[Adopted 3-28-1988 as Ord. No. 88-6]
This Article shall be known as the "Affordable Housing Ordinance" of
the Borough of New Providence.
[Amended 9-13-1993 by Ord. No. 93-12]
The purpose of this Article is to specify the affordable dwelling units
to be constructed, to define the eligibility standards and to establish the
rules and regulations governing the construction, sales and rentals of affordable
housing units, pursuant to the Fair Housing Act of 1985.[1] The further 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 Article
shall be interpreted within the framework of COAH's rules on development
fees.
[1]
Editor's Note: See N.J.S.A. 52:27D-301 et seq.
[Amended 9-13-1993 by Ord. No. 93-12]
All definitions found in the Municipal Land Use Law and the Zoning Ordinances
of the Borough of New Providence[1] shall apply to this Article, and in addition, the following definitions
shall apply:
The New Jersey Council on Affordable Housing.
Money paid by an individual, person, partnership, association, company
or corporation for the improvement of property as permitted in COAH's
rules.
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 building permit may be obtained by the Tax Assessor utilizing
estimates for construction cost. Final equalized assessed value will be determined
at project completion by the Municipal Tax Assessor.
A determination by the Council approving a municipality's housing
element and fair share plan in accordance with the provisions of the 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 contained therein.
[Amended 10-10-1989 by Ord. No. 89-17; 8-10-1992
by Ord. No. 92-12]
A.
All developments in the A1, A2 and A3 Zoning Districts
shall be required to provide housing affordable to lower-income households
at the rate of 20% of the number of dwelling units constructed.
[Amended 9-13-1993 by Ord. No. 93-12]
B.
Size. A minimum of 15% of the affordable housing units
shall be three-bedroom units, and a minimum of 35% of the affordable units
shall be two-bedroom units. No more than 20% of the affordable units shall
be efficiency units. At least one-half (1/2) of all two-bedroom and one-half
(1/2) of all three-bedroom affordable units shall be for very low (low) income
as opposed to low (moderate) income occupancy. If a percentage yields one-half
(1/2) or more, the number shall be rounded up to the next whole number. If
a required percentage yields a fraction of less than one-half (1/2), the number
may be rounded down to the next whole number. Odd units shall be considered
very low (low) income units.
C.
Restriction on age. Up to 25% of the affordable housing
units constructed on any site may be restricted for occupancy by households
in which at least one member is aged 65 years or older.
One-half (1/2) of all affordable housing units shall be priced so as
to be eligible for rent or purchase by very low (low) income households earning
between a floor of 40% and a ceiling of 50% of the median household income
for the region, and one-half (1/2) of all affordable units shall be priced
so as to be eligible for rent or purchase by low (moderate) income households
earning between a floor of 50% and a ceiling of 80% of the median household
income for the region. Such housing units shall be priced to be affordable
to households representing a reasonable cross section of households within
the above-stated income ranges, using the following distribution of prices
for each 20 affordable units:
Affordable housing costs shall not exceed 28% of the monthly household
income for sale housing, after a down payment of 10%, and not more than 30%
of the monthly household income for rental housing, considering the following:
[Amended 10-10-1989 by Ord. No. 89-17]
In the event that an affordable unit cannot be sold or rented, as applicable
within 90 days of notifying the Housing Officer of the availability of the
unit, the borough may purchase the unit pursuant to N.J.A.C. 5:92-12.7. If
the borough does not purchase the unit, the seller may apply to the Affordable
Housing Board for relief. The application shall provide evidence of the seller's
having undertaken an affirmative marketing effort, consistent with the affirmative
marketing program developed by the Affordable Housing Board, to sell or rent
the unit. Relief to the seller shall not include exempting the unit from the
required low (moderate) or very low (low) income sales price or rent level,
nor shall relief include exempting the unit from restrictions on appreciation
allowable upon resale or restrictions on escalation allowable upon rerental.
The Affordable Housing Board may, however, allow the seller to sell or rent
the subject unit to a household whose income exceeds that otherwise required,
provided that in no event shall an affordable housing unit be sold or rented
to a household earning in excess of 80% of the applicable median income.
Government subsidies may be used at the discretion of the applicant
and are encouraged. The borough shall cooperate in obtaining such subsidies
by making application for assistance either in concert with or on behalf of
a private developer, if requested to do so, and by providing a resolution
of need and authorization of tax abatement, where required, to facilitate
obtaining such subsidies. The lack of said subsidies shall in no way alter
or diminish the affordable housing requirements of this Article and the Zoning
Ordinance.[1]
A.
Covenant required. All affordable dwelling units shall
be covered by covenant, with the borough as a party beneficiary, to ensure
that, in all initial sales and rentals and in all subsequent resales and rerentals,
the units will continue to remain available and affordable to the lower-income
households for which they were intended. All such covenants shall be approved
by the Borough Attorney.
B.
New units. The application for the issuance of a certificate
of occupancy for any newly designated affordable housing unit shall include
certification by the Housing Officer to the Affordable Housing Board documenting
the eligibility of the unit and the qualification of the new purchaser and/or
occupant as a lower-income household.
C.
Resale, transfer or change. Prior to any resale or transfer
of ownership or change of occupancy of a designated affordable housing unit,
application shall be made for a new certificate of occupancy. The application
for a certificate of occupancy shall include certification by the Housing
Officer to the Affordable Housing Board documenting the continued eligibility
of the unit and the qualification of the new purchaser and/or occupant as
a lower-income household.[1]
[1]
Editor's Note: Original Article 9, Subdivision D, Lease periods,
which immediately followed this subsection, was deleted 10-10-1989 by Ord.
No. 89-17.
D.
Requests for certification. All requests for certification
shall be made by the seller or owner in writing, and the Housing Officer shall
grant or deny such certification within 30 days of the receipt of the request.
E.
Administrative procedures. The borough shall develop
reasonable administrative procedures for qualifying the occupants of affordable
housing. Procedures shall be directed and administered by the Affordable Housing
Board and the Housing Officer as set forth in this Article.
F.
Priority of borough residents. Lower-income employees
of the borough and lower-income residents of the Borough shall have first
priority over the first 50% of the affordable housing units constructed in
the borough during the initial phase of occupancy.
[Amended 10-10-1989 by Ord. No. 89-17]
G.
Adjustments. Each year, sales prices and rents may be
increased over the original levels in accordance with the percentage increase
in median income for each housing region as determined by applicable uncapped
Section 8 income limits, published by the Department of Housing and Urban
Development. In the case of a transfer of ownership of a sales unit, the seller
shall also be eligible for reimbursement for documented monetary outlays for
capital improvements that render the unit suitable for a larger household,
increased over the original costs in accordance with the Annual Metropolitan
New York Regional Consumer Price Index for Housing of the Department of Labor,
plus reimbursements for reasonable costs incurred in selling the unit, less
withholdings for the current costs of essential maintenance not undertaken
by the owner, provided that in no case shall the maximum price of the improved
unit exceed the limits of affordability for the larger household.
H.
Removal of restrictions. After 20 years from the date
of its initial occupancy, an affordable housing unit may be sold or rented
without restrictions; provided, however, that at the time of the removal of
the deed restriction, the owner of a rental unit shall convey to the Housing
Fund of the borough the difference between the appraised value of the unit
(as determined by an independent appraisal by an appraiser agreed upon by
the Borough Council and the unit owner) and the affordable rent level then
applicable to the housing unit. With sales units, the difference between the
actual sales price of the unit and the affordable sales price shall be conveyed
to the Housing Fund at the time of the first transfer of ownership following
the removal of the deed restriction.
I.
Rental units. Rental units may be converted for sale
as condominium or fee-simple units, but any sale of converted units shall
continue to be restricted as to purchase price and occupancy to persons meeting
the income eligibility standards as set for the particular unit until the
twenty-year restriction period has passed.
J.
Construction phases.
(1)
The construction of the affordable housing units shall
be phased in accordance with the following schedule:
|
Maximum Percentage of Total Market Dwelling Units
|
Minimum Percentage of Affordable Dwelling Units
| |
|---|---|---|
|
25
|
0
| |
|
25 + 1 unit
|
10
| |
|
50
|
50
| |
|
75
|
75
| |
|
90
|
100
| |
|
100
|
100
|
(2)
The developer may construct the first 25% of the market
units without constructing any affordable housing units. No certificates of
occupancy shall be issued for any of the second 25% of the market units until
10% of the affordable units [of which one-half (1/2) must be very low income]
shall have been issued certificates of occupancy. No certificates of occupancy
shall be issued for any of the third 25% of the market units until at least
50% of the affordable units [of which one-half (1/2) must be very low income]
have been issued certificates of occupancy. No certificates of occupancy shall
be issued for any of the final 25% of the market units until at least 75%
of the affordable units [of which one-half (1/2) must be very low income]
have been issued certificates of occupancy. Before the last 10% of the market
units have been issued certificates of occupancy, 100% of the required affordable
units shall have been issued certificates of occupancy.
K.
Location and exterior. The affordable dwelling units
shall have compatible exteriors to the market units and shall be located so
that they have comparable access to that of the market units to all common
elements within the development.
L.
Fees.
(1)
Notwithstanding any other requirement of the borough,
the following fees shall be waived for every unit designated as an affordable
housing unit and only for those units designated as affordable housing units:
(a)
Sewer connection fees applicable to affordable housing
units.
(b)
Subdivision and site plan application fees applicable
to affordable housing units.
(c)
Building permit fees, except state and third-party fees,
applicable to affordable housing units.
(d)
Certificate of occupancy fees applicable to affordable
housing units.
(2)
The borough shall not oppose an application to the Board
of Public Utilities Commissioners for waiver of water connection fees.
[Amended 10-10-1989 by Ord. No. 89-17]
A.
An action of foreclosure by a financial institution regulated
by state and/or federal law shall extinguish controls on affordable housing
units. Notice of foreclosure shall allow the borough to purchase the affordable
housing unit at the maximum permitted sales price and to reinstate the affordability
controls.
B.
In the event of a foreclosure sale, the purchaser of
the affordable housing unit shall be obligated to pay to the Borough Housing
Fund the difference between the maximum price permitted at time of foreclosure
and the amount necessary to redeem the debt to the financial institution,
with foreclosure costs, and the borough shall be obligated to replace the
unit pursuant to N.J.A.C. 5:92-12.9.
[Added 9-13-1993 by Ord. No. 93-12]
Within Zoning Districts A1, A2 and A3 developers shall pay a development
fee of one-half of one percent (1/2 of 1%) of the equalized assessed value
of any eligible residential activity pursuant to § 275-19.
[Added 9-13-1993 by Ord. No. 93-12]
Developers within OR, C, C1, C2, RL and LI Zoning Districts shall pay
a fee of 1% of equalized assessed value for eligible nonresidential activities
pursuant to § 275-19.
[Added 9-13-1993 by Ord. No. 93-12]
A.
Developers of low- and moderate-income units shall be
exempt from paying development fees.
B.
Developers that expand an existing structure shall pay
a development fee. The development fee shall be calculated based on the increase
in the equalized assessed value of the improved structure.
C.
Developers that have received preliminary or final approval
prior to the effective date of this section shall be exempt from paying a
development fee unless the developer seeks substantial change in the approval.
[Added 9-13-1993 by Ord. No. 93-12]
A.
Developers shall pay 50% of the calculated development
fee to the Borough of New Providence at the issuance of building permits.
The development fee shall be estimated by the Tax Assessor prior to the issuance
of building permits.
B.
Developers shall pay the remaining fee to the Borough
of New Providence at the issuance of certificates of occupancy, the Tax Assessor
shall calculate the equalized assessed value and the appropriate development
fee. The developer shall be responsible for paying the difference between
the fee calculated at certificate of occupancy and the amount paid at building
permit.
