[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.
