This article of the Wharton Code sets forth
regulations regarding low- and moderate-income housing units in Wharton
that are consistent with the provisions of N.J.A.C. 5:93 et seq.,
as effective June 6, 1994. These rules are pursuant to the Fair Housing
Act of 1985 and Wharton's constitutional obligation to provide for
its fair share of low- and moderate-income housing.
A. Wharton's new construction or inclusionary component
will be divided equally between low- and moderate-income households
as per N.J.A.C. 5:93-2.20.
B. Except for inclusionary developments constructed pursuant
to low-income tax credit regulations:
(1)
At least 1/2 of all units within inclusionary
development will be affordable to low-income households;
(2)
At least 1/2 of all rental units will be affordable
to low-income households; and
(3)
At least 1/3 of all units in each bedroom distribution
pursuant in N.J.A.C. 5:93-7.3 will be affordable to low-income households.
Inclusionary developments that are not restricted
to senior citizens will be structured 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;
B. At least 30% of all low- and moderate-income units
are two-bedroom units;
C. At least 20% of all low- and moderate-income units
are three-bedroom units; and
D. Low- and moderate-income units restricted to senior
citizens may utilize a modified bedroom distribution. At a minimum,
the number of bedrooms will equal the number of senior citizen 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 one-person
households;
B. One half of all one-bedroom units will be affordable
to one-person households and 1/2 of all one-bedroom units will be
affordable to two-person households;
C. One half of all two-bedroom units will be affordable
to two-person households and 1/2 of all two-bedroom units will be
affordable to three-person households;
D. One half of all three-bedroom units will be affordable
to four-person households and 1/2 of all three-bedroom units will
be affordable to five-person households;
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);
F. The maximum average rent and price of low- and moderate-income
units within each inclusionary development will be affordable to households
earning 57.5% of median income;
G. Moderate-income sales units will be available for
at least three different prices and low-income units will be available
for at least two different prices;
H. 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;
I. 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. 5:93-9.16; and
J. The regulations outlined in N.J.A.C. 5:93-9.15 and
5:93-9.16 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 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(a). The
tenant-paid utility allowance will be consistent with the utility
allowance approved by HUD for use in New Jersey.
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 % of Low-/Moderate-Income Units
Completed
|
% of Market Housing Units Completed
|
---|
|
0
|
25
|
|
10
|
25 + 1 unit
|
|
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(e).
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, Wharton will
designate an administrative agency or municipal authority with the
responsibility of ensuring the affordability of sales and rental units
over time. The administrative agency or municipal authority will be
responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
A. In addition, the administrative or municipal authority
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;
B. Newly constructed low- and moderate-income sale units
will remain affordable to low- and moderate-income households for
at least 30 years. The administrative or municipal authority will
require all conveyances of newly constructed units to contain the
deed restriction and mortgage lien adopted by COAH and referred to
as "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. The administrative
agency or municipal authority will require an appropriate deed restriction
and mortgage lien subject to COAH's approval.
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.
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 Wharton's land use ordinances. Accordingly,
Wharton will eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal
approvals/denials on inclusionary development applications. The Borough
of Wharton will adhere to the components of N.J.A.C. 5:93-10.1 to
5:93-10.3.
The Borough of Wharton will undertake a rehabilitation
program to rehabilitate 11 substandard housing units occupied by low-
and moderate-income households. Wharton has designated the Borough
Administrator to administer the rehabilitation program. The 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 5:93-5.2(l).
The sites listed on the Table of Sites Meeting
the Inclusionary Component Outlined in the Housing Element and Fair
Share Plan, included at the end of this chapter, have been designated
to meet Wharton's inclusionary component outlined in the housing element
and fair share plan which was adopted by the Planning Board on May
9, 1995.