[HISTORY: Adopted by the Mayor and Board
of Aldermen of the Town of Boonton as indicated in article histories.
Amendments noted where applicable.]
[Adopted by Ord. No. 30-1994[1]; amended 8-20-2018 by Ord. No. 16-2018]
A.
In Holmdel Builder's Association v. Holmdel Township, 121 N.J.
550 (1990), the New Jersey Supreme Court determined that mandatory
development fees are authorized by the Fair Housing Act of 1985 (the
Act), N.J.S.A. 52:27D-301 et seq., and the State Constitution, subject
to the Council on Affordable Housing's (COAH's) adoption
of rules.
B.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2)
and the Statewide Non-residential Development Fee Act (N.J.S.A. 40:55D-8.1
through 40:55D-8.7), COAH is authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that are under the jurisdiction of
the Council or court of competent jurisdiction and have a COAH-approved
spending plan may retain fees collected from nonresidential development.
C.
This article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance with P.L. 2008, c. 46, §§ 8 and 32
through 38. Fees collected pursuant to this article shall be used
for the sole purpose of providing low- and moderate-income housing.
This article shall be interpreted within the framework of COAH's
rules on development fees, codified at N.J.A.C. 5:93-8.[1]
[1]
Editor's Note: N.J.A.C. 5:93-8.1 et seq. expired 10-16-2016.
D.
This article shall not be effective until approved by COAH pursuant
to N.J.A.C. 5:93-8.8(a).
As used in this article, the following terms shall have the
meanings indicated:
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100%-affordable development.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act[1] which previously had primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the state. Pursuant to the opinion and order of the
New Jersey Supreme Court dated March 10, 2015, in the matter of "In
re Adoption of N.J.A.C. 5:96 and 5:97 by N.J. Council on Affordable
Housing (M-392-14) 067126," any reference to COAH or the Council shall
be understood to refer to the Superior Court of New Jersey, Law Division-Morris
County.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
Money paid by developer for the improvement of property as
permitted in N.J.A.C. 5:93-8.[2]
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with §§ 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A.
Imposed fees.
(1)
Within all zone districts, residential developers, except for developers
of the types of development specifically exempted below, shall pay
a fee of 1% of the equalized assessed value for residential development,
provided no increased density is permitted.
(2)
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5)
(known as a "d" variance) has been permitted, developers may be required
to pay a development fee of 6% of the equalized assessed value for
each additional unit that may be realized. However, if the zoning
on a site has changed during the two-year period preceding the filing
of such a variance application, the base density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the variance application.
B.
Eligible exactions, ineligible exactions and exemptions for residential
development.
(1)
Developers of low- and moderate-income units shall be exempt from
paying development fees.
(2)
Developments that have received preliminary or final approval prior
to the effective date of the Town's amended development fee ordinance
shall be subject to the law in effect at the time of such approval,
unless the developer seeks a substantial change in the approval.
(3)
All single-family residential additions, renovations and accessory
structures shall be exempt; however, all new residential dwelling
units shall be subject to a development fee.
(4)
All multifamily additions, renovations and accessory structures not
requiring site plan approval shall be exempt; however, all new residential
dwelling units shall be subject to a development fee.
A.
Imposed fees.
(1)
Within all zoning districts, nonresidential developers, except for
developers of the types of development specifically exempted, shall
pay a fee equal to 2.5% of the equalized assessed value of the land
and improvements for all new nonresidential construction on an unimproved
lot or lots.
(2)
Nonresidential developers, except for developers of the types of
development specifically exempted, shall also pay a fee equal to 2.5%
of the increase in equalized assessed value resulting from any additions
to existing structures to be used for nonresidential purposes.
(3)
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement
at the time final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
B.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development.
(1)
The nonresidential portion of a mixed-use inclusionary or market-rate
development shall be subject to the 2.5% development fee, unless otherwise
exempted below.
(2)
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within existing footprint,
reconstruction, renovations and repairs.
(3)
The 2.5% fee shall not apply to developers of any not-for-profit
use; federal, state and municipal government uses; churches and other
places of worship; and public schools.
(4)
Nonresidential developments shall be exempt from the payment of nonresidential
development fees in accordance with the exemptions required pursuant
to P.L. 2008, c. 46,[1] as specified in the Form N-RDF "State of New Jersey Non-Residential
Development Certification/Exemption" form. Any exemption claimed by
a developer shall be substantiated by that developer.
[1]
Editor's Note: See N.J.S.A. 52:27D-329.2 et seq.
(5)
A developer of a nonresidential development exempted from the nonresidential
development fee pursuant to P.L. 2008, c. 46, shall be subject to
it at such time the basis for the exemption no longer applies, and
shall make the payment of the nonresidential development fee, in that
event, within three years after that event or after the issuance of
the final certificate of occupancy of the nonresidential development,
whichever is later.
(6)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Town of Boonton as a lien against the real
property of the owner.
A.
Upon
the granting of a preliminary, final or other applicable approval
for a development, the applicable approving authority shall direct
its staff to notify the Construction Official responsible for the
issuance of a building permit.
B.
For
nonresidential developments only, the developer shall also be provided
with a copy of Form N-RDF "State of New Jersey Non-Residential Development
Certification/Exemption," to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
C.
The
Construction Official responsible for the issuance of a building permit
shall notify the local Tax Assessor of the issuance of the first building
permit for a development which is subject to a development fee.
D.
Within
90 days of receipt of that notice, the Municipal Tax Assessor, based
on the plans filed, shall provide an estimate of the equalized assessed
value of the development.
E.
The Construction Official responsible for the issuance of a final
certificate of occupancy notifies the local Assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
F.
Within 10 business days of a request for the scheduling of a final
inspection, the Municipal Assessor shall confirm or modify the previously
estimated equalized assessed value of the improvements of the development;
calculate the development fee; and thereafter notify the developer
of the amount of the fee.
G.
Should the Town of Boonton fail to determine or notify the developer
of the amount of the development fee within 10 business days of the
request for final inspection, the developer may estimate the amount
due and pay that estimated amount consistent with the dispute process
set forth in Subsection b of § 37 of P.L. 2008, c. 46 (N.J.S.A.
40:55D-8.6).
H.
Fifty percent of the development fee shall be collected at the time
of issuance of the building permit. The remaining portion shall be
collected at the issuance of the certificate of occupancy. The developer
shall be responsible for paying the difference between the fee calculated
at the time of issuance of the building permit and that determined
at issuance of the certificate of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge residential development fees imposed by
filing a challenge with the County Board of Taxation. Pending a review
and determination by the Board, collected fees shall be placed in
an interest-bearing escrow account by the Town of Boonton. Appeals
from a determination of the Board may be made to the tax court in
accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
(2)
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by the Town of Boonton.
Appeals from a determination of the Director may be made to the tax
court in accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
A.
There
is hereby created a separate, interest-bearing Housing Trust Fund
in the depository approved by the Town for the purpose of depositing
development fees from residential and nonresidential developers and
proceeds from the sale of units with extinguished controls. All development
fees paid by developers pursuant to this article shall be deposited
in this fund. No money shall be expended from the Housing Trust Fund
unless the expenditure conforms to a spending plan approved by COAH.
B.
The
following additional funds shall be deposited in the Housing Trust
Fund and shall at all times be identifiable by source and amount:
(1)
Payments in lieu of on-site construction of affordable units;
(2)
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(3)
Rental income from municipally operated units;
(4)
Repayments from affordable housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of affordable units; and
(7)
Any other funds collected in connection with the Town of Boonton's
affordable housing program.
C.
All interest accrued in the Housing Trust Fund shall only be used
on eligible affordable housing activities approved by COAH.
A.
Money
deposited in a Housing Trust Fund may be used for any activity approved
by COAH for addressing the Town's low- and moderate-income housing
obligation and may be set up as a grant or revolving loan program.
Such activities may include, but are not limited to: preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls; housing rehabilitation; new construction of
affordable housing units and related costs; conversion of existing
nonresidential buildings to create new affordable units; green building
strategies designed to be cost-saving and in accordance with accepted
national or state standards; the purchase of land for low- and moderate-income
housing; improvement of land to be used for affordable housing; extensions
and/or improvements of roads and infrastructure to low- and moderate-income
housing sites; assistance designed to render units to be more affordable
to low- and moderate-income people; administrative costs necessary
to implement the Town of Boonton's housing element, or any other
activity as permitted pursuant to N.J.A.C. 5:93-8.[1] The expenditure of all money shall conform to a spending
plan approved by COAH.
[1]
Editor's Note: N.J.A.C. 5:93-8.1 et seq. expired 10-16-2016.
B.
At
least 30% of all development fees collected and interest earned shall
be used to provide affordability assistance to low- and moderate-income
households in affordable units included in the municipal Fair Share
Plan. One-third of the affordability assistance portion of development
fees collected shall be used to provide affordability assistance to
those households earning 30% or less of median income by region.
(1)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and
special assessments, and assistance with emergency repairs.
(2)
Affordability assistance to households earning 30% or less of median
income may include buying down the cost of low- or moderate-income
units in the Municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income.
(3)
Payments in lieu of constructing affordable units on site and funds
from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
C.
No more than 20% of the revenues collected from development fees
shall be expended on administrative costs necessary to develop, revise
or implement the housing element. Examples of eligible administrative
activities include but are not limited to salaries and benefits for
municipal employees or consultant fees necessary to develop or implement
a new construction program, a Housing Element and Fair Share Plan,
and/or an affirmative marketing program. Administrative funds may
be used for income qualification of households, monitoring the turnover
of sale and rental units, and compliance with COAH's monitoring
requirements. Legal or other fees related to litigation opposing affordable
housing sites or objecting to the Council's regulations and/or
action are not eligible uses of the Housing Trust Fund.
D.
Development fee revenues shall not be expended to reimburse the Town
of Boonton for past housing activities.
E.
The Town of Boonton may contract with a private or public entity
to administer any part of its Housing Element and Fair Share Plan,
including the requirement for affordability assistance.
The Town of Boonton shall complete and return to COAH all monitoring
forms included in monitoring requirements related to the collection
of development fees from residential and nonresidential developers,
payments in lieu of constructing affordable units on site, funds from
the sale of units with extinguished controls, barrier-free escrow
funds, rental income, repayments from affordable housing program loans,
and any other funds collected in connection with the Town of Boonton's
housing program, as well as to the expenditure of revenues and implementation
of the plan certified by COAH. All monitoring reports shall be completed
on forms designed by COAH.
The ability for the Town of Boonton to impose, collect and expend
development fees shall expire with its substantive certification or
judgment of compliance unless the Town of Boonton has filed an adopted
Housing Element and Fair Share Plan with COAH, has petitioned for
substantive certification or judgment of compliance, and has received
COAH's approval of its development fee ordinance. If the Town
of Boonton fails to renew its ability to impose and collect development
fees prior to the expiration of substantive certification or judgment
of compliance, it may be subject to forfeiture of any or all funds
remaining within its municipal trust fund. Any funds so forfeited
shall be deposited into the "New Jersey Affordable Housing Trust Fund"
established pursuant to § 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320). The Town of Boonton shall not impose a residential development
fee on a development that receives preliminary or final site plan
approval after the expiration of its substantive certification or
judgment of compliance, nor shall the Town of Boonton retroactively
impose a development fee on such a development. The Town of Boonton
shall not expend development fees after the expiration of its substantive
certification or judgment of compliance.
[Adopted 8-20-2018 by Ord. No. 15-2018[1]]
[1]
Editor's Note: This ordinance also repealed former Article
II, Affirmative Marketing, adopted 2-3-1997 by Ord. No. 2-1997; Article
III, Growth Share, adopted 8-20-2007 by Ord. No. 14-2007; and Article
IV, Compliance with Prior-Round and Third-Round Affordable Housing
Obligations, adopted 2-1-2010 by Ord. No. 2-2010.
A.
This article is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
and that low- and moderate-income households shall occupy these units.
This article shall apply except where inconsistent with applicable
law.
B.
The Town of Boonton Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. (hereinafter "Fair Share Plan"). The Fair Share Plan
was subsequently endorsed by the governing body. The Fair Share Plan
describes how the Town of Boonton shall address its fair share of
low- and moderate-income housing as documented in the Fair Share Plan
itself, the settlement agreement entered into between the Town and
Fair Share Housing Center ("FSHC") on March 22, 2018 (hereinafter
"FSHC Settlement Agreement"), and the court order approving same,
which was entered by the Court on May 4, 2018, after a properly noticed
fairness hearing.
C.
The Town of Boonton shall track the status of the implementation
of the Fair Share Plan.
The Town of Boonton shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Court-approved Housing Element and Fair Share Plan:
A.
Beginning one year after the entry of the Town's Round 3 Judgment
of Compliance and Repose, and on every anniversary of that date through
2025, the Town agrees to provide annual reporting of its Affordable
Housing Trust Fund activity to the New Jersey Department of Community
Affairs, Council on Affordable Housing, or Local Government Services,
or other entity designated by the State of New Jersey, with a copy
provided to Fair Share Housing Center (FSHC) and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs (NJDCA), Council on Affordable Housing
(COAH), or Local Government Services (NJLGS). 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.
Beginning one year after the entry of the Town's Round 3 Judgment
of Compliance and Repose, and on every anniversary of that date through
2025, the Town agrees to provide annual reporting of the status of
all affordable housing activity within the municipality through posting
on the municipal website with a copy of such posting provided to Fair
Share Housing Center, using forms previously developed for this purpose
by COAH, or any other forms endorsed by the Court and FSHC.
C.
The Fair Housing Act includes two provisions regarding action to
be taken by the Town during its ten-year repose period. The Town will
comply with those provisions as follows:
(1)
For the midpoint realistic opportunity review due on July 2, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Town will post on
its municipal website, with a copy provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether the mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the Town, with a copy to
Fair Share Housing Center, regarding whether any sites no longer present
a realistic opportunity and should be replaced and whether the mechanisms
to meet unmet need should be revised or supplemented. Any interested
party may by motion request a hearing before the Court regarding these
issues.
(2)
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 Town's Judgement of Compliance and Repose, and
every third year thereafter, the Town will post on its municipal website,
with a copy provided to 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 Town and
Fair Share Housing Center on the issue of whether the Town has complied
with its very-low-income housing obligation under the terms of this
settlement.
(3)
In addition to the foregoing postings, the Town may also elect to
file copies of its reports with COAH or its successor agency at the
state level.
As used in this article, the following terms shall have the
meanings indicated:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.) as has been subsequently amended.
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.[1]
The entity responsible for the administration of affordable
units in accordance with this article, applicable COAH regulations
and the Uniform Housing Affordability Controls (UHAC) (N.J.A.C. 5:80-26.1
et seq.).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; in the case of an ownership unit,
that the sales price for the unit conforms to the standards set forth
in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in
the case of a rental unit, that the rent for the unit conforms to
the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development, all or a portion of which consists
of restricted units.
A development included in the Town's Fair Share Plan,
and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100%-affordable development.
Any mechanism in the Town's Fair Share Plan prepared
or implemented to address the Town's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC Settlement Agreement,
or an order of the Court.
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 housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) 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.
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. "Alternative living arrangement" includes, but is not limited
to: transitional facilities for the homeless, Class A, B, C, D, and
E boarding homes as regulated by the 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 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 New Jersey Council on Affordable Housing.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
A development containing both affordable units and market-rate
units. Inclusionary developments must have a minimum 20% set-aside
of affordable units if the development has five or more units and
is a for-sale project, or a minimum 15% set-aside if the development
is a rental project. This term includes, but is not necessarily limited
to: new construction, the conversion of a nonresidential structure
to residential and the creation of new affordable units through the
reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to: weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by the Department.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Boonton.
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 the Department's adopted Regional Income Limits
published annually by the Department.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Department of Community Affairs of the State of New Jersey
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
[1]
Editor's Note: See N.J.A.C. 5:23-3.14.
A.
The provisions of this article shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Town of Boonton pursuant
to the Town's most recently adopted Housing Element and Fair
Share Plan.
B.
Moreover, this article shall apply to all developments that contain
low-and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
A.
The Town of Boonton'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.
B.
Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds.
C.
All rehabilitated units shall remain affordable to low- and moderate-income
households for a certain period (the control period). For owner-occupied
units, the control period shall be six years and will be enforced
with a lien. For renter-occupied units, the control period shall be
10 years and will be enforced with a deed restriction.
D.
The Town of Boonton shall dedicate an average of $10,000 for each
unit to be rehabilitated through this program, inclusive of administrative
and actual rehabilitation costs. The Town shall provide $2,000 per
unit towards administration and $8,000 per unit for rehabilitation
activity to total $10,000 per unit.
E.
The Town of Boonton shall adopt a resolution committing to fund any
shortfall in the rehabilitation program for the Town of Boonton.
F.
The Town of Boonton shall designate, subject to the approval of the
Court, one or more administrative agents to administer the rehabilitation
program in accordance COAH rules. 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 the Court. Both rehabilitation manuals shall be available
for public inspection in the Office of the Town Clerk and in the office(s)
of the administrative agent(s).
G.
Units in a rehabilitation program shall be exempt from Uniform Housing
Affordability Controls (UHAC), but shall be administered in accordance
with the following:
(1)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented 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 UHAC.
(2)
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 UHAC.
(4)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with UHAC, except that households in owner-occupied
units shall be exempt from the regional asset limit.
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(1)
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that
the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the Court;
(2)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: N.J.A.C. 5:93-5.8 expired 10-16-2016.
B.
Alternative living arrangements shall have at least ten-year controls
on affordability in accordance with N.J.A.C. 5:93-5.8(d), unless an
alternative commitment is approved by the Court.
C.
The service provider for the alternative living arrangement shall
act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
In inclusionary developments, the following schedule shall be
followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25
|
0
|
|
25+1
|
10
|
|
50
|
50
|
|
75
|
75
|
|
90
|
100
|
A.
Low/moderate split and bedroom distribution of affordable housing
units:
(1)
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 regional median
income by household size). The very-low-income units shall be counted
as part of the required number of low-income units within the development.
At least 50% of the very-low-income units must be available to families.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements:
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7 and the following:
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(e)
If all of the foregoing requirements in Subsection B(2)(a) through (d) cannot be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
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 Boonton has collected funds from the developer
sufficient to make 10% of the adaptable entrances in the development
accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Town of Boonton's Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Town of Boonton for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Town of
Boonton for the conversion of adaptable to accessible entrances.
[5]
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 Town's Affordable Housing Trust Fund in care of
the Town's Chief Financial Officer, who shall ensure that the
funds are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
(g)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
D.
Maximum rents and sales prices:
(1)
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(3)
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, which very-low-income units shall be part of the low-income
requirement.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability, average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(5)
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, the
following standards shall be used:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
(7)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(9)
Income limits for all units that are part of the Town's Housing
Element and Fair Share Plan, and for which income limits are not already
established through a federal program exempted from the Uniform Housing
Affordability Controls pursuant to N.J.A.C. 5:80-26.1, shall be updated
by the Town annually within 30 days of the publication of determinations
of median income by HUD as follows:
(a)
The income limit for a moderate-income unit for a household
of four shall be 80% of the HUD determination of the median income
for COAH Region 2 for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the median income for COAH Region 2 for a family of four. The income
limit for a very-low-income unit for a household of four shall be
30% of the HUD determination of the median income for COAH Region
2 for a family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than the previous
year.
(10)
In establishing sale prices and rents of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC, utilizing the regional income limits established by the Council:
(a)
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 determined pursuant to Subsection D(9). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
(b)
The rents of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the Northern New Jersey Area, upon
its publication for the prior calendar year. 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 the NJDCA 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 article for a period of at least 30 years, until Boonton takes
action to release the unit from such requirements; prior to such action,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B.
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 Town's administrative agent,
or an administrative agent appointed by a particular developer, 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 Town's administrative agent,
or an administrative agent appointed by a particular developer, a
recapture note obligating the purchaser (as well as the purchaser's
heirs, successors and assigns) to repay, upon the first nonexempt
sale after the unit's release from the restrictions set forth
in this article, an amount equal to the difference between the unit's
nonrestricted fair-market value and its restricted price, and the
recapture note shall be secured by a recapture lien evidenced by a
duly recorded mortgage on the unit.
E.
The affordability controls set forth in this article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the Town's administrative agent, or an administrative
agent appointed by a particular developer.
B.
The Town's administrative agent, or an administrative agent
appointed by a particular developer, 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, unless the master deed for the inclusionary
project was executed prior to the enactment of UHAC.
D.
The owners of restricted ownership units may apply to the Town's
administrative agent, or an administrative agent appointed by a particular
developer, 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.
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 Town's administrative
agent, or an administrative agent appointed by a particular developer,
for a determination, in writing, that the proposed indebtedness complies
with the provisions of this article, and the Town's administrative
agent, or an administrative agent appointed by a particular developer,
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 Town's administrative agent, or an administrative agent appointed
by a particular developer, in accordance with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units may apply to the Town's
administrative agent, or an administrative agent appointed by a particular
developer, to increase the maximum sales price for the unit on the
basis of capital improvements made since the purchase of the unit.
Eligible capital improvements shall be those that render the unit
suitable for a larger household or that add an additional bathroom.
In no event shall the maximum sales price of an improved housing unit
exceed the limits of affordability for the larger household.
B.
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 Town's administrative
agent, or an administrative agent appointed by a particular developer,
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 Town's
administrative agent or an administrative agent appointed by a particular
developer. Unless otherwise approved by the Town's administrative
agent or an administrative agent appointed by a particular developer,
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 article for a period of at least 30 years, until Boonton takes
action to release the unit from such requirements. Prior to such action,
a restricted rental unit must remain subject to the requirements of
N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B.
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 Morris. A copy of the filed document shall be provided
to the Town's 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 article 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 Town's
administrative agent, or an administrative agent appointed by a particular
developer.
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 Town's administrative agent, or an administrative
agent appointed by a particular developer.
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 developer and/or landlord or to the Town's
administrative agent, or an administrative agent appointed by a particular
developer. If the fees are paid to the Town's administrative
agent, or an administrative agent appointed by a particular developer,
they are to be applied to the costs of administering the controls
applicable to the unit as set forth in this article.
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 article.
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 the regional
median household income by household size.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
household income by household size.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median household
income by household size.
B.
The Town's administrative agent, or an administrative agent
appointed by a particular developer, 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.
The position of Municipal Housing Liaison (MHL) for the Town of Boonton shall be regulated pursuant to Chapter 45, Article VII, "Municipal Housing Liaison," of the Code of the Town of Boonton, as may be amended and supplemented. The Town shall make the actual appointment of the MHL by means of a resolution.
An administrative agent may be either an independent entity
serving under contract to and reporting to the Town, or reporting
to a specific individual developer. The fees of the administrative
agent shall be paid by the owners of the affordable units for which
the services of the administrative agent are required. The Town administrative
agent shall monitor and work with any individual administrative agents
appointed by individual developers. The administrative agent(s) 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,
16 and 18 thereof, which include:
A.
Affirmative marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Town of Boonton 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;
(6)
Employing a random selection process as provided in the affirmative
marketing plan of the Town of Boonton when referring households for
certification to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Town of Boonton: Fair Share Housing Center, the
New Jersey State Conference of the NAACP, the Latino Action Network,
the Morris County Chapter of the NAACP, Newark NAACP, East Orange
NAACP, Housing Partnership for Morris County, Community Access Unlimited,
Inc., Northwest New Jersey Community Action Program, Inc. (NORWESCAP),
Homeless Solutions of Morristown, and the Supportive Housing Association.
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 Morris
County Register of Deeds or Morris 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 rerentals:
(1)
Instituting and maintaining an effective means of communicating information
between owners and the Town's administrative agent, or any administrative
agent appointed by a specific developer, regarding the availability
of restricted units for resale or rerental; and
(2)
Instituting and maintaining an effective means of communicating information
to low- (or very-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 article;
(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 municipality 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 municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(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 Town's
administrative agent, or any administrative agent appointed by a specific
developer;
(3)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the Town's administrative agent, or any administrative
agent appointed by a specific developer, 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
Town's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each affordable
housing program administered by the Town's administrative agent,
or any administrative agent appointed by a specific developer, to
be approved by the Town's Board of Aldermen and the Court, setting
forth procedures for administering the affordability controls.
G.
Additional responsibilities:
(1)
The Town's administrative agent shall have the authority to
take all actions necessary and appropriate to carry out its responsibilities
hereunder.
(2)
The Town's administrative agent shall prepare monitoring reports
for submission to the Municipal Housing Liaison in time to meet the
Court-approved monitoring and reporting requirements in accordance
with the deadlines set forth in this article. The Town's administrative
agent will be responsible for collecting monitoring information from
any administrative agents appointed by specific developers.
(3)
The Town's administrative agent, or any administrative agent
appointed by a specific developer, shall attend continuing education
sessions on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.
The Town of Boonton shall adopt by resolution an affirmative marketing
plan 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.
It is a continuing program that directs marketing activities toward
Housing Region 2 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 2, comprised
of Essex, Morris, Union and Warren Counties.
D.
The Town 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 Town's administrative agent designated by
the Town of Boonton, or any administrative agent appointed by a specific
developer, shall implement the affirmative marketing plan to assure
the affirmative marketing of all affordable units.
E.
In implementing the affirmative marketing plan, the Town's administrative
agent, or any administrative agent appointed by a specific developer,
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 Town's administrative agent,
or any administrative agent appointed by a specific developer, 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 municipality in which the units are located; and the developer's
rental office. Applications shall be 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
an affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recoupment
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 municipality
may take the following action(s) against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation or violations of the regulations governing the
affordable housing unit. If the owner, developer or tenant is adjudged
by the Court to have violated any provision of the regulations governing
affordable housing units, the owner, developer or tenant shall be
subject to one or more of the following penalties, at the discretion
of the Court:
(a)
A fine of not more than $2,000 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 Town of Boonton 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 municipality may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the first purchase money mortgage and
shall constitute a lien against the low- or moderate-income unit.
(a)
The judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have his
right to possession terminated as well as his title conveyed pursuant
to the Sheriff's sale.
(b)
The proceeds of the Sheriff's sale shall first be applied
to satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for the full extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(c)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(e)
Failure of the low- and moderate-income unit to be either sold
at the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
Appeals from all decisions of an administrative agent appointed
pursuant to this article shall be filed, in writing, with the Court.
