The following terms, when used in this chapter, shall have the
meanings given in this section:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; in the case of an ownership
unit, "affordable" means that the sales price for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended
and supplemented and, in the case of a rental unit, that the rent
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12,
as may be amended and supplemented.
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 one-hundred-percent-affordable
development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act, credited pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing trust fund, or a unit subject to a program established pursuant to §
65-3.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
A.
All the residents of the development where the unit is situated
are 62 years or older; or
B.
At least 80% of the units are occupied by one person that is
55 years or older; or
C.
The development has been designated by the Secretary of the
United States Department of Housing and Urban Development as "housing
for older persons" as defined in Section 807(b)(2) of the Fair Housing
Act, 42 U.S.C. § 3607.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ASSISTED LIVING RESIDENCE
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
DEVELOPMENT
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
INCLUSIONARY DEVELOPMENT
A 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.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable county,
as determined by applicable state and/or federal agencies.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
NONEXEMPT SALE
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class A
beneficiary; and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the median household income.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
The Township of Montclair has determined that it will use the
following mechanisms to satisfy its affordable housing obligations
and to provide realistic housing opportunities for Township and Board
of Education employees and for Township residents seeking to reside
or continue to reside in Montclair:
A. A rehabilitation program.
(1) Montclair's rehabilitation program shall be designed to renovate
deficient housing units occupied by low- and moderate-income households
such that, after rehabilitation, these units will comply with the
New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
(2) Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds.
(3) All rehabilitated units shall remain affordable to low- and moderate-income
households for a period of 10 years (the control period). For owner-occupied
units, the control period will be enforced with a lien, and for renter-occupied
units, the control period will be enforced with a deed restriction.
(4) The Township of Montclair shall dedicate a minimum of $15,000 for
each unit to be rehabilitated through this program, reflecting the
minimum hard cost of rehabilitation for each unit.
[Amended 6-12-2018 by Ord. No. O-18-031]
(5) The Township of Montclair shall adopt a resolution committing to
fund any shortfall in the rehabilitation programs for the Township
of Montclair.
(6) The Township of Montclair shall designate one or more administrative
agents to administer the rehabilitation program in accordance with
N.J.A.C. 5:96 and N.J.A.C. 5:97. The administrative agent(s) shall
provide a rehabilitation manual for the owner-occupancy rehabilitation
program and a rehabilitation manual for the rental-occupancy rehabilitation
program to be adopted by resolution of the governing body. Both rehabilitation
manuals shall be available for public inspection in the office of
the Municipal Clerk and in the office(s) of the administrative agent(s).
(7) Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is rerented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:97-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:97-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
B. Essex County Rehabilitation Program (Housing Improvement Program
known as "HIP"). The County's HIP has been operational for many years.
It is funded through the federal Community Development Block Grant
Program. It provides deferred loans to income-qualifying homeowners
who occupy a one- to three-family home. A lien will be recorded against
the property. The lien must be paid off only if the property is sold
or transferred within a twenty-year period. Homeowners who occupy
a one- to three-family home must meet income guidelines. Examples
of eligible improvements include heating systems, roofing, plumbing,
electrical and code violation abatement. The program has a good track
record. Over 30 units have been rehabilitated in Montclair since 2000.
It is anticipated that HIP will renovate three units per year for
the next 10 years. Information on the HIP may be obtained by contacting
the County's Division of Housing and Community Development, 20 Crestmont
Road, Verona, NJ 07044; 973-655-0200.
C. A market-to-affordable program.
(1) A market-to-affordable program is established to permit the purchase or subsidization of units through a written agreement with the property owner and sold or rented to low- and moderate-income households. Subject to the provisions of Subsection
C(2)(c) below, the market-to-affordable programs may produce both low- and moderate-income units.
(2) The following provisions shall apply to market-to-affordable programs:
(a)
At the time they are offered for sale or rental, eligible units
may be new, preowned or vacant.
(b)
The units shall be certified to be in sound condition as a result
of an inspection performed by a licensed building inspector.
(c)
The municipality will provide a minimum of $25,000 per unit
to subsidize each moderate-income unit and/or $30,000 per unit to
subsidize each low-income unit, with additional subsidy depending
on the market prices or rents in a municipality.
(d)
The maximum number of creditable market-to-affordable units
shall be equal to no more than 10 for-sale units and 10 rental units
or a combined total of 10% of the fair share obligation, whichever
is greater.
(3) The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(a)
Bedroom distribution [N.J.A.C. 5:80-26.3(b) and (c)];
(b)
Low-/moderate-income split [N.J.A.C. 5:80-26.3(a)]; and
(c)
Affordability average [N.J.A.C. 5:80-26.3(d) and (e)]; however:
[1]
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60% of median income, and the maximum
rent for a low-income unit shall be affordable to households earning
no more than 44% of median income; and
[2]
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70% of median income,
and the maximum sales price for a low-income unit shall be affordable
to households earning no more than 40% of median income.
D. Down payment assistance program. The following procedure is to be
employed in connection with requests for down payment assistance to
qualified affordable housing buyers who lack sufficient funds for
the necessary down payment to purchase an affordable housing unit.
The down payment assistance shall be in the form of a grant.
[Amended 8-7-2018 by Ord.
No. O-18-037]
(1) Applications for down payment assistance shall be made by a qualified
affordable housing buyer to the Department of Planning and Community
Development on the application form provided by said office. Said
application shall be approved by resolution by the Township Council
upon referral from the Department of Planning and Community Development,
provided that the application satisfies the requirements set forth
herein, and subject to the availability of funds in the Affordable
Housing Trust Fund.
(2) The maximum amount of the down payment assistance grant to an applicant
shall be $2,500.
(3) The down payment assistance program will be funded through the Affordable
Housing Trust Fund. All grants will be released at closing.
(4) The terms of the grant shall require that the full amount of the
grant be repaid to the Township in the event that the property is
sold within 10 years of the closing. In the event that the sale price
is less than the grantee's purchase price, the amount of the repayment
shall be reduced by the difference between the purchase and sale prices.
E. Voluntary extension of affordability controls program.
(1) Montclair's voluntary extension of affordability controls is designed
to maintain the Township's supply of housing affordable to low- and
moderate-income households by extending the term of the affordability
controls on existing affordable units.
(2) Eligible participants must be owners and occupants of a dwelling
unit in Montclair Township that has a low- and moderate-income deed
restriction that has expired or is scheduled to expire within two
years of the application for an extension of the affordability control.
(3) Applications by eligible participants shall be made to the Department
of Planning and Community Development on the application form provided
by said office. Said application shall be approved by resolution by
the Township Council upon referral from the Department of Planning
and Community Development, provided that the application satisfies
the requirements set forth herein, and subject to the availability
of funds in the Affordable Housing Trust Fund.
(4) Applicants must meet the current income requirements for a low- and
moderate-income household.
(5) The Township of Montclair will dedicate a maximum of $15,000 for
each dwelling unit that extends the deed restriction. These funds
must be used for repairs and/or renovations to the dwelling unit.
The applicant must provide satisfactory evidence of the intended repairs
and renovations, and the projected cost thereof, as part of the application
process.
[Amended 6-12-2018 by Ord. No. O-18-031]
(6) Any appliances or improvements for which program funds are used must
be energy efficient.
(7) The term for the extended deed restrictions must be at least 30 years
from the date of expiration of the initial restriction or the date
of the new deed restriction, whichever is longer.
F. Resident retention and Township/Board of Education employee housing
initiative program.
(1) The Township of Montclair will encourage and support the creation
of housing opportunities affordable to Township residents desiring
to continue living in Montclair and for Township and Board of Education
employees seeking to live in Montclair.
(2) The Township may develop project-based programs and criteria to accomplish
these ends.
G. Rental Assistance
Program.
[Added 10-27-2020 by Ord. No. O-20-21]
(1) The
Montclair Township Rental Assistance Program is designed to help very-low-
and low-income households to find a home in Montclair. This program
will provide a grant to renters of deed-restricted affordable properties
within Montclair Township to be used to pay for up to the first three
months' rent or $2,500, whichever is greater. The goal of the program
is to provide financial assistance to very-low- and low-income tenants
of affordable housing to alleviate financial hardship associated with
moving to a new rental unit. Funds are made available through the
Affordable Housing Trust Fund of Montclair Township.
[Amended 5-4-2021 by Ord. No. O-21-08]
(2) Applicants
for this grant program must be income-qualified as a very-low-income
or low-income household by the Administrative Agent for Montclair
Township and must have a lease to rent a deed-restricted apartment
in Montclair.
[Amended 5-4-2021 by Ord. No. O-21-08]
(3) Properties
must be a rental property within Montclair Township with deed restrictions
limiting ownership to eligible low- and moderate-income families.
The rent of the apartment will be limited by the deed restriction
to be affordable to a very-low-income household.
(4) Upon
certification of the qualifications of the unit and prospective tenant
household by the Administrative Agent, the Municipal Housing Liaison
will request authorization to disburse the funds.
[Amended 8-20-2019 by Ord. No. O-19-028]
A. Montclair shall adopt by resolution an Affirmative Marketing Plan,
compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
B. The Affirmative Marketing Plan is a marketing strategy designed to
attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affection or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is also intended to target those potentially eligible
persons who are least likely to apply for affordable units in that
region.
C. The Affirmative Marketing Plan shall include a local preference for
all households that live in the Township of Montclair or are full-time
employees of either the Township of Montclair or the Township of Montclair
Board of Education.
D. The administrative agent designated by the Township of Montclair
shall assure the affirmative marketing of all affordable units consistent
with the Affirmative Marketing Plan for the municipality.
E. In implementing the Affirmative Marketing Plan, the administrative
agent and/or another qualified entity retained by the Township shall
provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F. The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
G. The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by Montclair.
Price restrictions for restricted-ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A. The initial purchase price for a restricted-ownership unit shall
be approved by the administrative agent.
B. The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C. The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market-unit owners.
D. The owners of restricted-ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.