B.
Except as otherwise expressly provided herein, no
low-income unit shall be offered for sale or rental except at prices
that are affordable by low-income households and no moderate-income
unit shall be offered for sale or rental except at prices that are
affordable by moderate-income households and, except as otherwise
expressly provided herein, no low-income unit shall be sold, resold,
rented or rerented except to a household that has been qualified as
a low-income household by the Agency, and no moderate-income unit
shall be sold, resold, rented or rerented except to a household that
has been qualified as a moderate-income household by the Agency. The
provisions of this subsection shall apply equally to qualified lower-income
owners or renters, in terms of controls on sale, resale, rental or
rerental of any lower-income unit. Notwithstanding any other provision
of this part to the contrary, a certified household that purchases
a restricted ownership unit must occupy it as the principal residence
and not lease the unit; provided, however, the Agency may permit the
owner of the restricted unit, upon a showing of hardship, to lease
the unit to a certified household for a period not to exceed one year.
[Amended 12-20-2004 by Ord. No. 04-35]
C.
Nothing contained in this Part 1, however, or in the
rules and regulations promulgated by the Agency, shall restrict or
preclude any household which was classified as low- or moderate-income
based upon its gross aggregate household income at the time it purchased
or leased a low- or moderate-income unit from continuing to own or
lease said unit after its income exceeds the income ceilings established
in this Part 1.
D.
Prospective purchasers of lower-income units shall
receive prior to or simultaneously with the execution of the contract
to purchase a lower-income unit a copy of the affordable housing plan
and shall execute a disclosure statement which briefly summarizes
the salient features of the use, occupancy and resale restrictions
applicable to the lower-income unit. It shall be the developer's responsibility
to provide such for the initial sales and the subsequent owner's responsibility
to provide the same for resales. The developer shall record the affordable
housing plan prior to conveying any title to any individual lower-income
unit or executing a lease for any individual lower-income unit and
the deeds or leases or individual lower-income units must reference
such recorded affordable housing plan.
E.
The Township of North Brunswick shall forever receive
full credit towards its then current total fair share obligation as
may be determined from time to time so long as the then-current total
fair share obligation includes previous fair share obligations for
all lower-income units developed pursuant to this Affordable Housing
Ordinance, so long as such lower-income units are actually sold, resold,
used, occupied, rented, rerented and maintained in full and complete
compliance with the provisions of this Part 1, including but not limited
to those provisions covering hardship, foreclosure and exempt transactions
and the affordable housing plan.
F.
The initial proportional relationship between condominium
fees assessed against market units and lower-income units shall not
be increased in future years and said restrictions shall be reflected
in the articles of incorporation and in the required disclosure statement.
Association fees assessed against said lower-income units shall be
no less than 1/3 of the fee which would have been assessed had all
condominiums (both lower-income and market units) been assessed equally.
Such initial calculations shall be provided by the developer.
A.
A prospective purchaser or renter of a low- or moderate-income
unit must be qualified as a low- or moderate-income household by the
Agency prior to the purchase or rental of such unit. The Agency shall
periodically recalculate the regional median income and determine
adjustments for household size as updated data or estimates of regional
median income become available.
B.
The income ceilings for low- and moderate-income households
of four members shall be 50% and 80%, respectively, of the regional
median income, with adjustments for household size in accordance with
guidelines of the United States Department of Housing and Urban Development.
Prior to the sale, resale, rental or rerental
of a low- or moderate-income unit, the Agency shall determine the
maximum sales price or rental charge that may be charged for that
size unit in each income category in accordance with the following:
A.
Estimated maximum initial sales prices for units.
(1)
As part of the preliminary site plan application submittal to the Planning Board by a developer for a development containing lower-income units, the developer shall also submit to the Agency information demonstrating the mortgage financing generally available to lower-income homebuyers and the developer's calculations as to the estimated maximum sales prices in accordance with Subsection B below.
(2)
The Agency shall review the developer's calculations
and shall determine the estimated maximum sales prices for applicable-sized
units in each income category in accordance with the financial terms
determined to be generally available and shall notify the Planning
Board and the developer of said estimated maximum sales prices prior
to final approval by the Planning Board. The delay of the Agency shall
not postpone or delay the Planning Board's decision as to the proposed
development.
B.
Actual maximum initial sales prices for units.
(1)
A base sales price shall be calculated such that the sum of the monthly payments for principal, interest, taxes, fire, theft and liability insurance and homeowner association fees, if any, shall not exceed 28% of the low- or moderate-income ceilings determined in accordance with § 195-10.
(2)
In order to assure that low- and moderate-income units
are affordable by households whose income is less than the low- or
moderate-income ceilings, the maximum sales price that may be offered
for each such unit shall not exceed 90% of the base price for that
size unit in each income category.
(3)
At least a minimum of 30 days prior to the developer's
anticipated need of building permits, with the exception of permits
for model units, the developer shall provide the Agency with information
demonstrating the financing that is generally available locally to
lower-income homebuyers and the developer's calculations as to maximum
initial sales prices. The interest rate used by the developer in calculating
the maximum sales price shall be the rate that the Agency determines
to be generally available locally for a ninety-percent, thirty-year,
fixed-rate mortgage.
(4)
If the developer proposes to provide financing through
an adjustable rate mortgage (ARM) or establishes that ARM's are generally
available locally to lower-income purchasers, then the interest rate
to be used for calculating the maximum sales price shall be the greater
of either the current index of one-year Treasury Bills plus two points
or two points less than the best available fixed rate mortgage.
(5)
The Agency shall use this information to determine
the maximum initial sales prices for the different-sized units in
each income category, as described above. The Agency shall certify
the actual maximum initial sales prices to the Planning Board, the
developer and the Construction Official in charge of issuing building
permits within 30 days of submission of complete information by the
developer. No building permits, except for complete models, including
models of non-lower-income units, foundation permits for units other
than models, permits for underground utilities and site development
work shall be issued until the maximum initial sales prices have been
certified by the Agency. These sales prices shall remain in effect
for a period of one year. However, the developer may request a modification
of the maximum sales prices at any time by applying to the Affordable
Housing Agency for recalculation of these prices based on changes
in any of the factors used to calculate the prices.
C.
Maximum resale prices.
[Amended 5-21-2007 by Ord. No. 07-10]
(1)
Prior to the resale of any low- or moderate-income
unit, the Agency shall determine the maximum sales price for the unit.
The price of low- and moderate-income units may be increased annually
based upon the percentage increase in the housing consumer price index
for the United States. This increase shall not exceed 9% in any one
year. The Agency is hereby authorized to use the COAH/HAS Sale Price
Calculator, as authorized and established by the New Jersey Department
of Community Affairs, Council on Affordable Housing, in determining
the maximum resale price for any given affordable housing unit.
(2)
Low- or moderate-income affordable housing units.
(a)
The maximum resale price for low- or moderate-income
affordable housing units which have been designated as such as of
the effective date of this subsection shall be set pursuant to the
maximum resale prices established as of December 31, 2005, as follows:
|
Unit Size/Low-Moderate
|
Maximum Resale Price
| |
|---|---|---|
|
Two-bedroom low-income unit
|
$110,238
| |
|
Three-bedroom low-income unit
|
$130,494
| |
|
Two-bedroom moderate-income unit
|
$130,746
| |
|
Three-bedroom moderate-income unit
|
$157,930
|
(b)
These prices shall be used for purposes of determining
the resale price using the COAH/HAS Sale Price Calculator.
(3)
Any low- or moderate-income affordable housing units
constructed and sold after the effective date of this subsection shall
have resale prices set and determined by using the COAH/HAS Sale Price
Calculator, based upon the actual sales prices and dates of sale.
D.
Maximum rental charges for units.
(1)
A base rent shall be calculated such that the sum of the monthly rental payment, including utilities, does not exceed 30% of the low- or moderate-income ceilings determined in accordance with § 195-10.
(2)
If the cost of all utilities is not included in the
monthly rental charge, the Agency shall calculate for each unit size
an estimated monthly charge for those utilities not included in the
rent. These charges shall be estimated utilizing estimating techniques
acceptable in the industry. This estimated charge shall be subtracted
from the maximum gross rent to determine the maximum rental charge
that may be charged for each low- and moderate-income unit.
(3)
In order to assure that low- and moderate-income units
are affordable by households whose income is less than the low- or
moderate-income ceilings, the maximum gross rent that may be charged
for any such unit shall not exceed 90% of the base rent for that size
unit in each income category. Notwithstanding these requirements,
landlords shall have the option to set rents equal to 30% of the tenant's
gross household income, with the requirement that the average of all
rents charged for the same-size unit shall not exceed 90% of the base
rent charge for such size unit. The cost of any additional administrative
charges incurred by the Agency in the monitoring of such rental distribution
shall be the sole responsibility of such landlord.
(4)
The developer shall calculate the maximum rental charge
for applicable-sized units in each income category and shall submit
said calculations to the Agency for review. The Agency shall determine,
based upon its review, maximum rental charges. These rental charges
shall remain in effect for a period of at least one year, except that
the developer may request a modification of these charges by applying
to the Agency for recalculation of the prices based on changes in
any of the factors used to calculate the rental charges.
(5)
To the extent feasible, these criteria and procedures
should ensure that the new rental charges are consistent with the
affordability standards set forth in this Part 1.
(6)
The Agency shall establish appropriate criteria and
procedures for allowing periodic rental charge increases.
E.
Relationship between household size and unit size.
(1)
For the purpose of determining maximum sales prices
and rental charges pursuant to this Part 1, the ceiling incomes of
the following household sizes shall be used to determine the maximum
prices for each of the following unit sizes:
|
Bedroom
|
Occupancy
(persons)
| |
|---|---|---|
|
Efficiency
|
1
| |
|
1
|
2
| |
|
2
|
3
| |
|
3
|
5
| |
|
4
|
6
|
(2)
Any room other than a bathroom, kitchen, dining area
or living room and which was initially designed for regular sleeping
by regular members of the household shall be considered a bedroom
for purposes of calculating the maximum initial sales prices. No alterations
or improvements by owners after initial occupancy shall increase the
number of bedrooms unless the total area of habitable living space
is increased by an amount at least equal to the new area being claimed
as a new bedroom.
A.
Restrictions governing the lower-income units offered
initially for sale shall expire as to a particular lower-income unit
30 years from the date of recording of the initial deed of the particular
lower-income unit to a qualified purchaser.
B.
The restrictions governing the rental of lower-income
units shall expire as to a particular lower-income unit 30 years from
the date of the initial certificate of occupancy of such lower-income
unit and a document shall be recorded stating such date immediately
after such initial certificate of occupancy is issued by the Township.
C.
If rental units are converted within 30 years of initial
occupancy, the same number of low- and moderate-income units, respectively,
must be maintained after conversion, subject to resale controls ensuring
their continued affordability and occupancy for the balance of the
thirty-year period.
A.
Exempt transactions.
(1)
The following transactions shall be deemed "non-sales"
for purposes of this Part 1 and the affordable housing plan, and the
Agency shall issue a statement of exemption to the owner receiving
title by virtue of any of the following transactions:
(a)
Transfer of ownership of a lower-income unit
between husband and wife.
(b)
Transfer of ownership of a lower-income unit
between former spouses ordered as a result of a judicial decree of
divorce or judicial decree of separation, but not including sales
to third parties.
(c)
Transfer of ownership of a lower-income unit
between family members as a result of inheritance.
(d)
Transfer of ownership of a lower-income unit
through an executor's deed to any person.
(e)
Transfer of ownership of a lower-income unit
through an order of the Superior Court or other court.
(2)
Such transfer of ownership neither extinguishes the
restrictions and applicability of this Part 1 or the affordable housing
plan to such lower-income unit nor terminates any liens set forth
under this plan. Liens must be satisfied in full prior to the subsequent
resale of the lower-income unit and all such subsequent resales are
fully subject to the terms and provisions of this Part 1 and the affordable
housing plan.
B.
Hardship exemptions. The developer and subsequent
owners may apply to the Agency for a hardship exemption.
(1)
Provisions applicable to initial sales or rentals.
(a)
The developer may only apply to the Agency for a hardship exemption after the later of six months after the developer has commenced marketing the lower-income unit in accordance with the requirements of the affirmative marketing requirements as set forth in § 195-14, and 90 days after the developer has received the certificate of occupancy for such lower-income unit.
(b)
In order for the developer to be entitled to
a hardship exemption from the Agency, the developer must show the
Agency that:
(2)
Provisions applicable to other than initial sales
or rentals.
(a)
Owners or the developers may only apply to the
Agency for a hardship exemption after 120 days after such owner or
developer has notified the Agency that such lower-income unit is available
for resale or rerental to qualified lower-income households.
(b)
In order for such owner or developer to be entitled
to a hardship exemption from the Agency, such owner or developer must
show the Agency that:
[1]
The one hundred twenty-day time period has lapsed;
[2]
The owner or developer has been affirmatively
marketing such unit in accordance with the affirmative marketing requirement
for such time period; and
[3]
No qualified purchaser is obligated under a
contract to purchase or a lease to rent, as the case may be, for such
lower-income unit.
C.
Procedural requirements for issuance of a statement
of exemption for both exempt transactions and hardship exemptions.
(1)
The Agency must act upon an application for a statement
of exemption within 30 working days of receipt of such application.
(3)
If the Agency fails to approve, deny or conditionally
approve an application within such thirty-day period, such failure
to act shall be deemed to be an approval by the Agency of the application
for a statement of exemption.
(4)
The Agency shall issue a written decision to the applicant
immediately after making its decision. If the application is approved,
the Agency shall immediately issue to the applicant a statement of
exemption in recordable form describing the specific lower-income
unit covered by the statement of exemption.
(5)
The original of the statement of exemption shall be
given to the purchaser at the time of closing of title and shall be
recorded simultaneously with the deed, or to the tenant prior to taking
possession and occupancy, of the applicable lower-income unit.
D.
Effect of statement of exemption for both hardship
exemptions and exempt transactions.
(1)
A statement of exemption issued pursuant to Subsection B (hardship) above shall authorize the owner or applicant to sell or rent the particular lower-income unit to a household whose gross aggregate household income is up to 50% higher than the original relevant income ceilings applicable to such lower-income unit as determined in accordance with § 195-10 of this Part 1.
(2)
A statement of exemption issued in accordance with Subsection A (exempt transactions) above shall permit the named grantee or lessee to receive title or possession of the particular lower-income unit in the same manner as a qualified purchaser.
(5)
The statement of exemption under Subsections A or B above shall only relieve the specific transaction of the restriction of selling, reselling or renting such lower-income unit to only qualified purchasers. All other restrictions, requirements and provisions of this Part 1 and the affordable housing plan shall remain in full force and effect, including but not limited to the maximum sales prices and rental charges which are established pursuant to § 195-11 of this Part 1.
(6)
The restrictions of resale or rental to only qualified
purchasers shall apply to subsequent resales or rentals of the particular
lower-income unit unless a new statement of exemption is issued by
the Agency in accordance with the provisions of this Part 1.
(7)
Nothing shall preclude the Agency from purchasing
the specific lower-income unit and holding, renting or conveying it
to a qualified purchaser, provided that such right is exercised prior
to the owner signing a valid contract to sell such lower-income unit
and such right is further exercised before the expiration of the applicable
fifteen-day period.
E.
Foreclosure and first purchase money mortgages.
(1)
Provisions for first purchase money mortgagees.
(a)
The terms and restrictions of this Part 1 and
the affordable housing plan shall be subordinate only to the first
purchase money mortgage lien on any lower-income unit and in no way
shall impair the first purchase money mortgagee's ability to exercise
the contract remedies available to it in the event of default as such
remedies are set forth in the first purchase money mortgage documents
for the unit.
(b)
So long as the first purchase money mortgage
is not sold to the Federal National Mortgage Association or in the
secondary mortgage market, the first purchase money mortgagee and/or
mortgage servicer shall serve written notice upon the Agency within
10 days after the first purchase money mortgage is three months in
arrears, and within 10 calendar days of the filing of the complaint
seeking foreclosure of the first purchase money mortgage held on a
lower-income unit.
(c)
The obligation of first purchase money mortgagee
and/or servicer to notify the Agency shall cease automatically and
immediately upon the sale of the first purchase money mortgage to
the Federal National Mortgage Association or in the secondary mortgage
market unless the rules and regulations or guidelines of the Federal
National Mortgage Association are amended so as to not prohibit or
exclude placing such obligation upon the holder of the mortgagee or
its service representative, in which case an instrument duly evidencing
the same must be recorded with the Office of the Recorder, Middlesex
County, New Jersey, and the Clerk of the Township of North Brunswick,
before any such obligation shall exist.
(d)
Provided that the first purchase money mortgagee
is obligated to give the Agency the above-mentioned notices, the first
purchase money mortgagee shall also serve written notice of any proposed
foreclosure sale upon the Agency at least 30 days prior to the first
scheduled date of such sale.
(e)
The first purchase money mortgage shall serve
notice upon the Agency within 30 days of the sale of the first purchase
money mortgage to the Federal National Mortgage Association or in
the secondary mortgage market.
(f)
The Township of North Brunswick and/or the Agency
or any instrumentality designated by the Township shall have the right
to purchase any mortgage which is in default at any time prior to
the entry of a foreclosure judgment or within the redemption period
thereafter. Notification of a default and of the institution of a
foreclosure action and of a Sheriff's sale shall be served in writing
upon the Chairman of Agency as aforesaid. The Township of North Brunswick
shall at all times be considered a party-in-interest and shall have
the right to be joined as a party defendant and/or shall have the
right to intervene in any foreclosure action seeking foreclosure of
a first mortgage and/or shall have the right to redeem and acquire
the owner's equity of redemption or to acquire the unit from the owner
upon such terms and conditions as may be determined by the Agency.
(2)
Effect of foreclosure. Any lower-income unit which
is acquired by a first purchase money mortgagee by deed in lieu of
foreclosure or by any purchaser at a mortgage foreclosure sale conducted
by the holder of the first purchase money mortgage, including the
first purchase money mortgagee but excepting the defaulting mortgagor,
shall be permanently released from the restrictions and convenants
of this plan, and all resale restrictions shall cease to be effective
as to the first purchase money mortgagee and all subsequent purchasers
and mortgagees of that particular unit, except for the defaulting
mortgagor, who shall be forever subject to the resale restrictions
of this plan with respect to the unit owned by him at the time of
his default. The Agency shall execute a document in recordable form
evidencing that such lower-income unit has been forever released from
the restrictions of this Part 1 and the affordable housing plan. Execution
of foreclosure sales by any other class of creditor or mortgagees
shall not result in a release of the unit from the provisions and
restrictions of this Part 1 or the affordable housing plan.
(3)
Surplus funds. In the event of a foreclosure sale by the holder of the first purchase money mortgage, the owner shall be personally obligated to pay to the Agency any surplus funds. For purposes of this subsection, "surplus funds" shall be the total amount paid to the Sheriff in excess of the greater of the maximum resale price of the unit pursuant to § 195-11C and the amount required to pay and satisfy the first purchase money mortgage, including the costs of foreclosure plus any second mortgages approved by the Agency in accordance with § 195-7J of this Part 1. Surplus funds shall also include all payments to any junior creditors out of such surplus funds even if such were to the exclusion of the owner. The Agency shall be given a first priority lien, second only to the first purchase money mortgagee of a unit and any taxes or public assessments by a duly authorized governmental body, equal to the full amount of such surplus funds. This obligation of the owner to pay this full amount of surplus funds to the Agency shall be deemed to be a personal obligation of the owner of record at the time of the foreclosure sale, and the Agency shall be empowered to enforce the obligation of the owner in any appropriate court of law or equity as though the same were a personal contractual obligation of the owner. Neither the first purchase money mortgagee nor the purchaser at the foreclosure sale shall be responsible or liable to the Agency for any portion of this excess. The Agency may utilize up to 30% of the surplus funds realized in any one calendar year, but in no event to exceed $10,000 per calendar year, for the purpose of funding operating expenses of the Agency. Other surplus funds shall be used for increasing the opportunities for affordable housing within the Township in accordance with the provisions of this Part 1.
(4)
Owner's equity.
(a)
Owner's equity shall be determined to be the difference between the maximum resale price of the unit as calculated in accordance with § 195-11C and the total of the first purchase money mortgage, prior liens, costs of foreclosure, assessments, property taxes and other liens which may have been attached against the unit prior to foreclosure, provided that such total is less than the maximum resale price.
(b)
If there are sums to which the owner is properly
entitled, such sums shall be turned over to the owner or placed in
an escrow by the Agency for the owner for a maximum period of two
years. Any interest accrued or earned on such balance while being
held in escrow shall belong to and shall be paid to the Agency.
(c)
This provision is subject, however, to applicable
laws of the State of New Jersey governing the distribution and payment
of proceeds of foreclosure sales.
A.
All developers of low- and moderate-income units shall
affirmatively market said units to persons of low and moderate income,
irrespective of race, color, sex, religion or national origin.
B.
Towards that end, the developer shall formulate and
submit an affirmative marketing plan acceptable to the Agency, which
plan shall be incorporated as a condition of approval of the development
application. At a minimum, the plan shall provide for advertisement
in newspapers with general circulation in the following urban areas:
Jersey City, Newark, Elizabeth, Paterson, New Brunswick and Perth
Amboy. The plan shall also require that the developer notify the following
agencies on a regular basis of the availability of any low- or moderate-income
units: the Civic League of Greater New Brunswick, the Housing Coalition
of Middlesex County, the Middlesex County Office of Community Development
and other fair housing centers, housing referral organizations and
government housing and community development departments located in
the following eleven counties: Bergen, Essex, Hudson, Hunterdon, Middlesex,
Morris, Passaic, Somerset, Union, Sussex and Warren, as such are identified
by the Agency prior to approval of the developer's proposed affirmative
marketing plan.
C.
All advertisements shall conform to applicable affirmative
action, equal opportunity and nondiscrimination laws of the state
and federal government.
The Township of North Brunswick shall report
quarterly in writing to the Civic League of Greater New Brunswick
or its designee, commencing with December 31, 1985, providing the
following information with regard to any sites requiring set asides
of low- and moderate-income housing:
A.
Itemization of all proposed developments which are subject to the provisions of this Part 1 and for which applications have been filed with or approved by the Planning Board. Information shall be provided on the location of the proposed site, the number of low- or moderate-income units, the number of market units, calculation of maximum sales prices per § 195-11, the distribution of lower-income units by bedroom number, the phasing schedule for completion of lower-income units in relation to completion of market units, the name of the developer and dates that Planning Board actions were taken or are anticipated to be taken.
B.
A copy of the affirmative marketing plans provided
for each development, together with copies of advertisements and a
list of newspapers and community or governmental organizations or
agencies which received the advertisements.
A.
Developer's responsibilities.
(1)
The responsibilities of the developer shall include,
but not be limited to the following:
(a)
Submission of information as to financing terms
readily available to low- and moderate-income households for use by
the Agency in computing maximum sales prices.
(b)
Submission of an affordable housing plan and
an affirmative marketing plan to the Agency for approval, and submission
of proofs of publication to ensure compliance with said plan.
(c)
The marketing of all low- and moderate-income
units in accordance with the requirements of this Part 1.
(d)
Submission of quarterly reports to the Agency
detailing the number of low- and moderate-income households who have
signed leases or purchase agreements, as well as the number who have
taken occupancy of lower-income units, including household size, number
of bedrooms in the unit, sales price and monthly carrying costs or,
in the case of rental units, the monthly rental charges and utilities
included.
(2)
The developer's responsibilities hereunder shall expire
automatically with respect to for-sale lower-income units upon the
date upon which the last lower-income unit within the particular development
is sold by the developer. With respect to rental lower-income units,
the developer's responsibilities shall be assumed by the landlord
and shall be performed by the landlord so long as such unit is a rental
lower-income unit and subject to the restrictions of this Part 1.
B.
Responsibilities of owners.
[Amended 1-15-1990; 12-20-2004 by Ord. No. 04-35]
(1)
Prior to advertising or listing his or her low- or moderate-income unit for resale or rental, if a rental is permitted by the Agency as provided in § 195-9B, the owner shall provide written notice to the Agency of the proposed advertisement or listing and a copy of such proposed advertisement or listing which identifies the unit as income restricted.
(2)
Unless otherwise exempt pursuant to this Part 1, the owner shall only resell or rent, if a rental is permitted by the Agency as provided in § 195-9B, his or her low or moderate-income unit to a qualified purchaser or renter as determined by the Agency in accordance with the income eligibility guidelines adopted by the Agency.
(3)
Prior to reselling or renting his or her low or moderate-income
unit, the owner shall provide the Agency with a true and correct copy
of the contract for sale or lease and obtain approval of the maximum
permitted resale price or rental for the resale or rental from the
Agency.
(4)
Unless otherwise exempt pursuant to this Part 1, the owner shall be responsible for guaranteeing that the necessary documents are executed and filed at the closing of rifle or rental, if a rental is permitted by the Agency as provided in § 195-9B, of a low or moderate-income unit to assure that the unit remains affordable to and occupied by low or moderate-income households.
(5)
In the event that any first mortgagee or other creditor
of an owner of a lower-income unit exercises its contractual or legal
remedies available in the event of default or nonpayment by the owner
of a lower-income unit, the owner shall notify the Agency in writing
within 10 days of such exercise by the first mortgagee or creditor
and no later than 10 days after service of any summons and complaint.
(6)
Any owner of a lower-income unit shall notify the
Agency within 10 days in writing of any default in the performance
by the owner of any obligation under either the master deed of the
condominium association, including the failure to pay any lawful and
proper assessment by the condominium association, or any mortgage
or other lien against the lower-income unit, which default is not
cured within 60 days of the date upon which the default first occurs.
(7)
The owner shall not permit any lien, other than the
first purchase money mortgage, Agency-approved second mortgages and
liens of the Agency, to attach and remain on the property for more
than 60 days.
(8)
The owner of a lower-income unit shall keep the unit
in good repair and shall not commit waste thereon.
(9)
The owner shall pay all taxes and public assessments
and assessments by the condominium association levied upon or assessed
against the unit or any part thereof as and when the same become due
and before penalties accrue.
(10)
If a lower-income unit is part of a Condominium
Association, the owner, in addition to paying any assessments required
to be paid by the master deed of the condominium association, shall
further fully comply with all of the terms, covenants or conditions
of said master deed, as well as fully comply with all terms, conditions
and restrictions of this Part 1 and the affordable housing plan.
(11)
Certification of compliance.
(a)
The owner of a lower-income unit shall be required
to certify, in writing, compliance with the provisions of the Affordable
Housing Ordinance, an approved applicable affordable housing plan
and the rules and regulations of the Township of North Brunswick Affordable
Housing Agency at least one time per calendar year and at such other
times as may be required by the Agency.
(b)
The certificate shall be completed by the owner
on a form provided by the Agency and shall be completed and returned
by the owner to the Agency no later than 10 days from the date of
mailing by the Agency.
(c)
The Agency shall have the right to verify the
accuracy of the certification by such means as are lawfully available
to it, including but not limited to inspections by the Office of Code
Enforcement as well as the Department of Law and Safety.
A.
Violations of this Part 1 or affordable housing plan;
interest.
(1)
The interest of any owner may, at the option of the
Agency, be subject to forfeiture in the event of substantial breach
of any of the terms, restrictions and provisions of this Part 1 or
the affordable housing plan which remains uncured for a period of
60 days after service of a written notice of a violation upon the
owner by the Agency.
(2)
However, the interest of any owner shall be subject to forfeiture in the event of falsification of any application and/or certification as may be required by this Part 1 and/or the rules and regulations of the Township of North Brunswick Affordable Housing Agency and/or by an applicable approved affordable housing plan, and accordingly, the Agency shall have the right to institute appropriate legal action in the Superior Court of New Jersey for the purpose of obtaining a judgment which would result in the termination of the owner's equity or other interest in the unit in the nature of a mortgage foreclosure, together with damages, interest, attorney's fees and costs. Any judgment shall be enforceable and have the same effect as set forth in this section.
[Added 1-15-1990]
(3)
Further, the interest of any owner shall be subject
to forfeiture and legal proceedings as set forth above in the event
the owner rents a unit which is not authorized or permitted to be
rented by this Part 1 and/or the rules and regulations of the Township
of North Brunswick Affordable Housing Agency and/or an approved affordable
housing plan.
[Added 1-15-1990]
B.
Code Enforcement Official's investigation; notice
of violation.
[Amended 12-20-2004 by Ord. No. 04-35]
(1)
The Code Enforcement Official shall investigate all
complaints of a violation of this Part 1.
(2)
The Code Enforcement Official shall, within 60 days
of the receipt of the complaint, or longer for good cause shown, timely
report the findings of his investigation to the Agency in a form that
will permit the Agency to comprehensively review the complaint and
the official's findings. Such a report, which shall be in writing
and submitted to the Secretary of the Agency, shall contain adequate
information upon which the Agency may rely to provide written notice
to an owner of a violation of this Part 1.
(3)
The Agency, upon a review of the Code Enforcement
Official's report, shall determine whether to issue a notice of violation.
Any notice of violation shall specify the particular infraction and
shall advise the owner that his or her right to continued ownership
may be subject to forfeiture if such infraction is not cured within
60 days of receipt of the notice.
C.
Violation of this Part 1 or the affordable housing
plan. After providing written notice of a violation of this Part 1
and/or the affordable housing plan to an owner of a low- or moderate-income
unit and advising the owner of the penalties for such violations,
the Agency may take the following action against the owner for any
violation that remains uncured for a period of 60 days after service
of the written notice:
(1)
The Agency may file an action in Municipal Court pursuant
to N.J.S.A. 2A:58-11 alleging a violation or violations of this Part
1 and/or the affordable housing plan. If the owner is found by the
court to have violated any provision of this Part 1 and/or the affordable
housing plan, he or she shall be subject to one or more of the following
penalties, at the discretion of the court:
(a)
A fine of not more than $1,250 or imprisonment
for a period not to exceed 90 days, or both. Each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not as a continuing offense.
(b)
In the case of an owner who has resold his or
her low- or moderate-income unit in violation of this Part 1 and/or
the affordable housing plan, payment into Township of North Brunswick
Housing Trust Fund of the difference between the unauthorized resale
price and the maximum resale price allowed by this Part 1.
(c)
In the case of an owner who has rented his or
her low- or moderate-income unit in violation of this Part 1 and/or
the affordable housing plan, payment into the Township of North Brunswick
Housing Trust Fund of the difference between the unauthorized rental
charge and the maximum rental charge allowed by this Part 1 for the
entire term for which it is determined that a violation existed.
(d)
In the ease of an owner who has rented his or
her low- or moderate-income unit in violation of this Part 1 and/or
the affordable housing plan, payment of an innocent tenant's reasonable
relocation costs, as determined by the court.
(2)
The Agency may file an action in the Superior Court
seeking a judgment which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any 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 low- and moderate-income unit.
(a)
Such judgment shall be enforceable, at the option
of the Agency, by means of an execution sale by the Sheriff, at which
time the 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 Agency, 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 low and moderate-income unit. The excess, if
any, shall be applied to reimburse the Agency 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 Agency in full as aforesaid, the violating owner shall be personally
responsible for and to the extent of such deficiency, in addition
to any and all costs incurred by the Agency in connection with collecting
such deficiency. In the event that surplus remains after satisfying
all of the above, such surplus, if any, shall be placed in escrow
by the Agency 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 Agency 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 Agency. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the Agency, whether such balance shall
be paid to the owner or forfeited to the Agency.
(c)
Foreclosure by the Agency due to violation of
this Part 1 and/or the affordable housing plan shall not extinguish
the restrictions of this Part 1 and the affordable housing plan as
the same apply to the low and moderate-income unit. Title shall be
conveyed to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of this Part 1 and the affordable housing plan. 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 or 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 Agency may acquire title to the
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 prior for which the low
and moderate-income unit could have been sold under the terms of this
Part 1 and the affordable housing plan. 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 low and moderate-income unit
to be either sold at the Sheriff's sale or acquired by the Agency
shall obligate the owner to accept an offer to purchase from any qualified
purchaser which may be referred to the owner by the Agency, with such
offer to purchase being equal to the maximum resale price of the low
and moderate unit as permitted by the terms and provisions of this
Part 1 and the affordable housing plan.
(f)
The owner shall remain fully obligated, responsible
and liable for complying with the terms and restrictions of this Part
1 and the affordable housing plan until such time as title is conveyed
from the owner.
D.
Such judgment shall be enforceable at the option of
the Agency by means of an execution sale by the Sheriff, at which
the lower-income unit of the violating owner shall be sold at a sales
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 Agency, 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.
E.
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 lower-income unit. The excess, if any, shall
be applied to reimburse the Agency 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
Agency in full as aforesaid, the violating owner shall be personally
responsible for and to the extent of such deficiency, in addition
to any and all costs incurred by the Agency 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 Agency 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 Agency 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 Agency. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the Agency, whether such balance shall
be paid to the owner or forfeited to the Agency.
F.
Foreclosure by the Agency due to violation of this
Part 1 and the affordable housing plan shall not extinguish the restrictions
of this Part 1 and the affordable housing plan as the same apply to
the lower-income unit. Title shall be conveyed to the purchaser at
the Sheriff's sale subject to the restrictions and provisions of this
Part 1 and the affordable housing plan. 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.
G.
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 Agency may acquire title to the lower- 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 lower-income unit could
have been sold under the terms of this Part 1 and the affordable housing
plan. This excess shall be treated in the same manner as the excess
which would have been realized from an actual sale as previously described.
H.
Failure of the lower-income unit to be either sold
at the Sheriff's sale or acquired by the Agency shall obligate the
owner to accept an offer to purchase from any qualified purchaser,
which may be referred to the owner by the Agency, with such offer
to purchase being equal to the maximum sales price of the lower-income
unit as permitted by the terms and provisions of this Part 1 and the
affordable housing plan.
I.
The owner shall remain fully obligated, responsible
and liable for complying with the terms and restrictions of this Part
1 and the affordable housing plan until such time as title is conveyed
from the owner.
