[1]
Editor's Note: This ordinance also changed the title of the
article from "Affordable Housing" to "Affordable Housing, Development
Fees, and Mandatory Set-aside."
The following terms, when used in this article, shall have the
meanings given in this section:
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 article, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26.1), and any provisions under N.J.A.C. 5:97[1] that were not invalidated by Mount Laurel IV and any successor
regulations.
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 new restricted
units in an affordable housing development are affordable to very
low-, low- and moderate-income households.
A sales price or rent level that is within the means of a
very low-, low-or moderate-income household as defined in N.J.A.C.
5:93 and N.J.S.A. 52:27D-304 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.
A housing development of which all or a portion consists
of housing affordable to very low-, low- and moderate-income households.
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 housing 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[2] and any provisions under N.J.A.C. 5:97 that were not invalidated
by Mount Laurel IV, 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:
All the residents of the development where the unit is situated
are 62 years of age or older; or
At least 80% of the units are occupied by one person that is
55 years of age or older; or
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.
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 building 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 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 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.
A household determined to be income eligible for a very low-,
low-, or a moderate-income housing unit by a qualified Administrative
Agent after the Agent has verified the household's gross annual
income, credit history, and compared the household's family size
to the occupancy requirements delineated in N.J.A.C. 5:93-9.1(b)14.
The Council on Affordable Housing, as established by 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 and as required by N.J.S.A. 52:27D-329.2.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with 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 and the funding sources,
if applicable, by which a municipality 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. 5:97-3.
The New Jersey Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
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.
The portion of the Township's Master Plan required by
the Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-28b(3) and other
legislation.
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 reconstruction of
a vacant residential structure.
Includes revenue and receipts, actual or fairly imputed,
from all sources, including, but not limited to, wages, interest,
dividends, social security, pensions, government benefits, alimony,
child support and rents from income property.
The first transfer of occupancy from a developer to a qualified
renter.
The first transfer of title of a unit from a developer to
a qualified buyer.
A household with a total gross annual household income equal
to 50% or less of the median household income for the applicable housing
region.
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 very low-, low- and moderate-income
households that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income for
the applicable housing region.
A restricted unit that is affordable to a moderate-income
household.
A municipal employee responsible for oversight of the municipal
affordable housing program, including overseeing the administration
of affordability controls, the Affirmative Marketing Plan, monitoring
and reporting, and, where applicable, supervising any contracted Administrative
Agent.
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.
An estimate of low- and moderate-income households living
in substandard housing as calculated through the use of census surrogates.
1999 fair share based on N.J.A.C. 5:93-1.
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), UHAC (N.J.A.C. 5:80), and except for Section
311.11(j) of the FHA, which allows for a municipality to enter into
an agreement with a developer to provide a preference for affordable
housing to low- and moderate-income veterans ("Veteran's Preference")
who served in time of war or other emergency as defined in Section
1 of P.L.1963, c. 171 (N.J.S.A. 54:4-8.10), of up to 50% of the affordable
units in a particular project. N.J.S.A. 52:27D-311.11(j).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional medianas
defined by COAH's (or a Court-approved successor entity's)
adopted regional income limits published annually by COAH or a successor
entity approved by the Court.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or an 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 Superior Court of New Jersey.
2025 housing obligation as determined by the Superior Court.
The Township of Mount Laurel.
The Township Council of the Township of Mount Laurel.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income for the applicable housing
region.
A restricted unit that is affordable to a very low-income
household.
A preference for very-low-, low- and moderate-income housing
that is permitted by law for people that have served in the military,
pursuant to Section 311.11(j). of the FHA, which allows for a municipality
to enter into an agreement with a developer to provide a preference
for affordable housing to low- and moderate-income veterans who served
in time of war or other emergency as defined in Section 1 of P.L.
1963, c. 171 (N.J.S.A. 54:4-8.10), of up to 50% of the affordable
units in a particular project. N.J.S.A. 52:27D-311.11(j).
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 the rehabilitation
program.
A.Â
Basic requirements.
(1)Â
Mount Laurel Township shall not spend development fees until
the Court has approved a plan for spending such fees.
B.Â
Residential development fees.
(1)Â
Imposed fees.
(a)Â
Within all residential zones and/or developments in the Township
of Mount Laurel, residential developers, except for developers of
the types of development specifically exempted below, shall pay a
fee of 1.5% of the equalized assessed value for residential development,
provided that no increased density is permitted.
(b)Â
When an increase in residential density pursuant to N.J.S.A.
40:55D-70d(5) (known as a "d" variance) has been permitted, developers
are required to pay a development fee of 6% of the equalized assessed
value for each additional unit that is realized. However, if the zoning
on a site has changed during the two-year period preceding the filing
of such a variance application, the base density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the variance application.
Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the fees would equal 1.5%
of the equalized assessed value on the first two units, and 6% of
the equalized assessed value for the two additional units, provided
that zoning on the site has not changed during the two-year period
preceding the filing of such a variance application.
(2)Â
Eligible exactions, ineligible exactions and exemptions for
residential development.
(a)Â
Developments that include affordable housing, developments where
the developer is providing for the construction of affordable units
elsewhere in the municipality, and developments where the developer
has made a payment in lieu of on-site construction of affordable units
shall be exempt from development fees.
(b)Â
Developments that have received preliminary or final site plan
approval prior to the adoption of a municipal development fee ordinance
shall be exempt from development fees, unless the developer seeks
a substantial change in the approval. Where a site plan approval does
not apply, a zoning and/or building permit shall be synonymous with
preliminary or final site plan approval for this purpose. The fee
percentage shall be vested on the date that the building permit is
issued.
(c)Â
Development fees shall be imposed and collected when an existing
structure undergoes a change to a more intense use, is demolished
and replaced, or is expanded, if the expansion is not otherwise exempt
from the development fee requirement. The development fee shall be
calculated on the increase in the equalized assessed value of the
improved structure.
(d)Â
Homes replaced as a result of a natural disaster such as a fire
or a flood shall be exempt from the payment of a development fee.
C.Â
Nonresidential development fees.
(1)Â
Imposed fees.
(a)Â
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted,
shall pay a fee equal to 2.5% of the equalized assessed value of the
land and improvements, for all nonresidential construction.
(b)Â
Nonresidential developers, except for developers of the types
of development specifically exempted, shall also pay a fee equal to
2.5% of the increase in equalized assessed value resulting from any
additions to existing structures to be used for nonresidential purposes.
(c)Â
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement,
at the time final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
(2)Â
Eligible exactions, ineligible exactions and exemptions for
nonresidential development.
(a)Â
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the development fee of 2.5% unless
otherwise exempted below.
(b)Â
The fee of 2.5% shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within existing
footprint, reconstruction, renovations and repairs.
(c)Â
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46,[1] as specified in Form N-RDF, "State of New Jersey Non-Residential
Development Certification/Exemption" form. Any exemption claimed by
a developer shall be substantiated by that developer.
[1]
Editor's Note: N.J.S.A. 40:55D-8.1 through 40:55D-8.7.
(d)Â
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.
(e)Â
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 Mount Laurel Township as a lien against the
real property of the owner.
D.Â
Collection procedures.
(1)Â
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)Â
For nonresidential developments only, the developer shall also
be provided with a copy of Form N-RDF, "State of New Jersey Non-Residential
Development Certification/Exemption," to be completed as per the instructions
provided. The 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)Â
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)Â
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)Â
The construction official responsible for the issuance of a
final certificate of occupancy shall notify 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)Â
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)Â
Should Mount Laurel Township 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)Â
Fifty percent of the development fee shall be collected at the
time of issuance of the building permit. The remaining portion shall
be collected at the issuance of the certificate of occupancy. The
developer shall be responsible for paying the difference between the
fee calculated at building permit and that determined at issuance
of certificate of occupancy.
(9)Â
Appeal of development fees.
(a)Â
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 Mount Laurel Township. 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)Â
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 Mount Laurel Township.
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.
E.Â
Affordable housing trust fund.
(1)Â
There has previously been created a separate, interest-bearing
housing trust fund that will continue to be maintained by the Chief
Financial Officer and Township Clerk for the purpose of depositing
development fees collected from residential and nonresidential developers
and proceeds from the sale of units with extinguished controls.
(2)Â
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)Â
Payments in lieu of on-site construction of affordable units;
(b)Â
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(c)Â
Rental income from municipally operated units;
(d)Â
Repayments from affordable housing program loans;
(e)Â
Recapture funds;
(f)Â
Proceeds from the sale of affordable units; and
(g)Â
Any other funds collected in connection with Mount Laurel Township's
affordable housing program.
(3)Â
The Township has previously provided COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
the bank with which the affordable housing fees are deposited by the
Township and maintained by said bank, and COAH. That authority now
rests with the Court.
(4)Â
All interest accrued in the housing trust fund shall only be
used on eligible affordable housing activities approved by the Court.
F.Â
Use of funds.
(1)Â
The expenditure of all funds shall conform to a spending plan
approved by the Court. Funds deposited in the housing trust fund may
be used for any activity approved by the Court to address Mount Laurel
Township'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 shall conform to a spending plan approved
by the Court.
(2)Â
Except as specifically provided by court order, funds shall
not be expended to reimburse Mount Laurel Township for past housing
activities.
(3)Â
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)Â
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)Â
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)Â
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.
(4)Â
Mount Laurel Township may contract with a private or public
entity to administer any part of its Housing Element and fair share
plan, including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:93.
(5)Â
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 applicable 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.
(6)Â
Court approval of Mount Laurel's spending plan constitutes
a "commitment" on the part of Mount Laurel Township for expenditure
of funds pursuant to N.J.S.A. 52:27D-329.2 and 329.3, with the four-year
time period for expenditure designated pursuant to those provisions
to commence on the anniversary of a final Judgment of Repose in accordance
with the provisions of In re Tp. Of Monroe, 442 N.J. Super. 565 (Law
Div. 2015) (Aff'd 442 N.J. Super. 563.)
G.Â
Monitoring. By January 19 of each year through 2025, Mount Laurel
Township agrees to provide annual reporting of trust fund activity
to the New Jersey Department of Community Affairs, Council on Affordable
Housing, or Local Government Services, or other entity designated
by the State of New Jersey, with a copy provided to Fair Share Housing
Center and posted on the municipal website, using forms developed
for this purpose by the New Jersey Department of Community Affairs,
Council on Affordable Housing, or Local Government Services. The reporting
shall include an accounting of all housing trust fund activity, including
the source and amount of funds collected and the amount and purpose
for which any funds have been expended.
H.Â
Ongoing collection of fees. The ability for Mount Laurel Township
to impose, collect and expend development fees shall expire with its
substantive certification or judgment of compliance unless Mount Laurel
Township has filed an adopted Housing Element and Fair Share Plan
with the Court, has petitioned for substantive certification or judgment
of compliance and repose, and has received Court approval of its development
fee ordinance. If Mount Laurel Township fails to renew its ability
to impose and collect development fees prior to the expiration of
substantive certification or judgment of compliance and repose, 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).
I.Â
Mount Laurel Township 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 Mount Laurel Township retroactively
impose a development fee on such a development. Mount Laurel Township
shall not expend development fees after the expiration of its substantive
certification or judgment of compliance.
A.Â
Mount Laurel's rehabilitation program shall be designed to renovate
deficient housing units occupied by very low-, low- and moderate-income
households such that, after rehabilitation, these units will comply
with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
There is a multitown consortium rental rehabilitation program in Burlington
County, administered by Community Grants Planning & Housing, for
which the Township has set-aside funding in its Spending Plan, and
will participate in and will provide funds for rental units to be
rehabilitated, until the minimum rental units prescribed have been
completed. Additionally, the Township will continue to participate
in the Burlington County Community Development Block Grant (CDBG)
Program for owner-occupied units to be rehabilitated. The goal of
the Township's rehabilitation program is to satisfy the Township's
present need of 86 units.
(1)Â
All rehabilitated rental and owner-occupied units shall remain
affordable to very low-, low-, and moderate-income households for
a period of 10 years (the control period). For owner-occupied units,
the control period will be enforced with a lien and for renter occupied
units the control period will be enforced with a deed restriction.
(2)Â
Units in a Rehabilitation Program shall be administered in accordance
with the following:
(a)Â
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a very low-, low-, or moderate-income household at an affordable
rent and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(b)Â
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(c)Â
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9 or the standards issued by a New
Jersey administrative agency with proper authority to issue such standards.
(d)Â
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
A.Â
The Township will monitor its existing very low-, low- and moderate-income
units to determine the date upon which controls on affordability will
expire.
B.Â
When the controls on affordability are due to expire prior to July
1, 2025, the Township will offer incentives for the owners to voluntarily
extend controls on affordability for a new term of at least 30 years.
Controls will be extended through use of a deed restriction consistent
with UHAC.
A.Â
The Township will administer a program designed to purchase market
housing and convert the housing into deed restricted low- and moderate-income
housing.
B.Â
The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(1)Â
Bedroom distribution [N.J.A.C. 5:80-26.3(b) and (c)]; however,
this article shall not restrict the number of bedrooms per unit;
(2)Â
Low-/moderate-income split [N.J.A.C. 5:80-26.3(a)]; subject
to the provisions of N.J.A.C. 5:80-26.3(a) above, units in a market-to-affordable
program shall be exempt from the requirement that at least 50% of
the units created shall be affordable to households earning 50% or
less of regional median income. In programs limited only to moderate-income
households, an equivalent number of housing units for low-income households
shall be addressed through other mechanisms in the Fair Share Plan;
and
(3)Â
Affordability average [N.J.A.C. 5:80-26.3(d) and (e)]; however:
(a)Â
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60% of median income, and the maximum
rent for a low-income unit shall be affordable to households earning
no more than 44% of median income; and
(b)Â
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70% of median income,
and the maximum sales price for a low-income unit shall be affordable
to households earning no more than 40% of median income.
A.Â
Affordable housing set-aside. A mandatory on-site affordable housing
set-aside requirement shall apply beginning with the effective date
of this article to any residential development, including the residential
portion of a mixed-use project, which consists of five or more new
residential units at six units per acre or higher, or equivalent,
which results, in whole or in part, from: (i) a municipal rezoning
or zoning amendment adopted after the effective date of this article;
(ii) any variance pursuant to N.J.S.A. 40:55D-70(d), including, but
not limited to, any use variance or a density variance increasing
the permissible density; and (iii) the adoption of a new or amended
redevelopment plan or rehabilitation plan. The set-aside shall be
20% where the affordable units are provided for sale and 15% where
the affordable units are provided for rental.
(1)Â
All affordable housing controls and standards are subject to the rules of the Council on Affordable Housing (COAH) or any subsequent state agency, or as approved by the Court. The development, marketing and sale of the affordable units shall be pursuant to applicable state regulations and § 154-205 of this chapter, and any subsequent amendments thereto.
(2)Â
This requirement shall not impose any obligation on a development,
or the nonresidential portion of a mixed-use development, that is
subject to the Statewide Non-Residential Development Fee Act, N.J.S.A.
40:55D-8.1 et seq.
(3)Â
All subdivision and site plan approvals of qualifying developments
shall be conditioned upon compliance with the provisions of the mandatory
affordable housing set-aside.
(4)Â
No subdivision shall be permitted or approved for the purpose
of avoiding compliance with the mandatory affordable housing set-aside.
A developer may not, for example, subdivide a project into two lots
and then plan each of them to produce a number of units below the
threshold. The approving authority may impose any reasonable conditions
to ensure such compliance.
(5)Â
The mandatory affordable housing set-aside shall not give any
developer the right to any rezoning, variance, redevelopment designation
or redevelopment or rehabilitation plan approval, or any other such
relief, or establish any obligation on the part of the municipality
to grant such rezoning, variance, redevelopment designation, redevelopment
or rehabilitation plan approval, or other such or further relief.
A.Â
Phasing. Inclusionary developments shall be subject to the following
schedule, except where an alternate phasing schedule has been incorporated
into a development or redevelopment agreement:
|
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.Â
Fractional units. In the event the number of affordable housing units
to be provided incudes a fraction, the number shall be rounded up
if the fractional amount is 0.5 or greater and rounded down if the
fractional amount is less than 0.5. For inclusionary projects, the
developer shall provide a payment in lieu of constructing affordable
units for the fraction of a unit less than 0.5. The payment in lieu
shall be based on the amounts established in N.J.A.C. 5:97-6.4(c)[1] as increased by updated development cost documentation
on file in the Township.
[1]
Editor's Note: N.J.A.C. 5:97 expired on June 2, 2015.
C.Â
Integration of affordable units. Affordable units shall be integrated
with the market-rate units on-site, and the affordable units shall
not be concentrated in separate building(s) or in separate area(s)
or floor(s) from the market-rate units. In buildings with multiple
dwelling units, this shall mean that the affordable units shall be
generally distributed within each building with market-rate units.
The affordable units shall also be of the same type as the market-rate
units (e.g., if the market-rate units are non-age-restricted family
units, the affordable units shall be non-age-restricted family units
as well). The residents of the affordable units shall have full and
equal access to all of the amenities, common areas, and recreation
areas and facilities as the residents of the market-rate units.
D.Â
Controls.
(1)Â
All affordable units created shall fully comply with the Uniform
Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq. (UHAC),
including, but not limited to, the required bedroom and income distribution,
with the sole exception that for inclusionary projects with more than
four affordable units at least 13% of the affordable units shall be
required to be restricted for very low-income households earning 30%
or less of the median income pursuant to the Fair Housing Act, N.J.S.A.
52:27D-301, et seq. (FHA).
(2)Â
At least 50% of the affordable units within each bedroom distribution
shall be affordable to low-income households, inclusive of the at
least 13% of units affordable to very low-income households for inclusionary
projects with more than four affordable units.
(3)Â
The very low-income affordable units shall be proportionately
distributed within each bedroom distribution. In a family non-age-restricted
development, at no time shall the number of efficiency/one-bedroom
very low-income units exceed the number of three-bedroom very low-income
units.
(4)Â
Affordable units shall be subject to affordability controls
of at least 30 years from the date of initial occupancy and affordable
deed restrictions as otherwise provided for by UHAC, with the sole
exception that very low-income shall be defined as at or below 30%
of median income pursuant to the Fair Housing Act, and the affordability
controls shall remain unless and until the municipality, in its sole
discretion, takes action to extend or release the unit from such controls
after at least 30 years. In the event the municipality chooses to
release the controls on rental affordable units after at least 30
years, the controls shall remain in effect until the voluntary departure
of the occupant household in accordance with N.J.A.C. 5:80-26.11(b).
(6)Â
Affordable units shall be affirmatively marketed in accordance
with UHAC and applicable law. The affirmative marketing shall include
posting of all affordable units on the New Jersey Housing Resource
Center website in accordance with applicable law.
(7)Â
No developer may make a payment in lieu of constructing affordable units on site, except for fractional units as noted in Subsection B, above.
(8)Â
Nothing in this article precludes the municipality from imposing
an affordable housing set-aside in accordance with applicable law
in a development not required to have a set-aside pursuant to this
article.
E.Â
Off-site affordable housing units. Developers authorized to complete
off-site construction or conversion of existing units and obtain certificates
of occupancy for units intended for very low-, low-, and moderate-income
occupancy in tandem with the market-rate (unrestricted) units shall
produce affordable units according to the following schedule:
(1)Â
Fifty percent of the units must be constructed and/or converted
and deed restricted for affordable housing purposes prior to the issuance
of construction permits for on-site market-rate units. This requirement
shall not affect the issuance of permits up to and including footing
and foundation permits.
(2)Â
The remaining 50% of the affordable housing units must be constructed
and/or converted and deed restricted for affordable housing purposes
prior to the release of certificates of occupancy for the last 50%
of the market-rate on-site units.
(3)Â
As a part of the completeness review for final approval before
either Township land use board, the developer shall enter into a developer's
agreement with the Township outlining the commitment, timeline and
process for identifying off-site units. Said agreement shall be reviewed
and approved by the Township Solicitor and become effective at the
time of final approval by the appropriate land use board.
A.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. At least 13% of all restricted rental units shall be very low-income
units (affordable to a household earning 30% or less of median income).
The very low-income units shall be counted as part of the required
number of low-income units within the development.
(2)Â
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(3)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.
(4)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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.Â
Accessibility requirements:
(2)Â
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)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;
(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;
(f)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 and N.J.A.C. 5:97-3.14, or evidence that the Township 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, each builder of income-restricted units shall deposit
funds with the Township's 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 B(2)(f)[2] above shall be used by the Township for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]Â
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion of adaptable to accessible
entrances to the Construction Official of the Township.
[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
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's Affordable
Housing Trust Fund in care of the Township Treasurer who shall ensure
that the funds are deposited into the Affordable Housing Trust Fund
and appropriately earmarked.
C.Â
Design:
(1)Â
In inclusionary developments, to the extent possible, very low-,
low- and moderate-income units shall be integrated with the market
units, and not situated so as to be in less desirable locations than
the other units in the development. This shall mean that very low-,
low- and moderate-income units shall not be concentrated in separate
building(s) or in separate area(s) from the market-rate units. In
buildings with multiple dwelling units, this shall mean that the very
low-, low- and moderate-income units shall be generally distributed
within each building with market units. The residents of the very
low-, low- and moderate-income units shall have full and equal access
to all of the amenities, common areas, and recreation areas and facilities
as the residents of the market-rate units.
(2)Â
In inclusionary developments, very low-, low- and moderate-income
residents shall have and enjoy access equal to the market units to
all common open space(s) and elements, amenities, public facilities,
shopping facilities, and public transportation than the market units.
(3)Â
In inclusionary developments, the very low-, low- and moderate-income
units shall be no less than the largest minimum bedroom and unit square
footages required under the DCA Balanced Housing and HMFA Low Income
Housing Tax Credit program for bedroom sizes and unit sizes in affordable
units of the same bedroom number.
D.Â
Income limits; 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 the calculation procedures as approved by the Court and
detailed below:
(a)Â
Regional income limits shall be established for the region in
which the Township is located (i.e., Region 5) 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 the Township's
housing region. 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. The income limits calculated each year shall be the result of
applying the percentages set forth above to HUD's determination
of median income for the relevant fiscal year, and shall be utilized
until the Township updates the income limits after HUD has published
revised determinations of median income for the next fiscal year.
In no event shall the income limits be less than those for the previous
year.
(b)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 Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection D(1)(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.
(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 rental 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, provided that at least
13% of all low- and moderate- income rental units shall be affordable
to very low-income 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 sales prices
for each bedroom type. Low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(5)Â
In determining the initial sales prices and rent levels for
compliance with the affordability average requirements for restricted
units other than assisted living facilities and age-restricted developments,
the following standards shall be used:
(a)Â
A studio 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
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.
(7)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
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(8)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.
(9)Â
The rent of low- and moderate-income units may be increased
annually based on the permitted 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.
A.Â
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.Â
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by DCA for its Section 8 program.
In referring certified households to specific restricted units,
the Administrative Agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A.Â
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this article for a period of at least 30 years, until the Township
takes action to release the unit from such requirements; prior to
such action, a restricted ownership unit must remain subject to the
requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B.Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.Â
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 without the restrictions in place.
D.Â
At the time of the initial sale of the unit, the initial 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 restrictions set forth in this article,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
E.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.
F.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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.Â
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B.Â
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.Â
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners' association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D.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 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 § 154-213.
A.Â
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 very low-income ownership units shall be reserved for households
with a gross household income less than or equal to 30% of median
income, low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
B.Â
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to a certified
household for a period not to exceed one year. Violations of this
provision shall be subject to the applicable enforcement provisions
of this article.
C.Â
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is very low-income
household, 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
eligible monthly income. Notwithstanding the foregoing, the Administrative
Agent may, upon approval by the Township Council, and subject to the
Court's approval, permit a moderate-income purchaser to buy a
low-income unit if and only if the Administrative Agent can demonstrate
that there is an insufficient number of eligible low-income purchasers
in the housing region to permit prompt occupancy of the unit and all
other reasonable efforts to attract a low-income purchaser, including
pricing and financing incentives, have failed. Any such low-income
unit that is sold to a moderate-income household shall retain the
required pricing and pricing restrictions for a low-income unit.
A.Â
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination, in writing, that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
B.Â
With the exception of a first purchase money mortgage, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
A.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 made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B.Â
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit, and not included in the base price, may be made
a condition of the unit resale, provided the price, which shall be
subject to ten-year, straight-line depreciation, has been approved
by the Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.Â
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this article for a period of at least 30 years, until the Township
takes action to release the unit from such requirements. Prior to
such action, a restricted rental unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B.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 recorded by the developer or seller with the records office
of the County of Burlington. A copy of the filed, recorded document
shall be provided to the Administrative Agent within 30 days of the
receipt of a certificate of occupancy.
C.Â
A restricted rental unit shall remain subject to the affordability
controls of this article despite the occurrence of any of the following
events:
A.Â
A written lease shall be required for all restricted rental units,
except for units in assisted living residences, 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.
B.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.
C.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.
A.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:
(1)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.
(2)Â
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(3)Â
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
B.Â
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)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;
(2)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 continuing ability to pay;
(3)Â
The household is currently in substandard or overcrowded living
conditions;
(4)Â
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(5)Â
The household documents reliable anticipated third-party assistance
from an outside source such as a family member in a form acceptable
to the Administrative Agent and the owner of the unit.
A.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:
(1)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 state licensing/funding
agency (i.e., DHS);
(2)Â
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: The regulations at N.J.A.C. 5:93 expired
October 16, 2016.
B.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.
C.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
State regulations require the Township to appoint a specific municipal
employee to serve as a Municipal Housing Liaison responsible for overseeing
the administration of the affordable housing program, including affordability
controls, the Affirmative Marketing Plan, monitoring and reporting,
and, where applicable, supervising any contracted Administrative Agent.
This article creates the position of Municipal Housing Liaison. The
Municipal Housing Liaison shall be appointed by resolution of the
governing body and may be a full- or part-time municipal employee.
The Municipal Housing Liaison shall be approved by the Superior Court
unless such approval is delegated by the Court to COAH or a successor
entity and shall be duly qualified through a training program sponsored
by Affordable Housing Professionals of New Jersey either before or
within one year of assuming the duties of Municipal Housing Liaison.
B.Â
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Mount Laurel,
including the following responsibilities which may not be contracted
out to the Administrative Agent:
(1)Â
Serving as Mount Laurel's primary point of contact for
all inquiries from the state, affordable housing providers, Administrative
Agents and interested households;
(2)Â
Monitoring the status of all restricted units in Mount Laurel's
Fair Share Plan;
(3)Â
Compiling, verifying and submitting annual monitoring reports
as required by COAH, the organizations listed in the Township's
Settlement Agreement with FSHC, or any successor entity approved by
the Court;
(4)Â
Coordinating meetings with affordable housing providers and
Administrative Agents, as needed; and
(5)Â
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH, or a successor entity approved by the Court.
Subject to the approval of the Superior Court, the Township
shall designate one or more Administrative Agent(s) to administer
affordable units in accordance with N.J.A.C. 5:93 and UHAC. An operating
manual shall be provided by the Administrative Agent(s) to be adopted
by resolution of the Township Council and subject to approval of the
Superior Court or its designee. The operating manuals shall be available
for public inspection in the office of the Township Clerk and in the
office(s) of the Administrative Agent(s). The Municipal Housing Liaison
shall supervise the contracting Administrative Agent(s). The Administrative
Agent shall perform the duties and responsibilities of an Administrative
Agent as set forth in UHAC, including those set forth in N.J.A.C.
5:80-26.14, 5:80-16 and 5:80-18 thereof, which includes:
A.Â
Affirmative marketing.
(1)Â
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township and the provisions of N.J.A.C. 5:80-26.15; and
(2)Â
Providing counseling or contracting to provide counseling services
to very low-, low- and moderate-income applicants on subjects such
as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
B.Â
Household certification.
(1)Â
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)Â
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)Â
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)Â
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)Â
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
(Housing Region 5) comprising Burlington, Camden and Gloucester Counties;
and
(6)Â
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township when referring households for certification
to affordable units.
C.Â
Affordability controls.
(1)Â
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)Â
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)Â
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Burlington
County Clerk's office after the termination of the affordability
controls for each restricted unit;
(4)Â
Communicating with lenders regarding foreclosures; and
(5)Â
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
D.Â
Resales and re-rentals.
(1)Â
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or re-rental; and
(2)Â
Instituting and maintaining an effective means of communicating
information to very low-, low- and moderate-income households regarding
the availability of restricted units for resale or re-rental.
E.Â
Processing requests from unit owners.
(1)Â
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)Â
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)Â
Notifying the municipality of an owner's intent to sell
a restricted unit; and
(4)Â
Making determinations on requests by owners of restricted units
for hardship waivers.
F.Â
Enforcement.
(1)Â
Securing annually from the municipality a list of all for-sale
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)Â
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)Â
The posting annually in all rental properties, including legal
two-family homes, of a notice as to the maximum permitted rent for
affordable units, together with the telephone number of the Administrative
Agent where complaints of excess rentor other charges can be made;
(4)Â
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)Â
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund or other
appropriate municipal fund approved by the DCA; and
(6)Â
Creating and publishing a written operating manual, as approved
by the Court, COAH or a successor entity approved by the Court, setting
forth procedures for administering the affordability controls.
G.Â
Additional responsibilities:
(1)Â
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities,
hereunder.
(2)Â
The Administrative Agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time for their submission
by the Municipal Housing Liaison to COAH, the organizations listed
in the Township's Settlement Agreement with FSHC, or any successor
entity approved by the Court, as required by COAH or a successor entity
approved by the Court.
(3)Â
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing as offered or approved by COAH or a successor entity approved
by the Court.
A.Â
The Township shall adopt by resolution an Affirmative Marketing Plan,
subject to approval of the Court, that is compliant with N.J.A.C.
5:80-26.15 and the FHA, as may be amended and supplemented.
B.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 intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
It is a continuing program that directs marketing activities toward
COAH Housing Region 5 and is required to be followed throughout the
period of restriction.
C.Â
The Township 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),
FSHC, 510 Park Boulevard, Cherry Hill, NJ; Fair Share Housing Development,
One Ethel Lawrence Boulevard, Mount Laurel, NJ 08054; Camden County
NAACP, 1123Â 1/2 Kaign Avenue, Camden, NJ 08103; the Latino Action
Network, PO Box 943, Freehold, NJ 07728; Willingboro NAACP, PO Box
207, Roebling, NJ 09854; Southern Burlington County NAACP, PO Box
3211, Cinnaminson, NJ 08077; Burlington County Community Action Program,
718 Route 130 South, Burlington, NJ 08016; the Supportive Housing
Association, 15 Alden Street, No. 14, Cranford, NJ 07016, and the
New Jersey Housing Resource Center, https://www.nj.gov/njhrc/, in
accordance with applicable law, 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 Township also agrees to require any other entities,
including developers or persons or companies retained to do affirmative
marketing, to comply with this subsection.
D.Â
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 5,
comprising Burlington, Camden and Gloucester Counties.
E.Â
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The Administrative Agent designated by
the Township of Mount Laurel shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
F.Â
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to very low-, low-
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
G.Â
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the Administrative Agent shall consider
the use of language translations where appropriate.
H.Â
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
I.Â
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request. The costs of advertising and affirmative marketing of
the affordable units shall be the responsibility of the developer,
sponsor or owner.
A.Â
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the Township
shall have all remedies provided at law or equity, including, but
not limited to, foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B.Â
After providing written notice of a violation to an owner, developer
or tenant of a very low-, low- or moderate-income unit and advising
the owner, developer or tenant of the penalties for such violations,
the municipality may take the following action(s) against the owner,
developer or tenant for any violation that remains uncured for a period
of 60 days after service of the written notice:
(1)Â
The Township may file a court action in Superior Court pursuant
to N.J.S.A. 2A:58-11 alleging a violation or violations of the regulations
governing the affordable housing unit. If the owner, developer or
tenant is adjudged by the Court to have violated any provision of
the regulations governing affordable housing units, the owner, developer
or tenant shall be subject to one or more of the following penalties,
at the discretion of the Superior Court:
(a)Â
A fine of not more than $500 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
(b)Â
In the case of an owner who has rented a very low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Township of Mount Laurel Affordable
Housing Trust Fund of the gross amount of rent illegally collected;
(c)Â
In the case of an owner who has rented a very low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Superior Court.
(2)Â
The Township may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the first purchase money mortgage and
shall constitute a lien against the very low-, low- or moderate-income
unit.
(a)Â
The judgment shall be enforceable, at the option of the Township,
by means of an execution sale by the Sheriff, at which time the very
low-, low- and moderate-income unit of the violating owner shall be
sold at a sale price which is not less than the amount necessary to
fully satisfy and pay off any first purchase money mortgage and prior
liens and the costs of the enforcement proceedings incurred by the
municipality, including attorney's fees. The violating owner
shall have his right to possession terminated as well as his title
conveyed pursuant to the Sheriff's sale.
(b)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 very low-, low- and moderate-income unit. The excess, if
any, shall be applied to reimburse the Township 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 Township in full as aforesaid, the violating owner shall
be personally responsible for the full extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the Township 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 Township,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(c)Â
Foreclosure by the Township due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the very low-, low- and moderate-income unit. Title shall
be conveyed to the purchaser at the Sheriff's sale, subject to
the restrictions and provisions of the regulations governing the affordable
housing unit. The owner determined to be in violation of the provisions
of this plan and from whom title and possession were taken by means
of the Sheriff's sale shall not be entitled to any right of redemption.
(d)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 Township may acquire title to the very low-, low-
and moderate-income unit by satisfying the first purchase money mortgage
and any prior liens and crediting the violating owner with an amount
equal to the difference between the first purchase money mortgage
and any prior liens and costs of the enforcement proceedings, including
legal fees and the maximum resale price for which the very low-, low-
and moderate-income unit could have been sold under the terms of the
regulations governing affordable housing units. This excess shall
be treated in the same manner as the excess which would have been
realized from an actual sale as previously described.
(e)Â
Failure of the very low-, 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 very low-, low- and moderate-income unit as permitted by the
regulations governing affordable housing units.
(f)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.
A.Â
By January 19 of every year through the end of the repose period,
the Township shall provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs,
Council on Affordable Housing or Local Government Services, or other
entity designated by the State of New Jersey, with a copy provided
to Fair Share Housing Center and posted on the municipal website,
using forms developed for this purpose by the New Jersey Department
of Community Affairs, Council on Affordable Housing or Local Government
Services. The reporting shall include an accounting of all Affordable
Housing Trust Fund activity, including the source and amount of funds
collected and the amount and purpose for which any funds have been
expended.
B.Â
By January 19 of every year through the end of the repose period,
the Township shall provide annual reporting of the status of all affordable
housing activity within the municipality through posting on the municipal
website, with copies provided to Fair Share Housing Center, using
forms previously developed for this purpose by the Council on Affordable
Housing or any other forms endorsed by the Court-appointed Special
Master and Fair Share Housing Center.
C.Â
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Township shall post
on its municipal website, with copies provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity. Such posting shall invite any
interested party to submit comments to the municipality, with copies
provided to Fair Share Housing Center, regarding whether any sites
no longer present a realistic opportunity and should be replaced.
Any interested party may by motion request a hearing before the Court
regarding these issues.
D.Â
For the review of very low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the date of Mount Laurel Township's January 19, 2017 Settlement
Agreement with Fair Share Housing Center, and every third year thereafter,
the Township shall post on its municipal website, with copies provided
to Fair Share Housing Center, a status report as to its satisfaction
of its very low-income requirements, including the family very low-income
requirements referenced herein. Such posting shall invite any interested
party to submit comments to the municipality, with copies provided
to Fair Share Housing Center, on the issue of whether the municipality
has complied with its very low-income housing obligation.
Appeals from all decisions of an Administrative Agent appointed
pursuant to this article shall be filed, in writing, with the Superior
Court unless the Superior Court delegates this responsibility.
