The purpose of this article is to create the administrative
mechanisms needed for the execution of the Borough of Demarest's responsibility
to assist in the provision of affordable housing pursuant to the Fair
Housing Act of 1985.
As used in this article, the following terms shall have the
meanings indicated:
ADMINISTRATIVE AGENT
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Borough of Demarest to ensure that the restricted units under
administration are affirmatively marketed and sold or rented, as applicable,
only to low- and moderate-income households.
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Borough of Demarest.
There is hereby established the position of Municipal Housing
Liaison for the Borough of Demarest.
Subject to the approval of the Council on Affordable Housing
(COAH), the Municipal Housing Liaison shall be appointed by the governing
body and may be a full- or part-time municipal employee.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Borough
of Demarest, including the following responsibilities which may not
be contracted out:
A. Serving as the Borough of Demarest's primary point of contact for
all inquiries from the state, affordable housing providers, administrative
agents, and interested households;
B. Monitoring the status of all restricted units in the Borough of Demarest's
Fair Share Plan;
C. Compiling, verifying, and submitting annual reports as required by
COAH;
D. Coordinating meetings with affordable housing providers and administrative
agents, as applicable;
E. Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by COAH;
F. If applicable, serving as the administrative agent for some or all of the restricted units in the Borough of Demarest as described in §
32-17 below.
Subject to approval by COAH, the Borough of Demarest may contract
with or authorize a consultant, authority, government or any agency
charged by the governing body, which entity shall have the responsibility
of administering the affordable housing program of the Borough of
Demarest. If the Borough of Demarest contracts with another entity
to administer all or any part of the affordable housing program, including
the affordability controls and Affirmative Marketing Plan, the Municipal
Housing Liaison shall supervise the contracting administrative agent.
Compensation shall be fixed by the governing body at the time
of the appointment of the Municipal Housing Liaison.
The following shall be the powers and duties of the Municipal
Housing Liaison, in the absence of any contractual or other legal
obligation to the contrary:
A. Affirmative marketing.
(1) Conducting an outreach process to insure affirmative marketing of
affordable housing units in accordance with the Affirmative Marketing
Plan of the Borough of Demarest and the provisions of N.J.A.C. 5:80-26.15;
and
(2) Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B. Household certification.
(1) Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2) Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3) Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4) Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendices J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5) Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
and
(6) Employing the random selection process as provided in the Affirmative
Marketing Plan of the Borough of Demarest when referring households
for certification to affordable units.
C. Affordability controls.
(1) Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2) Creating and maintaining a file on each restricted unit for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(3) Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the appropriate
county's register of deeds or County Clerk's office after the termination
of the affordability controls for each restricted unit;
(4) Communicating with lenders regarding foreclosures; and
(5) Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
D. Resale and rental.
(1) Instituting and maintaining an effective means of communicating information
between owners and the administrative agent regarding the availability
of restricted units for resale or rental; and
(2) Instituting and maintaining an effective means of communicating information
to low- and moderate-income households regarding the availability
of restricted units for resale or rerental.
E. Processing request from unit owners.
(1) Reviewing and approving requests from owners of restricted units
who wish to take out home equity loans or refinance during the term
of their ownership;
(2) Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to make capital improvements to the units
that would affect the selling price, such authorizations to be limited
to those improvements resulting in additional bedrooms or bathrooms
and the cost of central air-conditioning systems; and
(3) Processing requests and making determinations on requests by owners
of restricted units for hardship waivers.
F. Enforcement.
(1) Securing annually lists of all affordable housing units for which
tax bills are mailed to absentee owners and notifying all such owners
that they must either move back to their unit or sell it;
(2) Securing from all developers and sponsors of restricted units, at
the earliest point of contact in the processing of the project or
development, written acknowledgement of the requirement that no restricted
unit can be offered, or in any other way committed, to any person,
other than a household duly certified to the unit by the administrative
agent;
(3) The posting annually in all rental properties, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the administrative agent where complaints
of excess rent can be made;
(4) Sending annual mailings to all owners of affordable dwelling units,
reminding them of the notices and requirements outlined in N.J.A.C.
5:80-26.18(d)4;
(5) Establishing a program for diverting unlawful rent payments to the
municipality's affordable housing trust fund or other appropriate
municipal fund approved by the Department of Community Affairs;
(6) Establishing a rent-to-equity program;
(7) Creating and publishing a written operating manual, as approved by
COAH, setting forth procedures for administering such affordability
controls; and
(8) Providing annual reports to COAH as required.
G. The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.