[Added 8-20-2012 by Ord. No. 2012-9]
A.
This article 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 article shall apply except where inconsistent with
applicable law.
B.
The Borough of Pemberton 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 Borough shall address
its fair share for low- and moderate-income housing as determined
by the Council on Affordable Housing (COAH) or its successor agency
and established and documented in the Housing Element.
C.
This article implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:97, as may be amended and
supplemented over time.
D.
The Borough 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 or its successor in accordance with N.J.A.C. 5:96 shall be available
to the public at the Borough of Pemberton Municipal Building, Municipal
Clerk's Office, 50 Egbert Street, Pemberton, New Jersey 08068-0261.
The following terms, when used in this article, shall have the
meanings given in this section:
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.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this article, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
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.
A housing development, all or a portion of which consists
of restricted units.
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.
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share obligation.
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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
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.
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.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
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.). At this point in time, COAH has been eliminated and responsibilities
now rest in the Fair Housing Administration within the Department
of Community Affairs.
The State of New Jersey Department of Community Affairs.
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.
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.
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.
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.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
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.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
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.
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).
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.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
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.
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.
The uniform housing affordability controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
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 Borough has determined that it will use the following mechanisms
to satisfy its affordable housing obligations:
A.
A rehabilitation program.
(1)
The Borough's rehabilitation program is designed to renovate deficient
housing units occupied by low- and moderate-income households; and
upon rehabilitation, these units will comply with the New Jersey State
Housing Code pursuant to N.J.A.C. 5:28.
(2)
Both renter- and owner-occupied units are eligible for rehabilitation
funds.
(3)
To the extent available, the Borough will continue to utilize funding
from the NJDCA Small Cities Community Development Block Grant Program
to maintain the economic feasibility of the Borough's rehabilitation
program. If DCA funds are not available by March 9, 2013, the Borough
will fund its rehabilitation program using monies from the Borough's
Affordable Housing Trust Fund or other sources as necessary.
(4)
The owner of a renter-occupied unit who is interested in having his
or her unit rehabilitated, and who is willing to agree to income-restrict
the unit for occupation by a qualified low- or moderate-income household
for a period of 10 years, should contact the Borough's affordable
housing liaison for additional information.
(5)
All rehabilitated units shall remain affordable to low- and moderate-income
households for a period of 10 years. For owner-occupied units, the
control period will be enforced with a deed setting forth a declaration
of restrictive covenants; and for renter-occupied units, the control
period will be enforced with a deed restriction and a lien.
(6)
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and the 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.
Prior-round private/public partnership to reconstruct four vacant
apartments located at 47-49 Hanover Street (Block 205, Lot 15).
(1)
Pursuant to the terms of the developer's agreement between Travis
Richards ("developer") and the Borough, the Borough shall contribute
to the developer the amount of $15,000 per affordable unit for four
units for the purpose of reconstructing the residential structure
on property located at Block 205, Lot 15, commonly referred to as
"47-49 Hanover Street."
(2)
The property is located in the Historic District. The developer acknowledges
and agrees that reconstruction of the structure on the property is
subject to review and approval of exterior features by the Planning
Board in accordance with the historic district provisions, and the
Borough encourages flexibility in the application of these provisions
to encourage the creation of affordable housing units.
(3)
The developer shall provide the Borough with a construction schedule
setting forth a timeline identifying construction activities and permits
required, and indicating when construction shall begin, the anticipated
duration of construction activities and the anticipated completion
of construction. The Borough shall approve the construction schedule,
provided that the units are scheduled to be constructed in a time
frame that renders the units creditworthy. The developer agrees to
abide by the construction schedule.
(4)
Said funds shall be taken exclusively from the Borough's existing
Affordable Housing Trust Fund. The developer acknowledges that no
funds can be taken from the Affordable Housing Trust Fund until COAH
or its successor approves the Borough's spending plan. The Borough
agrees to include this project in its spending plan and to proceed
with reasonable diligence in securing approval of its spending plan.
(5)
In return for the aforesaid contribution, the developer agrees to
maintain and operate all of the four units as affordable rental units
for low- and moderate-income individuals which shall comply with all
affordable housing regulations promulgated by COAH or successor agencies
and UHAC, as may be amended over time. The Borough shall have the
right to monitor the income levels of the tenants on an annual basis
to ensure compliance with COAH income requirements. The developer
further agrees to place a thirty-year deed restriction on the property
in the form approved by the Borough and which will result in creditworthy
affordable units eligible to satisfy the Borough's Mount Laurel obligation.
The developer understands that this contribution is contingent on
the Borough's ability to obtain at least four affordable housing credits
(a) from the court or (b) from COAH or its successor agency as part
of the Borough's Affordable Housing Plan. The developer also acknowledges
that the Borough's contribution renders the project economically feasible.
(6)
The parties agree to cooperate in the submission of the within agreement
and the execution of all documents needed to obtain the said housing
credits for the Borough.
(7)
Upon the Borough receiving approval of its spending plan, the Borough
shall make payment to the developer of one-half of the funds (i.e.,
$30,000) within 10 business days of the recording of the affordable
housing deed restriction by the developer. The Borough shall make
payment of the $30,000 upon completion of construction and the issuance
of a certificate of occupancy for all four of the apartments to be
reconstructed.
(8)
If the court or any administrative agency denies the affordable housing
credits related to this agreement, then this agreement shall become
null and void and any payments to the developer shall be refunded
to the Borough and shall be immediately redeposited into the Borough's
Affordable Housing Trust Fund.
C.
Municipally sponsored development.
(1)
The Borough shall facilitate construction of six units through a
private/public partnership as redevelopment of the former Pemberton
Borough Elementary School site (a portion of Block 303, Lot 7, consisting
of approximately 1.03 acres of the total five-and-nine-tenths-acre
site), which will include four market-rate units as incentive for
redevelopment.
(2)
The Borough shall facilitate the construction of four units of affordable
housing at 47-49 Hanover Street (Block 205, Lot 15) or will replace
those units at some other location within the Borough if the developer
of this project fails to perform on its contract.
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 Borough of Pemberton
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 Borough of Pemberton'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 Borough of Pemberton 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 Borough of Pemberton.
[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 Borough of Pemberton's
Affordable Housing Trust Fund in care of the Municipal Treasurer,
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)
Once third-round regulations are established, 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. At least 13% 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,
homeowners' and private mortgage insurance and condominium or homeowners'
association fees do 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.
D.
Phasing schedule for inclusionary zoning. In all inclusionary developments,
the following phasing schedule shall be followed:
|
Maximum Percentage of
Market-Rate Units Completed
|
Minimum Percentage of Low- and
Moderate-Income Units Completed
| |
|---|---|---|
|
25%
|
0%
| |
|
25%+1
|
10%
| |
|
50%
|
50%
| |
|
75%
|
75%
| |
|
90%
|
100%
|
E.
Additional requirements for inclusionary projects.
(1)
In inclusionary developments, to the extent possible, low- and moderate-income
units shall be integrated with the market-rate units.
(2)
In inclusionary developments, low- and moderate-income units shall
have access to all of the same common elements and facilities as the
market-rate units.
|
The following general guidelines apply to all 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.
The Borough shall adopt by resolution an affirmative marketing plan,
subject to approval of the Department of Community Affairs or other
division thereof, 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 5 and covers the period of deed restriction.
C.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 5.
D.
The administrative agent designated by the Borough 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 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 the Borough.
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 Borough's 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 article until the Borough 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 article, 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 article 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, homeowners' 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 article until the Borough 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 Burlington. 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 article 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 article.
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,
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 Borough is
established by this article. The Mayor shall make the actual appointment
of the MHL by means of a letter.
(1)
The MHL must be either a full-time or part-time employee of the Borough.
(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 MHL shall be responsible for oversight and administration of
the affordable housing program for the Borough, 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 Borough
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 Borough shall designate, by resolution of the Borough Council,
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 Borough Council and subject to
approval of COAH. The Operating Manual shall be available for public
inspection in the office of the Borough Clerk and in the office(s)
of the administrative agent(s).
D.
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 include:
(1)
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by COAH;
(2)
Affirmative marketing;
(3)
Household certification;
(4)
Affordability controls;
(5)
Records retention;
(6)
Resale and rerental;
(7)
Processing requests from unit owners; and
(8)
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality.
(9)
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 Borough
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 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 Borough
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)
Filing 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 $1,000 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 Borough 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)
Filing 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 Borough,
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 Borough,
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.
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 Borough 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 Borough
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 Borough 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 Borough 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 Borough 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 Borough. Any interest accrued or earned on
such balance while being held in escrow shall belong to and shall
be paid to the Borough, whether such balance shall be paid to the
owner or forfeited to the Borough.
E.
Foreclosure by the Borough 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 Borough 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 Borough shall obligate the owner
to accept an offer to purchase from any qualified purchaser which
may be referred to the owner by the Borough 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 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 article shall be filed in writing with the Executive
Director of COAH.
