[HISTORY: Adopted by the Township Committee of the Township of Mendham 8-24-1999 by Ord. No. 15-1999 (Ch. XXVI of the 1998 Revised General Ordinances). Amendments noted where applicable.]
The provisions of this chapter shall govern the development, construction, sale, and resale of limited income housing in the Township. Any affordable housing constructed within the Township of Mendham after August 24, 1999 shall be developed in conformance with the current rules and regulations of the New Jersey Council on Affordable Housing, including but not limited to the phasing of construction, bedroom distribution requirements, initial pricing and/or rental requirements, occupancy eligibility, affirmative marketing, and long-term affordability controls.
For the purposes of this chapter, the following terms shall have the meanings set forth in this section unless different meanings are clearly indicated by the context in which they are used. All terms defined in N.J.A.C. 5:93-1.3 are hereby incorporated by reference as if set forth herein in their entirety.
- AFFORDABLE HOUSING
- A residential dwelling that is sold or rented at a rate within the means of a low or moderate-income household as defined by the New Jersey Council on Affordable Housing. "Affordable housing" is the same as "limited-income housing" as defined in Chapter XII (General Definitions) of the Land Use Ordinance.
- The New Jersey Council on Affordable Housing.
- HOUSING CORPORATION
- The Morris S. Frank Housing Corporation, a nonprofit corporation of the State of New Jersey.
- LOW-INCOME HOUSING
- Housing affordable according to New Jersey Council on Affordable Housing regulations, to a household with a total gross annual income equal to 50% or less of the median gross household income for households of the same size within the housing region in which the housing is located as adopted by COAH, and which is subject to affordability controls consistent with COAH regulations.
- MODERATE-INCOME HOUSING
- Housing affordable according to New Jersey Council on Affordable Housing regulations, to a household with a total gross annual income in excess of 50% but less than 80% of the median gross household income for households of the same size within the housing region in affordability controls consistent with COAH regulations.
General. The sale and resale of all affordable housing shall be undertaken in accordance with the requirements of this chapter and COAH regulations. These regulations are intended to implement the requirements of N.J.A.C. 5:93-11. Marketing for the sale and resale of all affordable housing shall be based upon a regional marketing strategy (within the housing region designated in Subsection B) designed to attract prospective home buyers of all groups regardless of sex, age or number of children, who live or work within the housing region, to available affordable housing units in the Township of Mendham. The developer of affordable housing units shall have the primary role in developing the initial affirmative marketing plan, subject to the review and approval of and monitoring by the Housing Corporation, for the sale of units in the developer's project, and the developer shall undertake the initial marketing and sale of affordable housing consistent with the aforesaid plan, this chapter and COAH regulations. Thereafter, the Housing Corporation shall administer all re-sales of affordable housing consistent with the affirmative marketing requirement of this chapter and COAH regulations.
Housing region. The Township of Mendham is located within Region 2, as determined by COAH, which includes Essex, Morris, Union and Warren Counties.
Discrimination in the sale, rental, financing or other services related to the housing on the basis of race, color, sex, religion, handicap, familial status/size, age or national origin is prohibited. The Township of Mendham shall comply with monitoring and reporting requirements in accordance with N.J.A.C. 5:93-11.6 and 12.1.
Affirmative marketing requirements.
All newspaper articles, announcements and requests for applications for affordable housing shall appear in the following daily regional newspapers: Star Ledger and Daily Record.
[Amended 5-12-2014 by Ord. No. 6-2014]
All newspaper articles, announcements and requests for applications for affordable housing shall appear in the following daily local or neighborhood-oriented newspapers/publications, religious publications and/or organizational newsletters within the region: Daily Record and Observer Tribune.
Regional radio and/or cable television station(s) will be used as necessary.
Initial marketing shall take the form of at least one press release sent to the above newspapers and a paid display advertisement in each. Additional advertising shall be on an as-needed basis.
Each newspaper advertisement shall include a description of the following:
Applications shall be mailed to prospective applicants upon request. In addition, the following are the locations where applications, brochures, signs or other forms of advertisement/marketing may be found:
The following is a listing of community contacts in the housing region that will aid in the affirmative marketing program with particular emphasis on contacts that will reach out to groups that are the least likely to apply for housing within the region:
Flyers and applications shall be sent on an as-needed basis to each of the following agencies for publication in their journals and for circulation among their members: Board of Realtors in Essex, Morris, Union and Warren Counties.
The marketing program shall commence at least 120 days before the first issuance of a certificate of occupancy, whether temporary or permanent. The program shall continue until all low- and moderate-income housing units are initially occupied and for as long as affordable units are provided or assured through deed restrictions and as occupancy or reoccupancy of units continues to be necessary in satisfaction of the Township's affordable housing obligation.
Residency preference. The Township of Mendham shall comply with N.J.A.C. 5:93-11.7. There shall be no local residency preference in marketing affordable housing. However, an occupancy preference may be given to income-eligible households that live or work within the COAH-determined housing region within which Mendham Township is situated.
[Amended 12-10-2018 by Ord. No. 23-2018]
Income limits for all units that are part of the Townships' Housing Element and Fair Share Plan and for which income limits are not already established through a federal program exempted from the Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall be updated by the Townships' Affordable Housing Coordinator (sometimes hereinafter referred to as the "administrative agent") annually within 60 days of the publication of determinations of median income by HUD as follows:
Regional income limits shall be established for the region that the Township is located within based on the median income by household size, which shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD. To compute this regional income limit, the HUD determination of median county income for a family of four is multiplied by the estimated households within the county according to the most recent decennial census. The resulting product for each county within the housing region is summed. The sum is divided by the estimated total households from the most recent decennial census in the Township's housing region. This quotient represents the regional weighted average of median income for a household of four. The income limit for a moderate-income unit for a household of four shall be 80% of the regional weighted average median income for a family of four. The income limit for a low-income unit for a household of four shall be 50% of the HUD determination of the regional weighted average median income for a family of four. The income limit for a very-low-income unit for a household of four shall be 30% of the regional weighted average median income for a family of four. These income limits shall be adjusted by household size based on multipliers used by HUD to adjust median income by household size. In no event shall the income limits be less than those for the previous year.
The income limits derived from applying the percentages set forth in Subsection A(1) above to HUD's determination of median income for FY 2017 shall be utilized until the municipality updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Affordable Housing Coordinator annually by taking the percentage increase of the income limits calculated pursuant to Subsection A(1) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
In establishing sale prices and rents of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC, utilizing the regional income limits established pursuant to the process defined above:
The resale prices 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 determined pursuant to Subsection A above. In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
The rent levels of very-low-, low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the Northeast Urban Area, upon its publication for the prior calendar year. 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.
[Amended 12-10-2018 by Ord. No. 23-2018]
The resale pricing for affordable housing units offered for resale in accordance with Chapter 75 shall have such resale prices set and configured by the administrative agent in accordance with the guidelines established by the Affordable Housing Professionals of New Jersey.
[Added 2-28-2017 by Ord. No. 1-2017]
Upon sale of the unit, the seller shall pay a fee of 1.25% to the Housing Partnership upon sale of the affordable housing unit.
[Added 2-28-2017 by Ord. No. 1-2017]
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.
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:
The municipality 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 fine of not more than $500 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;
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 Mendham Affordable Housing Trust Fund of the gross amount of rent illegally collected;
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.
The municipality 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 loan, and shall constitute a lien against the low- and moderate-income unit.
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 all and prior liens and the costs of the enforcement proceedings incurred by the municipality, including attorneys' fees. The violating owner shall have the right to possession terminated as well as the title conveyed pursuant to the Sheriff's sale.
The proceeds of the Sheriff's sale shall first be applied to satisfy the 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.
Foreclosure by the municipality 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.
If there are no bidders at the Sheriff's sale, or if insufficient amounts are bid to satisfy the lien and any prior liens, the municipality may acquire title to the low- and moderate-income unit by satisfying the mortgage and any prior liens and crediting the violating owner with an amount equal to the difference between the current 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.
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.
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.