[Adopted 4-16-2019 by Ord. No. 1779[1]]
[1]
Editor's Note: This ordinance also repealed former Art. I,
Affirmative Marketing, adopted 7-29-2002 by Ord. No. 1230.
A.Â
This section of the Borough Code sets forth regulations regarding
the low- and moderate-income housing units in the Borough consistent
with the provisions known as the "Substantive Rules of the New Jersey
Council on Affordable Housing," N.J.A.C. 5:93 et seq.,[1] the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C.
5:80-26.1 et seq., except where modified by the requirements for very-low-income
housing as established in P.L. 2008, c. 46 (the "Roberts Bill," codified
at N.J.S.A. 52:27D-329.1), as reflected in the terms of a settlement
agreement between the Borough and Fair Share Housing Center ("FSHC")
such that the statutory requirement to provide very-low-income units
equal to 13% of affordable units approved and constructed after July
17, 2008, to be affordable to households at 30% of the regional median
income, overrides the UHAC requirement that 10% of all low- and moderate-income
units must be affordable at 35% of the regional median income, and
the Borough's constitutional obligation to provide a fair share
of affordable housing for low- and moderate-income households.
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
B.Â
This article is intended to assure that very-low, low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that very-low, low- and moderate-income households shall
occupy these units. This article shall apply to all inclusionary developments
and 100% affordable developments (including those funded with low-income
housing tax credit financing) except where inconsistent with applicable
law.
C.Â
The Franklin Lakes Borough 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 plan has also been endorsed by the Mayor and
Council of the Borough of Franklin Lakes. The Fair Share Plan describes
the ways the Borough shall address its fair share for low- and moderate-income
housing as determined by the Superior Court and documented in the
Housing Element.
D.Â
This article implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:93, as may be amended and
supplemented.[2]
[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
E.Â
The Borough shall file monitoring and status reports with Fair Share
Housing Center ("FSHC") and place the reports on its municipal website.
Any plan evaluation report of the Housing Element and Fair Share Plan
and monitoring evaluation report prepared by the Special Master in
accordance with N.J.A.C. 5:91[3] shall be available to the public at the Franklin Lakes
Municipal Building.
[3]
Editor's Note: Chapter 91, Procedural Rules of the New Jersey
Council on Affordable Housing, expired on April 2, 2008.
F.Â
On or about June 1 of each year through the end of the period of
Third Round Judgment of Repose, the Borough will provide annual reporting
of the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to all parties to the Borough's Court-approved settlement
agreements, using forms previously developed for this purpose by the
Council on Affordable Housing or any other forms endorsed by the Special
Master and FSHC.
G.Â
The Fair Housing Act includes two provisions regarding action to
be taken by the Borough during the ten-year period of protection provided
in the Borough's Court-approved agreement with FSHC. The Borough
agrees to comply with those provisions as follows:
(1)Â
By July 1, 2020, the Borough must prepare a midpoint realistic opportunity
review, as required pursuant to N.J.S.A. 52:27D-313, which the Borough
will post on its municipal website, with a copy provided to FSHC,
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. Such posting shall invite any interested
party to submit comments to the municipality, with a copy to FSHC,
regarding whether any sites no longer present a realistic opportunity
and should be replaced and whether any mechanisms to meet unmet need
should be revised or supplemented. Any interested party may by motion
request a hearing before the Court regarding these issues. In the
event the Court determines that a site or mechanism no longer presents
a realistic opportunity and should be replaced or supplemented, then
the municipality shall have the opportunity to supplement or revise
its plan to correct any deficiency.
(2)Â
Within 30 days of June 1, 2021, and June 1, 2024, the Borough shall
prepare a review of compliance with the very-low-income housing requirements
required by N.J.S.A. 52:27D-329.1 and its Court-approved settlement
agreement with FSHC. The Borough will post on its municipal website,
with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including the family very-low-income
requirements referenced herein and in the Borough's settlement
agreement with FSHC. Such posting shall invite any interested party
to submit comments to the municipality and FSHC on the issue of whether
the municipality has complied with its very-low-income housing obligation.
As used herein, the following terms shall have the following
meanings:
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.
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. 5:93-7.4;[3] in the case of an ownership unit, 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,
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. 5:93,[4] and/or funded through an affordable housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 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 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 arrangement" includes, but is not limited
to: transitional facilities for the homeless; Class A, B, C, D, and
E boarding homes as regulated by the New Jersey Department of Community
Affairs; residential health care facilities as regulated by the New
Jersey Department of Health; group homes for the developmentally disabled
and mentally ill as licensed and/or regulated by the New Jersey Department
of Human Services; and congregate living arrangements.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The 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.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.[5]
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 54:1-35c).
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Borough proposes to address
its affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.A.C. 5:93-5.[6]
The portion of the Borough's Master Plan, required by
the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3), and the
Act, that includes the information required by N.J.A.C. 5:93-5.1[7] and establishes the Borough's fair share obligation.
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 or approved by the New Jersey Superior
Court.
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 adopted/approved regional income limits.
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.
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
Court.
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 which is considered a major system for rehabilitation.
[1]
Editor's Note: Chapter 91, Procedural Rules of the New Jersey
Council on Affordable Housing, expired on April 2, 2008.
[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
[5]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
[6]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
[7]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
The following requirements shall apply to all new or planned
developments that contain low- and moderate-income housing units.
A.Â
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units, whether developed in
a single-phase development or in a multi-phase development:
|
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
|
|
100
|
B.Â
Design. In inclusionary developments, low- and moderate-income units
shall be integrated with the market units.
C.Â
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
D.Â
Low/moderate split and bedroom distribution of affordable housing
units:
(1)Â
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.
(2)Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3)Â
Within rental developments, of the total number of affordable rental
units, at least 13% of the restricted units within each bedroom distribution
shall be affordable to very-low-income households.
(4)Â
At least half of the affordable units in each bedroom distribution
within each affordable housing development shall be affordable to
low-income households.
(5)Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)Â
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(6)Â
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.
E.Â
Accessibility requirements.
(1)Â
The first floor of all new restricted townhouse dwelling units and
all restricted multistory dwelling units attached to at least one
other dwelling unit shall be subject to the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
(2)Â
All restricted townhouse dwelling units and all restricted multistory
dwelling units attached to at least one other dwelling unit shall
have the following features:
(a)Â
An adaptable toilet and bathing facility on the first floor;
(b)Â
An adaptable kitchen on the first floor;
(c)Â
An interior accessible route of travel on the first floor:
[1]Â
An interior accessible route of travel shall not be required
between stories within an individual unit;
(d)Â
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door on the first floor; and
(e)Â
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Borough has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[1]Â
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]Â
To this end, the builder of restricted units shall deposit funds
within the Borough of Franklin Lakes' affordable housing trust
fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]Â
The funds deposited under Subsection E(2)(e)[2] herein shall be used by the Borough 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.
[4]Â
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 Borough of Franklin
Lakes.
[5]Â
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
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 of Franklin Lakes' 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.
[6]Â
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.
F.Â
Maximum rents and sales prices.
(1)Â
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC and by the Superior Court, utilizing the regional income limits
established.
(2)Â
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.
(3)Â
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.
(a)Â
At least 13% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(4)Â
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.
(5)Â
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
met:
(a)Â
A studio or efficiency unit shall be affordable to a one-person
household;
(b)Â
A one-bedroom unit shall be affordable to a one-and-one-half
person household;
(c)Â
A two-bedroom unit shall be affordable to a three-person household;
(d)Â
A three-bedroom unit shall be affordable to a four-and-one-half
person household; and
(e)Â
A four-bedroom unit shall be affordable to a six-person household.
(6)Â
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(7)Â
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.
(8)Â
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.
(9)Â
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. Income limits for all units 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 et seq. shall be updated by the Borough annually within
30 days of the publication of determinations of median income by HUD
as follows:
(a)Â
Regional income limits shall be established for the Region 3
based on the median income by household size, which shall be established
by a regional weighted average of the uncapped Section 8 income limits
published by HUD. To compute this regional income limit, the HUD determination
of median county income for a family of four is multiplied by the
estimated households within the county according to the most recent
decennial Census. The resulting product for each county within the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial Census in Region 3. This
quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80% of the regional weighted average
median income 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 regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income 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 those for the
previous year.
(b)Â
The income limits calculated each year shall be the result of applying the percentages set forth in Subsection F(9)(a) above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the Borough updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)Â
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Borough annually by taking the percentage increase of the income limits calculated pursuant to Subsection F(9)(a) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
(10)Â
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban 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.
(11)Â
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.
G.Â
Condominium and homeowners' association fees.
(1)Â
For any affordable housing unit that is part of a condominium association
and/or homeowners' association, the master deed shall reflect that
the association fee assessed for each affordable housing unit shall
be established at 100% of the market rate fee.
H.Â
Affordable unit controls and requirements.
(1)Â
The requirements of this section apply to all developments that contain
affordable housing units, including any currently unanticipated future
developments that will provide low- and moderate- income housing units.
I.Â
Affirmative marketing.
(1)Â
The Borough shall adopt by resolution an affirmative marketing plan,
subject to approval of the Superior Court, compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
(2)Â
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 3 and covers the period of deed restriction.
(3)Â
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 3,
comprised of Bergen, Somerset, and Middlesex Counties.
(4)Â
The administrative agent designated by the Borough shall assure the
affirmative marketing of all affordable units is consistent with the
affirmative marketing plan for the municipality.
(5)Â
The Borough shall add to the list of community and regional organizations
in its affirmative marketing plan, pursuant to N.J.A.C. 5:80-26.15(f)5,
the Fair Share Housing Center, the New Jersey State Conference of
the NAACP, the Latino Action Network, Bergen County NAACP, Bergen
County Urban League, and Bergen County Housing Coalition, and shall,
as part of its regional affirmative marketing strategies during its
implementation of this plan, provide notice to those organizations
of all available affordable housing units. The Borough also agrees
to require any other entities, including developers or persons or
companies retained to do affirmative marketing, to comply with this
subsection.
(6)Â
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.
(7)Â
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
(8)Â
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 Borough of Franklin
Lakes.
J.Â
Occupancy standards.
(1)Â
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)Â
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal operating manual.
K.Â
Selection of occupants of affordable housing units.
L.Â
Control periods for restricted ownership units and enforcement mechanisms.
(1)Â
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, and each restricted ownership unit shall
remain subject to the controls on affordability for a period of at
least 30 years, until the municipality takes action to release the
controls on affordability.
(2)Â
Rehabilitated owner-occupied housing units that are improved to code
standards shall be subject to affordability controls for a period
of 10 years.
(3)Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(4)Â
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.
(5)Â
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.
M.Â
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 et seq., as may
be amended and supplemented, including:
(1)Â
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(2)Â
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
(3)Â
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.
(4)Â
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.
N.Â
Buyer income eligibility.
(1)Â
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1 et seq., 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)Â
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 homeowners' association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
O.Â
Limitations on indebtedness secured by ownership unit; subordination.
(1)Â
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)Â
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).
P.Â
Control periods for restricted rental units.
(1)Â
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, and each restricted rental unit shall remain
subject to the controls on affordability for a period of at least
30 years, until the municipality takes action to release the controls
on affordability.
(a)Â
Restricted rental units created as part of developments receiving
9% low-income housing tax credits must comply with a control period
of not less than a thirty-year compliance period plus a fifteen-year
extended use period.
(2)Â
Rehabilitated renter-occupied housing units that are improved to
code standards shall be subject to affordability controls for a period
of 10 years.
(3)Â
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 Bergen. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(4)Â
A restricted rental unit shall remain subject to the affordability
controls of this article, despite the occurrence of any of the following
events:
Q.Â
Price restrictions for rental units; leases.
(1)Â
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)Â
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)Â
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.
R.Â
Tenant income eligibility.
(1)Â
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)Â
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)Â
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)Â
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
(2)Â
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
a 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)Â
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)Â
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)Â
The household is currently in substandard or overcrowded living
conditions;
(d)Â
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)Â
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.
S.Â
Conversions.
(1)Â
Each affordable housing unit created through the conversion of a
nonresidential structure shall be considered a new housing unit and
shall be subject to the affordability controls for a new housing unit.
T.Â
Alternative living arrangements.
(1)Â
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(a)Â
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however,
that the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the Court;
(b)Â
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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)Â
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 Court.
(3)Â
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.
A.Â
The position of Municipal Housing Liaison for the Borough of Franklin
Lakes is hereby established. The Municipal Housing Liaison shall be
appointed by duly adopted resolution of the Borough Mayor and Council
and be subject to the approval by the Superior Court.
B.Â
The Municipal Housing Liaison must be either a full-time or part-time
employee of the Borough of Franklin Lakes.
C.Â
The Municipal Housing Liaison must meet the requirements for qualifications,
including initial and periodic training found in N.J.A.C. 5:93.[1]
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
D.Â
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Borough
of Franklin Lakes, including the following responsibilities, which
may not be contracted out to the administrative agent:
(1)Â
Serving as the municipality's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents and interested households;
(2)Â
The implementation of the affirmative marketing plan and affordability
controls;
(3)Â
When applicable, supervising any contracting administrative agent;
(4)Â
Monitoring the status of all restricted units in the Borough of Franklin
Lakes' Fair Share Plan;
(5)Â
Compiling, verifying and submitting annual reports as required by
the Superior Court;
(6)Â
Coordinating meetings with affordable housing providers and administrative
agents, as applicable; and
(7)Â
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing as offered or approved
by the Superior Court.
A.Â
The Borough shall designate by resolution of the Borough Mayor and
Council, subject to the approval of the Superior Court, one or more
administrative agents to administer newly constructed affordable units
in accordance with N.J.A.C. 5:93[1] and UHAC.
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
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).
B.Â
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 the Superior Court. 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).
C.Â
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, 5:80-26.16 and 5:80-26.18 thereof,
which includes:
(1)Â
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by the Superior Court;
(2)Â
Affirmative marketing;
(3)Â
Household certification;
(4)Â
Affordability controls;
(5)Â
Records retention;
(6)Â
Resale and rerental;
(7)Â
Processing requests from unit owners; and
(8)Â
Enforcement, although the ultimate responsibility for retaining controls
on the units rests with the municipality.
D.Â
The administrative
agent shall, as delegated by the Borough Mayor and Council, have the
authority to take all actions necessary and appropriate to carry out
its responsibilities hereunder.
A.Â
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.
B.Â
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:
(1)Â
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:
(a)Â
A fine of not more than $500 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;
(b)Â
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 Borough of Franklin Lakes Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)Â
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.
(2)Â
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.
C.Â
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.
D.Â
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.
E.Â
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.
F.Â
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.
G.Â
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.
H.Â
The owner shall remain fully obligated, responsible and liable for
complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
Appeals from all decisions of an administrative agent designated
pursuant to this article shall be filed in writing with the Borough.
