[HISTORY: Adopted by the Township Committee of the Township of Readington 9-6-1988 by Ord. No. 248-88. Amendments noted where applicable.]
Affordable housing — See Ch. 137.
This ordinance may be cited as the "Housing Rehabilitation Program of the Township of Readington" ("program").
Whereas the deteriorating quality of the low- to moderate-income housing located within the borders has created a substantial hazard to the public health and welfare, safety and the quality of life, it is the opinion of the Township Committee that an ordinance should be adopted detailing a comprehensive plan to effectuate a community developed housing rehabilitation program in the Township of Readington. Included in such a plan are the guidelines for eligibility, financing options, funding sources and program administration procedures.
As used in this ordinance, the following terms shall have the meanings indicated:
- AFTER-VALUE APPRAISAL
- Consists of a real estate appraisal completed by a New Jersey licensed real estate appraiser giving value to the property after rehabilitative construction would be completed.
- AS-IS APPRAISAL
- Consists of a real estate appraisal completed by a New Jersey licensed real estate appraiser giving value to the property prior to any rehabilitative construction.
- DEFERRED REPAYMENT LOAN
- A loan made to a qualified, eligible family unit, upon which no interest is charged nor repayments made until the loan is called for repayment in full under conditions triggering the same as shall be promulgated by the Housing Rehabilitation Committee.
- ELDERLY HOUSEHOLD
- A family unit where the head of the family unit is 62 years of age or older.
- A sum of money given without obligation by the Housing Rehabilitation Program Seed Fund and, subsequently, the Housing Rehabilitation Revolving Loan Fund to eligible elderly household family units and low-income family units to be used only for the specified rehabilitation project approved by the Housing Rehabilitation Committee.
- HOUSING REHABILITATION PROGRAM SEED FUND
- The fund set up to provide initial financing for operations, loans and grants of the program.
- HOUSING REHABILITATION REVOLVING LOAN FUND
- The successor and eventual replacement fund to the Housing Rehabilitation Program Seed Fund to provide moneys for program operations, loans and grants.
- HUNTERDON COUNTY MEDIAN INCOME
- The median family income adjusted for family size, as determined by the United States Department of Housing and Urban Development, which is published by the New Jersey Housing and Mortgage Finance Agency.
- A sum of money borrowed from and to be repaid to the Housing Rehabilitation Program Fund with interest and principal repayment terms derived from a range of 1% to 3% and one to 15 years, depending on the type of family unit applying and other such criteria as may be adopted by the Housing Rehabilitation Committee to be used only for the specified rehabilitation project approved by the Housing Rehabilitation Committee.
- LOW-INCOME FAMILY UNIT
- A family unit whose gross income is 50% or less than the Hunterdon County median income.
- The Township of Readington's Housing Rehabilitation Program.
- MODERATE-INCOME FAMILY UNIT
- A family unit whose gross income is in the range between and including 51% to 80% of the Hunterdon County median income.
- TOWNSHIP HOMEOWNER
- Any resident of the Township of Readington owning a one- or two-family residence.
The target area for the Housing Rehabilitation Program is Readington Township.
Eligible family units for any kind of assistance under the program are as follows:
A family unit qualifying as a low-income family unit being the owner-occupant of a one-family or two-family dwelling within the target area.
A family unit qualifying as a moderate-income family unit being the owner-occupant of a one-family or two-family dwelling within the target area.
A family unit qualifying as an elderly household being the owner-occupant of a one-family or two-family dwelling within the target area.
Both grants and loans are available under the program to finance the physical construction of approved family unit rehabilitation projects. The maximum amounts of such loans and grants differentiated for the various rehabilitation projects and family units are attached hereto and made a part hereof as Appendix B.
Editor's Note: Appendix B is on file in the office of the Township Clerk, where it may be examined during normal business hours.
All grants and/or loans will be appropriated and approved by the Housing Rehabilitation Committee, subject to appropriations as made by the Readington Township Committee as per § A282-7 herein. In the event that one category of improvement will cost more than maximum allowable loan or grant amount found in Appendix B, the Housing Rehabilitation Committee may increase the approved amount of individual improvement so long as it does not exceed $15,000.
In the event that the maximum amount of $15,000 per family unit must be exceeded to meet the housing rehabilitation standards, as denoted in § A282-9, the Housing Rehabilitation Committee will apply its adopted criteria to determine if the amount of funds needed will exceed 75% of the replacement cost of the entire property.
If the amount exceeds 75% of the replacement cost, the application will not be approved but may be modified to gain subsequent approval.
If the amount does not exceed 75% of the replacement cost, the application will be approved.
The items necessary to make the above comparison are an as-is appraisal of the property and an after-value appraisal.
All applications for a grant and/or a loan must be submitted to the Housing Rehabilitation Committee, and those applications shall be processed chronologically in order of submission.
The Housing Rehabilitation Committee, in the event that an eligible family unit is faced with an emergency problem which is threatening the health and safety of that eligible family unit, can make an immediate emergency grant to said eligible family unit as set forth in § A282-5, provided that family unit meets any conditions properly promulgated by the Housing Rehabilitation Committee. The Housing Rehabilitation Committee shall adopt criteria to indicate whether or not a family unit is facing an emergency problem.
The Housing Rehabilitation Committee shall promulgate whatever other conditions and requirements that in its discretion are felt as being necessary to approve and provide loans and/or grants to eligible family units.
The Housing Rehabilitation Committee shall in its discretion approve loans to certain family units with a deferred repayment schedule. The Housing Rehabilitation Committee shall adopt criteria to determine which family units would be qualified for deferred repayment loans and promulgate requirements and conditions especially suited for deferred repayment loans.
The Housing Rehabilitation Committee may approve a combination grant/loan package for eligible elderly household or low-income family units whose individual rehabilitation project's financial need exceeds the maximum allowable grant of $7,500, making the total for the grant/loan package $15,000. All other loan options will also be extended to such qualified instances, provided that the additional conditions required for the other loan options can be met.
The Housing Rehabilitation Committee shall establish, in conformity with this ordinance, the Housing Rehabilitation Revolving Loan Fund. The Housing Rehabilitation Revolving Loan Fund shall be funded by any and all repayments of loans made from the Housing Rehabilitation Program Seed Fund. Once the Housing Rehabilitation Revolving Loan Fund is sufficiently funded, it will be used to provide moneys for future rehabilitation projects approved under this ordinance; eventually completely replacing the housing Rehabilitation Program Seed Fund.
All loans, grants and loan/grant packages made under this ordinance shall comply with all applicable federal, state and local laws as well as observing the requirements of the New Jersey Council on Affordable Housing.
The Readington Township Housing Rehabilitation Program and the Housing Rehabilitation Program Seed Fund shall be funded, although not limited to, by one or more of the following:
Readington Township Housing Trust Fund.
New Jersey Department of Community Neighborhood Preservation Balanced Housing Program.
United States Department of Housing and Urban Development Small Cities Community Development Block Grant Program.
Moneys appropriated by the Readington Township Committee in its budget.
Bonding ordinance enacted by the Readington Township Committee.
The Township Committee shall make such modifications as is necessary to this ordinance to comply with any regulations to qualify the program to receive funding from any state or federal source.
Any improvement will qualify under the program as it is necessary to restore or bring up to the applicable property rehabilitation standards, as denoted in § A282-9, for any one- or two-family residence of an eligible family unit.
Every eligible family unit that applies for and qualifies for financial assistance under this program shall comply with the following property rehabilitation standards, codes and ordinances:
Codes and ordinances.
The BOCA Existing Structures Code of 1987.
Standards for the Construction of Individual Subsurface Sewage Disposal Systems, as promulgated by the New Jersey Department of Environmental Protection, for a property with an individual sewage disposal unit.
Standards for the Construction of Public Noncommunity and Nonpublic Water Systems, as promulgated by the New Jersey Department of Environmental Protection, for buildings not connected to a public water supply system.
Any other applicable codes or ordinances of the Township of Readington, now or in the future being in existence.
The entire program administration will be the sole responsibility of the Housing Rehabilitation Committee. The Housing Rehabilitation Committee will be composed of 5 members, each with joint and severable tasks. The members of the Housing Rehabilitation Committee shall be selected and have their terms of office determined by the Township Committee of the Township of Readington.
The powers of the Housing Rehabilitation Committee are as follows:
To approve or disapprove of each application based on the criteria set forth in this program as well as any requirements or conditions promulgated by the Committee in furtherance of this ordinance.
To manage, invest, control, make disbursements on, make deposits thereto and keep records for the Housing Rehabilitation Program Seed Fund and the Housing Rehabilitation Program Seed Fund and the Housing Rehabilitation Revolving Loan Fund.
To inspect, control and give approval to any construction paid for by loans or grants from this program to properties of approved eligible family units.
To enforce repayment of any loans made under this program.
To be assisted by the Citizens Advisory Committee.
To increase, loan or grant any additional moneys required to correct unforeseen defective conditions which arise after the construction contracts for the individual rehabilitation projects have been executed and construction is under way; including promulgating procedures to effectuate such a correction.
To promulgate any regulations, requirements or conditions necessary for implementation and operation of each and every part of the program.
To develop any forms necessary to process any applications, loans, contracts inspections, completions, etc.
The Citizens Advisory Committee shall be comprised of no more than five township homeowners appointed by the Mayor of the Township of Readington to assist the Housing Rehabilitation Committee in its duties and operations.
The costs of improvements initiated or completed prior to the enactment of this ordinance and prior to the approval of an application made hereunder will not be eligible for inclusion in this program.
[Amended 12-28-1989 by Ord. No. 271-89]
The Policy Guidelines, Procedures Manual and Exhibits Sections of the Housing Rehabilitation Program of Readington Township, New Jersey, as drawn by Clarke & Caton, 342 West State Street, Trenton, New Jersey 08618, are incorporated by specific reference to them and made a part of this ordinance as if more fully set forth at length herein. Three copies of aforesaid documents are on file with the Clerk of Readington Township.