[Adopted 1-24-2005 by Ord. No. 05-04]
This article shall be known and may
be cited as the "Affordable Housing Ordinance of the Township of Vernon."
A.
This article is intended to establish and
facilitate how housing rehabilitation and new construction can be
provided for low- and moderate-income households within the Township
of Vernon in order for the Township to meet its housing obligations
as determined by the New Jersey Council on Affordable Housing (COAH).
B.
It is intended to provide technical and
financial assistance to eligible homeowners to rehabilitate homes
occupied by low- and moderate-income households.
C.
It is intended to provide a mechanism for
eligible homeowners to gain access to loans and/or grants from the
Vernon Township Housing Trust Fund.
D.
Rehabilitation funding shall be obtained
from grant programs sponsored by the New Jersey Department of Community
Affairs and/or funding from the Township Housing Trust Fund and/or
other sources to be determined.
E.
Vernon Township has entered into three
regional contribution agreements with municipalities in order to partially
meet the present and prospective need component of its obligation
(N.J.A.C. 5:93-6).
A.
Words and phrases defined in the Fair Housing
Act, the Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.) and in
the Substantive Rules of the Council on Affordable Housing (COAH)
(N.J.A.C. 5:93-13) shall be incorporated in this article as if written
herein.
Editor's Note: See N.J.S.A. 52:27D-301
et seq.
B.
FAIR HOUSING PROGRAM
GROSS INCOME
HOUSING ADMINISTRATOR
HOUSING TRUST FUND
INDIGENOUS HOUSING NEED
REHABILITATION
As used in this article, the following
terms shall have the meanings indicated:
The program provided under the terms of this article.
The total income of all members of an applicant's household,
including but not limited to wages, tips, interest, dividends, and
retirement funds.
Appointed by the Mayor and may be retained as an experienced
individual or agency to assist in the administration of the housing
rehabilitation program and any program further approved by the Township
Council and COAH.
[Amended 4-27-2015 by Ord. No. 2015-08]
The Vernon Township Housing Trust Fund established for financing
low- and moderate-income housing rehabilitation and development.
Deficient housing units occupied by low- and moderate-income
households within a municipality.
The restoration of a deficient or substandard dwelling unit
to a safe and sanitary condition as provided herein.
Eligibility is limited to only owners
of dwelling units located within Vernon Township for rehabilitation
assistance provided by this article.
A.
A homeowner who is a member of either a
low- or moderate-income household who occupies the dwelling unit to
be rehabilitated, or an owner who rents the same dwelling unit to
be rehabilitated to a low- or moderate-income household shall be eligible
for the assistance provided by this article. The owner must further
agree to rent the rehabilitated dwelling unit to a low- or moderate-income
household for a required minimum time period and rate consistent with
COAH guidelines. In any case, proof of income of the household occupying
the rehabilitated unit shall be required and reviewed by the Housing
Administrator.
B.
Any dwelling unit which is proposed for
rehabilitation shall be located in the Township of Vernon and shall
be considered deficient or substandard as determined by the Housing
Administrator who may seek advice from the Township Construction Official.
In order to be deficient, a unit must satisfy any two of the following
characteristics:
(1)
Constructed prior to 1940.
(2)
Occupied by more than one person per room.
(3)
No private entrance to the dwelling unit.
(4)
No exclusive access to complete plumbing
facilities which meet the health and sanitary codes of Vernon Township.
(5)
No adequate kitchen facilities such as
piped water, a safe operating stove or an operating refrigerator.
C.
Any unit shall be considered substandard
if it has deficiencies that violate the US Department of Housing and
Urban Development (HUD) Section 8 Existing Housing Quality Standards.
D.
Upon completion, a rehabilitated unit shall
be safe and sound and meet all health and safety code requirements
as certified through the issuance of a certificate of occupancy.
E.
The homeowner shall, in writing, agree
to comply with all the requirements of this article, the rules and
regulations established by COAH, and any other applicable ordinance
of Vernon Township at the time the agreement for assistance under
this article is executed.
Owners who secure financial assistance
under the terms of this article shall be entitled to the following
rights and shall undertake the following obligations:
A.
The right to apply for and receive special
property tax assessment treatment in accordance with applicable state
law.
B.
The obligation to place a deed restriction
on the property specifying that only low- or moderate-income households
may occupy the designated dwelling unit. The deed restriction shall
take effect on the date the application is approved and money has
been made available for the rehabilitation project. The deed restriction
shall be in effect for six years for owner-occupied units and 10 years
for renter-occupied units as per N.J.A.C. 5:93-5.2(g). The beginning
of the restricted time period shall be from the date the certificate
of occupancy is issued following completion of the rehabilitation
work. Sale of the deed-restricted property shall not affect the deed
restriction.
C.
The obligation to sell or rent the dwelling
unit at prices within the range of affordability as set forth by COAH
for the period of the deed restriction. Increases in the affordability
controls may be granted upon written application to and review by
the Housing Administrator assuring compliance with COAH's requirements
for changes in the affordability controls.
No financial assistance from the
Housing Trust Fund shall be disbursed to any applicant without full
compliance with the requirements of this article and other applicable
regulations. Any person who violates or who fails to comply with this
article or the other applicable regulations shall be penalized no
more than $1,000 and/or jailed no longer than 90 days pursuant to
this article or such other period of time as may be permitted pursuant
to other applicable state regulations and, as part of the penalty,
shall make restitution of any and all funds paid from the Housing
Trust Fund. Nothing herein shall prevent the Township of Vernon from
taking such other lawful action as is necessary to prevent or remedy
any violation.
Under this section, Vernon Township
undertakes to actively market, through advertising in the media, distributing
flyers, etc., the availability of rent or sale price-restricted units,
which are to be made available to low- and moderate-income households.
The Housing Administrator is responsible for these activities.
A.
Staff.
(1)
The Housing Administrator shall perform
the following duties:
(a)
Conducting an affirmative marketing
program:
[1]
Mailing to all homeowners, at least
once a year, an announcement of the Fair Housing Program. This announcement
shall include an explanation of the eligibility requirements as well
as the procedures for making application for rehabilitation assistance
under the program.
[2]
Conducting at least one well publicized
public meeting to outline and answer questions about the Fair Housing
Program.
[3]
Issuing periodic press releases to
inform the public of news related to the Fair Housing Program and
to promote interest in the program.
[4]
Preparation of information/application
packets for distribution to interested homeowners.
(b)
Preparing the necessary applications,
financial statements, a summary of the commitments to the rules and
regulations of the program, and such other forms to be executed in
administering the program. The final set of forms and documents prepared
by the Housing Administrator shall be approved by the Mayor. The appropriate
forms shall include, along with other data deemed appropriate, proof
of ownership, income qualifications or the occupants of the rehabilitated
unit, the deed restrictions and the time period for affordability
controls applicable to the property, a description of the work to
be performed, the total cost of the work, how much will be a loan
and how much a grant, as well as the method of repaying any loan.
[Amended 4-27-2015 by Ord. No. 2015-08]
(c)
Determining the eligibility of the
applicant based on the requirements of this article and the data provided
on the forms required as part of the application procedure.
(d)
Maintaining an updated file on available
governmental and nongovernmental programs for financial assistance
for low- and moderate-income households, including eligibility requirements,
application forms, filing deadlines, and whether funding is currently
available.
(e)
Providing technical assistance to
eligible low- or moderate-income applicants to apply for financial
assistance for housing rehabilitation from state and federal programs
and from the Housing Trust Fund.
(f)
Determining the deficiencies of an
applicant's dwelling unit and submitting the findings in writing to
be kept on file as part of the application.
(g)
Maintaining a list of approved contractors
based upon satisfactory references on past work performed and on satisfactory
credit ratings.
(h)
Determining whether the proposed
work to be performed meets the parameters of this article and whether
the cost to complete that work is reasonable. Said determination shall
be in writing and kept on file as part of the application.
(i)
Conducting appropriate, periodic
inspections of the work being done and, when satisfactorily completed,
issuing a certificate of compliance bearing the date the certificate
was issued. A copy of this certificate shall be kept as part of the
file on the application.
(j)
Preparing and periodic presentation
(at least once a year) to the Mayor of a report on the number and
type of rehabilitation applications received and the amount of technical
assistance provided by the Housing Administrator. The report shall
contain, at a minimum:
[Amended 4-27-2015 by Ord. No. 2015-08]
(k)
Maintaining regular office hours
to be available to meet with interested homeowners.
(3)
The Housing Administrator can obtain the
services of professional consultants, where necessary, in order to
effectuate consistency with the Fair Share Plan.
B.
Funding.
(1)
The Township shall include in its annual
budget sufficient funds to pay for the costs of administering this
article. The money expended for preparing and implementing the Fair
Housing Ordinance shall, in accordance with the Fair Housing Act,
be considered a mandated expenditure exempt from the limitations on
final appropriations imposed pursuant to P.L. 1976, c. 68 (N.J.S.A.
40A:4-45.1 et seq.).
Editor's Note: See N.J.S.A. 52:27D-301
et seq.
(3)
State and federal funds shall be disbursed
according to the rules and regulations of the agency administering
the funds.
(4)
Housing Trust Fund monies shall be available
for housing rehabilitation. The funds shall be disbursed as grants
for rehabilitating deficient dwelling units owned or occupied by low-income
households. The funds shall be disbursed as loans bearing 2% simple
interest for rehabilitation of deficient dwelling units owned and
occupied by low- and moderate-income households or deficient dwelling
units owned by an absentee landlord but occupied by either a low-
or moderate-income household.
(5)
The above loans may be disbursed to a qualified
resident homeowner who agrees to a lien on the property for repayment
of the loan plus accrued interest. The loan and interest shall be
repaid as determined by the Township Housing Administrator and the
homeowner. Where the property is sold or transferred prior to the
loan being repaid, the entire remaining balance of the loan plus accrued
interest shall be paid to the Housing Trust Fund at the time of transfer.
A.
Application. Applications and other required
forms shall be made available at the office of the Housing Administrator.
Technical assistance shall be available from that office to assist
applicants in completing and submitting an application. There shall
be no fee for filing an application.
B.
Review.
(1)
The Housing Administrator shall determine
the completeness of the application.
(2)
Upon a determination of completeness, the
Housing Administrator shall determine whether the applicant meets
the eligibility criteria.
(3)
Upon a determination that the applicant
is eligible under the program, the Housing Administrator shall inspect
the property to determine whether it qualifies as deficient under
this article.
(4)
Upon a determination that the dwelling
unit is deficient, the Housing Administrator shall cause a written
description of the work required to be completed in order to meet
the criteria of this article and related health and safety codes and
submit a copy to the applicant and retain one copy to be kept as part
of the applicant's file. It shall be prepared by an individual qualified
to make such written description.
(5)
Upon receipt of this description of the
work required to be completed, the applicant shall indicate any discrepancies
or omissions in writing to the Housing Administrator. The Housing
Administrator shall review the applicant's comments and provide a
written response, including any appropriate adjustments to the original
report. A copy of this response shall be submitted to the applicant
with a copy to be kept as part of the applicant's file.
(6)
Following the final determination of the
work to be performed and acceptance by the homeowner, the Housing
Administrator shall seek written proposals, together with the cost
to complete the work, from appropriate qualified contractors. A list
of these contractors shall be kept in the office of the Housing Administrator.
The Housing Administrator shall recommend a contractor based upon
completeness of the proposal and the lowest overall cost submitted.
This recommendation shall be submitted to the applicant for review
and concurrency.
C.
Action on the application.
(1)
Upon review of the contractor's written
proposal and cost estimate, the Housing Administrator shall approve,
disapprove, or modify the proposal as might be appropriate to meet
the requirements of the applicable ordinances and requirements of
this program and the judgment of both as to the reasonableness of
the cost. If the proposal is modified or disapproved, the applicant
and the contractor may meet with the Housing Administrator to make
appropriate modifications until the application is approved.
(2)
Upon approval of the work to be performed
and the related cost, together with the eligibility of the applicant,
all contracts shall be executed.
(a)
The contract between the applicant
and the Township of Vernon and/or other governmental agencies covering
the amount of the loan, the purpose of the loan, the deed restrictions
and affordability controls, payback requirements for any loans, manner
of payment to the contractor, including retainage for full and acceptable
construction, penalties for noncompliance, and such other requirements
of the program as required by law.
(b)
The contract between the contractor
and the applicant outlining the work to be performed, the cost, including
an amount for retainage to assure the acceptable completion of the
construction, and the time of performance. This contract must be reviewed
by and acceptable to the Township of Vernon or the other governmental
agency covering the amount of the loan.
(3)
All payments which require expenditures from the Township Housing Trust Fund shall be made by the Township to the contractor in accordance with the provisions of the contract outlined in Subsection C(2)(b) above, subject to a guaranty that the money will go toward completion of the work included in the application and the contract. Any agreements with state and/or federal agencies will be conditioned upon the criteria of those agencies.
(4)
Following completion of the work, the Housing
Administrator shall inspect the dwelling unit and certify whether
or not the work has been satisfactorily completed. If the work is
sufficient, a certificate of compliance shall be issued. If the work
is insufficient, the contractor shall be notified and given 90 days
to remedy the conditions cited. If the conditions are not corrected
within 90 days, the Housing Administrator shall be authorized to either
use remaining funds of the retainage under the construction contract
or such other remedies as appropriate to complete the work in a satisfactory
manner.
A.
The Township of Vernon has a 1987-1999
COAH Fair Share Obligation of 125 units of which 54 are new construction.
These 54 units are part of a regional contribution agreement (RCA)
program with Ogdensburg (20 rehab units), Ridgefield (20 rehab units)
and Passaic (14 rental units). The remaining 71 units will be for
rehabilitation of housing units within the Township. This article
incorporates an affirmative marketing plan, which shall apply to all
future developments that will contain low- and moderate-income units:
(1)
The affordable marketing plan is a regional
marketing strategy designed to attract buyers and/or renters of all
majority and minority groups, regardless of sex, age or number of
children, to housing units which are being marketed by a developer/sponsor,
municipality and/or designated administrative agency of affordable
housing. The plan will address the requirements of N.J.A.C. 5:93-11.
In addition, the plan prohibits discrimination in the sale, rental,
financing or other services related to housing on the basis of race,
color, sex, religion, handicap, age, familial status/size or national
origin. Vernon Township is in the housing region consisting of Sussex,
Bergen, Passaic and Hudson Counties. The affirmative marketing program
is a continuing program and will meet the following requirements.
(2)
All newspaper articles, announcements and
requests for applications for low- and moderate-income units will
appear in the New Jersey Herald, Star Ledger, and The Advertiser News
North.
(3)
The primary marketing will take the form
of at least one press release sent to the above-mentioned publications
and a paid display advertisement in each of the above newspapers.
(4)
Additional advertising and publicity will
be on an as-needed basis. The advertisements will include a description
of the:
(5)
All newspaper articles, announcements and
requests for applications for low- and moderate-income housing will
appear in the Vernon Township municipal web site, Vernon Township
Newsletter, and any other religious and organizational publications/newsletters
which may exist within the region at that time.
(7)
The following is the designated location
of applications, brochures, signs and/or posters used as part of the
affirmative marketing program, including specific employment centers
within the region:
(8)
At the time of need, a listing of community
contact persons and/or organizations in Sussex, Bergen, Passaic and
Hudson Counties who will provide assistance in the affirmative marketing
program. Particular emphasis on contacts that will reach out to groups
which are least likely to apply for housing within the region.
(9)
Periodic flyers/brochures and applications
will be distributed to the County Board of Realtors in the housing
section for circulation in their journal for distribution among their
members.
(10)
Applications will be mailed directly
to prospective applicants upon request.
(11)
Additionally, periodic informational
brochures and applications will be sent to the administrative staff
of each of the following agencies in the Counties of Sussex, Bergen,
Passaic and Hudson:
B.
The following is a description of the random
selection method that will be used to select occupants of low- and
moderate-income housing:
(1)
Applicants will be qualified and provided
opportunity on a first-come-first-served basis within each category
(low-income and moderate-income) as modified below.
(2)
The Vernon Township Housing Program will
be the agency to contract with the Township of Vernon to administer
the affirmative marketing program. The Vernon Township Housing Program
may be a private organization, a county organization or a unit of
the Township (in which case there will be no contract). The Vernon
Township Housing Program will have the responsibility to income qualify
low- and moderate-income households; to place income eligible households
in low- and moderate-income units upon initial occupancy; to provide
for the initial occupancy of low- and moderate-income units with income
qualified households; to continue to qualify households for reoccupancy
of units as they become vacant during the period of affordability
controls; to assist with advertising and outreach to low- and moderate-income
households; and to enforce the terms of the deed restriction and mortgage
loan as per N.J.A.C. 5:93-9.1. The Housing Administrator within Vernon
Township is the designated housing officer to act as administrator
of the Vernon Township Housing Program if a unit of the Township or
to coordinate with same pursuant to the contract if the agency is
private or county. The Vernon Township Housing Program will provide
counseling services to low- and moderate-income applicants on subjects
such as budgeting, credit issues, mortgage qualification, rental lease
requirements and landlord/tenant law.
(3)
Households who live or work in the COAH-established
housing region may be given preference for sales and rental units
constructed within that housing region. Applicants living outside
the housing region will have an equal opportunity for units after
regional applicants have been initially serviced. Vernon Township
intends to comply with N.J.A.C. 5:93-11.7.
(4)
All developers of low- and moderate-income
housing units will be required to assist in the marketing of the affordable
units in their respective developments.
(5)
The marketing program will commence at
least 120 days before the issuance of either temporary or permanent
certificates of occupancy. The marketing program will continue until
all low- and moderate-income housing units are initially occupied
and for as long as affordable units are deed restricted and occupancy
or reoccupancy of units continues to be necessary.
(6)
The Vernon Township Program will comply
with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6
and 12.1.
C.
Vernon Township currently operates a self-funded
program to rehabilitate substandard housing units occupied by low-
and moderate-income households. The Township may in the future request
funding from other sources to supplement the program. Future rehabilitation
programs will also be administered by the Vernon Township Housing
Administrator. The Vernon Township Housing Administrator will prepare
a marketing plan for the rehabilitation program. The rehabilitation
program will be consistent with N.J.A.C. 5:93-5.2(b) through 5.2(1).
