[Added 9-26-2018 by Ord.
No. 15-2018]
[Added 9-26-2018 by Ord.
No. 17-2018]
A.
Purpose. This section is intended to ensure that any site that benefits
from a rezoning, variance or redevelopment plan approved by the Borough
or the Borough Planning/Zoning Board that results in multifamily residential
development of five dwelling units or more produces affordable housing
at a set-aside rate of 20%. This section shall apply except where
inconsistent with applicable law. This section will not apply to the
Borough's CDB, HBD, LI, R-TH and OR Zones, as said zones already have
affordable housing set-aside requirements.
B.
Affordable housing mandatory set-aside requirement.
(1)
If the Borough or the Borough's Planning Board permits the construction
of multifamily or single-family attached residential development that
is approvable and developable, as defined at N.J.A.C. 5:93-1.3,[1] the Borough or the Borough's Planning Board shall require
that an appropriate percentage of the residential units be set aside
for low- and moderate-income households. This requirement shall apply
beginning with the effective date the ordinance creating this section
was adopted to any multifamily or single-family attached residential
development, including the residential portion of a mixed-use project,
which consists of five or more new residential units, whether permitted
by a zoning amendment, a variance granted by the Borough's Planning
Board, or adoption of a redevelopment plan or amended redevelopment
plan in areas in need of redevelopment or rehabilitation. For any
such development for which the Borough's land use ordinances (e.g.,
zoning or an adopted redevelopment plan) already permitted residential
development as of the effective date the ordinance creating this section
was adopted, this requirement shall only apply if the Borough or the
Borough's Planning Board permits an increase in approvable and developable
gross residential density to at least twice the permitted approvable
and developable gross residential density as of the effective date
the ordinance creating this section was adopted. Nothing in this subsection
precludes the Borough or the Borough's Planning Board from imposing
an affordable housing set-aside in a development not required to have
a set-aside pursuant to this subsection consistent with N.J.S.A. 52:27D-311h
and other applicable law. For all inclusionary projects, the appropriate
set-aside percentage will be 20%. This requirement does not create
any entitlement for a property owner or applicant for a zoning amendment,
variance, or adoption of a redevelopment plan or amended redevelopment
plan in areas in need of redevelopment or rehabilitation, or for approval
of any particular proposed project. This requirement does not apply
to any sites or specific zones otherwise identified in the Borough's
settlement agreement with FSHC, which was executed by the Borough
on January 26, 2018, or in the Borough's 2018 Housing Element and
Fair Share Plan, for which density and set-aside standards shall be
governed by the specific standards set forth therein. As such, this
section will not apply to the Borough's CDB, HBD, LI, R-TH and OR
Zones, as said zones already have affordable housing set-aside requirements.
[1]
Editor’s Note: N.J.A.C. 5:93, Substantive Rules of the
New Jersey Council on Affordable Housing for the Period Beginning
June 6, 1994, expired on October 16, 2016. See: 43 N.J.R. 1203(a).
(2)
Furthermore, this section shall not apply to developments containing
four or fewer dwelling units. All subdivision and site plan approvals
of qualifying residential developments shall be conditioned upon compliance
with the provisions of this section. Where a developer demolishes
existing dwelling units and builds new dwelling units on the same
site, the provisions of this section shall apply only if the net number
of dwelling units is five or more.
A.
Purpose.
(1)
This section is intended to assure that very-low-, low-, and
moderate-income units ("affordable units") are created with controls
on affordability and that very-low-, low-, and moderate-income households
shall occupy these units. This section shall apply except where inconsistent
with applicable law.
(2)
The Borough of Atlantic Highlands 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 endorsed by the Borough Council. The Fair
Share Plan describes how the Borough of Atlantic Highlands shall address
its fair share of very-low-, low-, and moderate-income housing as
documented in the Fair Share Plan itself, the settlement agreement
entered into between the Borough and Fair Share Housing Center ("FSHC")
on January 26, 2018 (hereinafter "FSHC settlement agreement"), and
the Superior Court order approving same, which was entered by the
Court on May 24, 2018, after a properly noticed fairness hearing.
(3)
The Borough of Atlantic Highlands shall track the status of
the implementation of the Fair Share Plan.
B.
Monitoring and reporting requirements. The Borough of Atlantic Highlands
shall comply with the following monitoring and reporting requirements
regarding the status of the implementation of its Superior-Court-approved
Housing Element and Fair Share Plan:
(1)
Beginning one year after the entry of the Borough's Round 3
Judgment of Compliance and Repose, and on every anniversary of that
date through 2025, the Borough shall provide an annual report 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 report 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.
(2)
Beginning one year after approval of the settlement agreement
entered into between the Borough and FSHC after a fairness hearing,
and on every anniversary of that date through 2025, the Borough agrees
to provide an annual report 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 Superior Court-appointed Special
Master and FSHC.
(3)
The Fair Housing Act[1] includes two provisions regarding action to be taken by
the Borough during its ten-year repose period. The Borough will comply
with those provisions as follows:
(a)
For the midpoint realistic opportunity review due on July 1,
2020, as required pursuant to N.J.S.A. 52:27D-313, the Borough 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 Borough,
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 Superior
Court regarding these issues.
(b)
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 Borough's Judgement of Compliance and Repose,
and every third year thereafter, the Borough 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 Borough and Fair Share Housing Center on the issue of whether
the Borough has complied with its very-low-income housing obligation
under the terms of this settlement.
(c)
In addition to the foregoing postings, the Borough may also
elect to file copies of its reports with COAH or its successor agency
at the state level.
[1]
Editor's Note: See N.J.S.A. 52:27D-301 et seq.
C.
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
AGENCY
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN-INCOME
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
MUNICIPAL HOUSING LIAISON
NONEXEMPT SALE
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
THE DEPARTMENT
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
Definitions. The following terms when used in this section shall
have the meanings given in this 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 accessory 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.) 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.
The entity designated by the Borough responsible for the
administration of affordable units in accordance with this section,
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,
the sales price for the unit shall conform to the standards set forth
in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in
the case of a rental unit, the rent for the unit shall conform 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 Borough'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 Borough's Fair Share Plan prepared or
implemented to address the Borough'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 Superior Court.
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 of age or older; or 2) at least 80% of the
units are occupied by one person that is 55 years of age or older;
or 3) the development has been designated by the Secretary of the
United States Department of Housing and Urban Development as "housing
for older persons" as defined in Section 807(b)(2) of the Fair Housing
Act, 42 U.S.C. § 3607(b)(2).
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 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 very-low-income household, 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, entity, 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. 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 Atlantic Highlands.
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 COAH or a successor entity, or established by the Court.
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
et seq., 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.
D.
Applicability.
(1)
The provisions of this section shall apply to all affordable
housing developments and affordable housing units that currently exist
and that are proposed to be created within the Borough of Atlantic
Highlands pursuant to the Borough's most recently adopted Housing
Element and Fair Share Plan.
(2)
This section 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.
E.
Rehabilitation programs.
(1)
The Borough of Atlantic Highlands and FSHC have agreed that
the Borough's Round 3 (1999-2025) indigenous need rehabilitation obligation
is 51 units. The Borough will address its Round 3 rehabilitation obligation
via participation in the Monmouth County Rehabilitation Program and/or
hiring a separate qualified entity to rehabilitate units in the Borough.
The rehabilitation programs will update and 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.
(a)
All rehabilitated rental and owner-occupied 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.
(b)
The Borough of Atlantic Highlands shall dedicate an average
of at least $10,000 for each unit to be rehabilitated through this
program, reflecting the minimum hard cost of rehabilitation for each
unit.
(c)
Units in the rehabilitation programs shall be exempt from N.J.A.C.
5:93-9[2] and UHAC requirements, 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 N.J.A.C. 5:93-9[3] and UHAC.
[3]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016, See: 43 N.J.R. 1203(a).
[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 N.J.A.C. 5:93-9[4] and UHAC.
[4]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016, See: 43 N.J.R. 1203(a).
[3]
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9[5] or the standards issued by a New Jersey administrative
agency with proper authority to issue such standards.
[5]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016, See: 43 N.J.R. 1203(a).
[4]
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9[6] and UHAC, except that households in owner-occupied units
shall be exempt from the regional asset limit.
[6]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016, See: 43 N.J.R. 1203(a).
[2]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016. See: 43 N.J.R. 1203(a).
F.
Alternative living arrangements.
(1)
The administration of an alternative living arrangement shall
be in compliance with N.J.A.C. 5:93-5.8[7] and UHAC, with the following exceptions:
(a)
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 Superior Court;
(b)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[7]
Editor's Note: N.J.A.C. 5:93, Substantive Rules of the New
Jersey Council on Affordable Housing for the Period Beginning June
6, 1994, expired on October 16, 2016, See: 43 N.J.R. 1203(a).
(2)
With the exception of units established with capital funding
through a twenty-year operating contract with the Department of Human
Services, Division of Developmental Disabilities, alternative living
arrangements shall have at least thirty-year controls on affordability
in accordance with UHAC, unless an alternative commitment is approved
by the Superior Court.
(3)
The service provider for the alternative living arrangement
shall act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
G.
Phasing schedule for inclusionary developments. 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
|
H.
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 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.
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be very-low- or low-income
units.
(c)
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
[1]
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
[2]
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
[3]
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
[4]
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(d)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
(2)
Accessibility requirements:
(a)
The first floor of all restricted townhouse dwelling units and
all restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
(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 all of the foregoing requirements in Subsection H(2)(b)[1] through [4] above 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 H(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 Atlantic Highlands has collected funds from
the developer sufficient to make 10% of the adaptable entrances in
the development accessible:
[a]
Where a unit has been constructed with an adaptable
entrance, upon the request of a disabled person who is purchasing
or will reside in the dwelling unit, an accessible entrance shall
be installed.
[b]
To this end, the builder of restricted units shall
deposit funds into the Borough of Atlantic Highlands' Affordable Housing
Trust Fund sufficient to install accessible entrances in 10% of the
affordable units that have been constructed with adaptable entrances.
[c]
The funds deposited under Subsection H(2)(b)[6] shall be used by the Borough of Atlantic Highlands for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[d]
The developer of the restricted units shall submit
a design plan and cost estimate to the Construction Official of the
Borough of Atlantic Highlands 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 Borough's Affordable Housing Trust Fund in care
of the Borough Chief Financial Officer, who shall ensure that the
funds are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[7]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site-impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
(3)
Design:
(a)
In inclusionary developments, very-low-, low- and moderate-income
units shall be integrated with the market units to the extent possible.
(b)
In inclusionary developments, very-low-, low- and moderate-income
units shall have access to all of the same common elements and facilities
as the market units.
(4)
Maximum rents and sales prices:
(a)
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD.
(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, which very-low-income units shall be
part of the low-income 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 shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a 1.5-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 4.5-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
homeowners' 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)
Income limits for all units that are part of the Borough'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 Borough annually within 30 days of the publication of determinations
of median income by HUD as follows:
[1]
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 4 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 4 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
4 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.
[2]
The income limits are based on carrying out the process in Subsection H(4)(i)[1] based on the HUD determination of median income for the current fiscal year, and shall be utilized by the Borough until new income limits are available.
(j)
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:
[1]
The price of owner-occupied very-low-, 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 H(4)(i). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
[2]
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 Southern 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.
I.
Utilities.
(1)
Affordable units shall utilize the same type of heating source
as market units within an inclusionary development.
(2)
Tenant-paid utilities included in the utility allowance shall
be set forth in the lease and shall be consistent with the utility
allowance approved by the NJDCA for its Section 8 program.
J.
Occupancy standards. In referring certified households to specific
restricted units, the administrative agent shall, to the extent feasible
and without causing an undue delay in the occupancy of a unit, strive
to:
K.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this section for a period of at least 30 years, until Atlantic
Highlands Borough 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.
(2)
The affordability control period for a restricted ownership
unit shall commence on the date the initial certified household takes
title to the unit.
(3)
Prior to the issuance of the initial certificate of occupancy
for a restricted ownership unit and upon each successive sale during
the period of restricted ownership, the Borough'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.
(4)
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Borough'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 section, an amount
equal to the difference between the unit's nonrestricted fair market
value and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
(5)
The affordability controls set forth in this section shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
(6)
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all Code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
L.
Price restrictions for restricted ownership units, homeowners' association
fees and resale prices. Price restrictions for restricted ownership
units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended
and supplemented, including:
(1)
The initial purchase price for a restricted ownership unit shall
be approved by the Borough's administrative agent, or an administrative
agent appointed by a particular developer.
(2)
The Borough'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.
(3)
The master deeds of inclusionary developments shall provide
no distinction between the condominium or homeowners' 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.
(4)
The owners of restricted ownership units may apply to the Borough'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.
M.
Buyer income eligibility.
(1)
Buyer income eligibility for restricted ownership units shall
be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
(2)
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, homeowners' and private mortgage insurance
and condominium or homeowners' association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
N.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Borough'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 section, and the Borough's administrative
agent, or an administrative agent appointed by a particular developer,
shall issue such determination prior to the owner incurring such indebtedness.
(2)
With the exception of first purchase money mortgages, neither
an owner nor a lender shall at any time cause or permit the total
indebtedness secured by a restricted ownership unit to exceed 95%
of the maximum allowable resale price of the unit, as such price is
determined by the Borough's administrative agent, or an administrative
agent appointed by a particular developer, in accordance with N.J.A.C.
5:80-26.6(b).
O.
Capital improvements to ownership units.
(1)
The owners of restricted ownership units may apply to the Borough'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.
(2)
Upon the resale of a restricted ownership unit, all items of
property that are permanently affixed to the unit or were included
when the unit was initially restricted (for example, refrigerator,
range, washer, dryer, dishwasher, wall-to-wall carpeting) shall be
included in the maximum allowable resale price. Other items may be
sold to the purchaser at a reasonable price that has been approved
by the Borough'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 Borough's administrative agent, or an administrative
agent appointed by a particular developer. Unless otherwise approved
by the Borough'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.
P.
Control periods for restricted rental units.
(1)
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this section for a period of at least 30 years, until Atlantic
Highlands Borough 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.
(2)
Deeds of all real property that include restricted rental units
shall contain deed restriction language. The deed restriction shall
have priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the Records Office
of the County of Monmouth. A copy of the filed document shall be provided
to the Borough's administrative agent within 30 days of the receipt
of a certificate of occupancy.
(3)
A restricted rental unit shall remain subject to the affordability
controls described in this section despite the occurrence of any of
the following events:
Q.
Rent restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental
units, and tenants shall be responsible for security deposits and
the full amount of the rent as stated on the lease. A copy of the
current lease for each restricted rental unit shall be provided to
the Borough's administrative agent, or an administrative agent appointed
by a particular developer.
(2)
No additional fees or charges shall be added to the approved
rent (except, in the case of units in an assisted living residence,
to cover the customary charges for food and services) without the
express written approval of the Borough's administrative agent, or
an administrative agent appointed by a particular developer.
(3)
Application fees (including the charge for any credit check)
shall not exceed 5% of the monthly rent of the applicable restricted
unit and shall be payable to the developer and/or landlord or to the
Borough's administrative agent appointed by a particular developer.
If the fees are paid to the Borough'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 section.
(4)
No rent control ordinance or other pricing restriction shall
be applicable to either the market units or the affordable units in
any development in which at least 15% of the total number of dwelling
units are restricted rental units in compliance with this section.
R.
Tenant income eligibility.
(1)
Tenant income eligibility shall be in accordance with N.J.A.C.
5:80-26.13, as may be amended and supplemented, and shall be determined
as follows:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of the regional
median household income by household size.
(b)
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.
(c)
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.
(2)
The Borough's administrative agent, or a qualified 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:
(a)
The household currently pays more than 35% (40% for households
eligible for age-restricted units) of its gross household income for
rent, and the proposed rent will reduce its housing costs;
(b)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
The household documents reliable anticipated third-party assistance
from an outside source, such as a family member, in a form acceptable
to the administrative agent and the owner of the unit.
S.
Municipal Housing Liaison.
(1)
The position of Municipal Housing Liaison (MHL) for the Borough
of Atlantic Highlands is established by this section. The Borough
shall make the actual appointment of the MHL by means of a resolution.
(a)
The MHL must be either a full-time or part-time employee of
Atlantic Highlands.
(b)
The person appointed as the MHL must be reported to the Superior
Court and thereafter posted on the Borough's website.
(c)
The MHL must meet all the requirements for qualifications, including
initial and periodic training, if such training is made available
by COAH or the DCA.
(d)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Borough
of Atlantic Highlands, including the following responsibilities which
may not be contracted out to the administrative agent, or the administrative
agent appointed by a specific developer:
[1]
Serving as the municipality's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents and interested households;
[2]
The implementation of the affirmative marketing plan and affordability
controls;
[3]
When applicable, supervising any contracting administrative
agent;
[4]
Monitoring the status of all restricted units in the Borough's
Fair Share Plan;
[5]
Compiling, verifying and submitting annual reports as required;
[6]
Coordinating meetings with affordable housing providers and
administrative agents, as applicable; and
[7]
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Affordable Housing Professionals of New Jersey
(AHPNJ), if such continuing education opportunities are made available
by COAH or the DCA.
(2)
Subject to the approval of the Superior Court, the Borough of
Atlantic Highlands shall designate one or more administrative agent(s)
to administer and to affirmatively market the affordable units constructed
in the Borough in accordance with UHAC and this section.
T.
Administrative agent. An administrative agent may be either an independent
entity serving under contract to and reporting to the Borough, 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 Borough
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 includes:
(1)
Affirmative marketing:
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Borough of Atlantic Highlands and the provisions of N.J.A.C. 5:80-26.15;
and
(b)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
(2)
Household certification:
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate-income unit;
(c)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(d)
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
(e)
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
(f)
Employing a random selection process as provided in the affirmative
marketing plan of the Borough of Atlantic Highlands when referring
households for certification to affordable units; and
(g)
Notifying the following entities of the availability of affordable
housing units in the Borough of Atlantic Highlands: FSHC, the New
Jersey State Conference of the NAACP, the Latino Action Network, STEPS,
OCEAN Inc., the Greater Red Bank, Asbury Park/Neptune, Bayshore, Greater
Freehold, Greater Long Branch, and Trenton Branches of the NAACP and
the Supportive Housing Association.
(3)
Affordability controls:
(a)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(b)
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Monmouth
County Register of Deeds or the Monmouth County Clerk's office after
the termination of the affordability controls for each restricted
unit;
(d)
Communicating with lenders regarding foreclosures; and
(e)
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)
Resales and re-rentals:
(a)
Instituting and maintaining an effective means of communicating
information between owners and the Borough's administrative agent,
or any administrative agent appointed by a specific developer, regarding
the availability of restricted units for resale or re-rental; and
(b)
Instituting and maintaining an effective means of communicating
information to very-low-, low- and moderate-income households regarding
the availability of restricted units for resale or re-rental.
(5)
Processing requests from unit owners:
(a)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this section;
(b)
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air-conditioning
systems;
(c)
Notifying the Borough of an owner's intent to sell a restricted
unit; and
(d)
Making determinations on requests by owners of restricted units
for hardship waivers.
(6)
Enforcement:
(a)
Securing annually from the Borough a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(b)
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
Borough's administrative agent, or any administrative agent appointed
by a specific developer;
(c)
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 Borough's administrative agent, or any administrative
agent appointed by a specific developer, where complaints of excess
rent or other charges can be made;
(d)
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
(e)
Establishing a program for diverting unlawful rent payments
to the Borough's Affordable Housing Trust Fund; and
(f)
Creating and publishing a written operating manual for each
affordable housing program administered by the Borough's administrative
agent, or any administrative agent appointed by a specific developer,
to be approved by the Borough Council and the Superior Court, setting
forth procedures for administering the affordability controls.
(7)
Additional responsibilities:
(a)
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this section. The Borough's administrative agent will
be responsible for collecting monitoring information from any administrative
agents appointed by specific developers.
(c)
The Borough'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.
U.
Affirmative marketing requirements.
(1)
The Borough of Atlantic Highlands 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.
(2)
The affirmative marketing plan is a regional marketing strategy
designed to attract buyers and/or renters of all majority and minority
groups, regardless of race, creed, color, national origin, ancestry,
marital or familial status, gender, affectional or sexual orientation,
disability, age or number of children to housing units which are being
marketed by a developer, sponsor or owner of affordable housing. The
affirmative marketing plan is intended to target those potentially
eligible persons who are least likely to apply for affordable units
in that region. It is a continuing program that directs marketing
activities toward Housing Region 4 and is required to be followed
throughout the period of restriction.
(3)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in Housing Region 4, composed
of Mercer, Monmouth and Ocean Counties.
(4)
The Borough 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 re-rentals. The Borough's administrative agent designated
by the Borough of Atlantic Highlands, or any administrative agent
appointed by a specific developer, shall implement the affirmative
marketing plan to assure the affirmative marketing of all affordable
units.
(5)
In implementing the affirmative marketing plan, the Borough's
administrative agent, or any administrative agent appointed by a specific
developer, shall provide a list of counseling services to very-low-,
low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
(6)
The affirmative marketing plan shall describe the media to be
used in advertising and publicizing the availability of housing. In
implementing the affirmative marketing plan, the Borough's administrative
agent, or any administrative agent appointed by a specific developer,
shall consider the use of language translations where appropriate.
(7)
The affirmative marketing process for available affordable units
shall begin at least 120 days prior to the expected date of occupancy.
(8)
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
and the municipal building in which the units are located; and the
developer's rental office. Applications shall be mailed to prospective
applicants upon request.
(9)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
V.
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
an affordable unit by an owner, developer or tenant, the Borough 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.
(2)
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the Borough
may take the following action(s) against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(a)
The Borough 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 Superior Court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the Court:
[1]
A fine of not more than $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;
[2]
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Borough of Atlantic Highlands Affordable
Housing Trust Fund of the gross amount of rent illegally collected;
[3]
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
(b)
The Borough may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any such judgment shall be enforceable as if the same were a judgment
of default of the first purchase money mortgage and shall constitute
a lien against the low- or moderate-income unit.
[1]
The judgment shall be enforceable, at the option of the Borough,
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 Borough,
including attorney's fees. The violating owner shall have his right
to possession terminated as well as his title conveyed pursuant to
the Sheriff's sale.
[2]
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the Borough 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
Borough 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 Borough 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 Borough 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 Borough 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 Borough. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the Borough, whether such balance shall
be paid to the owner or forfeited to the Borough.
[3]
Foreclosure by the Borough 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 very-low-, low- and moderate-income unit. Title shall
be conveyed to the purchaser at the Sheriff's sale, subject to the
restrictions and provisions of the regulations governing the affordable
housing unit. The owner determined to be in violation of the provisions
of this plan and from whom title and possession were taken by means
of the Sheriff's sale shall not be entitled to any right of redemption.
[4]
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the Borough may acquire title to the very-low-, 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 very-low-, low-
and moderate-income unit could have been sold under the terms of the
regulations governing affordable housing units. This excess shall
be treated in the same manner as the excess which would have been
realized from an actual sale as previously described.
[5]
Failure of the very-low-, low- or moderate-income unit to be
either sold at the Sheriff's sale or acquired by the Borough shall
obligate the owner to accept an offer to purchase from any qualified
purchaser which may be referred to the owner by the Borough, with
such offer to purchase being equal to the maximum resale price of
the very-low-, low- or moderate-income unit as permitted by the regulations
governing affordable housing units.
[6]
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions governing affordable
housing units until such time as title is conveyed from the owner.
W.
Appeals. Appeals from all decisions of an administrative agent appointed
pursuant to this section shall be filed in writing with the Superior
Court.