[HISTORY: Adopted by the Borough Council of the Borough of Pennington 6-2-2003
by Ord. No. 2003-4. Amendments noted where applicable.]
A.
The purpose of this chapter is to comply with the Substantive
Rules of the New Jersey Council on Affordable Housing (COAH) regarding the
Borough of Pennington and its efforts to satisfy its Mt. Laurel II housing
obligations.
B.
This chapter of the Code of the Borough of Pennington
sets forth regulations regarding low- and moderate-income housing units in
the Borough of Pennington that are consistent with the provisions of N.J.A.C.
5:93 et seq. as effective on June 6, 1994, and as amended thereafter. These
rules are pursuant to the Fair Housing Act of 1985 and the Borough of Pennington's
constitutional obligation to provide for its fair share of low- and moderate-income
housing.
Any term pertaining to affordable housing referenced in this chapter
is intended to have the meaning as defined in the New Jersey Fair Housing
Act (N.J.S.A. 52:270-301 et seq.) or the Procedural Rules of the New Jersey
Council on Affordable Housing (N.J.A.C. 5:91) or the Substantive Rules of
the New Jersey Council on Affordable Housing (N.J.A.C. 5:92 or N.J.A.C. 5:93),
as appropriate.
A.
The Borough of Pennington's new construction or
inclusionary component shall be divided equally between low- and moderate-income
households as per N.J.A.C. 5:93-2.20.
B.
Except for inclusionary developments constructed pursuant
to low-income tax credit regulations:
(1)
At least 1/2 of all units within each inclusionary development
shall be affordable to low-income households; and
(2)
At least 1/2 of all rental units shall be affordable
to low-income households; and
(3)
At least 1/3 of all units in each bedroom distribution
pursuant to N.J.A.C. 5:93-7.3 shall be affordable to low-income households.
C.
Inclusionary developments that are not restricted to
age-restricted housing units shall be structured in conjunction with realistic
market demands so that:
(1)
The combination of efficiency and one-bedroom units is
at least 10% and no greater than 20% of the total low- and moderate-income
units; and
(2)
At least 30% of all low- and moderate-income units are
two-bedroom units; and
(3)
At least 20% of all low- and moderate-income units are
three-bedroom units; and
(4)
Low- and moderate-income units that are age-restricted
may utilize a modified bedroom distribution. At a minimum, the number of bedrooms
shall equal the number of age-restricted low- and moderate-income units within
the inclusionary development.
D.
In conjunction with realistic market information, the
following criteria shall be used in determining maximum rents and sale prices:
(1)
Efficiency units shall be affordable to 1.0 person households;
(2)
One-bedroom units shall be affordable to 1.5 person households;
(3)
Two-bedroom units shall be affordable to 3.0 person households;
(4)
Three-bedroom units shall be affordable to 4.5 person
households;
(5)
Median income by household size shall be established
by a regional weighted average of the uncapped Section 8 income limits published
by the federal Department of Housing and Urban Development (HUD) as per N.J.A.C.
5:93-7.4(b);
(6)
The maximum average rent and sales price of low- and
moderate-income units within each inclusionary development shall be affordable
to households earning no more than 57.5% of median income. The moderate-income
sales units shall be made available for at least three different prices and
low-income sales units also shall be made available for at least two different
prices;
(7)
For both owner-occupied and rental units, the low- and
moderate-income units shall utilize the same heating source as the market
units within an inclusionary development;
(8)
low-income units shall be reserved for households with
a gross household income less than or equal to 50% of the median income approved
by COAH; moderate-income units shall be reserved for households with a gross
household income less than 80% of the median income approved by COAH as per
N.J.A.C. 5:93-7.4; and
(9)
The regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16
shall be applicable to all affordable units.
E.
For rental units, the following conditions shall apply:
(1)
Developers may establish one rent for a low-income unit
and one rent for a moderate-income unit for each bedroom distribution; and
(2)
Gross rents, including an allowance for tenant-paid utilities,
shall be established so as not to exceed 30% of the gross monthly income of
the appropriate household size as per N.J.A.C. 5:93-7.4(a). The tenant-paid
utility allowance shall be consistent with the utility allowance approved
by HUD for use in New Jersey.
F.
For sale units, the following conditions shall apply:
(1)
The initial price of a low- and moderate-income owner-occupied
for-sale housing unit shall be established so that after a down payment of
5%, the monthly principal, interest, homeowner and private mortgage insurance,
property taxes (based on the restricted value of the low- and moderate-income
unit) and condominium or homeowner association fees do not exceed 28% of the
eligible gross monthly income;
(2)
Master deeds of inclusionary developments shall regulate
condominium or homeowner association fees or special assessments of low- and
moderate-income purchasers at 100% of those paid by market purchasers. This
one-hundred-percent percentage is consistent with the requirement of N.J.A.C.
5:93-7.4. Once established within the master deed, the one-hundred-percent
percentage shall not be amended without prior approval from COAH;
(3)
The Borough of Pennington shall follow the general provisions
concerning uniform deed restriction liens and enforcement through certificates
of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3;
(4)
The Borough of Pennington shall require a certificate
of reoccupancy for any occupancy of a low- or moderate-income sales unit resulting
from a resale as per N.J.A.C. 5:93-9.3(c);
(5)
Municipal, state, nonprofit and seller options regarding
sale units shall be consistent with N.J.A.C. 5:93-9.5 through 5:93-9.8. Municipal
rejection of repayment options for sale units shall be consistent with N.J.A.C.
5:93-9.9;
(6)
The continued application of options to create, rehabilitate
or maintain low- and moderate-income sale units shall be consistent with N.J.A.C.
5:93-9.10;
(7)
Eligible capital improvements prior to the expiration
of controls on sale units shall be consistent with N.J.A.C. 5:93-9.11; and
(8)
The regulations detailed in N.J.A.C. 5:93-9.12 through
5:93-9.14 shall be applicable to low- and moderate-income units that are for
sale units.
G.
For inclusionary developments, the following conditions
shall apply:
(1)
Low- and moderate-income units within an inclusionary
development shall be built in accordance with N.J.A.C. 5:93-5.6(d) as follows:
|
Minimum Percent of Low/Moderate
Income Units Completed
|
Percent of Market Housing
Units Completed
| |
|---|---|---|
|
0%
|
25%
| |
|
10%
|
25% + 1 unit
| |
|
50%
|
50%
| |
|
75%
|
75%
| |
|
100%
|
90%
| |
|
100%
|
(2)
The design of an inclusionary development shall integrate
the low- and moderate-income units with the market units in accordance with
N.J.A.C. 5:93-5.6(f).
I.
To provide assurances that low- and moderate-income units
are created with controls on affordability over time and that low- and moderate-income
households occupy these units, the Borough of Pennington shall designate an
administrative agency, to be named by resolution, which shall have the responsibility
of ensuring the affordability of sales and rental units over time. The administrative
agency shall be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
(1)
In addition, the administrative agency shall be responsible
for utilizing the verification and certification procedures outlined in N.J.A.C.
5:93-9.1(b) in placing households in low- and moderate-income units;
(2)
Newly constructed low- and moderate-income sales units
shall remain affordable to low- and moderate-income households for at least
thirty (30) years, and the administrative agency shall require all conveyances
of newly constructed units to contain the deed restriction and mortgage lien
adopted by COAH and referred to as "Technical Appendix E" as found in N.J.A.C.
5:93; and
(3)
Housing units created through the conversion of a nonresidential
structure shall be considered a new housing unit and shall be subject to thirty-year
controls on affordability. The administrative agency shall require COAH's
appropriate deed restriction and mortgage lien.
J.
The following durations of affordability controls shall
apply to rehabilitated units:
(1)
Rehabilitated owner-occupied single-family housing units
that are improved to code standard will be subject to affordability controls
for at least six years; and
(2)
Rehabilitated renter-occupied housing units that are
improved to code standard shall be subject to affordability controls for at
least 10 years.
K.
The following durations of affordability controls shall
apply to rental units:
(1)
Newly constructed low- and moderate-income rental units
shall remain affordable to low- and moderate-income households for at least
30 years. The administrative agency shall require the deed restriction and
lien and deed of easement referred to as "Technical Appendix H" as found in
N.J.A.C. 5:93;
(2)
Affordability controls on accessory apartments shall
be for a period of at least 10 years, except if the apartment is to receive
a rental bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on
affordability shall extend for 30 years in accordance with N.J.A.C. 5:93-5.9;
and
(3)
Alternate living arrangements shall be controlled in
a manner suitable to COAH, that provides assurances that such a facility will
house low- and moderate-income households for at least 10 years, except that
if the alternative living arrangement is to receive a rental bonus credit
pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability shall extend
for 30 years in accordance with N.J.A.C. 5:93-5.8.
L.
Section 14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301
et seq., incorporates the need to eliminate unnecessary cost generating features
from the Borough of Pennington's land use ordinances. Accordingly, the
Borough of Pennington shall eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal approvals/denials
on inclusionary development applications. The Borough of Pennington shall
adhere to the components of N.J.A.C. 5:93-10.1 through 5:93-10.3. The Borough
of Pennington has a fair share obligation of 29 units, of which 20 is the
new construction component. This chapter shall apply to all developments that
contain proposed low- and moderate-income units that are listed below and
any future developments that may occur:
(1)
Pennington Point East.
[Added 3-6-2006 by Ord. No. 2006-2]
A.
The Borough of Pennington in the County of Mercer has
a fair share obligation of 29 units, of which 20 provide new affordable housing
opportunities. This section shall apply to all affordable accessory apartments
and all developments that contain, or will contain, affordable units that
are listed below and any future developments that may occur:
B.
The affirmative marketing plan shall be a regional marketing
strategy designed to attract buyers and/or renters of all majority and minority
groups, regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children, to the affordable units being marketed by a developer
or sponsor of the units, the Borough and/or the designated administrative
agency of affordable housing. The plan shall address the requirements of N.J.A.C.
5:94-7 and N.J.A.C. 5:80-26. In addition, the plan prohibits discrimination
in the sale, rental, financing or other services related to housing on the
basis of race, color, sex, affectional or sexual orientation, religion, handicap,
age, familial status/size or national origin. The Borough of Pennington is
in Housing Region IV consisting of Monmouth, Ocean and Mercer Counties.
C.
The affirmative marketing plan is a continuing program
and shall meet the following requirements:
(1)
The affirmative marketing process for available affordable
ownership units shall begin at least four months prior to the expected occupancy.
The affirmative marketing of rental units shall take place at least one month
prior to the expected occupancy. Advertising and outreach shall take place
during the first week of the marketing program and each month thereafter until
all available units have been leased or sold.
(2)
All advertisements shall include the following:
(a)
Street address (location) of the housing units;
(b)
Directions to the housing units;
(c)
Size of the units, as measured in bedrooms;
(d)
Range of selling prices/rents;
(e)
The maximum income permitted to qualify for the housing
units;
(f)
Application fees, if any; and
(g)
Location of applications, including business hours and
where/how applications may be obtained.
(3)
In order to reach all the entire housing region, as required
by the New Jersey Council on Affordable Housing (COAH), at least one display
advertisement will be published in each the following newspapers of general
circulation:
(5)
The following regional radio and/or cable television
station(s) shall be used to advertise affordable housing units:
(a)
Comcast Public Access.
(6)
The primary marketing shall take the form of at least
one press release and a paid advertisement with the above media outlets. Monthly
advertising initiatives will continue until all affordable units are occupied.
Additional advertising and publicity shall be on an "as needed" basis.
(7)
Applications and copies of press releases and/or information
packages will be made available at the following locations:
(a)
Developer's sales/rental office on site;
(b)
Pennington Borough Public Library;
(c)
The main branches of the Monmouth County and Ocean County
public libraries;
(d)
Pennington Municipal Building;
(e)
Pennington Senior Center;
(f)
Mercer County Administration Building; and
(g)
The Pennington Market.
(8)
In effort to reach those households that are traditionally
underserved by affordable housing opportunities, press releases and/or information
packages shall be sent to each of the following agencies in Monmouth, Ocean
and Mercer Counties:
(a)
All public housing authorities within COAH Housing Region
IV, including but not limited to:
|
Hightstown HA
| |
|
131 Rogers Avenue
| |
|
Hightstown, NJ 08520
| |
|
Princeton HA
| |
|
50 Clay Street
| |
|
Princeton, NJ 08542
| |
|
Trenton HA
| |
|
875 New Willow Street
| |
|
Trenton, NJ 08638
| |
|
Hamilton Township HA
| |
|
2090 Greenwood Avenue
| |
|
PO Box 00150
| |
|
Hamilton, NJ 08650
| |
|
Red Bank HA
| |
|
52 Evergreen Terrace
| |
|
Red Bank, NJ 07701
| |
|
Asbury Park HA
| |
|
1000 1/2 3rd Avenue
| |
|
Asbury Park, NJ 07712
| |
|
Belmar HA
| |
|
710 8th Avenue
| |
|
Belmar, NJ 07719
| |
|
Freehold HA
| |
|
107 Throckmorton St.
| |
|
Freehold, NJ 08723
| |
|
Highlands HA
| |
|
215 Shore Drive
| |
|
Highlands, NJ 07732
| |
|
Keansburg HA
| |
|
1 Church Street
| |
|
Keansburg, NJ 07734
| |
|
Long Branch HA
| |
|
Garfield Court
| |
|
Long Branch, NJ 07740
| |
|
Middletown HA
| |
|
1 Oakdale Drive
| |
|
Middletown, NJ 07748
| |
|
Neptune HA
| |
|
1810 Alberta Avenue
| |
|
Neptune, NJ 07753
| |
|
Dover HA
| |
|
215 E Blackwell Street
| |
|
Dover, NJ 07801
| |
|
Lakewood HA
| |
|
317 Sampson Avenue
| |
|
Lakewood, NJ 08701
| |
|
Berkeley HA
| |
|
44 Frederick Drive
| |
|
Bayville, NJ 08721
| |
|
Brick HA
| |
|
165 Chambers Bridge Road
| |
|
Bricktown, NJ 07732
|
(b)
County offices on aging within COAH Housing Region IV:
|
Mercer County Office on Aging
| |
|
640 S. Broad Street
| |
|
PO Box 8068
| |
|
Trenton, NJ 08650-0068
| |
|
Monmouth County Office on Aging
| |
|
21 Main and Court Center
| |
|
Freehold, NJ 07728
| |
|
Ocean County Office of Senior Services
| |
|
1027 Hooper Avenue, Building #2
| |
|
PO Box 2191
| |
|
Toms River, NJ 08754-2191
|
(c)
County boards of social services within COAH Housing
Region IV:
|
Mercer County Board of Social Services
| |
|
200 Woolverton St., PO Box 1450
| |
|
Trenton, NJ 08650-2099
| |
|
Monmouth County Div. of Social Services
| |
|
Kozloski Rd., PO Box 3000
| |
|
Freehold, NJ 07728
| |
|
Ocean County Board of Social Services
| |
|
1027 Hooper Ave., PO Box 547
| |
|
Toms River, NJ 08754-0547
|
(9)
Applications also will be mailed to prospective applicants
upon request.
D.
The following is a description of the random selection
method that will be used to select occupants of affordable housing in accordance
with the procedures employed by the administrative agency:
(1)
All households that wish to be considered for affordable
housing will be asked a series of questions to assess their likelihood of
being approved as a low- or moderate-income family.
(2)
If the applicant indicates that their total household
income is below the moderate income limit for their family size, they will
be eligible for placement in the applicant pool. Applicants will, of course,
be required to provide written documentation to evidence this and other eligibility
criteria at a later time.
(3)
Once a sufficient number of applicants have been placed
in the pool, the administrative agent will close the pool and no other applicants
will be considered until the applicant pool is reopened by the administrative
agent.
(4)
All households in the applicant pool will then be notified
of the location, date and time the random selection will take place. Each
applicant will be assigned a number that will be used to identify them in
the random selection process. This number will be provided to the applicant
prior to the random selection.
(5)
All numbers will be placed in a container and chosen
at random. Using the order set by the random selection, the administrative
agent will contact applicants that indicated that they lived or worked in
COAH Housing Region IV. Once those applicants are exhausted, the administrative
agent will contact applicants outside Region IV in the order in which they
were chosen.
(6)
As units become available, and in the order described
above, the administrative agent will notify applicants in writing that they
are among a group of applicants that are being considered for sale or rental
of an affordable unit. Applicants will be given 14 days to complete a full
application and submit it along with the requisite back-up documentation.
E.
A waiting list of all eligible candidates will be maintained
by the administrative agency in accordance with the provisions contained in
N.J.A.C. 5:80-26 et seq.
F.
The Borough of Pennington is ultimately responsible for
administering the affirmative marketing plan. The Borough of Pennington has
delegated this responsibility to the following administrative agencies: Community
Grants and Planning, Inc. (previously Housing Services, Inc.) for administering
the accessory apartment program; and the Housing Affordability Service of
HMFA for administering the other affordable units that are part of the Borough's
new construction component.
G.
The administrative agencies shall have the responsibility
to do the following:
(1)
To income qualify low- and moderate-income households;
(2)
To place income-eligible households in affordable units
upon initial occupancy;
(3)
To provide for the initial occupancy of affordable units
with income-qualified households;
(4)
To continue to qualify households for reoccupancy of
units as they become vacant during the period of affordability controls;
(5)
To assist with advertising and outreach to low- and moderate-income
households, if so stated in the contract;
(6)
To enforce the terms of the deed restriction and mortgage
loan as per N.J.A.C. 5:80-26 et seq.; and
(7)
Generally, to administer the Borough's affordable housing program, including administering and enforcing the affordability controls and this affirmative marketing plan, in accordance with the provisions of Chapter 58, entitled the "Affordable Housing Ordinance Provisions," of the Code of the Borough of Pennington, the regulations of the Council on Affordable Housing pursuant to N.J.A.C. 5:94 et seq., and the New Jersey Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq.
H.
The Borough Administrator within the Borough of Pennington
is the designated Municipal Housing Liaison who shall supervise the contracting
administrative agencies and shall serve as a liaison to the contracting administrative
agencies.
I.
As appropriate, the administrative agencies will refer
families to counseling services to low- and moderate-income applicants on
subjects such as budgeting, credit issues, mortgage qualification, responsibilities
of homeownership, rental lease requirements and landlord/tenant law. A complete
list of housing counseling providers will be provided to the family so that
they may identify a counseling provider that is convenient to their current
home and/or job. This list of housing counselors is maintained by the U.S.
Department of Housing and Urban Development (http://www.hud.gov/local/nj/homeownership/hsgcounseling.cfm).
J.
Households who live or work in the COAH Housing Region
IV (Monmouth, Ocean, and Mercer Counties) will be given preference for the
available affordable units. Applicants living outside the housing region shall
have an equal opportunity for units after the regional applicants have been
initially serviced. Pennington Borough intends to comply with N.J.A.C. 5:80-26
et seq.
K.
All developers of affordable housing units shall be required
to assist in the marketing of the affordable units in their respective developments
in accordance with the preceding paragraphs. Specifically, the cost of advertising
will be the responsibility of the developer where required as a condition
of the Pennington Borough Planning Board and/or in a developer's agreement
with the Borough of Pennington.
L.
The administrative agencies shall comply with monitoring
and reporting requirements as per N.J.A.C. 5:94-9.
