[HISTORY: Adopted by the Mayor and Council of the Borough
of Mount Ephraim as indicated in article histories. Amendments noted
where applicable.]
[Adopted 1-5-2005 by Ord.
No. 731 (Ch. 100, Art. I, of the 1973 Borough Code)]
This section of the Borough Code sets forth regulations regarding
low- and moderate-income housing units in the Borough of Mount Ephraim
that are consistent with the provisions of N.J.A.C. 5:93 et seq.,
as effective on June 6, 1994. These rules are pursuant to the Fair
Housing Act of 1985 and Mount Ephraim's constitutional obligation
to provide for its fair share of low- and moderate-income housing.
A.
Mount Ephraim's fair share obligation will be divided equally
between low- and moderate-income households as per N.J.A.C. 5:93-2.20.
B.
Except for inclusionary developments constructed pursuant to low-income
tax credit regulations:
(1)
At least 1/2 of all units within each inclusionary development will
be affordable to low-income households;
(2)
At least 1/2 of all rental units will be affordable to low-income
households; and
(3)
At least 1/3 of all units in each bedroom distribution pursuant to
N.J.A.C. 5:93-7.3 will be affordable to low-income households.
C.
Inclusionary developments that are not age-restricted will be constructed
in conjunction with realistic market demands so that:
(1)
The combination of efficiency and one-bedroom units is at least 10%
and no greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two-bedroom
units;
(3)
At least 20% of all low- and moderate-income units are three-bedroom
units; and
(4)
Low- and moderate-income units that are age-restricted may utilize
a modified bedroom distribution. At a minimum, the number of bedrooms
will equal the number of age-restricted low- and moderate-income units
within the inclusionary development.
D.
In conjunction with realistic market information, the following criteria
will be used in determining maximum rents and sale prices:
(1)
Efficiency units will be affordable to a one-person household;
(2)
One-bedroom units will be affordable to 1.5 person households;
(3)
Two-bedroom units will be affordable to three-person households;
(4)
Three-bedroom units will be affordable to 4.5 person households;
(5)
Median income by household size will be established by a regional
weighted average of the uncapped Section 8 income limits published
by HUD as per N.J.A.C. 5:93-7.4(b);
(6)
The maximum sales prices of low- and moderate-income units within
each inclusionary development will be affordable to household earning
no more than 70% of median income. In averaging an affordability range
of 55% for sales units, the municipal ordinance will require moderate-income
sales units to be available for at least two different prices and
low-income sales units to be available for at least two different
prices;
(7)
For both owner-occupied and rental units, the low- and moderate-income
units will utilize the same heating source as market units within
an inclusionary development;
(8)
Low-income units will be reserved for households with a gross household
income less or equal to 50% of the median income approved by COAH;
moderate-income units will be reserved for households with a gross
household income less than 80% of the median income approved by COAH
as per N.J.A.C. 5:93-7.4(g); and
(9)
The regulations outlined in N.J.A.C. 5:93-9.15 and 9.16 will be applicable
for purchased and rental units.
E.
For rental units, developers and/or municipal sponsors may:
(1)
Establish one rent for a low-income unit and one for a moderate-income
unit for each bedroom distribution;
(2)
Gross rents, including an allowance for tenant-paid utilities, will
be established so as not to exceed 30% of the gross monthly income
of the appropriate household size as per N.J.A.C. 5:93-7.4(f). The
tenant-paid utility allowance will be consistent with the utility
allowance approved by HUD for use in New Jersey; and
(3)
The maximum rents of low- and moderate-income units within each inclusionary
development will be affordable to households earning no more than
60% of median income. In averaging an affordability range of 52% for
rental units, developers and/or municipal sponsors of rental units
may establish one rent for a low-income unit and one rent for a moderate-income
unit for each bedroom distribution.
F.
For-sale units.
(1)
The initial price of a low- and moderate-income owner-occupied for-sale
housing unit will be established so that after a down payment of 5%,
the monthly principal, interest, homeowner and private mortgage insurance,
property taxes (based on the restricted value of the low- and moderate-income
unit) and condominium or homeowner fee do not exceed 28% of the eligible
gross monthly income;
(2)
Master deeds of inclusionary developments will regulate condominium
or homeowner association fees or special assessments of low- and moderate-income
purchasers at 75% of those paid by market purchasers. This percentage
is consistent with the requirements of N.J.A.C. 5:93-7.4(e). Once
established within the master deed, the percentage will not be amended
without prior approval from COAH;
(3)
Mount Ephraim will follow the general provisions concerning uniform
deed restriction liens and enforcement through certificates of occupancy
or reoccupancy on sale units as per N.J.A.C. 5:93-9.3;
(4)
Mount Ephraim will require a certificate of reoccupancy for any occupancy
of a low- or moderate-income sales unit resulting from a resale as
per N.J.A.C. 5:93-9.3(c);
(5)
Municipal, state, nonprofit and seller options regarding for-sale
units will be consistent with N.J.A.C. 5:93-9.5 to 9.8. Municipal
rejection of repayment options for sale units will be consistent with
N.J.A.C. 5:93-9.9;
(6)
The continued application of options to create, rehabilitate or maintain
low- and moderate-income sale units will be consistent with N.J.A.C.
5:93-9.10;
(7)
Eligible capital improvements prior to the expiration of controls
on sale units will be consistent with N.J.A.C. 5:93-9.11; and
(8)
The regulations detailed in N.J.A.C. 5:93-9.12 through 9.14 will
be applicable to low- and moderate-income units that are for-sale
units.
G.
In zoning for inclusionary developments, the following is required:
(1)
Low- and moderate-income units will be built in accordance with N.J.A.C.
5:93-5.6(d):
|
Minimum Percent of Low/Moderate Income Units Completed
|
Percent of Market Housing Units Completed
| |
|---|---|---|
|
0%
|
25%
| |
|
10%
|
25% plus 1 unit
| |
|
50%
|
50%
| |
|
75%
|
75%
| |
|
100%
|
90%
| |
|
100%
|
(2)
A design of inclusionary developments that integrates low- and moderate-income
units with market units is encouraged as per N.J.A.C. 5:93-5.6(f).
I.
To provide assurances that low- and moderate-income units are created
with controls on affordability over time and that low- and moderate-income
households occupy these units, Mount Ephraim will designate the Borough
Clerk with the responsibility of ensuring the affordability of sales
and rental units over time. The Borough Clerk will be responsible
for those activities detailed in N.J.A.C. 5:93-9.1(a).
(1)
In addition, the Borough Clerk will be responsible for utilizing
the verification and certification procedures outlined in N.J.A.C.
5:93-9.1(b) in placing households in low- and moderate-income units;
(2)
Newly constructed low- and moderate-income sales units will remain
affordable to low- and moderate-income households for at least 30
years. The Borough Clerk will require all conveyances of newly constructed
units to contain the deed restriction and mortgage lien adopted by
COAH and referred to as "Technical Appendix E" as found in N.J.A.C.
5:93; and
(3)
Housing units created through the conversion of a nonresidential
structure will be considered a new housing unit and will be subject
to thirty-year controls on affordability. The Borough Clerk will require
COAH's appropriate deed restriction and mortgage lien.
J.
Regarding rehabilitated units.
(1)
Rehabilitated owner-occupied single-family housing units that are
improved to code standard will be subject to affordability controls
for at least six years.
(2)
Rehabilitated renter-occupied housing units that are improved to
code standard will be subject to affordability controls for at least
10 years.
K.
Regarding rental units.
(1)
Newly constructed low- and moderate-income rental units will remain
affordable to low- and moderate-income households for at least 30
years. The Borough Clerk will require the deed restriction and lien
and deed of easement referred to as "Technical Appendix H" as found
in N.J.A.C. 5:93;
(2)
Affordability controls in accessory apartments will be for a period
of at least 10 years, except if the apartment is to receive a rental
bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on
affordability will extend for 30 years (N.J.A.C. 5:93-5.9); and
(3)
Alternative living arrangements will be controlled in a manner suitable
to COAH that provides assurances that such a facility will house low-
and moderate-income households for at least 10 years, except if the
alternative living arrangement is to receive a rental bonus credit
pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability
will extend for 30 years (N.J.A.C. 5:93-5.8).
L.
Section 14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301 et seq.,
incorporates the need to eliminate unnecessary cost-generating features
from Mount Ephraim's land use ordinances. Accordingly, Mount
Ephraim will eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal
approvals/denials on certain affordable housing developments. Mount
Ephraim will adhere to the components of N.J.A.C. 5:93-10.1 through
10.3.
M.
Mount Ephraim has a fair share obligation of 126 units, of which
107 is new construction. This article will apply to all developments
that contain proposed low- and moderate-income units that are listed
below and any future developments that may occur.
[Adopted 1-5-2005 by Ord.
No. 733 (Ch. 100, Art. II, of the 1973 Borough Code)]
In Holmdel Builder's Association v. Holmdel Township, 121
N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory
development fees are authorized by the Fair Housing Act of 1985, N.J.S.A.
52:27D-301 et seq., and the State Constitution, subject to the Council
on Affordable Housing's (COAH) adoption of rules. The purpose
of this article is to establish standards for the collection, maintenance
and expenditure of development fees pursuant to COAH's rules.
Fees collected pursuant to this article shall be used for the sole
purpose of providing low- and moderate-income housing. This article
shall be interpreted within the framework of COAH's rules on
development fees.
A.
Within the Residential Zoning Districts R-1, R-2 and R-MR, developers
shall pay a development fee of 1/2 of 1% of the equalized assessed
value for residential development, provided no increased density is
permitted.
B.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(5),
then the additional residential units realized (above what is permitted
by right under the existing zoning) will incur a bonus development
fee of 1% of the equalized assessed value rather than the development
fee of 1/2 of 1% of the equalized assessed value. However, if the
zoning on a site has changed during the two-year period preceding
the filing of the "d" variance application, the density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the "d" variance application.
A.
Developers within the Commercial C Zoning District shall pay a fee
of 1/2 of 1% of the equalized assessed value for nonresidential development.
B.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(4),
then the additional floor area realized (above what is permitted by
right under the existing zoning) will incur a bonus development fee
of 1% rather than the development fee of 1%. However, if the zoning
on a site has changed during the two-year period preceding the filing
of the "d" variance application, the density for the purposes of calculating
the bonus development fee shall be the highest density permitted by
right during the two-year period preceding the filing of the "d" variance
application. The development fee will be based on the equalized assessed
value for nonresidential development.
A.
Developers of low- and moderate-income units shall be exempt from
paying development fees.
B.
Developers that have received preliminary or final approval prior
to the effective date of this article shall be exempt from paying
a development fee unless the developer seeks a substantial change
in the approval.
C.
Charitable organizations and houses of worship shall be exempt from
paying a development fee.
Developers shall pay the calculated entire fee to the Borough
of Mount Ephraim at the issuance of certificates of occupancy, in
accordance with N.J.A.C. 5:93-8.10.
A.
There is hereby created an interest-bearing Housing Trust Fund in
Commerce Bank for the purpose of receiving development fees from residential
and nonresidential developers. All development fees paid by developers
pursuant to this article shall be deposited in this Fund. No money
shall be expended from the Housing Trust Fund unless the expenditure
conforms to a spending plan approved by COAH.
B.
If COAH determines that the Borough of Mount Ephraim is not in conformance
with COAH's rules on development fees, COAH is authorized to
direct the manner in which all development fees collected pursuant
to this article shall be expended. Such authorization is pursuant
to: this article, COAH's rules on development fees and the written
authorization from the governing body at Commerce Bank.
A.
Money deposited in a Housing Trust Fund may be used for any activity
approved by COAH for addressing the Borough of Mount Ephraim's
low- and moderate-income housing obligation. Such activities may include,
but are not necessarily limited to, housing rehabilitation, new construction,
regional contribution agreements, the purchase of land for low- and
moderate-income housing, extensions and/or improvements of roads and
infrastructure to low- and moderate-income housing sites, assistance
designed to render units more affordable to low- and moderate-income
households and administrative costs necessary to implement the Borough
of Mount Ephraim's Housing Element. The expenditure of all money
shall conform to a spending plan approved by COAH.
B.
At least 30% of the revenues collected shall be devoted to render
units more affordable, unless exempt as per N.J.A.C. 5:93-8.16(c).
Examples of such activities include, but are not limited to, down
payment and closing cost assistance, low-interest loans and rental
assistance.
C.
No more than 20% of the revenues shall be expended on administrative
costs necessary to develop, revise or implement the Housing Element.
Examples of eligible administrative activities include personnel,
consultant services, space costs, consumable supplies and rental or
purchase of equipment directly associated with plan development or
plan implementation.
For the purposes of the Borough's affordable housing ordinances,
the terms below shall be defined as follows:
The New Jersey Council on Affordable Housing.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH's rules.
The value of a property determined by the municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
Estimates at the time of issuance of a building permit may be obtained
utilizing estimates for construction cost. Final equalized assessed
value will be determined at project completion by the municipal Tax
Assessor.
A judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
A determination by COAH approving a municipality's Housing
Element and Fair Share Plan in accordance with the provisions of the
Fair Housing Act and the rules and criteria as set forth herein. A
grant of substantive certification shall be valid for a period of
six years in accordance with the terms and conditions therein.
