[Adopted 7-31-2002 by Ord. No. 8-2002]
This article shall be known and may be cited as the "Affordable
Housing Ordinance of the Township of Edgewater Park."
The purpose of this article is to establish a mechanism for
assuring that housing units designated for occupancy by low- and moderate-income
households remain affordable to and occupied by low- and moderate-income
households.
The following terms, wherever used or referenced to in this
article, shall have the following meanings unless a different meaning
clearly appears from the context:
The entity designated by Edgewater Park Township to ensure
that housing units are restricted to, affordable to, and occupied
by low- and moderate-income households.
An instrument to be recorded with the Office of the Clerk
of Burlington County, New Jersey, constituting restrictive covenants
running with the land with respect to the low- and moderate-income
units described and identified in such instrument. The instrument
shall set forth the terms, restrictions and provisions applicable
to the low- and moderate-income units and shall be consistent with
this article concerning use, occupancy, sale, resale, rental, rerental,
sales price and rental determination, duration of restrictions, exempt
transactions, hardship exemptions, foreclosure, violation, legal description
of the specific low- and moderate-income units governed by the instrument,
determination of eligible purchasers and owners, responsibilities
of owners and improvements and creating the lines and rights of the
Administrative Agency authorizing the Administrative Agency or, in
the alternative, Edgewater Park Township to enforce the restrictive
covenants referred to herein. The terms, restrictions, and provisions
of the instrument shall bind all purchasers and owners of any low-
and moderate-income units, their heirs and assigns and all persons
claiming by, through or under their heirs, assigns and administrators.
If a single instrument is used to govern more than one low- and moderate-income
unit, then the instrument must identify the location of each low-
and moderate-income unit governed by the instrument, and the deed
of each and every individual low- and moderate-income unit so governed
must contain the recording information of the instrument applicable
to such low- and moderate-income units.
Taxes, levies, charges or assessments both public and private,
including those imposed by the association, as the applicable case
may be, upon the low- and moderate-income units which are part of
the association.
The Council on Affordable Housing.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property, as permitted
by N.J.A.C. 5:93-8 et seq.
The value of a property determined by the Municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
The Tax Assessor shall estimate the value of the property at the issuance
of a building permit, utilizing estimates for construction cost. Final
equalized assessed value will be determined at project completion
by the Municipal Tax Assessor.
The most senior mortgage lien to secure repayment of funds
for the purchase of low- and moderate-income units.
The holder and/or assigns of the first purchase money mortgage
and which must also be an institutional lender or investor, licensed
or regulated by a state or federal government. Other lenders, investors
or persons may be holders of a first purchase money mortgage; however,
for the purposes of this article, such other lenders, investors, or
persons shall not be "first purchase money mortgagees."
A termination of all rights of the mortgagor or the mortgagor's
assigns or grantees in a low- and moderate-income unit covered by
a recorded mortgage through legal processes, or through a deed in
lieu of foreclosure which has been executed and delivered prior to
a judicially regulated sale.
The total annual income from all sources of all members of
the household or family, except income received by a family household
member (other than the family head, spouse or foster children) who
is under the age of 18 years or a full-time student of any age. Income
includes but is not limited to compensation for employment services,
interest, dividends, rent, pension benefits, government benefits,
unemployment compensation, welfare payments, disability income, support
payments and return-on-assets income as defined herein.
One or more persons living as a single nonprofit housekeeping
unit, whether or not they are related by blood, marriage or otherwise.
The interest-bearing account in which all development fees
will be deposited pursuant to N.J.A.C. 5:93-8.15.
Additions within a low- and moderate-income unit, including
materials, supplies, appliances or fixtures which become a permanent
part of, or affixed to, such low- and moderate-income units.
A development containing low- and moderate-income units,
the term includes, but is not necessarily limited to, new construction,
the conversion of a nonresidential structure to a residential structure,
and the creation of new low- and moderate-income units through the
substantial rehabilitation of a vacant residential structure.
Eighty percent of the regional median income for moderate-income
households and 50% of the regional median income for low-income households,
with adjustments for household size.
A judgment entered by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
A household with a gross aggregate household income which
does not exceed 50% of the regional median income, with adjustments
for household size.
A low-income household purchasing either a low-income unit
or a moderate-income unit, as the case may be.
A unit which is affordable to a low-income household.
Any residential unit within a development which is not designated
as a low- and moderate-income unit.
A household with a gross aggregate household income which
is greater than 50% of the regional median income, but which does
not exceed 80% of said regional median income, with adjustments for
household size.
A moderate-income household purchasing a moderate-income
unit.
A unit which is affordable to a moderate-income household.
The value of equity in real property, including gains from
the sale of real property, savings and other forms of capital investment,
but not including equity in a business or farm operation where that
business or farm operation is the principal means of support of the
household, amounts in an irrevocable trust fund or the value of personal
property (e.g., car, furniture, etc.).
The then-current titleholder of record of a low- or moderate-income
unit. "Owner" shall refer to and mean the titleholder of record as
the same is reflected in the most recently dated and recorded deed
for the particular low- and moderate-income unit. For purposes of
the initial sale or rental of any low- or moderate-income unit, "owner"
shall include the developer/owner of the land upon which the low-
and moderate-income unit is to be constructed. Ownership of a low-
and moderate-income unit shall be deemed to be acceptance and ratification
of the provisions of this article and the Affordable Housing Plan.
Where appropriate, the term "owner" shall also mean and refer to a
person who owns a low- and moderate-income unit as a landlord or who
occupies a low- and moderate-income unit as a tenant. "Owner" shall
not include any cosigner or co-borrower on any purchase money mortgage
unless such cosigner or co-borrower is also a named titleholder of
record of such low- and moderate-income unit.
A person who, pursuant to this article and the Affordable Housing Plan, submits an application for certification as a qualified purchaser to the Administrative Agency and whose gross aggregate household income at the time of proposed purchase of a low- and moderate-income unit is within low- and moderate-income levels, as these income levels are designated herein. Any person who submits false information in support of an application for certification and who subsequently received such certification and either title to a low- and moderate-income unit as owner or possession of a low- and moderate-income unit as tenant shall be deemed to have committed a substantial breach of the provisions of this article and the Affordable Housing Plan, and any right of ownership of such unit shall be subject to forfeiture pursuant to the provisions of § 120-11C of this article. A "qualified purchaser" shall not be permitted to own more than one low- and moderate-income unit at the same time.
The median household income shall mean and refer to the annual
median income of the Gloucester, Camden and Burlington County housing
region as determined by COAH.
A.
The Township designates Piazza & Associates, 216 Rockingham Row,
Princeton, NJ 08540, with the responsibilities related to ensuring
controls on affordability, pricing low- and moderate-income households,
affirmative marketing, and referring income-qualified households to
low- and moderate-income housing. The Administrative Agency shall
also work with the Township in completing monitoring forms required
by the court.
B.
The Township hereby designates the Township's Clerk as its liaison
to the Administrative Agency. The Clerk shall be responsible for assisting
the Administrative Agency in completing its responsibilities.
C.
Administrative Agency responsibilities:
(1)
To determine the maximum sale, resale, and rental charges for low-
or moderate-income units and to provide certification of the same
to the developer. Said sales and rental prices shall be adjusted annually
to reflect recalculations of the regional median income.
(2)
To prequalify prospective owners and renters based upon income and
household size and to issue a certificate as to income eligibility
status.
(3)
To establish selection procedures and criteria for determining qualified
purchases and households.
(4)
To verify that an Affordable Housing Plan has been recorded and the
deeds of individual low- and moderate-income units reference such
Affordable Housing Plan.
(5)
To develop a formula for use in calculating the maximum resale price of low- and moderate-income units which is consistent with the provisions of § 120-20 of this article.
(6)
To determine whether the cost or value of the installation of improvements
or amenities within or as part of a low- or moderate-income unit should
be included in the calculation of the resale price or rental charge
for the unit and to establish guidelines whereby a homeowner can obtain
a determination in this regard prior to the time the improvements
are made. In no event may the maximum homeowner's housing cost
exceed the maximum homeowner's housing cost as defined herein.
(7)
To review and to approve or disapprove the Affordable Housing Plan
required of all developers of low- and moderate-income housing.
(8)
To review and approve or disapprove the developer's proposed
affirmative marketing plan and to require developers to submit proofs
of publication in accordance with approved affirmative marketing plans,
and to monitor the marketing practices of developers of low- and moderate-income
units to ensure that they comply with the affirmative marketing requirements
of this article.
(9)
To report semiannually to the governing body and Township Planning
Board on the status of low- and moderate-income units, including but
not limited to such things as the Administrative Agency's actions
in connection with any statements of exemption and foreclosures upon
any low- and moderate-income units.
(10)
The Administrative Agency shall at all times maintain a waiting
list of qualified purchasers and shall provide said list to any owner
in the event of default proceedings.
D.
Fees.
(1)
For any developments receiving preliminary or final approval subsequent
to the adoption of this article, the developers of low- and moderate-income
housing shall be responsible for reimbursing the Administrative Agency
for its services as provided in N.J.S.A. 52:27D-324 upon initial sale.
(2)
For any developments receiving preliminary or final approval subsequent
to the adoption of this article, the owners of low- and moderate-income
housing units shall be responsible for reimbursing the Administrative
Agency for its services upon subsequent resales.
(3)
For any developments receiving preliminary or final approval subsequent
to the adoption of this article, the owners of rental low- and moderate-income
units shall be responsible for reimbursing the Administrative Agency
for its services as provided in N.J.S.A. 52:27D-324 upon each rental
and rerental.
B.
Except as otherwise expressly provided herein, no low-income unit
shall be offered for sale or rental except at prices that are affordable
by low-income households, and no moderate-income unit shall be offered
for sale or rental except at prices that are affordable by moderate-income
households. The provisions of this subsection shall apply equally
to qualified low- and moderate-income units or renters in terms of
controls on sale, resale, rental, or rerental of any low- and moderate-income
unit.
C.
However, nothing contained in this article shall restrict or preclude
any household which was classified as low or moderate income based
upon its gross aggregate household income at the time it purchased
or leased a low- or moderate-income unit from continuing to own or
lease said unit after its income exceeds the income ceilings established
in this article.
D.
Prospective purchasers of low- and moderate-income units shall receive,
prior to or simultaneously with the execution of the contract to purchase
a low- and moderate-income unit, a copy of the Affordable Housing
Plan and shall execute a disclosure statement which briefly summarizes
the salient features of the use, occupancy and resale restrictions
applicable to the low- and moderate-income unit. It shall be the developer's
responsibility to provide such for the initial sales and subsequent
owner's responsibility to provide the same for resales. The developer
shall record the Affordable Housing Plan prior to conveying any title
to any individual low- and moderate-income unit, and the deeds and
leases of individual low- and moderate-income units must reference
such recorded Affordable Housing Plan.
E.
The bylaws of the homeowner's association shall provide that
the proportional relationship between the condominium fees initially
assessed against market units and lower income units upon initial
sale shall be held constant over time with changes in the assessments.
Further, the public offering statement for any market units in inclusionary
developments shall clearly disclose this proportional relationship
to prospective purchasers.
Applications shall be accepted only if submitted on an application
form prepared and/or approved by the Administrative Agency. Applications
shall be completely filled out and notarized. Knowingly or intentionally
making any false statement on a form shall be grounds for disqualifying
an applicant even if the applicant is otherwise eligible. In placing
households in low- and moderate-income units, the following verification
and certification procedures shall be employed:
A.
Every household member 18 years of age or over who will live in the
affordable unit and receives income shall be required to provide income
documentation. This includes income received by adults on behalf of
minor children for their benefit. Household members 18 years of age
or over not receiving income must produce documentation of current
status.
B.
Verification may include, but is not limited to, the following:
(1)
Four consecutive pay stubs including overtime, bonuses, or tips dated
within 120 days of the interview date or a letter from an employer
stating present annual income figure as projected annually;
(2)
A copy of regular IRS Form 1040 (Tax computation form) 1040A, or
1040 EZ, as applicable, and state income tax returns filed for each
of the three years prior to the date of interview;
(3)
A letter of appropriate reporting form verifying benefits such as
social security, unemployment, welfare, disability or pension income
(monthly or annually);
(4)
A letter or appropriate reporting form verifying any other sources
on income claimed by the applicant such as alimony and child support;
(5)
Reports that verify income from assets to be submitted by banks or
other financial institutions managing trust funds, money market accounts,
certificates of deposits, stocks or bonds;
(6)
Evidence or reports of income from assets such as real estate or
businesses that are directly held by any household member;
(7)
Evidence or reports that verify assets that do not earn regular income
such as non-income-producing real estate or savings that do not earn
interest; and
(8)
A notarized statement of explanation in such form as to be satisfactory
to the Administrative Agency.
C.
Generally, sources of annual income shall be based on regular income
reported to the IRS and which can be utilized for mortgage approval.
Household annual gross income shall be calculated by projecting current
gross income over a twelve-month period.
D.
Income includes but is not limited to wages, salaries, tips, commissions,
alimony, regularly scheduled overtime, pensions, social security,
unemployment compensation, AFDC, verified regular child support, disability,
net income from business or real estate, and income from assets such
as savings, CDs, money market, mutual funds, stocks and bonds and
imputed income from non-income producing assets such as equity in
real estate.
E.
Assets not earning a verifiable income shall have an imputed interest
income using a current average annual savings interest rate. Assets
not earning income include present real estate equity. Applicants
owning real estate must produce documentation of a market value appraisal
and outstanding mortgage debt. The difference will be treated as the
monetary value of the asset and the imputed interest added to income.
F.
Income from assets that have delayed earnings, such as IRAs or annuity
programs shall not be included in current income until such payments
are being received. However, these assets must be reported and verified.
G.
Net rent from real estate is considered income after the monthly
mortgage payment including real estate taxes and insurance is deducted.
Other expenses are not deductible. In addition, the equity in the
rented real estate is considered an asset and will have the imputed
interest income on the calculated value of equity added to income.
H.
Income does not include payments, rebates or credits received under
federal or state low-income home energy assistance programs, food
stamps, payments received for care of foster children, relocation
assistance benefits, income of live-in attendants, scholarships, student
loans, personal property such as automobiles, lump-sum additions to
family assets such as inheritances, one-time lottery winnings, and
insurance settlements except for additional income earned from these
additions, and causal, sporadic or irregular gifts and bonuses.
I.
Standard credit information services that provide conventional credit
and tenant reports may be utilized when certifying a household with
required written permission from the household. An unsatisfactory
credit history or credit information that demonstrates a disproportionate
debt to income ratio may result in a denial of certification. Court-ordered
payments for alimony or child support to another household shall be
considered a regular monthly debt whether or not it is being paid
regularly.
J.
Households whose total gross annual income is measured at 50% or
below 50% of the authorized median income guideline shall be certified
as low-income households and referred to units designated for low-income
households.
K.
Households whose total gross annual income is measured above 50%
but below 80% of the authorized median income shall be certified as
moderate-income households and referred to units designated for moderate-income
households.
L.
Generally, households will be referred to units where predetermined
total monthly housing costs correspond to the household's calculated
ability to pay using 28% of gross monthly income as a standard for
home ownership and 30% of gross monthly income as a standard for rental
units. Thirty-five percent of gross monthly income is allowed under
certain circumstances.
M.
At the discretion of the Administrative Agency, households may also
be required to produce documentation of household composition for
determining the correct unit size and the applicable median income
guide.
N.
Generally, households will be referred to available units using the
following standards for occupancy:
O.
Households may be considered for units other than as above, but in no case shall a household be referred to as a unit that provides for more than one additional bedroom per household occupancy standard as stated in Subsection N above. Generally, households applying for rental units will not be approved additional bedrooms.
P.
A form for certification shall be prepared and signed by the Administrative
Agency. Only households receiving certification shall be referred
to affordable housing units.
Q.
Certified households who reject an opportunity for affordable housing
may remain on the referral list for 60 additional days at their requests
and may be reinterviewed for certification when their name appears
on a listing for a subsequent unit. Subsequently, households may reapply
for affordable housing in the Township.
R.
Certification shall be valid for no more than 120 days unless a valid
sales contract or lease has been executed within that time period.
In this event, certifications shall be valid until such time as the
sale contract or lease is ruled invalid and no occupancy has occurred.
Certifications may be renewed in writing at the request of a certified
household for no more than an additional period of 120 days at the
discretion of the Administrative Agency.
S.
Households who are denied certification may make a written request
for a redetermination. Households shall be required to produce additional
documentation to support their claim.
A.
The Administrative Agency shall adopt income eligibility ceilings
for low- and moderate-income units for various sized households consistent
with those adopted by COAH. No applicant with a household income in
excess of these ceilings shall be eligible to purchase or rent the
low- and moderate-income units.
B.
Upon annual adoption of adopted income standards by COAH, the Administrative
Agency shall modify its income eligibility ceilings accordingly.
Unless otherwise permitted by court order or by COAH, the affordable
housing units provided through inclusionary development shall be divided
equally between low- and moderate-income households.
A.
At least half of all low and moderate income sales units within each
inclusionary development shall be affordable to low-income households.
B.
With the exception of affordable units constructed pursuant to low-income
tax credit regulations, at least half of all low- and moderate-income
rental units within each inclusionary development shall be affordable
to low-income households.
Except as otherwise approved by a court of competent jurisdiction,
affordable housing units shall have the following distribution of
bedroom types:
A.
Except as otherwise approved by a court of competent jurisdiction,
affordable units that are not restricted to senior citizens shall
be structured in conjunction with realistic market demands so that:
(1)
The combination of efficiency and one-bedroom units is at least 10%
and no greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two-bedroom
units; and
(3)
At least 20% of all low- and moderate-income units are three-bedroom
units.
B.
Low- and moderate-income units restricted to senior citizens may
utilize a modified bedroom distribution. At a minimum, the number
of bedrooms shall equal the number of senior citizen low- and moderate-income
units within the inclusionary development. The standard can be met
by creating all one-bedroom units or be creating a two-bedroom unit
for each efficiency unit.
A.
The following criteria, in conjunction with realistic market information,
shall be used in determining maximum rents and sale prices:
B.
Median income by household size shall be established by COAH.
C.
Except as otherwise approved by a court of competent jurisdiction,
the maximum sales prices of low- and moderate-income units within
each inclusionary development shall be affordable to households earning
no more than 70% of median income. In averaging an affordability range
of 55% for sales units, the municipal ordinance shall require moderate-income
sales units to be available for at least two different prices and
low-income sales units to be available for at least two different
prices. In order to ensure that low- and moderate-income units are
affordable to a range of low- and moderate-income households, the
developer shall establish a range of stratified selling prices for
affordable sales units.
D.
The initial price of a low- and moderate-income owner-occupied housing
unit will be established so that after a down payment of 5%, the monthly
principal, interest, insurance, property taxes (property taxes shall
be based on the restricted value of low- and moderate-income units)
and condominium or homeowner fees do not exceed 28% of the eligible
gross monthly income. The master deeds of inclusionary developments
shall specify that low- and moderate-income homeowners shall pay at
least 1/3 of the condominium or homeowner fees paid by purchasers
of market housing units. This percentage, once established within
the master deed, shall not be amended without prior approval from
COAH.
E.
In determining the sales price of affordable sales units, the following
considerations shall govern:
(1)
Sixty or more days prior to the developer's anticipated need
of certificates of occupancy for low- and moderate-income units, the
developer shall provide the Administrative Agency with information
demonstrating the financing that is generally available locally to
lower-income home buyers and the developer's calculation as to
maximum initial sales prices. The interest rate used by the developer
in calculating the maximum sales price shall be the rate that the
Administrative Agency determines to be generally available locally
for a 95%, thirty-year fixed-rate mortgage.
(2)
The calculation to establish the purchase price of the unit shall
take into consideration the going interest rate for a thirty-year
fixed rate of interest as listed and available in Edgewater Park Township.
If the actual fixed rate of interest offered by the developer shall
be less than the local market rate, then that interest rate shall
be used for these calculations.
(3)
Property taxes shall be determined by applying the equalized property
tax rate in the Township of Edgewater Park.
(4)
The developer shall use the best available assumptions to determine
the insurance and homeowners' association fees to be applied
to the units, subject to the approval of the Administrative Agency
as to reasonableness for use in this calculation.
F.
Unless otherwise approved by a court of competent jurisdiction, the maximum rental of low-income units within each inclusionary development shall be affordable to households earning no more than 50% of median income. In averaging an affordability range of 52% for rental units, developers of rental units may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution. Gross rents, including an allowance for utilities, shall be established so a not to exceed 30% of the gross monthly income of the appropriate household size referenced in § 120-11A of this article. The utility allowance shall be derived from the utility allowance by HUD for use in New Jersey.
G.
Low-income housing units shall be reserved for households with a
gross household income less than or equal to 50% of the median income
approved by the COAH. Moderate-income housing units shall be reserved
for households with a gross household income less than 80% of the
median income approved by the COAH. For example, a household earning
48% of median income may be placed in any low-income unit; however,
a household earning 53% may not qualify for a low-income unit. A household
earning 67% of median may be placed in any moderate-income housing
unit. A household earning less than 50% of median may be placed in
a moderate-income housing unit. Low- and moderate-income units shall
not be offered to households that are not income eligible upon initial
sale without COAH approval pursuant to N.J.A.C. 5:93-9.16.
H.
Low- and moderate-income owner-occupied and rental units shall utilize
the same heating source as market units.
Rental charges shall remain in effect for a period of at least
one year.
Affordable housing units shall be situated on the development
tract in locations no less desirable than market-price dwelling units
within the development, and shall be equally accessible to common
open space, community facilities and shopping facilities.
In general, final site plan approval shall be contingent upon
the development, whether developed in one stage or in two or more
stages, meeting the following phasing scheduled:
|
Minimum Percentage of Low- or Moderate-Income Units Completed
|
Percentage of Market Housing Units Completed
|
|---|---|
|
0%
|
25%
|
|
10%
|
25% + 1 unit
|
|
50%
|
50%
|
|
75%
|
75%
|
|
100%
|
90%
|
A.
Except as otherwise approved by a court of competent jurisdiction,
no certificate of occupancy for a low- or moderate-income unit shall
be issued until the developer shall have submitted and have approved
by the Administrative Agency a deed restriction encompassing all the
provisions of these regulations.
B.
No certificate of occupancy shall be issued for the resale of a low-
or moderate-income unit unless the Administrative Agency shall certify
that the resale complies with the terms of these regulations.
C.
No low- and moderate-income unit may be occupied by an initial purchaser
or resale purchaser without a certificate of occupancy.
A.
Program definition. The Administrative Agency shall develop and implement
an affirmative marketing program for affordable housing units. The
Affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of sex, age or number of children, to housing units which
are being marketed by the developer of affordable housing. It is a
continuous program and covers the period of the deed restriction.
B.
Advertising.
(1)
Advertising for affordable housing units shall begin at least 90
days prior to expected occupancy unless a court of competent jurisdiction
varies this period. There shall be at least one paid advertisement
in the Burlington County Times, the Gloucester County Times, and the
Courier Post during the first week of the marketing program. The advertisement
shall include:
(a)
The location of the units;
(b)
Directions to the housing units;
(c)
A range of prices for the housing units;
(d)
The size, as measured in bedrooms, of the housing units;
(e)
The maximum income permitted to qualify for the housing units;
(f)
The location of applications for the housing units; and
(g)
The business hours when interested households may obtain an
application for a housing unit.
(2)
The developer/owner shall supplement newspaper advertisements by:
(a)
Providing quarterly published materials to the Burlington, Gloucester
and Camden County: Office on Aging; Boards of Social Service; and
Boards of Realtors.
(b)
Providing quarterly published materials to mailing lists of
employers, public housing authorities, community development block
programs and nonprofit agencies that provide housing services within
Burlington, Gloucester and Camden Counties such as Affordable Housing
Coalition of Burlington County, Burlington County Community Action
Program, Tri-County Community Action Agency and Camden County Council
on Economic Opportunity, Moorestown Ecumenical Neighborhood Development,
Inc., Jersey Counseling and Housing Development, Inc.
(c)
Posting advertisements in local businesses in and surrounding
Edgewater Park Township including Burlington County Government offices,
Mt. Laurel and Mt. Holly Medco-Merck, Willingboro and Pathmark, Edgewater
Park as well as at the Burlington, Camden and Gloucester County libraries,
the municipal building and the developer's sales or rental office.
(d)
Mailing information about affordable housing to local religious
organizations; Lutheran Social Ministries, Jewish Family Service and
Catholic Charities.
(3)
The cost of all newspaper and radio advertising shall be the developer/owner's
responsibility and shall be established at preliminary approval, or
as ordered by a court of competent jurisdiction.
C.
Applications. Applications for affordable housing shall be available
at the municipal building, the municipal library, and the developer's
sales office. Applications shall be mailed to prospective applicants
upon request.
D.
Random selection procedures.
(1)
Preliminary applications (prepared by the Administrative Agency)
and brochures (prepared by the owner and approved by the Administrative
Agency) will be mailed by the owner to everyone who responds to the
advertising program. A cover letter will inform all applicants of
the initial deadline date. The preliminary applications shall be returned
directly to the Administrative Agency for processing.
(2)
All of the preliminary applications received by the Administrative
Agency, on or before the initial deadline date, shall be deemed received
on that date.
(3)
Households that apply for low- and moderate-income housing will be
prescreened by the Administrative Agency for preliminary income eligibility
by comparing their total income and household size to the low- and
moderate-income limits adopted by COAH and other program restrictions
that may apply. All households will be notified as their preliminary
status.
(4)
A drawing will be held under the direction of the Administrative
Agency to determine the priority order of the prequalified applications
received on or before the initial deadline date. All preliminary applications
received after the initial deadline, will be processed on a "first-come,
first-served" basis.
(5)
In order to ensure an adequate supply of qualified applicants, the
advertising phase will continue until there are at least 10 prequalified
applicants for each low- and moderate-income unit available, or until
all of the low- and moderate-income units within the development have
been rented.
(6)
Final applications will be mailed by the Administrative Agency to
an adequate number of prequalified applicants for each available low-
and moderate-income unit. The final application will require the applicants
to supply documents to verify their identify and household composition
as well as their income and assets.
(7)
The applicants will be interviewed by the owner. Completed final
applications will be forwarded to the Administrative Agency. The Administrative
Agency will make a determination as to their eligibility for a low-
or moderate-income unit. Applicants will receive a letter from the
Administrative Agency with respect to the status of their application
each time a review is performed.
(8)
At the same time, applicants will also be subject to any criteria
set forth by the owner for the market-rate apartments, such as credit
worthiness, recommendations from former landlords, etc. The criteria
shall comply with all fair housing standards and be set forth in a
policy statement made available to all applicants in the leasing office.
The owner will be responsible for the assessment of all criteria beyond
the income and household size criteria set forth by COAH.
(9)
Subsequent to the initial rent-up period, a list of prequalified
applicants will be maintained by the Administrative Agency for each
type of low- and moderate-income unit. The advertising will be repeated
by the owner, as needed, to maintain a waiting list equal to five
times the number of low and moderate units, and no less than annually.
E.
Responsibilities.
(1)
The Administrative Agency is the agency under contract with Edgewater
Park Township to administer the affirmative marketing program. The
Administrative Agency has the responsibility to income qualify low-
and moderate-income households in low- and moderate-income units upon
initial occupancy; to provide for the initial occupancy of low- and
moderate-income units with income qualified households; to continue
to qualify households for reoccupancy of units as they become vacant
during the period of affordability controls; to assist with advertising
and outreach to low- and moderate-income households; and to enforce
the terms of the deed restriction and mortgage loan. To the extent
possible, the Administrative Agency shall also 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)
The Township's Clerk shall be designated to attend an affirmative
marketing housing program approved by COAH and serve as the liaison
to the Administrative Agency.
(3)
All developers shall submit an affirmative marketing plan for marketing
low- and moderate-income units that conforms to this subsection. The
affirmative marketing plan shall be subject to the Administrative
Agency approval and shall be incorporated as a condition of approval
of the development application. The developer shall also be responsible
for the following unless such responsibilities are waived by the Administrative
Agency:
(a)
Submissions of information as to financing terms readily available
to low- and moderate-income households for use by the Administrative
Agency in computing maximum sales prices.
(b)
Submission of an affordable housing plan and an affirmative
marketing plan to the Administrative Agency for approval and submission
of proofs of publication to ensure compliance with said plan.
(c)
The marketing of all low- and moderate-income units in accordance
with the requirements of this article.
(d)
Submissions of quarterly reports to the Administrative Agency
detailing the number of low- and moderate-income households who have
signed leases or purchase agreements, as well as the number who have
taken occupancy of lower-income units, including household size, number
of bedrooms in the unit, sales price and monthly carrying costs or,
in the case of rental units, the monthly rental charges and utilities
included.
(4)
The developer's responsibilities hereunder shall expire automatically
with respect to for sale low- and moderate-income units upon the date
upon which the last low- and moderate-income unit within the particular
development is sold by the developer. With respect to rental low-
and moderate-income units, the developer's responsibilities shall
be assumed by the landlord and shall be performed by the landlord
so long as such unit is a rental low- and moderate-income unit and
subject to the restrictions of this article.
(5)
The developer of affordable housing units shall be responsible for
returning all applicant and sales records for affordable units to
the Administrative Agency to aid in reporting to the court or COAH
(whichever has jurisdiction) and to aid in the evaluation of the affirmative
marketing program.
A.
Low- and moderate-income sales units shall not be offered to non-income-eligible
households at initial sale without approval from COAH. Developers
that petition for such approval must document efforts to sell housing
units to income eligible households and must demonstrate that the
housing units have been affirmatively marketed throughout the housing
region. Developers that seek such approval to sell low- and moderate-income
sales units to non-income-eligible households shall adhere to the
procedures in N.J.A.C. 5:91-12 if seeking such approval from COAH.
B.
In the event that COAH grants relief, low-income units may be sold
to a moderate-income buyer. A moderate-income unit may be sold to
a household whose income does not exceed 95% of median income.
C.
In no case shall the developer be able to receive more than the maximum
permitted sales price. In no case shall a sale pursuant to this subsection
eliminate the resale controls on the unit or permit any subsequent
seller to convey the unit except in full compliance with the terms
of this article. For example:
(1)
The relief granted shall apply only to the specific sale or rental
transaction for which it was issued.
(2)
The relief granted shall only exempt the specific transaction from
the restriction of selling or renting such low- and moderate-income
unit to only income qualified purchasers. All other restrictions,
requirements and provisions of this article and the Affordable Housing
Plan shall remain in full force and effect, including but not limited
to maximum sales prices and rental charges which are established pursuant
to this article.
D.
The restrictions of resale or rental to only qualified purchasers
shall apply to subsequent resales or rentals of the particular low-
and moderate-income unit.
A.
All resale transactions of affordable housing sales units shall be
administered by the Administrative Agency. From the date on which
the Administrative Agency receives a notice of intent to sell by the
owner of a low- and moderate-income unit, the Administrative Agency
shall have the exclusive right to purchase the unit at the maximum
permitted sales price or to refer prospective purchasers to that unit
for a period of 90 days unless waived in writing by the Administrative
Agency. In the event that a contract for the unit is executed within
the ninety-day period set above and the prospective buyer is unable
to close, the period during which the Administrative Agency shall
have the exclusive right to market the unit is automatically extended
for a period of 21 days from the date it is notified of the buyer's
inability to close.
B.
In the event no contract has been entered into for the unit at the
end of the ninety-day period, the owner of the unit may seek approval
from the Administrative Agency to sell the unit to a non-income-eligible
household. Upon such a request, the Administrative Agency shall require
the seller to document all efforts to sell the unit to an income-eligible
household. The Administrative Agency shall require the seller to document
the reasons for any delay in selling the housing unit and the hardship
to the seller in continuing to offer the affordable unit to an income-eligible
applicant. The inability to sell the unit at the maximum permitted
resale price shall not, in itself be considered an appropriate reason
for allowing a housing unit to be sold to a non-income-eligible household.
If the Administrative Agency grants the request, the housing unit
may be sold as follows:
(1)
In the case of a low-income unit, to a moderate-income buyer; or
(2)
In the case of moderate-income unit to a buyer whose income does
not exceed 95% of median.
(3)
Any subsequent sale shall be fully subject to the resale restrictions
contained in these regulations. The deed to the above income purchaser
shall specifically contain a deed restriction establishing that it
is subject to all the affordability controls outlined in this article.
(4)
In no event shall the seller receive more than the maximum permitted
resale price.
The resale price of the affordable housing unit shall be the
base price increased pursuant to Subsections A and B herein.
A.
Percentage increase in household income. The price approved by the
Administrative Agency at which the seller acquired the property shall
be the base price. The base price shall be multiplied by 100% plus
the percentage increase in the HUD uncapped median income by family
size for the Gloucester, Camden and Burlington Counties from the time
of acquisition of the property to the date that notice of intent to
sell is given to the Administrative Agency. For example, if the base
price is $30,000, the median income at the time of the initial acquisition
is $32,000 and the median income at the time of the resale transaction
the median income has increased 25% to $40,000, then the resale price
is as follows:
|
$30,000 x 1.25 = $37,500
|
B.
Improvements. In addition, the seller shall be entitled to add to
the selling price of the unit, the cost of an eligible capital improvement,
which pursuant to N.J.A.C. 5:93-9:11 renders the unit suitable for
a larger household. (For example, the addition of a bedroom would
render a unit suitable for a larger household.) Upon the request of
an owner of an affordable housing unit, the Administrative Agency
shall consider within 30 days whether to grant prior approval of an
improvement and to approve a specific dollar amount up to the amount
actually expended for that improvement.
The following transactions shall be deemed non-sales for the
purpose of this article. The owner of the affordable unit shall be
entitled to a statement of exemption from the Administrative Agency
upon application.
A.
Transfer of an affordable housing unit between husband and wife;
B.
Transfer of ownership of an affordable housing unit between former
spouses as a result of a judicial decree, judgment or order of divorce,
but not including sales to third parties;
C.
Transfer of ownership of an affordable housing unit as a result of
inheritance;
D.
Transfer of ownership of an affordable housing unit through an order
of the superior court. A grant of exemption shall not eliminate the
resale control restriction set forth in these regulations. Any subsequent
sale shall be subject to all of the terms of these regulations.
No owner of an affordable housing sales unit may lease the unit
to a tenant without prior written approval of the Administrative Agency.
Such approval shall not be granted except when justified by particular
and unusual circumstances. An owner seeking such approval shall submit
a written request to the Administrative Agency setting forth the particular
circumstances of the case including the reasons for the request to
rent, the proposed duration of the tenancy and certification that
the proposed tenant is a qualified low- or moderate-income household.
In the event the Administrative Agency approves the request, it shall
notify the owner of the unit. The owner shall rent the unit only to
a qualified low- or moderate-income tenant for the period approved
by the Administrative Agency at a rent affordable to a low- or moderate-income
tenant, whichever is applicable.
A.
Except as otherwise provided in these regulations, all low- and moderate-income
units subject to the provisions of this article shall be subject controls
for a period of 30 years from the date of acquisition of the unit
by the initial purchaser. The form of the control shall be consistent
with the COAH restrictions as exhibited in Appendixes E (Sales Units)
and H (Rental Units).
B.
All low- and moderate-income dwelling units shall be covered by covenants
to ensure that in all initial sales/rentals and in all subsequent
resales/re-rerentals, the units will continue to remain available
and affordable to the lower-income households for which they were
intended for the period specified in this subsection in accordance
with the requirements and standards established by COAH.
No second mortgage shall be placed upon the property without
the prior written approval of the Administrative Agency. In determining
whether to grant an approval for the second mortgage, the Administrative
Agency shall consider the need for the second mortgage and the impact
that the second mortgage shall have upon the ability of the owner
to maintain this unit as a low- and moderate-income unit. Under no
circumstances shall a foreclosure of a second mortgage constitute
grounds for eliminating the resale controls provided for in this regulation.
Prior written approval shall be denied unless second mortgages are
specifically authorized by COAH regulations and the application is
consistent with those regulations.
Items of personal property which are not permanently affixed
to the unit (e.g. refrigerator, freezer, washer, dryer) and which
were not included when the affordable housing unit was purchased may
be the subject of separate negotiations between the parties subsequent
to the signing of the contract for the purchaser of the house. Any
agreed price for the purchase of any item or items of personal property
shall be reasonable considering the original cost, nature, age and
condition of the item. The price to be paid for items of personal
property shall not be used as a mechanism to avoid or circumvent the
limitations on the resale price of the unit itself. In no event shall
the right to purchase the unit be conditioned upon the buyer's
willingness to agree to purchase any item or items of personal properties
of the seller.
A.
Provisions for first purchase money mortgagees.
(1)
The terms and restrictions of this article and the Affordable Housing
Plan shall be subordinate only to the first purchase money mortgage
lien on any low- and moderate-income unit and in no way shall impair
the first purchase money mortgagee's ability to exercise the
contract remedies available to it in the event of default as such
remedies are set forth in the first purchase money mortgage documents
for the unit.
(2)
So long as the first purchase money mortgage is not sold to the Federal
National Mortgage Association or in the secondary mortgage market,
the first purchase money mortgagee and/or mortgage servicer shall
serve written notice upon the Administrative Agency within 10 days
after the first purchase money mortgage is three months in arrears
and within 10 calendar days of the filing of the complaint seeking
foreclosure of the first purchase money mortgage held on a low- and
moderate-income unit.
(3)
The obligation of the first purchase money mortgagee and/or services
to notify the Administrative Agency shall cease automatically and
immediately upon the sale of the first purchase money mortgage to
the Federal National Mortgage Association or in the secondary mortgage
market, unless the rules and regulations are amended so as to not
prohibit or exclude placing such obligation, in which case an instrument
duly evidencing same must be recorded with the office of the Clerk
of Burlington County, New Jersey, and the Clerk of the Township of
Edgewater Park before any such obligation shall exist.
(4)
Provided that the first purchase money mortgagee is obligated to
give the Administrative Agency the above-mentioned notices, the first
purchase money mortgagee shall also serve written notice of any proposed
foreclosure sale upon the Administrative Agency at least 30 days prior
to the first scheduled date of such sale.
(5)
The first purchase money mortgage shall serve notice upon the Administrative
Agency within 30 days of the sale of the first purchase money mortgage
to the Federal National Mortgage Association or in the secondary mortgage
market.
(6)
The Township of Edgewater Park or any instrumentally designated by
the Township shall have the right to purchase any mortgage which is
in default at any time prior to the entry of a foreclosure judgment
or within the redemption period thereafter. Notification of a default
and of the institution of a foreclosure action and of a Sheriff's
sale shall be served in writing upon the Administrative Agency. The
Township of Edgewater Park shall at all times be considered a party
defendant and/or shall have the right to intervene in any foreclosure
action seeking foreclosure of a first mortgage and/or shall have the
right to redeem and acquire the owner's equity of redemption
or to acquire the unit from the owner upon such terms and conditions
as may be determined by the Administrative Agency.
(7)
In the event of foreclosure, the Administrative Agency shall attempt
to identify a qualified low and moderate income purchaser as the case
may be and shall give notice to the foreclosing party, and effort
shall be made within the confines of the applicable foreclosure laws
to sell the housing agency any excess funds as the term "excess funds"
is used in the Affordable Housing Agreement, included as part of the
Township's Fair Share Plan.
B.
Owner's equity.
(1)
Owner's equity shall be determined to be the difference between
the maximum resale price of the unit and the total of the assessments,
property taxes and other liens which may have been attached against
the unit prior to the foreclosure, provided that such total is less
than the maximum resale price.
(2)
If there are sums to which the owner is properly entitled, such sums
shall be turned over to the owner or placed in escrow by the Administrative
Agency for the owner for a maximum period of two years. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the Administrative Agency.
(3)
This provision is subject, however, to applicable laws of the State
of New Jersey governing the distribution and payment of proceeds of
foreclosure sales.
If any section, paragraph, subdivision, clause or provision
of this article shall be adjudged invalid, such adjudication shall
apply only to the section, paragraph, subdivision, clause or provision
so adjudged and the remainder of the chapter shall remain in full
force and effect.
