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Highlands planning board adopts fourth‑round housing element and spending plan
Summary
The Borough of Highlands Land Use Board voted to adopt its fourth‑round housing element and a spending plan required under the state Fair Housing Act; the board said the borough is largely built out and used a land‑adjustment approach while noting the spending plan requires council adoption.
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The Borough of Highlands Land Use Board voted to adopt its fourth‑round housing element and the related spending plan during a public hearing held at the borough hall. The board recorded unanimous approval of the housing element and the spending plan.
Planning consultant Megan told the board the state's Fair Housing Act requires every municipality to address affordable housing obligations using a methodology from the New Jersey Department of Community Affairs and to have a plan adopted by June 30. "The state legislature last year adopted the Fair Housing Act ... every municipality ... is required to address its affordable housing obligation," Megan said, describing the deadline and the DCA methodology used to set local targets.
The consultant said Highlands is largely developed and is relying on the statute's land‑adjustment provisions to account for limited vacant land. She outlined how the borough meets obligations through existing affordable units, mandatory set‑asides for larger projects and redevelopment‑area minimums: a 20% affordable set‑aside for developments of five or more units and a 15% minimum for rental units in the designated redevelopment area.
Megan summarized the spending plan component, explaining the development‑fee revenue projections and the purpose of the trust account that funds affordable housing activities. She told the board that while the planning board adopts the housing element, "the governing body . . . endorses this plan and adopts the spending plan," and that the council's adoption is a separate step.
Resident Terry Turner asked whether a conceptual redevelopment known as "Shadow One" would be rental or for‑sale housing and how many units were envisioned. "Is it going to be affordable homes for sale or is it just going to be rentals?" Turner asked. Staff responded that no application has been filed and that conceptual materials previously reviewed indicated approximately "292 rental units" with about "44" affordable units under the state formula, but stressed the numbers are conceptual and would be finalized in any future application.
After public questions, the board voted to approve the housing element and then voted to adopt the spending plan; recorded votes listed Mayor Bulan, Chief Burton, Miss Laruso, Mr. Montavo, Mr. Zil, Miss Chang, Mr. Kramer, Vice Chair Tierney and Chair Knox in favor of both items. Staff said adoption by the planning board completes the board's role, and that the governing body (borough council) must still formally adopt the spending plan for it to take effect.
Next steps: the adopted housing element will be transmitted per the DCA process and the spending plan forwarded to the borough council for its consideration and adoption as required by ordinance.

