[HISTORY: Adopted by the Township Committee
of the Township of Hainesport 5-14-2024 by Ord. No. 2024-8.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 44,
Affordable Housing, adopted 5-10-1994 by Ord. No. 1994-9-4, as amended.
A.
The Code of the Township of Hainesport is hereby amended to include
provisions addressing Hainesport's constitutional obligation
to provide for its fair share of very-low-, low-, and moderate-income
housing, as directed by the Superior Court and consistent with N.J.A.C.
5:93-1 et seq.,[1] as amended and supplemented, N.J.A.C. 5:80-26.1 et seq.,
as amended and supplemented, and the New Jersey Fair Housing Act of
1985. This chapter is intended to provide assurances that very-low-,
low-, and moderate-income units ("affordable units") are created with
controls on affordability over time and that very-low-, low-, and
moderate-income households shall occupy those units. This chapter
shall apply except where inconsistent with applicable law.
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
B.
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Hainesport
pursuant to the Township's most recently adopted Housing Element
and Fair Share Plan.
C.
Moreover, this chapter shall apply to all developments that contain
very-low-, low- and moderate-income housing units, including any currently
unanticipated future developments that will provide very-low-, low-
and moderate-income housing units and including any developments funded
with low-income housing tax credits.
The following terms, when used in this chapter, shall have the
meanings given in this section:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.), as has been subsequently amended.
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-3.14(b).
The entity designated by the Township to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93,[1] and the Uniform Housing Affordability Controls (UHAC)
(N.J.A.C. 5:80-26).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to very-low-,
low- and moderate-income households.
A sales price or rent within the means of a very-low-, low-
or moderate-income household, as defined in N.J.A.C. 5:93-7.4,[2] and in the case of an ownership unit, that the sales price
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6,
as may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project, or a 100% affordable
housing development.
Any mechanism in the Township's Fair Share Plan prepared
or implemented to address the Township's fair share obligation.
A housing unit proposed or created pursuant to the Act and
approved for crediting by the court and/or funded through an affordable
housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
The development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons," as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency (also
HMFA) established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A building in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to, transitional facilities for the homeless; Class A, B, C, D, and
E boarding homes as regulated by the New Jersey Department of Community
Affairs; residential health care facilities as regulated by the New
Jersey Department of Health; group homes for the developmentally disabled
and mentally ill as licensed and/or regulated by the New Jersey Department
of Human Services; and congregate living arrangements.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an administrative
agent as a very-low-, low-income household or moderate-income household.
The New Jersey Council on Affordable Housing established
under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A "major system"
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
The Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
Money paid by a developer for the improvement of property
as authorized by Holmdel Builder's Association v. Holmdel Township,
121 N.J. 550 (1990), and the Fair Housing Act of 1985, N.J.S.A. 52:27d-301
et seq., and regulated by applicable COAH Rules.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973. c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
The plan that describes the mechanisms and the funding sources,
if applicable, by which a municipality proposes to address its affordable
housing obligation as established in the Housing Element, including
the draft ordinances necessary to implement that plan, and addresses
the requirements of N.J.A.C. 5:93.[3]
The New Jersey Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
The New Jersey Housing and Mortgage Finance Agency (also
"Agency") established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
The portion of the Township's Master Plan required by
the Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-28b(3) and other
legislation.
A development containing both affordable units and market-rate
units. Inclusionary developments must have a 20% set-aside of affordable
units if the development has five or more units and is a for-sale
project, or a 15% set-aside if the development is a rental project.
This term includes, but is not necessarily limited to: new construction,
the conversion of a nonresidential structure to residential, and the
creation of new affordable units through the reconstruction of a vacant
residential structure.
Includes revenue and receipts, actual or fairly imputed,
from all sources, including but not limited to wages, interest, dividends,
social security, pensions, government benefits, alimony, child support
and rents from income property.
The first transfer of occupancy from a developer to a qualified
renter.
The first transfer of title of a unit from a developer to
a qualified buyer.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size for the applicable housing region.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building, which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to very-low-, low- and moderate-income
households that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size for the applicable housing region.
A restricted unit that is affordable to a moderate-income
household.
The Township employee charged by the governing body with
the responsibility for oversight and supervision of the Affordable
Housing Program for the Township of Hainesport, including overseeing
the administration of affordability controls, the Affirmative Marketing
Plan, monitoring and reporting, and supervising any contracted administrative
agent.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class
A beneficiary; and the transfer of ownership by court order.
An estimate of very-low-, low- and moderate-income households
living in substandard housing as calculated through the use of census
surrogates or a survey of the municipal housing stock utilizing a
municipally conducted structural conditions survey. Calculations for
determining need shall comply with N.J.A.C. 5:93.[4] Same shall be reviewable by the Court, which shall review
the results of the data collected and may modify the rehabilitation
share number if it determines same to be necessary.
The 1987-1999 fair share based on N.J.A.C. 5:93-1.[5]
The Township of Hainesport's Affordable Housing Program.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted Regional Income Limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under the Agency's Urban Home Ownership Recovery
Program (UHORP) or Market Oriented Neighborhood Investment Program
(MONI).
The Superior Court of New Jersey.
The 1999-2025 housing obligation as determined by the Superior
Court.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size for the applicable housing region.
A restricted unit that is affordable to a very-low-income
household.
A preference for very-low-, low- and moderate-income housing
that is permitted by law for people that have served in the military,
pursuant to Section 311.11(j) of the FHA, which allows for a municipality
to enter into an agreement with a developer to provide a preference
for affordable housing to low- and moderate-income veterans who served
in time of war or other emergency as defined in Section 1 of P.L.
1963, c. 171 (N.J.S.A. 54:4-8.10), of up to 50% of the affordable
units in a particular project. N.J.S.A. 52:27D-311.11(j).
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
[2]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
[3]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
[4]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
[5]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
(Ordinance 2024-2, adopted February 13, 2024, is readopted and
incorporated herein by reference).
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(1)
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that
the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the state licensing/funding
agency (i.e., DHS);
(2)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired
on October 16, 2016.
B.
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the court.
C.
The service provider for the alternative living arrangement shall
act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
A.
The Township of Hainesport shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Township's affordable housing program, including overseeing
the administration of affordability controls on affordable units,
and the affirmative marketing of available affordable units in accordance
with the Township's Affirmative Marketing Plan, fulfilling monitoring
and reporting, and supervising any contracted administrative agent.
The position of Municipal Housing Liaison for the Township was previously
established, which establishment is reiterated here. Compensation
shall be fixed by the governing body at the time of appointment of
the Municipal Housing Liaison. The Municipal Housing Liaison shall
be appointed by resolution of the governing body and may be a full-
or part-time municipal employee. The Municipal Housing Liaison shall
be approved by the Superior Court and shall be duly qualified through
a training program sponsored by Affordable Housing Professionals of
New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Hainesport,
including the following responsibilities which may not be contracted
out to the administrative agent:
(1)
Serving as Hainesport's primary point of contact for all inquiries
from the state, affordable housing providers, administrative agents
and interested households;
(2)
Monitoring the status of all restricted units in Hainesport's
Fair Share Plan;
(3)
Compiling, verifying, submitting, and posting all monitoring reports
as required by the court and by this chapter;
(4)
Coordinating meetings with affordable housing providers and administrative
agents, as needed; and
(5)
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing as often as needed.
C.
Administrative agent.
(1)
Subject to the approval of the Superior Court, the Township shall
designate one or more administrative agent(s) to administer and to
affirmatively market the affordable units constructed in the Township
in accordance with UHAC and this chapter. An operating manual for
each affordable housing program shall be provided by the administrative
agent(s) to be adopted by resolution of the Township Committee and
subject to approval of the Superior Court. The operating manual(s)
shall be available for public inspection in the office of the Township
Clerk, in the office of the Municipal Housing Liaison, and in the
office(s) of the administrative agent(s). The Municipal Housing Liaison
shall supervise the work of the administrative agent(s).
(2)
An administrative agent shall be an independent entity serving under
contract to and reporting to the municipality. The fees of the administrative
agent shall be paid by the owners of the affordable units for which
the services of the administrative agent are required. The administrative
agent shall perform the duties and responsibilities of an administrative
agent as set forth in UHAC, including those setforth in N.J.A.C. 5:80-26.14,
5:80-16 and 5:80-18 thereof, which includes:
(a)
Affirmative marketing.
[1]
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Township of Hainesport and the provisions of N.J.A.C. 5:80-26.15;
and
[2]
Notifying the following entities of the availability of affordable
housing units in the Township of Hainesport: Fair Share Housing Center,
Fair Share Housing Development, Camden County NAACP, The Latino Action
Network, Southern Burlington County NAACP, Burlington County Community
Action Program, and the Supportive Housing Association.
(b)
Household certification.
[1]
Soliciting, scheduling, conducting and following up on interviews
with interested households;
[2]
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a very-low-, low- or moderate-income unit;
[3]
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
[4]
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the owner or rental certificates set forth in Appendices J
and K of N.J.A.C. 5:80-26.1 et seq.;
[5]
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located
(Housing Region 5) comprising Burlington, Camden, and Gloucester Counties;
[6]
Employing the random selection process as provided in the affirmative
marketing plan of the Township of Hainesport when referring households
for certification to affordable units; and
[7]
Providing counseling or contracting to provide counseling services
to very-low-, low- and moderate-income applicants on subjects such
as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
(c)
Affordability controls.
[1]
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
[2]
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
[3]
Ensuring that the removal of the deed restrictions and cancellations
of the mortgage note are effectuated and properly filed with Burlington
County's Register of Deeds or County Clerk's office after
the termination of the affordability controls for each restricted
unit;
[4]
Communicating with lenders regarding foreclosures; and
[5]
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(d)
Resale and rental.
[1]
Instituting and maintaining an effective means of communicating
information between owners and the administrative agent regarding
the availability of restricted units for resale or rerental; and
[2]
Instituting and maintaining an effective means of communicating
information to very-low-, low- and moderate-income households regarding
the availability of restricted units for resale or rerental.
(e)
Processing requests from unit owners.
[1]
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
[2]
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air-conditioning
systems; and
[3]
Notifying the municipality of an owner's intent to sell
a restricted unit; and
[4]
Making determinations on requests by owners of restricted units
for hardship waivers.
(f)
Enforcement.
[1]
Securing annually from the Township a list of all for-sale affordable
housing units for which tax bills are mailed to absentee owners and
notifying all such owners that they must either move back to their
unit or sell it;
[2]
Securing from all developers and sponsors of restricted units,
at the earliest point of contract in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person other than a household duly certified to the unit by the
administrative agent;
[3]
The posting annually in all rental properties, including legal
two-family homes, of a notice as to the maximum permitted rent for
affordable units, together with the telephone number of the administrative
agent where complaints of excess rent or other charges can be made;
[4]
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
[5]
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
[6]
Creating and publishing a written operating manual for each
affordable housing program administered by the administrative agent,
to be approved by the Township Committee and the Court, setting forth
procedures for administering such affordability controls.
(g)
Additional responsibilities.
[1]
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities,
hereunder.
[2]
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
[3]
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
The developer of low- and moderate-income housing units shall
submit to the administrative agent a description of the mechanism
to be used to ensure that the required low- and moderate-income units
are sold or rented only to low- and moderate-income households for
a period of not less than 30 years. In addition to such description,
actual samples of language to be included in the nature of deeds,
leases or covenants shall be submitted.
A.
Set aside. For inclusionary projects in which very-low-, low- and
moderate-income units are to be offered for sale, the appropriate
set-aside percentage is 20%; for projects in which the very-low-,
low- and moderate-income units are to be offered for rent, the appropriate
set-aside percentage is 15%.
B.
Phasing. Inclusionary developments shall be subject to the following
schedule:
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
Percentage of Market Housing Units Completed
|
|---|---|
|
0%
|
25%
|
|
10%
|
25% + 1 unit
|
|
50%
|
50%
|
|
75%
|
75%
|
|
100%
|
90%
|
|
—
|
100%
|
C.
Fractional units. In the event the number of affordable housing units
to be provided includes a fraction, the number shall be rounded up
if the fractional amount is 0.5 or greater and rounded down if the
fractional amount is less than 0.5. For inclusionary projects, the
developer shall provide a payment in lieu of constructing affordable
units for the fraction of a unit less than 0.5. The payment in lieu
amount may be negotiated by the town with the developer and reflect
current and updated costs for the provision of an equal-value unit.
Any payment in lieu shall be included in an updated spending plan.
D.
Nothing in this chapter precludes the municipality from imposing
an affordable housing set-aside in accordance with applicable law
in a development not required to have a set-aside pursuant to this
chapter.
E.
Design:
(1)
Integration of affordable units. In inclusionary developments, to
the extent possible, very-low-, low- and moderate-income units shall
be integrated with the market units, and not situated so as to be
concentrated in separate building(s) or in separate area(s) or floor(s),
or in less desirable locations, than the other units in the development.
In buildings with multiple dwelling units, this shall mean that the
very-low-, low- and moderate-income units shall be generally distributed
within each building with market units.
(2)
In inclusionary developments, the residents of the affordable units
shall have full and equal access to all of the amenities, common areas,
and recreation areas and facilities as the residents of the market-rate
units.
(3)
In inclusionary developments, the very-low-, low- and moderate-income
units shall be no less than the largest minimum bedroom and unit square
footages required under the DCA Balanced Housing and HMFA Low Income
Housing Tax Credit program for bedroom sizes and unit sizes in affordable
units of the same bedroom number.
A.
Low/moderate split and bedroom distribution of affordable housing
units.
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units within each bedroom distribution
shall be very-low-income units (affordable to a household earning
30% or less of regional median income by household size). The very-low-income
units shall be counted as part of the required number of low-income
units within the development.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements.
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7 and the following.
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entrance way as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Township has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, each builder of income-restricted units shall deposit
funds into the Township's Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have not been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion of adaptable to accessible
entrances to the Construction Official of the Township.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Township's Affordable Housing Trust Fund in the
care of the Township Treasurer who shall ensure that the funds are
deposited into the Affordable Housing Trust Fund and appropriately
earmarked; and
(g)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C.
5:97-3.14.
C.
Income limits; maximum rents and sales prices.
(1)
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures as approved by the Court and detailed below:
(a)
Regional income limits shall be established for the region in
which the Township is located (in this case, Region 5) based on the
median income by household size, which shall be established by a regional
weighted average of the uncapped Section 8 income limits published
by HUD. To compute this regional income limit, the HUD determination
of median county income for a family of four is multiplied by the
estimated households within the county according to the most recent
decennial census. The resulting product for each county within the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial census in the Township's
housing region. This quotient represents the regional weighted average
of median income for a household of four. The income limit for a moderate-income
unit for a household of four shall be 80% of the regional weighted
average median income for a family of four. The income limit for a
low-income unit for a household of four shall be 50% of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income for a
family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than those for the
previous year.
(b)
The income limits are the result of applying the percentages set forth in Subsection C(1)(a) above to HUD's determination of median income for the current fiscal year, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection C(1)(a) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
(d)
In establishing sale prices and rents of affordable housing
units, the Township's administrative agent shall follow the procedures
set forth in UHAC, utilizing the regional income limits established
pursuant to the process defined above.
[1]
The resale prices of owner-occupied very-low-, low- and moderate-income
units may increase annually based on the percentage increase in the
regional median income limit for each housing region determined pursuant
to the above methodology. In no event shall the maximum resale price
established by the administrative agent be lower than the last recorded
purchase price.
[2]
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area, upon its
publication for the prior calendar year. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low income housing tax credits.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(3)
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units, provided that at least 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households earning no more than 30% of median income, which very-low-income
units shall be part of the low-income requirement.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units.
In achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type. Low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(5)
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, the
following standards shall be used:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial sales prices and rents for compliance
with affordability average requirements for restricted units in assisted
living facilities and age-restricted developments the following standards
shall be used:
(7)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the administrative agent be lower than the last
recorded purchase price.
(10)
The rent of very-low-, low- and moderate-income units may be increased
annually based on the permitted percentage increase in the Housing
Consumer Price Index for the United States. This increase shall not
exceed 9% in any one year. Rents for units constructed pursuant to
low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
Affordable units shall utilize the same type of heating source
as market units within the inclusionary development. Tenant-paid utilities
included in the utility allowance shall be set forth in the lease
and shall be consistent with the utility allowance approved by DCA
for its Housing Choice Voucher Program.
In referring certified households to specific restricted units,
the administrative agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income. Very-low-income
units shall be reserved for households with a gross household income
of less than 30% of median income.
B.
Notwithstanding the foregoing, the administrative agent may, upon
approval by the Township Committee, and in consultation with the Court's
Master and on notice to Fair Share Housing Center, permit a moderate-income
purchaser to buy a low-income unit if and only if the administrative
agent can demonstrate that there is an insufficient number of eligible
low-income purchasers in the housing region to permit prompt occupancy
of the unit and all other reasonable efforts to attract a low-income
purchaser, including pricing and financing incentives, have failed.
Any such low-income unit that is sold to a moderate-income household
shall retain the required pricing and pricing restrictions for a low-income
unit.
C.
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the administrative
agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
D.
The administrative agent shall certify a household as eligible for
a restricted ownership unit when the household is a very-low-income
household, low-income household or a moderate-income household, as
applicable to the unit, and the estimated monthly housing cost for
the particular unit (including principal, interest, taxes, homeowner's
and private mortgage insurance and condominium or homeowners'
association fees, as applicable) does not exceed 33% of the household's
certified monthly income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the administrative agent
for a determination, in writing, that the proposed indebtedness complies
with the provisions of this section, and the administrative agent
shall issue such determination prior to the owner incurring such indebtedness.
B.
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the administrative
agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit, and not included in the base price, may be made
a condition of the unit resale, provided the price, which shall be
subject to ten-year, straight-line depreciation, has been approved
by the administrative agent. Unless otherwise approved by the administrative
agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter for a period of at least 30 years, until the Township
of Hainesport takes action to release the unit from such requirements.
Prior to such action, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1 et seq., as may be amended
and supplemented.
B.
Deeds of all real property that includes restricted rental units
shall contain deed restriction language. The deed restriction shall
have priority over all mortgages on the property, and the deed restriction
shall be recorded by the developer or seller with the records office
of the County of Burlington. Said deed restriction shall be executed
in full, proof of which shall be provided to the Township's administrative
agent prior to the issuance of a certificate of occupancy for a unit.
A copy of the filed, recorded document shall be provided to the administrative
agent within 60 days of the receipt of a certificate of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the administrative agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the administrative agent.
C.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the administrative agent, to be applied to
the costs of administering the controls applicable to the unit as
set forth in this chapter.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of the regional
median income by household size.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
income by household size.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median income
by household size.
B.
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent and
the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its continuing ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents reliable third-party assistance from an outside
source, such as a family member, in a form acceptable to the administrative
agent and the owner of the unit.
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this article for a period of at least 30 years, until the Township
takes action to release the unit from such requirements; prior to
such action, a restricted ownership unit must remain subject to the
requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the administrative agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the administrative agent a recapture
note obligating the purchaser (as well as the purchaser's heirs,
successors and assigns) to repay, upon the first nonexempt sale after
the unit's release from the restrictions set forth in this chapter,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
E.
The affordability controls set forth in this article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
B.
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners' association fees and special
assessments paid by very-low-, low- and moderate-income purchasers
and those paid by market purchasers.
D.
The owners of restricted-ownership units may apply to the administrative
agent to increase the maximum sales prices for the unit on the basis
of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or addition of a bathroom.
All rental units, both market and affordable, shall not be subject
to any rent control ordinance which may be adopted in the Township
of Hainesport during the time period in which affordable housing price
controls are effective.
A.
The Township has adopted by resolution an Affirmative Marketing Plan
(AMP), subject to approval of the Court, that is compliant with N.J.A.C.
5:80-26.15 and the FHA, as may be amended and supplemented. This affirmative
marketing section shall apply to all developments that contain very-low-,
low- and moderate-income housing units. The AMP is on file in the
office of the Township Clerk and administrative agent.
B.
The AMP is a regional marketing strategy designed to attract buyers
and/or renters of all majority and minority groups, regardless of
race, creed, color, national origin, ancestry, marital or familial
status, sex, affectional or sexual orientation, disability, age or
number of children (unless units are age-restricted) to housing units
which are being marketed by a developer, sponsor or owner of affordable
housing. The AMP is intended to target those potentially eligible
persons who are least likely to apply for affordable units in the
region. The affirmative marketing plan is a continuing program that
directs marketing activities toward Housing Region 5, comprising the
counties Burlington, Camden and Gloucester and is required to be followed
throughout the period of restriction.
C.
The AMP shall provide a regional preference for all households that
live and/or work in Region 5.
D.
The Township shall add to the list of community and regional organizations
in its AMP, pursuant to N.J.A.C. 5:80-26.15(f)5, FSHC, the New Jersey
State Conference of the NAACP, the Latino Action Network, Southern
Burlington County NAACP, Burlington County Community Action Program,
Camden County NAACP, Supportive Housing Association and the New Jersey
Housing Resource Center, https://www.nj.gov/njhrc/, in accordance
with applicable law, and shall, as part of its regional affirmative
marketing strategies during its implementation of this plan, provide
notice to those organizations of all available affordable housing
units. The Township also agrees to require any other entities, including
developers or persons or companies retained to do affirmative marketing,
to comply with this subsection.
E.
The Township has the ultimate responsibility for adopting the AMP
and for its proper administration, including initial sale and rentals
and resales and rerentals. The administrative agent designated by
the Township of Hainesport shall implement the AMP to assure the affirmative
marketing of all affordable units.
F.
In implementing the AMP, the administrative agent shall provide a
list of counseling services to very-low-, low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
G.
The AMP shall describe the media to be used in advertising and publicizing
the availability of housing. In implementing the AMP, the administrative
agent shall consider the use of language translations where appropriate.
H.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
I.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request. The costs of advertising and affirmative marketing of
the affordable units shall be the responsibility of the developer,
sponsor or owner.
J.
In addition to other affirmative marketing strategies, the administrative
agent shall provide specific notice of the availability of affordable
housing units in Hainesport Township, and copies of the application
forms, to the following entities: Fair Share Housing Center, the New
Jersey State Conference of the NAACP, the Latino Action Network, Southern
Burlington County NAACP, Camden County NAACP, Burlington County Community
Action Program, the New Jersey Housing Resource Center, and the Supportive
Housing Association.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the Township
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a very-low-, low- or moderate-income unit and advising
the owner, developer or tenant of the penalties for such violations,
the municipality may take the following action(s) against the owner,
developer or tenant for any violation that remains uncured for a period
of 60 days after service of the written notice:
(1)
The Township may file a court action in Superior Court pursuant to
N.J.S.A. 2A:58-11 alleging a violation or violations of the regulations
governing the affordable housing unit. If the owner, developer or
tenant is adjudged by the Court to have violated any provision of
the regulations governing affordable housing units, the owner, developer
or tenant shall be subject to one or more of the following penalties,
at the discretion of the Superior Court:
(a)
A fine of not more than $1,000 per day or imprisonment for a
period not to exceed 90 days, or both, provided that each and every
day that the violation continues or exists shall be considered a separate
and specific violation of these provisions and not a continuation
of the initial offense;
(b)
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Township of Hainesport Affordable
Housing Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Superior Court.
(2)
The Township may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the first purchase money mortgage and
shall constitute a lien against the very-low-, low- or moderate-income
unit.
(a)
The judgment shall be enforceable, at the option of the Township,
by means of an execution sale by the sheriff, at which time the very-low-,
low- and moderate-income unit of the violating owner shall be sold
at a sale price which is not less than the amount necessary to fully
satisfy and pay off any first purchase money mortgage and prior liens
and the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have his
right to possession terminated as well as his title conveyed pursuant
to the sheriff's sale.
(b)
The proceeds of the sheriff's sale shall first be applied
to satisfy the first purchase money mortgage lien and any prior liens
upon the very-low-, low- and moderate-income unit. The excess, if
any, shall be applied to reimburse the Township for any and all costs
and expenses incurred in connection with either the court action resulting
in the judgment of violation or the sheriff's sale. In the event
that the proceeds from the sheriff's sale are insufficient to
reimburse the Township in full as aforesaid, the violating owner shall
be personally responsible for the full extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the Township for the owner and shall be held in
such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the Township,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(c)
Foreclosure by the Township due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the very-low-, low- and moderate-income unit. Title shall
be conveyed to the purchaser at the sheriff's sale, subject to
the restrictions and provisions of the regulations governing the affordable
housing unit. The owner determined to be in violation of the provisions
of this plan and from whom title and possession were taken by means
of the sheriff's sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the Township may acquire title to the very-low-, low-
and moderate-income unit by satisfying the first purchase money mortgage
and any prior liens and crediting the violating owner with an amount
equal to the difference between the first purchase money mortgage
and any prior liens and costs of the enforcement proceedings, including
legal fees and the maximum resale price for which the very-low-, low-
and moderate-income unit could have been sold under the terms of the
regulations governing affordable housing units. This excess shall
be treated in the same manner as the excess which would have been
realized from an actual sale as previously described.
(e)
Failure of the very-low-, low- and moderate-income unit to be
either sold at the sheriff's sale or acquired by the municipality
shall obligate the owner to accept an offer to purchase from any qualified
purchaser which may be referred to the owner by the municipality,
with such offer to purchase being equal to the maximum resale price
of the very-low-, low- and moderate-income unit as permitted by the
regulations governing affordable housing units.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed, in writing, with the Superior
Court.
The Township of Hainesport shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Court-approved Housing Element and Fair Share Plan:
A.
Beginning on July 13, 2024, and on every anniversary of that date
through July 1, 2025, the Township agrees to provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Committee on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Committee on Affordable
Housing (COAH), or Local Government Services (NJLGS). The reporting
shall include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
B.
Beginning on July 13, 2024, and on every anniversary of that date
through July 27, 2025, the Township agrees to provide annual reporting
of the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to Fair Share Housing Center, using forms previously developed
for this purpose by COAH or any other forms endorsed by the special
master and FSHC.
C.
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Township will not
be required to provide such review as it would be due in the next
Round.
D.
By August 13, 2026, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the Township will post on its municipal
website, with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
A.
Purpose.
(1)
In Holmdel Builder's Association v. Holmdel Township, 121 N.J.
550 (1990), the New Jersey Supreme Court determined that mandatory
development fees are authorized by the Fair Housing Act of 1985, N.J.S.A.
52:27D-301 et seq., and the State Constitution subject to the adoption
of Rules by the Council on Affordable Housing (COAH). The purpose
of this section is to establish standards for the collection, maintenance
and expenditure of development fees pursuant to the applicable state
rules and regulations. Fees collected pursuant to this section shall
be used for the sole purpose of providing, facilitating, monitoring,
and/or administering low- and moderate-income housing. This section
shall be interpreted within the framework of COAH's rules on
development fees.
(2)
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and
the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1
through 40:55D-87), COAH was authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that were under the jurisdiction of
the Council or court of competent jurisdiction and that are now before
a court of competent jurisdiction and have a Court-approved spending
plan may retain fees collected from nonresidential development.
(3)
This section establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
developed in response to P.L. 2008, c. 46, Sections 8 and 32-38 (N.J.S.A.
52:27D-329.2) and the Statewide Non-Residential Development Fee Act
(N.J.S.A. 40:55D-8.1 through 40:55D-8.7) Fees collected pursuant to
this section shall be used for the sole purpose of providing very-low-,
low-, and moderate-income housing. This section shall be interpreted
within the framework of COAH's rules on development fees, codified
at N.J.A.C. 5:97-8.
B.
AFFORDABLE HOUSING DEVELOPMENT
COAH or THE COUNCIL
DEVELOPER
DEVELOPMENT FEE
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
Definitions. As used in this section, the following terms shall have
the meanings indicated:
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable housing development.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Money paid by a developer for the improvement of property
as authorized by Holmdel Builder's Association v. Holmdel Township,
121 N.J. 550 (1990) and the Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et seq., and regulated by applicable COAH rules.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well- being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
C.
Residential development fees.
(1)
Imposed fees.
(a)
Residential dwelling units. In all zoning districts, all new
residential dwelling units shall pay a development fee of 1.5% of
the equalized assessed value of any new residential development, provided
no increased residential density is approved.
(b)
Increased dwelling unit density. When an increase in residential
density is approved pursuant to N.J.S.A. 40:55D-70d(5), developers
shall be required to pay a development fee of 6% of the equalized
assessed value for each additional unit that may be realized. However,
if the zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the base density for the
purposes of calculating the bonus development fee shall be the highest
density permitted by right during the two-year period preceding the
filing of the variance application.
Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the fees would equal 1.5%
of the equalized assessed value on the first two units, and 6% of
the equalized assessed value for the two additional units, provided
that zoning on the site has not changed during the two-year period
preceding the filing of such a variance application.
(2)
Eligible exactions, ineligible exactions, and exemptions for residential
development.
(a)
Affordable units. Affordable housing developments and/or developments
that produce affordable units shall be exempt from the payment of
development fees.
(b)
Previous approvals. Developments that have received preliminary
or final site plan approval prior to the adoption of this section,
and any preceding article permitting the collection of development
fees, shall be exempt from development fees, unless the developer
seeks a substantial change in the original approval. Where a site
plan approval does not apply, the issuance of a zoning and/or building
permit shall be synonymous with preliminary or final site plan approval
for the purpose of determining the right to an exemption. In all cases,
the applicable fee percentage shall be determined based upon the Development
Fee Ordinance in effect on the date that the construction permit is
issued.
(c)
Any repair, reconstruction, or improvement of a structure, the
cost of which is less than 50% of the market value of the structure
before the improvement or repair is started shall be exempt from the
payment of development fees. For purposes of this section, "market
value" shall mean the equalized assessed value of the existing improvement
as established by the Township Tax Assessor. The cost of the repair,
reconstruction, or improvements shall be determined by an itemized
construction cost estimate prepared and submitted to the Construction
Official. The estimate shall be signed and sealed by an architect
or professional engineer licensed by the State of New Jersey, or where
no such professionals are retained, signed by the contractor or the
homeowner. Where prepared by the homeowner or contractor, the Township
Engineer may review such estimates for accuracy. "Substantial improvement"
is considered to commence when the first alteration of any wall, floor,
or other structural part of the building commences, whether or not
the alteration affects the external dimensions of the structure. The
term does not, however, include either:
[1]
Any project for improvement of a structure to comply with existing
state or local building, fire, health, sanitary or safety code specifications
which are solely necessary to assure safe living conditions; or
[2]
Any alteration of a structure listed on the National Register
of Historic Places or a state inventory of historic places, but a
development fee shall be charged for any new dwelling constructed
as a replacement for a previously existing dwelling on the same lot
that was or will be demolished, unless the owner resided in the previous
dwelling for a period of one year or more prior to obtaining a demolition
permit. Where a development fee is charged for a replacement dwelling,
the development fee shall be calculated on the increase in the equalized
assessed value of the new structure as compared to the previous structure.
(d)
Structural alterations that do not increase gross floor area
of a building or structure or increase the equalized assessed value
of a property shall be exempted from paying a development fee.
(e)
Non-profit organizations identified at N.J.S.A. 40:55D-8.4(b).
(f)
The federal and municipal governments shall be exempted from
paying a development fee.
(g)
Homes replaced as a result of a disaster such as a fire or a
flood shall be exempt from the payment of a development fee. (This
exemption applies only for the owner of record at the time of the
fire, flood, or disaster.)
D.
Nonresidential development fees.
(1)
Imposed fees.
(a)
New construction. In all zoning districts, nonresidential developers
shall pay a fee equal to 2.5% of the equalized assessed value of the
land and improvements for all new nonresidential construction on an
unimproved lot or lots.
(b)
Expansion. Nonresidential developers shall pay a fee equal to
2.5% of the increase in equalized assessed value resulting from any
additions to existing structures to be used for nonresidential purposes.
(c)
Demolition and reconstruction. Nonresidential development fees
shall also be imposed and collected when an existing structure is
demolished and replaced. The development fee of 2.5% shall be calculated
on the difference between the equalized assessed value of the preexisting
land and improvement and the equalized assessed value of the newly
improved structure; at the time a final certificate of occupancy is
issued. If the calculation required under this section results in
a negative number, the nonresidential development fee shall be zero.
(2)
Eligible exactions, ineligible exactions, and exemptions for nonresidential
development fees.
(a)
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the 2.5% development fee, unless
otherwise exempted below.
(b)
Alterations; change in use. The fee of 2.5% shall not apply
to an increase in equalized assessed value resulting from alterations,
reconstruction, renovations, repairs, and changes in use within the
existing footprint.
(c)
Nonresidential developments shall be exempted from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to the Statewide Non-Residential Development Fee
Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), as specified in the
Form N-RDF "State of New Jersey Non-Residential Development Certification/Exemption."
Any exemption claimed by a developer shall be substantiated by that
developer.
(d)
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to the Statewide Non-Residential
Development Fee Act shall be subject to the fee at such time as the
basis for an exemption non longer applies, and shall make the payment
of the nonresidential development fee, in that event, within three
years after that event or after the issuance of the final certificate
of occupancy of the nonresidential development, whichever is later.
(e)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Township of Hainesport as a lien against
the real property of the owner.
(f)
Federal, state, county, and local governments of nonresidential
development shall be exempted from paying a development fee.
E.
Credit against fees. Pursuant to the provisions of N.J.S.A. 40:55D-8.6c,
whenever nonresidential development is situated on real property that
has been previously developed with a building, structure, or other
improvement, the nonresidential fee of 2.5% shall be credited with
an amount equal to the equalized assessed value of the land and improvements
on the property where the nonresidential development is situated,
as determined by the Tax Assessor of the municipality at the time
the redeveloper or owner, including any previous owners, sought approval
for a construction permit, including, but not limited to, demolition
permits pursuant to the State Uniform Construction Code, or approval
under the Municipal Land Use Law.[1] If the calculation required under this section results
in a negative number, the nonresidential development fee shall be
zero.
[1]
Editor's Note: See N.J.S.A. 40:55D-1 et seq.
F.
Collection of fees.
(1)
Upon the granting of a preliminary, final or other applicable approval
for a development, the approving authority or entity shall notify
or direct its staff to notify the Construction Official responsible
for the issuance of a construction permit.
(2)
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF "State of New Jersey Residential
Development Certification/Exemption" to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided by Form N-RDF. The Tax Assessor shall
verify exemptions and prepare estimated and final assessments as per
the instructions provided in Form N-RDF.
(3)
The Construction Official responsible for the issuance of a Construction
Permit shall notify the Township Tax Assessor of the issuance of the
first Construction Permit for a development which is subject to a
development fee.
(4)
Within 90 days of receipt of such notification, the Township Tax
Assessor shall prepare an estimate of the equalized assessed value
of the development based on the plans filed.
(5)
The Construction Official responsible for the issuance of a final
certificate of occupancy shall notify the Township Tax Assessor of
any and all requests for the scheduling of a final inspection on a
property which is subject to a development fee.
(6)
Within 10 business days of a request for the scheduling of a final
inspection, the Township Tax Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
associated with the development; calculate the development fee, and
thereafter notify the developer of the amount of the fee.
(7)
Should the Township of Hainesport fail to determine or notify the
developer of the amount of the development fee within 10 business
days of the request for final inspection, the developer may estimate
the amount due and pay that estimated amount consistent with the dispute
process set forth in Subsection b of Section 37 of P.L. 2008, c. 46
(N.J.S.A. 40:55D-8.6).
(8)
Fifty percent of the initially calculated development fee shall be
collected at the time of issuance of the construction permit. The
remaining portion shall be collected at the time of issuance of the
certificate of occupancy. The developer shall be responsible for paying
the difference between the fee calculated at the time of issuance
of the construction permit and that determined at the time of issuance
of the certificate of occupancy.
(9)
Appeal of development fees. A developer may challenge nonresidential
development fees imposed by filing a challenge with the Director of
the Division of Taxation. Pending a review and determination by the
Director, which shall be made within 45 days of receipt of the challenge,
collected fees shall be placed in an interest-bearing escrow account
by the Township of Hainesport. Appeals from a determination of the
Director may be made to the tax court in accordance with the provisions
of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq.,
within 90 days after the date of such determination. Interest earned
on amounts escrowed shall be credited to the prevailing party.
G.
Affordable Housing Trust Fund.
(1)
There is hereby created an interest-bearing affordable housing trust fund to be maintained by the Chief Financial Officer of the Township of Hainesport for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls. All development fees paid by developers pursuant to this section shall be deposited in this fund. No money shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by the Superior Court and is for the purposes outlined in § 44-24A above.
(2)
The following additional funds shall be deposited in the affordable
housing trust fund and shall at all times be identifiable by source
and amount:
(a)
Payments in lieu of on-site construction of a fraction of an
affordable unit, where permitted by ordinance or by agreement with
the Township of Hainesport;
(b)
Funds contributed by developers to make 10% if the adaptable
entrances in a townhouse or other multistory attached dwelling unit
development accessible;
(c)
Rental income from municipally operated units;
(d)
Repayments from affordable housing program loans;
(e)
Recapture funds;
(f)
Proceeds from the sale of affordable units; and
(g)
Any other funds collected in connection with Hainesport's
Affordable Housing Program.
(3)
Interest accrued in the affordable housing trust fund shall only
be used to fund eligible affordable housing activities approved by
the Court or a successor agency to COAH.
(4)
In the event of a failure by the Township of Hainesport to comply
with trust fund monitoring and reporting requirements or to submit
accurate monitoring reports; or a failure to comply with the conditions
of the judgment of compliance or a revocation of the judgment of compliance;
or a failure to implement the approved spending plan and to expend
funds within the applicable required time period as set forth in In
re Tp. of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (aff'd
442 N.J. Super. 563); or for other good cause demonstrating the unapproved
use(s) of funds, the Court may authorize the State of New Jersey,
Department of Community Affairs, Division of Local Government Services
(LGS), to direct the manner in which the funds in the affordable housing
trust fund shall be expended, provided that all such funds shall,
to the extent practicable, be utilized for affordable housing programs
within the Township of Hainesport, or, if not practicable, then within
the county or the Housing Region.
Any party may bring a motion before the Superior Court presenting
evidence of such condition(s), and the Court may, after considering
the evidence and providing the municipality a reasonable opportunity
to respond and/or to remedy the noncompliant condition(s), and upon
a finding of continuing and deliberate noncompliance, determine to
authorize LGS to direct the expenditure of funds in the trust fund
or impose such other remedies as may be reasonable and appropriate
to the circumstances.
H.
Use of funds.
(1)
The expenditure of all funds shall conform to a spending plan approved
by the Court or a successor agency to COAH. Money deposited in the
housing trust fund may be used for any activity approved by the court
or appropriate agency for the addressing of Hainesport Township's
low- and moderate-income housing obligation and may be set up as a
grant or revolving loan program. Such activities may include, but
are not necessarily limited to, housing rehabilitation; new construction
of affordable units and related costs; accessory apartments; a market
to affordable program; Regional Housing Partnership programs; conversion
of existing nonresidential buildings to create new affordable units;
green buildings strategies designed to be cost saving and in accordance
with accepted national or state standards; the purchase of land for
affordable housing; extensions and/or improvements of roads and infrastructure
to affordable housing sites; financial assistance designed to increase
affordability; improvement of land to be used for affordable housing;
administrative costs necessary to implement the Housing Element and
Fair Share Plan; and/or any other activity as permitted by the Court
and specified in the approved spending plan.
(2)
Funds shall not be expended to reimburse the Township of Hainesport
for past housing activities.
(3)
At least 30% of all development fees collected and interest earned
on such fees shall be used to provide affordability assistance to
low- and moderate-income households in affordable units included in
the municipal Fair Share Plan. One-third of the affordability assistance
portion of development fees collected shall be used to provide affordability
assistance to very-low-income households earning 30% or less of the
regional median income by household size for Housing Region 5, in
which Hainesport is located.
(a)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low interest loans, rental assistance,
assistance with homeowners association or condominium fees and special
assessments, and assistance with emergency repairs. The specific programs
to be used for affordability assistance shall be identified and described
within the spending plan.
(b)
Affordable assistance to households earning 30% or less of the
regional median income by household size may include buying down the
cost of low- or moderate- income units in the municipal Fair Share
Plan to make them affordable to very-low-income households. The specific
programs to be used for very-low-income affordability assistance shall
be identified and described within the spending plan.
(c)
Payments in lieu of constructing affordable housing units on
site, if permitted by ordinance or by agreement with the Township
of Hainesport, and funds from the sale of units with extinguished
controls shall be exempt from the affordability assistance requirement.
Notwithstanding the foregoing, Hainesport Township's Court-approved
spending plan recognizes that the municipality cannot meet the 30%
threshold set forth above.
(4)
The Township of Hainesport may contract with a private or public
entity to administer any part of its Housing Element and Fair Share
Plan, including its programs for affordability assistance, in accordance
with N.J.A.C. 5:96-18.
(5)
No more than 20% of all revenues collected from development fees
may be expended on administration including, but not limited to, salaries
and benefits for municipal employees or consultants' fees necessary
to develop or implement a new construction program, prepare a Housing
Element and Fair Share Plan, and/or administer an affirmative marketing
program or a rehabilitation program.
(a)
In the case of a rehabilitation program, the administrative
costs of the rehabilitation program shall be included as part of the
20% of collected development fees that may be expended on administration.
(b)
Administrative funds may be used for income qualifications of
households, monitoring the turnover of sale and rental units, and
compliance with the Court's monitoring requirements. Legal or
other fees related to litigation opposing affordable housing site
or related to securing or appealing a judgment from the Court are
not eligible uses of the affordable housing trust fund.
(6)
Court approval of Hainesport's spending plan constitutes a "commitment"
on the part of the Township of Hainesport for expenditure of funds
pursuant to N.J.S.A. 52:27D-329.2 and 52:27D-329.3, with the four-year
time period for expenditure designated pursuant to those provisions
to commence with the entry of a final judgment of repose in accordance
with the provisions of In re Tp. of Monroe, 442 N.J. Super. 565 (Law
Div. 2015) (aff'd 442 N.J. Super. 563).
Beginning on July 13, 2024, the Township of Hainesport shall
provide annual reporting of Affordable Housing Trust Fund activity
to the State of New Jersey, Department of Community Affairs, Council
on Affordable Housing or Local Government Services or other entity
designated by the State of New Jersey, with a copy provided to Fair
Share Housing Center and posted on the municipal website, using forms
developed for this purpose by the New Jersey Department of Community
Affairs, Council on Affordable Housing or Local Government Services.
The reporting shall include an accounting of all Affordable Housing
Trust Fund activity, including the sources and amounts of funds collected
and the amounts and purposes for which any funds have been expended.
Such reporting shall include an accounting of development fees collected
from residential and nonresidential developers, payments in lieu of
constructing affordable units on site (if permitted by ordinance or
by agreement with the Township), funds from the sale of units with
extinguished controls, barrier free escrow funds, rental income from
Township owned affordable housing units, repayments from affordable
housing programs, as well as an accounting of the expenditures of
revenues and implementation of the spending plan approved by the Court.
A.
The ability for the Township of Hainesport to impose, collect, and
expend development fees shall expire with the period covered by its
spending plan dated December 2023 and approved by the Court in its
February 2024 judgment of compliance unless the Township of Hainesport
has first filed an adopted Housing Element and Fair Share Plan with
the Court or with a designated state administrative agency, has petitioned
for a judgment of compliance from the Court or for substantive certification
or its equivalent from a state administrative agency authorized to
approve and administer municipal affordable housing compliance and
has received approval of its Development Fee Ordinance from the entity
that will be reviewing and approving the Housing Element and Fair
Share Plan.
B.
If the Township of Hainesport fails to renew its ability to impose
and collect development fees prior to the expiration of its judgment
of compliance, it may be subject to forfeiture of any or all funds
remaining within its affordable housing trust fund. Any funds so forfeited
shall be deposited into the "New Jersey Affordable Housing Trust Fund"
established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320).
C.
The Township shall not impose a residential development fee on a
development that received preliminary or final site plan approval
after the expiration of its judgment of compliance, nor shall the
Township of Hainesport retroactively impose a development fee on such
a development. The Township of Hainesport also shall not expend any
of its collected development fees after the expiration of its judgment
of compliance.
