The purpose of this article is to set forth
standards and procedures to ensure that the affordable housing required
under the Zoning Ordinance of the Borough of Fort Lee is developed
for and made affordable to low- and moderate-income households. All
affordable units shall meet the requirements of this article.
All developers who have an affordable housing
obligation shall be required to comply with this article. Specifically,
this article shall apply to the R-10A and R-12 Zones. No subdivision
approval, site plan approval or building permit shall be granted to
a developer having an affordable housing obligation unless the developer
participates in the production of affordable housing pursuant to this
article.
A.
All developers who are required to build affordable
housing units, whether on the tract or elsewhere, shall construct
such units in accordance with the following minimum schedule:
|
Maximum Percentage of
Free Market Housing Units
|
Minimum Percentage of
Affordable Housing Units
| |
|---|---|---|
|
25%
|
0%
| |
|
25%, plus 1 unit
|
10%
| |
|
50%
|
50%
| |
|
75%
|
75%
| |
|
90%
|
100%
|
B.
Pursuant to this schedule, the developer may construct
the first 25% of the free-market units without constructing housing
units. Certificates of occupancy for the remaining free-market units
shall not be issued unless the developer has obtained certificates
of occupancy for the affordable housing units in compliance with the
above schedule.
C.
In the event that a developer enters into an agreement
with the Borough providing a stricter schedule for the construction
of affordable units, such agreement shall control.
A.
The Borough shall appoint an Affordable Housing Official
who will be responsible for monitoring and implementing the provisions
of this article and assuring that the affordable housing units remain
affordable to low- and moderate-income households.
B.
No certificate of occupancy shall be issued for an
affordable housing unit without the written approval of the Affordable
Housing Official. Such approval shall be denied unless the unit is
subject to a deed restriction and mortgage lien, in a form adopted
by the Council on Affordable Housing, which assure that the unit will
remain affordable to low- or moderate-income households for a period
of at least 30 years.
C.
No affordable housing unit shall be sold or resold,
rented or re-rented, without the written approval of the Affordable
Housing Official. In order to obtain such approval, the seller or
lessor shall be required to demonstrate that the proposed sale or
lease complies in all respects with the provisions of this article
and the regulations of the Council on Affordable Housing.
Every development subject to the requirements
of this article shall contain equal number of low- and moderate-income
units. The maximum average unit and price of low- and moderate-income
units within a development shall be affordable to households earning
57.5% of median income, as calculated pursuant to the regulations
of the Council on Affordable Housing. Moderate-income sales units
shall be available for at least three different prices and low-income
sales units shall be available for at least two different prices.
Developers of rental units may establish one rent for a low-income
unit and one rent for a moderate-income unit for each bedroom distribution.
Every development subject to the requirements
of this article shall establish a distribution for the number of bedrooms
in the affordable housing units such that:
None of the affordable housing units in any
development subject to this article shall be age-restricted without
the prior approval of the Affordable Housing Official. Such approval
shall be granted only if no more than 25% of the Borough's fair share
obligation (after any transfers made under a regional contribution
agreement) will be met by age-restricted units.
In the event that there are more applicants
for affordable housing in any development than there are vacancies
for such housing, the units shall initially be made available to low-
and moderate-income households currently living or working in the
region consisting of Bergen County, Hudson County, Passaic County
and Sussex County. For initial occupancy priority, households shall
be screened according to the above preference. Those households qualifying
for priority shall be offered contracts of sale and/or lease first
and before other income eligible households. When housing units have
been purchased or leased by all households qualifying according to
the priority standards, the remaining income eligible applicants,
not yet under contract, shall be pooled and offered contracts. Within
all rounds of applicant selection, random selection of eligible applicants
shall prevail.
A.
Initial prices and rents. The initial price of an
affordable owner-occupied housing unit shall be established so that
after a down payment of 5%, the monthly principal, interest, taxes,
insurance and condominium or homeowner fees do not exceed 28% of eligible
gross monthly income. Master deeds shall regulate condominium or homeowner
fees or special assessments of owners of affordable units at a specific
percentage of those paid by market-unit owners, which shall be at
least 1/3 of the fees paid by market-unit owners. Initial rents, including
an allowance for utilities, shall be set so as not to exceed 30% of
the gross monthly income of the appropriate household size. Tenant-paid
utilities that are included in the utility allowance shall be so stated
in the lease and the allowance shall be consistent with the utility
allowance approved by HUD for use in New Jersey. Gross monthly income
shall be calculated based upon the uncapped Section 8 income limits
published by HUD. The following criteria shall be used in determining
maximum rents and sale prices:
(1)
Efficiency units shall be affordable to one-person
households;
(2)
One-bedroom units shall be affordable to one-and-five-tenths-person
households;
(3)
Two-bedroom units shall be affordable to three-person
households;
(4)
Three-bedroom units shall be affordable to four-and-five-tenths-person
households.
B.
Annual indexed increases. The price of an owner-occupied
unit may increase annually based on the percentage increase in the
regional median income limit for the housing region. In no event shall
the maximum resale price be lower than the last recorded purchase
price. With the exception of rentals constructed pursuant to low-income
tax credit regulations, the rent of a low- or moderate-income unit
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the United States. This increase
shall not exceed 9% in any one year. Rents for units constructed pursuant
to low-income tax credit regulations shall be indexed pursuant to
the regulations governing low-income tax credits.
C.
Eligible capital improvements. Property owners of
owner-occupied affordable housing units may apply to the Affordable
Housing Official for permission to increase the maximum price for
eligible capital improvements. Eligible capital improvements shall
be those that render the unit suitable for a larger household. In
no event shall the maximum price of an improved housing unit exceed
the limits of affordability of the larger household.
Persons wishing to sell affordable units shall
notify the Affordable Housing Official of the intent to sell. If no
eligible buyer enters a contract of sale for the unit within 90 days
of notification, the Borough and the housing authority shall have
the option to purchase the unit for a negotiated price not to exceed
the maximum price permitted based on the regional increase in median
income as defined by HUD. If neither the Borough nor the housing authority
purchases the unit, the seller may apply for permission to offer the
unit to a non-income-eligible household at the maximum price permitted.
The seller shall document efforts to sell the unit to an income-eligible
household as part of this application. If the request is granted,
the seller may offer a low-income housing unit to a moderate-income
household and a moderate-income housing unit to households earning
in excess of 80% of median. In no case shall the seller be permitted
to receive more than the maximum price permitted. In no case shall
a sale pursuant to this section eliminate the resale controls on the
unit or permit any subsequent seller to convey the unit except in
full compliance with the terms of this article.
A.
A judgment of foreclosure or a deed in lieu of foreclosure to a financial institution regulated by state and/or federal law or to a lender on the secondary mortgage market affordable housing units provided there is compliance with Subsection B of this section. Notice of foreclosure shall allow the Borough or the housing authority to purchase the affordable housing unit at the maximum permitted sales price and maintain it as an affordable unit for the balance of the intended period of controls.
B.
In the event of a foreclosure sale, the owner of the
affordable housing unit shall be personally obligated to pay into
the Affordable Housing Trust Fund any surplus funds, but only to the
extent that such surplus funds exceed the difference between the maximum
price permitted at the time of foreclosure and the amount necessary
to redeem the debt to the financial institution, including costs of
foreclosure.
A.
Every development subject to the requirements of this
article shall submit an affirmative marketing program designed to
disseminate information regarding the availability of low- and moderate-income
units. The program shall comply with N.J.A.C. 5:93-11.1 and 5:93-11.3
and shall include at least the following:
(1)
Advertisements in local newspapers, including the
Sun Bulletin, Bergen Record, Jersey Journal and Herald News.
(2)
Notification to local agencies and organizations,
including the Public Welfare Departments and Social Services Boards
in Bergen, Passaic, Sussex and Hudson Counties, the Health and Welfare
Council of Bergen County, the Human Services Planning Council of Bergen
County, the Fair Housing Council of Bergen County, the Bergen County
Chapter of Urban League and the Bergen County Housing Authority.
(3)
Posting of notices in the Borough Hall.
(4)
Delivery of notices to the Municipal Clerks of all
municipalities in Bergen, Passaic, Sussex and Hudson Counties.
B.
The affirmative marketing program shall commence at
least four months prior to expected occupancy and shall continue until
all low- and moderate-income units are under contract of sale or lease.
