S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2558
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2019
                                ___________
 
 Introduced  by M. of A. GANTT -- read once and referred to the Committee
   on Housing
 
 AN ACT to amend the executive law, the public housing law, the town law,
   the village law and the general city law, in relation to creation of a
   fair share housing act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 31 of the executive law is amended by adding a new
 subdivision 11 to read as follows:
   11. COUNCIL ON AFFORDABLE HOUSING.
   § 2. The executive law is amended by adding a new article 13-B to read
 as follows:
                                ARTICLE 13-B
                       COUNCIL ON AFFORDABLE HOUSING
 SECTION 268. COUNCIL ON AFFORDABLE HOUSING.
   § 268. COUNCIL ON AFFORDABLE HOUSING. THE CHAIRPERSON OF  THE  COUNCIL
 ON  AFFORDABLE  HOUSING  APPOINTED PURSUANT TO THE PROVISIONS OF ARTICLE
 TWELVE-A OF THE PUBLIC HOUSING LAW, SHALL BE THE HEAD OF THE COUNCIL  ON
 AFFORDABLE HOUSING AND SHALL HAVE AND EXERCISE ALL THE FUNCTIONS, POWERS
 AND  DUTIES  VESTED IN HIM OR HER BY SUCH ARTICLE OR ANY OTHER PROVISION
 OF LAW. THE CHAIRPERSON OF  THE  COUNCIL  ON  AFFORDABLE  HOUSING  SHALL
 RECEIVE A SALARY TO BE FIXED BY THE GOVERNOR WITHIN THE AMOUNT APPROPRI-
 ATED THEREFOR.
   § 3. The public housing law is amended by adding a new article 12-A to
 read as follows:
                                ARTICLE XII-A
                          FAIR SHARE HOUSING ACT
 SECTION 320. SHORT TITLE.
         321. LEGISLATIVE FINDINGS.
         322. LEGISLATIVE DECLARATIONS AND INTENTION.
         323. DEFINITIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00149-01-9

 A. 2558                             2
 
         324. COUNCIL ON AFFORDABLE HOUSING; CREATION.
         325. COUNCIL ON AFFORDABLE HOUSING; ORGANIZATION.
         326. COUNCIL ON AFFORDABLE HOUSING; DUTIES.
         327. PROCEDURAL RULES.
         328. NOTICE OF INTENT TO SUBMIT FAIR SHARE HOUSING PLAN.
         329. HOUSING ELEMENT OF MUNICIPALITY.
         330. HOUSING ELEMENT; PROVISION OF LOW AND MODERATE INCOME HOUS-
                ING.
         331. REGIONAL CONTRIBUTION AGREEMENT.
         332. CERTIFICATION OF HOUSING ELEMENT.
         333. REVIEW OF PETITION.
         334. MEDIATION AND REVIEW PROCESS BY COUNCIL.
         335. JURISDICTION OF LITIGATION.
         336. PRESUMPTION OF VALIDITY OF APPROVED HOUSING ELEMENT.
         337. OBLIGATION TO EXHAUST REMEDIES.
         338. FAILURE  OF  COUNCIL  TO  COMPLETE REVIEW PROCESS IN TIMELY
                MANNER.
         339. STATE AFFORDABLE HOUSING PROGRAMS.
         340. MUNICIPALITY WITH SETTLEMENT IN EXCLUSIONARY  ZONING  LITI-
                GATION.
         341. PHASE-IN  OF  OBLIGATION FOR FAIR SHARE OF LOW AND MODERATE
                INCOME HOUSING; ORDER OF COURT.
         342. PURCHASE, LEASE OR ACQUISITION BY GIFT OF REAL PROPERTY.
         343. ANNUAL REPORT OF COUNCIL.
   § 320. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AND
 REFERRED TO AS THE "FAIR SHARE HOUSING ACT".
   §  321. LEGISLATIVE FINDINGS. THE LEGISLATURE HEREBY FINDS IT TO BE IN
 THE INTERESTS OF THE GENERAL WELFARE OF THE REGIONAL COMMUNITIES OF  NEW
 YORK  STATE  TO INCREASE TO THE MAXIMUM EXTENT POSSIBLE AND FEASIBLE THE
 OPPORTUNITIES FOR ALL RESIDENTS TO SECURE, CONSISTENT WITH THEIR  CHOICE
 AND  MEANS,  ADEQUATE  HOUSING IN A SAFE AND HEALTHY ENVIRONMENT, WITHIN
 CONVENIENT ACCESS TO THEIR PLACES OF EMPLOYMENT AND TO NECESSARY  COMMU-
 NITY FACILITIES.
   THE  LEGISLATURE  FINDS  THAT  DISCRIMINATORY  AND EXCLUSIONARY ZONING
 REGULATIONS ENFORCED IN MUNICIPALITIES THROUGHOUT THE STATE  DENY  LARGE
 NUMBERS  OF CITIZENS OF THIS STATE ACCESS TO ADEQUATE AND DECENT HOUSING
 ACCOMMODATIONS. THE LEGISLATURE FURTHER FINDS THAT  SUCH  ZONING  ABUSES
 HINDER  THE  DEVELOPMENT  OF  RATIONAL  REGIONAL  PLANNING  AND  GROWTH;
 DISCRIMINATE AGAINST PERSONS OF MODERATE AND  LOW  INCOME;  INHIBIT  THE
 ECONOMIC  OPPORTUNITIES OF PRIVATE DEVELOPERS BY DIRECTLY MAKING UNPROF-
 ITABLE THE CONSTRUCTION OF LOW AND MODERATE INCOME HOUSING;  AND  CREATE
 AN  INEQUITABLE  DISTRIBUTION  OF  COSTS  TO  LOCAL  AREAS FOR PROVIDING
 SERVICES TO CITIZENS OF THIS STATE.
   THE LEGISLATURE THEREFORE DECLARES IT TO BE THE OBJECTIVE  AND  POLICY
 OF  THE STATE TO PROHIBIT LOCAL ZONING REGULATIONS WHICH ARE DISCRIMINA-
 TORY OR EXCLUSIONARY IN PURPOSE OR EFFECT, IN ORDER TO ENCOURAGE GREATER
 DIVERSITY AND A BETTER DISTRIBUTION OF HOUSING OPPORTUNITIES  THROUGHOUT
 THE STATE.
   §   322.  LEGISLATIVE  DECLARATIONS  AND  INTENTION.  THE  LEGISLATURE
 DECLARES THAT THE STATUTORY SCHEME SET FORTH IN THIS ARTICLE IS  IN  THE
 PUBLIC INTEREST IN THAT IT COMPREHENDS A LOW AND MODERATE INCOME HOUSING
 PLANNING  MECHANISM IN ACCORDANCE WITH REGIONAL CONSIDERATIONS AND SOUND
 PLANNING CONCEPTS. THE LEGISLATURE DECLARES THAT THE STATE'S  PREFERENCE
 FOR  RESOLUTION  OF  EXISTING AND FUTURE DISPUTES INVOLVING EXCLUSIONARY
 ZONING IS THE MEDIATION AND REVIEW PROCESS CREATED IN THIS  ARTICLE  AND

 A. 2558                             3

 NOT  LITIGATION, AND THAT IT IS THE INTENTION OF THIS ARTICLE TO PROVIDE
 A LEGISLATIVE SOLUTION FOR ACHIEVING FAIR SHARE HOUSING.
   §  323.  DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE THE FOLLOWING
 WORDS AND PHRASES SHALL HAVE THE FOLLOWING MEANINGS, UNLESS A  DIFFERENT
 MEANING CLEARLY APPEARS FROM THE CONTEXT:
   1.  "CONVERSION"  MEANS  THE CONVERSION OF EXISTING COMMERCIAL, INDUS-
 TRIAL OR RESIDENTIAL STRUCTURES FOR  LOW  AND  MODERATE  INCOME  HOUSING
 PURPOSES  WHERE  A  SUBSTANTIAL  PERCENTAGE  OF  THE  HOUSING  UNITS ARE
 PROVIDED FOR A REASONABLE INCOME RANGE OF LOW AND MODERATE INCOME HOUSE-
 HOLDS.
   2. "COUNCIL" MEANS THE COUNCIL ON AFFORDABLE  HOUSING  ESTABLISHED  IN
 SECTION  THREE  HUNDRED  TWENTY-FOUR  OF  THIS ARTICLE, WHICH SHALL HAVE
 PRIMARY JURISDICTION FOR THE ADMINISTRATION OF  HOUSING  OBLIGATIONS  IN
 ACCORDANCE WITH SOUND REGIONAL PLANNING CONSIDERATIONS WITHIN THE STATE.
   3.  "DEVELOPMENT"  MEANS  ANY  DEVELOPMENT  OF REAL PROPERTY FOR WHICH
 PERMISSION MAY BE REQUIRED PURSUANT TO LOCAL ZONING ORDINANCES.
   4. "DIVISION" MEANS THE DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL
 CREATED BY SECTION TEN OF THIS CHAPTER.
   5.  "EXCLUSIONARY  ZONING  LITIGATION"  MEANS  ACTIONS  OR PROCEEDINGS
 BROUGHT IN A COURT  OF  COMPETENT  JURISDICTION  CHALLENGING  A  MUNICI-
 PALITY'S  ZONING  AND  LAND  USE ORDINANCES ON THE BASIS THAT SUCH ORDI-
 NANCES DO NOT MAKE REALISTICALLY POSSIBLE THE OPPORTUNITY FOR AN  APPRO-
 PRIATE VARIETY AND CHOICE OF HOUSING FOR ALL CATEGORIES OF PEOPLE LIVING
 WITHIN  THE  MUNICIPALITY'S  HOUSING  REGION, INCLUDING THOSE OF LOW AND
 MODERATE INCOME, WHO MAY DESIRE TO LIVE IN THE MUNICIPALITY.
   6. "HOUSING REGION" MEANS A GEOGRAPHIC AREA OF NOT LESS THAN  TWO  NOR
 MORE  THAN  FIVE  CONTIGUOUS,  WHOLE  COUNTIES WHICH EXHIBIT SIGNIFICANT
 SOCIAL, ECONOMIC AND INCOME SIMILARITIES, AND WHICH  CONSTITUTE  TO  THE
 GREATEST  EXTENT  PRACTICABLE THE PRIMARY METROPOLITAN STATISTICAL AREAS
 AS LAST DEFINED BY THE UNITED STATES CENSUS BUREAU PRIOR TO  THE  EFFEC-
 TIVE DATE OF THIS ARTICLE.
   7.  "INCLUSIONARY DEVELOPMENT" MEANS A RESIDENTIAL HOUSING DEVELOPMENT
 IN WHICH A SUBSTANTIAL PERCENTAGE OF HOUSING UNITS ARE  PROVIDED  FOR  A
 REASONABLE INCOME RANGE OF LOW AND MODERATE INCOME HOUSEHOLDS.
   8. "LOW INCOME HOUSING" MEANS HOUSING WHICH IS AFFORDABLE ACCORDING TO
 THE  FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR OTHER RECOG-
 NIZED STANDARDS FOR HOME OWNERSHIP AND  RENTAL  COSTS  AND  OCCUPIED  OR
 RESERVED FOR OCCUPANCY BY HOUSEHOLDS WITH A GROSS HOUSEHOLD INCOME EQUAL
 TO FIFTY PERCENT OR LESS OF THE MEDIAN GROSS HOUSEHOLD INCOME FOR HOUSE-
 HOLDS OF THE SAME SIZE WITHIN THE HOUSING REGION IN WHICH THE HOUSING IS
 LOCATED.
   9. "MODERATE INCOME HOUSING" MEANS HOUSING WHICH IS AFFORDABLE ACCORD-
 ING  TO THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR OTHER
 RECOGNIZED STANDARDS FOR HOME OWNERSHIP AND RENTAL COSTS AND OCCUPIED OR
 RESERVED FOR OCCUPANCY BY HOUSEHOLDS WITH A GROSS HOUSEHOLD INCOME EQUAL
 TO MORE THAN FIFTY PERCENT BUT LESS THAN EIGHTY PERCENT  OF  THE  MEDIAN
 GROSS  HOUSEHOLD INCOME FOR HOUSEHOLDS OF THE SAME SIZE WITHIN THE HOUS-
 ING REGION IN WHICH THE HOUSING IS LOCATED.
   10. "PROSPECTIVE NEED" MEANS A PROJECTION OF HOUSING  NEEDS  BASED  ON
 DEVELOPMENT  AND  GROWTH WHICH IS REASONABLY LIKELY TO OCCUR IN A REGION
 OR MUNICIPALITY AS A  RESULT  OF  ACTUAL  DETERMINATION  OF  PUBLIC  AND
 PRIVATE  ENTITIES.  IN DETERMINING PROSPECTIVE NEED, CONSIDERATION SHALL
 BE GIVEN TO APPROVALS OF DEVELOPMENT APPLICATIONS, REAL PROPERTY  TRANS-
 FERS AND ECONOMIC PROJECTIONS.

 A. 2558                             4
 
   11.  "RESOLUTION  OF  PARTICIPATION"  MEANS  A RESOLUTION ADOPTED BY A
 MUNICIPALITY IN WHICH THE MUNICIPALITY PREPARES A FAIR  SHARE  PLAN  AND
 HOUSING ELEMENT PURSUANT TO THIS ARTICLE.
   §  324.  COUNCIL  ON  AFFORDABLE  HOUSING; CREATION. 1. THERE SHALL BE
 ESTABLISHED WITHIN THE EXECUTIVE DEPARTMENT,  A  COUNCIL  ON  AFFORDABLE
 HOUSING  TO  CONSIST  OF NINE MEMBERS APPOINTED BY THE GOVERNOR; OF WHOM
 FOUR SHALL BE ELECTED PUBLIC OFFICERS REPRESENTING  INTERESTS  OF  LOCAL
 GOVERNMENT,    ONE  OF  WHOM SHALL BE REPRESENTATIVE OF AN URBAN MUNICI-
 PALITY HAVING A POPULATION IN EXCESS OF  SEVENTY-FIVE  THOUSAND  PERSONS
 AND  A POPULATION DENSITY IN EXCESS OF THREE THOUSAND PERSONS PER SQUARE
 MILE, ONE OF WHOM SHALL BE REPRESENTATIVE OF  THE  INTERESTS  OF  COUNTY
 GOVERNMENT, ONE OF WHOM SHALL BE REPRESENTATIVE OF THE INTERESTS OF TOWN
 GOVERNMENT,  AND ONE OF WHOM SHALL BE REPRESENTATIVE OF THE INTERESTS OF
 VILLAGE GOVERNMENT; FOUR SHALL REPRESENT THE INTERESTS OF HOUSEHOLDS  IN
 NEED  OF  LOW  AND  MODERATE  INCOME HOUSING, AT LEAST ONE OF WHOM SHALL
 REPRESENT THE INTERESTS OF THE BUILDERS OF LOW AND MODERATE INCOME HOUS-
 ING, AND SHALL HAVE AN EXPERTISE  IN  LAND  USE  PRACTICES  AND  HOUSING
 ISSUES;  AND  ONE  SHALL  BE  THE  COMMISSIONER, SERVING EX OFFICIO. THE
 MEMBERSHIP SHALL BE BALANCED TO THE GREATEST  EXTENT  PRACTICABLE  AMONG
 THE VARIOUS HOUSING REGIONS OF THE STATE.
   2.  THE  NON  EX  OFFICIO  MEMBERS SHALL SERVE FOR TERMS OF SIX YEARS,
 EXCEPT THAT OF THE MEMBERS FIRST APPOINTED, THREE SHALL SERVE FOR  TERMS
 OF FOUR YEARS, THREE FOR TERMS OF FIVE YEARS, AND THREE FOR TERMS OF SIX
 YEARS.  ALL  MEMBERS  SHALL  SERVE UNTIL THEIR RESPECTIVE SUCCESSORS ARE
 APPOINTED AND SHALL HAVE QUALIFIED. VACANCIES SHALL  BE  FILLED  IN  THE
 SAME  MANNER AS THE ORIGINAL APPOINTMENTS, BUT FOR THE REMAINDERS OF THE
 UNEXPIRED TERMS ONLY.
   3. THE MEMBERS, EXCLUDING THE COMMISSIONER, SHALL BE COMPENSATED AT  A
 RATE  TO  BE  DETERMINED  BY THE GOVERNOR AND ALL MEMBERS SHALL BE REIM-
 BURSED FOR ALL NECESSARY EXPENSES INCURRED IN  THE  DISCHARGE  OF  THEIR
 LAWFUL DUTIES.
   4.  THE  GOVERNOR SHALL NOMINATE THE MEMBERS WITHIN THIRTY DAYS OF THE
 EFFECTIVE DATE OF THIS ARTICLE AND SHALL DESIGNATE A MEMBER TO SERVE  AS
 CHAIRPERSON  THROUGHOUT THE MEMBER'S TERM OF OFFICE AND UNTIL HIS OR HER
 SUCCESSOR SHALL HAVE BEEN APPOINTED AND QUALIFIED.
   5. ANY MEMBER MAY BE REMOVED FROM OFFICE BY THE GOVERNOR  FOR  MISCON-
 DUCT  IN  OFFICE,  WILLFUL  NEGLECT OF DUTY, OR OTHER CONDUCT EVIDENCING
 UNFITNESS FOR THE OFFICE, OR FOR INCOMPETENCE. A MEMBER OR  EMPLOYEE  OF
 THE  COUNCIL  SHALL  AUTOMATICALLY FORFEIT HIS OFFICE OR EMPLOYMENT UPON
 CONVICTION OF ANY CRIME.
   § 325. COUNCIL ON AFFORDABLE HOUSING; ORGANIZATION. 1. THE COUNCIL MAY
 ESTABLISH, AND FROM TIME TO TIME ALTER, SUCH PLAN OF ORGANIZATION AS  IT
 MAY  DEEM  EXPEDIENT,  AND MAY INCUR EXPENSES WITHIN THE LIMITS OF FUNDS
 AVAILABLE TO IT.
   2. THE COUNCIL SHALL ELECT ANNUALLY BY A MAJORITY OF ITS  MEMBERS  ONE
 OF ITS MEMBERS, OTHER THAN THE CHAIRPERSON, TO SERVE AS VICE-CHAIRPERSON
 FOR  A  TERM  OF ONE YEAR AND UNTIL HIS OR HER SUCCESSOR IS ELECTED. THE
 VICE-CHAIRPERSON SHALL CARRY OUT ALL  OF  THE  RESPONSIBILITIES  OF  THE
 CHAIRPERSON  AS  PRESCRIBED  IN  THIS  ARTICLE  DURING THE CHAIRPERSON'S
 ABSENCE, DISQUALIFICATION OR INABILITY TO SERVE.
   3. THE COUNCIL SHALL APPOINT AND FIX THE SALARY OF AN EXECUTIVE DIREC-
 TOR WHO SHALL SERVE AT ITS PLEASURE. THE COUNCIL MAY EMPLOY  SUCH  OTHER
 PERSONNEL  AS  IT  DEEMS NECESSARY. THE COUNCIL MAY EMPLOY LEGAL COUNSEL
 WHO SHALL REPRESENT IT IN ANY PROCEEDING TO WHICH IT IS A PARTY, AND WHO
 SHALL RENDER LEGAL ADVICE TO THE COUNCIL. THE COUNCIL MAY  CONTRACT  FOR

 A. 2558                             5
 
 THE  SERVICES OF OTHER PROFESSIONAL, TECHNICAL AND OPERATIONAL PERSONNEL
 AND CONSULTANTS AS MAY BE NECESSARY TO THE PERFORMANCE OF ITS DUTIES.
   §  326. COUNCIL ON AFFORDABLE HOUSING; DUTIES. IT SHALL BE THE DUTY OF
 THE COUNCIL, SIX MONTHS  AFTER  THE  CONFIRMATION  OF  THE  LAST  MEMBER
 INITIALLY APPOINTED TO THE COUNCIL AND FROM TIME TO TIME THEREAFTER, TO:
   1. DETERMINE HOUSING REGIONS OF THE STATE;
   2.  ESTIMATE  THE  PRESENT  AND  PROSPECTIVE NEED FOR LOW AND MODERATE
 INCOME HOUSING AT THE STATE AND REGIONAL LEVELS;
   3. ADOPT CRITERIA AND GUIDELINES FOR:
   A. DETERMINATION BY THE COUNCIL OF  EACH  MUNICIPALITY'S  PRESENT  AND
 PROSPECTIVE FAIR SHARE OF THE HOUSING NEED IN A GIVEN REGION; AND
   B.  PHASING OF PRESENT AND PROSPECTIVE FAIR SHARE HOUSING REQUIREMENTS
 PURSUANT TO SECTION THREE HUNDRED FORTY-ONE OF THIS ARTICLE;
   4. PROVIDE POPULATION AND HOUSEHOLD  PROJECTIONS  FOR  THE  STATE  AND
 HOUSING REGIONS; OR
   5.  MAY  IN  ITS  DISCRETION,  PLACE A LIMIT, BASED ON A PERCENTAGE OF
 EXISTING HOUSING STOCK IN A MUNICIPALITY AND ANY OTHER CRITERIA  INCLUD-
 ING  EMPLOYMENT  OPPORTUNITIES WHICH THE COUNCIL DEEMS APPROPRIATE, UPON
 THE AGGREGATE NUMBER OF UNITS WHICH MAY BE ALLOCATED TO  A  MUNICIPALITY
 AS  ITS  FAIR SHARE OF THE REGION'S PRESENT AND PROSPECTIVE NEED FOR LOW
 AND MODERATE INCOME HOUSING.
   IN CARRYING OUT THE ABOVE DUTIES, INCLUDING, BUT NOT LIMITED TO, PRES-
 ENT AND PROSPECTIVE NEED ESTIMATIONS, THE COUNCIL SHALL GIVE APPROPRIATE
 CONSIDERATION TO PERTINENT RESEARCH STUDIES, GOVERNMENT  REPORTS,  DECI-
 SIONS  OF  OTHER  BRANCHES OF GOVERNMENT AND PUBLIC COMMENT. THE COUNCIL
 SHALL DEVELOP PROCEDURES FOR PERIODICALLY ADJUSTING REGIONAL NEED  BASED
 UPON  THE LOW AND MODERATE INCOME HOUSING THAT IS PROVIDED IN THE REGION
 THROUGH ANY FEDERAL, STATE, MUNICIPAL OR PRIVATE HOUSING PROGRAM.
   § 327. PROCEDURAL RULES. WITHIN FOUR MONTHS AFTER THE CONFIRMATION  OF
 THE  LAST  MEMBER  OF THE INITIALLY APPOINTED COUNCIL, THE COUNCIL SHALL
 ADOPT ITS OWN PROCEDURAL RULES WITH THE CONSENT OF THE ATTORNEY GENERAL.
   § 328. NOTICE OF INTENT TO SUBMIT FAIR SHARE HOUSING PLAN. 1.   WITHIN
 FOUR  MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, EACH MUNICIPALITY
 SHALL, BY A DULY ADOPTED RESOLUTION OF PARTICIPATION, NOTIFY THE COUNCIL
 OF ITS INTENT TO SUBMIT TO THE COUNCIL  ITS  FAIR  SHARE  HOUSING  PLAN.
 WITHIN  FIVE  MONTHS  AFTER  THE  COUNCIL'S ADOPTION OF ITS CRITERIA AND
 GUIDELINES, THE MUNICIPALITY SHALL PREPARE AND FILE WITH THE  COUNCIL  A
 HOUSING  ELEMENT  AND  ANY  FAIR  SHARE HOUSING ORDINANCES ADOPTED WHICH
 IMPLEMENT THE HOUSING ELEMENT BASED ON THE COUNCIL'S CRITERIA AND GUIDE-
 LINES.
   2. THE COUNCIL SHALL AND ANY PERSON  AFFECTED  THEREBY  MAY  BRING  AN
 ACTION  IN  SUPREME  COURT  AGAINST ANY MUNICIPALITY FAILING TO SUBMIT A
 FAIR SHARE HOUSING PLAN TO THE COUNCIL PURSUANT TO  SUBDIVISION  ONE  OF
 THIS  SECTION.    SUCH CAUSE OF ACTION SHALL DEMAND A COURT ORDER TO THE
 MUNICIPALITY TO SUBMIT A FAIR SHARE HOUSING PLAN TO THE COUNCIL.
   § 329. HOUSING  ELEMENT  OF  MUNICIPALITY.  A  MUNICIPALITY'S  HOUSING
 ELEMENT  SHALL  BE  DESIGNED TO ACHIEVE THE GOAL OF ACCESS TO AFFORDABLE
 HOUSING TO MEET PRESENT AND PROSPECTIVE HOUSING NEEDS,  WITH  PARTICULAR
 ATTENTION TO LOW AND MODERATE INCOME HOUSING. SUCH HOUSING ELEMENT SHALL
 PROVIDE  SPECIFICALLY  FOR HOUSING UNITS AFFORDABLE TO THE INCOME LEVELS
 OF THE HOUSEHOLDS IN NEED, AND SHALL CONTAIN AT LEAST:
   1. AN INVENTORY OF THE MUNICIPALITY'S HOUSING STOCK BY AGE, CONDITION,
 PURCHASE OR RENTAL VALUE, OCCUPANCY CHARACTERISTICS, AND TYPE, INCLUDING
 THE NUMBER OF UNITS AFFORDABLE TO LOW AND MODERATE INCOME HOUSEHOLDS AND
 SUBSTANDARD HOUSING CAPABLE OF BEING REHABILITATED,  AND  IN  CONDUCTING
 THIS  INVENTORY  THE  MUNICIPALITY  SHALL HAVE ACCESS, ON A CONFIDENTIAL

 A. 2558                             6
 
 BASIS FOR THE SOLE PURPOSE OF CONDUCTING THE INVENTORY, TO ALL NECESSARY
 PROPERTY TAX  ASSESSMENT  RECORDS  AND  INFORMATION  IN  THE  ASSESSOR'S
 OFFICE, INCLUDING BUT NOT LIMITED TO THE PROPERTY RECORD CARDS;
   2.  A  PROJECTION  OF  THE MUNICIPALITY'S HOUSING STOCK, INCLUDING THE
 PROBABLE FUTURE CONSTRUCTION OF LOW AND MODERATE INCOME HOUSING, FOR THE
 NEXT SIX YEARS, TAKING INTO ACCOUNT, BUT  NOT  NECESSARILY  LIMITED  TO,
 CONSTRUCTION  PERMITS  ISSUED, APPROVALS OF APPLICATIONS FOR DEVELOPMENT
 AND PROBABLE RESIDENTIAL DEVELOPMENT OF LANDS;
   3. AN ANALYSIS  OF  THE  MUNICIPALITY'S  DEMOGRAPHIC  CHARACTERISTICS,
 INCLUDING  BUT  NOT NECESSARILY LIMITED TO, HOUSEHOLD SIZE, INCOME LEVEL
 AND AGE;
   4. AN ANALYSIS OF THE EXISTING AND PROBABLE FUTURE EMPLOYMENT  CHARAC-
 TERISTICS OF THE MUNICIPALITY;
   5.  A DETERMINATION OF THE MUNICIPALITY'S PRESENT AND PROSPECTIVE FAIR
 SHARE FOR LOW AND MODERATE INCOME HOUSING AND ITS CAPACITY  TO  ACCOMMO-
 DATE ITS PRESENT AND PROSPECTIVE HOUSING NEEDS, INCLUDING ITS FAIR SHARE
 FOR LOW AND MODERATE INCOME HOUSING; AND
   6.  A  CONSIDERATION  OF  THE  LANDS  THAT  ARE  MOST  APPROPRIATE FOR
 CONSTRUCTION OF LOW AND MODERATE INCOME  HOUSING  AND  OF  THE  EXISTING
 STRUCTURES  MOST  APPROPRIATE  FOR CONVERSION TO, OR REHABILITATION FOR,
 LOW AND MODERATE INCOME HOUSING, INCLUDING A CONSIDERATION OF  LANDS  OF
 DEVELOPERS  WHO  HAVE EXPRESSED A COMMITMENT TO PROVIDE LOW AND MODERATE
 INCOME HOUSING.
   § 330. HOUSING ELEMENT; PROVISION OF LOW AND MODERATE INCOME  HOUSING.
 1. IN ADOPTING ITS HOUSING ELEMENT, THE MUNICIPALITY MAY PROVIDE FOR ITS
 FAIR  SHARE OF LOW AND MODERATE INCOME HOUSING BY MEANS OF ANY TECHNIQUE
 OR COMBINATION OF TECHNIQUES WHICH PROVIDE A REALISTIC  OPPORTUNITY  FOR
 THE  PROVISION  OF  THE FAIR SHARE. THE HOUSING ELEMENT SHALL CONTAIN AN
 ANALYSIS DEMONSTRATING THAT IT WILL PROVIDE SUCH  A  REALISTIC  OPPORTU-
 NITY,  AND  THE MUNICIPALITY SHALL ESTABLISH THAT ITS LAND USE AND OTHER
 RELEVANT ORDINANCES HAVE BEEN REVISED TO INCORPORATE THE PROVISIONS  FOR
 LOW  AND  MODERATE INCOME HOUSING. IN PREPARING THE HOUSING ELEMENT, THE
 MUNICIPALITY SHALL CONSIDER THE FOLLOWING TECHNIQUES FOR  PROVIDING  LOW
 AND  MODERATE  INCOME  HOUSING  WITHIN THE MUNICIPALITY, AS WELL AS SUCH
 OTHER TECHNIQUES AS MAY BE PUBLISHED BY THE COUNCIL OR PROPOSED  BY  THE
 MUNICIPALITY:
   A.  REZONING  FOR DENSITIES NECESSARY TO ASSURE THE ECONOMIC VIABILITY
 OF ANY INCLUSIONARY DEVELOPMENTS, EITHER THROUGH MANDATORY SET-ASIDES OR
 DENSITY BONUSES, AS MAY BE NECESSARY TO MEET ALL OR PART OF THE  MUNICI-
 PALITY'S FAIR SHARE;
   B.  DETERMINATION  OF THE TOTAL RESIDENTIAL ZONING NECESSARY TO ASSURE
 THAT THE MUNICIPALITY'S FAIR SHARE IS ACHIEVED;
   C. DETERMINATION OF MEASURES THAT THE MUNICIPALITY WILL TAKE TO ASSURE
 THAT THE LOW AND MODERATE INCOME UNITS  REMAIN  AFFORDABLE  TO  LOW  AND
 MODERATE INCOME HOUSEHOLDS FOR A PERIOD OF AT LEAST THIRTY YEARS;
   D. A PLAN FOR INFRASTRUCTURE EXPANSION AND REHABILITATION IF NECESSARY
 TO  ASSURE  THE  ACHIEVEMENT OF THE MUNICIPALITY'S FAIR SHARE OF LOW AND
 MODERATE INCOME HOUSING;
   E. DONATION OR USE OF MUNICIPALLY OWNED LAND OR LAND CONDEMNED BY  THE
 MUNICIPALITY FOR PURPOSES OF PROVIDING LOW AND MODERATE INCOME HOUSING;
   F.  TAX  ABATEMENTS  FOR PURPOSES OF PROVIDING LOW AND MODERATE INCOME
 HOUSING;
   G. UTILIZATION OF FUNDS OBTAINED FROM ANY  STATE  OR  FEDERAL  SUBSIDY
 TOWARD THE CONSTRUCTION OF LOW AND MODERATE INCOME HOUSING; AND
   H.  UTILIZATION OF MUNICIPALLY GENERATED FUNDS TOWARD THE CONSTRUCTION
 OF LOW AND MODERATE INCOME HOUSING.

 A. 2558                             7
 
   2. THE MUNICIPALITY  MAY  PROVIDE  FOR  A  PHASING  SCHEDULE  FOR  THE
 ACHIEVEMENT  OF  ITS FAIR SHARE OF LOW AND MODERATE INCOME HOUSING WHICH
 IS NOT INCONSISTENT WITH SECTION THREE HUNDRED FORTY-ONE OF  THIS  ARTI-
 CLE.
   3.  THE  MUNICIPALITY  MAY PROPOSE THAT A PORTION OF ITS FAIR SHARE BE
 MET THROUGH A REGIONAL CONTRIBUTION AGREEMENT. THE HOUSING ELEMENT SHALL
 DEMONSTRATE, HOWEVER, THE MANNER IN WHICH THAT PORTION WILL BE  PROVIDED
 WITHIN  THE  MUNICIPALITY  IF THE REGIONAL CONTRIBUTION AGREEMENT IS NOT
 ENTERED INTO. THE MUNICIPALITY SHALL PROVIDE A STATEMENT OF ITS  REASONS
 FOR THE PROPOSAL.
   4.  NOTHING  IN  THIS ARTICLE SHALL REQUIRE A MUNICIPALITY TO RAISE OR
 EXPEND MUNICIPAL REVENUES IN ORDER TO PROVIDE LOW  AND  MODERATE  INCOME
 HOUSING.
   §  331. REGIONAL CONTRIBUTION AGREEMENT. 1. A MUNICIPALITY MAY PROPOSE
 THE TRANSFER OF UP TO TWENTY-FIVE PERCENT OF ITS FAIR SHARE  TO  ANOTHER
 MUNICIPALITY  WITHIN ITS HOUSING REGION BY MEANS OF A CONTRACTUAL AGREE-
 MENT INTO WHICH TWO MUNICIPALITIES  VOLUNTARILY  ENTER.  A  MUNICIPALITY
 PROPOSING  TO TRANSFER TO ANOTHER MUNICIPALITY SHALL PROVIDE THE COUNCIL
 WITH THE HOUSING ELEMENT AND STATEMENT REQUIRED UNDER SUBDIVISION  THREE
 OF  SECTION  THREE HUNDRED THIRTY OF THIS ARTICLE, AND SHALL REQUEST THE
 COUNCIL TO DETERMINE A MATCH WITH A MUNICIPALITY FILING A  STATEMENT  OF
 INTENT  PURSUANT TO SUBDIVISION FIVE OF THIS SECTION. EXCEPT AS PROVIDED
 IN SUBDIVISION TWO OF THIS SECTION, THE AGREEMENT MAY  BE  ENTERED  INTO
 UPON  OBTAINING  SUBSTANTIVE  CERTIFICATION  UNDER SECTION THREE HUNDRED
 THIRTY-THREE OF  THIS  ARTICLE,  OR  ANYTIME  THEREAFTER.  THE  REGIONAL
 CONTRIBUTION  AGREEMENT ENTERED INTO SHALL SPECIFY HOW THE HOUSING SHALL
 BE PROVIDED BY THE SECOND MUNICIPALITY, HEREINAFTER THE RECEIVING  MUNI-
 CIPALITY,  AND THE AMOUNT OF CONTRIBUTIONS TO BE MADE BY THE FIRST MUNI-
 CIPALITY, HEREINAFTER THE SENDING MUNICIPALITY.
   2. A MUNICIPALITY WHICH IS A DEFENDANT IN AN EXCLUSIONARY ZONING  SUIT
 AND  WHICH  HAS  NOT OBTAINED SUBSTANTIVE CERTIFICATION PURSUANT TO THIS
 ARTICLE MAY REQUEST THE COURT TO BE PERMITTED TO FULFILL  A  PORTION  OF
 ITS  FAIR  SHARE  BY ENTERING INTO A REGIONAL CONTRIBUTION AGREEMENT. IF
 THE COURT BELIEVES THE REQUEST TO BE REASONABLE, THE COURT SHALL REQUEST
 THE COUNCIL TO REVIEW THE PROPOSED AGREEMENT AND TO  DETERMINE  A  MATCH
 WITH  A  RECEIVING  MUNICIPALITY  OR  MUNICIPALITIES  PURSUANT  TO  THIS
 SECTION. THE COURT MAY ESTABLISH  TIME  LIMITATIONS  FOR  THE  COUNCIL'S
 REVIEW,  AND SHALL RETAIN JURISDICTION OVER THE MATTER DURING THE PERIOD
 OF COUNCIL REVIEW.  IF THE COURT DETERMINES THAT THE AGREEMENT  PROVIDES
 A  REALISTIC  OPPORTUNITY  FOR  THE PROVISION OF LOW AND MODERATE INCOME
 HOUSING WITHIN THE HOUSING REGION, IT SHALL PROVIDE THE SENDING  MUNICI-
 PALITY  A  CREDIT  AGAINST  ITS  FAIR  SHARE  FOR HOUSING TO BE PROVIDED
 THROUGH THE AGREEMENT IN THE MANNER PROVIDED IN THIS SECTION.
   THE AGREEMENT SHALL BE ENTERED INTO PRIOR TO  THE  ENTRY  OF  A  FINAL
 JUDGMENT  IN  THE  LITIGATION.  IN  CASES  IN WHICH A FINAL JUDGMENT WAS
 ENTERED PRIOR TO THE DATE THIS ARTICLE TAKES  EFFECT  AND  IN  WHICH  AN
 APPEAL  IS  PENDING,  A  MUNICIPALITY  MAY  REQUEST  CONSIDERATION  OF A
 REGIONAL CONTRIBUTION AGREEMENT; PROVIDED THAT IT IS ENTERED INTO WITHIN
 ONE HUNDRED TWENTY DAYS AFTER THIS ARTICLE TAKES EFFECT. IN  A  CASE  IN
 WHICH A FINAL JUDGMENT HAS BEEN ENTERED, THE COURT SHALL CONSIDER WHETH-
 ER  OR  NOT  THE AGREEMENT CONSTITUTES AN EXPEDITIOUS MEANS OF PROVIDING
 PART OF THE FAIR SHARE.
   3. REGIONAL CONTRIBUTION AGREEMENTS SHALL BE APPROVED BY THE  COUNCIL,
 AFTER  REVIEW  BY  THE  COUNTY PLANNING BOARD OR AGENCY OF THE COUNTY IN
 WHICH THE RECEIVING MUNICIPALITY IS LOCATED. THE COUNCIL SHALL DETERMINE
 WHETHER OR NOT THE AGREEMENT PROVIDES A REALISTIC  OPPORTUNITY  FOR  THE

 A. 2558                             8
 
 PROVISION OF LOW AND MODERATE INCOME HOUSING WITHIN CONVENIENT ACCESS TO
 EMPLOYMENT  OPPORTUNITIES.  THE COUNCIL SHALL REFER THE AGREEMENT TO THE
 COUNTY PLANNING BOARD OR AGENCY WHICH SHALL REVIEW WHETHER  OR  NOT  THE
 TRANSFER  AGREEMENT  IS IN ACCORDANCE WITH SOUND, COMPREHENSIVE REGIONAL
 PLANNING. IN ITS REVIEW, THE  COUNTY  PLANNING  BOARD  OR  AGENCY  SHALL
 CONSIDER THE MASTER PLAN AND ZONING ORDINANCE OF THE SENDING AND RECEIV-
 ING  MUNICIPALITIES  AND  ITS  OWN COUNTY MASTER PLAN. IN THE EVENT THAT
 THERE IS NO COUNTY PLANNING BOARD OR AGENCY IN THE COUNTY IN  WHICH  THE
 RECEIVING  MUNICIPALITY  IS LOCATED, THE COUNCIL SHALL DETERMINE WHETHER
 OR NOT THE AGREEMENT IS IN ACCORDANCE WITH SOUND, COMPREHENSIVE REGIONAL
 PLANNING. AFTER IT HAS BEEN DETERMINED THAT THE AGREEMENT    PROVIDES  A
 REALISTIC OPPORTUNITY FOR LOW AND MODERATE INCOME HOUSING WITHIN CONVEN-
 IENT  ACCESS  TO  EMPLOYMENT  OPPORTUNITIES,  AND  THAT THE AGREEMENT IS
 CONSISTENT WITH SOUND,  COMPREHENSIVE  REGIONAL  PLANNING,  THE  COUNCIL
 SHALL  APPROVE  THE  REGIONAL  CONTRIBUTION AGREEMENT BY RESOLUTION. ALL
 DETERMINATIONS OF A COUNTY PLANNING BOARD OR AGENCY SHALL BE IN  WRITING
 AND  SHALL BE MADE WITHIN SUCH TIME LIMITS AS THE COUNCIL MAY PRESCRIBE,
 BEYOND WHICH THE COUNCIL SHALL MAKE  THOSE  DETERMINATIONS  AND  NO  FEE
 SHALL  BE  PAID  TO THE COUNTY PLANNING BOARD OR AGENCY PURSUANT TO THIS
 SUBDIVISION.
   4. IN APPROVING A REGIONAL CONTRIBUTION AGREEMENT, THE  COUNCIL  SHALL
 SET FORTH IN ITS RESOLUTION A SCHEDULE OF THE CONTRIBUTIONS TO BE APPRO-
 PRIATED ANNUALLY BY THE SENDING MUNICIPALITY.
   5.  THE  COUNCIL  SHALL MAINTAIN CURRENT LISTS OF MUNICIPALITIES WHICH
 HAVE STATED AN INTENT TO ENTER INTO REGIONAL CONTRIBUTION AGREEMENTS  AS
 RECEIVING  MUNICIPALITIES,  AND  SHALL  ESTABLISH  PROCEDURES FOR FILING
 STATEMENTS OF INTENT WITH THE COUNCIL. NO RECEIVING  MUNICIPALITY  SHALL
 BE  REQUIRED TO ACCEPT A GREATER NUMBER OF LOW AND MODERATE INCOME UNITS
 THROUGH AN AGREEMENT THAN IT HAS EXPRESSED A WILLINGNESS  TO  ACCEPT  IN
 ITS STATEMENT, BUT THE NUMBER STATED SHALL NOT BE LESS THAN A REASONABLE
 MINIMUM  NUMBER  OF  UNITS, NOT TO EXCEED ONE HUNDRED, AS ESTABLISHED BY
 THE COUNCIL. THE COUNCIL SHALL REQUIRE A PROJECT PLAN FROM  A  RECEIVING
 MUNICIPALITY  PRIOR  TO  THE  ENTERING  INTO OF THE AGREEMENT, AND SHALL
 SUBMIT THE PROJECT PLAN TO THE DIVISION FOR ITS REVIEW AS TO THE  FEASI-
 BILITY OF THE PLAN PRIOR TO THE COUNCIL'S APPROVAL OF THE AGREEMENT. THE
 DIVISION  MAY  RECOMMEND  AND  THE  COUNCIL  MAY  APPROVE AS PART OF THE
 PROJECT PLAN A PROVISION THAT THE TIME LIMITATIONS FOR CONTRACTUAL GUAR-
 ANTEES OR RESALE CONTROLS FOR LOW AND MODERATE INCOME UNITS INCLUDED  IN
 THE  PROJECT  SHALL  BE LESS THAN THIRTY YEARS, IF IT IS DETERMINED THAT
 MODIFICATION IS NECESSARY  TO  ASSURE  THE  ECONOMIC  VIABILITY  OF  THE
 PROJECT.
   6.  THE COUNCIL SHALL ESTABLISH GUIDELINES FOR THE DURATION AND AMOUNT
 OF CONTRIBUTIONS IN REGIONAL CONTRIBUTION AGREEMENTS. IN DOING  SO,  THE
 COUNCIL SHALL GIVE SUBSTANTIAL CONSIDERATION TO THE AVERAGE OF:
   A.  THE  MEDIAN  AMOUNT  REQUIRED  TO  REHABILITATE A LOW AND MODERATE
 INCOME UNIT UP TO CODE ENFORCEMENT STANDARDS;
   B. THE AVERAGE INTERNAL SUBSIDIZATION  REQUIRED  FOR  A  DEVELOPER  TO
 PROVIDE A LOW INCOME HOUSING UNIT IN AN INCLUSIONARY DEVELOPMENT; AND
   C.  THE  AVERAGE  INTERNAL  SUBSIDIZATION  REQUIRED FOR A DEVELOPER TO
 PROVIDE A MODERATE INCOME HOUSING UNIT IN AN INCLUSIONARY DEVELOPMENT.
   CONTRIBUTIONS MAY BE PRORATED IN  MUNICIPAL  APPROPRIATIONS  OCCURRING
 OVER A PERIOD NOT TO EXCEED THREE YEARS AND MAY INCLUDE AN AMOUNT AGREED
 UPON  TO  COMPENSATE  OR PARTIALLY COMPENSATE THE RECEIVING MUNICIPALITY
 FOR INFRASTRUCTURE OR OTHER COSTS GENERATED  TO  THE  RECEIVING  MUNICI-
 PALITY BY THE DEVELOPMENT. APPROPRIATIONS SHALL BE MADE AND PAID DIRECT-
 LY TO THE RECEIVING MUNICIPALITY OR MUNICIPALITIES.

 A. 2558                             9
 
   7.  THE  COUNCIL SHALL REQUIRE RECEIVING MUNICIPALITIES TO FILE ANNUAL
 REPORTS WITH THE DIVISION SETTING FORTH THE PROGRESS IN  IMPLEMENTING  A
 PROJECT FUNDED UNDER A REGIONAL CONTRIBUTION AGREEMENT, AND THE DIVISION
 SHALL  PROVIDE THE COUNCIL WITH ITS EVALUATION OF EACH REPORT. THE COUN-
 CIL  SHALL  TAKE  SUCH ACTIONS AS MAY BE NECESSARY TO ENFORCE A REGIONAL
 CONTRIBUTION AGREEMENT WITH RESPECT TO THE TIMELY IMPLEMENTATION OF  THE
 PROJECT BY THE RECEIVING MUNICIPALITY.
   §  332.  CERTIFICATION  OF  HOUSING  ELEMENT. A MUNICIPALITY WHICH HAS
 FILED A HOUSING ELEMENT SHALL, AT ANY TIME DURING A  THREE  YEAR  PERIOD
 FOLLOWING  THE FILING OF THE HOUSING ELEMENT, PETITION THE COUNCIL FOR A
 SUBSTANTIVE CERTIFICATION OF ITS ELEMENT AND ORDINANCES OR INSTITUTE  AN
 ACTION FOR DECLARATORY JUDGMENT GRANTING IT A ONE YEAR REPOSE IN SUPREME
 COURT.  THE MUNICIPALITY SHALL PUBLISH NOTICE OF ITS PETITION IN A NEWS-
 PAPER OF GENERAL CIRCULATION WITHIN  THE  MUNICIPALITY  AND  COUNTY  AND
 SHALL  MAKE AVAILABLE TO THE PUBLIC INFORMATION ON THE ELEMENT AND ORDI-
 NANCES IN ACCORDANCE WITH SUCH PROCEDURES AS THE  COUNCIL  SHALL  ESTAB-
 LISH.  THE COUNCIL SHALL ALSO ESTABLISH A PROCEDURE FOR PROVIDING PUBLIC
 NOTICE OF EACH PETITION WHICH IT RECEIVES.
   §  333.  REVIEW  OF  PETITION.  UNLESS AN OBJECTION TO THE SUBSTANTIVE
 CERTIFICATION IS FILED WITH THE COUNCIL BY ANY PERSON WITHIN  FORTY-FIVE
 DAYS  OF  THE  PUBLICATION OF THE NOTICE OF THE MUNICIPALITY'S PETITION,
 THE COUNCIL SHALL REVIEW THE PETITION  AND  SHALL  ISSUE  A  SUBSTANTIVE
 CERTIFICATION IF IT SHALL FIND THAT:
   1. THE MUNICIPALITY'S FAIR SHARE PLAN IS CONSISTENT WITH THE RULES AND
 CRITERIA ADOPTED BY THE COUNCIL AND NOT INCONSISTENT WITH ACHIEVEMENT OF
 THE  LOW  AND  MODERATE  INCOME  HOUSING NEEDS OF THE REGION AS ADJUSTED
 PURSUANT TO THE COUNCIL'S CRITERIA AND GUIDELINES  ADOPTED  PURSUANT  TO
 SUBDIVISION  THREE  OF SECTION THREE HUNDRED TWENTY-SIX OF THIS ARTICLE;
 AND
   2. THE COMBINATION OF THE ELIMINATION OF UNNECESSARY HOUSING COST-GEN-
 ERATING FEATURES FROM THE MUNICIPAL LAND USE ORDINANCES AND REGULATIONS,
 AND THE AFFIRMATIVE MEASURES IN THE HOUSING ELEMENT  AND  IMPLEMENTATION
 PLAN  MAKE  THE  ACHIEVEMENT OF THE MUNICIPALITY'S FAIR SHARE OF LOW AND
 MODERATE INCOME HOUSING REALISTICALLY POSSIBLE AFTER  ALLOWING  FOR  THE
 IMPLEMENTATION  OF  ANY  REGIONAL CONTRIBUTION AGREEMENT APPROVED BY THE
 COUNCIL.
   IN CONDUCTING ITS REVIEW, THE COUNCIL MAY MEET WITH  THE  MUNICIPALITY
 AND MAY DENY THE PETITION OR CONDITION ITS CERTIFICATION UPON CHANGES IN
 THE  ELEMENT  OR ORDINANCES. ANY DENIAL OR CONDITIONS FOR APPROVAL SHALL
 BE IN WRITING AND SHALL SET FORTH THE REASONS FOR THE DENIAL  OR  CONDI-
 TIONS.  IF,  WITHIN  SIXTY  DAYS  OF THE COUNCIL'S DENIAL OR CONDITIONAL
 APPROVAL, THE MUNICIPALITY REFILES ITS PETITION WITH  CHANGES  SATISFAC-
 TORY  TO  THE  COUNCIL,  THE  COUNCIL  SHALL ISSUE A SUBSTANTIVE CERTIF-
 ICATION.
   ONCE SUBSTANTIVE CERTIFICATION IS GRANTED, THE MUNICIPALITY SHALL HAVE
 FORTY-FIVE DAYS IN WHICH TO  ADOPT  ITS  FAIR  SHARE  HOUSING  ORDINANCE
 APPROVED BY THE COUNCIL.
   §  334.  MEDIATION AND REVIEW PROCESS BY COUNCIL. 1. THE COUNCIL SHALL
 ENGAGE IN A MEDIATION AND REVIEW PROCESS IN THE FOLLOWING SITUATIONS:
   A. IF AN OBJECTION TO  THE  MUNICIPALITY'S  PETITION  FOR  SUBSTANTIVE
 CERTIFICATION  IS  FILED  WITH  THE COUNCIL WITHIN THE TIME SPECIFIED IN
 SECTION THREE HUNDRED THIRTY-THREE OF THIS ARTICLE; OR
   B. IF A REQUEST FOR MEDIATION AND REVIEW IS MADE PURSUANT  TO  SECTION
 THREE HUNDRED THIRTY-FIVE OF THIS ARTICLE.
   2.  IN  CASES  IN  WHICH  AN OBJECTION IS FILED TO SUBSTANTIVE CERTIF-
 ICATION THE COUNCIL SHALL MEET WITH THE MUNICIPALITY AND  THE  OBJECTORS

 A. 2558                            10
 
 AND  ATTEMPT TO MEDIATE A RESOLUTION OF THE DISPUTE. IF THE MEDIATION IS
 SUCCESSFUL, THE COUNCIL SHALL ISSUE A SUBSTANTIVE  CERTIFICATION  IF  IT
 FINDS  THAT  THE  CRITERIA OF SECTION THREE HUNDRED THIRTY-THREE OF THIS
 ARTICLE HAVE BEEN MET.
   3.  IF  THE  MEDIATION  EFFORTS  ARE UNSUCCESSFUL, THE MATTER SHALL BE
 APPEALED TO SUPREME COURT PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL
 PRACTICE LAW AND RULES.
   § 335. JURISDICTION OF LITIGATION. 1. FOR  THOSE  EXCLUSIONARY  ZONING
 CASES  INSTITUTED MORE THAN SIXTY DAYS BEFORE THE EFFECTIVE DATE OF THIS
 ARTICLE, ANY PARTY TO THE LITIGATION MAY FILE A MOTION WITH THE COURT TO
 SEEK A TRANSFER OF THE CASE TO THE COUNCIL. IN  DETERMINING  WHETHER  OR
 NOT  TO  TRANSFER,  THE COURT SHALL CONSIDER WHETHER OR NOT THE TRANSFER
 WOULD RESULT IN A MANIFEST INJUSTICE TO ANY PARTY TO THE LITIGATION.  IF
 THE  MUNICIPALITY  FAILS  TO  FILE A HOUSING ELEMENT AND FAIR SHARE PLAN
 WITH THE COUNCIL WITHIN FIVE  MONTHS  FROM  THE  DATE  OF  TRANSFER,  OR
 PROMULGATION  OF  CRITERIA  AND  GUIDELINES  BY  THE COUNCIL PURSUANT TO
 SECTION THREE HUNDRED  TWENTY-SIX  OF  THIS  ARTICLE,  WHICHEVER  OCCURS
 LATER, JURISDICTION SHALL REVERT TO THE COURT.
   2.  ANY  PERSON  WHO INSTITUTES LITIGATION LESS THAN SIXTY DAYS BEFORE
 THE EFFECTIVE DATE OF THIS ARTICLE OR AFTER THE EFFECTIVE DATE  OF  THIS
 ARTICLE  CHALLENGING  A  MUNICIPALITY'S ZONING ORDINANCE WITH RESPECT TO
 THE OPPORTUNITY TO PROVIDE FOR LOW OR  MODERATE  INCOME  HOUSING,  SHALL
 FILE  A NOTICE TO REQUEST REVIEW AND MEDIATION WITH THE COUNCIL PURSUANT
 TO SECTIONS THREE HUNDRED THIRTY-THREE AND THREE HUNDRED THIRTY-FOUR  OF
 THIS  ARTICLE. IN THE EVENT THAT THE MUNICIPALITY ADOPTS A RESOLUTION OF
 PARTICIPATION WITHIN  THE  PERIOD  ESTABLISHED  IN  SUBDIVISION  ONE  OF
 SECTION  THREE  HUNDRED  TWENTY-EIGHT  OF THIS ARTICLE, THE PERSON SHALL
 EXHAUST THE REVIEW AND MEDIATION PROCESS OF  THE  COUNCIL  BEFORE  BEING
 ENTITLED TO A TRIAL ON HIS COMPLAINT.
   § 336. PRESUMPTION OF VALIDITY OF APPROVED HOUSING ELEMENT. 1.  IN ANY
 EXCLUSIONARY  ZONING  CASE  FILED  AGAINST  A  MUNICIPALITY  WHICH HAS A
 SUBSTANTIVE CERTIFICATION AND IN WHICH THERE IS A REQUIREMENT TO EXHAUST
 THE REVIEW AND MEDIATION PROCESS PURSUANT TO SECTION THREE HUNDRED THIR-
 TY-FIVE OF THIS ARTICLE,  THERE  SHALL  BE  A  PRESUMPTION  OF  VALIDITY
 ATTACHING  TO  THE  APPROVED HOUSING ELEMENT AND ORDINANCES IMPLEMENTING
 THE HOUSING ELEMENT. TO REBUT THE PRESUMPTION OF VALIDITY, THE COMPLAIN-
 ANT SHALL HAVE THE BURDEN OF PROOF TO DEMONSTRATE BY CLEAR AND  CONVINC-
 ING EVIDENCE THAT THE APPROVED HOUSING ELEMENT AND ORDINANCES IMPLEMENT-
 ING  THE  HOUSING ELEMENT DO NOT PROVIDE A REALISTIC OPPORTUNITY FOR THE
 PROVISION OF THE MUNICIPALITY'S FAIR SHARE OF LOW  AND  MODERATE  INCOME
 HOUSING  AFTER  ALLOWING FOR THE IMPLEMENTATION OF ANY REGIONAL CONTRIB-
 UTION AGREEMENT APPROVED BY THE COUNCIL.
   2. THERE SHALL BE A PRESUMPTION OF VALIDITY ATTACHING TO ANY  REGIONAL
 CONTRIBUTION AGREEMENT APPROVED BY THE COUNCIL. TO REBUT THE PRESUMPTION
 OF  VALIDITY,  THE  COMPLAINANT SHALL HAVE THE BURDEN OF PROOF TO DEMON-
 STRATE BY CLEAR AND CONVINCING EVIDENCE  THAT  THE  AGREEMENT  DOES  NOT
 PROVIDE  FOR A REALISTIC OPPORTUNITY FOR THE PROVISION OF LOW AND MODER-
 ATE INCOME HOUSING WITHIN THE HOUSING REGION.
   3. THE COUNCIL SHALL BE MADE A PARTY TO ANY EXCLUSIONARY  ZONING  SUIT
 AGAINST  A  MUNICIPALITY  WHICH  RECEIVES SUBSTANTIVE CERTIFICATION, AND
 SHALL BE EMPOWERED TO PRESENT TO THE  COURT  ITS  REASONS  FOR  GRANTING
 SUBSTANTIVE CERTIFICATION.
   §  337.  OBLIGATION  TO  EXHAUST REMEDIES. IF A MUNICIPALITY WHICH HAS
 ADOPTED A RESOLUTION OF PARTICIPATION PURSUANT TO SECTION THREE  HUNDRED
 TWENTY-EIGHT  OF  THIS ARTICLE FAILS TO MEET THE DEADLINE FOR SUBMITTING
 ITS HOUSING ELEMENT TO THE COUNCIL PRIOR TO THE  INSTITUTION  OF  EXCLU-

 A. 2558                            11
 
 SIONARY  ZONING  LITIGATION,  THE  OBLIGATION  TO EXHAUST ADMINISTRATIVE
 REMEDIES CONTAINED IN SUBDIVISION TWO OF SECTION THREE  HUNDRED  THIRTY-
 FIVE  OF THIS ARTICLE AUTOMATICALLY EXPIRES. THE OBLIGATION ALSO EXPIRES
 IF  THE  COUNCIL  REJECTS  THE  MUNICIPALITY'S  REQUEST  FOR SUBSTANTIVE
 CERTIFICATION OR CONDITIONS ITS CERTIFICATION UPON CHANGES WHICH ARE NOT
 MADE WITHIN THE PERIOD ESTABLISHED IN THIS ARTICLE OR WITHIN  AN  EXTEN-
 SION OF THAT PERIOD AGREED TO BY THE COUNCIL AND ALL LITIGANTS.
   § 338. FAILURE OF COUNCIL TO COMPLETE REVIEW PROCESS IN TIMELY MANNER.
 IF  THE COUNCIL HAS NOT COMPLETED ITS REVIEW AND MEDIATION PROCESS FOR A
 MUNICIPALITY WITHIN SIX MONTHS OF RECEIPT OF A REQUEST BY  A  PARTY  WHO
 HAS  INSTITUTED  LITIGATION, THE PARTY MAY FILE A MOTION WITH A COURT OF
 COMPETENT JURISDICTION TO BE RELIEVED OF THE DUTY TO EXHAUST ADMINISTRA-
 TIVE REMEDIES. IN THE CASE OF REVIEW AND MEDIATION REQUESTS FILED WITHIN
 NINE MONTHS AFTER THE EFFECTIVE DATE  OF  THIS  ARTICLE,  THE  SIX-MONTH
 COMPLETION  DATE  SHALL  NOT  BEGIN  TO  RUN UNTIL NINE MONTHS AFTER THE
 EFFECTIVE DATE OF THIS ARTICLE.
   §  339.  STATE  AFFORDABLE  HOUSING  PROGRAMS.   NOTWITHSTANDING   ANY
 PROVISIONS OF LAW TO THE CONTRARY, THE DIVISION, THE OFFICE OF TEMPORARY
 AND  DISABILITY  ASSISTANCE,  THE NEW YORK STATE HOUSING FINANCE AGENCY,
 THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION AND THE  STATE  OF  NEW
 YORK  MORTGAGE  AGENCY  SHALL,  TO THE EXTENT PRACTICABLE AND CONSISTENT
 WITH EXISTING STATUTES AND REGULATIONS GOVERNING PROGRAMS WHICH SEEK  TO
 DIRECTLY  OR  INDIRECTLY INCREASE THE SUPPLY OF AFFORDABLE HOUSING, SEEK
 TO AWARD GRANTS, LOANS, PAYMENTS OR SUBSIDIES PURSUANT TO SUCH  PROGRAMS
 WITHIN  MUNICIPALITIES  WHOSE HOUSING ELEMENTS HAVE RECEIVED SUBSTANTIVE
 CERTIFICATION FROM THE COUNCIL, WITHIN RECEIVING MUNICIPALITIES IN CASES
 WHERE THE COUNCIL HAS APPROVED A REGIONAL CONTRIBUTION AGREEMENT  AND  A
 PROJECT PLAN DEVELOPED BY THE RECEIVING MUNICIPALITY.
   § 340. MUNICIPALITY WITH SETTLEMENT IN EXCLUSIONARY ZONING LITIGATION.
 ANY  MUNICIPALITY  WHICH  HAS  REACHED  A SETTLEMENT OF ANY EXCLUSIONARY
 ZONING LITIGATION PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE SHALL  NOT
 BE SUBJECT TO ANY EXCLUSIONARY ZONING SUIT FOR A SIX YEAR PERIOD FOLLOW-
 ING  THE  EFFECTIVE DATE OF THIS ARTICLE. ANY SUCH MUNICIPALITY SHALL BE
 DEEMED TO HAVE A SUBSTANTIVELY CERTIFIED HOUSING ELEMENT AND ORDINANCES,
 AND SHALL NOT BE REQUIRED DURING THAT PERIOD TO TAKE ANY FURTHER ACTIONS
 WITH RESPECT TO PROVISIONS FOR LOW AND MODERATE INCOME  HOUSING  IN  ITS
 LAND USE ORDINANCES OR REGULATIONS.
   §  341.  PHASE-IN  OF  OBLIGATION  FOR  FAIR SHARE OF LOW AND MODERATE
 INCOME HOUSING; ORDER OF COURT. 1. A MUNICIPALITY WHICH  HAS  AN  ACTION
 PENDING  OR  A  JUDGMENT  ENTERED AGAINST IT AFTER THE EFFECTIVE DATE OF
 THIS ARTICLE, OR WHICH HAD A JUDGMENT ENTERED AGAINST IT PRIOR  TO  THAT
 DATE  AND FROM WHICH AN APPEAL IS PENDING, OR WHICH BRINGS AN ACTION FOR
 DECLARATORY JUDGMENT PURSUANT TO SECTION  THREE  HUNDRED  THIRTY-TWO  OF
 THIS  ARTICLE,  SHALL  UPON MUNICIPAL REQUEST BE ALLOWED TO PHASE-IN ITS
 OBLIGATION FOR A FAIR SHARE OF LOW AND MODERATE INCOME HOUSING. IF  SUCH
 A PHASE-IN IS REQUESTED BY THE MUNICIPALITY, THE COURT SHALL IMPLEMENT A
 PHASE-IN FOR THE ISSUANCE OF FINAL APPROVALS FOR LOW AND MODERATE INCOME
 HOUSING, WHICH SHALL BE BASED ON AN ANALYSIS OF THE FOLLOWING FACTORS:
   A. THE SIZE OF THE MUNICIPAL FAIR SHARE;
   B.  THE  PRESENT AND PROJECTED CAPACITY OF THE COMMUNITY'S INFRASTRUC-
 TURE, TAKING INTO  ACCOUNT  EXPANSION  AND  REHABILITATION  OF  EXISTING
 FACILITIES;
   C. VACANT DEVELOPABLE LAND;
   D. LIKELY ABSORPTION RATE FOR HOUSING IN LIGHT OF MARKET FORCES;
   E. REASONABLE DEVELOPMENT PRIORITIES AMONG AREAS OF THE COMMUNITY; AND

 A. 2558                            12
 
   F.  PAST  PERFORMANCE  IN  PROVIDING  LOW AND MODERATE INCOME HOUSING,
 INCLUDING CREDIT FOR LOW AND MODERATE INCOME SENIOR OR DISABLED  CITIZEN
 HOUSING.
   2. THE COURT SHALL, WHERE APPROPRIATE, ALSO IMPLEMENT A PHASE-IN SCHE-
 DULE  FOR THE MARKET UNITS IN THE INCLUSIONARY DEVELOPMENT WHICH ARE NOT
 LOW AND MODERATE INCOME, GIVING DUE CONSIDERATION TO THE  PLAN  FOR  LOW
 AND  MODERATE INCOME HOUSING ESTABLISHED IN THIS SECTION AND THE NEED TO
 MAINTAIN THE ECONOMIC VIABILITY OF THE DEVELOPMENT.
   3. IN ENTERING THE PHASE-IN ORDER, THE COURT SHALL CONSIDER WHETHER OR
 NOT IT IS NECESSARY TO CONDITION THE  PHASE-IN  ORDER  UPON  A  PHASE-IN
 SCHEDULE  FOR THE CONSTRUCTION OF OTHER DEVELOPMENTS IN THE MUNICIPALITY
 TO MINIMIZE AN IMBALANCE BETWEEN AVAILABLE HOUSING UNITS  AND  AVAILABLE
 JOBS, OR TO PREVENT THE SITES WHICH ARE THE MOST APPROPRIATE OR THE ONLY
 POSSIBLE  SITES  FOR THE CONSTRUCTION OF LOW AND MODERATE INCOME HOUSING
 FROM BEING USED FOR OTHER PURPOSES, OR TO PREVENT LIMITED PUBLIC INFRAS-
 TRUCTURE CAPACITIES FROM BEING ENTIRELY UTILIZED FOR OTHER PURPOSES.
   4. IN ENTERING A PHASING ORDER, THE  COURT,  UPON  MUNICIPAL  REQUEST,
 SHALL  IMPLEMENT  A  SPECIFIC PHASING SCHEDULE FOR THE ISSUANCE OF FINAL
 APPROVALS IN  INCLUSIONARY  DEVELOPMENTS.  THE  COURT  SHALL  TAKE  INTO
 ACCOUNT  THE  SIX ANALYSIS FACTORS ENUMERATED IN SUBDIVISION ONE OF THIS
 SECTION, GIVING PARTICULAR ATTENTION TO:
   A. THE SIZE OF THE MUNICIPAL FAIR SHARE WHICH IS  TO  BE  PROVIDED  IN
 INCLUSIONARY DEVELOPMENTS;
   B.  THE  EXTENT  AND PROJECTED CAPACITY OF THE COMMUNITY'S INFRASTRUC-
 TURE, TAKING INTO  ACCOUNT  EXPANSION  AND  REHABILITATION  OF  EXISTING
 FACILITIES; AND
   C. THE EXTENT AND PATTERN OF GROWTH WITHIN THE MUNICIPALITY AND REGION
 DURING THE SIX YEARS PRIOR TO THE IMPLEMENTATION OF THE PHASE-IN PLAN.
   THE  FOLLOWING TIME PERIODS SHALL BE GUIDELINES FOR A PHASING SCHEDULE
 FOR THE  ISSUANCE  OF  FINAL  APPROVALS  IN  INCLUSIONARY  DEVELOPMENTS,
 SUBJECT, HOWEVER, TO UPWARD OR DOWNWARD MODIFICATION BASED UPON A REVIEW
 OF THE ANALYSIS FACTORS:
   ANY  MUNICIPALITY  WHICH  HAS  A FAIR SHARE OBLIGATION TO PROVIDE FIVE
 THOUSAND OR MORE LOW AND MODERATE INCOME UNITS IN INCLUSIONARY  DEVELOP-
 MENTS  SHALL BE ENTITLED TO CONSIDERATION OF A PHASE-IN SCHEDULE FOR THE
 ISSUANCE OF FINAL APPROVALS IN INCLUSIONARY  DEVELOPMENTS  OF  AT  LEAST
 TWENTY YEARS FROM THE EFFECTIVE DATE OF THIS ARTICLE.
   ANY  MUNICIPALITY WHICH HAS A FAIR SHARE OBLIGATION TO PROVIDE BETWEEN
 THIRTY-FIVE HUNDRED AND FORTY-NINE HUNDRED NINETY-NINE LOW AND  MODERATE
 INCOME UNITS IN INCLUSIONARY DEVELOPMENTS SHALL BE ENTITLED TO CONSIDER-
 ATION  OF  A  PHASE-IN  SCHEDULE  FOR THE ISSUANCE OF FINAL APPROVALS IN
 INCLUSIONARY DEVELOPMENTS OF AT LEAST FIFTEEN YEARS FROM  THE  EFFECTIVE
 DATE OF THIS ARTICLE.
   ANY  MUNICIPALITY WHICH HAS A FAIR SHARE OBLIGATION TO PROVIDE BETWEEN
 TWO THOUSAND AND THIRTY-FOUR HUNDRED NINETY-NINE LOW AND MODERATE INCOME
 UNITS IN INCLUSIONARY DEVELOPMENTS SHALL BE ENTITLED TO CONSIDERATION OF
 A PHASE-IN SCHEDULE FOR THE ISSUANCE OF FINAL APPROVALS IN  INCLUSIONARY
 DEVELOPMENTS OF AT LEAST TEN YEARS FROM THE EFFECTIVE DATE OF THIS ARTI-
 CLE.
   ANY  MUNICIPALITY WHICH HAS A FAIR SHARE OBLIGATION TO PROVIDE BETWEEN
 FIVE HUNDRED AND ONE THOUSAND NINE HUNDRED NINETY-NINE LOW AND  MODERATE
 INCOME UNITS IN INCLUSIONARY DEVELOPMENTS SHALL BE ENTITLED TO CONSIDER-
 ATION  OF  A  PHASE-IN  SCHEDULE  FOR THE ISSUANCE OF FINAL APPROVALS IN
 INCLUSIONARY DEVELOPMENTS OF AT LEAST SIX YEARS FROM THE EFFECTIVE  DATE
 OF THIS ARTICLE.

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   ANY  MUNICIPALITY  WHICH  HAS  A FAIR SHARE OBLIGATION TO PROVIDE LESS
 THAN FIVE HUNDRED LOW AND MODERATE INCOME UNITS IN INCLUSIONARY DEVELOP-
 MENTS SHALL BE ENTITLED TO CONSIDERATION OF A PHASE-IN SCHEDULE FOR  THE
 ISSUANCE OF FINAL APPROVALS IN INCLUSIONARY DEVELOPMENTS FOR SUCH PERIOD
 OF  TIME,  INCLUDING A PERIOD OF AT LEAST SIX YEARS, AS IS DETERMINED TO
 BE REASONABLE PURSUANT TO THE ANALYSIS FACTORS.
   5. AS PART OF A PHASING ORDER  CONCERNING  INCLUSIONARY  DEVELOPMENTS,
 THE  COURT  MAY  APPROVE  A  MUNICIPAL  PLAN, OR IMPLEMENT ANOTHER PLAN,
 CONCERNING PRIORITIES AMONG DEVELOPERS AND SITES, AND THE TIMING IN  THE
 ISSUANCE  OF FINAL APPROVALS TO PARTICULAR DEVELOPERS. ANY PLAN CONCERN-
 ING PRIORITIES AND THE TIMING OF FINAL APPROVALS SHALL TAKE INTO CONSID-
 ERATION:
   A. THE LOCATION OF VARIOUS SITES AND THEIR SUITABILITY FOR DEVELOPMENT
 PURSUANT  TO  ENVIRONMENTAL  PROTECTION  AND  SOUND  PLANNING  CRITERIA,
 INCLUDING  THEIR  CONSISTENCY  WITH  REASONABLE  PROVISIONS OF MUNICIPAL
 MASTER PLANS;
   B. INFRASTRUCTURE CAPACITY OR THE ABILITY TO PROVIDE THE CAPACITY  FOR
 THE  SITE,  AND  THE  READINESS  OF  A  PARTICULAR DEVELOPER TO COMMENCE
 CONSTRUCTION; AND
   C. ANY SETTLEMENTS  OR  COURT  ORDERS  ESTABLISHING  PRIORITIES  AMONG
 DEVELOPERS.
   CONSISTENT  WITH  THE OVERALL PHASING SCHEDULE ADOPTED PURSUANT TO THE
 ANALYSIS FACTORS, THE MUNICIPALITY SHALL MAKE A  GOOD  FAITH  EFFORT  TO
 TIME  THE  ISSUANCE OF FINAL APPROVALS FOR PARTICULAR DEVELOPMENTS WHICH
 IT APPROVES IN A MANNER WHICH ENABLES  THE  REALISTIC  AND  ECONOMICALLY
 VIABLE  CONSTRUCTION  OF THE DEVELOPMENT.  TO THIS END, THE MUNICIPALITY
 SHALL TAKE INTO CONSIDERATION THE NEED FOR SUFFICIENT DEVELOPMENT  IN  A
 PARTICULAR  PROJECT  TO  PERMIT TIMELY RECOVERY OF INFRASTRUCTURE COSTS,
 AND, IN THE CASE OF A DEVELOPMENT WHICH WILL HAVE A HOMEOWNERS'  ASSOCI-
 ATION,  TO  PREVENT THE IMPOSITION OF EXCESSIVE HOMEOWNERS' FEES BECAUSE
 OF THE FAILURE TO ACHIEVE ECONOMIES OF SCALE. IN THE CASE OF  DEVELOPERS
 WHO  HAVE PREVIOUSLY CONSTRUCTED RESIDENTIAL DEVELOPMENTS IN THIS STATE,
 A MUNICIPALITY SHALL ALSO TAKE INTO CONSIDERATION THE GREATEST NUMBER OF
 UNITS WHICH THE DEVELOPER HAS CONSTRUCTED IN ANY ONE DEVELOPMENT IN  THE
 STATE WITHIN ANY ONE YEAR PERIOD; THIS FACTOR SHALL BE CONSIDERED IF THE
 MUNICIPALITY  SEEKS  TO  PHASE  THE  ISSUANCE OF FINAL APPROVALS FOR THE
 INCLUSIONARY DEVELOPMENT OVER A PERIOD GREATER THAN ONE YEAR.
   § 342. PURCHASE, LEASE  OR  ACQUISITION  BY  GIFT  OF  REAL  PROPERTY.
 NOTWITHSTANDING  ANY  OTHER  LAW  TO  THE  CONTRARY,  A MUNICIPALITY MAY
 PURCHASE, LEASE OR ACQUIRE BY GIFT  REAL  PROPERTY  AND  ANY  ESTATE  OR
 INTEREST  THEREIN,  WHICH THE MUNICIPAL GOVERNING BODY DETERMINES NECES-
 SARY OR USEFUL FOR THE CONSTRUCTION OR REHABILITATION OF LOW AND  MODER-
 ATE INCOME HOUSING OR CONVERSION TO LOW AND MODERATE INCOME HOUSING.
   THE  MUNICIPALITY  MAY  PROVIDE  FOR THE ACQUISITION, CONSTRUCTION AND
 MAINTENANCE OF BUILDINGS, STRUCTURES OR OTHER IMPROVEMENTS NECESSARY  OR
 USEFUL  FOR  THE  PROVISION  OF LOW AND MODERATE INCOME HOUSING, AND MAY
 PROVIDE FOR THE RECONSTRUCTION, CONVERSION OR  REHABILITATION  OF  THOSE
 IMPROVEMENTS  IN  SUCH  MANNER  AS  MAY BE NECESSARY OR USEFUL FOR THOSE
 PURPOSES.
   NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW REGARDING THE  CONVEY-
 ANCE,  SALE  OR  LEASE OF REAL PROPERTY BY MUNICIPALITIES, THE MUNICIPAL
 GOVERNING BODY MAY,  BY  RESOLUTION,  AUTHORIZE  THE  PRIVATE  SALE  AND
 CONVEYANCE  OR  LEASE OF A HOUSING UNIT OR UNITS ACQUIRED OR CONSTRUCTED
 PURSUANT TO THIS SECTION, WHERE THE SALE, CONVEYANCE OR LEASE  IS  TO  A
 LOW  OR  MODERATE  INCOME  HOUSEHOLD  OR NONPROFIT ENTITY AND CONTAINS A

 A. 2558                            14
 
 CONTRACTUAL GUARANTEE THAT THE HOUSING UNIT WILL REMAIN AVAILABLE TO LOW
 AND MODERATE INCOME HOUSEHOLDS FOR A PERIOD OF AT LEAST THIRTY YEARS.
   § 343. ANNUAL REPORT OF COUNCIL. WITHIN TWELVE MONTHS AFTER THE EFFEC-
 TIVE  DATE  OF THIS ARTICLE AND EVERY YEAR THEREAFTER, THE COUNCIL SHALL
 REPORT TO THE GOVERNOR AND THE LEGISLATURE ON THE EFFECT OF THIS ARTICLE
 IN PROMOTING THE PROVISION OF LOW AND MODERATE  INCOME  HOUSING  IN  THE
 SEVERAL  HOUSING REGIONS OF THIS STATE. THE REPORT MAY INCLUDE RECOMMEN-
 DATIONS FOR ANY REVISIONS OR CHANGES IN THIS ARTICLE WHICH  THE  COUNCIL
 BELIEVES NECESSARY TO MORE NEARLY EFFECTUATE THIS END.
   WITHIN THIRTY-SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE
 COUNCIL  SHALL REPORT TO THE GOVERNOR AND THE LEGISLATURE CONCERNING THE
 ACTIONS NECESSARY TO BE TAKEN AT THE STATE, REGIONAL, COUNTY AND MUNICI-
 PAL LEVELS TO PROVIDE FOR THE IMPLEMENTATION AND ADMINISTRATION OF  THIS
 ARTICLE  ON  A REGIONAL BASIS, INCLUDING ANY REVISIONS OR CHANGES IN THE
 LAW NECESSARY TO ACCOMPLISH THAT END. THE COUNCIL  MAY  INCLUDE  IN  THE
 REPORT  ANY  RECOMMENDATIONS  OR  CONSIDERATIONS  IT MAY WISH TO PROVIDE
 REGARDING THE ADVISABILITY OF IMPLEMENTING AND ADMINISTERING THIS  ARTI-
 CLE ON A REGIONAL BASIS.
   §  4.  Section  261  of the town law, as amended by chapter 458 of the
 laws of 1997, is amended to read as follows:
    § 261.  Grant of power; appropriations for certain expenses  incurred
 under  this  article.   For the purpose of promoting the health, safety,
 morals, or the general welfare of the REGIONAL community, the town board
 is hereby empowered by local law or ordinance to regulate  and  restrict
 the  height,  number  of  stories and size of buildings and other struc-
 tures, the percentage of lot that may be occupied, the  size  of  yards,
 courts,  and  other  open  spaces,  the  density  of population, and the
 location and use of buildings, structures and land for trade,  industry,
 residence  or other purposes; provided that such regulations shall apply
 to and affect only such part of a town as is outside the limits  of  any
 incorporated  village  or  city;  PROVIDED  THAT SUCH REGULATIONS DO NOT
 INHIBIT AND MAKE ECONOMICALLY INFEASIBLE THE DEVELOPMENT  OF  AFFORDABLE
 HOUSING  FOR  LOW  AND  MODERATE  INCOME  PERSONS AS PROVIDED IN ARTICLE
 TWELVE-A OF THE PUBLIC HOUSING  LAW;  AND  provided  further,  that  all
 charges and expenses incurred under this article for zoning and planning
 shall  be  a  charge  upon the taxable property of that part of the town
 outside of any incorporated village or city.  The town board  is  hereby
 authorized  and  empowered  to make such appropriation as it may see fit
 for such charges and expenses, provided however, that such appropriation
 shall  be  the  estimated  charges  and  expenses  less  fees,  if  any,
 collected,  and  provided,  that  the  amount  so  appropriated shall be
 assessed, levied and collected from the property outside of any incorpo-
 rated village or city.  Such regulations may provide  that  a  board  of
 appeals  may  determine and vary their application in harmony with their
 general purpose and intent, and in accordance with general  or  specific
 rules therein contained.
   §  5.  Section  263  of the town law, as amended by chapter 602 of the
 laws of 2003, is amended to read as follows:
   § 263. Purposes in view. Such regulations shall be made in  accordance
 with  a  comprehensive  plan  and  designed  to lessen congestion in the
 streets; to secure safety from fire, flood, panic and other dangers;  to
 promote health and general welfare OF THE REGIONAL COMMUNITY; to provide
 adequate  light  and  air; to prevent the overcrowding of land; to avoid
 undue concentration of population; to make  provision  for,  so  far  as
 conditions  may  permit,  the  accommodation of solar energy systems and
 equipment and access to sunlight necessary therefor; to  facilitate  the

 A. 2558                            15
 
 practice  of forestry; to facilitate the adequate provision of transpor-
 tation, water, sewerage, schools, parks and other  public  requirements.
 Such  regulations  shall  be  made  with reasonable consideration, among
 other things, as to the character of the district and its peculiar suit-
 ability  for particular uses, and with a view to conserving the value of
 buildings and encouraging the most appropriate use  of  land  throughout
 such municipality.
   §  6.  Section  282  of the town law, as amended by chapter 310 of the
 laws of 1962 and the opening paragraph as amended by chapter 459 of  the
 laws of 1991, is amended to read as follows:
    §  282. Court review. [Any] EXCEPT AS PROVIDED IN ARTICLE TWELVE-A OF
 THE PUBLIC HOUSING LAW IN RELATION TO THE DEVELOPMENT OF LOW AND  MODER-
 ATE  INCOME  HOUSING,  ANY  person  or  persons,  jointly  or  severally
 aggrieved by any decision of the planning board concerning such plat  or
 the  changing  of  the  zoning regulations of such land, or any officer,
 department, board or bureau of the town, may have the decision  reviewed
 by a special term of the supreme court in the manner provided by article
 seventy-eight  of the civil practice law and rules provided the proceed-
 ing is commenced within thirty days after the filing of the decision  in
 the office of the town clerk.
    Commencement  of the proceeding shall stay proceedings upon the deci-
 sion appealed from.
    If, upon the hearing, it shall appear to the court that testimony  is
 necessary for the proper disposition of the matter, it may take evidence
 or  appoint  a referee to take such evidence as it may direct and report
 the same to the court with his findings of fact and conclusions of  law,
 which shall constitute a part of the proceedings upon which the determi-
 nation  of  the  court  shall  be made. The court may reverse or affirm,
 wholly or partly, or may modify the decision brought up for review.
    Costs shall not be allowed against  the  planning  board,  unless  it
 shall  appear to the court that it acted with gross negligence or in bad
 faith or with malice in making the decision appealed from.
    All issues in any proceeding under this section shall have preference
 over all other civil actions and proceedings.
   § 7. Section 7-700 of the village law is amended to read as follows:
    § 7-700 Grant of power. For the  purpose  of  promoting  the  health,
 safety,  morals,  or  the general welfare of the REGIONAL community, the
 board of trustees of a village is hereby empowered,  by  local  law,  to
 regulate  and  restrict the height, number of stories and size of build-
 ings and other structures, the percentage of lot that may  be  occupied,
 the  size  of  yards, courts and other open spaces, the density of popu-
 lation, and the location and use of buildings, structures and  land  for
 trade,  industry, residence or other purposes.  As a part of the compre-
 hensive plan and design, the village board is empowered by local law, to
 regulate and restrict certain  areas  as  national  historic  landmarks,
 special  historic sites, places and buildings for the purpose of conser-
 vation, protection, enhancement and  perpetuation  of  these  places  of
 natural  heritage.  SUCH  REGULATIONS  SHALL NOT INHIBIT OR MAKE ECONOM-
 ICALLY INFEASIBLE THE DEVELOPMENT OF  AFFORDABLE  HOUSING  FOR  LOW  AND
 MODERATE  INCOME  PERSONS  AS PROVIDED IN ARTICLE TWELVE-A OF THE PUBLIC
 HOUSING LAW. Such regulations shall provide that a board of appeals  may
 determine and vary their application in harmony with the general purpose
 and  intent,  and  in  accordance with general or specific rules therein
 contained.
   § 8. Section 7-704 of the village law, as amended by  chapter  742  of
 the laws of 1979, is amended to read as follows:

 A. 2558                            16
 
    §  7-704  Purposes in view. Such regulations shall be made in accord-
 ance with a comprehensive plan and designed to lessen congestion in  the
 streets; to secure safety from fire, panic, floods and other dangers; to
 promote  health  and  the  general welfare OF THE REGIONAL COMMUNITY; to
 provide  adequate light and air; to prevent the overcrowding of land; to
 avoid undue concentration of population; to make provision for,  so  far
 as  conditions may permit, the accommodation of solar energy systems and
 equipment and access to sunlight necessary therefor; to  facilitate  the
 adequate  provision  of  transportation, water, sewerage, schools, parks
 and other public requirements.  Such  regulations  shall  be  made  with
 reasonable consideration, among other things, as to the character of the
 district  and  its  peculiar  suitability for particular uses, AS TO THE
 REGIONAL NEED FOR AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME PERSONS
 and with a view to conserving the value of buildings and encouraging the
 most appropriate use of land throughout such municipality.
   § 9. Section 7-740 of the village law, as amended by  chapter  391  of
 the laws of 2000, is amended to read as follows:
   §  7-740  Review  of  decisions  of  planning  board.  [Any] EXCEPT AS
 PROVIDED IN ARTICLE TWELVE-A OF THE PUBLIC HOUSING LAW  IN  RELATION  TO
 DEVELOPMENT OF LOW AND MODERATE INCOME HOUSING, ANY officer, department,
 board  or bureau of the village, with the approval of the board of trus-
 tees, or any person or persons, jointly or severally  aggrieved  by  any
 decision  of  the planning board concerning such plat or the changing of
 the zoning regulations of such land, may bring a proceeding to review in
 the manner provided by article seventy-eight of the civil  practice  law
 and rules in a court of record on the ground that such decision is ille-
 gal, in whole or in part. Such proceeding must be commenced within thir-
 ty  days  after  the filing of the decision in the office of the village
 clerk.
   Commencement of the proceeding shall stay proceedings upon  the  deci-
 sion appealed from.
   If,  upon  the hearing, it shall appear to the court that testimony is
 necessary for the proper disposition of the matter, it may take evidence
 or appoint a referee to take such evidence as it may direct  and  report
 the  same to the court with his findings of fact and conclusions of law,
 which shall constitute a part of the proceedings upon which the determi-
 nation of the court shall be made. The  court  may  reverse  or  affirm,
 wholly or partly, or may modify the decision brought up for review.
   Costs shall not be allowed against the planning board, unless it shall
 appear  to the court that it acted with gross negligence or in bad faith
 or with malice in making the decision appealed from.
   All issues in any proceeding under this section shall have  preference
 over all other civil actions and proceedings.
   §  10.  Subdivisions  24 and 25 of section 20 of the general city law,
 subdivision 24 as amended by chapter 742  of the laws of 1979 and subdi-
 vision 25 as added by chapter 483 of the laws of 1917,  are  amended  to
 read as follows:
    24.  To regulate and limit the height, bulk and location of buildings
 hereafter  erected,  to regulate and determine the area of yards, courts
 and other open spaces, and to regulate the density of population in  any
 given  area,  and  for  said purposes to divide the city into districts.
 Such regulations shall be uniform for each class of buildings throughout
 any district, but the regulations in one or more  districts  may  differ
 from  those  in other districts.   Such regulations shall be designed to
 secure safety from fire, flood and other  dangers  and  to  promote  the
 public  health and GENERAL welfare OF THE REGIONAL COMMUNITY, including,

 A. 2558                            17
 
 so far as conditions may permit,  provision  for  adequate  light,  air,
 convenience of access, and the accommodation of solar energy systems and
 equipment  and  access to sunlight necessary therefor, and shall be made
 with  reasonable  regard  to  the character of buildings erected in each
 district, the value of land and the use to which it may be put,  to  the
 end  that such regulations may promote public health, safety and GENERAL
 welfare OF THE REGIONAL COMMUNITY and the most desirable use  for  which
 the  land  of  each district may be adapted and may tend to conserve the
 value of buildings and enhance the value of land  throughout  the  city.
 SUCH  REGULATIONS  SHALL NOT INHIBIT OR MAKE ECONOMICALLY INFEASIBLE THE
 DEVELOPMENT OF AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME PERSONS AS
 PROVIDED IN ARTICLE TWELVE-A OF THE PUBLIC HOUSING LAW.
    25.  To regulate and restrict the location of trades  and  industries
 and the location of buildings, designed for specified uses, and for said
 purposes  to  divide  the  city into districts and to prescribe for each
 such district the trades  and  industries  that  shall  be  excluded  or
 subjected to special regulation and the uses for which buildings may not
 be  erected  or altered.   Such regulations shall be designed to promote
 the public health, safety and general welfare OF THE REGIONAL  COMMUNITY
 and  shall be made with reasonable consideration, among other things, to
 the character of the district, its peculiar suitability  for  particular
 uses,  the conservation of property values and the direction of building
 development, in accord with a well  considered  plan.  SUCH  REGULATIONS
 SHALL  NOT  INHIBIT  OR  MAKE ECONOMICALLY INFEASIBLE THE DEVELOPMENT OF
 AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME PERSONS  AS  PROVIDED  IN
 ARTICLE TWELVE-A OF THE PUBLIC HOUSING LAW.
   §  11.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law.