[Added 12-13-2011 by Ord. No. 3957]
A. 
There is established a down payment and/or closing cost affordability assistance program, funded by developer fees, payable only from the Township Housing Trust Fund and administered through the Township of Franklin affordable housing program, for purchasers who seek to purchase low- or moderate-income condominium units as part of said program. Prospective homeowners will not receive direct funds. The assistance dollars will be supplied to the appropriate entity/entities.
(1) 
Purchasers seeking down payment and/or closing cost assistance through this program must make application to the administrative agent. This is a grant program. The maximum amount of any grant shall be $20,000. Approval of any grant shall also be subject to certification by the Township Housing Liaison and Chief Financial Officer that funds are available from the Township's housing trust fund for this grant.
(2) 
Qualification and eligibility for this program:
(a) 
Individuals/households must make an application with the administrative agent and be precertified, meaning that applicant demonstrates to the reasonable satisfaction of the administrative agent that there is a very high likelihood that with the receipt of the grant provided herein the applicant will be able to pay all of the required expenses related to owning their affordable home.
(b) 
Individuals/households will only be awarded a grant after they have contracted to purchase an affordable unit and the attorney review process has been completed.
(c) 
Qualified individuals/households must have incomes not exceeding low or moderate income guidelines as applicable for Somerset County per the New Jersey Fair Housing Act.
(d) 
The home/unit to be purchased must meet HUD housing quality standards as evidenced by a professional and written home-inspection report.
(e) 
Applicants must be deemed credit worthy by the administrative agent, and the amount of the mortgage principal shall not exceed three times the applicant's gross annual income.
(f) 
All grant recipients must occupy the property as their principal residence and own no other real estate.
(g) 
All grant recipients must have attended a prepurchase homebuyer education class administered by the administrative agent prior to signing a contract of sale or receive a certificate by meeting face-to-face for at least three hours of one-on-one prepurchase counseling with a counselor of the administrative agent.
(h) 
Funds will be made available at closing to the appropriate attorney trust account.
(i) 
At no time will any individuals/households be allowed to receive funding approval under any of the local affordability assistance programs more than once in a five-year time frame.
A. 
Homeowners that may be in arrears with their mortgage, sewer/water, real estate taxes, and/or association fees may apply for the homeowner affordability assistance program, funded by developer fees and payable only from the Township housing trust fund and administered through the Township of Franklin affordable housing program, for low- and moderate-income households owning units as part of said program.
(1) 
Qualification and eligibility for this program:
(a) 
Any low- or moderate-income households, as defined by New Jersey Fair Housing Act for Somerset County, paying as part of their shelter costs mortgage, sewer/water, real estate taxes or homeowners' association (condominium) fees (collectively defined as "shelter costs"), who are in arrears are eligible to apply for the program.
(b) 
On application for homeowner affordability assistance, the administrative agent will determine whether or not the given household is spending more than 30% of its gross income for shelter costs. This program is not available to households spending less than 30% of their gross income for shelter costs.
(c) 
If the aforementioned shelter costs, by paying off the arrearages, would allow the household to spend between 30% and 40% of gross income on shelter costs, then the household may request affordability assistance in the form of a deferred loan to assist the affordable homeowner in becoming current with their Shelter expenses.
(d) 
The eligible household shall then submit to the office of the administrative agent income and expense information concerning the household's shelter costs. The administrative agent, with the assistance of the Township of Franklin will evaluate the request for the above-referenced loan for a maximum amount not to exceed $15,000.
(e) 
After review and approval by the administrative agent and Township of Franklin Municipal Housing Liaison and subject to the availability of funding through the Township's affordable housing program for this form of affordability assistance, the Township of Franklin may approve a loan to assist with the payment of the aforementioned shelter costs. Approval shall only be granted to applicants who demonstrate to the reasonable satisfaction of the administrative agent and the Township of Franklin that there is a very high likelihood that with the receipt of the affordability assistance provided herein that the applicant will be able to stay current with their shelter costs in the future. If denied, a written determination of why the funding assistance has been denied will be provided by the administrative agent. This determination shall be final and nonappealable.
(f) 
The homeowner affordability assistance program is a deferred payment loan, with the loan amount (and no interest) to be repaid either upon the sale of the unit (if less than five years) or it is forgiven upon the expiration of five years from the date of the execution of the second mortgage, whichever comes first. Recapture of Township of Franklin assistance funds provided herein will occur if the property is sold within five years of the date of the loan. If the affordable unit is sold during the five-year recapture period, 20% of the funds are forgiven for each full year after the loan closing. In such cases, the Township of Franklin shall receive a pro rata portion of the assistance amount from the Borrower, which amount shall be deposited in the Township's Housing Trust Fund.
(g) 
Loans for all properties participating in the homeowner affordability assistance program shall be secured through a mortgage and mortgage note executed by the property owner in favor of the Township of Franklin.
(h) 
Further, approval of any loan shall also be subject to certification by the Township Housing Liaison and Chief Financial Officer that funds are available for this form of affordability assistance.
(i) 
The administrative agent will record said documents with the County Clerk's office. A copy of the information will be kept in the unit file.
(j) 
At no time will any individuals/households be allowed to receive funding approval under any of the local affordability assistance programs more than once in a five year time frame.