[HISTORY: Adopted by the Township Council of the Township
of Cedar Grove 6-18-2012 by Ord. No. 12-743. Amendments noted where
applicable.]
A.
This chapter is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This chapter shall apply except where inconsistent with
applicable law.
B.
The Cedar Grove Planning Board has adopted a Housing Element and
Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. The Fair Share Plan has been endorsed by the governing
body. The Fair Share Plan describes the ways the Township of Cedar
Grove shall address its fair share for low- and moderate-income housing
as determined by the New Jersey Council on Affordable Housing ("COAH")
and documented in the Housing Element.
C.
This chapter implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:97, as may be amended and
supplemented.
D.
The Township of Cedar Grove shall file monitoring reports with COAH
in accordance with N.J.A.C. 5:96, tracking the status of the implementation
of the Housing Element and Fair Share Plan. Any plan evaluation report
of the Housing Element and Fair Share Plan and monitoring prepared
by COAH in accordance with N.J.A.C. 5:96 shall be available to the
public at the Township Municipal Building, Municipal Clerk's
Office, 525 Pompton Avenue, Cedar Grove, New Jersey, or from COAH
at 101 South Broad Street, Trenton, New Jersey, and on COAH's
website, www.nj.gov/dca/affiliates/coah.
The following terms, when used in this chapter, shall have the
meanings given in this section:
- ACCESSORY APARTMENT
- A self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site.
- 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, 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 DEVELOPMENT
- A housing development, all or a portion of which consists of restricted units.
- 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.
- 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.).
- 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 U.S. 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.
- 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.
- COAH
- The Council on Affordable Housing, which is in, but not of, the Department of Community Affairs of the State of New Jersey, that was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
- 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 adopted annually by COAH.
- 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.
- MODERATE-INCOME UNIT
- A restricted unit that is affordable to a moderate-income household.
- MUNICIPAL HOUSING LIAISON
- The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for the Township of Cedar Grove.
- 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).
- REGIONAL ASSET LIMIT
- The maximum housing value in each housing region affordable to a four-person household with an income at 80% of the regional median as defined by COAH's adopted Regional Income Limits published annually by COAH.
- 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.
- VERY-LOW-INCOME UNIT
- A restricted unit that is affordable to a very-low-income household.
- 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 Cedar Grove has determined that it will use
the following mechanisms to satisfy its affordable housing obligations:
A.
A rehabilitation program.
(1)
The Township of Cedar Grove'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 minimum 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 Cedar Grove shall dedicate a minimum of $10,000 for
each unit to be rehabilitated through this program, reflecting the
minimum hard cost of rehabilitation for each unit.
(5)
The Township of Cedar Grove shall adopt a resolution committing to
fund any shortfall in the rehabilitation programs for the Township.
(6)
The Township of Cedar Grove shall designate, subject to the approval
of COAH, 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 and subject to approval of COAH. Both rehabilitation manuals
shall be available for public inspection in the office of the Township
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 re-rented 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.
An accessory apartment program.
(1)
All accessory apartments shall meet the following conditions:
(a)
Accessory apartments are permitted by the Zoning Ordinance[1] for various zoning districts, provided the units are affordable
to low- and moderate-income households. Accessory apartments may be
developed as low-income or moderate-income units. (Accessory apartments
may be limited to only low- or only moderate-income units as determined
in the Fair Share Plan.)
(b)
Accessory apartments shall comply with all applicable statutes
and regulations of the State of New Jersey in addition to all building
codes.
(c)
At the time of initial occupancy of the unit and for at least
10 years thereafter, the accessory apartment shall be rented only
to a household which is either a low- or moderate-income household.
(d)
Rents of accessory apartments shall be affordable to low- or
moderate-income households as per COAH and UHAC regulations.
(e)
There shall be a recorded deed or declaration of covenants and
restrictions applied to the property upon which the accessory apartment
is located, running with the land and limiting its subsequent rental
or sale of the unit and the accessory apartment.
(f)
The appropriate utility authority must certify that there is
water and sewer infrastructure with sufficient capacity to serve the
proposed accessory apartment. Where the proposed location is served
by an individual well and/or septic system, the additional capacity
necessitated by the new unit must meet the appropriate NJDEP standards.
(g)
The Township of Cedar Grove accessory apartment program shall
not restrict the number of bedrooms in any accessory apartment.
(h)
No accessory apartment created as a result of this chapter or
these regulations shall exceed the gross floor area of the existing
principal dwelling on the lot.
(2)
The maximum number of creditable accessory apartments shall be equal
to no more than 10 or an amount equal to 10% of the Township of Cedar
Grove's fair share obligation, whichever is greater. (Additional
units may be approved by COAH if the municipality has demonstrated
successful completion of its accessory apartment program.)
(3)
The Township of Cedar Grove shall designate an administrative entity
to administer the accessory apartment program that shall have the
following responsibilities:
(a)
The administrative agent shall administer the accessory apartment
program, including advertising, income qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the affordable accessory
apartment program in accordance with the UHAC.
(b)
The administrative entity shall only deny an application for
an accessory apartment if the project is not in conformance with COAH's
requirements and/or the provisions of this section/chapter. All denials
shall be in writing with the reasons clearly stated.
(c)
In accordance with COAH requirements, the Township of Cedar
Grove shall provide at least $25,000 per unit to subsidize the creation
of each low-income accessory apartment or $20,000 per unit to subsidize
the creation of each moderate-income accessory apartment. A subsidy
may be used to fund actual construction costs and/or to provide compensation
for reduced rental rates.
(4)
Property owners wishing to apply to create an accessory apartment
shall submit to the administrative entity:
(a)
A sketch of floor plan(s) showing the location, size and relationship
of both the accessory apartment and the primary dwelling within the
building or in another structure;
(b)
Rough elevations showing the modifications of any exterior building
facade to which changes are proposed; and
(c)
A site development sketch showing the location of the existing
dwelling and other existing buildings; all property lines; proposed
addition, if any, along with the minimum building setback lines; the
required parking spaces for both dwelling units; and any man-made
conditions which might affect construction.
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, pre-owned 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. (Additional units may be approved by COAH if the municipality
demonstrates the successful completion of its initial market-to-affordable
program.)
(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.
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
A.
Low/moderate split and bedroom distribution of affordable housing
units.
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements.
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14.
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.), and the Barrier Free Subcode, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14, or evidence that the Township of Cedar
Grove has collected funds from the developer sufficient to make 10%
of the adaptable entrances in the development accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Township of Cedar Grove's Affordable Housing Trust
Fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township of Cedar Grove for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the Township of Cedar Grove.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7 and
N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion
is reasonable, payment shall be made to the Township of Cedar Grove's
Affordable Housing Trust Fund in care of the Township Treasurer or
Chief Financial Officer who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriately earmarked.
[6]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C.
5:97-3.14.
C.
Maximum rents and sales prices.
(1)
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC and in COAH, utilizing the regional income limits established
by COAH.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3)
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units.
(a)
At least 10% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(7)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowners'
association fees, does not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the administrative agent be lower than the last
recorded purchase price.
(10)
The rent of low- and moderate-income units may be increased annually
based on the percentage increase in the Housing Consumer Price Index
for the United States. This increase shall not exceed 9% in any one
year. Rents for units constructed pursuant to low-income housing tax
credit regulations shall be indexed pursuant to the regulations governing
low-income housing tax credits.
(11)
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by DCA for its Section 8 program.
A.
The Township of Cedar Grove shall adopt by resolution an Affirmative
Marketing Plan, subject to approval of COAH, compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
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 race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional 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. It is a continuing program that directs all marketing activities
toward COAH Housing Region 3 and covers the period of deed restriction.
C.
The administrative agent designated by the Township of Cedar Grove
shall assure the affirmative marketing of all affordable units consistent
with the Affirmative Marketing Plan for the Township.
D.
In implementing the Affirmative Marketing Plan, the administrative
agent 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.
E.
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
F.
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 the Township of Cedar
Grove.
A.
In referring certified households to specific restricted units, to
the extent feasible, and without causing an undue delay in occupying
the unit, the administrative agent shall strive to:
B.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal operating manual.
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this chapter until the Township of Cedar Grove elects to release
the unit from such requirements, however, and prior to such an election,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at
least 30 years.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the administrative agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value.
D.
At the time of the first sale of the unit, the purchaser shall execute
and deliver to the administrative agent a recapture note obligating
the purchaser (as well as the purchaser's heirs, successors and
assigns) to repay, upon the first nonexempt sale after the unit's
release from the requirements of this chapter, an amount equal to
the difference between the unit's nonrestricted fair market value
and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
E.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all code standards upon the first
transfer of title that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
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.
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income, and moderate-income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
B.
The administrative agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowners' association fees, as applicable)
does not exceed 33% of the household's certified monthly income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine, in writing,
that the proposed indebtedness complies with the provisions of this
section.
B.
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter until the Township of Cedar Grove elects to release
the unit from such requirements pursuant to action taken in compliance
with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior
to such an election, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented,
for at least 30 years.
B.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Essex. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the administrative agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the administrative agent.
C.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the administrative agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this chapter.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents proposed third-party assistance from an outside
source such as a family member in a form acceptable to the administrative
agent and the owner of the unit.
A.
The position of Municipal Housing Liaison ("MHL") for the Township
of Cedar Grove is established by this section. The governing body
of the Township shall make the actual appointment of the MHL by means
of a resolution.
(1)
The MHL must be either a full-time or part-time employee of the Township
of Cedar Grove.
(2)
The person appointed as the MHL must be reported to COAH for approval.
(3)
The MHL must meet all COAH requirements for qualifications, including
initial and periodic training.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Cedar Grove, including the following responsibilities which may
not be contracted out to the administrative agent:
(a)
Serving as the municipality's primary point of contact
for all inquiries from the state, affordable housing providers, administrative
agents and interested households;
(b)
The implementation of the Affirmative Marketing Plan and affordability
controls;
(c)
When applicable, supervising any contracting administrative
agent;
(d)
Monitoring the status of all restricted units in the Township
of Cedar Grove's Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required
by COAH;
(f)
Coordinating meetings with affordable housing providers and
administrative agents, as applicable; and
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH.
B.
The Township of Cedar Grove shall designate by resolution, subject
to the approval of COAH, one or more administrative agents to administer
newly constructed affordable units in accordance with N.J.A.C. 5:96,
N.J.A.C. 5:97 and UHAC.
C.
An operating manual shall be provided by the administrative agent(s)
to be adopted by resolution of the governing body and subject to approval
of COAH. The operating manuals shall be available for public inspection
in the office of the Township Clerk and in the office(s) of the administrative
agent(s).
D.
Duties.
(1)
The administrative agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the operating manual, including those
set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof,
which includes:
(a)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
(b)
Affirmative marketing;
(c)
Household certification;
(d)
Affordability controls;
(e)
Records retention;
(f)
Resale and re-rental;
(g)
Processing requests from unit owners; and
(h)
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality.
(2)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)
The Township may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
(a)
A fine of not more than $2,000 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense.
(b)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Cedar Grove Affordable Housing
Trust Fund of the gross amount of rent illegally collected.
(c)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation
costs, as determined by the court.
(2)
The Township may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
C.
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
D.
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
E.
Foreclosure by the Township due to violation of the regulations governing
affordable housing units shall not extinguish the restrictions of
the regulations governing affordable housing units as the same apply
to the low- and moderate-income unit. Title shall be conveyed to the
purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
F.
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
G.
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
H.
The owner shall remain fully obligated, responsible and liable for
complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
Appeals from all decisions of an administrative agent designated
pursuant to this chapter shall be filed, in writing, with the Executive
Director of COAH.
The Township of Cedar Grove specifically acknowledges the potential
need for amendments to this chapter to reflect any changes in the
statutes, regulations or other laws governing affordable housing within
the Township, and reserves the right to make any such amendment.
