Borough of Stanhope, NJ
Sussex County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of Stanhope 6-24-2008 by Ord. No. 2008-06.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Land development — See Ch. 100.
[1]
Editor's Note: This ordinance also superseded former Ch. 57, Affordable Housing, adopted 5-31-2005 by Ord. No. 2005-7.
[1]
Editor's Note: This article originally appeared in the Code as Ch. 100, Art. XXIV, Affordable Housing, adopted 11-26-1996 by Ord. No. 1996-19, and was redesignated to this chapter 5-31-2005 by Ord. No. 2005-7 and 6-24-2008 by Ord. No. 2008-06.
The Borough of Stanhope Fair Share Plan, dated June 10, 1996, amending and supplementing the Housing Plan Element of the 1994 Master Plan, is hereby adopted by reference and shall hereby constitute a part of this chapter. All provisions of this chapter, whether adopted heretofore or hereafter, shall be construed in harmony with the Fair Share Plan.
The properties designated as Block Number 10302, Lot Number 2, and Block Number 10307, Lot Number 2, as designated on the Tax Map of the Borough of Stanhope, shall be donated by the Borough pursuant to N.J.S.A. 52:27D-135 to not-for-profit organizations (hereinafter "donee-sponsor") to develop housing units for persons of low- and moderate-income. Said properties shall be deed restricted for use by low- and moderate-income persons for not less than 30 years from the date of the donation. The aforesaid properties are located in the medium density residential zone and are currently fully conforming to the requirements of said zone for residential development purposes. Notwithstanding any other provisions of this chapter, or any subsequent amendment hereto, said properties shall be considered to be fully conforming for residential development purposes pending their development by the appropriate donee-sponsor for residential development for low- and moderate-income persons.
A. 
The Fair Share Plan, dated June 10, 1996, provides for the construction of a five-bedroom unit restricted for occupancy by low- and moderate-income persons who are senior citizens and the construction of a five-bedroom unit restricted for occupancy by low- and moderate-income persons with developmental disabilities. The new residential units will be constructed by donee-sponsors on land donated by the Borough of Stanhope as is set forth in § 57-2 above. The Borough's Affirmative Marketing Plan shall be limited to the aforesaid properties.
B. 
The Affirmative Marketing Plan is a regional marketing strategy designed to attract income-eligible households of all majority and minority groups, regardless of sex, for the purpose of renting affordable housing units. The plan shall address the requirements of N.J.A.C. 5:93-11. In addition, the plan prohibits discrimination in the rental on the basis of race, color, sex, religion, handicap, age, familial status/size or national origin. The Borough of Stanhope is in the housing region consisting of Sussex, Passaic, Bergen and Hudson Counties.
C. 
The Affirmative Marketing Plan is a continuing program and shall meet the following requirements:
(1) 
All newspaper articles, announcements and requests for applicants for low- and moderate-income housing shall appear in the following daily regional newspapers: The New Jersey Herald and The Daily Record.
(2) 
The initial advertising of affordable housing must take the form of at least one press release and one paid display advertisement in each of the above newspaper(s). At a minimum, the paid display advertisement shall include the following:
(a) 
The street address of the units.
(b) 
Directions to the housing units.
(c) 
Number of bedrooms per unit.
(d) 
The size of the units.
(e) 
The rents of the units.
(f) 
The income range for qualifying households.
(g) 
The location of applications.
(h) 
The telephone number and office hours for obtaining information and requesting applications.
(3) 
Applications must be mailed to prospective applicants upon request.
(4) 
Public service announcements may be made through the use of the following radio and/or cable television stations broadcasting throughout the region: TKR Cable TV Channel 3, Public Bulletin Board, and Service Electric Cable TV Channel 8, Public Bulletin Board.
(5) 
Announcements, requests for applicants and newspaper articles may be placed in the following neighborhood-oriented weekly newspapers, religious publications and organizational newsletters within Sussex, Passaic, Bergen and Hudson Counties as needed: the Sussex County Chronicle.
(6) 
Affordable housing applications, brochures, announcements and/or posters will be forwarded to and posted at the following locations: the donee-sponsor's office.
(7) 
Quarterly informational circulars and applications shall be sent to each of the following agencies for publication in their journals and for circulating among their members: The Board of Realtors in Sussex County, the Board of Realtors in Passaic County, the Board of Realtors in Bergen County and the Board of Realtors in Hudson County.
(8) 
Occupants of low- and moderate-income housing shall be selected on a random basis, which selection shall be administered by the administrative agencies listed below.
(9) 
Donee-sponsors.
(a) 
NORWESCAP and SCARC, as donee-sponsors of the two five-bedroom units to be constructed, shall execute an agreement with the Borough of Stanhope to administer the affordable housing units. NORWESCAP and SCARC shall each administer their respective units of affordable housing.
(b) 
They shall have the responsibility to advertise; to income-qualify low- and moderate-income households; to place eligible households in low- and moderate-income units upon initial occupancy; to continue to qualify households for reoccupancy of units as they become vacant; and to enforce the terms of the deed restriction. NORWESCAP or SCARC will provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, rental lease requirements and landlord tenant law.
(c) 
In addition, Stanhope is designating the Borough Administrator as a "housing officer," to act as liaison between COAH, the municipality and NORWESCAP and SCARC. The municipal liaison will be responsible for tracking the progress of affordable housing, fielding inquiries regarding affordable housing from the public and COAH, complying with COAH monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 5:93-12.1.
(10) 
Households who live or work in the housing region of Sussex, Passaic, Bergen and Hudson Counties may be given preference for the affordable housing units within the municipality. Applicants living outside the housing region shall have an equal opportunity for units after intraregional applicants have been processed. Stanhope intends to comply with N.J.A.C. 5:93-11.7.
(11) 
The Affirmative Marketing Plan for new units shall commence 120 days before the issuance of either temporary or permanent certificates of occupancy. Affirmative marketing shall continue until all low- and moderate-income housing units are initially occupied. Affirmative marketing for existing units shall continue on an as-needed basis for as long as affordable units are deed restricted.
In Holmdel Builder's Association v Holmdel, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution subject to Council on Affordable Housing developing rules. The purpose of this article is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's rules. Fees collected pursuant to this article shall be used for the sole purpose of providing low- and moderate-income housing. This section shall be interpreted within the framework of COAH's rules on development fees.
As used in this chapter, the following terms shall have the meaning indicated:
COAH
The New Jersey Council on Affordable Housing.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.
EQUALIZED ASSESSED VALUE
The value of a property determined by the Municipal Tax Assessor through a process designed to ensure that all property in the municipality is assessed at the same assessment ratio or ratios required by law. Estimates at the time of issuance of a building permit may be obtained utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the Municipal Tax Assessor.
JUDGMENT OF REPOSE
A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.
SUBSTANTIVE CERTIFICATION
A determination by COAH approving a municipality's housing element and fair share plan in accordance with the provisions of the Fair Housing Act and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six years in accordance with the terms and conditions therein.
A. 
Residential development fees.
(1) 
Within all zoning districts, residential developers shall pay a development fee of 1 1/2% of the equalized assessed value for residential development or the coverage amount of the homeowner warranty document of a for-sale unit or the appraised value on the document utilized for construction financing for a rental unit, provided no increased density is permitted.
(2) 
The fee may be realized on the equalized assessed value or on the coverage amount on the homeowner's warranty document for each additional for-sale unit or on the appraised value on the document utilized for construction for each additional rental unit, as the Borough shall select.
(3) 
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70(d)(5), then the additional residential units realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% rather than the development fee of 1 1/2%. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the density for purposes of calculating the bonus development fee shall be the highest density permitted by right during the two-year period preceding the filing of the "d" variance application.
B. 
Nonresidential development fees. All nonresidential developers shall pay a fee of 3% of either the equalized assessed value for nonresidential development or the appraised value utilized on the document for construction financing, as the Borough shall select. If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70(d)(4), then the additional floor area realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% of the equalized assessed value or the appraised value on the document utilized for construction financing. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the density for purposes of calculating the bonus development fee shall be the highest density permitted by right during the two-year period preceding the filing of the "d" variance application. The development fee may be based on either the equalized assessed value for nonresidential development or the appraised value utilized on the document for construction financing.
C. 
Additional development fees. The Borough may provide for additional development fees as allowed by N.J.A.C. 5:93-8.1 et seq., as currently adopted or as may be amended in the future.
A. 
Developers of low- and moderate-income units shall be exempt from paying development fees.
B. 
Expansion of existing residential structures shall be exempt.
C. 
Developers that have received preliminary or final approval prior to the effective date of this article shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval, or the plan is abandoned, approval lapses, or the period of protection pursuant to N.J.S.A. 40:55D-52 expires without extension.
D. 
Owner-occupied residential structures demolished and replaced as a result of a fire, flood or natural disaster shall be exempt from paying a development fee.
[Added 6-28-2016 by Ord. No. 2016-05]
Developers that are required to pay the development fees as provided for in this article shall pay the fee in effect at the time the developer applies for its building permits. Such payments are to be made in accordance with the following schedule:
A. 
Developers shall pay 50% of the calculated development fee to the Borough of Stanhope at the issuance of building permits. The developer shall submit to the Housing Officer an estimate of the assessed value of the new construction and lot to be verified if required by the Tax Assessor.
B. 
Developers shall pay the remaining fee to the Borough of Stanhope at the issuance of certificates of occupancy. At the issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer (or owners upon default) shall be responsible for paying the difference between the fee calculated at certificates of occupancy and the amount paid at building permit.
A. 
There is hereby created an interest-bearing housing trust fund in the name of Stanhope Borough for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers pursuant to this article shall be deposited in this fund. No money shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by COAH.
B. 
If COAH determines that the Borough of Stanhope is not in conformance with COAH's rules on development fees, COAH is authorized to direct the manner in which all development fees collected pursuant to this article shall be expended. Such authorization is pursuant to this article, COAH's rules on development fees, and the written authorization from the governing body to the bank in which the housing trust fund is located.
A. 
Money deposited in the housing trust fund may be used for any activity approved by COAH for addressing the Borough of Stanhope's low- and moderate-income housing obligation. Such activities may include, but are not necessarily limited to, housing rehabilitation, new construction, regional contribution agreements, the purchase of land for low- and moderate-income housing, assistance designed to render units to be more affordable to low- and moderate-income people, and administrative costs necessary to implement the Borough's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
B. 
At least 30% of the revenues collected shall be devoted to render units more affordable unless exempt as per N.J.A.C. 5:98-8.16(c). Examples of such activities include, but are not limited to, down payment and closing assistance, low interest loans and rental assistance.
C. 
No more than 20% of the revenues shall be expended on administrative costs necessary to develop, revise, or implement the housing plan element of the Borough Master Plan. Examples of eligible administrative activities include personnel, consultant services, space costs, consumable supplies, and rental or purchase of equipment directly associated with plan development or plan implementation.
D. 
Development fees shall not be expended to reimburse the Borough of Stanhope for housing activities that preceded substantive certification.
The Borough shall complete and return to COAH all monitoring forms related to the collection of development fees, expenditures of revenues and implementation of the spending plan certified by COAH. Quarterly financial reports and annual program implementation and auditing reports shall be completed by the Borough on forms designed by COAH.
A. 
In the event that any of the conditions set forth in Subsection B below occur, COAH shall be authorized, on behalf of the Borough, to direct the manner in which all development fees collected pursuant to this article shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of COAH upon the Borough Clerk's receipt of written notification from COAH that such a condition has occurred. In furtherance of the foregoing, the Borough shall, in establishing a bank account, ensure that the Borough has provided whatever express written authorization which may be required by the bank to permit COAH to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Borough Clerk.
B. 
Occurrence of the following may result in COAH taking an action pursuant to N.J.A.C. 5:91-15.1.
(1) 
Failure to submit a spending plan within the time limits imposed by COAH.
(2) 
Failure to meet deadlines for information required by COAH in its review of this article, the Borough's housing element or spending plan.
(3) 
Failure to address COAH's conditions for approval of a plan to spend development fees within the deadlines imposed by COAH.
(4) 
Failure to address COAH's conditions for substantive certification within the deadlines imposed by COAH.
(5) 
Failure to submit accurate monitoring reports within the time limits imposed by COAH.
(6) 
Failure to implement the spending plan for development fees within the time limits imposed by COAH, or within reasonable extensions granted by COAH.
(7) 
Expenditure of development fees on activities not permitted by COAH.
(8) 
Other good cause demonstrating that the revenues are not being used for the intended purpose.
This article shall expire if:
A. 
COAH dismisses or denies the Borough's petition for substantive certification.
B. 
The Borough's substantive certification is revoked.
C. 
The substantive certification expires prior to the Borough's filing an adopted housing element with COAH, petitioning for substantive certification or receiving COAH's approval of this article.