Princeton council endorses fourth‑round affordable housing plan and approves settlement with Fair Share Housing Center

The Princeton mayor and council on June 26, 2025, endorsed the town’s fourth‑round municipal housing element and fair share plan, adopted the attached spending plan, authorized an intent to fund or bond the program, and approved a settlement agreement with the Fair Share Housing Center.

The actions, taken by voice vote during the council meeting, implement Princeton’s submission for the state’s fourth‑round affordable housing process and formalize the town’s agreement with Fair Share Housing Center, officials said.

Why it matters: the resolutions set the local plan and spending framework for the fourth round of affordable housing obligations and commit the municipality to pursue funding options that could include municipal bonding if state or other funds do not materialize.

The council considered three linked resolutions (listed in the meeting as 25‑230, 25‑231 and 25‑232). Councilmember Mia moved the resolution endorsing the municipal housing element and adopting the fourth‑round spending plan; Councilmember Michelle seconded the motion and the council voted in favor. Councilmember Leticia moved, and Councilmember Layton seconded, a separate resolution recording the town’s intent to fund or bond the fourth‑round affordable housing program; that motion also carried. Councilmember Mia moved, and Councilmember Layton seconded, the resolution authorizing a fourth‑round settlement agreement with Fair Share Housing Center; the council approved it by voice vote.

Planning staff emphasized two financial details during discussion: the spending plan uses the statutory minimum for rehabilitation set by state law and program guidance and contains contingencies for municipally sponsored developments. "In our spending plan, the minimum is $10,000 per statute, but we can exceed that if we want to," a staff member said. When asked how much bonding the town could face for the Franklin lot if outside funding is unavailable, a staff member replied, "That would probably be around $60,000,000," and later clarified an estimate between $60 million and $70 million.

Councilmember David Cohen, speaking remotely, framed the settlement with Fair Share Housing Center as the product of extended negotiation and noted local and statewide context. "Princeton and the Fair Share Housing Center were pitted against one another in court, and spent a great deal of money in a 41‑day trial, which had a benefit to the entire state of New Jersey in that it resulted in the Jacobson methodology," Cohen said, referring to the legal and technical approach the Department of Community Affairs used for fourth‑round calculations. Cohen said the current settlement was reached without returning to court and described it as "amicable".

Council members and staff said the plan was informed by a recent planning board hearing and by extensive committee work. Mayor Bridal and several councilmembers publicly thanked planning staff and committee members, including planner Justin Lesko, for lengthy work on the fourth‑round submission and the spending plan.

The record on the council’s votes was by voice; the meeting transcript records unanimous "aye" responses for each of the three resolutions. The spending plan includes a rehabilitation component that will require consultation with the Princeton Housing Authority to determine actual per‑project costs above the statutory minimum, officials said.

Next steps noted at the meeting: the town will pursue state mixed‑income funding this fall, and staff said they will consult with the housing authority to refine rehabilitation cost estimates. Council members also said capital budgeting processes will need to account for the potential municipal bond obligation for any municipally sponsored projects that do not receive external funding.

The council adjourned after the votes; councilmember David Cohen made the motion to adjourn.