The following terms, when used in this chapter, shall have the
meanings given in this section:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity responsible for the administration of affordable
units in accordance with this chapter, as defined and with the responsibilities
specified at N.J.A.C. 5:96, N.J.A.C. 5:97 and N.J.A.C. 5:80-26.1 et
seq., as may be amended and supplemented.
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 HOUSING
Housing restricted to income-eligible low- and moderate-income
households.
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 housing 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
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.
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.
BOARD OF JURISDICTION
The Planning Board of the City of Hoboken, the Board of Adjustment
of the City of Hoboken, or the City Council of the City of Hoboken,
as applicable.
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.), or successor agency.
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.
HOUSING REGION
A geographic area, determined by COAH, of no less than two
and no more than four contiguous, whole counties, which exhibits significant
social, economic, and income similarities and which constitutes, to
the greatest extent practicable, a Primary Metropolitan Statistical
Area (PMSA), as last defined by the United States Census Bureau.
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.
INFILL
Development on vacant or underutilized property between existing
buildings.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the median household income for the housing region.
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 or by a successor entity approved by the
court.
[Amended 5-3-2023 by Ord. No. B-558]
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 for
the housing region.
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).
REDEVELOPMENT PLAN
A plan adopted by the City Council of the City of Hoboken
for the redevelopment or rehabilitation of all or any part of a redevelopment
area, or area in need of rehabilitation, pursuant to the Local Redevelopment
and Housing Law, N.J.S.A. 40A:12A-1 et seq.
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 duly adopted Regional Income Limits published annually
by COAH or a successor entity.
[Amended 5-3-2023 by Ord. No. B-558]
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 the UHORP or MONI programs of the Agency.
SUBSTANTIAL REHABILITATION
Any rehabilitation of a vacant structure or any rehabilitation
that involves the replacement of two or more major systems.
TOTAL DEVELOPMENT COST
The expenses that a developer can reasonably expect to incur
in order to develop an affordable housing development, which include
"hard costs" such as land acquisition, site improvements, and new
construction or rehabilitation, and "soft costs" consisting of all
other costs and fees, such as professional services and financing
fees.
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.
WATERFRONT DISTRICT
Any district or subdistrict so designated by the Zoning Ordinance
of the City of Hoboken.
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.
Provision of on-site or off-site affordable housing units shall
take place simultaneously with the balance of the development triggering
the affordable housing requirement and shall be governed by the following
phasing schedule:
Maximum Percentage of Market Units Issued Certificates
of Occupancy
|
Minimum Percentage of Low- and Moderate-Income Units Issued
Certificates of Occupancy
|
---|
25% + 1 unit
|
10%
|
50%
|
50%
|
75%
|
75%
|
90%
|
100%
|
Certificates of occupancy for the last 10% of the market units
shall not be issued until certificates of occupancy have been issued
for all of the required affordable units.
|
A. In inclusionary developments, low- and moderate-income units shall
be integrated with and interspersed among the market-rate units but
may be concentrated for financing or property management reasons at
the discretion of the Board of jurisdiction, e.g., for rental affordable
units satisfying the set-aside required for a development of market-rate
condominium units.
B. A schedule setting forth the phasing of the actual number of total
units and affordable units, by income category and unit size, for
each development shall be incorporated into the resolution of approval
for any development subject to the provisions of this chapter.
C. Low- and moderate-income units shall utilize the same type of heating
source as market-rate units within the affordable development.
Affordable housing units provided under this chapter shall comply
with the standards of this section.
A. Occupancy standards.
(1) Occupancy standards for determining rents and sales prices. 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.
(2) Occupancy standards for determining rents in assisted living facilities.
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:
(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; and
(c)
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
B. Bedroom distribution of affordable housing units.
(1) The bedroom distributions of affordable units in non-age-restricted
developments 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.
(2) 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.
C. Very low/low/moderate split.
[Added 8-7-2019 by Ord.
No. B-175]
(1) The affordable units shall be divided equally between low- and moderate-income
units, except that where there is an odd number of affordable housing
unit, the extra unit shall be a low-income unit. At least 13% of the
restricted rental units shall be very-low-income units (affordable
to a household earning 30% or less of regional median income by household
size). The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(2) In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units. If there is only one affordable unit, it must be a low-income
unit.
D. Marketing of affordable housing units. Marketing of affordable housing
units provided under this chapter shall be undertaken subject to the
following provisions:
[Amended 8-7-2019 by Ord.
No. B-175]
(1) Marketing shall take place in accordance with the provisions of a
marketing plan, as provided herein.
(a)
The City of Hoboken shall adopt, by resolution, an affirmative
marketing plan, compliant with N.J.A.C. 5:80-26.15, as may be amended
and supplemented. Such affirmative marketing plan shall be included
as part of an eventual petition to COAH for substantive certification
or as part of a declaratory judgement action filed in Superior Court.
(b)
The affirmative marketing plan shall recognize that the City
of Hoboken is an urban aid municipality. The affirmative marketing
plan shall contain a residency preference for all new units which
are intended to satisfy the City's rehabilitation obligation, which
is an indigenous requirement. The affirmative marketing plan is a
marketing strategy designed to attract buyers and/or renters of all
majority and minority groups, regardless of race, creed, color, national
origin, ancestry, marital or family 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 the City. It is a continuing program
that directs all marketing activities toward the City with regard
to new construction which satisfies the rehabilitation obligation
and covers the period of deed restriction. This residency preference
is subject to compliance with any federal or state regulations concerning
marketing where certain subsidies or other incentives are provided.
(c)
The affirmative marketing plan shall also have a residency preference
for new units which are not a part of and exceed the rehabilitation
obligation. This residency preference, however, must not result in
an affirmative marketing plan which violates any federal or state
statute by resulting in a discriminatory or disparate impact to minority
groups. The City is required to re-evaluate this section at least
every 10 years simultaneous with the re-examination of the municipal
Master Plan by the City Planning Board pursuant to N.J.S.A. 40:55D-89.
(d)
There shall also be a residency preference in the leasing and
sale of affordable housing units. The affordable housing waiting list
maintained by the administrative agent or other appropriate municipal
official shall further be required to prioritize residents of the
City of Hoboken over nonresidents pursuant to the limitations expressed
above.
(e)
The administrative agent designated by the City of Hoboken shall
assure the affirmative marketing of all affordable units developed
pursuant to this chapter, consistent with the affirmative marketing
plan for the municipality.
(f)
In implementing the affirmative marketing plan, the administrative
agent shall provide a list of housing counseling services to low-
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
(g)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy
of the units.
(h)
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 City of Hoboken.
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.
[Amended 8-7-2019 by Ord.
No. B-175]
(1) 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.
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.
[Amended 8-7-2019 by Ord.
No. B-175]
A. Buyer income eligibility for restrictive ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented.
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 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.
B. The income limits shall be as set forth in Chart "A" annexed hereto
and made a part hereof on the chart prepared by the Affordable Housing
Professionals of New Jersey April 2018, titled "2018 Affordable Housing
Regional Income Limits by Household Size," which shall be utilized
until Hoboken updates the income limits after HUD has published revised
determinations of median income for the next fiscal year.
C. 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 municipality annually by taking the percentage increase of the income limits calculated pursuant to Subsection
A 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.
D. In establishing sales prices 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:
(1) 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.
E. 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.
[Amended 8-7-2019 by Ord.
No. B-175]
A. In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
the UHAC utilizing the regional income limits established by the New
Jersey Department of Community Affairs (DCA) or other agency as may
be required by a court.
B. 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.
C. 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.
(1) At least 13% of all low- and moderate-income dwelling units shall
be affordable to households earning no more than 30% of median income.
D. 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 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.
E. In establishing rents of affordable housing units, the administrative
agent shall follow the procedures set forth in the UHAC, utilizing
the regional income limits established pursuant to the process defined
above:
(1) 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 5% 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.
All redevelopment plans providing for residential development,
prepared and adopted or amended pursuant to the Local Redevelopment
and Housing Law, N.J.S.A. 40A:12A-1 et seq., after the effective date
of this chapter, shall include inclusionary affordable housing development
standards and requirements identical to the standards and requirements
of this chapter.
This chapter shall take effect upon passage and publication
as provided by law but shall not be applicable to applications for
residential development pending before the Board of jurisdiction on
the effective date of this chapter.
If any section, subsection, sentence, clause, phrase or portion
of this chapter is for any reason held invalid or unconstitutional
by any court of competent jurisdiction, such portion shall be deemed
a separate, distinct and independent provision, and such holding shall
not affect the validity of the remaining portions thereof.
The Affordable Housing Ordinance added to the City Code 5-18-1988 by Ord. No. P-6, §§
196-68 through 196-81, is hereby repealed prospectively. It shall remain in full force and effect for all applications for residential development pending before the Board of jurisdiction on the effective date of this chapter seeking a use variance to allow residential development in a zoning district or redevelopment plan where such uses are not currently permitted or seeking an increase in residential density or floor area ratio (FAR). This chapter shall further remain applicable to all applications having received approval under its terms.
All ordinances or parts of ordinances inconsistent herewith
are repealed as to such inconsistencies.