[Amended 10-16-1991 by Ord. No. 1991-29; 12-1-1999 by Ord. No. 1999-28; 6-7-2006 by Ord. No. 2006-12]
A.
The Lopatcong Township Planning Board adopted the
Housing Element pursuant to the MLUL at N.J.S.A. 40:55D-1 et seq.
on December 6, 2005. A Fair Share Plan was prepared by George A. Ritter,
PP/AICP that is consistent with this Housing Element and which was
adopted by the Planning Board on December 6, 2005, and endorsed by
the governing body on December 7, 2005. This Fair Share Plan describes
the methods by which Lopatcong Township will address its fair share
obligation as determined by the Housing Element. This article implements
and incorporates that Fair Share Plan and addresses the requirements
of N.J.A.C. 5:94 et seq. Lopatcong Township annually files a monitoring
report with the Council delineating the status of its certified plan,
and this report is available to the public at Clerk's office of Lopatcong
Township and from the Council on Affordable Housing at PO Box 813,
Trenton, New Jersey 08625-0813.
B.
Lopatcong Township has determined that it will use the following programs to satisfy its affordable housing obligation: rehabilitation program, new construction, affordable accessory apartments program, alternative living arrangements and zoning. The specifics of these programs are outlined in § 243-81.1 of this article.
The fair share obligation in Lopatcong Township
consists of a three-unit rehabilitation obligation and a one-hundred-twenty-nine-unit
growth share obligation that represents one affordable unit for every
eight market rate residential units receiving a certificate of occupancy
subsequent to January 1, 2004, plus one affordable housing unit for
every 25 jobs created through the expansion or creation of nonresidential
development in accordance with the schedule determined by the New
Jersey Council on Affordable Housing (COAH).
As used in this article, the following terms
shall have the meanings indicated:
A restricted ownership unit that is part of a housing element
that received substantive certification from COAH pursuant to N.J.A.C.
5:93 before October 1, 2001.
The entity responsible for administering the affordability
controls of this article with respect to specific restricted units,
as designated pursuant to N.J.A.C. 5:80-26.14.
An average of the percentage of median income at which restricted
units in an affordable development are affordable to low- and moderate-income
households.
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
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.
A housing development, all or a portion of which consists
of restricted units.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.) and in, but not of,
the DCA.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
where the head of the household is a minimum age of either 62 years,
or 55 years and meets the provisions of the 42 U.S.C. §§ 3601
et seq., except that due to death, a remaining spouse of less than
55 years of age shall be permitted to continue to reside.
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 offer, at a minimum, one unfurnished room, a private bathroom,
a kitchenette and a lockable door on the unit entrance.
The Neighborhood Preservation Balanced Housing Program of
the DCA as set forth at N.J.S.A. 52:27D-320 and N.J.A.C. 5:43.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing in, but not of, the DCA,
established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.).
The State of New Jersey Department of Community Affairs.
Any one of three periods in time during which the Council
established municipal obligations to provide affordable housing and
the first round was from 1987-1993 and the second period was from
1993-1997 and the third is for 1999-2014.
The Housing Affordability Service, formerly known as the
"Affordable Housing Management Service," in the Department of Community
Affairs, Division of Housing.
A household with a total gross annual household income equal
to 50% or less of the median income.
A restricted unit that is affordable to a low-income household.
The median income by household size for an applicable county,
as adopted annually by COAH.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median income.
A restricted unit that is affordable to a moderate-income
household.
The Agency's Market Oriented Neighborhood Investment Program,
as it may be authorized from time to time by the Agency.
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.
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 affordable to a four-person household
with an income at or above 80% of the regional median as defined by
the Council's annually adopted income limits.
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,
but does not include a market-rate unit financed under UHORP or MONI.
The Agency's Urban Homeownership Recovery Program.
The following general guidelines apply to all
developments that contain proposed low- and moderate-income units,
as listed below, and any future developments that may occur: River
Bend Senior Citizen Housing, Clymer Village Family Housing, and Route
22 Regional Shopping Center.
A.
Rehabilitation. Lopatcong Township's rehabilitation
program is designed to renovate deficient housing units occupied by
low- and moderate-income households and after rehabilitation, these
units will comply with the New Jersey State Housing Code pursuant
to N.J.A.C. 5:28. Lopatcong Township has designated the Zoning Official
as the administrator of the rehabilitation program.
(1)
Both renter-occupied and owner-occupied units
are eligible for rehabilitation funds.
(2)
Both renter-occupied and owner-occupied units
must remain affordable to low- and moderate-income households for
a period of 10 years and for owner-occupied units this control period
will be enforced with lien and for renter-occupied units the control
period will be enforced with a deed restriction.
(3)
Lopatcong Township will dedicate a minimum of
$10,000 for units rehabilitated through this program.
(4)
Lopatcong Township has created a rehabilitation
manual for this rehabilitation program, which is available for inspection
in the Clerk's office.
B.
Zoning.
(1)
Lopatcong Township has adopted the following
land use ordinance(s) for all zones: Growth Share Ordinance.
(2)
These zones provide for a set-aside of affordable
housing of one unit of every eight market-rate residential units or
one unit for every 25 jobs created. Payment in lieu of construction
is an option for fractional units obligation. Payment in lieu of development
funds will be used within Lopatcong Township for the creation of affordable
housing units.
(3)
In zones where affordable housing units must
be built, as opposed to where there is an option to pay for units
instead of building, the following schedule shall be followed:
|
Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income
Units Completed
|
|---|---|
|
0%
|
0%
|
|
25% + 1
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
C.
New construction.
(1)
Bedroom distribution of affordable housing units:
(a)
The fair share obligation shall be divided equally
between low- and moderate-income households.
(b)
In each affordable development, at least 50%
of the restricted units within each bedroom distribution shall be
low-income units.
(c)
Affordable developments that are not age-restricted
shall be structured in conjunction with realistic market demands such
that:
[1]
The combined number of efficiency
and one-bedroom units is no greater than 20% of the total low- and
moderate-income units;
[2]
At least 30% of all low- and moderate-income
units are two-bedroom units;
[3]
At least 20% of all low- and moderate-income
units are three-bedroom units; and
[4]
The remainder may be allocated
at the discretion of the developer.
(d)
Age-restricted low- and moderate-income units
may utilize a modified bedroom distribution and at a minimum, the
number of bedrooms shall equal the number of age-restricted low- and
moderate-income units within the affordable development.
(2)
Accessible townhouse units. Ten percent of all
affordable townhouse units shall be accessible pursuant to N.J.A.C.
5:23-7.5(b) and (c) in the Barrier Free Sub Code N.J.A.C. 5:23-7.
D.
Accessory apartments.
(1)
Up to 10 accessory apartments may be used to
address Lopatcong Township's housing obligation. Accessory apartments
shall only be available to low-income households. The accessory apartment
program shall:
(a)
Provide at least $20,000 per unit to subsidize
the creation of the accessory apartment;
(b)
Demonstrate that there is water and sewer infrastructure
with sufficient capacity to serve the proposed accessory apartments;
(c)
Base the rent on the number of bedrooms in accordance
with N.J.A.C. 5:94-7;
(d)
Demonstrate that accessory apartments will be
affirmatively marketed, in accordance with N.J.A.C. 5:94-7;
(e)
Demonstrate capability to administer the program
in accordance with the Uniform Housing Affordability Controls, N.J.A.C.
5:80-26. The municipality shall designate an experienced employee
to administer the program or may enter into an agreement for a governmental
agency or private consultant to administer all or some of the program;
and
(f)
Demonstrate that the units will have the appropriate
controls on affordability in accordance with N.J.A.C. 5:94-4.19.
(2)
Accessory apartments shall be exempt from the
bedroom distribution requirements set forth in the Uniform Housing
Affordability Controls, N.J.A.C. 5:80-26.
(3)
Accessory apartments that are age-restricted
shall be included with the maximum number of units that may be age-restricted
pursuant to N.J.A.C. 5:94-4.19.
E.
Maximum rents and sales prices.
(1)
Lopatcong Township hereby establishes that the
maximum rent for affordable units within each affordable development
shall be affordable to households earning no more than 60% of median
income and the average rent for low- and moderate-income units shall
be affordable to households earning no more than 52% of median income.
(2)
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 10% of all low- and moderate-income units shall be affordable
to households earning no more than 35% of median income.
(3)
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 and in achieving this affordability average, moderate-income
ownership units must be available for at least three different prices
for each bedroom type, and low-income ownership units must be available
for at least two different prices for each bedroom type.
(4)
The provisions of this article shall not apply
to affordable developments financed under UHORP or MONI or to assisted-living
residences, which shall comply with applicable Agency policies, guidelines
and regulations.
F.
Utilities.
(1)
Affordable units shall utilize the same type
of heating source as market units within the affordable development.
(2)
Those tenant-paid utilities that are included
in the utility allowance shall be so stated in the lease and shall
be consistent with the utility allowance approved by DCA for its Section
8 program.
G.
Occupancy standards. Occupancy standards for affordable
housing units are pursuant to N.J.A.C. 5:80-26.4.
H.
Control periods for ownership units and enforcement
mechanisms. Control periods for ownership units are pursuant to N.J.A.C.
5:80-26.5, and each restricted ownership unit shall remain subject
to the requirements of this article until Lopatcong Township elects
to release the unit from such requirements pursuant to action taken
in compliance with N.J.A.C. 5:80-26.1, and prior to such an election,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1 for at least 30 years.
(1)
At the time of the first sale of the unit, the
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 requirements of this article,
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.
(2)
All conveyances of restricted ownership units
shall be made by deeds and restrictive covenants pursuant to N.J.A.C.
5:80-26.1 and each purchaser of a 95/5 unit, in addition, shall execute
a note and mortgage, incorporated herein by reference.
(3)
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.
I.
Price restrictions for ownership units and resale
prices. Price restrictions for ownership units are pursuant to N.J.A.C.
5:80-26.1, including;
(1)
The initial purchase price for a restricted
ownership unit shall be approved by the administrative agent. The
initial purchase price for all restricted ownership units except those
financed under UHORP or MONI shall be calculated so that the monthly
carrying costs 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 homeowner association fees do not exceed
28% of the eligible monthly income of an appropriate household size
as determined under N.J.A.C. 5:80-26.4; provided, however, that the
price shall be subject to the affordability average requirement of
N.J.A.C. 5:80 26.3.
(2)
The initial purchase price of a restricted ownership
unit financed under UHORP or MONI unit shall be calculated so that
the monthly carrying costs of the unit, including principal and interest
(based on a mortgage loan equal to 95% of the purchase price and the
Federal Reserve HR15 rate of interest), taxes, homeowner and private
mortgage insurance and condominium or homeowner association fees do
not exceed 28% of the eligible monthly income of a household whose
income does not exceed 45% of median income, in the case of a low-income
unit, or 72% of median income, in the case of a moderate-income unit,
and that is of an appropriate household size as determined under N.J.A.C.
5:80-26.4.
(3)
The administrative agent shall approve all resale
prices, in writing and in advance of the resale, to assure compliance
with the foregoing standards.
(4)
The master deeds of affordable developments
shall provide no distinction between the condominium or homeowner
association fees and special assessments paid by low- and moderate-income
purchasers and those paid by market purchasers, although condominium
units subject to a municipal ordinance adopted before October 1, 2001,
which provides for condominium or homeowner association fees and/or
assessments different from those provided for in this subsection shall
have such fees and assessments governed by said ordinance.
(5)
The owners of ownership units may apply to the
administrative agent to increase the maximum sales price for the unit
on the basis of capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or that adds an additional bathroom.
J.
Buyer income eligibility. Buyer income eligibility
for ownership units is pursuant to N.J.A.C. 5:80-26.1, 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.
(1)
The administrative agent shall certify a household
as eligible for a restricted ownership unit when the household is
a low-income household or a moderate-income household, as applicable
to the unit, and the estimated monthly housing cost for the unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees as applicable) does
not exceed 33% of the household's eligible monthly income.
(2)
A restricted ownership unit shall be required
to obtain a continuing certificate of occupancy or a certified statement
from the Municipal Building Inspector stating that the unit meets
all code standards upon the first transfer of title that follows the
expiration of the applicable minimum control period provided under
N.J.A.C. 5:80-26.5(a).
K.
Rental units control period. Each restricted rental
unit shall remain subject to the requirements of this article until
Lopatcong Township elects to release the unit from such requirements;
however, prior to such a municipal election, a restricted rental unit
must remain subject to the requirements of this article for a period
of at least 30 years.
(1)
Deeds of all real property that include 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 filed by the developer or seller with the records
office of the county, and a copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(2)
A restricted rental unit shall remain subject
to the affordability controls of this article, despite the occurrence
of any of the following events:
L.
Price restrictions for rental units and rent increase;
leases. The initial rent for a restricted rental unit shall be approved
by the administrative agent and shall be calculated so as not to exceed
30% of the eligible monthly income of the appropriate household size
as determined under N.J.A.C. 5:80-26.4; provided, however, that the
rent shall be subject to the affordability average requirement of
N.J.A.C. 5:80-26.3.
(1)
Rents may be increased annually based on the
Housing Consumer Price Index for the United States, and these figures
are published annually by COAH. Rents may not be increased more than
once a year.
(2)
A written lease is required for all restricted
rental units, except for units in an assisted-living residence, and
tenants are responsible for security deposits and the full amount
of the rent as stated on the lease.
(3)
No additional fees or charges may be added to
the approved rent (except, in the case of units in an assisted living
residence, for the customary charges for food and services) without
the express written approval of the administrative agent and application
fees (including the charge for any credit check) may not exceed 5%
of the monthly rental of the applicable restricted unit and shall
be payable to the administrative agent to be applied to the costs
of administering the controls in this article as applicable to the
unit.
M.
Tenant income eligibility pursuant to N.J.A.C. 5:80-26.1.
N.
Administrative agent for Lopatcong Township's affordable
housing units. The affordability controls set forth in this article
shall be administered and enforced by the administrative agent. The
primary responsibility of the administrative gent shall be to ensure
that the restricted units under administration are sold or rented,
as applicable, only to low-and moderate-income households.
(1)
The administrative agent shall create and shall
publish in plain English, and in such other languages as may be appropriate
to serving its client base, a written operating manual, as approved
by COAH, setting forth procedures for administering such affordability
controls, including procedures for long-term control of restricted
units; for enforcing the covenants of N.J.A.C. 5:80-26.18 and for
releasing restricted units promptly at the conclusion of applicable
control periods. The administrative agent shall have authority to
take all actions necessary and appropriate to carrying out its responsibilities
hereunder. The operating manual shall have a separate and distinct
chapter or section setting forth the process for identifying applicant
households seeking certification to restricted units, for reviewing
applicant household eligibility, and for certifying applicant households
in accordance with the household certification and referral requirements
set forth in N.J.A.C. 5:80-26.16.
(2)
The administrative agent shall establish and
maintain a ready database of applicant households as a referral source
for certifications to restricted units, and shall establish written
procedures to ensure that selection among applicant households be
via the database, and in accordance with a uniformly applied random
selection process and all applicable state and federal laws relating
to the confidentiality of applicant records.
(3)
Except in the case of restricted units receiving
UHORP or MONI funding, the municipality in which restricted units
are located shall select one or more administrative agents for those
units. A municipality itself (through a designated municipal employee,
department, board, agency or committee) may elect to serve as the
administrative agent for some or all restricted units in the municipality,
or the municipality may select HAS or an experienced private entity
approved by the Division, the Agency or COAH to serve as administrative
agent for some or all restricted units in the municipality. The foregoing
approval by COAH or the Division is to be based on the private entity's
demonstration of the ability to provide a continuing administrative
responsibility for the length of the control period for the restricted
units. The Agency shall select the administrative agents for restricted
units receiving UHORP or MONI funding.
(4)
The administrative agent shall have the authority
to discharge and release any or all instruments, as set forth in the
appendices of this article, filed of record to establish affordability
controls.
O.
Affirmative marketing. The affirmative marketing plan
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, gender,
affectional or sexual orientation, disability, age or number of children
to housing units which are being marketed by a developer or sponsor
of affordable housing. The affirmative marketing plan is also intended
to target those potentially eligible persons who are least likely
to apply for affordable units in that region. It is a continuing program
that directs all marketing activities toward the COAH housing region
in which the municipality is located and covers the period of deed
restriction.
(1)
The administrative agent shall assure the affirmative
marketing of affordable units.
(2)
If the municipality does not designate a municipal
staff person, it shall contract with other experienced administrative
agents approved by COAH to administer the affirmative marketing plan.
Where a municipality contracts with another administrative agent to
administer the affirmative marketing plan, the municipality shall
appoint a housing officer who shall supervise the contracting administrative
agent. In addition, where the contracting administrative agent is
not responsible for the entire affirmative marketing plan, the municipality
shall outline who or what municipal agent is responsible for the remaining
portion of the affirmative marketing plan. The municipality has the
ultimate responsibility for the proper administration of the affirmative
marketing program, including initial sales and rentals and resales
and re-rentals.
(3)
In implementing the affirmative marketing plan,
administrative agents shall designate an experienced staff person
approved by COAH to provide counseling services to low and moderate
income applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
(4)
The affirmative marketing plan shall describe
the media to be used in advertising and publicizing the availability
of housing. In developing the plan, the administrative agent shall
consider the use of language translations.
(5)
The affirmative marketing process for available
affordable units shall begin at least four months prior to expected
occupancy.
(6)
Applications for affordable housing shall be
available in several locations, including, at a minimum, the county
administrative building and/or the county library for each county
within the housing region; the municipal administrative building(s)
and the municipal library in the municipality in which the units are
located; and the developer's sales office. Applications shall be mailed
to prospective applicants upon request.
(7)
COAH shall review and assess the effectiveness
of Lopatcong Township's affirmative marketing program.
P.
Household certification and referral; related project
information. No household may be referred to a restricted unit, or
may receive a commitment with respect to a restricted unit, unless
that household has received a signed and dated certification and has
executed a certificate.
(1)
The sources of income considered by the administrative
agent shall be the types of regular income reported to the Internal
Revenue Service and which can be used for mortgage loan approval.
(2)
If the applicant household owns a primary residence
with no mortgage on the property valued at or above the regional asset
limit as published annually by COAH, a certificate of eligibility
shall be denied unless the applicant's existing monthly housing costs
exceed 38% of the household's eligible monthly income.
(3)
The administrative agent shall employ a random
selection process when referring households for certification to affordable
units.
A.
By accepting state funds for affordable housing purposes,
or by submitting to the jurisdiction of COAH, a municipality shall
be deemed to have delegated to its administrative agent the day-to-day
responsibility for implementing practices and procedures designed
to ensure effective compliance with the controls set forth in this
article. The municipality, however, shall retain the ultimate responsibility
for ensuring effective compliance with this article.
B.
Administrative agent practices and procedures shall
include, but shall not necessarily be limited to, the following:
(1)
Securing from all developers and sponsors of
restricted units, at the earliest point of contact 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.
(2)
Requiring that all certified applicants for
restricted units execute a certificate substantially in the form,
as applicable, of either the ownership or rental certificates.
(3)
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made.
(4)
That, if the unit is owner-occupied, the unit
may be resold only to a household that has been approved in advance
and in writing by the administrative agent.
(5)
That no sale of the unit shall be lawful, unless
approved in advance and in writing by the administrative agent, and
that no sale shall be for a consideration greater than regulated maximum
permitted resale price, as determined by the administrative agent.
(6)
That no refinancing, equity loan, secured letter
of credit, or any other mortgage obligation or other debt secured
by the unit may be incurred except as approved in advance and in writing
by the administrative agent, and that at no time will the administrative
agent approve any debt, if incurring the debt would make the total
of all such debt exceed 95% of the then-applicable maximum permitted
resale price.
(7)
That the owner of the unit shall at all times
maintain the unit as his or her principal place of residence, which
shall be defined as residing at the unit at least 260 days out of
each calendar year.
(8)
That, except as set forth in N.J.A.C. 5:80-26.18(c)4vii,
at no time shall the owner of the unit lease or rent the unit to any
person or persons, except on a short-term hardship basis, as approved
in advance and in writing by the administrative agent.
(9)
That the maximum permitted rent chargeable to
affordable tenants is as stated in the notice required to be posted
in accordance with N.J.A.C. 5:80-26.18(d)3 of this article, a copy
of which shall be enclosed, and that copies of all leases for affordable
rental units must be submitted annually to the administrative agent.
(10)
Banks and other lending institutions are prohibited
from issuing any loan secured by owner-occupied real property subject
to the affordability controls set forth in this article, if such loan
would be in excess of amounts permitted by the restriction documents
recorded in the deed or mortgage book in the county in which the property
is located.
Appeals from all decisions of an administrative
agent appointed pursuant to this article shall be filed in writing
with the Executive Director of the Agency.
