[Adopted 12-16-2002 by Ord. No. 9-2002]
This section of the Borough of Pemberton Code sets forth regulations
regarding low- and moderate-income housing units in the Borough of Pemberton
that are consistent with the provisions of N.J.A.C. 5:93 et seq. as effective
on June 6, 1994. These rules are pursuant to the Fair Housing Act of 1985
and Pemberton Borough's constitutional obligation to provide for its
fair share of low- and moderate-income housing.
The Borough of Pemberton's fair share obligation will be divided
equally between low- and moderate-income households as per N.J.A.C. 5:93-2.20.
Except for inclusionary developments constructed pursuant to low-income
tax credit regulations:
A.
At least half of all units within each inclusionary development
will be affordable to low-income households; and
B.
At least half of all rental units will be affordable
to low-income households; and
C.
At least 1/3 of all units in each bedroom distribution
pursuant to N.J.A.C. 5:93-7.3 will be affordable to low-income households.
Inclusionary developments that are not age-restricted will be constructed
in conjunction with realistic market demands so that:
A.
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
B.
At least 30% of all low- and moderate-income units are
two-bedroom units; and
C.
At least 20% of all low- and moderate-income units are
three-bedroom units; and
D.
Low- and moderate-income units that are age-restricted
may utilize a modified bedroom distribution. At a minimum, the number of bedrooms
will equal the number of age-restricted low- and moderate-income units within
the inclusionary development.
In conjunction with realistic market information, the following criteria
will be used in determining maximum rents and sale prices:
A.
Efficiency units will be affordable to a one-person household;
and
B.
One-bedroom units will be affordable to 1.5 person households;
and
C.
Two-bedroom units will be affordable to three-person
households; and
D.
Three-bedroom units will be affordable to 4.5 person
households; and
E.
Median income by household size will be established by
a regional weighted average of the uncapped Section 8 income limits published
by HUD as per N.J.A.C. 5:93-7.4(b); and
F.
The maximum sales prices of low- and moderate-income
units within each inclusionary development will be affordable to households
earning no more than 70% of median income. In averaging an affordability range
of 55% for sales units, the municipal ordinance will require moderate-income
sales units to be available for at least three different prices and low-income
sales units to be available for at least two different prices.
G.
For both owner-occupied and rental units, the low- and
moderate-income units will utilize the same heating source as market units
within an inclusionary development; and
H.
Low-income units will 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 will 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 (g); and
I.
The regulations outlined in N.J.A.C. 5:93-9.15 and 9.16
will be applicable for purchased and rental units.
For rental units, developers and/or municipal sponsors may:
A.
Establish one rent for a low-income unit and one for
a moderate-income unit for each bedroom distribution; and
B.
Gross rents, including an allowance for tenant-paid utilities,
will 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 (f). The tenant-paid
utility allowance will be consistent with the utility allowance approved by
HUD for use in New Jersey.
C.
The maximum rents of low- and moderate-income units within
each inclusionary development will be affordable to households earning no
more than 60% of median income. In averaging an affordability range of 52%
for rental units, developers and/or municipal sponsors of rental units may
establish one rent for a low-income unit and one rent for a moderate-income
unit for each bedroom distribution.
For-sale units:
A.
The initial price of a low- and moderate-income owner-occupied
for-sale housing unit will 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 fee do not exceed 28% of the eligible gross
monthly income; and
B.
Master deeds of inclusionary developments will regulate
condominium or homeowner association fees or special assessments of low- and
moderate-income purchasers does not exceed 28% of the eligible gross monthly
income fee. This percentage is consistent with the requirements of N.J.A.C.
5:93-7.4(c). Once established within the master deed, the established percentage
will not be amended without prior approval from COAH; and
C.
The Borough of Pemberton will 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; and
D.
The Borough of Pemberton will 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); and
E.
Municipal, state, nonprofit and seller options regarding
sale units will be consistent with N.J.A.C. 5:93-9.5 — 9.8. Municipal
rejection of repayment options for sale units will be consistent with N.J.A.C.
5:93-9.9; and
F.
The continued application of options to create, rehabilitate
or maintain low- and moderate-income sale units will be consistent with N.J.A.C.
5:93-9.10; and
G.
Eligible capital improvements prior to the expiration
of controls on sale units will be consistent with N.J.A.C. 5:93-9.11; and
H.
The regulations detailed in N.J.A.C. 5:93-9.12 —
9.14 will be applicable to low- and moderate-income units that are for-sale
units.
In zoning for inclusionary developments the following is required:
A.
Low- and moderate-income units will be built in accordance
with N.J.A.C. 5:93-5.6(d):
|
Minimum Percent of Low/Moderate-Income Units Completed
|
Percent of Market Housing Units Completed
| |
|---|---|---|
|
0
|
25
| |
|
10
|
25+1
| |
|
50
|
50
| |
|
75
|
75
| |
|
100
|
90
| |
|
100
|
B.
A design of inclusionary developments that integrates
low- and moderate-income units with market units is encouraged as per N.J.A.C.
5:93-5.6 (f)
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 Pemberton will designate Housing
Affordability Service with the responsibility of ensuring the affordability
of sales and rental units over time. Housing Affordability Service will be
responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
A.
In addition, Housing Affordability Service will 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; and
B.
Newly constructed low- and moderate-income sales units
will remain affordable to low- and moderate-income households for at least
30 years. Housing Affordability Service and/or the Borough of Pemberton will
require all conveyances of newly constructed units to contain the deed restriction
and mortgage lien adopted by COAH and referred as Technical Appendix E as
found in N.J.A.C. 5:93; and
C.
Housing units created through the conversion of a nonresidential
structure will be considered a new housing unit and will be subject to thirty-year
controls on affordability. Housing Affordability Service and/or the Borough
of Pemberton will require COAH's appropriate deed restriction and mortgage
lien.
Regarding rehabilitated units:
A.
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
B.
Rehabilitated renter-occupied housing units that are
improved to code standard will be subject to affordability controls for at
least 10 years.
Regarding rental units:
A.
Newly constructed low- and moderate-income rental units
will remain affordable to low- and moderate-income households for at least
30 years. Housing Affordability Service and/or Pemberton Borough will require
the deed restriction and lien and deed of easement referred as Technical Appendix
H as found in N.J.A.C. 5:93; and
B.
Affordability controls in accessory apartments will 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
will extend for 30 years (N.J.A.C. 5:93-5.9); and
C.
Alternative living arrangements will 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 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 will extend for
30 years (N.J.A.C. 5:93-5.9).
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
Pemberton Borough's land use ordinances. Accordingly the Borough of Pemberton
will eliminate development standards that are not essential to protect the
public welfare and to expedite or fast track municipal approvals/denials on
certain affordable housing developments. The Borough of Pemberton will adhere
to the components of N.J.A.C. 5:93-10.1-10.3.
The Borough of Pemberton has a fair share obligation of 16 housing units,
of which 10 units is new construction.
This article will apply to all developments that contain proposed low-
and moderate-income units that are listed below and any future developments
that may occur.
