Ultimately, a Settlement Agreement which was executed by the City of Summit and FSHC,  sets forth the extent of Summit’s prior need and prospective need obligations. The parties have agreed upon the following obligations for the City for the period from 1987 through July 1, 2025: a rehabilitation obligation of 131 units, a Prior Round obligation of 171 units, and a Prospective Need obligation of 567 units.

The Settlement Agreement also affirmsthat the City’s realistic development potential (RDP) is thirty-six (36) units due to the City’s lack of vacant, developable land with which to satisfy its affordable housing obligation.   The RDP was based upon a vacant land adjustment (VLA) analysis, as well as analyses of pending and existing affordable housing developments approved since 1999. In addition, the Settlement Agreement notes the manner in which the City is to address its affordable housing obligation and identifies its Unmet Need of 702 units (567 prospective need + 171 prior round obligation - 36 RDP = 702).  On October 31, 2016, the Court approved Summit’s Settlement Agreement after a duly-noticed Fairness Hearing held on October 17, 2016.

On May 30, 2017, the Court held a Compliance Hearing on the City’s Plan.   On September 25, 2017, the Court entered a “conditional” Judgment of Compliance and Repose (“JOR”), which officially determined the City’s obligations:  a rehabilitation obligation of 131 units, a prior round obligation of 171 units, and a prospective need obligation of 567.  It also approved the City’s RDP of 36 and declared the City’s “unmet need” to be 653 units.  This JOR included several conditions that had to be met before a final JOR could be entered.   The City satisfied those conditions and was able to receive a Final JOR.

On January 22, 2019, the Court granted the City of Summit a Final JOR, which approved the City’s 2018 amendment to its Housing Element and Fair Share Plan, its Spending Plan (“the Plan”), and other ordinances required to be adopted by the Settlement Agreement to implement the Plan, and included the findings from its 2017 conditional JOR.  The City has agreed to address its obligation through a variety of existing affordable housing units and pending development applications that include affordable housing, overlay zones and the use of existing multi-family zones in the City.  To address its RDP, the City received credit for 10 existing group home bedrooms, twenty existing affordable housing units, and 11 units from projects pending at the time the City adopted its now-approved Plan.  Those projects are now built and occupied by low and moderate-income households.  To address its “unmet need,”  the Plan identifies a number of overlay zones wherein attached residential development with affordable housing set-asides may be developed, and the manner in which the City will attempt to facilitate the development of up to fifty new affordable housing units on scattered sites. Furthermore, the Plan identifies the extensive areas in the City already zoned for multi-family housing where the City can also capture affordable units through the use of its City-wide Mandatory Set-Aside Ordinance. 

The City continues to implement its Plan and the terms of its JOR and Settlement Agreement with FSHC and provides an annual update meeting in February of each year, which is also then reported at the Common Council meeting following that meeting.  The City’s Municipal Housing Liaison and its Administrative Agent monitor the City’s existing affordable units as well as the City’s progress toward implementing its Plan.