[HISTORY: Adopted by the Township Committee
of the Township of Pittsgrove as indicated in article histories. Amendments
noted where applicable.]
GENERAL REFERENCES
Land use and development — See Ch. 60.
[Adopted 7-24-2007 by Ord. No. 3-2007;
amended 5-11-2016 by Ord. No. 6-2016]
A.
Affordable housing obligation.
(1)
This section of the Township Code sets forth regulations regarding
the low- and moderate-income housing units in the Township consistent
with the Substantive Rules of the New Jersey Council on Affordable
Housing, N.J.A.C. 5:93 et seq., the Uniform Housing Affordability
Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., and the Township's
constitutional obligation to provide a fair share of affordable housing
for low- and moderate-income households. In addition, this section
applies requirements for very low income housing as established in
P.L. 2008, c.46 (the Roberts Bill).
(2)
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.
(3)
The Pittsgrove Township 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 Plan has also been endorsed by the Township
Committee of the Township of Pittsgrove. The Fair Share Plan describes
the ways the Township shall address its fair share for low- and moderate-income
housing as determined by the Council on Affordable Housing (COAH)
and documented in the Housing Element.
(4)
This article implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:93, as may be amended and
supplemented.
B.
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
(1)
(2)
(3)
AGENCY
ASSISTED LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
FAIR SHARE PLAN
HOUSING ELEMENT
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN INCOME
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
NON-EXEMPT SALE
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
UHAC
VERY LOW-INCOME HOUSEHOLD
VERY LOW-INCOME UNIT
WEATHERIZATION
Definitions. As used herein the following terms shall have the following
meanings:
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. 5:93 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.S.A. 52:27D-304; 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 100% 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. 5:93-3, and/or funded through an affordable housing
trust fund.
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
U.S. 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.
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 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.).
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.
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.S.A. 55:27D-309 through 52:27D-314.
The portion of the Township's Master Plan, required
by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and
the Act, that includes the information required by N.J.A.C. 5:93-5.1(b)
and establishes the Township's fair share obligation.
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.
C.
New construction. The following requirements shall apply to all new
or planned developments that contain low- and moderate-income housing
units.
(1)
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units whether developed in a
single phase development, or in a multiphase development:
|
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
|
(2)
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
(3)
Utilities and common elements. In inclusionary developments, affordable
units shall utilize the same type of heating source as the market
units within the development, and the occupants of the affordable
units shall have access to all of the same common elements and facilities
as the occupants of the market units within the development.
(4)
Low/moderate split and bedroom distribution of affordable housing
units:
(a)
Affordable units in a development 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.
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(c)
At least 10% of all affordable rental units shall be very low
income units (affordable to households earning 30% or less of median
income). The very low income units shall be counted as part of the
required number of low income units within the development.
(d)
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
[1]
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
[2]
At least 30% of all low- and moderate-income units shall be
two bedroom units;
[3]
At least 20% of all low- and moderate-income units shall be
three bedroom units; and
[4]
The remaining units may be allocated among two and three bedroom
units at the discretion of the developer.
(e)
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.
(5)
Accessibility requirements:
(a)
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.
(b)
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:
[1]
An adaptable toilet and bathing facility on the first floor;
[2]
An adaptable kitchen on the first floor;
[3]
An interior accessible route of travel on the first floor;
[4]
An interior accessible route of travel shall not be required
between stories within an individual unit;
[5]
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
[6]
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, or evidence that the Township has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[a]
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.
[b]
To this end, the builder of restricted units shall deposit funds
within the Township of Pittsgrove's affordable housing trust
fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[c]
The funds deposited under Subsection C(5)(b)[6] herein, shall be used by the Township 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.
[d]
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 Township of Pittsgrove.
[e]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Township of Pittsgrove's affordable housing trust
fund in care of the Chief Financial Officer who shall ensure that
the funds are deposited into the affordable housing trust fund and
appropriately earmarked.
[f]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is impracticable to meet the
requirements on the site. Determinations of site impracticability
shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
(6)
Maximum rents and sales prices.
(a)
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.
(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 10% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(d)
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.
(e)
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
met:
[1]
A studio or efficiency unit shall be affordable to a one-person
household;
[2]
A one-bedroom unit shall be affordable to a one and one-half-person
household;
[3]
A two-bedroom unit shall be affordable to a three-person household;
[4]
A three-bedroom unit shall be affordable to a four and one-half-person
household; and
[5]
A four-bedroom unit shall be affordable to a six-person household.
(f)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(g)
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, homeowner and private mortgage insurance and condominium or
homeowner 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.
(h)
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.
(i)
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.
(j)
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.
(k)
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.
Condominium and homeowners association fees. For any affordable housing
unit that is part of a condominium association and/or homeowners association,
the master deed shall reflect that the association fee assessed for
each affordable housing unit shall be established at 100% of the market
rate fee.
A.
Purpose. The requirements of this section apply to all developments
that contain affordable housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
B.
Affirmative marketing.
(1)
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 4 and covers the period of deed restriction.
(2)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 6,
comprised of Atlantic, Cape May, Cumberland, and Salem Counties.
(3)
Although the Township has the ultimate responsibility for implementing
all aspects of Pittsgrove's affordable housing program, the administrative
agent designated by the Township shall assure the affirmative marketing
of all affordable units is consistent with the affirmative marketing
plan for the municipality.
(4)
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.
(5)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
(6)
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 Township of Pittsgrove.
(7)
The affirmative marketing plan for each affordable housing development
shall describe the media to be used in advertising and publicizing
the availability of housing. In implementing the affirmative marketing
plan, the administrative agent shall consider the use of language
translations where appropriate.
(8)
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the county library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request.
C.
Occupancy standards.
(1)
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:
(2)
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal operating manual.
D.
Selection of occupants of affordable housing units.
E.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, and each restricted ownership unit shall
remain subject to the controls on affordability for a period of at
least 30 years and thereafter, until Pittsgrove takes action to release
the unit from such requirements.
(2)
Rehabilitated owner-occupied single family housing units that are
improved to code standards shall be subject to affordability controls
for a period of 10 years.
(3)
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(4)
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 without the restrictions in place.
(5)
At the time of the initial sale of the unit, the initial 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 restrictions set forth in 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.
(6)
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.
(7)
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.
F.
Price restrictions for restricted ownership units, homeowner association
fees and resale prices. 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:
(1)
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(2)
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
(3)
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.
(4)
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.
(5)
Sellers or resellers of restricted ownership units will be charged
a fee of 3.0% of the sale price for services provided by the administrative
agent related to the sale or resale of their home. This fee shall
apply to sellers who submit a signed intent to sell their restricted
ownership units to the administrative agent on or after June 1, 2016,
and the fee shall be collected at closing and paid directly to the
administrative agent.
G.
Capital improvements to ownership units.
(1)
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 made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
(2)
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the administrative
agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
administrative agent. Unless otherwise approved by the administrative
agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
H.
Buyer income eligibility.
(1)
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.
(2)
Notwithstanding the foregoing, however, the administrative agent
may, in accordance with COAH's criteria, permit moderate-income
purchasers to buy low-income units in housing markets determined by
COAH to have an insufficient number of eligible low-income purchasers
to permit prompt occupancy of the units. All such low-income units
to be sold to moderate-income households shall retain the required
pricing restrictions for low-income units.
(3)
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the administrative
agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to a certified
household for a period not to exceed one year.
(4)
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, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
I.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
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.
(2)
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).
J.
Control periods for restricted rental units.
(1)
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, and each restricted rental unit shall remain
subject to the controls on affordability for a period of at least
30 years and, thereafter, until Pittsgrove takes action to release
the unit from such requirements.
(2)
Rehabilitated renter-occupied housing units that are improved to
code standards shall be subject to affordability controls for a period
of 10 years.
(3)
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 Salem. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(4)
A restricted rental unit shall remain subject to the affordability
controls of this article, despite the occurrence of any of the following
events:
K.
Rent restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental units
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.
(2)
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.
(3)
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.
L.
Tenant income eligibility.
(1)
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:
(a)
Very low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
(2)
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:
(a)
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;
(b)
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;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
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.
M.
Conversions. Each housing unit created through the conversion of
a nonresidential structure shall be considered a new housing unit
and shall be subject to the affordability controls for a new housing
unit.
A.
Municipal Housing Liaison.
(1)
The position of Municipal Housing Liaison for the Township of Pittsgrove
is hereby established. The Municipal Housing Liaison shall be appointed
by duly adopted resolution of the Township Committee and be subject
to the approval of the Court or COAH, as appropriate.
(2)
The Municipal Housing Liaison must be either a full-time or part-time
employee of the Township of Pittsgrove.
(3)
The Municipal Housing Liaison must meet COAH's requirements
for qualifications, including initial and periodic training.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Pittsgrove, including the following responsibilities if not 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, unless contracted to the administrative agent.
(c)
When applicable, supervising all administrative agents.
(d)
Monitoring the status of all restricted units in the Township
of Pittsgrove's 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 needed; and
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH.
B.
Administrative agent.
(1)
The Township shall designate by resolution of the Township Committee,
subject to the approval of the Court, one or more administrative agents
to administer newly constructed affordable units in accordance with
N.J.A.C. 5:93 and UHAC.
(2)
An operating manual shall be provided by the administrative agent(s)
to be adopted by resolution of the governing body and subject to approval
of the Court. The Operating Manuals shall be available for public
inspection in the Office of the Municipal Clerk and in the office(s)
of the administrative agent(s).
(3)
The administrative agents 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 Manuals, including those
set forth in N.J.A.C. 5:80-26.14, 15, 16 and 18 thereof, which includes:
(a)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
(b)
Affirmative marketing;
(c)
Household certification;
(d)
Affordability controls;
(e)
Records retention;
(f)
Resale and rerental;
(g)
Processing requests from unit owners; and
(h)
Enforcement, although the ultimate responsibility for retaining
controls on the units rests with the municipality.
(i)
The administrative agent shall, as delegated by the Township
Committee, have the authority to take all actions necessary and appropriate
to carry out its responsibilities, hereunder.
C.
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
(2)
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(a)
The municipality may file a court action pursuant to N.J.S.A.
2A:58-11 alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
[1]
A fine of not more than $500 or imprisonment for a period not
to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
[2]
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Pittsgrove Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
[3]
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.
(b)
The municipality may file a court action in the Superior Court
seeking a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
(3)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
(4)
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 municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(5)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(6)
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 municipality 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.
(7)
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(8)
The owner shall remain fully obligated, responsible and liable for
complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
D.
Appeals. Appeals from all decisions of an administrative agent designated
pursuant to this article shall be filed in writing with the Executive
Director of COAH.
[Adopted 12-23-2008 by Ord. No. 12-2008]
A.
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 rules adopted by the New Jersey Council on Affordable
Housing (COAH).
B.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A.
52:27D-329.2) and the Statewide Nonresidential Development Fee Act
(N.J.S.A. 40:55D-8.1 through 8.7), COAH is authorized to adopt and
promulgate regulations necessary for the establishment, implementation,
review, monitoring and enforcement of municipal affordable housing
trust funds and corresponding spending plans. Municipalities that
are under the jurisdiction of the Council or court of competent jurisdiction
and have an approved spending plan may retain fees collected from
nonresidential development.
C.
This article establishes standards for the collection,
maintenance and expenditure of development fees pursuant to COAH's
regulations and in accordance with P.L. 2008, c. 46, §§ 8
and 32-38. 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, codified at N.J.A.C. 5:97-8.
A.
The Township of Pittsgrove shall not impose development
fees on any applicant pursuant to this article until COAH or a court
has approved the Development Fee Ordinance pursuant to N.J.A.C. 5:96-5.1,
except that residential fees may be collected pursuant to the previously
approved fee ordinance until such time as this article takes effect,
and nonresidential fees shall be collected in accordance with the
Statewide Nonresidential Development Fee Act, N.J.S.A. 40:55D-8.1
et seq.
B.
The Township of Pittsgrove shall not spend development
fees until COAH or a court has approved a plan for spending such fees
in conformance with N.J.A.C. 5:97-8.10 and N.J.A.C. 5:96-5.3.
A.
AFFORDABLE HOUSING DEVELOPMENT
COAH or THE COUNCIL
DEVELOPER
DEVELOPMENT FEE
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
The following terms, as used in this article, shall
have the following meanings:
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.
The New Jersey Council on Affordable Housing established
under the act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
considerations in the state.
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Money paid by a developer for the improvement of property
as permitted under N.J.A.C. 5:97-8.3.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with §§ 1,
5 and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through N.J.S.A. 54:1-35c).
Those strategies that minimize the impact of development
on the environment and enhance the health, safety and well-being of
residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A.
Imposed fees.
(1)
Within all zoning districts in the Township of Pittsgrove,
residential developers, except for developers of the types of development
specifically exempted below, shall pay a fee of 1.5% of the equalized
assessed value for residential development, provided no increased
density is permitted.
(2)
When an increase in residential density pursuant to
N.J.S.A. 40:55D-70d(5) (known as a "d" variance) has been permitted,
developers shall be required to pay a development fee of 6% of the
equalized assessed value (EAV) for each additional unit above that
permitted by right which may be realized. However, if the zoning on
a site has changed during the two-year period preceding the filing
of such a variance application, the base 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 variance application. Example: If an approval allows four units
to be constructed on a site that was zoned for two units, the fees
could equal 1.5% of the equalized assessed value on the first two
units; and the specified higher percentage up to 6% of the equalized
assessed value for the two additional units, provided zoning on the
site has not changed during the two-year period preceding the filing
of such a variance application.
B.
Eligible exactions, ineligible exactions and exemptions
for residential development.
(1)
Affordable housing developments and developments where
the developer has made a payment in lieu of on-site construction of
affordable-units shall be exempt from development fees.
(2)
Developments that have received preliminary or final
site plan approval prior to the adoption of a municipal development
fee ordinance shall be exempt from development fees, unless the developer
seeks a substantial change in the approval. Where a site plan approval
does not apply, a zoning and/or building permit shall be synonymous
with preliminary or final site plan approval for this purpose. The
fee percentage shall be vested on the date that the building permit
is issued.
(3)
Development fees shall be imposed and collected when
an existing structure undergoes a change to a more intense use, is
demolished and replaced or is expanded, if the expansion is not otherwise
exempt from the development fee requirement. The development fee shall
be calculated on the increase in the equalized assessed value of the
improved structure.
(4)
Nonprofit organizations which have received tax exempt
status pursuant to § 501(c)(3) of the Internal Revenue Code,
provided current evidence of that status is submitted to the Municipal
Clerk, together with a certification that services of the organization
are provided at reduced rates to those who establish an inability
to pay existing charges, shall be exempted from paying a development
fee.
(5)
Federal, state, county and local governments shall
be exempted from paying a development fee.
(6)
The owner of a residential unit who rebuilds when
the owner's existing dwelling unit was destroyed due to fire, flood
or other natural disaster shall be exempt from paying a development
fee.
A.
Imposed fees.
(1)
Within all zoning districts, nonresidential developers,
except for developers of the types of development specifically exempted,
shall pay a fee equal to 2.5% of the equalized assessed value of the
land and improvements for all new nonresidential construction on an
unimproved lot or lots.
(2)
Nonresidential developers, except for developers of
the types of development specifically exempted, shall also pay a fee
equal to 2.5% of the increase in equalized assessed value resulting
from any additions to existing structures to be used for nonresidential
purposes.
(3)
Development fees shall be imposed and collected when
an existing structure is demolished and replaced. The development
fee of 2.5% shall be calculated on the difference between the equalized
assessed value of the preexisting land and improvement and the equalized
assessed value of the newly improved structure, i.e., land and improvement,
at the time the final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
B.
Eligible exactions, ineligible exactions and exemptions
for nonresidential development.
(1)
The nonresidential portion of a mixed-use inclusionary
or market-rate development shall be subject to the development fee
of 2.5%, unless otherwise exempted below.
(2)
The fee of 2.5%shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within existing
footprint, reconstruction, renovations and repairs.
(3)
Nonresidential developments shall be exempt from payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46, as specified in the Form N-RDF,
"State of New Jersey Nonresidential Development Certification/Exemption,"
form. Any exemption claimed by a developer shall be substantiated
by that developer.
(4)
A developer of a nonresidential development exempted
from the nonresidential development fee pursuant to P.L. 2008, c.
46 shall be subject to it at such time the basis for the exemption
no longer applies and shall make the payment of the nonresidential
development fee, in that event, within three years after that event
or after the issuance of the final certificate of occupancy of the
nonresidential development, whichever is later.
(5)
If a property which was exempted from the collection
of a nonresidential development fee thereafter ceases to be exempt
from property taxation, the owner of the property shall remit the
fees required pursuant to this section within 45 days of the termination
of the property tax exemption. Unpaid nonresidential development fees
under these circumstances may be enforceable by the Township of Pittsgrove
as a lien against the real property of the owner.
A.
Upon the granting of a preliminary, final or other
applicable approval for a development, the applicable approving authority
shall direct its staff to notify the Township's Construction Official
responsible for the issuance of a building permit.
B.
For nonresidential developments only, the developer
shall also be provided with a copy of Form N-RDF, "State of New Jersey
Nonresidential Development Certification/Exemption," to be completed
as per the instructions provided. The developer of a nonresidential
development shall complete Form N-RDF as per the instructions provided.
The Construction Official shall verify the information submitted by
the nonresidential developer as per the instructions provided in the
Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated
and final assessments as per the instructions provided in Form N-RDF.
C.
The Construction Official responsible for the issuance
of a building permit shall notify the local Tax Assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
D.
Within 90 days of receipt of that notice, the municipal
Tax Assessor, based on the plans filed, shall provide an estimate
of the equalized assessed value of the development.
E.
The Construction Official responsible for the issuance
of a final certificate of occupancy shall notify the local assessor
of any and all requests for the scheduling of a final inspection on
property which is subject to a development fee.
F.
Within 10 business days of a request for the scheduling
of a final inspection, the municipal assessor shall confirm or modify
the previously estimated equalized assessed value of the improvements
of the development, calculate the development fee and thereafter notify
the developer of the amount of the fee.
G.
Should the Township of Pittsgrove fail to determine
or notify the developer of the amount of the development fee within
10 business days of the request for final inspection, the developer
may estimate the amount due and pay that estimated amount consistent
with the dispute process set forth in subsection b. of § 37
of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
H.
Fifty percent of the development fee shall be collected
at the time of issuance of the building permit. The remaining portion
shall be collected at the issuance of the certificate of occupancy.
The developer shall be responsible for paying the difference between
the fee calculated at issuance of the building permit and that determined
at issuance of the certificate of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge residential development
fees imposed by filing a challenge with the County Board of Taxation.
Pending a review and determination by the Board, collected fees shall
be placed in an interest-bearing escrow account by the Township of
Pittsgrove. Appeals from a determination of the Board may be made
to the tax court in accordance with the provisions of the State Uniform
Tax Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after
the date of such determination. Interest earned on amounts escrowed
shall be credited to the prevailing party.
(2)
A developer may challenge nonresidential development
fees imposed by filing a challenge with the Director of the Division
of Taxation. Pending a review and determination by the Director, which
shall be made within 45 days of receipt of the challenge, collected
fees shall be placed in an interest-bearing escrow account by the
Township of Pittsgrove. Appeals from a determination of the Director
may be made to the tax court in accordance with the provisions of
the State Uniform Tax Procedure Law, N.J.S.A. 54:48-1 et seq., within
90 days after the date of such determination. Interest earned on amounts
escrowed shall be credited to the prevailing party.
A.
There is hereby created a separate, interest-bearing
housing trust fund to be maintained by the Township's Chief Financial
Officer for the purpose of depositing development fees collected from
residential and nonresidential developers and proceeds from the sale
of units with extinguished controls.
B.
The following additional funds shall be deposited
in the affordable housing trust fund and shall at all times be identifiable
by source and amount:
(1)
Payments in lieu of on-site construction of affordable
units;
(2)
Developer-contributed funds to make 10% of the affordable
entrances in a townhouse or other multistory attached development
accessible;
(3)
Rental income from municipally operated units;
(4)
Repayments from affordable housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of affordable units; and
(7)
Any other funds collected in connection with the Township
of Pittsgrove's affordable housing program.
C.
The Township of Pittsgrove shall provide COAH with
written authorization in the form of a three-party escrow agreement
between the municipality, the Township's banking institution and COAH
to permit COAH to direct the disbursement of the funds as provided
for in N.J.A.C. 5:97-8.13(b).
D.
All interest accrued in the housing trust fund shall
only be used on eligible affordable housing activities approved by
COAH or the Court.
A.
The expenditure of all funds shall conform to a spending
plan approved by COAH or the Court. Funds deposited in the housing
trust fund may be used for any activity approved by COAH or the Court
to address the Township of Pittsgrove's fair share obligation and
may be set up as a grant or revolving loan program. Such activities
include, but are not limited to: preservation or purchase of housing
for the purpose of maintaining or implementing affordability controls,
rehabilitation, new construction of affordable housing units and related
costs, accessory apartment, market to affordable or regional housing
partnership programs, conversion of existing nonresidential buildings
to create new affordable units, green building strategies designed
to be cost saving and in accordance with accepted national or state
standards, purchase of land for affordable housing, improvement of
land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the housing element and fair share plan, or
any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through
8.9 and specified in the approved spending plan.
B.
Funds shall not be expended to reimburse the Township
of Pittsgrove for past housing activities.
C.
At least 30% of all development fees collected and
interest earned shall be used to provide affordability assistance
to low- and moderate-income households in affordable units included
in the municipal fair share plan. One-third of the affordability assistance
portion of development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of median income
by region.
(1)
Affordability assistance programs may include down
payment assistance, security deposit assistance, low-interest loans,
rental assistance, assistance with homeowners' association or condominium
fees and special assessments, and assistance with emergency repairs.
(2)
Affordability assistance to households earning 30%
or less of median income may include buying down the cost of low-
or moderate-income units in the municipal fair share plan to make
them affordable to households earning 30% or less of median income.
(3)
Payments in lieu of constructing affordable units
on-site and funds from the sale of units with extinguished controls
shall be exempt from the affordability assistance requirement.
D.
The Township of Pittsgrove may contract with a private
or public entity to administer any part of its housing element and
fair share plan, including the requirement for affordability assistance,
in accordance with N.J.A.C. 5:96-18.
E.
No more than 20% of all revenues collected from development
fees may be expended on administration, including, but not limited
to, salaries and benefits for municipal employees or consultant fees
necessary to develop or implement a new construction program, a housing
element and fair share plan, and/or an affirmative marketing program.
In the case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Legal or other fees
related to litigation opposing affordable housing sites or objecting
to the Council's regulations and/or action are not eligible uses of
the affordable housing trust fund.
The Township of Pittsgrove shall complete and
return to COAH all monitoring forms included in the annual monitoring
report related to the collection of development fees from residential
and nonresidential developers, payments in lieu of constructing affordable
units on site, and funds from the sale of units with extinguished
controls, barrier-free escrow funds, rental income, repayments from
affordable housing program loans, and any other funds collected in
connection with the Township of Pittsgrove's housing program, as well
as to the expenditure of revenues and implementation of the plan approved
by the Court. All monitoring reports shall be completed on forms designed
by COAH.
The ability of the Township of Pittsgrove to
impose, collect and expend development fees shall expire with its
substantive certification or judgment of compliance unless the Township
of Pittsgrove has filed an adopted housing element and fair share
plan with COAH, has petitioned COAH for substantive certification
or has brought a declaratory relief action in Court pursuant to N.J.S.A.
52:27D-313 and has received approval of its development fee ordinance
by COAH or a Court. If the Township of Pittsgrove fails to renew its
ability to impose and collect development fees prior to the expiration
of its substantive certification or judgment of compliance, it may
be subject to forfeiture of any or all funds remaining within its
municipal trust fund. My funds so forfeited shall be deposited into
the New Jersey Affordable Housing Trust Fund, established pursuant
to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The
Township of Pittsgrove shall not impose a residential development
fee on a development that receives preliminary or final site plan
approval after the expiration of its substantive certification or
its judgment of compliance, nor shall the Township of Pittsgrove retroactively
impose a development fee on such a development. The Township of Pittsgrove
shall not expend development fees after the expiration of its substantive
certification or its judgment of compliance.
