[Amended 9-25-2000 by Ord. No. O-17-00; 2-23-2004 by Ord. No. O-5-04; 3-22-2004 by Ord. No. O-6-04]
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.
For sale units:
A. 
The initial price of a low- and moderate-income owner-occupied single family housing unit will be established so that, after a down payment of 5%, the monthly principal, interest, homeowner's 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;
B. 
Master deeds of inclusionary developments will regulate condominium or homeowners' association fees or special assessments of low- and moderate-income purchasers at 1/3 of that paid by market purchasers. This 1/3 percentage is consistent with the requirement of N.J.A.C. 5:93-7.4(e). Once established within the master deed, the percentage will not be amended without prior approval from COAH;
C. 
The Borough of Wharton will follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy of sale units as per N.J.A.C. 5:93-9.3;
D. 
Wharton 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);
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;
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;
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 % 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.
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. The administrative agency or municipal authority will require an appropriate deed restriction and mortgage lien subject to COAH's approval;
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. 5:93-5.13, then the controls on affordability will extend for 30 years; and
C. 
Alternative living arrangements will be controlled in a manner suitable to COAH, that provides assurance 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. 5:93-5.13, then the controls on affordability will extend for 30 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.
A. 
The Borough of Wharton has a fair share obligation of 68 units, of which 57 units are new construction.
B. 
The affirmative 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. The Borough of Wharton is in the housing region consisting of Morris, Essex, Union and Warren Counties. The affirmative marketing program is a continuing program and will meet the following requirements:
(1) 
All newspaper articles, announcements and requests for applications for low- and moderate-income units will appear in the following newspapers/publications: The Daily Record and the Star Ledger.
(2) 
The primary marketing will take the form of at least one press release sent to the above publications and a paid display advertisement in each of the above newspapers. Additional advertising and publicity will be on an "as needed" basis.
(3) 
The advertisement will include a description of the street address of units, direction to housing units, number of bedrooms per unit, range of prices/rents, size of units, income information, and location of applications including business hours and where/how applications may be obtained.
(4) 
All newspaper articles, announcements and requests for applications for low- and moderate-income housing will appear in publications such as neighborhood-oriented weekly newspapers, religious publications and organizational newsletters within the region. Regional radio and/or cable television station(s) will also be used.
(5) 
The following is the location of applications, brochure(s), sign(s) and/or poster(s) used as part of the affirmative marketing program including specific employment centers within the region: posting of notices in the Borough Hall and delivery of notices to the municipal clerks of all municipalities in the region.
(6) 
The following is a listing of community contact persons and/or organizations in Wharton that will administer the program and will aid in the affirmative marketing program with particular emphasis on contacts that will reach out to groups that are least likely to apply for housing within the region: Land Use Administrator, County Housing Office and houses of worship.
(7) 
Quarterly flyers and applications will be sent to each of the following agencies for publication in their journals and for circulation among their members: boards of realtors in Morris, Essex, Union and Warren Counties.
(8) 
Applications will be mailed to prospective applicants upon request.
(9) 
Additionally, quarterly informational circulars and applications will be sent to the chief administrative employees of each of the following agencies in the counties within Wharton's region: welfare or social service board, rental assistance office (local office of DCA), office on aging, libraries, and housing agency or authority in each of the counties within Wharton's housing region.
(10) 
A random selection method will be used to select occupants of low- and moderate-income housing.
(11) 
The Land Use Administrator shall administer the affirmative marketing program. The Land Use Administrator has 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.
(12) 
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. The Borough of Wharton intends to comply with N.J.A.C. 5:93-11.7.
(13) 
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.
(14) 
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.
(15) 
The Land Use Administrator will comply with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 12.1.
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.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II).