[Added 3-27-2018 by Ord.
No. 5-2018]
A.
Affordable housing obligation.
(1)
This article is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This article shall apply except where inconsistent with
applicable law.
(2)
The Township of Mullica 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. The Fair Share Plan has been endorsed
by the governing body. The Fair Share Plan describes the ways the
Township of Mullica shall address its fair share for low- and moderate-income
housing as determined by the Council on Affordable Housing (COAH)
and documented in the Housing Element.
(4)
The Township of Mullica shall file monitoring reports with COAH
in accordance with N.J.A.C. 5:96[2], tracking the status of the implementation of the Housing
Element and Fair Share Plan. Any plan evaluation report of the Housing
Element and Fair Share Plan and monitoring prepared by COAH in accordance
with N.J.A.C. 5:96 shall be available to the public at the Township
of Mullica Municipal Building, Municipal Clerk's Office, 4528 White
Horse Pike, Elwood, New Jersey, or from COAH at 101 South Broad Street,
Trenton, New Jersey and on COAH's website, www.nj.gov/dca/affiliates/coah.
[2]
Editor's Note: N.J.A.C. 5:96 expired on 6-2-2015.
B.
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGENCY
AGE-RESTRICTED UNIT
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
NONEXEMPT SALE
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
Definitions. The following terms when used in this article 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.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this ordinance, N.J.A.C. 5:96, N.J.A.C. 5:97[3] and 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 in N.J.A.C. 5:97-9[4]; 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 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.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:97-4[5], and/or funded through an affordable housing trust fund.
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 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 Council on Affordable Housing, which is in, but not of,
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 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. 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 COAH.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class A
beneficiary; and the transfer of ownership by court order.
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 COAH's adopted Regional Income Limits published annually
by COAH.
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 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.
C.
Affordable housing programs. The Township of Mullica has determined
that it will use the following mechanisms to satisfy its affordable
housing obligations:
(2)
Inclusionary developments with an affordable housing set-aside
of 20% for any residential development of five or more units.
(a)
Phasing. 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
|
(b)
Design. In inclusionary developments, to the extent possible,
low- and moderate-income units shall be integrated with the market
units.
(c)
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
D.
New construction. The following general guidelines apply to all newly
constructed developments that contain low-and moderate-income housing
units, including any currently unanticipated future developments that
will provide low- and moderate-income housing units.
(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.
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be 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.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
(2)
Accessibility requirements:
(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;
[2]
An adaptable kitchen on the first floor;
[3]
An interior accessible route of travel on the first
floor;
[4]
An interior accessible route of travel shall not
be required between stories within an individual unit;
[5]
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
[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 and N.J.A.C. 5:97-3.14[7], or evidence that the Township of Mullica 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 within the Township of Mullica's 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 D(2)(b)[6][b]
above shall be used by the Township of Mullica for the sole purpose
of making the adaptable entrance of any 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 for the conversion from adaptable
to accessible entrances to the Construction Official of the Township
of Mullica.
[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 N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion
is reasonable, payment shall be made to the Township of Mullica's
affordable housing trust fund in care of the Municipal Treasurer who
shall ensure that the funds are deposited into the affordable housing
trust fund and appropriately earmarked.
[f]
Full compliance with the foregoing provisions shall
not be required where an entity can demonstrate that it is site impracticable
to meet the requirements. Determinations of site impracticability
shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7
and N.J.A.C. 5:97-3.14.
[7]
Editor's Note: N.J.A.C. 5:97 expired on 6-2-2015.
(3)
Maximum rents and sales prices
(a)
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC and in the Department, utilizing the regional income limits
established by the Department.
(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 low- and
moderate-income 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.
[1]
At least 10% of all low- and moderate-income rental
units shall be affordable to households earning no more than 30% of
median income.
**NOTE: N.J.S.A. 52:27D-329.1 (P.L. 2008, C. 46) includes the
requirement that all municipal fair share plans provide for the reservation
of at least 13% of the affordable units for very-low-income households,
i.e. households earning 30% or less of the median income. The new
statute states that the requirement is not project-specific. Each
municipality's version of this ordinance must reflect the determinations
made in the Fair Share Plan as to the percentage of units necessary
for very-low-income units in rental projects. Additional incentives
to subsidize the creation of affordable housing available to very-low-income
households may be included in the zoning section of this ordinance
or specified in a developer's or redeveloper's agreement.
(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 prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(e)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, 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 one-and-one-half
person household;
[3]
A two-bedroom unit shall be affordable to a three-person
household;
[4]
A three-bedroom unit shall be affordable to a four-and-one-half
person household; and
[5]
A four-bedroom unit shall be affordable to a six-person
household.
(f)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(g)
The initial purchase price for all restricted ownership units
shall be calculated so that the monthly carrying cost of the unit,
including principal and interest (based on a mortgage loan equal to
95% of the purchase price and the Federal Reserve H.15 rate of interest),
taxes, homeowner and private mortgage insurance and condominium or
homeowner association fees do not exceed 28% of the eligible monthly
income of the appropriate size household as determined under N.J.A.C.
5:80-26.4, as may be amended and supplemented; provided, however,
that the price shall be subject to the affordability average requirement
of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(h)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(i)
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price.
(j)
The rent of low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the United States. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
(k)
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by DCA for its Section 8 program.
E.
Affirmative marketing requirements.
(1)
Township of Mullica shall adopt by resolution an affirmative
marketing plan, subject to approval of COAH, 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 also 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 all marketing
activities toward COAH Housing Region 6 and covers the period of deed
restriction.
(3)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 6
comprised of Atlantic, Cape May, Cumberland and Salem Counties.
(4)
The administrative agent designated by the Township of Mullica
shall assure the affirmative marketing of all affordable units consistent
with the affirmative marketing plan for the municipality.
(5)
In implementing the affirmative marketing plan, the administrative
agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
(6)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
(7)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township of Mullica.
F.
Occupancy standards.
(1)
In referring certified households to specific restricted units,
to the extent feasible, and without causing an undue delay in occupying
the unit, the administrative agent shall strive to:
(2)
Additional provisions related to occupancy standards (if any)
shall be provided in the municipal operating manual.
G.
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 article until the Township of Mullica elects to release the
unit from such requirements; however, and prior to such an election,
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, for at
least 30 years.
(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 administrative agent shall
determine the restricted price for the unit and shall also determine
the nonrestricted, fair market value of the unit based on either an
appraisal or the unit's equalized assessed value.
(4)
At the time of the first sale of the unit, the purchaser shall
execute and deliver to the administrative agent a recapture note obligating
the purchaser (as well as the purchaser's heirs, successors and assigns)
to repay, upon the first nonexempt sale after the unit's release from
the requirements of 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.
(5)
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.
(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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
H.
Price restrictions for restricted ownership units, homeowner association
fees and resale prices.
(1)
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
(a)
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(b)
The administrative agent shall approve all resale prices, in
writing and in advance of the resale, to assure compliance with the
foregoing standards.
(c)
The method used to determine the condominium association fee
amounts and special assessments shall be indistinguishable between
the low- and moderate-income unit owners and the market unit owners.
(d)
The owners of restricted ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
I.
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, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
J.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section.
(2)
With the exception of original purchase money mortgages, during
a control period 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 that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
K.
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 article until the Township of Mullica elects to release the
unit from such requirements pursuant to action taken in compliance
with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior
to such an election, 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,
for at least 30 years.
(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 Atlantic. A copy of the filed document shall be provided
to the 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 of this article, despite the occurrence of any of the following
events:
L.
Price restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental
units, except for units in an assisted living residence, and tenants
shall be responsible for security deposits and the full amount of
the rent as stated on the lease. A copy of the current lease for each
restricted rental unit shall be provided to the administrative agent.
(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 administrative agent.
(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 administrative agent to be applied
to the costs of administering the controls applicable to the unit
as set forth in this article.
M.
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 median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental 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 rental unit when the household is a very-low-income,
low-income or 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 proposed 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.
N.
Administration.
(1)
The position of Municipal Housing Liaison (MHL) for the Township
of Mullica is established by this article. The governing body 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
the Township of Mullica.
(b)
The person appointed as the MHL must be reported to COAH for
approval.
(c)
The MHL must meet all COAH requirements for qualifications,
including initial and periodic training.
(d)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Mullica, including the following responsibilities which may not
be contracted out to the administrative agent:
[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 Township of Mullica's Fair Share Plan;
[5]
Compiling, verifying and submitting annual reports
as required by COAH;
[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 COAH.
(2)
The Township of Mullica shall designate by resolution of the
governing body, subject to the approval of COAH, one or more administrative
agents to administer newly constructed affordable units in accordance
with N.J.A.C. 5:96, N.J.A.C. 5:97[8]and UHAC.
[8]
Editor's Note: N.J.A.C. 5:96 and 5:97 expired on 6-2-2015.
(3)
An operating manual shall be provided by the administrative
agent(s) to be adopted by resolution of the governing body and subject
to approval of COAH. The operating manuals shall be available for
public inspection in the Office of the Municipal Clerk and in the
office(s) of the administrative agent(s).
(4)
The administrative agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the operating manual, including those
set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:
(a)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
(b)
Affirmative marketing;
(c)
Household certification;
(d)
Affordability controls;
(e)
Records retention;
(f)
Resale and re-rental;
(g)
Processing requests from unit owners; and
(h)
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality.
(i)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
O.
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the 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 municipality
may take the following action 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 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
found 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:
[1]
A fine of not more than $1,000 or imprisonment
for a period not to exceed 90 days, or both. Each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not as a continuing offense;
[2]
In the case of an owner who has rented his or her
low- or moderate-income unit in violation of the regulations governing
affordable housing units, payment into the Township of Mullica Affordable
Housing Trust Fund of the gross amount of rent illegally collected;
[3]
In the case of an owner who has rented his or her
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 municipality may file a court action in the Superior Court
seeking a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any 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- and moderate-income unit.
(3)
Such 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 the right
to possession terminated as well as the title conveyed pursuant to
the Sheriff's sale.
(4)
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 and to the 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.
(5)
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.
(6)
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.
(7)
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.
(8)
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.
P.
Appeals. Appeals from all decisions of an administrative agent designated
pursuant to this article shall be filed in writing with the Executive
Director of COAH.
A.
Purpose.
(1)
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.
(2)
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2)
and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1
through 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.
(3)
This ordinance establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, Sections 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 ordinance
shall be interpreted within the framework of COAH's rules on development
fees, codified at N.J.A.C. 5:97-8.[1]
[1]
Editor's Note: N.J.A.C. 5:97 expired on 6-2-2015.
C.
AFFORDABLE HOUSING DEVELOPMENT
COAH or the COUNCIL
DEVELOPMENT FEE
DEVELOPER
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
Definitions. The following terms, as used in this article, shall
have the following meanings:
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 Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the state.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:97-8.3.[4]
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
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 Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through c).
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.
[4]
Editor's Note: N.J.A.C. 5:97 expired on 6-2-2015.
D.
Residential development fees. (Reserved)
E.
Nonresidential development fees.
(1)
Imposed fees
(a)
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted,
shall pay a fee equal to 2 1/2% of the equalized assessed value
of the land and improvements, for all new nonresidential construction
on an unimproved lot or lots.
(b)
Nonresidential developers, except for developers of the types
of development specifically exempted, shall also pay a fee equal to
2 1/2% of the increase in equalized assessed value resulting
from any additions to existing structures to be used for nonresidential
purposes.
(c)
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2 1/2%
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.
(d)
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 1/2% development
fee, unless otherwise exempted below.
[2]
The 2 1/2% 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]
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, as specified
in the Form N-RDF "State of New Jersey Nonresidential Development
Certification/Exemption" form. Any exemption claimed by a developer
shall be substantiated by that developer.
[4]
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.
[5]
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 Township of Mullica
as a lien against the real property of the owner.
F.
Collection procedures
(1)
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.
(2)
For nonresidential developments only, the developer shall also
be provided with a copy of Form N-RDF "State of New Jersey Nonresidential
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.
(3)
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.
(4)
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.
(5)
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.
(6)
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.
(7)
Should the Township of Mullica 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 Section 37 of P.L. 2008, c.
46 (N.J.S.A. 40:55D-8.6).
(8)
The developer shall pay 100% of the calculated development fee
amount prior to the municipal issuance of a final certificate of occupancy
for the subject property.
(9)
Appeal of development fees
(a)
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 Township of Mullica.
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.
(b)
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 Township of
Mullica. 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.
G.
Affordable Housing Trust Fund.
(1)
There is hereby created a separate, interest-bearing housing
trust fund to be maintained by the Chief Financial Officer for the
purpose of depositing development fees collected from residential
and nonresidential developers and proceeds from the sale of units
with extinguished controls.
(2)
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(a)
Payments in lieu of on-site construction of affordable units;
(b)
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(c)
Rental income from municipally operated units;
(d)
Repayments from affordable housing program loans;
(e)
Recapture funds;
(f)
Proceeds from the sale of affordable units; and
(g)
Any other funds collected in connection with the Township of
Mullica's affordable housing program.
(3)
Within seven days from the opening of the trust fund account,
the Township of Mullica shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
the bank, and COAH to permit COAH to direct the disbursement of the
funds as provided for in N.J.A.C. 5:97-8.13(b).[5]
[5]
Editor's Note: N.J.A.C. 5:97 expired on 6-2-2015.
(4)
All interest accrued in the housing trust fund shall only be
used on eligible affordable housing activities approved by COAH.
H.
Use of funds.
(1)
The expenditure of all funds shall conform to a spending plan
approved by COAH. Funds deposited in the housing trust fund may be
used for any activity approved by COAH to address the Township of
Mullica's fair share obligation and may be set up as a grant or revolving
loan program. Such activities include, but are not limited to: preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable,
or regional housing partnership programs, 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, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through
8.9[6] and specified in the approved spending plan.
[6]
Editor's Note: N.J.A.C. 5:97 expired on 6-2-2015.
(2)
Funds shall not be expended to reimburse the Township of Mullica
for past housing activities.
(3)
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.
(a)
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.
(b)
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.
(c)
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.
(5)
No more than 20% of all revenues collected from development
fees may be expended on administration, including, but 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.
In the case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. 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 affordable housing trust fund.
I.
Monitoring.
(1)
The Township of Mullica 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 Township
of Mullica'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.
J.
Ongoing collection of fees.
(1)
The ability for the Township of Mullica to impose, collect and
expend development fees shall expire with its substantive certification
unless the Township of Mullica has filed an adopted Housing Element
and Fair Share Plan with COAH, has petitioned for substantive certification,
and has received COAH's approval of its development fee ordinance.
If the Township of Mullica fails to renew its ability to impose and
collect development fees prior to the expiration of substantive certification,
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 Section 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The Township
of Mullica 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 Township of Mullica retroactively impose a development fee on
such a development. The Township of Mullica shall not expend development
fees after the expiration of its substantive certification or judgment
of compliance.
