[Amended 12-14-2009 by Ord. No. 2009-21]
This section of the Old Bridge Township Code sets forth regulations
regarding the low- and moderate-income housing units in the Old Bridge
Township consistent with the provisions known as the "Substantive
Rules of the New Jersey Council on Affordable Housing," N.J.A.C. 5:97
et seq.; the Uniform Housing Affordability Controls, 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.
These regulations are also intended to provide assurances that low-
and moderate-income units (the "affordable units") are created with
controls on affordability over time and that low- and moderate-income
people occupy these units. These regulations shall apply except where
inconsistent with applicable law.
[Amended 6-25-2007 by Ord. No. 2007-10; 12-14-2009 by Ord. No.
2009-21; 10-14-2016 by Ord. No. 2016-24]
A.
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
(1)
(2)
(3)
AGENCY
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED-LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
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. The following terms when used in this section shall
have the meanings given in this Subsection:
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 designated by the Township to administer affordable
units in accordance with this section, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
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 new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, 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, 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 development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a one-hundred-percent
affordable housing 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 and
approved for crediting by the Court 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 wherein the unit is situated
are 62 years of age or older; or
At least 80% of the units are occupied by one person who is
55 years of age 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 structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boardinghomes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A facility that is 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, as established by 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
requires 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
included in a proposed development, including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
A development containing both affordable units and market-rate
units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or 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 and 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 housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
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 duly adopted regional income limits published annually
by COAH or a successor entity.
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 an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as 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 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income by household size for
the applicable housing region.
[Amended 7-20-2017 by Ord. No. 2017-16]
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 purposes of a rehabilitation
program.
B.
Applicability.
[Amended 7-20-2017 by Ord. No. 2017-16]
(1)
The provisions of this section shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Old Bridge
pursuant to the Township's most recently adopted Housing Element and
Fair Share Plan.
(2)
In addition, any property in the Township of Old Bridge that is currently
zoned for nonresidential uses and that is subsequently rezoned for
residential purposes or receives a zoning change or a use variance
to permit residential development, or receives a zoning change or
a density variance to permit higher density residential development,
and provided such residential development provides a sufficient compensatory
benefit in terms of the density of development permitted, shall provide
an affordable housing setaside of 15% if the affordable units will
be for rent and 20% if the affordable units will be for sale. The
determination of a "sufficient compensatory benefit" shall be made
by the reviewing authority based upon prevailing legislation and/or
case law.
(3)
Any affordable housing development in the Township of Old Bridge
comprised entirely of affordable housing units, i.e. 100% affordable,
shall be subject to UHAC in regard to bedroom and income distributions
as well as the Fair Housing Act with respect to the 13% very-low-income
requirement, even if the affordable housing development is funded
with low-income housing tax credit financing.
(4)
The following sections shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
C.
Monitoring and reporting.
[Added 7-20-2017 by Ord.
No. 2017-16]
(1)
On the first anniversary of the entry of the order granting Old Bridge
a Final Judgment of Compliance and Repose, and every anniversary thereafter
through the end of the repose period, the Township shall provide annual
reporting of its Affordable Housing Trust Fund activity to the New
Jersey Department of Community Affairs, Council on Affordable Housing
or Local Government Services, or other entity designated by the State
of New Jersey, with copies provided to the Fair Share Housing Center
and the Intervenors in IMO Application of the Township of Old Bridge,
Docket No.: MID-L-3997-15, and posted on the municipal website, using
forms developed for this purpose by the New Jersey Department of Community
Affairs, Council on Affordable Housing or Local Government Services.
The reporting shall include an accounting of all Affordable Housing
Trust Fund activity, including the source and amount of funds collected
and the amount of and purpose for which any funds have been expended.
(2)
On the first anniversary of the entry of the order granting Old Bridge
a Final Judgment of Compliance and Repose, and every anniversary thereafter
through the end of the repose period, the Township shall provide annual
reporting of the status of all affordable housing activity within
the municipality through posting on the municipal website with copies
provided to the Fair Share Housing Center and the Intervenors in IMO
Application of the Township of Old Bridge, Docket No.: MID-L-3997-15,
using forms previously developed for this purpose by the Council on
Affordable Housing or any other forms endorsed by the Court-appointed
Special Master and Fair Share Housing Center.
(3)
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Township shall post
on its municipal website, with copies provided to the Fair Share Housing
Center and the Intervenors in IMO Application of the Township of Old
Bridge, Docket No.: MID-L-3997-15, a status report as to its implementation
of its Plan and an analysis of whether any unbuilt sites or unfulfilled
mechanisms continue to present a realistic opportunity. Such posting
shall invite any interested party to submit comments to the municipality,
with copies provided to the Fair Share Housing Center and the Intervenors
in IMO Application of the Township of Old Bridge, Docket No.: MID-L-3997-15,
regarding whether any sites no longer present a realistic opportunity
and should be replaced. Any interested party may by motion request
a hearing before the Court regarding these issues.
(4)
For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the entry of the order granting Old Bridge a Final Judgment of Compliance
and Repose, and every third year thereafter, the Township will post
on its municipal website, with copies provided to the Fair Share Housing
Center and the Intervenors in IMO Application of the Township of Old
Bridge, Docket No.: MID-L-3997-15, a status report as to its satisfaction
of its very-low-income requirements, including the family very-low-income
requirements referenced herein. Such posting shall invite any interested
party to submit comments to the municipality, with copies provided
to the Fair Share Housing Center and the Intervenors in IMO Application
of the Township of Old Bridge, Docket No.: MID-L-3997-15, on the issue
of whether the municipality has complied with its very-low-income
housing obligation.
D.
Alternative living arrangements.
(1)
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
(2)
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
(3)
The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
E.
Phasing schedule for inclusionary zoning. In inclusionary developments
the following schedule shall be followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25
|
0%
|
|
25+1
|
10%
|
|
50
|
50%
|
|
75
|
75%
|
|
90
|
100%
|
F.
New construction.
(1)
Low/Moderate split and bedroom distribution of affordable housing
units.
(a)
The fair share obligation shall be divided equally between low-
and moderate-income units, except that where there is an odd number
of affordable housing units, the extra unit shall be a low-income
unit. At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of the regional
median income by household size, unless a higher percentage than 13%
is specified for a particular zone). The very-low-income units shall
be counted as part of the required number of low-income units within
the development.
[Amended 7-20-2017 by Ord. No. 2017-16]
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units or
very-low-income units.
[Amended 7-20-2017 by Ord. No. 2017-16]
(c)
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.
(d)
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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
(2)
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, and the following.
(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;
and
[2]
An adaptable kitchen on the first floor; and
[3]
An interior accessible route of travel on the first floor; and
[4]
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
[5]
If not all of the foregoing requirements in F(2)(b)[1] through
[4] can be satisfied, then an interior accessible route of travel
must be provided between stories within an individual unit, but if
all of the terms of F(2)(b)[1] through [4] above have been satisfied,
then an interior accessible route of travel shall not be required
between stories within an individual unit; 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 of Old Bridge 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 Old Bridge'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 F(2)(b)[6][b]
above shall be used by the Township of Old Bridge for the sole purpose
of making the adaptable entrance of an 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 to the Construction Official of the
Township of Old Bridge for the conversion of adaptable to accessible
entrances.
[e]
Once the Construction Official has determined that
the design plan to convert the unit entrances from adaptable to accessible
meets the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7,
and that the cost estimate of such conversion is reasonable, payment
shall be made to the Township's Affordable Housing Trust Fund in care
of the Township Treasurer, who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriately earmarked.
[7]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is "site impracticable" to
meet the requirements. Determinations of site impracticability shall
be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
(4)
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, utilizing the regional income limits established by COAH
or a successor entity.
(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 rental 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, provided that at least
13% of all low- and moderate-income rental units shall be affordable
to very-low-income households, earning 30% or less of the regional
median income by household size, unless a higher percentage than 13%
is specified for a particular zone.
[Amended 7-20-2017 by Ord. No. 2017-16]
(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 sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(e)
In determining the initial sales prices and rent levels for
compliance with the affordability average requirements for restricted
units other than assisted-living facilities and age-restricted developments,
the following standards shall be used:
[1]
A studio 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 sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted-living facilities and age-restricted developments, the following
standards shall be used:
(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's 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
size household, including an allowance for tenant-paid utilities,
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 permitted 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.
G.
Utilities.
(1)
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
(2)
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by DCA for its Section 8 program.
H.
Occupancy standards. In referring certified households to specific
restricted units, the Administrative Agent shall, to the extent feasible
and without causing an undue delay in the occupancy of a unit, strive
to:
I.
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, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this section for a period of at least 30 years, unless a period
of 50 years is specified for the particular zone, until the Township
of Old Bridge takes action to release the unit from such requirements;
prior to such action, a restricted ownership unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
[Amended 7-20-2017 by Ord. No. 2017-16]
(2)
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(3)
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.
(4)
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 section, 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.
(5)
The affordability controls set forth in this section shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
(6)
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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
J.
Price restrictions for restricted ownership units, homeowner's 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 master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner's association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
(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 anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See Subsection M.
K.
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, upon approval by the Township Council, and subject to the Court's
approval, permit moderate-income purchasers to buy low-income units
in housing markets if the Administrative Agent determines that there
is 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 and
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 another
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's association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
L.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
(2)
With the exception of first purchase money mortgages, 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 the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
M.
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.
N.
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, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this section for a period of at least 30 years, unless a period
of 50 years is specified for the particular zone, until the Township
of Old Bridge takes action to release the unit from such requirements.
Prior to such action, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
[Amended 7-20-2017 by Ord. No. 2017-16]
(2)
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 Middlesex. A copy of the filed document shall be
provided to the Administrative Agent within 30 days of the receipt
of a certificate of occupancy.
(3)
A restricted rental unit shall remain subject to the affordability
controls of this section despite the occurrence of any of the following
events:
O.
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 section.
(4)
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this section.
P.
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 household,
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 exist:
(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 reliable anticipated 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.
(3)
The applicant shall file documentation sufficient to establish the
existence of the circumstances in Subsection A(1) through (2)(e) above
with the Administrative Agent, who shall counsel the household on
budgeting.
Q.
Municipal Housing Liaison.
(1)
The Township of Old Bridge shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for administering
the affordable housing program, including affordability controls,
the Affirmative Marketing Plan, monitoring and reporting, and, where
applicable, supervising any contracted Administrative Agent. The Township
of Old Bridge shall adopt an ordinance creating the position of Municipal
Housing Liaison. The Township of Old Bridge shall adopt a resolution
appointing a Municipal Housing Liaison. 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 duly qualified
through a training program sponsored by Affordable Housing Professionals
of New Jersey before assuming the duties of Municipal Housing Liaison.
(2)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Old Bridge, including the following responsibilities, which may
not be contracted out to the Administrative Agent:
(a)
Serving as the Township of Old Bridge'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 Township
of Old Bridge's Fair Share Plan;
(c)
Compiling, verifying and submitting annual monitoring reports
as may be required by the Court;
(d)
Coordinating meetings with affordable housing providers and
Administrative Agents, as needed; and
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing at least
annually and more often as needed.
(3)
The Township of Old Bridge shall designate one or more Administrative
Agent(s) to administer newly constructed affordable units in accordance
with UHAC. An Operating Manual for each affordable housing program
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 Manual(s) shall be available for public inspection in
the office of the Township Clerk, in the office of the Municipal Housing
Liaison, and in the office(s) of the Administrative Agent(s). The
Municipal Housing Liaison shall supervise the contracting Administrative
Agent(s).
R.
Administrative Agent. The Administrative Agent shall be an independent
entity serving under contract to and reporting to the municipality.
The fees of the Administrative Agent shall be paid by the owners of
the affordable units for which the services of the Administrative
Agent are required. The Administrative Agent shall perform the duties
and responsibilities of an Administrative Agent as set forth in UHAC,
including those set forth in Sections 5:80-26.14, 16 and 18 thereof,
which includes:
(1)
Affirmative marketing:
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township of Old Bridge and the provisions of N.J.A.C. 5:80-26.15;
and
(b)
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.
(2)
Household certification:
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
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;
(c)
Providing written notification to each applicant as to the determination
of eligibility or non-eligibility;
(d)
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.;
(e)
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
(f)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township of Old Bridge when referring households
for certification to affordable units.
(3)
Affordability controls:
(a)
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;
(b)
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;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Middlesex
County Register of Deeds or Middlesex County Clerk's office after
the termination of the affordability controls for each restricted
unit;
(d)
Communicating with lenders regarding foreclosures; and
(e)
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)
Resales and rerentals:
(a)
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or rerental; and
(b)
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.
(5)
Processing requests from unit owners:
(a)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this section;
(b)
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 depreciated cost of central air-conditioning
systems;
(c)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(d)
Making determinations on requests by owners of restricted units
for hardship waivers.
(6)
Enforcement:
(a)
Securing annually from the municipality a list 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;
(b)
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;
(c)
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 or other charges can be made;
(d)
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;
(e)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
(f)
Creating and publishing a written operating manual for each
affordable housing program administered by the Administrative Agent,
to be approved by the Township Council and the Court, setting forth
procedures for administering the affordability controls.
(7)
Additional responsibilities:
(a)
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)
The Administrative Agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet any monitoring
requirements and deadlines imposed by the Court.
(c)
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
S.
Affirmative marketing requirements.
(1)
The Township of Old Bridge shall adopt by resolution an Affirmative
Marketing Plan, subject to approval of the Court, that is compliant
with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
(2)
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 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 marketing activities toward
Housing Region 3 and is required to be followed throughout the period
of restriction.
(3)
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 3, comprised
of Middlesex, Somerset and Hunterdon Counties.
(4)
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The Administrative Agent designated by
the Township of Old Bridge shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
(5)
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.
(6)
The Affirmative Marketing Plan 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.
(7)
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
(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.
(9)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
T.
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, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
(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(s) 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
adjudged 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 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
[2]
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Old Bridge Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
[3]
In the case of an owner who has rented a 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 that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such 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- or moderate-income unit.
[1]
The 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 his right
to possession terminated as well as his title conveyed pursuant to
the Sheriff's sale.
[2]
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 the full 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.
[3]
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.
[4]
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.
[5]
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.
[6]
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.
U.
Appeals. Appeals from all decisions of an Administrative Agent appointed
pursuant to this section shall be filed in writing with a court of
competent jurisdiction.
[Amended 2-21-1995 by Ord. No. 4-95; 4-14-1997 by Ord. No. 5-97; 3-27-2000 by Ord. No. 07-00; 10-6-2008 by Ord. No. 2008-24; 1-5-2009 by Ord. No. 2009-01; 4-6-2009 by Ord. No. 2009-06]
A.
Purpose.
[Amended 7-20-2017 by Ord. No. 2017-16]
|
NOTE: On July 7, 2015, the Township of Old Bridge filed a Complaint
for a Declaratory Judgment with the Superior Court in Middlesex County
seeking a Judgment of Compliance as to the constitutionality of its
Third Round Housing Element and Fair Share Plan. In light of this,
all references to the jurisdiction of the Council on Affordable Housing,
Council or COAH shall henceforth be interpreted as referring to the
jurisdiction of the Superior Court, and all references to the third
round Substantive Certification shall be interpreted as to the Court's
third round final Judgment of Compliance and Repose.
|
(1)
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 (the Act), N.J.S.A.
52:27D-301 et seq., and the State Constitution, subject to the Council
on Affordable Housing's (COAH's) adoption of rules.
(2)
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and
the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D
through 40:55D-8.7),[1] 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 a COAH-approved
spending plan may retain fees collected from nonresidential development.
[1]
Editor's Note: Pursuant to the New Jersey Economic Stimulus
Act of 2009, the Nonresidential Development Fee Act, which was signed
into law on 7-17-2008, was suspended. For applicable development fees,
consult the Township offices.
(3)
This section establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, Sections 8 and 32 to 38. Fees
collected pursuant to this section shall be used for the sole purpose
of providing low- and moderate-income housing. This section shall
be interpreted within the framework of COAH's rules on development
fees, codified at N.J.A.C 5:97-8.
C.
AFFORDABLE HOUSING DEVELOPMENT
COAH or THE COUNCIL
DEVELOPMENT FEE
DEVELOPER
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
Definitions. The following terms, as used in this section, 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
consideration in the state.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:97-8.3.
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.
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 Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 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 with making optimum use of existing infrastructure and community
services.
D.
Residential development fees.
(1)
Imposed fees.
(a)
Within the Township of Old Bridge district(s), 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 that no increased density is permitted.
(b)
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
may be required to pay a development fee of 6% of the equalized assessed
value for each additional unit that 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 that zoning
on the site has not changed during the two-year period preceding the
filing of such a variance application.
(2)
Eligible exactions, ineligible exactions and exemptions for residential
development.
(a)
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.
(b)
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.
(c)
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. In instances where the existing structure is an
owner-occupied residential structure prior and subsequent to a change
to a more intense use, demolition and replacement or expansion, the
developer shall be exempt from paying any development fee.
[Amended 9-9-2019 by Ord.
No. 2019-14]
(d)
Developers of residential structures demolished and replaced as a result of a natural disaster shall be exempt from paying a development fee, and developers of a single, owner-occupied residential structure where the owner will continue to own and occupy the residential structure for a minimum of one year from the date of the issuance of a certificate of occupancy for said residential structure shall also be exempt from paying a development fee. In he event that the developer fails to own and occupy the residential structure for the one-year period stated herein, then the developer shall be assessed a development fee at the time of transfer of the residential structure. The payment of the development fee shall be also be a prerequisite to the issuance of a certificate of approval required under § 235-16 of the Township Code.
[Amended 9-9-2019 by Ord.
No. 2019-14]
E.
Nonresidential development fees.
(1)
Imposed fees.
(a)
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.
(b)
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.
(c)
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.
(2)
Eligible exactions, ineligible exactions and exemption for nonresidential
development.
(a)
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.
(b)
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.
(c)
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46, as specified in Form N-RDF,
"State of New Jersey Nonresidential Development Certification/Exemption"
form. Any exemption claimed by a developer shall be substantiated
by that developer.
(d)
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.
(e)
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 Old Bridge as a lien against
the real property of the owner.
F.
Collection procedures.
(1)
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 construction official responsible for the
issuance of a building permit.
(2)
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF, "State of New Jersey Non- Residential
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 Form N-RDF. The Tax Assessor shall
verify exemptions and prepare estimated and final assessments as per
the instructions provided in Form N-RDF.
(3)
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.
(4)
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.
(5)
The construction official responsible for the issuance of a final
certificate of occupancy notifies the local Assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
(6)
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.
(7)
Should the Township of Old Bridge 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 Section 37 of P.L. 2008, c. 46
(N.J.S.A. 40:55D-8.6).
(8)
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 building permit and that determined at issuance of the certificate
of occupancy.
(9)
Appeal of development fees.
(a)
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 Old Bridge.
Appeals from a determination of the Board may be made to the Tax Court
in accordance with the provisions of the State Tax Uniform 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.
(b)
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
Old Bridge. Appeals from a determination of the Director may be made
to the Tax Court in accordance with the provisions of the State Tax
Uniform 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.
G.
Affordable Housing Trust Fund.
(1)
There is hereby created a separate, interest-bearing housing trust
fund to be maintained by the 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.
(2)
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(a)
Payments in lieu of on-site construction of affordable units;
(b)
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(c)
Rental income from municipally operated units;
(d)
Repayments from affordable housing program loans;
(e)
Recapture funds;
(f)
Proceeds from the sale of affordable units; and
(g)
Any other funds collected in connection with the Township of
Old Bridge's affordable housing program.
(3)
Within seven days from the opening of the trust fund account, the
Township of Old Bridge shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
Amboy National Bank, 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).
(4)
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH.
H.
Use of funds.
(1)
The expenditure of all funds shall conform to a spending plan approved
by COAH. Funds deposited in the housing trust fund may be used for
any activity approved by COAH to address the Township of Old Bridge'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
5:97-8.9 and specified in the approved spending plan.
(2)
Funds shall not be expended to reimburse the Township of Old Bridge
for past housing activities.
(3)
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.
(a)
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.
(b)
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.
(c)
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 requirements.
(4)
The Township of Old Bridge 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.
(5)
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.
I.
Monitoring. The Township of Old Bridge shall complete and return
to COAH all monitoring forms included in monitoring requirements related
to the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
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 Old Bridge's housing program, as well as to the expenditure of
revenues and implementation of the plan certified by COAH. All monitoring
reports shall be completed on forms designed by COAH.
J.
Ongoing collection of fees.
(1)
The ability for the Township of Old Bridge to impose, collect and
expend development fees shall expire with its substantive certification
unless the Township of Old Bridge has filed an adopted Housing Element
and Fair Share Plan with COAH, has petitioned for substantive certification,
and has received COAH's approval of its development fee ordinance.
If the Township of Old Bridge fails to renew its ability to impose
and collect development fees prior to the expiration of substantive
certification, it may be subject to forfeiture of any or all funds
remaining within its municipal trust fund. Any funds so forfeited
shall be deposited into the New Jersey Affordable Housing Trust Fund
established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320). The Township of Old Bridge 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 judgment of compliance, nor shall the Township of Old Bridge retroactively
impose a development fee on such a development. The Township of Old
Bridge shall not expend development fees after the expiration of its
substantive certification or judgment of compliance.
[1]
Editor's Note: Former § 250-67, Phasing, was repealed
12-14-2009 by Ord. No. 2009-21.
[Added 3-1-2010 by Ord. No. 2010-06]
A.
Purpose. The purpose of this section is to create the administrative
mechanisms needed for the execution of the Township of Old Bridge's
responsibility to assist in the provision of affordable housing pursuant
to the Fair Housing Act of 1985.
B.
ADMINISTRATIVE AGENT
MUNICIPAL HOUSING LIAISON
Definitions. As used in this section, the following terms shall have
the meanings indicated:
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Township of Old Bridge to ensure that the restricted units under
administration are affirmatively marketed and sold or rented, as applicable,
only to low- and moderate-income households.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Township of Old Bridge.
C.
Establishment of position; responsibilities; compensation; powers
and duties.
(1)
Establishment of position of Municipal Housing Liaison. There is
hereby established the position of Municipal Housing Liaison for the
Township of Old Bridge.
(2)
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.
(3)
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township of Old Bridge, including the following responsibilities which may not be contracted out, exclusive of Subsection C(3)(f), which may be contracted out:
(a)
Serving as the Township of Old Bridge's primary point for all
inquiries from the state, affordable housing providers, administrative
agents, and interested households.
(b)
Monitoring the status of all restricted units in the Township
of Old Bridge'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;
(4)
Subject to approval by COAH, the Township of Old Bridge 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 Township of Old Bridge, except for those responsibilities which may not be contracted out pursuant to Subsection C(3) above. If the Township of Old Bridge 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.
(5)
Compensation. Compensation shall be fixed by the governing body at
the time of the appointment of the Municipal Housing Liaison.
(6)
Administrative powers and duties assigned to the Municipal Housing
Liaison which may be delegated to an approved administrative agent
as part of a contract.
(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 Township of Old Bridge 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 Appendixes
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 Township of Old Bridge 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 acknowledgment 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 DCA;
[6]
Creating and publishing a written operating manual, as approved
by COAH, setting forth procedures for administering such affordability
controls; and
[7]
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.
[1]
Editor's Note: Former § 250-68, Special design standards,
was repealed 12-14-2009 by Ord. No. 2009-21.
[1]
Editor's Note: Former § 250-69, Other regulations,
was repealed 12-14-2009 by Ord. No. 2009-21.
