If the Borough or the Borough's Planning Board or Zoning Board of Adjustment permits the construction of multifamily or single-family attached residential development that is "approvable" and "developable," as defined at N.J.A.C. 5:93-1.3, the Borough or the Borough's Planning Board or Zoning Board shall require that an appropriate percentage of the residential units be set aside for low- and moderate-income households.

This requirement shall apply beginning with the effective date the ordinance creating this section was adopted to any multifamily or single-family attached residential development, including the residential portion of a mixed-use project, which consists of five or more new residential units, whether permitted by a zoning amendment, a variance granted by the Borough's Planning Board or Zoning Board, or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation.

For any such development for which the Borough's land use ordinances (e.g., zoning or an adopted redevelopment plan) already permitted residential development as of the effective date the ordinance creating this section was adopted, this requirement shall only apply if the Borough, the Borough's Planning Board, or the Borough's Zoning Board permits an increase in approvable and developable gross residential density to at least twice the permitted approvable and developable gross residential density as of the effective date the ordinance creating this section was adopted.

Nothing in this section precludes the Borough, the Borough's Planning Board, or the Borough's Zoning Board from imposing an affordable housing set-aside in a development not required to have a set-aside pursuant to this subsection consistent with N.J.S.A. 52:27D-311(h) and other applicable law.

For all inclusionary projects, the appropriate set-aside percentage will be 20% for all for-sale projects and 15% for all rental projects.

This requirement does not create any entitlement for a property owner or applicant for a zoning amendment, variance, or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation, or for approval of any particular proposed project.

This requirement does not apply to any sites or specific zones otherwise identified in the Borough's Settlement Agreement with FSHC, which was executed by the Borough on July 28, 2020, or in the Borough's 2020 Housing Element and Fair Share Plan, for which density and set-aside standards shall be governed by the specific standards set forth therein. Furthermore, this section shall not apply to developments containing four or less dwelling units.

All subdivision and site plan approvals of qualifying residential developments shall be conditioned upon compliance with the provisions of this section.

Where a developer demolishes existing dwelling units and builds new dwelling units on the same site, the provisions of this section shall apply only if the net number of dwelling units is five or more.

All inclusionary projects created under this section must comply with the affordable housing requirements in the Borough's Affordable Housing Ordinance at Chapter 49 of the Borough Code and the Uniform Housing Affordability Controls rules (N.J.A.C. 5:80-26.1 et seq.), as may be amended from time to time.