All new construction multifamily or single-family attached residential dwelling unit developments, whether for sale or rental, within the borders of the Township of Upper proposing five units or more, shall have a mandatory 20% set-aside for the purposes of providing affordable housing to very-low-, low- and moderate-income households. This applies to all such developments, whether permitted by a zoning amendment, an approval or variance, including use variance, granted by the Township's Planning Board or Zoning Board, or through the adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation. All affordable units must be constructed on-site; provided, however, that the Township (Planning Board or Zoning Board) may, on a case-by-case basis, permit off-site affordable housing, at its sole discretion.

The provisions herein shall not apply to residential expansion, additions, renovations, replacements, or any other type of residential development that does not result in a net increase in the number of dwelling units.

This section shall not apply to developments containing four or less dwelling units.

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

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

For any such development where the Township's land use ordinances (e.g., zoning or an adopted redevelopment plan) already permitted residential development as of the effective date of the adoption of this section, this requirement shall only apply if the Township permits an increase in approvable and developable gross residential density to beyond the permitted approvable and developable gross residential density as of the effective date of the adoption of this ordinance.

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

The requirements in this subsection do 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.

The requirements in this subsection do not apply to any sites or specific overlay zones otherwise identified in the Township's adopted Fair Share Plan, for which density and set-aside standards shall be governed by the specific standards set forth therein.

Notwithstanding any provision to the contrary, any density transfer requirement in any zone shall not apply to applications or projects including an affordable housing set aside of at least 20%.

For any residential developments with more than four dwelling units which results in a fractional share, the set-aside shall be rounded down to the next whole number and the developer shall pay into the affordable housing trust fund a fractional share of an affordable housing unit to be derived from calculations for payments in lieu of constructing affordable housing as published in N.J.A.C. 5:97-6.4(c)3 for the region in which the Township is located as may be amended from time to time multiplied by the fractional unit. Payment in lieu is only permitted for fractional shares.