Township of Cinnaminson, NJ
Burlington County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Township Committee of the Township of Cinnaminson 12-12-1990 by Ord. No. 1990-30 (Sec. 2.84 of the 1995 Code). Amendments noted where applicable.]
GENERAL REFERENCES
Development fees — See Ch. 265.
Redevelopment — See Ch. 411.
Subdivision of land — See Ch. 455.
Zoning — See Ch. 525.
As used in this chapter, the following terms shall have the meanings indicated:
AFFORDABLE HOUSING PLAN
The document required to be submitted to and approved by the Planning Board on an application for inclusionary development. The plan should include at a minimum the number of low- and/or moderate-income units within the development, their location within the development and their phasing within the development.
AFFORDABLE RENTAL CHARGES AND AFFORDABLE SALES PRICE, FINAL
The actual rental charge or sales price which is charged to a low- or moderate-income family. The calculations shall be monitored administratively through the Housing Officer as directed by the Township Committee, so that any inclusionary development will, once fully rented and/or sold, have a development-wide average affordability threshold of 45% of median income for low-income households and 65% of median income for moderate-income households, both adjusted for family size.
A. 
The preliminary affordable rental charge shall be calculated such that the sum of the monthly rental payment, including utilities, does not exceed 30% of the monthly current low- or moderate-income ceiling. If the cost of utilities is not included in the monthly rental charge, estimated monthly cost for utilities shall be calculated using estimating techniques generally accepted by the housing industry. Utilities shall include the cost of providing heat, water, hot water and electricity.
B. 
The preliminary affordable sales price shall be calculated such that the sum of the monthly payments for principal, interest, taxes, fire, theft and liability insurance and any homeowners' association fees shall not exceed 28% of the monthly current low- or moderate-income ceiling. A ten-percent down payment requirement and a thirty-year mortgage term shall be assumed in making this calculation. In calculating the monthly payment, the interest rate, regardless of the specific mortgage interest of any individual purchasers, shall be equivalent to the thirty-year Treasury Security index rate as in effect on January 1 of each year so that the prices will be adjusted annually in response to changing rates.
AFFORDABLE UNIT
Either a low-income unit or moderate-income unit as defined herein.
CPI
The consumer price index for all consumers as established for the region, as defined in these definitions.
DEVELOPER
The person, firm or corporation who has received Cinnaminson Township Planning Board approval on an application for development which is subject to the provisions of Chapter 525, Zoning, of the Code of the Township of Cinnaminson to construct low- and moderate-income housing in the L/M Overlay Residence District(s) within Cinnaminson Township. "Developer" includes the successors in interest of any person, firm or corporation who receives such Cinnaminson Township Planning Board approval on an application for development.
ELIGIBLE CAPITAL IMPROVEMENT
A modification, alteration or addition made to a unit which renders the unit suitable for a larger household and/or increases the energy efficiency or livability of the unit and/or is needed for the health and safety of the occupants and is approved by the Township Housing Officer.
FAMILY
One or more persons living as a single, nonprofit housekeeping unit, as distinguished from individuals or groups occupying a hotel, club or fraternity or sorority house or boarding home.
GROSS AGGREGATE FAMILY INCOME
The total annual income from all sources of all members of the household.
HOUSING OFFICE
The Affordable Housing Office established by the Township Committee.
HOUSING OFFICER
The person within the Housing Office responsible for the administration of this chapter, subject to the supervision of the Township Committee.
INCOME
Includes revenue and receipts, actual or fairly imputed, from all sources, including but not limited to wages, interest, dividends, social security, pensions, government benefits, alimony, child support and rents from income property.
INCOME CEILING
Eighty percent of the median income for the region for a moderate-income family and 50% of the median income for the region for a low-income family.
INITIAL RENTAL
The first transfer of occupancy from a developer to a qualified renter.
INITIAL SALE
The first transfer of title of a unit from a developer to a qualified buyer.
LOW-INCOME FAMILY
A family whose gross aggregate family income is not greater than 50% of the median income of the region with adjustments for smaller or larger families.
LOW-INCOME UNIT
A unit approved and/or constructed pursuant to this chapter and Chapter 525, Zoning, of the Code of the Township of Cinnaminson from time to time to provide housing for low-income families, which is sold at a final affordable sales price or is rented at a final affordable rental charge to a low-income family.
MARKET UNIT
Any unit which is not required to be sold or rented as a low- and/or moderate-income unit.
MEDIAN INCOME
Shall be determined for a region encompassing Mercer, Burlington, Camden and Gloucester Counties and for family size using periodic income estimates and standard coefficients of the United States Department of Housing and Urban Development. The Housing Officer shall administratively certify the median income to be used. The Housing Officer shall make a new certification upon the receipt of annual estimates from the United States Department of Housing and Urban Development.
MODERATE-INCOME FAMILY
A family whose gross aggregate family income is no greater than 80% and no less than 50% of the median income of the region, with adjustments for smaller and larger families.
MODERATE-INCOME UNIT
A unit approved and/or constructed pursuant to this chapter to provide housing for moderate-income families, which is sold at a final affordable sales price to a moderate-income family or rented at a final affordable rental charge to a moderate-income family.
ORDINANCE
This chapter entitled an "Ordinance of the Township of Cinnaminson Pertaining to Affordable Housing."
OWNER
The person(s) who has title to a low-income unit or a moderate-income unit.
QUALIFIED LOW-INCOME BUYER
A person who submits an application for certification as a qualified buyer to the Township's Housing Officer and whose gross aggregate family income at the time of application for a low-income unit is within low-income levels and who obtains certification as a qualified buyer of a low-income unit from the Housing Officer.
QUALIFIED LOW-INCOME RENTER
A person who submits an application for certification as a qualified renter to the Township's Housing Officer and whose gross aggregate family income at the time of application for the rental of a low-income unit is within low-income levels and who obtains certification as a qualified renter of a low-income unit from the Housing Officer. Renters must be recertified annually or upon lease renewal, whichever occurs first, in order to continue to be a qualified low-income renter.
QUALIFIED MODERATE-INCOME BUYER
A person who submits an application for certification as a qualified buyer to the Township's Housing Officer and whose gross aggregate family income at the time of application for a moderate-income unit is within moderate-income levels and who obtains certification as a qualified buyer of a moderate-income unit from the Housing Officer.
QUALIFIED MODERATE-INCOME RENTER
A person who submits an application for certification as a qualified renter to the Township's Housing Officer and whose gross aggregate family income at the time of application for the rental of a moderate-income unit is within moderate-income levels and who obtains a certification as a qualified renter of a moderate-income unit from the Housing Officer. Renters must be recertified annually or upon lease renewal, whichever comes first, in order to continue to be a qualified moderate-income renter.
REGION
For purposes of defining "median income," Mercer, Burlington, Camden and Gloucester Counties.
RENTER
A person other than an owner who has the right to possession of a unit by virtue of a lease, whether written or oral, and who, in fact, occupies a low-income unit or a moderate-income unit.
RERENTAL
Transfer of occupancy after initial rental has terminated.
RESALE
Transfer of title after initial sale.
RESALE PRICE
The affordable sales price increased by the CPI pursuant to this chapter.
RESIDENT
A person who resides in the Township of Cinnaminson or the parent(s) or children of such person.
SPECIAL-EXEMPTION QUALIFIED BUYER
A buyer who exceeds the income ceiling but who is qualified by the Housing Office to purchase a unit pursuant to the inability to sell or rent provisions and requirements of this chapter.
STATEMENT OF EXEMPTION
A document issued by the Housing Office allowing a special-exemption qualified buyer to purchase a unit pursuant to the inability to sell or rent provisions and requirements of this chapter.
SURCHARGE
An additional authorized charge which is paid by a buyer to an owner but which shall be excluded from the calculation of the resale price.
TOTAL MONTHLY HOUSING COST
The total of the following monthly payments associated with the cost of housing: mortgage payment (principal, interest and private mortgage insurance), applicable assessments by a homeowners' association, real estate taxes and fire, theft and liability insurance.
UNIT
Dwelling space for which a certificate of occupancy has been obtained and which is sold or leased to a qualified buyer/renter subject to this chapter.
All inclusionary developments will be required to provide half of the affordable units affordable to low-income households and half of the affordable units affordable to moderate-income households. For purposes of calculating affordability, the following guidelines shall apply:
A. 
Median income will be determined for a region encompassing Mercer, Burlington, Camden and Gloucester Counties and adjusted for family size using periodic income estimates and standard coefficients of the United States Department of Housing and Urban Development. Current low- and moderate-income ceilings shall be maintained on file in the Housing Office and by the Housing Officer and by the Township Committee.
B. 
The average affordability thresholds shall be 45% of median income for low-income households and 65% of median income for moderate-income households, both adjusted for family size pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
C. 
For the purposes of calculating the cost of affordable rental housing, no more than 30% of gross household income shall be devoted to payment of gross rent, including all utilities. In the case of sales housing, no more than 28% of gross household income shall be devoted to the payment of principal and interest on a mortgage, real estate taxes, insurance and condominium or homeowners' association fees (if any), assuming a ninety-percent mortgage.
D. 
Applicants for purchase or rental of low- or moderate-income units shall be qualified based on calculations of their gross aggregate family income at the time of application, unless the applicant or the Housing Officer substantiates that the gross aggregate income at the time of application is not representative of the applicant's real income. No limitation or consideration will be given to the extent of an applicant's assets, except that the income received or fairly imputed from those assets shall be considered in the calculation of gross family income.
E. 
Residency or employment in Township.
(1) 
Applications where one or more of the persons who will occupy a dwelling unit is a Cinnaminson Township resident, as defined in this chapter, at the time of making the application as a qualified buyer of low- or moderate-income housing or a qualified renter of low- or moderate-income housing will participate in the first lottery to determine position on a list to be used to fill the units.
(2) 
Applications where one or more of the persons who will occupy a dwelling unit are employed by the Township of Cinnaminson or the Cinnaminson Township Board of Education or the Cinnaminson Sewerage Authority at the time of application will participate in the second lottery to determine position on a list to be used to fill the units.
(3) 
No more than 50% of all applications may participate in the lotteries referred to in Subsection E herein.
A. 
Initial determination of eligibility.
(1) 
A determination of eligibility for initial occupancy shall be made by either the Cinnaminson Township Housing official or the inclusionary developer, at the option of the developer. Should the developer choose to make the determination of eligibility, he shall use the rules, regulations and procedures developed by the Township to qualify and determine eligible occupants. In those cases where the developer chooses to income qualify and determine the occupants of the units, he shall submit all names which he has approved to the Township for a determination based upon the information submitted in accordance with the Township's regulations. Before occupancy, the Housing Officer must certify that the occupant's income does not exceed the standards established in this chapter, that the preliminary and final affordable sale price or rental charge does not exceed the ceilings established in this chapter and that the household is of the appropriate size for the unit to be occupied pursuant to this section.
(2) 
The Township may contract for this service to be performed by any responsible nonprofit corporation or agency of county or state government qualified to provide this service.
(3) 
No unit shall be sold, occupied or rented to low- or moderate-income persons until the determination set forth in this section is obtained; provided, however, that if the determination is to be made by the Township and is not made within 30 days, the developer shall have the right to determine income eligibility pursuant to Subsection A(1) herein or have the determination made by either a responsible nonprofit corporation or agency of the county or state government qualified to provide this service. A copy of the approvals shall be kept on file at the Township and shall be available to the public.
(4) 
Penalty. Any person who receives certification or recertification as a qualified low-income buyer, low-income renter, moderate-income buyer or moderate-income renter based upon false information shall be subject to the general penalty provisions of this chapter and shall also be subject to a forfeiture of his or her tenancy or ownership and title to a low- or moderate-income unit.
B. 
Initial sale or rental of low- and moderate-income units.
(1) 
Three-bedroom units shall be, as best as is practicable, initially offered to households consisting of at least three residents, at least one of whom shall be a child under the age of 18 years. First priority shall be given to households with a size of five or more, then to households with a size of four and then to households with a size of three. Occupancy of three-bedroom units shall not exceed six.
(2) 
Two-bedroom units shall be, as best as is practicable, initially offered to households with a size of four or three residents or to households with two persons, provided that one is a single head of household and the other is a child under the age of 18 years. The first priority shall be given to households with a size of four, then priority shall be given to a household with a size of three and then to households with a size of two.
(3) 
One-bedroom units shall be, as best as is practicable, made offered to a household with a size of one or two. First priority shall be given to a household with the size of two.
(4) 
Efficiency units shall, as best as is practicable, be made available to persons with households of a size of one or two.
(5) 
These requirements shall be applicable to all inclusionary developments within the Township except those which are age-restricted or for senior citizens.
(6) 
When establishing initial affordable sales prices, the developer shall submit to the Township's Housing Officer the data to substantiate his estimates of property taxes, homeowners' insurance and/or homeowners' association dues. Property taxes shall be based on assessments which reflect the restricted affordable sales price of each unit. Owners of low- and moderate-income units shall pay their fair share of homeowners' or condominium association dues, and the developers shall indicate the basis on which the dues are apportioned (e.g., per unit, per square foot, per assessed value, etc.). The developers shall describe the homeowners' insurance coverage provided under the homeowners' association policy and substantiate any estimated premiums to be paid by the owner for coverage provided above and beyond that provided under the association's policy.
(7) 
Procedures for initial sale or rental.
(a) 
Responsibilities of the developer.
[1] 
A determination of eligibility for initial occupation for any low- or moderate-income unit shall be made by either the Cinnaminson Housing Officer or the developer of the units, at the option of the developer. In either case, the developer shall submit to the Township's Housing Officer the following items:
[a] 
A copy of the affordable housing plan as approved by the Planning Board Attorney and recorded with the office of the County Clerk, with recording information imprinted thereon.
[b] 
If not included in the affordable housing plan, itemization and specification of the number and type of low- and moderate-income units, where these units are located in each building and proposed floor plans for each type of unit.
[c] 
The proposed initial affordable sales price/rental charge for each type of unit, supported by details as to how such prices/charges were derived, including a certification as to the actual interest rates which are currently available to prospective qualified buyers.
[2] 
When the developer chooses to prequalify prospective buyers/renters, he shall also provide:
[a] 
Proof that the prospective buyer/renter has been notified in writing that the purchase/lease will be subject to the terms and conditions of the affordable housing plan and the regulations established in this chapter which place certain restrictions on occupancy and resale.
[b] 
In the event of a rental, the lease document shall contain language which will prevent and prohibit the renter from assigning or subletting the lease or permitting occupancy of the apartment by anyone who is not a qualified renter. The lease shall also contain language to specifically advise and forewarn the renter that the right to continue in occupancy and possession of the unit is subject to the condition that the renter's income does not exceed 120% of the moderate-income ceiling.
[c] 
Completed applications on forms provided by the Township, with all appropriate supporting documentation, for review and certification by the Housing Officer.
[3] 
All certified applications will be placed in the appropriate lottery to determine order of placement. Where applicants contact the Township and the developer is handling prequalification, applicants may be sent to the developer or can file forms with the Housing Officer directly. Participation in any lottery will be precluded after a specified date as determined and announced by the Township and/or the developer.
[4] 
When the unit and buyer/renter have been matched, the developer must:
[a] 
Provide a copy of the completed contract of sale or lease within 30 days of signing by the qualified buyer/renter.
[b] 
With respect to a sale, provide copies of the deed and closing statement within 30 days of closing. With respect to a lease, provide a copy of the fully executed lease within 30 days of signing.
(b) 
Responsibilities of the Housing Officer.
[1] 
The Housing Officer shall, within 30 days after receipt of a completed application from the developer, review the documentation and determine if the buyer/renter is qualified. The Housing Officer shall notify the prospective buyer/renter of the determination and the date of the appropriate lottery drawing.
[2] 
When unit and buyer/renter have been matched, the Housing Officer shall notify the buyer/renter, in writing, of his/her/their obligations to the Township Housing Officer in the event of a resale or release of the unit.
(c) 
Responsibilities of the applicant. The applicant shall complete and sign the application for certification as a qualified purchaser/renter of low- or moderate-income affordable housing and submit the same to the appropriate developer or the Township Housing Officer.
(d) 
The developer or an applicant may appeal the determination of the Housing Officer by filing a written request for review with the Township Committee. Such appeal may be accomplished by letter, identifying the name of the person appealing, the date of the original application and the date of the determination being appealed. Additional reasons for the appeal can be included. The appeal must be filed within five days of the determination by the Housing Officer. The Township Committee shall determine the issue of eligibility within 25 days of receipt of the appeal and notify all interested parties of the determination.
C. 
Resale of low- and moderate-income housing.
(1) 
The Township shall maintain a list of low- and moderate-income households who seek to acquire low- and moderate-income housing. The owner of any low- and moderate-income unit being resold shall offer the unit to the first five persons or households upon the Township list. If no person on the list offers to purchase the unit within 30 days of notification at the maximum permitted price, then the owner may seek to sell the unit to any low- or moderate-income household, whether on the list or not. The Township shall make a determination that any prospective purchaser is a low- and moderate-income person within the meaning of this chapter. In the event that the owner/applicant submits an affidavit to the Township demonstrating that he or she has, for a sixty-day period, been unable to find any such purchaser despite diligent advertising, then the Township may issue a certification permitting him or her to increase the income ceiling of an eligible purchaser by 10% a month, provided that the sales price shall not exceed the price which it could have been sold to a low- and moderate-income person and provided that all the resale controls of the unit shall remain in effect for subsequent sales.
(2) 
Resale and rerental levels. The Township Committee may direct an inclusionary developer which processed and administered sales and leases to initial home buyers and renters to process and administer resales of low- and moderate-income units within the development until 90 days after the last affordable unit is initially sold or rented. After eligibility, qualifications and processing involvement of the developer are completed, the Township may elect to designate the Housing Officer as the party responsible for resale or rerental qualifications and may contract for this service to be performed by any responsible nonprofit corporation or agency of county or state government qualified to provide this service, including but not limited to the New Jersey Housing Mortgage Finance Agency. The person or entity handling and administering resales and rerentals shall apply the standards and criteria set forth in this chapter.
(3) 
Low-income units shall be resold or rerented only to low-income households, and moderate-income units may be resold or rerented to low- or to moderate-income households, except as provided for herein.
(4) 
Resale price.
(a) 
The unit at resale may not be sold for a price which exceeds the sum of the following:
[1] 
The original sales price.
[2] 
The original sales price multiplied by the percentage increase in the consumer price index from the period consisting of the most recent date for which the information is available at the time the unit is offered for resale minus the consumer price index at the date immediately prior sale.
[3] 
Any cost of selling the unit, including realtor's commissions.
[4] 
The cost of reasonable improvements to the units as determined by the Cinnaminson Housing Officer.
(b) 
Seventy-five percent of the increase attributable to the increase in the consumer price index shall be paid to the seller; 25% of the increase attributable to the increase in the consumer price index shall be paid to the Township to fund a down payment assistance program for subsequent purchasers or to prevent foreclosures of inclusionary units.
(5) 
Duration of resale controls. The resale controls shall remain in effect for a period of at least 30 years from the date of the initial sale. After 30 years, the units may be sold to any purchaser without price controls, provided that in the case of the first sale after the expiration of the controls, 25% of the difference between the sales price or the fair market value of the unit, whichever is greater, minus the sales price which could have been obtained by the purchaser in the month before the resale controls ended shall be paid to the municipality to assist the municipality in maintaining the down payment assistance program described in this chapter or any other legitimate housing program for low- and moderate-income persons.
(6) 
Procedures for resale.
(a) 
When an owner wants to sell a low- or moderate-income unit that he owns, pursuant to the provisions of this chapter, the owner shall notify the Housing Officer, in writing, of his/her intention to sell. Said written notice must contain the name of the present owner, the address of the property and the Cinnaminson Township Tax Map block and lot of the property.
(b) 
The Housing Official will be responsible for certifying the allowable resale price and for notifying the owner of his/her obligations pertaining to resale under the terms of this chapter.
(c) 
The Housing Official shall collect and maintain an inventory of applications from qualified buyers/renters equal to 10% of the number of low- and moderate-income units that have received certificates of occupancy. The Housing Official shall also receive and keep on file preapplications submitted by interested persons so that the ten-percent inventory can be updated and maintained in a current condition. The preapplications shall be stamped in by date received and qualified in the order in which they were received. The Housing Official is authorized to accept preapplications without supporting income data so that prospective applicants and the Housing Office are not burdened with stale financial information. This Subsection C(6)(c) shall be applicable to the general provisions governing tenant recertification.
(d) 
The owner shall not sign a contract of sale with any individual not certified by the Township Housing Official.
(e) 
The owner shall submit to the Housing Officer the contract of sale and the certification of compliance with respect to resale price, signed by both the owner and the buyer and notarized. The certification must also be signed by a principal of any licensed real estate broker that participated in the transaction. The certification shall state that the contract of sale, if a copy, is a true and accurate copy and contains all of terms and conditions of sale and that there are not private arrangements between the parties which would in any way provide for payment by the buyer to the owner or any other person, firm or organization of any additional amount which would violate the affordable sales price as provided for in this chapter. The certification shall also state that its contents are true and that any false statement or omission shall subject the signers to the penalties of appropriate provisions of law. Unless and until the certification and true copy of the contract of sale is filed with the Housing Office, no closing shall be permitted and no transfer of title shall be permitted.
(f) 
The owner shall notify the Housing Officer of the date, time and place the closing is scheduled to occur.
(g) 
The owner and buyer shall each sign at the closing and shall file with the Housing Office a notarized certification on closing. This certification on closing shall state that the closing took place pursuant to the contract of sale; that the closing statement, which must be attached, is a true and accurate copy and contains all the credit and debits between the parties; that there are no private arrangements between the parties which in any way resulted in the payment by the buyer to the owner or any other person, firm or organization of any additional amount which would violate the affordable sales price provided for in this chapter. The certification on closing shall also state that its contents are true and that any false statement or omission shall subject the signers to the penalties of the appropriate provisions of law. The certificate of closing will be filed within five days of the closing. Unless and until the certification on closing is filed by both the buyer and the owner with the Housing Office, the sale shall be voidable at the discretion of the Housing Office and/or Township Committee.
(h) 
The owner shall be obligated to accept and sign a contract of sale with a buyer qualified by the Housing Office, subject to usual mortgage contingency and attorney review rights, which shall be preserved. Any contract, however, shall specifically be subject to this chapter and the parties in faithful compliance with the same.
(i) 
If a contract of sale is canceled by the buyer because of a failure of any contingency clause in the contract, then the Housing Officer shall reinitiate the process.
(j) 
Should the owner locate a buyer from outside established waiting lists under the terms of Subsection C(1) above, then the prospective buyer has the following responsibilities:
[1] 
The prospective buyer shall complete and sign the application for certification as a qualified buyer/renter of low- or moderate-income affordable housing and submit the same to the Township Housing Office.
[2] 
The prospective buyer shall submit with the above application all pertinent documentation required by the Housing Office.
[3] 
The prospective buyer shall submit evidence that he/she has sufficient assets available to meet down payment and closing costs.
[4] 
The prospective buyer must be certified as a qualified buyer by the Housing Officer.
D. 
Foreclosure.
(1) 
Upon foreclosure of a low- and moderate-income unit by a first mortgagee, the resale restriction imposed by this chapter will terminate only with respect to that unit which has been subjected to foreclosure, unless said first mortgage exceeded 95% of the maximum sales price of the unit on the date the mortgage was entered into. In the event that the unit is exempt from resale restriction upon first mortgage foreclosure, no further control shall be imposed upon the unit or upon any subsequent purchaser. This exemption from resale restriction upon foreclosure shall not be applicable to the holders of second or subsequent mortgages. The former owner of a low- and moderate-income unit sold under a foreclosure decree shall be entitled to no more of the sale proceeds than the amount to which such owner would have been entitled if the unit were sold for the maximum resale price set forth above in the body of this chapter, less the following amounts:
(a) 
The amount of any taxes or governmental assessment outstanding, together with interest costs and reasonable attorney's fees.
(b) 
The amount due of the first purchase money mortgage, together with interest costs and reasonable attorney's fees.
(c) 
The amount of any outstanding assessments.
(d) 
The amount due to any subsequent lienholder with interest, costs and reasonable attorney's fees.
(2) 
Any and all proceeds of the foreclosure sale in excess of the amount to which the former owner is entitled shall be irrevocably paid to the Township for use in a down payment assistance program or any other legitimate housing program for low- and moderate-income persons.
E. 
Covenants. No inclusionary developer shall sell a low- and moderate-income unit unless he or she has included in the deed covenants that contain the provisions with respect to occupants' income, unit price, household size and any other applicable administrative section of this chapter. These covenants shall specifically state that they run with the land with respect to each low- and moderate-income unit and shall bind all subsequent purchasers of each unit, their heirs, executors, administrators and assigns unless specifically exempt as set forth below. In the event that any unit is sold without such a covenant, the inclusionary developer shall have the obligation to provide one additional low- and moderate-income unit for each unit which does not have such a covenant.
F. 
Exemptions.
(1) 
The restrictions on resales shall not apply to the following:
(a) 
Transfer of ownership of a unit between husband and wife or between former spouses ordered as a result of a judicial decree of divorce (not including sales to third parties).
(b) 
Transfer of ownership of a unit between family members as a result of inheritance or through executor's deed to any such person.
(2) 
Such transfers do not extinguish the covenants and the covenants shall be fully satisfied prior to any subsequent sale of a unit to any nonexempt party.
G. 
Condominiums. A rental unit occupied by a low- and moderate-income household may be converted to a condominium unit at any time after a minimum of 10 years of rental occupancy. The low-income units, however, shall be sold only to low-income persons and at a price which may not exceed the price permitted in this chapter.
H. 
Breach. The Cinnaminson Housing Official shall serve a notice of breach upon the owner of any low- and moderate-income sales unit in the event that the Township finds that the owner has violated any provisions of this chapter. Such owner shall have a period of 30 days to cure such violation or to place the unit on the market for resale in accordance with the terms of this chapter. Failure or refusal of the owner to cure the violation or place the unit on the market for resale in accordance with the terms of this chapter shall authorize the Township to immediately commence an action to obtain a judgment against the owner to the effect that the owner is in violation of the terms of the covenant. Such judgment shall be enforceable in the same manner as if it were a judgment of default of the first purchase money mortgage and shall constitute a lien against the unit. Said judgment shall be enforceable at the same option of the Township by means of immediate Sheriff's sale at which the unit shall be sold, at a price not less than the amount necessary to fully satisfy any first mortgage lien in full compliance with the terms of this chapter, and the owner shall have his right to possession terminated as well as his title conveyed pursuant to the Sheriff's sale. The proceeds of the Sheriff's sale shall first be applied to satisfy the purchase money mortgage lien upon the unit. The excess, if any, shall be applied to reimburse the Township for any and all costs and expenses incurred in connection with either the court action or the Sheriff's sale, including reasonable attorney's fees. If there is no excess or if the excess is insufficient to reimburse the Township, then the sales price of the unit may be increased to the extent necessary to provide such reimbursement, and this amount shall constitute a lien against the unit. The owner shall be entitled to such amount of the surplus as he would be entitled to if the unit were sold in accordance with the provisions contained in this chapter pertaining to resales. The Township may acquire title to the unit in the same manner as any other purchaser. The agency shall subsequently sell or rent the unit in accordance with the terms of this chapter.
I. 
Marketing. Each inclusionary developer shall formulate and implement a written affirmative marketing plan consistent with the Township's regulations. The affirmative marketing plan shall be realistically designed to ensure that the low-income persons of all races and ethnic groups are informed of the housing opportunities in the development and have the opportunity to buy or rent such housing. It shall include advertising and other outreach activities realistically designed to reach lower-income persons of all races and ethnic groups.
J. 
Procedures for recertification of tenants.
(1) 
Responsibilities of the developer.
(a) 
The developer of low- and/or moderate-income rental units shall certify annually, in the month of January, that their rental prices comply with the low- and moderate-income affordable rental charges currently established under the terms of this chapter and shall submit a certified rent roll showing apartment numbers, name(s) of all tenants and rent charges.
(b) 
Existing renters' income eligibility will be recertified annually. The developer will be responsible for gathering updated documentation, as was required upon initial occupancy, and submitting that documentation and recertification form to the Housing Officer for recertification. These forms and documentation shall be filed with the Housing Officer at least 60 days before the anniversary of the lease inception.
(2) 
Responsibilities of the Housing Officer.
(a) 
The Housing Officer shall notify all developers of low- and/or moderate-income rental units of any adjustments in income ceilings and/or affordable rental charges.
(b) 
The Housing Officer shall send to the developer a current copy of this chapter and any rules and regulations developed pursuant to it, application forms and list of required documentation to be submitted by any renter.
(c) 
The Housing Officer shall, within 30 days of receipt of a complete application from the developer, review the documentation and determine if the renter remains qualified. The Housing Officer shall notify the renter and the developer of the determination in writing.
(3) 
Responsibilities of renter applying for recertification.
(a) 
The renter shall complete and sign the application for recertification as a qualified renter of low- and/or moderate-income affordable housing and submit the same to the developer.
(b) 
The renter shall submit with the above application all pertinent documentation required by the Housing Officer.
(4) 
Procedure in the event a renter is no longer qualified. If it is determined that an existing renter's income exceeds the relevant income ceiling, the following will apply:
(a) 
If the renter's income does not exceed 120% of the income ceiling for which he/she originally qualified, the renter may continue in occupancy and shall pay a rent which is greater than the applicable final affordable rental charge, such that the total cost for rent and utilities equals 30% of the renter's gross aggregate family income. That portion of the rent which is greater than the applicable final affordable rental charge (excess rental income) which is paid by renters who are between 100% and 120% of the income ceiling in the income category for which they were qualified shall be paid to the developer. However, the developer shall be required to rebate 50% of the excess rental income to the Township for the prior calendar year, in January of each year.
(b) 
If the renter is occupying a moderate-income unit and the renter's income exceeds 120% of the moderate-income ceiling, the developer shall immediately serve the requisite notice to quit and demand for possession and shall thereafter commence a summary proceeding for possession of the unit. Copies of the notice to quit and the tenancy complaint shall be filed with the Housing Office, and the developer shall advise the Housing Officer when the writ of possession is issued and when the apartment is actually vacated.
(c) 
If the gross aggregate family income of a previously qualified moderate-income renter falls below the low-income ceiling, as soon as a low-income family vacates, that renter may be requalified as a low-income renter and only be responsible for paying the affordable rental charge for a low-income unit. That rental unit will then be counted as one of the low-income rental units. The developer then may fill the vacant rental unit with a new qualified moderate-income renter who will pay the affordable rental charge for a moderate-income unit.
(5) 
If an apartment is vacated as a result of failing to requalify a renter, the same procedure will be followed by the developer, the Housing Officer and the applicant as on initial occupancy of the rental unit.
Dwelling units which are not built pursuant to one of the above programs, but whose sale or rental price qualifies them for low- and moderate-income occupancy, and which can be counted in the fair-share allocation, shall not be subject to the above restrictions pertaining to affordability or to the administrative procedures dealing with sale and resale, letting and reletting.
A. 
In the event that low- and moderate-income units cannot be sold or rented, as applicable, within six months of being substantially completed and offered for sale or rent, any inclusionary developer may apply to the Township Committee for relief. Such application must provide evidence of the developer's having undertaken an affirmative marketing effort to sell or rent the units. Relief to the developers shall not include exempting the units from the low- and moderate-income sales prices or rent levels, nor shall relief include exempting the units from restrictions on appreciation allowable upon resale or restrictions on escalation allowable upon rerental.
B. 
The Township Committee may allow a special exemption qualified buyer/renter to purchase or rent any inclusionary unit based upon a statement of exemptions and surcharge if the Township Committee finds it appropriate. The Township Committee is not limited to this section or to those methods of relief.
A. 
The Township's Housing Office and Housing Officer are responsible for the enforcement of this chapter. Any person(s) violating any provision of this chapter shall be subject to prosecution in the Cinnaminson Township Municipal Court.
B. 
In addition to prosecution, the Township may apply to the Superior Court of New Jersey for such legal or equitable relief as it deems the circumstances to require in order to further the intent and purposes of this chapter or to prevent continuing violation of the ordinance.
C. 
Any person violating any provision of this chapter shall be responsible for all costs and expenses, including attorney's fees, incurred by the Township in the enforcement process.
D. 
The Township shall encourage the resolution of disputes and other issues regarding alleged violations of this chapter by mediation and conciliation. To that end, the Housing Office, through the Housing Officer, shall provide the person suspected of any violation with prior notice and an opportunity to respond in writing to the issues raised in the notice. After developing all the facts possible from available sources, the Housing Officer shall prepare a written report to the Township Committee which will then determine what particular steps shall be taken to provide for prompt and efficient enforcement.
E. 
The requirements and provisions of this chapter pertaining to administrative procedures for sale and rental are incorporated by reference into this subsection.
F. 
Any person, firm or corporation who shall violate any of the provisions of this chapter shall, upon conviction, be punished by a fine not to exceed $1,000 or by imprisonment in the county jail for a period not to exceed 90 days, or by both such fine and imprisonment. Each violation of any of the provisions of this chapter and each day the same is violated shall be deemed and taken to be a separate and distinct offense.
Any person adversely affected by strict adherence to this chapter may apply to the Township Committee or its designee for a waiver or interpretation of that section which adversely impacts his/her situation. Such application shall be in writing and contain a full statement of the facts and circumstances. The Township Committee or its designees shall consider such a request and shall advise such person as to whether relief is to be granted. In considering such requests, the Township Committee or its designee shall give primary consideration to the purpose underlying this chapter and the specific regulation involved and shall weigh this purpose against the specific reasons sought to justify a departure or modification.
The Housing Officer shall create and from time to time supplement and/or modify application forms so that the information needed to make a fair evaluation of income eligibility may be obtained. At a minimum, this form shall include current information regarding the applicant's family size, income and expenses and assets and liabilities.
The Housing Office may, from time to time, recommend to the Township Committee such revisions, revocations or supplements as that office may deem appropriate in furthering the purposes and intent of this chapter. Once accepted by the Township Committee, such revisions, revocations and/or supplements shall serve as an effective supplementation to this chapter. In the event that such revisions are necessary to properly administer this chapter, such revisions need not be made the subject of a supplementary or amendatory ordinance to have full effect. Such revisions or supplementations shall be generally known as "supplementary rules and regulations" under this chapter.
[Added 3-15-2006 by Ord. No. 2006-7; amended 11-21-2016 by Ord. No. 2016-14]
The provisions in this chapter are intended to be in compliance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq. (UHAC), which are incorporated by reference herein as if set forth herein at length. UHAC shall govern in the event of conflict with any other provision in this chapter.
[Added 3-1-2010 by Ord. No. 2010-5]
A. 
Purpose. The purpose of this section is to create the administrative mechanisms needed for the execution of Cinnaminson Township's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985.
B. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for Cinnaminson Township. All references to "Housing Officer" in Chapter 145 of the Township Code shall be construed to mean "Municipal Housing Liaison."
C. 
Establishment of Municipal Housing Liaison position and powers and duties.
(1) 
Establishment of position of Municipal Housing Liaison. There is hereby established the position of Municipal Housing Liaison for the Township of Cinnaminson.
(2) 
Subject to the approval of the Council on Affordable Housing (COAH), the Municipal Housing Liaison shall be appointed by the governing body and may be a full- or part-time municipal employee.
(3) 
The Municipal Housing Liaison shall be responsible for oversight and administration of the Township’s affordable housing program, including the following responsibilities which may not be contracted out, exclusive of Subsection C(3)(f), which may be contracted out:
(a) 
Serving as the Township’s primary point of contact for all inquiries from the state, affordable housing providers, administrative agents, and interested households.
(b) 
Monitoring the status of all restricted units in the Township's Fair Share Plan.
(c) 
Compiling, verifying, and submitting annual reports as required by COAH.
(d) 
Coordinating meetings with affordable housing providers and administrative agents, as applicable.
(e) 
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH.
(f) 
If applicable, serving as the administrative agent for some or all of the restricted units in the Township as described in Subsection C(6) below.
(4) 
Subject to approval by COAH, Cinnaminson Township may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing program of the Township of Cinnaminson, except for those responsibilities which may not be contracted out pursuant to Subsection C(3) above. If the Township contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.
(5) 
Compensation. Compensation, if any, shall be fixed by the governing body at the time of the appointment of the Municipal Housing Liaison.
(6) 
Administrative powers and duties assigned to the Municipal Housing Liaison.
(a) 
Affirmative marketing:
[1] 
Conducting an outreach process to ensure affirmative marketing of affordable housing units in accordance with the Affirmative Marketing Plan of Cinnaminson Township and the provisions of N.J.A.C. 5:80-26.15; and
[2] 
Providing counseling or contracting to provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law.
(b) 
Household certification:
[1] 
Soliciting, scheduling, conducting and following up on interviews with interested households;
[2] 
Conducting interviews and obtaining sufficient documentation of gross income and assets upon which to base a determination of income eligibility for a low- or moderate-income unit;
[3] 
Providing written notification to each applicant as to the determination of eligibility or noneligibility;
[4] 
Requiring that all certified applicants for restricted units execute a certificate substantially in the form, as applicable, of either the ownership or rental certificates set forth in Appendices J and K of N.J.A.C. 5:80-26.1 et seq.;
[5] 
Creating and maintaining a referral list of eligible applicant households living in the housing region and eligible applicant households with members working in the housing region where the units are located; and
[6] 
Employing the random selection process as provided in the Affirmative Marketing Plan of Cinnaminson Township when referring households for certification to affordable units.
(c) 
Affordability controls:
[1] 
Furnishing to attorneys or closing agents forms of deed restrictions and mortgages for recording at the time of conveyance of title of each restricted unit;
[2] 
Creating and maintaining a file on each restricted unit for its control period, including the recorded deed with restrictions, recorded mortgage and note, as appropriate;
[3] 
Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are effectuated and properly filed with the appropriate county's register of deeds or county clerk's office after the termination of the affordability controls for each restricted unit;
[4] 
Communicating with lenders regarding foreclosures; and
[5] 
Ensuring the issuance of continuing certificates of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(d) 
Resale and rental:
[1] 
Instituting and maintaining an effective means of communicating information between owners and the administrative agent regarding the availability of restricted units for resale or rental; and
[2] 
Instituting and maintaining an effective means of communicating information to low- and moderate-income households regarding the availability of restricted units for resale or rerental.
(e) 
Processing request from unit owners:
[1] 
Reviewing and approving requests from owners of restricted units who wish to take out home equity loans or refinance during the term of their ownership;
[2] 
Reviewing and approving requests to increase sales prices from owners of restricted units who wish to make capital improvements to the units that would affect the selling price, such authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms and the cost of central air conditioning systems; and
[3] 
Processing requests and making determinations on requests by owners of restricted units for hardship waivers.
(f) 
Enforcement:
[1] 
Securing annually lists of all affordable housing units for which tax bills are mailed to absentee owners and notifying all such owners that they must either move back to their unit or sell it;
[2] 
Securing from all developers and sponsors of restricted units, at the earliest point of contact in the processing of the project or development, written acknowledgement of the requirement that no restricted unit can be offered, or in any other way committed, to any person, other than a household duly certified to the unit by the administrative agent;
[3] 
The posting annually in all rental properties, including two-family homes, of a notice as to the maximum permitted rent together with the telephone number of the administrative agent where complaints of excess rent can be made;
[4] 
Sending annual mailings to all owners of affordable dwelling units, reminding them of the notices and requirements outlined in N.J.A.C. 5:80-26.18(d)4;
[5] 
Establishing a program for diverting unlawful rent payments to the municipality's Affordable Housing Trust Fund or other appropriate municipal fund approved by the DCA;
[6] 
Creating and publishing a written operating manual, as approved by COAH, setting forth procedures for administering such affordability controls; and
[7] 
Providing annual reports to COAH as required.
(g) 
The administrative agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.
[Added 11-21-2011 by Ord. No. 2011-13]
The Uniform Housing Affordability Controls (UHAC) adopted by the New Jersey Housing and Mortgage Finance Agency (HMFA) contained in N.J.A.C. 5:80-26.1 et seq. are adopted and incorporated by reference as if set forth herein at length and shall supersede any inconsistencies and/or conflicts that may be determined to exist in Chapter 145 of the Township Code.
[Added 8-20-2012 by Ord. No. 2012-18]
A. 
There is established a Down payment assistance program, funded by developer fees, payable only from the Township's Housing Trust Fund and administered through the Township of Cinnaminson affordable housing program, for purchasers who seek to purchase low- or moderate-income units as part of said program. The low or moderate units that are being purchased under this program must be in full compliance with all Uniform Housing Affordability Controls ("UHAC") regulations and the rules adopted by the New Jersey Council on Affordable Housing ("COAH"). Prospective homeowners will not receive direct funds. The assistance dollars will be supplied to the appropriate entity/entities. The Cinnaminson down payment assistance program is implemented through a down payment assistance loan that is documented in a repayment loan agreement and secured by a down payment assistance program recapture note and down payment assistance program mortgage in favor of the Township that is executed by the purchaser/property owner. The loan is interest free and must be repaid in full when the recipient sells the property. The down payment assistance mortgage is a second mortgage that is subordinate to the first purchase money mortgage that the purchaser will secure from an institutional lender. In no event may the combined amounts of both mortgages exceed the maximum amount of mortgage indebtedness allowed for affordable units under UHAC or COAH's regulations. A Cinnaminson Township down payment assistance loan is not available to those individuals or households that have been awarded down payment and/or closing cost assistance grants and/or loans from any other governmental sources, including, but not limited to, Burlington County's first-time homebuyer program.
B. 
Purchasers seeking a down payment assistance loan through this program must make application to the Cinnaminson Township Affordable Housing Liaison ("Housing Liaison"). The maximum amount of any loan shall be $15,000, and the availability of funding is contingent upon the sufficiency of funds in the Township's Housing Trust Fund. Approval of a loan shall be as documented in a resolution adopted by the Township Committee of the Township of Cinnaminson in a form substantially similar to Appendix A hereto.[1] Funding of the loan program shall automatically cease should prior loans that have been made reach the amount reserved to fund the program in the Township's COAH-approved trust account spending plan. A copy of the loan application is attached as Appendix B[2] and can be obtained by applicants from the Housing Liaison or may be downloaded from the Cinnaminson Township website. The Housing Liaison maintains an office in the Cinnaminson Township Municipal Building, 1621 Riverton Road, Cinnaminson, NJ 08077, [(856) 829-6000] and may be reached during regular business hours.
[1]
Editor's Note: Appendix A is available in the Township offices.
[2]
Editor's Note: Appendix B is available in the Township offices.
C. 
The loan shall be documented and secured by the recipient's execution and delivery of the following documents:
(1) 
Down payment assistance repayment loan agreement — Appendix C[3] hereto;
[3]
Editor's Note: Appendix C is available in the Township offices.
(2) 
Down payment assistance recapture mortgage note — Appendix D[4] hereto;
[4]
Editor's Note: Appendix D is available in the Township offices.
(3) 
Down payment assistance mortgage — Appendix E hereto.[5]
[5]
Editor's Note: Appendix E is available in the Township offices.
D. 
The contents and terms, conditions and obligations of all Appendix exhibits are incorporated by reference herein as if set forth herein at length.
E. 
Qualification and eligibility for this program:
(1) 
Individuals/households must make an application with the Housing Liaison and be precertified, meaning that applicant demonstrates to the reasonable satisfaction of the Housing Liaison that there is a very high likelihood that with the receipt of the loan provided herein the applicant will be able to pay all of the required expenses related to owning his affordable home.
(2) 
In order to ensure that interested affordable housing homebuyers are able to demonstrate that they possess the required deposit prior to executing an agreement to purchase an affordable unit, interested applicants may submit loan applications prior to searching for a home.
(3) 
Qualified individuals/households must have incomes not exceeding low or moderate income guidelines as applicable for Burlington County per the New Jersey Fair Housing Act as periodically published and updated by the New Jersey Department of Community Affairs.
(4) 
The home that is being purchased must be an affordable unit that is being marketed for sale by the Township's administrative agent. Applicants must contact the administrative agent to ascertain the location and cost of all affordable units that are currently on the market. applicants may do so prior to securing written confirmation from the Township that a down payment assistance loan will be made available to them.
(5) 
The home/unit to be purchased must meet HUD housing quality standards as documented in a HUD-compliant home inspection report.
(6) 
Applicants must be deemed credit worthy by the Housing Liaison, and the amount of the principal on the first purchase money mortgage must not exceed three times the applicant's gross annual income. By submitting a loan application, applicants automatically consent to allowing the Housing Liaison to run a credit check and securing employment verification. applicants will be responsible for paying for the credit check.
(7) 
The Down payment assistance mortgage is a second mortgage that is subordinate to the first purchase money mortgage that the purchaser will apply for and secure. In no event may the combined amounts of both mortgages exceed the maximum amount of mortgage indebtedness allowed for affordable units under UHAC or COAH regulations.
(8) 
All loan recipients must occupy the property as their principal residence and own no other real estate.
(9) 
All loan recipients, at their cost and expense, must attend a prepurchase homebuyer education class administered by a HUD-certified housing counseling agency prior to closing on an affordable housing unit. The Housing Liaison will supply applicants with a list of HUD-certified counseling agencies in the area, and applicants may select the counseling agency that they wish to use. A certificate of completion from the HUD-certified housing counseling agency must be presented to the Housing Liaison before funds will be provided for down-payment assistance.
(10) 
If the Township Committee determines that an applicant qualifies for the loan of $15,000, the Township Committee will adopt a resolution in the form of Appendix A[6] which will be supplied by the Housing Liaison to the administrative agent as evidence that the deposit is available when a contract of sale is signed.
[6]
Editor's Note: Appendix A is available in the Township offices.
(11) 
If awarded a loan the funds will be made available by the Township at closing to the appropriate title company and/or attorney trust account.
(12) 
The Township's affordable housing administrative agent handles and administers the sale and purchase of affordable housing units in Cinnaminson. The loan award will expire if the applicant does not execute an agreement to purchase an affordable unit within six months of the date of the resolution confirming the loan award and will expire immediately if the administrative agent determines that the applicant fails to qualify to purchase the affordable unit under applicable governmental regulations or due to inability to secure first purchase money mortgage financing.
(13) 
Individuals and/or households purchasing affordable homes shall only be permitted to receive one down payment assistance loan. A down payment assistance loan through the Cinnaminson program is not available to individuals and/or households that have been awarded down payment and/or closing cost assistance grants/loans from any other governmental sources, including but not limited to, Burlington County's first-time homebuyer program.
[Added 12-17-2012 by Ord. No. 2012-21]
The term "Housing Officer" as used in this chapter shall be synonymous with the term "administrative agent" as defined in UHAC, and the administrative agent's duties, responsibilities and obligations shall be as set forth in N.J.A.C. 5:80-26.14. The administrative agent's fees and charges shall be paid for by the developer, property manager, affordable housing sponsor and/or property owner utilizing the agent's services.