Township of Washington, NJ Article I Administration

§ 3-1 Purpose.

The purpose of this article is to establish the administrative mechanisms to carry out the Township's responsibility to assist in making available the affordable housing program required by the housing element of the Master Plan of the Township.

§ 3-2 Definitions.

A. For the purposes of this chapter, the terms are used as defined in the Development Regulations Ordinance.[1] Where applicable, words and phrases used in this chapter shall have the meaning as such words and phrases have in the Fair Housing Act, N.J.S.A. 52:27D-301 et seq., or in regulations established by the Council on Affordable Housing.

[1] Editor's Note: See Ch. 64, Development Regulations, and Ch. 123, Zoning.

B. In addition, the following terms are defined as follows:

AFFORDABLE HOUSING DEVELOPMENT

A development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.

[Added 7-18-2006 by Ord. No. 2006-20; amended 5-19-2015 by Ord. No. 2015-05]

AFFORDABLE HOUSING UNIT

A low- or moderate-income dwelling unit is an obligation that can be satisfied by constructing an affordable townhouse or equivalent, alternative living arrangements (N.J.A.C. 5:94-4.8) or assisted living residences (N.J.A.C. 5:94-4.13).

[Added 5-17-2005 by Ord. No. 2005-14]

AFFORDABLE TOWNHOUSE UNIT

A dwelling that shall consist of two or more attached dwellings, where each dwelling unit is compatibly designed in relation to all other market rate units within the boundaries of the inclusionary development. Each dwelling unit may be a maximum of 35 feet in height. When permitted by the applicable zoning regulations, a condominium style unit may be substituted. An affordable townhouse unit or condominium can be configured as an alternative living arrangement (N.J.A.C. 5:94-4.8), where one bedroom satisfies one affordable housing unit. The dwelling units are restricted to low- and moderate-income individuals or families. The affordable units shall be deed restricted in respect to controls on affordability as defined in N.J.A.C. 5:94-7.1 et seq., N.J.A.C. 5:93-9.1 and N.J.A.C. 5:80-26.1 et seq. All affordable housing units must comply with all other zoning district requirements where the inclusionary development is located.

[Added 5-17-2005 by Ord. No. 2005-14]

AGE-RESTRICTED HOUSING

Housing designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population where the head of the household is a minimum age of either 62 years, or 55 years and meets the provision of 42 U.S.C. § 3601 et seq. The developer determines the minimum age as permitted under 42 U.S.C. § 3601 et seq. This also applies to the term "senior citizen."

[Added 5-17-2005 by Ord. No. 2005-14]

COAH

The New Jersey Council on Affordable Housing.

[Added 12-18-2001 by Ord. No. 01-14]

DEVELOPMENT FEES

Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.

[Added 12-18-2001 by Ord. No. 01-14]

DEVELOPMENT REGULATIONS ORDINANCE

The chapters entitled "Development Regulations" and "Zoning" of the Washington Township Code.[2]

ENFORCING AGENCY

The Affordable Housing Management Service established within the New Jersey Housing and Mortgage Finance Agency pursuant to N.J.A.C. 5:80-26.1 et seq., or its successor.

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.

[Added 12-18-2001 by Ord. No. 01-14]

INCLUSIONARY

A housing development containing both affordable units and market-rate units. This term includes, but is not necessarily limited to: new construction, the conversion of a nonresidential structure to residential, and the creation of new affordable units through the reconstruction of a vacant residential structure.

[Added 5-17-2005 by Ord. No. 2005-14]

INCLUSIONARY CONTRIBUTION

The whole number ratio of one affordable housing unit for every eight market rate units, represented by a combination of affordable housing unit(s) to be constructed and/or payment in lieu of construction cash contribution(s). A developer may elect to substitute any or all of the payment in lieu of construction cash contributions by building affordable housing units. A developer cannot substitute payment in lieu of construction cash contributions for affordable housing units.

[Added 5-17-2005 by Ord. No. 2005-14]

JUDGMENT OF REPOSE

A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.

[Added 12-18-2001 by Ord. No. 01-14]

LOW-INCOME HOUSING

Housing affordable according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to 50% or less of the median gross household income for households of the same size within the housing region in which the housing is located.

[Added 5-17-2005 by Ord. No. 2005-14]

MARKET RATE UNITS

Housing within an inclusionary development, not restricted to low- and moderate- households, that may sell at any price determined by a willing seller and a willing buyer.

[Added 5-17-2005 by Ord. No. 2005-14]

MODERATE-INCOME HOUSING

Housing affordable according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to more than 50% but less than 80% of the median gross household income for households of the same size within the housing region in which the housing is located.

[Added 5-17-2005 by Ord. No. 2005-14]

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.

[Added 12-18-2001 by Ord. No. 01-14]

TOWNSHIP

The Township of Washington, Warren County, New Jersey.

[2] Editor's Note: See Ch. 64, Development Regulations, and Ch. 123, Zoning.

C. When used in this chapter, the terms "Council on Affordable Housing" or "COAH" shall be deemed synonymous and shall refer to the Council on Affordable Housing created by the Fair Housing Act, N.J.S.A. 52:27D-301 et seq.

§ 3-3 Enforcement; fees; jurisdiction; Affordable Housing Board; Housing Officer.

A. The Affordable Housing Management Service established within the New Jersey Housing and Mortgage Finance Agency pursuant to N.J.A.C. 5:80-26.1 et seq., or its successor, is hereby designated and appointed as the enforcing agency for the administration of the Township's affordable housing program, including but not limited to the regulation of the controls on affordability provided for in § 3-4 of this article, the marketing plans and regulations provided for pursuant to § 3-5 of this article and the like.

B. To give effect to the foregoing, the Mayor and Clerk of the Township are authorized and directed to execute, in the name of the Township, a contract with the enforcing agency. Three copies of the form of the contract are on file for public inspection in the office of the Township Clerk.

C. Fees.

(1) The enforcing agency shall collect the following fees for its services:

(a) For sales units:

[1] Initial contract fee: $300 per unit.

[2] Resale occupancy: $150 per unit.

(b) For rental units:

[1] Initial contract fee: $300 per unit.

[2] Reoccupancy fee: 2% of the unit's annual rent at vacancy.

(2) Initial contract fees shall be paid by the developer of the unit to the enforcing agency. Thereafter, the resale occupancy fee shall be paid by the seller of such unit at closing, and the reoccupancy fee shall be paid at the time the unit is released by the property owner or landlord.

(3) Projects receiving funding from the Neighborhood Preservation Balanced Housing Program of the Department of Community Affairs shall be exempt from the initial contract fees set forth herein.

(4) The enforcing agency reserves the right to adjust the fees set forth herein on an annual basis as it deems most desirable, and the fees in effect at the time of resale or reoccupancy shall be paid to the enforcing agency.

D. The enforcing agency shall have jurisdiction over all units designated by the Township as affordable housing units, wherever the same may be situated within the Township.

E. Affordable Housing Board; Housing Officer.

[Added 2-19-1991 by Ord. No. 91-1]

(1) The Township Committee hereby creates the Affordable Housing Board for the Township of Washington. The Board shall consist of five residents of the Township, who shall be appointed by the Township Committee. The terms of the Board members first appointed shall be staggered terms for one member of one year, for two members of two years and for two members of three years. Thereafter, the terms of such members shall be for three years. If a vacancy shall occur otherwise than by expiration of an Affordable Housing Board member's term, it shall be filled by appointment of the Township Committee for the unexpired term.

(2) The Mayor of the Township shall annually appoint a member of the Board as Housing Officer for the Township. In all cases the Affordable Housing Board and Housing Officer shall assist and act in conjunction with the appropriate enforcing agency in the implementation of the provisions of this article.

§ 3-4 Controls on affordability.

A. Applicability. Provisions pursuant to this section shall apply to lower-income units created in the A/TH Zoning District, and elsewhere. In the event that regulations established by COAH or other provisions of applicable state law shall be, or become, inconsistent with the provisions of this section, in particular with reference to the nature and extent of controls on affordability applicable to lower-income housing designed to achieve substantive certification for a municipality such as this Township, then, subject to the proviso contained below in this subsection as to outstanding mortgages, the provisions of this section shall be deemed to be amended to be consistent with, or to be automatically amended to be consistent with, such regulations established by COAH or otherwise contained in applicable state law. Such provisions shall be incorporated in any contract, mortgage or declaration of covenants and restrictions, such as is referred to in § 3-4 of this article. The Township and the Affordable Housing Board shall be beneficiaries of and entitled to enforce the provisions incorporated in such documents. Such documents shall be approved by the Township Attorney and shall contain provisions acknowledging that the Township may amend the provisions of this article and the controls of affordability affecting the housing units benefiting from said funds and affected by such documents; provided, however, that no such amendment shall alter the provisions of Subsection G entitled "Impact of foreclosure on resale," or the regulations mentioned in such subsection, as to any outstanding mortgages covering any housing unit, without the consent of the mortgage holder.

B. Length of controls. Lower-income housing units shall be subject to the affordability controls of this section for 30 years, with the following exceptions:

(1) If any rehabilitated owner-occupied single-family housing units are improved to code standard, they shall be subject to the affordability controls of this section for six years.

(2) If any rehabilitated renter-occupied housing units are improved to code standard, they shall be subject to the affordability controls of this section for 10 years.

(3) If any housing units are created through conversion of an existing dwelling to contain a second dwelling unit, or through conversion or creation of an accessory structure in the same lot as the existing dwelling, where the converted unit meets COAH requirements and those of the Development Regulations Ordinance,[1] they shall beverages subject to the affordability controls of this section for 10 years.

[1] Editor's Note: See Ch. 64, Development Regulations, and Ch. 123, Zoning.

C. Initial pricing.

(1) The initial price of a low- and moderate-income owner-occupied single-family housing unit shall, for an initial sale, upon the applicability of these controls, be established so that after a down payment of 10%, the monthly principal, interest, taxes, insurance and condominium fees do not exceed 28% of an eligible gross monthly income. Rents for such units, excluding utilities, shall be set so as not to exceed 30% of the gross monthly income of the appropriate household size. Maximum rent shall be calculated as a percentage of the uncapped Section 8 income limit then pertaining for the area containing this Township as established by the United States Department of Housing and Urban Development or other recognized standard adopted by the COAH that applies to the rental housing unit. The following criteria shall apply in determining rents and sale prices:

(a) Efficiency units shall be affordable to one-person households.

(b) One-bedroom units shall be affordable to two-person households.

(c) Two-bedroom units shall be affordable to three-person households.

(d) Three-bedroom units shall be affordable to five-person households.

(e) Four-bedroom units shall be affordable to seven-person households.

(2) Housing units that satisfy the criteria in Subsection C(1)(a) through (e) above, and the regulations adopted as set forth in § 3-5 of this article, or subsequently adopted pursuant to this article, shall be considered affordable.

(3) Median income by household size shall be established by said uncapped Section 8 income limits or other recognized standard adopted by COAH that applies to the rental housing unit.

D. Annual indexed increases. The prices of owner-occupied housing units and the rents of such units may increase annually based on the percentage increase in income for each housing region as determined from said uncapped Section 8 income limits or other recognized standard adopted by COAH that applies to the rental housing unit.

E. Procedures of resale or rerental.

(1) Persons wishing to sell units subject to these controls shall notify the Affordable Housing Board of the intent to sell and shall comply with the requirements of the regulations adopted as set forth in § 3-5 of this article, or subsequently adopted pursuant to this article.

(2) Persons wishing to rent units subject to these controls shall comply with the regulations adopted as set forth in § 3-5 of this article, or subsequently adopted pursuant to this article or otherwise.

(3) All requests for certification from the Housing Officer or Housing Consultant, or Affordable Housing Board, shall be made by the seller or owner in writing, and the Housing Officer or Consultant or such Board shall grant or deny such certification within 30 days of the receipt of the request.

F. Eligible capital improvements. Property owners of single-family, owner-occupied housing may apply to the Housing Board for permission to increase the maximum price for eligible capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household. In no event shall the maximum price of an improved housing unit exceed the limits of affordability for the larger household. Property owners shall apply to the Affordable Housing Board if an increase in the maximum sales price is sought.

G. Impact of foreclosure on resale. A judgment of foreclosure or a deed in lieu of foreclosure of a financial institution regulated by the state and/or federal law shall extinguish the controls established pursuant to this article, provided that there is compliance with the provisions of the regulations adopted herewith dealing with foreclosure and foreclosure exemption from resale controls. Notice of foreclosure shall allow the Township to purchase the controlled housing unit at the maximum permitted sale price.

H. Excess proceeds upon foreclosure. In the event of a foreclosure sale, the owner of the controlled housing unit shall be personally obligated to pay to the Affordable Housing Board any surplus funds, but only to the extent that such surplus funds exceed the difference between the maximum price permitted at the time of foreclosure and the amount necessary to redeem the debt to the financial institution, including costs of foreclosure. Any such moneys paid to the Affordable Housing Board shall be deposited in the Housing Rehabilitation, Conversion and Assistance Fund.

§ 3-5 Regulations.

A. The following initial regulations are adopted by this article for the administration of the Township's affordable housing program:

(1) Affirmative Marketing Plan for Affordable Housing Program by Washington Township.

(2) Washington Township Affordable Housing Regulations, Sales Units - Inclusionary Development.

(3) Washington Township Affordable Housing Regulations, Rental Units - Inclusionary Development.

B. Three copies of the above regulations are on file with the Township Clerk and may be examined at her office during normal business hours. Copies thereof may be obtained from the Township Clerk upon the payment of a fee to be established by resolution.

C. The regulations herein may be amended or supplemented in the future in order to meet requirements of the Council on Affordable Housing, or to otherwise promote development of affordable housing consistent with the housing element of the Master Plan of the Township of Washington. All such amendments and supplements may be adopted by ordinance of the Township Committee unless another scheme of adoption shall be adopted by law or by ordinance.