[Adopted 12-15-2008 by Ord. No. 08-30]
The purpose of this article is to create the
administrative mechanisms needed for the execution of the Township
of North Brunswick's responsibility to assist in the provision of
affordable housing pursuant to the Fair Housing Act of 1985.
As used in this article, the following terms
shall have the meanings indicated:
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Township of North Brunswick 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 Mayor and Township Council with
the responsibility for oversight and administration of the affordable
housing program for the Township of North Brunswick.
A.Â
Establishment of position of Municipal Housing Liaison.
There is hereby established the position of Municipal Housing Liaison
for the Township of North Brunswick.
B.Â
Subject to the approval of the Council on Affordable
Housing (COAH), the Municipal Housing Liaison shall be appointed by
the Mayor with the advice and consent of the Township Council and
may be a full- or part-time municipal employee.
C.Â
The Municipal Housing Liaison shall be responsible
for oversight and administration of the affordable housing program
for the Township of North Brunswick, including the following responsibilities
which may not be contracted out, exclusive of item C(6) which may
be contracted out:
(1)Â
Serving as the Township of North Brunswick's primary
point of contact for all inquiries from the state, affordable housing
providers, administrative agents, and interested households;
(2)Â
Monitoring the status of all restricted units in the
Township of North Brunswick's Fair Share Plan;
(3)Â
Compiling, verifying, and submitting annual reports
as required by COAH;
(4)Â
Coordinating meetings with affordable housing providers
and administrative agents, as applicable;
(5)Â
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
D.Â
Subject to approval by COAH, the Township of North Brunswick may contract with or authorize a consultant, authority, government or any agency charged by the Township Council, which entity shall have the responsibility of administering the affordable housing program of the Township of North Brunswick, except for those responsibilities which may not be contracted out pursuant to Subsection C above. If the Township of North Brunswick 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.
E.Â
Compensation. Compensation shall be fixed by the Township
Council at the time of the appointment of the Municipal Housing Liaison.
F.Â
Administrative powers and duties assigned to the Municipal
Housing Liaison.
(1)Â
Affirmative marketing.
(a)Â
Conducting an outreach process to insure affirmative
marketing of affordable housing units in accordance with the affirmative
marketing plan of the Township of North Brunswick and the provisions
of N.J.A.C. 5:80-26.15; and
(b)Â
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)Â
Household certification.
(a)Â
Soliciting, scheduling, conducting and following
up on interviews with interested households;
(b)Â
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)Â
Providing written notification to each applicant
as to the determination of eligibility or noneligibility;
(d)Â
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)Â
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)Â
Employing the random selection process as provided
in the affirmative marketing plan of the Township of North Brunswick
when referring households for certification to affordable units.
(3)Â
Affordability controls.
(a)Â
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)Â
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)Â
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;
(d)Â
Communicating with lenders regarding foreclosures;
and
(e)Â
Ensuring the issuance of continuing certificates
of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)Â
Resale and rental.
(a)Â
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
(b)Â
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)Â
Processing requests from unit owners.
(a)Â
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;
(b)Â
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
(c)Â
Processing requests and making determinations
on requests by owners of restricted units for hardship waivers.
(6)Â
Enforcement.
(a)Â
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;
(b)Â
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)Â
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;
(d)Â
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)Â
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;
(f)Â
Creating and publishing a written operating
manual, as approved by COAH, setting forth procedures for administering
such affordability controls; and
(g)Â
Providing annual reports to COAH as required.
(7)Â
The administrative agent shall have authority to take
all actions necessary and appropriate to carry out its responsibilities
hereunder.
[Added 7-25-2016 by Ord.
No. 16-13]
The following terms when used in this article shall have the
meanings given in this section:
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 for a specific project in accordance with this article, 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, 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 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
United States Department of Housing and Urban Development as "housing
for older persons," as defined in Section 807(b)(2) of the Fair Housing
Act, 42 U.S.C. § 3607.
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 boarding homes 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.
The master plan element adopted by the Planning Board on
June 23, 2016, and endorsed by the Township Council on July 25, 2016,
in accordance with the settlement agreement for a declaratory judgment;
Docket No. MID-L-3565-15.
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 Region III, 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.
The affirmative marketing plan adopted by resolution of the
Township Council on July 25, 2016, to assure that all affordable units
are affirmatively marketed to low- and moderate-income households;
said NBAMP providing minimum guidelines that must be incorporated
into project-specific affirmative marketing plans (PSAMP) developed
and approved for each specific affordable housing project in the Township.
The agency created pursuant to the 1986 consent order to
carry out the powers and responsibilities of the Agency relative to
the sale and resale of affordable housing units located in the Governor
Pointe condominium complexes.
An affirmative marketing plan developed by the administrative
agent for a specific affordable housing project; said PSAMP incorporating
at a minimum all requirements of the North Brunswick Affirmative Marketing
Plan (NBAMP).
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 for the applicable housing
region.
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.
A.Â
The provisions of this article 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 North Brunswick pursuant to the Township's most recently adopted HEFSP, with the exception of specific projects that are exempted from requirements identified herein in § 195-42.
B.Â
In addition, any property in the Township of North Brunswick 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 set-aside 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.
A.Â
The Uniform Housing Affordability Controls (UHAC), originally adopted
October 1, 2001, and amended December 20, 2004, were designed to implement
the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.) to assure
that low- and moderate-income units created under the Act are occupied
by low- and moderate-income households for an appropriate period of
time. While UHAC applies to the vast majority of restricted units,
N.J.A.C. 5:80-26.1 states that UHAC does not apply to units qualifying
for federal low-income housing tax credits.
B.Â
The exception noted above results in both the North Brunswick Senior
Apartments building and the North Brunswick Crescent project being
exempt from UHAC requirements, as federal low-income housing tax credits
are utilized in the financing of these projects. As a result, these
two projects are exempt from the UHAC regulations, and are only required
to meet regulations in the NBAMP that are identical to UHAC regulations
if the NBAMP specifically states that a particular regulation applies
to these two developments.
C.Â
There is one additional project in the Township that will be governed by different affirmative marketing regulations than those proposed herein. There are 200 affordable units located in the Governor's Pointe I and Governor's Pointe II condominium complexes. The North Brunswick Council created the North Brunswick Affordable Housing Agency to enforce the affordability controls for these units in 1987. The affordability controls on these units expire in either 2018 or 2019, depending upon the date of initial occupancy. Since 1988, the North Brunswick Affordable Housing Agency has been regulating the sale and resale of these units, and the income eligibility determinations of applicants. With only two years or less remaining in the control period of these units, these units will continue to be regulated by the North Brunswick Affordable Housing Agency in accordance with Chapter 195, §§ 195-1 through 195-39. Affordable units incorporated in the June 23, 2016, Housing Element and Fair Share Plan shall be regulated in accordance with Chapter 195, §§ 195-40 through 195-60.
A.Â
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:
B.Â
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.
C.Â
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.
With the exception of the specific developments identified in
the Township's settlement agreement and HEFSP adopted on June
23, 2016, inclusionary developments shall comply with the following
schedule for production of affordable units:
|
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%
|
A.Â
For all future affordable housing units that are not specifically
identified in the Township's Settlement Agreement and Township's
second round HEFSP, approved by COAH on October 1, 2003, or the third
round HEFSP, approved by the Planning Board on June 23, 2016, the
following low/moderate split and bedroom distribution of affordable
housing units shall apply:
(1)Â
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 10% of all restricted rental units shall be very-low-income
units (affordable to a household 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.
(2)Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3)Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)Â
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)Â
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.
B.Â
Accessibility requirements. 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:
(1)Â
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:
(a)Â
An adaptable toilet and bathing facility on the first floor;
and
(b)Â
An adaptable kitchen on the first floor; and
(c)Â
An interior accessible route of travel on the first floor; and
(d)Â
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
(e)Â
If not all of the foregoing requirements in Subsection B(1)(a) through (d) 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 Subsection B(1)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)Â
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 North Brunswick has collected funds from
the developer sufficient to make 10% of the adaptable entrances in
the development accessible:
[1]Â
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.
[2]Â
To this end, the builder of restricted units shall deposit funds
within the Township of North Brunswick's Affordable Housing Trust
Fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]Â
The funds deposited under Subsection B(1)(f)[2] above shall be used by the Township of North Brunswick 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.
[4]Â
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Township
of North Brunswick for the conversion of adaptable to accessible entrances.
[5]Â
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'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.
[6]Â
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.
D.Â
Maximum rents and sales prices.
(1)Â
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.
(2)Â
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.
(3)Â
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. With the exception of the specific developments
identified in the Township's Settlement Agreement and HEFSP adopted
on June 23, 2016, at least 10% of all low- and moderate-income rental
units shall be affordable to very-low-income households, earning 30%
or less of the regional median household income.
(4)Â
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.
(5)Â
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:
(a)Â
A studio shall be affordable to a one-person household;
(b)Â
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)Â
A two-bedroom unit shall be affordable to a three-person household;
(d)Â
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)Â
A four-bedroom unit shall be affordable to a six-person household.
(6)Â
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:
(7)Â
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.
(8)Â
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.
(9)Â
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 Region 3. In no event shall the maximum resale price established
by the administrative agent be lower than the last recorded purchase
price.
(10)Â
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.
A.Â
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.Â
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.
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:
A.Â
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 article for a period of at least 30 years, until North Brunswick
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.
B.Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.Â
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 non-restricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.Â
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.
E.Â
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.
F.Â
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.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.Â
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent and by the Municipal Housing
Liaison.
B.Â
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.Â
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D.Â
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 § 195-52.
A.Â
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.
B.Â
Notwithstanding the foregoing, however, the administrative agent
may, upon approval by the Municipal Housing Liaison, and subject to
the court's approval, permit moderate-income purchasers to buy
low-income units in housing markets if the Municipal Housing Liaison
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.
C.Â
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.
D.Â
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 eligible monthly income.
A.Â
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.
B.Â
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).
A.Â
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.
B.Â
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.
A.Â
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 article for a period of at least 30 years, until North Brunswick
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.
B.Â
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 Municipal Housing Liaison within 30 days of the receipt
of a Certificate of Occupancy.
C.Â
A restricted rental unit shall remain subject to the affordability
controls of this article despite the occurrence of any of the following
events:
A.Â
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 form of the
lease utilized by the administrative agent for each type of restricted
rental unit shall be provided to the Municipal Housing Liaison prior
to leasing the units. In addition, the administrative agent shall
provide to the Municipal Housing Liaison prior to the beginning of
marketing of any affordable rental units, a detailed breakdown of
the proposed rents for each bedroom mix and income group indicating
the formula and showing the calculations utilized to determine the
rents for each unit.
B.Â
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 Municipal Housing Liaison.
C.Â
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.
A.Â
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:
(1)Â
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
(2)Â
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)Â
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.Â
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 exists:
(1)Â
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;
(2)Â
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;
(3)Â
The household is currently in substandard or overcrowded living conditions;
(4)Â
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)Â
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.
C.Â
The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsections A(1) through (3) and B(1) through (5) above with the administrative agent, who shall counsel the household on budgeting. The administrative agent shall provide the Municipal Housing Liaison with a spreadsheet listing all approved applicants who meet one of the circumstances identified above on a quarterly basis. This spreadsheet shall identify the percentage of monthly income represented by the rent, and the specific circumstance in Subsection B(1) through (5) that has been met.
A.Â
The Township of North Brunswick shall appoint a specific municipal
employee to serve as a Municipal Housing Liaison responsible for administering
the affordable housing plan, including affordability controls, the
North Brunswick Affirmative Marketing Plan (NBAMP), monitoring and
reporting, and, where applicable, supervising any developer serving
as administrative agent upon approval by resolution of the Township
Council, or any contracted administrative agent. North Brunswick shall
adopt an ordinance creating the position of Municipal Housing Liaison.
North Brunswick shall adopt a resolution appointing a Municipal Housing
Liaison. The Municipal Housing Liaison shall be appointed by the Township
Council and may be a full- or part-time municipal employee. The Municipal
Housing Liaison shall be approved by the court and shall be duly qualified.
B.Â
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of North Brunswick, including the following responsibilities which
may not be contracted out to an administrative agent:
(1)Â
Serving as North Brunwick's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents and interested households;
(2)Â
Monitoring the status of all restricted units in North Brunswick's
HEFSP;
(3)Â
Compiling, verifying and submitting annual monitoring reports as
may be required by the court;
(4)Â
Coordinating meetings with affordable housing providers and administrative
agents, as needed;
(5)Â
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed; and
(6)Â
Oversee review and approval of project-specific Affirmative Marketing
Plans (PSAMP), make recommendations to the Township Council relative
to whether a developer should be appointed as administrative agent
and whether the management plan should be accepted as adequate.
C.Â
Subject to the approval of the court, the Township of North Brunswick
shall designate one or more administrative agent(s) to administer
newly constructed or renovated affordable units in accordance with
UHAC. An operating manual for each new affordable housing development
incorporated into the HEFSP shall be provided by the administrative
agent(s) to the Municipal Housing Liaison. The Municipal Housing Liaison
shall determine if the operating manual is adequate. Said operating
manual is subject to approval of the court. The operating manual shall
be available for public inspection in the Community Development Office,
in the office of the Municipal Housing Liaison, and in the office(s)
of the administrative agent(s). The Municipal Housing Liaison shall
supervise both developers serving as administrative agents and any
contracted administrative agent(s).
A.Â
The NBAMP provides minimum requirements that must be followed for
the marketing of affordable units in the Township. It also provides
options for the designation of administrative agents for each affordable
housing development. The Township shall provide the developer of each
affordable housing development the option to serve as the administrative
agent for the development if said developer can document to the satisfaction
of the Township that the company and individuals from the company
who will be involved in the marketing of the project and the review
of applications for approval have adequate training to act in this
capacity. The developer shall submit to the Municipal Housing Liaison
the qualifications of the company in order to document that the company
meets the requirements of UHAC [N.J.A.C. 5:80-26.14(e)]. The developer
shall also submit an operating manual that describes the management
procedures and responsibilities for processing applications in accordance
with UHAC [N.J.A.C. 5:80-26.14(b)]. The Municipal Housing Liaison
will make a recommendation to the Township Council as to whether the
developer has the requisite experience and personnel have the required
training to act as administrative agent. The Township Council shall
either adopt a resolution designating the developer as the administrative
agent, or rejecting the developer's request to act as administrative
agent. If approved to act as administrative agent, the developer shall
submit to the Municipal Housing Liaison each year the name of the
individual who will be the contact person/responsible party for the
North Brunswick project. If a developer is designated as administrative
agent by the Township Council, the Township Council may revoke this
approval at any time if the Council determines that the administrative
agent fails to perform the functions of administrative agent in an
acceptable manner.
B.Â
If the developer's application to act as administrative agent
is rejected by the Township Council, the Township Council shall contract
with a trained individual or company to provide the services of administrative
agent, and the developer shall be responsible for all costs of said
contract.
C.Â
If the Township of North Brunswick does not approve a developer to
serve as administrative agent for an affordable housing project, then
the Township shall hire an independent entity to serve under contract
to and report to the Township. The fees of a contracted 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)Â
Affirmative marketing.
(a)Â
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the North Brunswick Affirmative Marketing
Plan (NBAMP) and the provisions of N.J.A.C. 5:80-26.15; and
(b)Â
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)Â
Household certification.
(a)Â
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)Â
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)Â
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(d)Â
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.;
(e)Â
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)Â
Employing a random selection process as outlined in the PSAMP
when referring households for certification to affordable units.
(3)Â
Affordability controls.
(a)Â
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)Â
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)Â
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)Â
Communicating with lenders regarding foreclosures; and
(e)Â
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)Â
Resales and rerentals:
(a)Â
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)Â
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)Â
Processing requests from unit owners.
(a)Â
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 article;
(b)Â
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; and
(c)Â
Making determinations on requests by owners of restricted units
for hardship waivers.
(6)Â
Enforcement responsibilities of the administrative agent.
(a)Â
For a project with owner-occupied affordable units, securing
annually from the Tax Assessor 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)Â
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)Â
The posting annually in all rental properties, a notice as to
the maximum permitted rent together with the telephone number of the
Municipal Housing Liaison where complaints of excess rent or other
charges can be made;
(d)Â
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in;
(e)Â
Working with the Municipal Housing Liaison to divert unlawful
rent payments to the Township's Affordable Housing Trust Fund;
and
(f)Â
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)Â
Additional responsibilities.
(a)Â
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)Â
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, COAH or any other
state agency.
(c)Â
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.Â
The Township of North Brunswick shall adopt by resolution an affirmative
marketing plan, entitled North Brunswick Affirmative Marketing Plan
(NBAMP) subject to approval of the court that is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B.Â
The NBAMP 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 NBAMP 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.
C.Â
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.
D.Â
The Township desires to provide a preference for affordable housing
to low- to moderate-income veterans who served in time of war or other
emergency, as defined in Section 1 of P.L. 1963, c.171 (N.J.S.A. 54:4-8.10).
This preference shall apply to 10% of the affordable housing units
in each development. This preference shall be established in the applicant
selection process for available affordable units so that applicants
who are veterans who served in times of war or other emergency, as
referenced in this section, and who apply within 90 days of the initial
marketing period shall receive preference for the rental of 10% of
the units. After the first 90 days of the initial one-hundred-twenty-day
marketing period, if any of those units subject to the preference
remain available, then applicants from the general public shall be
considered for occupancy. Following the initial one-hundred-twenty-day
marketing period, previously qualified applicants and future qualified
applicants who are veterans who served in times of war or other emergency,
as referenced in this section, shall be placed on a special waiting
list as well as the general waiting list. The veterans on the special
waiting list shall be given preference for affordable units, as the
units become available, whenever the percentage of preference-occupied
units falls below 10%.
E.Â
The Township has the ultimate responsibility for adopting an 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 North Brunswick for each specific project shall implement the PSAMP
developed and approved for his or her development to assure the affirmative
marketing of all affordable units.
F.Â
In implementing the PSAMP, 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.
G.Â
The NBAMP and each approved PSAMP shall describe the media to be
used in advertising and publicizing the availability of housing. In
implementing the PSAMP, the administrative agent shall consider the
use of language translations where appropriate.
H.Â
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
I.Â
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 North Brunswick administration building and the North Brunswick
library, and the developer's rental office. Applications shall
be mailed to prospective applicants upon request.
J.Â
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
A.Â
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. Any and all costs incurred by
the Township to enforce the NBAMP shall be borne by the administrative
agent for the specific affordable housing project associated with
the violation.
B.Â
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:
(1)Â
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:
(a)Â
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;
(b)Â
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 North Brunswick Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)Â
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.
(2)Â
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.
(a)Â
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.
(b)Â
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.
(c)Â
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.
(d)Â
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.
(e)Â
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.
(f)Â
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.
Appeals from all decisions of an administrative agent appointed
pursuant to this article shall be filed in writing with the Municipal
Housing Liaison. Appeals from all decisions of the Municipal Housing
Liaison shall be filed in writing with the Superior Court of New Jersey,
Middlesex County, Law Division.
