[HISTORY: Adopted by the Mayor and Council
of the Township of Clinton 8-8-2018 by Ord. No. 1118-18[1]. Amendments noted where applicable.]
GENERAL REFERENCES
Land use regulations — See Ch. 165.
[1]
Editor's Note: This ordinance also repealed former Ch. 151,
Housing, Affordable, which comprised Art. I, Development and Management
of Housing Units, adopted 3-8-2001 by Ord. No. 742-01, as amended;
and Art. II, adopted 6-28-2006 by Ord. No. 910-06.
The purpose of this chapter is to include provisions addressing
the Township of Clinton's constitutional obligation to provide for
its fair share of low- and moderate-income housing, as directed by
the Supreme Court and consistent with N.J.A.C. 5:93-1 et seq., as
amended and supplemented, N.J.A.C. 5:80-26.1 et seq., as amended and
supplemented, and the New Jersey Fair Housing Act of 1985. This chapter
is intended to assure compliance with the regulations of the Council
on Affordable Housing ("COAH") set forth at N.J.A.C. 5:93-1 et seq.,
and the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1
et seq., including provisions for unit affordability controls as well
as eligibility for low- and moderate-income households. This chapter
shall apply except where inconsistent with applicable law.
It is the intent of this chapter to regulate the development
and management of low- and moderate-income units constructed in inclusionary
developments in compliance with the Housing Plan Element and Fair
Share Plan of the Township of Clinton.
A.
Trust fund activity. On the first anniversary of the entry of the
order granting Clinton Township a final judgment of compliance and
repose in In re Township of Clinton Compliance with Mount Laurel Third
Round Affordable Housing Obligation, Docket No. HNT-L-315-15, and
every anniversary thereafter through the end of the repose period,
the Township shall provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs,
Council on Affordable Housing or Division of Local Government Services,
or other entity designated by the State of New Jersey, with a copy
provided to the Fair Share Housing Center and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs, Council on Affordable Housing or
Division of Local Government Services. The reporting shall include
an accounting of all Affordable Housing Trust Fund activity, including
the source and amount of funds collected and the amount and purpose
for which any funds have been expended.
B.
Affordable housing activity. On the first anniversary of the entry
of the order granting Clinton Township a final judgment of compliance
and repose in In re Township of Clinton Compliance with Mount Laurel
Third Round Affordable Housing Obligation, Docket No. HNT-L-315-15,
and every anniversary thereafter through the end of the repose period,
the Township shall provide annual reporting of the status of all affordable
housing activity within the Township through posting on the municipal
website, with copies provided to the Fair Share Housing Center, using
forms previously developed for this purpose by the Council on Affordable
Housing or any other forms endorsed by the court-appointed special
master and Fair Share Housing Center. For the midpoint realistic opportunity
review due on July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313,
the Township shall post on its municipal website, with copies provided
to the Fair Share Housing Center, a status report as to its implementation
of its affordable housing plan and an analysis of whether any unbuilt
sites or unfulfilled mechanisms continue to present a realistic opportunity.
Such posting shall invite any interested party to submit comments
to the Township, with copies provided to the Fair Share Housing Center,
regarding whether any sites no longer present a realistic opportunity
and should be replaced. Any interested party may by motion request
a hearing before the court regarding these issues.
C.
Very-low-income housing. For the review of very-low income housing
requirements required by N.J.S.A. 52:27D-329.1, within 30 days of
the third anniversary of the entry of the order granting Clinton Township
a final judgment of compliance and repose in In re Township of Clinton
Compliance with Mount Laurel Third Round Affordable Housing Obligation,
Docket No. HNT-L-315-15 and every third year thereafter, the Township
will post on its municipal website, with copies provided to the Fair
Share Housing Center, a status report as to its satisfaction of its
very- low-income requirements, including the family very-low-income
requirements referenced herein. Such posting shall invite any interested
party to submit comments to the Township, with copies provided to
the Fair Share Housing Center, on the issue of whether the Township
has complied with its very-low-income housing obligation.
The following terms when used in this chapter shall have the
meanings given in this section:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing structure on the same site, or by an addition to an existing
home or accessory building, or by the construction of a new accessory
structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity designated by the Township to administer affordable
units in accordance with this chapter, the regulations of the Council
on Affordable Housing set forth at N.J.A.C. 5:93 et seq., and the
Uniform Housing Affordability Controls set forth at N.J.A.C. 5:80-26
et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which 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 Fair Housing
Act[1] and approved for crediting by the court and/or funded
through an Affordable Housing Trust Fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development wherein the unit is situated
are 62 years of age or older; or
At least 80% of the units are occupied by one person who is
55 years of age or older; or
The development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to, transitional facilities for the homeless; Class A, B, C, D and
E 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 Housing Element and Fair Share Plan adopted by the Clinton
Township Planning Board on May 7, 2018, and endorsed by the Mayor
and Council of the Township of Clinton on May 9, 2018.
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 regional median household income by household
size.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load-bearing structural
systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
A structure containing five or more dwelling units.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class A
beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted regional income limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
The settlement agreement entered into between the Township
of Clinton and Fair Share Housing Center, Inc. on December 13, 2017,
as subsequently amended by agreement dated February 5, 2018, in the
action entitled In re Township of Clinton Compliance with Mount Laurel
Third Round Affordable Housing Obligation, Docket No. HNT-L-315-15.
The Township of Clinton, in Hunterdon County, New Jersey.
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 regional median household income by household
size.
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.
[1]
Editor's Note: See N.J.S.A. 52:27d-301 et seq.
The Township has determined that it will use the following mechanisms
to satisfy its affordable housing obligations:
A.
Rehabilitation program.
(1)
The Township shall conduct its rehabilitation program through the
Hunterdon County Housing Rehabilitation Program located at 71 Main
Street, Flemington, NJ 08822.
(2)
The Township's rehabilitation program shall be designed to renovate
deficient housing units occupied by low- and moderate-income households
such that, after rehabilitation, these units will comply with the
New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
(3)
Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds.
(4)
All rehabilitated units shall remain affordable to low- and moderate-income
households for a period of 10 years (the control period). For owner-occupied
units the control period will be enforced with a lien, and for renter-occupied
units the control period will be enforced with a deed restriction.
(5)
The Township shall dedicate a minimum of $10,000 for each unit to
be rehabilitated through this program, reflecting the minimum hard
cost of rehabilitation for each unit.
(6)
The Township shall adopt a resolution committing to fund any shortfall
in the rehabilitation programs for the Township.
(7)
The Township shall designate, subject to the approval of COAH, one
or more administrative agents to administer the rehabilitation program
in accordance with N.J.A.C. 5:93. The administrative agent(s) shall
provide a rehabilitation manual for the owner occupancy rehabilitation
program and a rehabilitation manual for the rental occupancy rehabilitation
program to be adopted by resolution of the governing body and subject
to approval of COAH. Both rehabilitation manuals shall be available
for public inspection in the office of the Township Clerk and in the
office(s) of the administrative agent(s).
(8)
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9
and UHAC, but shall be administered in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is rerented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
B.
Inclusionary zoning.
(1)
To implement the fair share plan in a manner consistent with the
terms of the settlement agreement, ensure the efficient use of land
through compact forms of development and to create realistic opportunities
for the construction of affordable housing, inclusionary zoning shall
be permitted consistent with the provisions of the Township's Housing
Element and Fair Share Plan.
(2)
Any townhouse, garden apartment, mixed-use development or other multiple-family
residential development that will contain five or more dwelling units
shall comply with the following:
(a)
A minimum of 15% of the total number of units shall be set aside
as affordable housing units if the affordable units will be for rent.
If the calculation of the total number of affordable units required
yields a fraction of less than 0.5, then either a prorated payment
in lieu or one additional unit shall be provided. If the calculation
of the total number of affordable units required yields a fraction
greater than 0.5, the obligation shall be rounded up, and the additional
unit shall be provided.
(b)
A minimum of 20% of the total number of units shall be set aside
as affordable housing units if the affordable units will be for sale.
If the calculation of the total number of affordable units required
yields a fraction of less than 0.5, then either a prorated payment
in lieu or one additional unit shall be provided. If the calculation
of the total number of affordable units required yields a fraction
of greater than 0.5, the obligation shall be rounded up, and the additional
unit shall be provided.
(c)
At least half of all affordable units shall be affordable to
low-income households, and the remainder may be affordable to moderate-income
households. Within rental developments, at least 13% of the affordable
units shall be affordable to very-low-income households, with the
very-low-income units counted as part of the low-income requirement.
(3)
Any property in the Township that is currently zoned for nonresidential uses and that is subsequently rezoned for residential purposes or receives a use variance to permit residential development, or that is currently zoned for residential uses and that receives a zoning change or a density variance to permit higher density multifamily residential development at a density of at least six units per acre and not less than twice the previously permitted density, 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 provisions of Subsection B(2)(c) above shall also apply.
(4)
Inclusionary developments shall adhere to the following project phasing
schedule:
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
|
100
|
90
|
C.
New construction.
(1)
Low/moderate split and bedroom distribution of affordable housing
units.
(a)
The fair share obligation shall be divided equally between low-
and moderate-income units, except that where there is an odd number
of affordable housing units, the extra unit shall be a low-income
unit. At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of median income).
The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(b)
At least 25% of the obligation shall be met through rental units,
including at least 1/2 in rental units available to families.
(c)
A maximum of 25% of the Township's obligation may be met with
age-restricted units. At least half of all affordable units in the
Township's Plan shall be available to families.
(d)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(e)
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
[1]
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
[2]
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
[3]
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
[4]
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(f)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
(2)
Accessibility requirements.
(a)
The first floor of all restricted townhouse dwelling units and
all restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
(b)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
[1]
An adaptable toilet and bathing facility on the first floor;
and
[2]
An adaptable kitchen on the first floor; and
[3]
An interior accessible route of travel on the first floor; and
[4]
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
[5]
If not all of the foregoing requirements in Subsection C(2)(b)[1] through [4] can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection C(2)(b)[1] through [4] above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
[6]
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Township has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[a]
Where a unit has been constructed with an adaptable
entrance, upon the request of a person with disabilities who is purchasing
or will reside in the dwelling unit, an accessible entrance shall
be installed.
[b]
To this end, the builder of restricted units shall
deposit funds within the Township Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[c]
The funds deposited under paragraph [6][b] above
shall be used by the Township for the sole purpose of making the adaptable
entrance of an affordable unit accessible when requested to do so
by a person with a disability who occupies or intends to occupy the
unit and requires an accessible entrance.
[d]
The developer of the restricted units shall submit
a design plan and cost estimate to the Township Construction Official
for the conversion of adaptable to accessible entrances.
[e]
Once the Construction Official has determined that
the design plan to convert the unit entrances from adaptable to accessible
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 Chief Financial Officer who shall ensure that the
funds are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[f]
Full compliance with the foregoing provisions shall
not be required where an entity can demonstrate that it is 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.
(3)
Maximum rents and sales prices.
(a)
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC, utilizing the regional income limits established by COAH
or a successor entity.
(b)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(c)
The developers and/or municipal sponsors of restricted rental
units shall establish at least one rent for each bedroom type for
both low-income and moderate-income units, provided that at least
13% of all low- and moderate-income rental units shall be affordable
to very-low-income households, earning 30% or less of the regional
median household income, with such very-low-income units counted toward
the low-income housing requirement.
(d)
The maximum sales price of restricted ownership units within
each affordable development shall be affordable to households earning
no more than 70% of median income, and each affordable development
must achieve an affordability average of 55% for restricted ownership
units; in achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(e)
In determining the initial sales prices and rent levels for
compliance with the affordability average requirements for restricted
units other than assisted living facilities and age-restricted developments,
the following standards shall be used:
[1]
A studio unit shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
[3]
A two-bedroom unit shall be affordable to a three-person household;
[4]
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
[5]
A four-bedroom unit shall be affordable to a six-person household.
(f)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
(g)
The initial purchase price for all restricted ownership units
shall be calculated so that the monthly carrying cost of the unit,
including principal and interest (based on a mortgage loan equal to
95% of the purchase price and the Federal Reserve H.15 rate of interest),
taxes, homeowner and private mortgage insurance and condominium or
homeowner association fees do not exceed 28% of the eligible monthly
income of the appropriate size household as determined under N.J.A.C.
5:80-26.4, as may be amended and supplemented; provided, however,
that the price shall be subject to the affordability average requirement
of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(h)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(i)
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price.
(j)
The rent of low- and moderate-income units may be increased
annually based on the permitted percentage increase in the regional
income limits chart. 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.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.
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 HUD 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.
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 chapter for a period of at least 30 years and thereafter until
Clinton Township takes action by ordinance to release the unit from
such requirements; prior to such action, a restricted ownership unit
shall remain subject to the requirements of N.J.A.C. 5:80-26.1, as
may be amended and supplemented, except that, for any units approved
after October 13, 2016, such controls shall be for at least 50 years,
or until such time after the initial fifty-year period as the Township
elects by ordinance to release the unit from such requirements.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the administrative agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.
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 chapter, 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.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
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 Uniform Construction 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.
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
B.
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.
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.
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.
A.
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.
Notwithstanding the foregoing, however, the administrative agent
may, upon approval by the Township Mayor and Council, and subject
to the court's approval, permit moderate-income purchasers to buy
low-income units in housing markets if the administrative agent determines
that there is an insufficient number of eligible low-income purchasers
to permit prompt occupancy of the units. All such low-income units
to be sold to moderate-income households shall retain the required
pricing and pricing restrictions for low-income units.
C.
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.
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.
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.
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.
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 adds 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.
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.
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 chapter for a period of at least 30 years and thereafter until
the Township takes action by ordinance to release the unit from such
requirements. Prior to such action, a restricted rental unit shall
remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be
amended and supplemented, except that, for any units approved after
October 13, 2016, such controls shall be for at least 50 years, or
until such time after the initial fifty-year period as the Township
elects by ordinance to release the unit from such requirements. For
new projects receiving low-income-housing tax credits of 9%, a control
period of not less than a thirty-year compliance period plus a fifteen-year
extended use period shall be required.
B.
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 Hunterdon. The deed shall also identify each affordable
unit by apartment number and/or address and whether that unit is designated
as a very-low-, low- or moderate-income unit. Neither the unit nor
its affordability designation shall change throughout the term of
the deed restriction. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease. A copy of the current lease
for each restricted rental unit shall be provided to the administrative
agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the administrative agent.
C.
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 chapter.
D.
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
A.
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)
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)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.
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)
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)
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)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
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.
A.
The Township shall appoint a specific municipal employee to serve
as a municipal housing liaison responsible for administering the affordable
housing program, including affordability controls, the affirmative
marketing plan, monitoring and reporting, and, where applicable, supervising
any contracted administrative agent. The Township shall adopt an ordinance
creating the position of municipal housing liaison. The Township shall
adopt a resolution appointing a municipal housing liaison. The municipal
housing liaison shall be appointed by the governing body and may be
a full- or part-time municipal employee. The municipal housing liaison
shall be approved by the court and shall be duly qualified through
a training program sponsored by Affordable Housing Professionals of
New Jersey before assuming the duties of municipal housing liaison.
B.
The municipal housing liaison shall be responsible for oversight
and administration of the affordable housing program for Clinton Township,
including the following responsibilities which may not be contracted
out to the administrative agent:
(1)
Serving as the Township's primary point of contact for all inquiries
from the state, affordable housing providers, administrative agents
and interested households;
(2)
Monitoring the status of all restricted units in Clinton Township's
Fair Share Plan;
(3)
Compiling, verifying and submitting annual monitoring reports as
may be required by the court;
(4)
Coordinating meetings with affordable housing providers and administrative
agents, as needed; and
(5)
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed.
C.
Subject to the approval of the court, the Township shall designate
one or more administrative agent(s) to administer newly constructed
affordable units in accordance with UHAC. An operating manual for
each affordable housing program shall be provided by the administrative
agent(s) to be adopted by resolution of the governing body and subject
to approval of the court. The operating manual(s) shall be available
for public inspection in the office of the Township Clerk, in the
office of the municipal housing liaison, and in the office(s) of the
administrative agent(s). The municipal housing liaison shall supervise
the contracting administrative agent(s).
The administrative agent shall be an independent entity serving
under contract to and reporting to the Township. For new sale and
rental developments, all of the fees of the administrative agent shall
be paid by the owners of the affordable units for which the services
of the administrative agent are required. For resales, single-family
homeowners and condominium homeowners shall be required to pay 3%
of the sales price for services provided by the administrative agent
related to the resale of their homes. That fee shall be collected
at closing and paid directly to the administrative agent. The administrative
agent shall perform the duties and responsibilities of an administrative
agent as set forth in UHAC, including those set forth in N.J.A.C.
5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof, which include:
A.
Affirmative marketing.
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Township's affirmative marketing
plan and the provisions of N.J.A.C. 5:80-26.15; and
(2)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B.
Household certification.
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)
Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendixes J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5)
Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
and
(6)
Employing a random selection process as provided in the affirmative
marketing plan of the Township when referring households for certification
to affordable units.
C.
Affordability controls.
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Hunterdon
County Register of Deeds or County Clerk's office after the termination
of the affordability controls for each restricted unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
D.
Resales and rentals.
(1)
Instituting and maintaining an effective means of communicating information
between owners and the administrative agent regarding the availability
of restricted units for resale or rental; and
(2)
Instituting and maintaining an effective means of communicating information
to low- and moderate-income households regarding the availability
of restricted units for resale or rerental.
E.
Processing requests from unit owners.
(1)
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 chapter;
(2)
Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to make capital improvements to the units
that would affect the selling price, such authorizations to be limited
to those improvements resulting in additional bedrooms or bathrooms
and the depreciated cost of central-air-conditioning systems;
(3)
Notifying the Township of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units for
hardship waivers.
F.
Enforcement.
(1)
Securing annually from the Township 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;
(2)
Securing from all developers and sponsors of restricted units, at
the earliest point of contact in the processing of the project or
development, written acknowledgement of the requirement that no restricted
unit can be offered, or in any other way committed, to any person,
other than a household duly certified to the unit by the administrative
agent;
(3)
Posting annually in all rental properties, including two-family homes,
of a notice as to the maximum permitted rent together with the telephone
number of the administrative agent where complaints of excess rent
or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling units,
reminding them of the notices and requirements outlined in N.J.A.C.
5:80-26.18(d)4;
(5)
Establishing a program for diverting unlawful rent payments to the
Township's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each affordable
housing program administered by the administrative agent, to be approved
by the Township Mayor and Council and the court, setting forth procedures
for administering the affordability controls.
G.
Additional responsibilities.
(1)
The administrative agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(2)
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.
(3)
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.
The Township shall adopt by resolution an affirmative marketing plan,
subject to approval of the court, that is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B.
The affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The affirmative
marketing plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
In addition, as a result of the settlement agreement with the Fair
Share Housing Center, the affirmative marketing plan shall require
the notification of the New Jersey State NAACP, the Trenton Branch
of the NAACP, Fair Share Housing Center, Supportive Housing Association
and the Latino Action Network of affordable housing opportunities.
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.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in Housing Region 3, comprised
of Hunterdon, Somerset and Middlesex Counties.
D.
The Township has the ultimate responsibility for adopting the affirmative
marketing plan and for the proper administration of the affirmative
marketing program, including initial sales and rentals and resales
and rerentals. The administrative agent designated by the Township
shall implement the affirmative marketing plan to assure the affirmative
marketing of all affordable units.
E.
In implementing the affirmative marketing plan, the administrative
agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F.
The affirmative marketing plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the affirmative marketing plan, the administrative agent shall consider
the use of language translations where appropriate.
G.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
H.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the Township in which the units are located; and the developer's rental
office. Preapplications shall be e-mailed or mailed to prospective
applicants upon request.
I.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the Township
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.
B.
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 Township
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)
The Township 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)
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)
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 Affordable Housing Trust Fund of
the gross amount of rent illegally collected;
(c)
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)
The Township 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)
The judgment shall be enforceable, at the option of the Township,
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 Township,
including attorneys' fees. The violating owner shall have his right
to possession terminated as well as his title conveyed pursuant to
the sheriff's sale.
(b)
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 Township 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
Township 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 Township 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 Township 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 Township 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 Township. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the Township, whether such balance
shall be paid to the owner or forfeited to the Township.
(c)
Foreclosure by the Township 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)
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 Township 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)
Failure of the low- and moderate-income unit to be either sold
at the sheriff's sale or acquired by the Township shall obligate the
owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the Township, 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)
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 chapter shall be filed in writing with the court.