the receiving municipality or

municipalities or to the agency or other governmental entity designated by the council,

as the case may be. g. The council shall require receiving municipalities to file annual reports with

the agency setting forth the progress in implementing a project funded under a regional

contribution agreement, and the agency shall provide the council with its evaluation

of each report. The council shall take such actions as may be necessary to enforce a regional contribution

agreement with respect to the timely implementation of the project by the receiving

municipality. No consideration shall be given to any regional contribution agreement for which the

council did not complete its review and grant approval prior to the effective date

of P.L.2008, c. 46 ( C.52:27D-329.1 et al.). On or after the effective date of P.L.2008, c. 46 ( C.52:27D-329.1 et al.), no regional contribution agreement shall be entered into by a municipality,

or approved by the council or the court.