This article shall be known and may be cited as the "Affordable
Housing Ordinance of the Borough of Closter."
The purpose of this article is to establish a mechanism for
assuring that housing units designed for occupancy by low- and moderate
income households remain affordable to and occupied by low- and moderate-income
households.
The following terms when used in this article shall have the
meanings given in this section:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Borough to administer affordable
units in accordance with this article, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which New restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
AFFORDABLE HOUSING DEVELOPMENT
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Borough's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that all the residents of the development wherein the unit is
situated are 62 years of age or older; or at least 80% of the units
are occupied by one person who is 55 years of age or older; or the
development has been designated by the Secretary of the U.S. Department
of Housing and Urban Development as "housing for older persons" as
defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
ALTERNATIVE LIVING ARRANGEMENT
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
ASSISTED LIVING RESIDENCE
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
DEVELOPMENT
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.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market
rate units. This term includes, but is not limited to new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load bearing structural
systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable housing
region as adopted annually by COAH or a successor entity approved
by the Court.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
NONEXEMPT SALE
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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted Regional Income Limits published annually
by COAR or a successor entity.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26, et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for purposes of a rehabilitation
program.
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
|
In referring certified households to specific restricted units,
the administrative agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A. Provide an occupant for each bedroom;
B. Provide children of different sexes with separate bedrooms;
C. Provide separate bedrooms for parents and children; and
D. Prevent more than two persons from occupying a single bedroom.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A. The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
B. The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C. The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D. The owners of restricted ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See §
200-54.21.
An administrative agent shall be an independent entity serving
under contract to and reporting to the municipality. The fees of the
administrative agent shall be paid by the owners of the affordable
units for which the services of the administrative agent are required.
The administrative agent shall perform the duties and responsibilities
of an administrative agent as set forth in UHAC, including those set
forth in Sections 5:80-26.14, 16 and 18 thereof, which includes:
A. Affirmative marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Borough of Closter and the provisions of N.J.A.C. 5:80-26.15;
and
(2)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B. Household certification:
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a very-low, low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
(5)
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
(6)
Employing a random selection process as provided in the affirmative
marketing plan of the Borough of Closter when referring households
for certification to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Borough of Closter: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
Bergen County NAACP, Urban League of Bergen County, Bergen County
Housing Coalition, and Supportive Housing Association.
C. Affordability controls:
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Bergen
County Register of Deeds or Bergen County Clerk's office after the
termination of the affordability controls for each restricted unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to NJ.AC. 5:80-26.10.
D. Resales and rerentals:
(1)
Instituting and maintaining an effective means of communicating
information between owners and the administrative agent regarding
the availability of restricted units for resale or rerental; and
(2)
Instituting and maintaining an effective means of communicating
information to very-low, low- and moderate-income households regarding
the availability of restricted units for resale or rerental.
E. Processing requests from unit owners:
(1)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this article;
(2)
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air conditioning
systems;
(3)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units
for hardship waivers.
F. Enforcement:
(1)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(2)
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
administrative agent;
(3)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the administrative agent where complaints of excess
rent or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
(5)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each
affordable housing program administered by the administrative agent,
to be approved by the Borough Council and the Court, setting forth
procedures for administering the affordability controls.
G. Additional responsibilities:
(1)
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(2)
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this article and the settlement agreement.
(3)
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
Applications shall be accepted only if submitted on an application
form prepared and/or approved by the administrative agency. Applications
shall be completely filled out and notarized. Knowingly or intentionally
making any false statement on a form shall be grounds for disqualifying
an applicant even if the applicant is otherwise eligible. In placing
households in low- and moderate-income unit, the following verification
and certification procedures shall be employed:
A. Every household member 18 years of age or over who will live in the
affordable unit and receives income shall be required to provide income
documentation. This includes income received by adults on behalf of
minor children for their benefit. Household members 18 years of age
or over not receiving income must produce documentation of current
status.
B. Verification may include, but is not limited to, the following:
(1)
Four consecutive pay stubs including overtime, bonuses, or tips
dated within 120 days of the interview date or a letter from an employer
stating present annual income figure as projected annually;
(2)
A copy of regular IRS form 1040 (tax computation form) 1040A,
or 1040 EZ, as applicable and state income tax returns filed for each
of the three years prior to the date of the interview;
(3)
A letter of appropriate reporting form verifying benefits such
as social security, unemployment, welfare, disability or pension income
(monthly or annually);
(4)
A letter or appropriate reporting form verifying any other sources
of income claimed by the applicant such as alimony and child support;
(5)
Reports that verify income from assets to be submitted by banks
or other financial institutions managing trust funds, money market
accounts, certificate of deposits, stocks or bonds;
(6)
Evidence or reports of income from assets such as real estate
or businesses that are directly held by any household member;
(7)
Evidence or reports that verify assets that do not earn regular
income such as non-income-producing real estate or savings that do
not earn interest; and
(8)
A notarized statement of explanation in such form as to be satisfactory
to the administrative agency.
C. Generally, sources of annual income shall be based on regular income
reported to the IRS and which can be utilized for mortgage approval.
Household annual gross income shall be calculated by projecting current
gross income over a twelve-month period.
D. Income includes but is not limited to wages, salaries, tips, commission,
alimony, regularly scheduled overtime, pensions, social security,
unemployment compensation, AFDC, verified regular child support, disability,
net income from business or real estate, and income from assets such
as savings, CDs money market, mutual funds, stocks and bonds and imputed
income from non-income producing assets such as equity in real estate.
E. Assets not earning a verifiable income shall have an imputed interest
income using a current average annual savings interest rate. Assets
not earning income include present real estate equity. Applicants
owning real estate must produce documentation of a market value appraisal
and outstanding mortgage debt. The difference will be treated as the
monetary value of the asset and the imputed interest added to income.
F. Income from assets that have delayed earnings, such as IRA's or annuity
programs, shall not be included in the current income until such payments
are being received. However, these assets must be reported and verified.
G. Net rent from real estate is considered income after the monthly
mortgage payment including real estate taxes and insurance is deducted.
Other expenses are not deductible. In addition, the equity in the
rented real estate is considered an asset and will have the imputed
interest income on the calculated value of equity added to income.
H. Income does not include payments, rebates, or credits received under
federal or state low-income home energy assistance programs, food
stamps, payments received for care of foster children, relocation
assistance benefits, income of live-in attendants, scholarships, student
loans, personal property such as automobiles, lump-sum additions to
family assets such as inheritances, one-time lottery winnings, and
insurance settlements except for additional income earned from these
additions, and casual, sporadic or irregular gifts and bonuses.
I. Standard credit information services that provide conventional credit
and tenant reports may be utilized when certifying a household with
required written permission from the household. An unsatisfactory
credit history or credit information that demonstrates a disproportionate
debt-to-income ratio may result in a denial of certification. Court-ordered
payments for alimony or child support to another household shall be
considered a regular monthly debt whether or not it is being paid
regularly.
J. Households whose total gross annual income is measured at 50% or
below 50% of the authorized median income guideline shall be certified
as low-income households and referred to units designated for low-income
households.
K. Households whose total gross annual income is measured above 50%
but below 80% of the authorized median income guideline shall be certified
as moderate-income households and referred to units designated for
moderate-income households.
L. Generally, households will be referred to units where predetermined
total monthly housing costs correspond to the household's calculated
ability to pay using 28% of gross monthly income as a standard for
home ownership and 30% of gross monthly income as standard for rental
units.
M. At the discretion of the administrative agency, households may also
be required to produce documentation of household composition for
determining the correct unit size and applicable median income guide.
N. Generally, households will be referred to available units using the
following standards of occupancy:
(1)
A maximum of two persons per bedroom;
(2)
Children of same sex in bedroom;
(3)
Unrelated adults or persons of the opposite sex other than husband
and wife in separate bedrooms; and
(4)
Children no in the same bedroom with parents.
O. Households may be considered for units other than as above, but in no case shall a household be referred to a unit that provides for more than one additional bedroom per household occupancy standard as stated in Subsection
N above.
P. A form for certification shall be prepared and signed by the administrative
agency. Only households receiving certification shall be referred
to affordable units.
Q. Certified household who reject an opportunity for affordable housing
may remain on the referral list at their request and may be reinterviewed
for certification when their name appears on a list for a subsequent
unit.
R. Certification shall be valid for no more than 120 days unless a valid
sales contract or lease has been executed within that time period.
In this event, certifications shall be valid until such time as the
sales contract or lease is ruled invalid and no occupancy has occurred.
Certifications may be renewed in writing at the request of a certified
household for no more than an additional period of 120 days at the
discretion of the administrative agency.
S. Households who are denied certification may make a written request
for redetermination. Households shall be required to produce additional
documentation to support their claim.