Affordable Housing Key Terms

COAH (Council on Affordable Housing)

COAH was established by the Fair Share Housing Act in 1985 to facilitate and oversee the production of sound, affordable housing for low and moderate income households in the State of New Jersey.

FSHC (Fair Share Housing Center)

The Fair Share Housing Center is a New Jersey nonprofit organization and court-recognized affordable housing advocacy group. FSHC has historically been a player in affordable housing law and practice in New Jersey and has often been designated as an “interested party” by the Courts.

First Round

Refers to time frame between 1987 and 1993 and the associated fair share need obligations as determined by COAH during this time period. Colloquially, the first and second rounds are collectively referred to as the “Prior Round.”

HEFSP (Housing Element and Fair Share Plan)

Under NJ Municipal Land Use Law and the Fair Share Act, municipalities are required to include a housing element in the master plans. The primary purpose of a municipality’s HEFSP is to (a) provide current information regarding the municipality’s demographics, housing, and employment conditions, (b) describe the specific methods in which it will meet its low and moderate incoming housing obligations, and (c) demonstrate existing or planned zoning changes that will allow the municipality to provide opportunities for affordable housing access for present and future populations.

Judgment of Compliance and Report (JOR)

The process during the current Third Round, where municipalities seek approval of their HEFSPs. The JOR is the judicial equivalent of Substantive Certification from COAH.

Present Need Obligation / Rehabilitation Share

A municipality’s present need obligation, also called a rehabilitation share, refers to its number of deficient housing units currently occupied by low and moderate income households. Criteria for determining deficient housing includes pre-1960 over-crowded units, incomplete plumbing, and incomplete kitchen facilities.

Prior Round Obligation

A municipality’s Prior Round obligation refers to its affordable housing obligation from the First and Second Rounds (1987-1999).

Prospective Need Obligation

A municipality’s prospective need obligation refers to its affordable housing obligation for the Third Round (1999-2025).

Second Round

Refers to the time frame between 1993 to 1999 and the associated fair share need obligations as determined by COAH during this time period. Colloquially, the first and second rounds are collectively referred to as the “Prior Round.”

Substantive Certification

The process during the Prior Round where COAH approved a municipality’s housing element and fair share plan in accordance with the provisions of the Fair Housing Act. A grant of substantive certification was valid for a period of six years.

Third Round

Initially, this was meant to refer to the timeframe between 1999 and 2008. Due to the NJ Appellate Division challenging and ultimately invalidating COAH’s Third Round rules in 2007 and 2010, the NJ Supreme Court subsequently declared COAH moribund in 2015 and ordered the courts to resume the role of evaluating municipal compliance with affordable housing obligations. The Third Round in practice, therefore, is now known to represent the timeframe between 1999 and 2025.

Vacant Land Adjustment

A municipality can conduct a vacant land adjustment to determine how much of an obligation it can realistically accommodate given the amount of developable land it has. When a vacant land adjustment is completed, the obligation is further divided into two categories based on the results: a municipality’s unmet need (the amount of its obligation that it cannot realistically provide for) and a municipality’s realistic development potential (the amount of its obligation that it can realistically provide for).