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