It is the purpose of this Part 10 to meet Boonton
Township's constitutional Mount Laurel housing obligation through
provisions designed to result in the voluntary rehabilitation of deficient
low- and moderate-income housing units within the Township in one
or more of the following ways:
A.
Through grants from the Township's housing rehabilitation
trust fund established hereunder to eligible low- and moderate-income
homeowners for rehabilitation of owner-occupied housing through a
program to be administered by the Township and/or its agent. The trust
fund shall be funded by voluntary contributions of the developers
of the R-1A and R-1B Residential Zones of the Township and shall also
receive private donations and municipal funding if available.
B.
Through direct grants as may be available from the
Morris County Department of Community Development to eligible low-
and moderate-income homeowners for housing rehabilitation of owner-occupied
housing.
A.
Only owners of houses or structures within the Township
of Boonton are eligible for the financial assistance made available
through this Part 10. The homeowner must either live in a low- or
moderate-income household (owner-occupied housing) or must agree to
rent the house or other dwelling unit to be rehabilitated to a low-
or moderate-income household (rental housing).
B.
All required forms must be completed by an applicant
for housing rehabilitation assistance in a timely fashion.
C.
The rehabilitation plan for the housing unit must,
upon completion, result in the elimination of all deficiencies and
improve the unit to code standards. The Construction Official will
review the adequacy of the plan before final approval and approve
the rehabilitation upon completion.
E.
The provisions of this Part 10 shall apply to all
housing units which receive assistance through the Housing Rehabilitation
Program established herein. The applicant shall agree, in writing,
to comply with its terms.
Grants provided to eligible applicants under
the housing program shall be subject to the following terms and conditions:
A.
The maximum amount of assistance per applicant shall
be $15,000.
B.
Owner-occupied housing. Rehabilitation assistance
for owner-occupied housing shall be in the form of a non-interest-bearing,
deferred-payment loan with a term of six years, which is secured by
a mortgage on the property. Such loan shall convert to a full grant
and the lien shall be discharged at the end of the six-year term,
so long as the owner has not vacated the premises or transferred title
to the property prior to the expiration of said term. An owner who
conveys or vacates the property shall be required to repay the loan
in full at such time as the owner conveys title or ceases to occupy
the property unless said conveyance is to another low- or moderate-income
household at an affordable sales price. In the event of conveyance
of the dwelling unit to another low- or moderate-income household
during said six-year term, such conveyance shall be subject to the
mortgage lien which shall remain in effect for the balance of the
six-year term.
C.
Rental housing. Rehabilitation assistance for rental
housing shall be in the form of a non-interest-bearing, deferred-payment
loan with a term of 10 years, which is secured by a mortgage on the
property. Said lien shall secure the full amount of the loan and shall
require compliance with the rental affordability controls set forth
hereinafter. The deferred-payment load shall convert to a full grant
and the lien shall be discharged at the expiration of said ten-year
term. The full amount of the deferred-payment load shall be paid to
the Township upon any leasing or occupancy of the housing unit by
a non-lower-income household.
D.
Any applicant receiving assistance shall be subject
to and shall consent to the recording of a deed restriction and mortgage
lien on the real property in accordance herewith.
For rehabilitation assistance for rental housing,
the applicant shall consent to a deed restriction requiring that the
dwelling unit may only be leased to or otherwise occupied by a low-
or moderate-income household at a rental amount which does not exceed
the affordable rent applicable to the particular dwelling unit size.
This deed restriction shall be a real covenant running with the land
and shall bind the applicant and all successors in interest for a
period of 10 years from the date of closing on the deferred-payment
loan. This deed restriction shall be termed the "rental affordability
control," shall be in a form satisfactory to the Township Attorney
and it shall require compliance with all of the following requirements:
A.
Prior to any change in occupancy of a housing unit
subject to a rental affordability control, the owner shall apply for
a certificate of affordable housing from the Housing Rehabilitation
Administrator. The application shall include a copy of the proposed
lease and an affidavit by the owner that the affordable rent restriction
will be adhered to. Upon request, the Housing Rehabilitation Administrator
will assist the owner in locating an income-eligible tenant. Any prospective
tenant must submit adequate proof of household income and household
size. If the Housing Rehabilitation Administrator or designee determines
that the proposed change in occupancy will be in compliance with the
rental affordability control, then a certificate of affordable housing
shall be issued.
B.
The permissible affordable rent may increase annually
based on the percentage increase in the Housing Consumer Price Index
for the United States, not to exceed 9% in any one year.
C.
An owner of property subject to a rental affordability
control may apply to the Housing Rehabilitation Administrator for
permission to increase the affordable rent for capital improvements
which render the unit suitable for a larger household, provided that
such change does not result in the displacement of existing low- or
moderate-income occupants. The new rent shall not exceed the affordable
rent permitted for such larger household size.
For rehabilitation assistance for owner-occupied
single-family housing units, the applicant shall consent to a deed
restriction and mortgage lien to be recorded, requiring that the dwelling
unit be sold only to low- and moderate-income households. This deed
restriction shall be a real covenant running with the land and shall
bind the applicant and all successors in interest for a period of
six years from the date of closing on the deferred-payment loan. The
deed restriction shall be termed the "sales affordability control"
and shall be in a form satisfactory to the Township Attorney and shall
comply with all the following requirements:
A.
Prior to a sale of an owner-occupied single-family
housing unit, the owner shall apply for a certificate of affordable
housing from the Housing Officer. The application shall include a
copy of the proposed contract of sale and the affidavit by the owner
that the affordable sales restriction will be adhered to. Upon request,
the Housing Officer will assist the owner in locating an income-eligible
purchaser. Any prospective purchaser must submit adequate proof of
household income and household size. If the Housing Officer or designee
determines that the proposed sale will be in compliance with the affordability
control, then a certificate of affordable housing shall be issued.
B.
The sales price of a rehabilitated owner-occupied
single-family housing unit may increase annually based on the percentage
increase in the regional median income limit for the region as established
by the Council on Affordable Housing.
C.
Owners of rehabilitated owner-occupied single-family
housing units may apply to the Housing Officer for permission to increase
the maximum sales prices for eligible capital improvements which render
the unit suitable for a larger household, provided that the maximum
price of the improved housing unit does not exceed the limits of affordability
for the larger households.
The Boonton Township Housing Rehabilitation
Program shall be administered by the Township of Boonton unless the
Township enters into a separate agreement with an appropriate outside
agency, such as the Morris County Department of Community Development,
to assume some or all of the responsibilities noted herein. If the
program's administered by the Township, the Township shall designate
an individual to serve as Housing Rehabilitation Administrator, who
may be an elected or appointed Township official.
A.
The duties of the Housing Rehabilitation Administrator
shall include:
(1)
Publicizing the rehabilitation program through a variety
of means, including brochures and newspaper press releases and providing
information and application packets to interested applicants.
(2)
Identifying eligible homeowners and marketing the
program to potential applicants.
(3)
Implementation of the program, including:
(a)
Application review and eligibility determinations.
(b)
Conducting client interviews and home inspections.
(c)
Preparation of home inspection reports.
(d)
Approval of construction contracts.
(e)
Preparation of contract and lien agreements.
(f)
Performance of ongoing and final inspections.
(g)
Maintenance of files and preparation of quarterly
status reports to the Boonton Township Committee.
(4)
Administering the housing rehabilitation trust fund
and preparing periodic status reports on the program and available
funding to the Township Committee.
B.
The Boonton Township Construction Official shall:
(1)
Determine or assist in determining the deficiency
of an applicant's unit under the provisions of this Part 10.
(2)
Review and determine the adequacy of plans to rehabilitate
a housing unit in accordance with the rehabilitation program established
herein.
(3)
Conduct initial and final inspections required in
connection herewith and issue certifications of rehabilitation upon
completion of work to the Housing Rehabilitation Administrator.
A.
Interested homeowners will be able to secure information
and application packets regarding the rehabilitation program from
the Township Clerk at the Municipal Building during regular business
hours.
B.
Once an application has been completed and filed with
the Housing Rehabilitation Administrator, a determination shall be
made as to income eligibility.
C.
Once a homeowner has been certified to be income eligible,
a home inspection shall be conducted to determine the existence of
a housing deficiency requiring rehabilitation.
D.
Once the home and the applicant have been certified
as eligible, a home inspection report shall be prepared which shall
include specifications to be used to obtain construction estimates.
E.
It shall be incumbent upon the applicant to obtain
at least two written cost estimates for the rehabilitation work from
qualified contractors. A list of contractors will be supplied to applicants
upon request.
F.
The cost estimate shall be reviewed by the Housing
Rehabilitation Administrator, and the lowest responsible bidder will
be selected.
G.
The rehabilitation work may begin as soon as all necessary
agreements, including construction contract and lien documents, have
been executed.
H.
Payments shall be made to the appropriate parties
as work progresses. After construction has been completed, the Construction
Official shall conduct a final inspection to certify that the required
property improvements are complete. Final payment for the rehabilitation
work will then be released and lien documents recorded.
A.
There is hereby established an interest-bearing Housing
Rehabilitation Trust Fund for the Township of Boonton. The fund will
consist of moneys from the following sources:
(1)
Voluntary contributions toward rehabilitation of substandard
housing from the developers of the R-1A and R-1B Residential Zones
of the Township.
(2)
Moneys donated from private sources or which may be
available through the municipal budgeting process for the purpose
of rehabilitating substandard housing within the Township of Boonton.
B.
The Housing Rehabilitation Trust Fund shall be administered
by the Housing Rehabilitation Administrator, who shall be responsible
to monitor the fund and provide a periodic accounting to the Township
Committee for the moneys available for housing rehabilitation, until
such time as the fund has been exhausted.
