[HISTORY: Adopted by the Township Council of the Township of Delran as indicated in article histories. Amendments noted where applicable.]
[Adopted 11-22-2005 by Ord. No. 2005-36]
It is hereby stated and determined that it is the policy of the Township of Delran to utilize available resources to preserve and maintain, where possible, the affordability controls on affordable housing units in the Township for the full term as initially established pursuant to Council on Affordable Housing (COAH) rules or otherwise on affordable residential housing units, or such other term as Township Council deems fair and appropriate.
The Housing Trust Fund of the Township of Delran is hereby designated and authorized for use in saving and maintaining the affordability controls on affordable housing units threatened with or subject to foreclosure by mortgage holders. This article specifically authorizes the purchase of an assignment of mortgage, assignment of judgment, or other assignment of legal rights, of an affordable housing unit, including bidding for such unit at a foreclosure sale held by the Sheriff, subject to the provisions set forth below. A list of affordable units in the Township is annexed hereto as Exhibit A. The sum of $250,000 of the Housing Trust Fund is hereby designated for this purpose.
Editor's Note: Exhibit A is on file in the Township offices.
The Township Clerk shall cause Exhibit A to be maintained and updated on a current basis so that Council has a readily available reference of residential units in the Township that are subject to affordability controls and available for purchase as set forth in § 63-2. Whenever the Township Clerk or other Township official learns of a pending or threatened foreclosure action, judgment, or Sheriff's sale involving a residential unit subject to affordability controls, such information shall be promptly provided to the Township Administrator for review and possible recommendation to the Mayor and Council for action.
Upon a determination by the Administrator that a particular affordable housing unit is threatened with the loss of affordability controls through a foreclosure action by a mortgage holder, the Administrator shall so advise the Mayor and Council. In addition, the Administrator shall endeavor to obtain an estimated cost for the purchase of an assignment of mortgage, assignment of judgment, purchase of the residential unit, or other legal rights for submission to Council for its use in determining further action.
Council, upon receipt of appropriate information indicating that the affordability controls of a particular unit are in jeopardy, may, in its discretion, authorize the purchase of an assignment or other rights in the unit, including purchase of the fee interest of by the Township at a Sheriff's sale or otherwise. Such authorization shall be by resolution of Council and shall set forth the maximum amount to be paid from the Housing Trust Fund for the acquisition. The resolution shall further require that the Township, as soon as is practical, resell the unit, or its interest therein, to a qualified affordable housing purchaser at the then maximum price permitted by COAH for the sale of such affordable housing unit. Such sale shall continue, or, if necessary, reestablish the affordable housing controls for the unit in question. The net proceeds of such sale (after transactional costs) shall be deposited in the Housing Trust Fund for future affordable housing use.
In no event shall the Council utilize funds other than the Housing Trust Fund for the purchases authorized under this article. Furthermore, the maximum amount of Housing Trust Funds to be utilized at any one time for such purchases is $250,000. If such amount is expended for purchases under this article, no additional purchases shall be made until monies are restored to the Housing Trust Fund from the resale of a purchased unit or units.