NJ is broken down into different regions

• Each region is evaluated and are based off of the median income 
• A low income unit is 50% or less of median income 
• A moderate income unit is between 50% and 80% of median income

Affordable housing does not mean section 8 or subsidized housing

Region 3 (somerset, middlesex, hunterdon)

• The round of development has to have 50% of the units be low income and 50% of the units moderate income housing
• Region 3 has the highest moderate income housing in the state 

Visual Timeline

Round 1 1975 thru 1983

March 1975 Mount Laurel I - The New Jersey Supreme Court ruled it was unconstitutional for any municipality in the state to zone in ways that would make it impossible to build housing for people with low and moderate incomes. The decision set guidelines for townships to provide affordable housing

October 1975  Fair Share Housing Center was founded to end discriminatory or exclusionary housing patterns and provide the opportunity for all  to reside in an environment which offers safe, decent, and sanitary housing near employment and educational opportunities.

Round 2 1983 thru 1999

1983 Mount Laurel II established an enforcement mechanism that allowed the lower courts to grant a “builder’s remedy” to any developer proposing lower-income housing projects in municipalities whose zoning didn’t accommodate such housing. If granted by the court, the remedy would allow a developer to ignore all zoning regulations when constructing low- and moderate-income housing. The 1983 decision also stated that all towns have an obligation to provide a reasonable opportunity for the development of adequate affordable housing.

1985  the state enacted the Fair Housing Act and created the Council on Affordable Housing  (COAH)  to enforce the Fair Housing Act by setting quotas for how many affordable homes and apartments each town must plan for and to approve municipal housing plans

1996 COAH grants Hillsborough substantive certification.

1998 (02/07/1998) Hillsborough Alliance for Adult Living (“HAAL”) files suit against the Township, as well as others.  (06/03/1998) COAH revokes Hillsborough’s certification via decision and opinion.  (09/1998) Builder’s remedy lawsuit filed against Township for construction of up to 450 housing units on approximately 61 acres, with a 20% set aside for low and moderate income housing.  Another Builder’s remedy lawsuit sought 2, 400 residential units on 240.2 acres.  Through a series of negotiations the settlement resulted in 185 age restricted units in exchange for 14 age restricted, affordable units, providing the Township $325,000 to transfer 13 units to another municipality through an RCA, and the other resulted in 698 units on 190 acres in exchange for 105 age restricted, affordable units.

Round 3 - 1999

1999 Hillsborough one of 320 towns that filed an immunity request.  Request was granted.  Township will continue to have immunity as long it continues to show its ability to create an affordable housing plan. Will only grant builders remedy if all options have been exhausted or if the municipality refuses to cooperate.

1999 Hillsborough became the subject of builder’s remedy lawsuit

2002 - Hillsborough began operating under the Supreme Court to fulfill it’s Affordable Housing obligations.  Judgement of repose, which is an extension of the statute of limitations for round 2 obligations (which had ended in 1999)

Round 2 - 461 units satisfied primarily through regional contribution agreements which allowed communities to share their obligations.  Hillsborough worked with Manville and Phillipsburg, giving and receiving.  RCAs are no longer permissible under current affordable housing regulations.

2005 Growth Share Requirements established 1 affordable unit for every 8 market rate units and 1 affordable unit for every 25 jobs created within municipality= 461 units 

2006 287 New Jersey municipalities were part of COAH and 78 were under court’s jurisdiction.

Hillsborough Township passes a resolution that commits the Township of Hillsborough to file or petition the Council on Affordable Housing for third round substantive certification no later than May 15, 2007 or October 16, 2008, depending on the Court's ruling regarding to the Township's motion seeking a declaration that COAH's recent regulation does not apply to the Township.  (Resolution establishing the intent of the Township of Hillsborough, as required by new Council on Affordable Housing (COAH) regulations, to file or petition COAH for third round substantive certification no later than May 15, 2007 or October 16, 2008, Depending on the Court’s Ruling.)

Hillsborough Township adopts Ordinance 2006-51 Amending Chapter 188 (Development Regulations) Of The Code Of The Township Of Hillsborough To Establish A Separate Revised Affordable Housing Growth Share Requirement For Residential And Non-residential Development 

https://ecode360.com/documents/HI0602/public/76823156.pdf and Ordinance 2006-52  An Ordinance Amending Chapter 188 (Development Regulations) Of The Code Of The Township Of Hillsborough To Revise The Affordable Housing Development Fee Requirements https://ecode360.com/documents/HI0602/public/76823155.pdf

2008 Growth Rate Requirements that were established in 2005 invalidated.  New Rate established 1 affordable unit for every 5 market rate unit and 1 affordable unit for every 15 jobs created within municipality which equalled 475 units

2008 The Fair Housing Act was amended to create a 2.5-percent commercial development fee to support affordable housing in municipalities. The amendment also eliminated the Regional Contribution Agreement, which allowed a municipality to transfer a portion of its affordable housing obligation to another municipality.  Hillsborough joined Statewide Lawsuit Opposing Affordable Housing Rules, citing questionable methodology used by the Council on Affordable Housing (COAH) in determining affordable housing requirements. https://ecode360.com/documents/HI0602/public/71310609.pdf

2010 - Hillsborough creates plan to help meet obligation.  Number of projects outlined to meet obligation.  Once again rules were invalidated. Continues to work the plan based on the 475 required units (and presently still working toward that number)  

Green Village part of plan https://ecode360.com/documents/HI0602/public/71047377.pdf

Through the plan adoption, Hillsborough Further Reduces Affordable Housing Plan By 105 Units  https://ecode360.com/documents/HI0602/public/71047627.pdf

2011  Another round of amendments were made to the Fair Housing Act, eliminating COAH and giving affordable housing oversight duties to the state Department of Community Affairs. In 2012, Gov. Chris Christie signed an executive order to abolish COAH. That order was overturned by the Appellate Division of Superior Court and COAH was reinstated.

2012 Hillsborough acts on plan and preserves $3.6M in the AFHTF https://ecode360.com/documents/HI0602/public/82630261.pdf

2014 COAH passes new guidelines, increasing the number of units developer were permitted to build in in exchange affordable housing units from 4 to 9.  

2015 COAH failed to establish affordable housing quotas and guidelines for municipalities, so the Supreme Court ordered the state court to take over that responsibility. As a result, municipalities around the state submitted draft affordable housing plans to the courts, outlining how they will meet their obligations. Municipalities around the state filed in Superior Court for certification, which would protect them from builder’s remedy lawsuits. The Cherry Hill-based Fair Share Housing Center intervened in cases where it believed adequate affordable housing wasn’t provided or planned

March 2015 Hillsborough Township filed a Declaratory Judgment action to protect itself. 8 groups then filed intervenor suits. The Township has been negotiating with the Courts, Fair Share, intervenors.

March 2023 The Township adopted a veteran’s preference for affordable housing for low and moderate income described in the amended Housing Plan Element and Fair Share Plan.

The current Affordable Housing Regional Income Limits are included here (as of May 16, 2025). For example, the income levels for Region 3 (Somerset, Middlesex, Hunterdon) for a 1 person household based on a median income of $107,400 is as follows:

• Moderate: $85,920
• Low: $53,700
• Very Low: $32,220

Hillsborough Township's Third round obligation was 1,378 affordable housing units. However, the Settlement Agreement between the Township and Fair Share Housing Center granted the Township a Third Round vacant land adjustment, the obligation is now 1,109 affordable housing units based on Realistic Development Potential (RDP). For a summary of the Third Round obligation, please see the Housing Plan Element & Fair Share Plan, pages 28 to 35.

RPM/Amwell Commons 2015

• A financial agreement between Amwell Commons Urban Renewal Associates and the township was met, where the Entity filed an application seeking a long term tax exemption in exchange for an affordable housing project consisting of the construction of 54 affordable housing units.

Brookhaven 2018

• This agreement was intended to resolve the DJ Litigation as it relates to the Brookhaven Property and to create a realistic opportunity for the construction of the Inclusionary Development substantially consistent with the development plan and Zoning Ordinance

Larken Associates 2018

• A settlement agreement between the township and Larken Associates in which Larken and related entities came to an agreement to create 191 units on Block 178, Lots 4, 5, 6, 7, 8, 9, 10, and 11 on the township tax map, 46 of which are affordable housing units.

Blue star equities 2019

• The township adopted Ordinance 2017-20 which, amongst other things, created a “multi-family inclusionary overlay district” in the GA Gateway A District Zone, which applies to Block 200.01, Lots 4, 5, and 6 on the Hillsborough Township Tax Map (Hereafter referred to as the “Blue Star Property”)

Campus Associates 2019

• A settlement litigation agreement whereas the township and campus associates agreed on a plan to construct 96 units on block 58. Lots 1.05 on the Township’s Tax Map, 23 of which are affordable housing units.

Hillsborough 206 Holdings LLC 2019

• A Developer’s Agreement whereas Hillsborough 206 Holdings LLC obtained a preliminary and final major site plan to build 175 dwelling units, 42 of which will be affordable housing units.

Concord street Urban renewal associates 2019

• The township designated the Entity(Concord street Urban Renewal Associates) as a Redeveloper for the affordable housing project set forth, and established a plan to build 88 rental units.(87 affordable housing units and 1 market rate unit)

M&M Realty Partners LLC 2019

• A settlement agreement in which the township and M&M Realty Partners agreed on the plan to construct 380 market rate single family homes and 88 affordable housing units.

Royce Brooke Golf Course / Toll Brothers 2019

• A settlement of litigation agreement in which Royce Brooke and Toll Brothers have reached an agreement with the township to develop no more than 174 single family lots, with the developer making a contribution of $5,040,000 to the Township’s affordable housing trust fund

Premier Development 2020

• The Premier Development Settlement which consisted of the approval of 469 residential apartment units to be built on Route 206. Out of the 469 units, 117 of them satisfy the Hillsborough Township Fair Shae obligations for affordable housing.

Fair Share Housing Center 2020

• The FSHC agrees that the Township satisfies its obligations under the Mount Laurel doctrine and Fair Housing Act of 1985 through the adoption of a Housing Element and Fair Share Plan, conforming with the terms and through the Implementation of the Plan and this Agreement. 

Compliance Hearing 2022

• In a compliance hearing the Court found and determined that Hillsborough Township has satisfied its obligation to provide realistic opportunity to satisfy its Rehabilitation, Prior Round, and Third Round components of its “fair share” affordable housing obligation under Mount Laurel IV.

• Round 3 started in 1999 but regulations not officially established until 2005
• Failure to maximize the last round
• Hillsborough has a vast amount of developable land and one of the key factors in determining a municipalities affordable housing obligation is the number of buildable acres 
• Despite multiple trials, the number of required affordable housing units for Hillsborough is yet to be determined (was resolved in April 2020, link to press release) https://ecode360.com/documents/HI0602/public/539261177.pdf
• Fair share housing is  not concerned with the number of market rate units, only affordable housing units
• 7 different interveners (developers), some with multiple properties in town, who wish to have their properties included in the obligation
• Developers do not make money building affordable units so they want to build mostly market rate units with a small amount of affordable units in order to make it profitable.  Hillsborough has been fighting against this because it drastically increases the total number of units being built, causing overgrowth and overburdening of services and resources of the township.
• Hillsborough was within 30 day of approval in round 3 when the court changed the rules
• Since 1998 the Township has been proactive in addressing Affordable Housing needs and obligations.
• Rules are constantly changing
• If the Township rejects development plans then it will lose control

Density Bonus means an increase in the number of market-rate units on the site in order to provide an incentive for the construction of affordable housing 

A "builder's remedy lawsuit" is a New Jersey lawsuit filed by a real estate developer in an attempt to force a New Jersey town to allow the construction of a large, multi-family housing complex that includes some affordable housing alongside ordinary apartments

Visonages - Hillsborough falls under Visonage made up of Somerset, Hunterdon and Warren.  Visonage works to negotiate requirements and develop plans to meet obligations.

Find more information on affordable housing in New Jersey on the New Jersey Housing Research Center website.