Any development of five or more new residential dwelling units shall provide at least 15% of the units in rental developments as affordable units and 20% of all units in for-sale developments as affordable units with at least 50% being affordable low-income households, including 13% in rental developments being affordable to very-low-income households with all such affordable units, including the required bedroom distribution, be governed by controls on affordability and affirmatively marketed in conformance with the Uniform Housing Affordability Controls ("UHAC") N.J.A.C. 5:80-26.1 et seq. or any successor regulation, and all other applicable law.

In the event the number of units is not a multiple of five, and the number does not round up, the developer shall pay the affordable housing development fee for the increment of the market units that are not subject to the set aside. For example, if a residential development is approved for 12 units, two of the 12 units to be constructed must be affordable and the remaining 10 may be market rate. The developer must also pay the affordable housing development fee on two market units. If the development is instead approved for 13 units, the required set aside will be rounded up and three of the 13 units shall be affordable. The developer in "rounded-up" developments will not be responsible to pay any affordable housing development fee.

Pursuant to N.J.A.C. 5:97-6.4, residential developments of four or fewer residential dwelling units shall not be required to make a payment in lieu or provide for an affordable housing set-aside.

In accordance with § 400-62 below, the Township may approve the construction of affordable units required by the development identified above on an off-site location or through an alternative mechanism to produce affordable units within the Township, provided the mechanism is authorized by COAH regulations. The developer shall present its planned method of affordable housing compliance to the Township or its designee at the time of filing an application for development approval. Municipal approval of the off-site construction of affordable units or the use of an alternative mechanism shall be conditioned on Township Committee endorsement of the proposed method of affordable housing compliance.

A developer of a tract of land zoned for multifamily purposes may not subdivide the tract into two or more lots for the purpose of avoiding the affordable housing set-aside required by this article.

All the provisions of this article are subject to the provisions of the settlement agreement which is incorporated herein as if set forth in length, the applicable provisions of UHAC, COAH rules, the Fair Housing Act N.J.S.A. 52:27D-301 et seq. and the Township's Housing Element and Fair Share Plan or any successor regulation, and all other applicable law.

Payments in lieu of the construction of affordable housing shall be based upon N.J.A.C. 5:97-6.4(c)(3).

Regardless of the mechanism selected by the developer for satisfying the required number of affordable housing units, any development or portion thereof that generates a fraction of an affordable housing unit as all or a portion of the obligation shall under any circumstances be required to make a payment in lieu of construction for that fraction of a unit based on the prorated cost of constructing an affordable housing unit in Lebanon Township.

As to affordable housing units constructed on site within a residential development:

As to affordable housing units constructed on site within a nonresidential development:

Developers electing to create affordable housing units elsewhere within Lebanon Township may do so within existing buildings of Lebanon Township, as set forth and regulated herein.

Within all residential zones other than the RC, R-5, and R-3 Residential Zones in Lebanon Township, the reconstruction and conversion of any dwelling from a single- or two-family dwelling into a building containing up to three dwellings in which all such dwelling units are deed restricted for affordability to and occupancy by low- and moderate-income households shall be permitted as of right, subject to meeting all other requirements of this section, notwithstanding any other provision of this article to the contrary.

No individual dwelling shall be smaller than 550 square feet.

All affordable units shall comply with COAH's rules pertaining to the phasing (with the market units being constructed elsewhere by the same developer), low-/moderate-income split, controls on affordability, bedroom distribution, affirmative marketing, heating source and administration of the affordable units.

All required setbacks, building height and coverage limits shall be met on the lot, except that, for the purposes of accommodating patios (but not decks) and parking for the affordable units, the maximum lot coverage on any lot containing affordable units shall be a maximum of 30% of the lot area and except further that existing setback deficiencies and other nonconformities of the lot and/or building may be continued without the need for additional variances.

The use of any of the foregoing mechanisms for providing affordable housing within Lebanon Township shall be limited to the provision of non-age-restricted rental affordable housing units in compliance with all of COAH's rules.

The Planning Board shall have the jurisdiction to consider the grant of a waiver from the foregoing to permit age-restricted or for sale housing where the Board finds that granting such a waiver would be more appropriate to the context of the development or to the location and nature of the affordable housing unit(s) being created. The Planning Board shall consider the Township-wide impacts of such a deviation upon the adopted and COAH-certified Housing Element and Fair Share Plan before approving any such waiver.

A proposed affordable housing production plan shall be submitted to the Planning Board at the time application is made for any development requiring growth-based affordable housing production pursuant to this section. This plan shall be a condition of the "completeness" determination. All affordable housing production plans shall be the subject of review by the Planning Board's Planner for consistency with COAH's rules and with the Township's certified third round Housing Element and Fair Share Plan. Compliance with all of the terms of COAH's rules and with the approved affordable housing production plan shall be a condition of development plan approval and may be covered by appropriate performance and maintenance guarantees as with any other required improvement.

Where an odd number of low- and moderate-income housing units are required to be provided, the majority of the units shall be low-income units. Where there are an insufficient number of affordable units provided to meet the bedroom distribution requirements of COAH's rules, the first unit shall be a two-bedroom unit, the second unit shall be a three-bedroom unit and the third unit shall be a one-bedroom unit. Otherwise, the bedroom distribution shall be in strict accordance with COAH's rules. It shall be the developer's responsibility, at its sole cost and expense, to contract with a COAH-approved and Township-designated experienced entity for the initial and ongoing administration of the controls on affordability so as to ensure full COAH compliance. The designated administrative entity shall, by February 1 of each year, and as needed throughout the year, file with the Township Clerk of the Township of Lebanon such certifications, reports and/or monitoring forms as may be required by COAH to verify the continuing compliance of each affordable unit with COAH's rules.

Inclusionary residential developments constructed in any zones hereafter designated for inclusionary development shall be exempt from the requirements of this section. Moreover, developments covered by this section shall be exempt from the payment of development fees pursuant to any Development Fee Ordinance adopted by the Township.