A.
This section of the Borough Code sets forth regulations regarding
the low- and moderate-income housing units in the Borough consistent
with the provisions known as the "Substantive Rules of the New Jersey
Council on Affordable Housing," N.J.A.C. 5:93 et seq.,[1] as amended and supplemented, the Uniform Housing Affordability
Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., as amended and supplemented,
except where modified by the requirements for very-low-income housing
as established in P.L. 2008, c. 46 (the "Roberts Bill," codified at
N.J.S.A. 52:27D-329.1) as reflected in the terms of a settlement agreement
between the Borough and Fair Share Housing Center ("FSHC") such that
the statutory requirement to provide very-low-income units equal to
13% of affordable units approved and constructed after July 17, 2008,
to be affordable to households at 30% of the regional median income,
overrides the UHAC requirement that 10% of all low- and moderate-income
units must be affordable at 35% of the regional median income, and
the Borough's constitutional obligation to provide a fair share
of affordable housing for low- and moderate-income households.
[1]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
B.
This chapter is intended to assure 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 these units. This chapter shall apply to all inclusionary
developments and 100% affordable developments (including those funded
with low-income housing tax credit financing) except where inconsistent
with applicable law.
C.
The Maywood Borough Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. The Plan has also been endorsed by the Borough Council
of the Borough of Maywood. The Fair Share Plan describes the ways
the Borough shall address its fair share for low- and moderate-income
housing as determined by the Superior Court and documented in the
Housing Element.
D.
E.
Beginning on October 18, 2022, and on every anniversary of that date
through July 1, 2025, the Borough agrees to provide an 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 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.
F.
Beginning on October 18, 2022, and on every anniversary of that date
through July 27, 2025, the Borough will 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 all parties to the Borough's Court-approved settlement
agreements, using forms previously developed for this purpose by the
Council on Affordable Housing or any other forms endorsed by the Special
Master and FSHC.
G.
The Fair Housing Act includes two provisions regarding action to
be taken by the Borough during the period of protection provided in
the Borough's Court-approved agreement with FSHC. The Borough
agrees to comply with those provisions as follows:
(1)
By July 1, 2022, the Borough must prepare a midpoint realistic opportunity
review, as required pursuant to N.J.S.A. 52:27D-313, which the Borough
will post on its municipal website, with a copy provided to FSHC,
a status report as to its implementation of its Plan and an analysis
of whether any unbuilt sites or unfulfilled mechanisms continue to
present a realistic opportunity. Such posting shall invite any interested
party to submit comments to the municipality, with a copy to FSHC,
regarding whether any sites no longer present a realistic opportunity
and should be replaced and whether any mechanisms to meet unmet need
should be revised or supplemented. Any interested party may by motion
request a hearing before the Court regarding these issues. In the
event the Court determines that a site or mechanism no longer presents
a realistic opportunity and should be replaced or supplemented, then
the municipality shall have the opportunity to supplement or revise
its plan to correct any deficiency.
(2)
Within 30 days of October 18, 2022, and every third year thereafter,
the Borough shall prepare a review of compliance with the very-low-income
housing requirements required by N.J.S.A. 52:27D-329.1 and its Court-approved
settlement agreement with FSHC. The Borough 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 the family very-low-income
requirements referenced herein and in the Borough's settlement
agreement with FSHC. 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 obligation.
As used herein the following terms shall have the following
meanings:
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.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:91, N.J.A.C. 5:93
and N.J.A.C. 5:80-26.1 et seq.[1]
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 restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:93-7.4;[2] 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 the Housing Element and Fair Share
Plan or otherwise intended to address the Borough's fair share
obligation, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:93,[3] 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 established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure 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 low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of,
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.).
The New Jersey Council on Affordable Housing established
under the Fair Housing Act.
The State of New Jersey Department of Community Affairs.
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.
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 to 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.
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Borough 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. 5:93-5.[4]
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 portion of the Borough's Master Plan, required by
the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the
Act, that includes the information required by N.J.A.C. 5:93-5.1[5] and establishes the Borough's fair share obligation.
A development containing both affordable units and market
rate units. 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.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
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 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 NJ Superior 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.
A restricted unit that is affordable to a moderate-income
household.
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 in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by adopted/approved 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 UHORP or MONI.
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 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.
A restricted unit that is affordable to a very-low-income
household.
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 purposes of a rehabilitation
program.
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).
A.
The provisions of this chapter shall apply to all affordable housing
units that currently exist and that are proposed to be created within
the Borough of Maywood pursuant to the Borough's most recently
adopted Housing Element and Fair Share Plan.
B.
Moreover, this chapter shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units and including any developments funded with low-income housing
tax credits.
C.
For inclusionary projects in which the low and moderate units are
to be offered for sale, the appropriate set-aside percentage is 20%;
for projects in which the low- and moderate-income units are to be
offered for rent, the appropriate set-aside percentage is 15%.
A.
Except as otherwise regulated in this chapter, any multifamily residential
development or redevelopment application in any zoning district proposing
five or more new dwelling units will be required, in the case of for-sale
projects, to set aside 20% of these units for affordable housing,
and, in the case of rental projects, to set aside 15% of these units
for affordable to low-and -moderate-income households.
B.
This requirement applies to all new multifamily residential developments
of five or more units that become permissible through either a use
variance, a density variance increasing the permissible density at
the site, a rezoning permitting multifamily residential housing where
not previously permitted, or the adoption of a new or amended redevelopment
plan or rehabilitation plan.
C.
All subdivision and site plan approvals of qualifying developments
shall be conditioned upon compliance with the provisions of the mandatory
affordable housing set-aside.
D.
This requirement does not apply to residential expansions, additions,
renovations, replacements, or any other type of residential development
that does not result in a net increase of five or more in the number
of dwellings.
E.
This requirement does not give a developer the right to any rezoning,
variance, or other relief, or establish any obligation on the part
of the Borough to grant any rezoning, variance, or other relief. Property
may not be permitted to be subdivided so as to avoid compliance with
the requirements of this section.
F.
All affordable housing units built as required by this section will comply with the requirements of this Chapter 211 and any other applicable provision of the Maywood Municipal Code relating to affordable housing, and shall fully comply with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1 et seq. ("UHAC"), including but not limited to the required bedroom and income distribution, with the sole exception that for inclusionary projects with more than four affordable units at least 13% of the affordable units shall be required to be restricted for very-low-income households earning 30% or less of the median income pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301 et seq. ("FHA").
G.
At least 50% of the affordable units within each bedroom distribution
shall be affordable to low-income households, inclusive of the at
least 13% of units affordable to very-low-income households for inclusionary
projects with more than four affordable units.
H.
The very-low-income affordable units shall be proportionately distributed
within each bedroom distribution. In a family non-age-restricted development,
at no time shall the number of efficiency/one-bedroom very-low-income
units exceed the number of three-bedroom very-low-income units.
I.
Affordable units shall be integrated with the market-rate units on-site,
and the affordable units shall not be concentrated in separate building(s)
or in separate area(s) or floor(s) from the market-rate units. In
buildings with multiple dwelling units, this shall mean that the affordable
units shall be generally distributed within each building with market-rate
units. The affordable units shall also be of the same type as the
market-rate units (e.g., if the market-rate units are non-age-restricted
family units, the affordable units shall be non-age-restricted family
units as well). 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.
J.
Affordable units shall be subject to affordability controls of at
least 30 years from the date of initial occupancy and affordable deed
restrictions as otherwise provided for by UHAC, with the sole exception
that very low income shall be defined as at or below 30% of median
income pursuant to the Fair Housing Act, and the affordability controls
shall remain unless and until the municipality, in its sole discretion,
takes action to extend or release the unit from such controls after
at least 30 years. In the event the municipality chooses to release
the controls on rental affordable units after at least 30 years, the
controls shall remain in effect until the voluntary departure of the
occupant household in accordance with N.J.A.C. 5:80-26.11(b).
L.
Affordable units shall be affirmatively marketed in accordance with
UHAC and applicable law. The affirmative marketing shall include posting
of all affordable units on the New Jersey Housing Resource Center
website in accordance with applicable law.
M.
No developer may make a payment in lieu of constructing affordable units on-site, except for fractional units as noted in Subsection O, below.
N.
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.
O.
In the event that the inclusionary set-aside percentage (15% or 20%)
of the total number of residential units does not result in a full
integer, the developer may choose one of two options of addressing
the fractional unit:
(1)
The developer shall round the set-aside upward to construct a whole
additional affordable unit; or
(2)
If the set-aside includes a fractional unit equal to 0.49 or less,
the developer may round the set-aside downward and construct the lesser
whole number of affordable units but must also make a payment in lieu
of constructing the fractional additional unit ("fractional payment-in-lieu").
(3)
For example: If seven total units are developed at an inclusionary
site, a 20% set-aside would require 1.4 affordable units. Per the
requirements above:
The following requirements shall apply to all new or planned
developments that contain low- and moderate-income housing units.
A.
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units whether developed in a
single-phase development or in a multiphase development:
|
Maximum Percentage of Market Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25%
|
0%
|
|
25% + 1 unit
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
B.
Each unit of affordable housing shall require a certificate of occupancy,
which shall become void upon a change of owner or tenant.
D.
The facade of an affordable housing dwelling shall be indistinguishable
from those of market units in terms of the use of exterior materials,
windows, doors, reveal, roof pitch, color, or other material. Affordable
housing units shall be fully integrated with market rate housing to
the greatest extent feasible and shall have access to open space and
site amenities comparable to that of market rate units, unless otherwise
approved by the Municipal Housing Liaison.
E.
For inclusionary developments with a single housing type, the affordable
housing units shall have the same tenure as the market housing units.
F.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units,
and not situated so as to be in less desirable locations than the
other units in the development. This shall mean that low- and moderate-income
units shall not be concentrated in separate building(s) or in separate
area(s) from the market-rate units. In buildings with multiple dwelling
units, this shall mean that the low- and moderate-income units shall
be generally distributed within each building with market units. The
residents of the low- and moderate-income 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.
G.
In inclusionary developments, very-low-, low- and moderate-income
residents shall have and enjoy access equal to the market units to
all common open space(s) and elements, amenities, public facilities,
shopping facilities, and public transportation than the market units.
H.
In inclusionary developments, the low- and moderate-income units
shall be of the same average square footage and design as market-rate
units of the same bedroom size.
I.
Fractional payments-in-lieu. The standards for the collection of
fractional payments in lieu of constructing affordable units shall
be in accordance with the requirements below:
(1)
The base dollar amount of the fractional payment in lieu of constructing
an affordable unit at the time of adoption of this chapter shall be
$180,267. This amount shall be adjusted periodically by the Borough
to reflect the most current and accurate market conditions or better
cover the cost to the Borough to subsidize affordable housing construction.
The payment shall be imposed as a condition of development approval
by the Joint Land Use Board.
(2)
During the development approval process, a developer may demonstrate to the governing body that the actual construction cost of an affordable unit less estimated capitalized revenue at the development in question is lower than the imposed payment in-lieu in § 211-5I(1). At its discretion, the governing body may impose a lower payment-in-lieu amount equal or proximate to the amount estimated by the developer.
J.
Utilities.
(1)
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
(2)
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 HUD for the Section 8 program.
K.
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 the 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.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
L.
Accessibility requirements.
(1)
The first floor of all new 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;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(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
(e)
If not all of the foregoing requirements in Subsection L(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms in Subsection L(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway 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 Borough 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, the builder of restricted units shall deposit funds
within the Borough of Maywood's Affordable Housing Trust Fund
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection L(2)(f)[2] herein shall be used by the Borough 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 from adaptable to accessible
entrances to the Construction Official of the Borough of Maywood.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
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 Borough of Maywood's Affordable Housing Trust
Fund in care of the Borough Treasurer who shall ensure that the funds
are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[6]
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.
A.
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC and by the Superior Court, 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.
B.
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 low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
C.
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, which very-low-income units shall be part of the low-income
requirement.
D.
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 prices for each
bedroom type, and low-income ownership units must be available for
at least two different sales prices for each bedroom type.
E.
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:
(1)
A studio or efficiency unit shall be affordable to a one-person household;
(2)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(3)
A two-bedroom unit shall be affordable to a three-person household;
(4)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(5)
A four-bedroom unit shall be affordable to a six-person household.
F.
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
G.
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 homeowner
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.
H.
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
household size, 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.
I.
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.
J.
Income limits for all units for which income limits are not already
established through a federal program exempted from the Uniform Housing
Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall be updated
by the Borough annually within 30 days of the publication of determinations
of median income by HUD as follows:
(1)
Regional income limits shall be established for the Region 1 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 Region 1. 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.
(a)
The income limits calculated each year shall be the result of applying the percentages set forth in Subsection J(1) above to HUD's determination of median income for the relevant fiscal year and shall be utilized until the Borough updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(b)
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 Borough annually by taking the percentage increase of the income limits calculated pursuant to Subsection J(1) 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.
K.
The rent levels 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 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.
L.
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.
