Township of Barnegat, NJ Affordable Housing Requirements

Residential development fees - amount. All developers of residential major subdivisions or residential site plans shall pay a mandatory development fee equal to 1.5% of the equalized assessed valuation for each residential unit constructed. This mandatory fee shall be calculated as follows: 1.5% x equalized assessed valuation x number of units.

[Amended 7-5-05 by Ord. No. 2005-41; 6-11-2017 by Ord. No. 2017-17]

All nonresidential developers requiring one of the following approvals, except for developers of the types of development specifically exempted within this section, shall pay a mandatory development fee equal to2.5% of the total equalized assessed valuation of the nonresidential development.

[Amended 7-5-05 by Ord. No. 2005-41; 5-2-2017 by Ord. No. 2017-15; 11-13-2018 by Ord. No. 2018-33]

All new nonresidential construction on an unimproved lot or lots. This mandatory fee shall be calculated as follows: 2.5% x total equalized assessed value of the land and improvements.

Any addition(s) to existing structures to be used for nonresidential purposes. This mandatory fee shall be calculated as follows: 2.5% x the increase in total equalized assessed value resulting from the addition(s).

Demolition and replacement of any structure with a structure to be used for nonresidential purposes. This mandatory fee shall be calculated as follows: 2.5% x the difference between the equalized assessed value of the preexisting land and improvements and the equalized assessed value of the newly improved land and improvements. If the calculation required under this section results in a negative number, the nonresidential development fee shall be zero.

Timing of payments.

50% of the total mandatory development fee owed to Barnegat Township, whether for residential or nonresidential development, shall be paid prior to the issuance of any building permit required in connection with the development and shall be calculated as follows:

For residential developments, the 50% payment required prior to the issuance of any building permit shall be calculated using an estimated equalized valuation of each residential unit as determined by the Barnegat Township Tax Assessor.

For nonresidential developments, the 50% payment required prior to the issuance of any building permit shall be calculated using an estimated total equalized assessed valuation of the non-residential development as determined by the Barnegat Township Tax Assessor.

The remaining portion of the development fee shall be paid prior to the issuance of any certificate of occupancy for any development or any part thereof, whether residential or nonresidential, and shall be calculated using the actual assessed valuation of the development as determined by the Barnegat Township Tax Assessor.

Because the initial payment required prior to the issuance of a building permit is calculated using an estimated assessed valuation based on estimates for construction costs, the following adjustments are permitted to compensate for differences between the estimated assessed valuation and the actual assessed valuation:

[a]

If the estimated assessed valuation used to calculate the initial 50% payment was overestimated or underestimated, causing the actual assessed valuation to be less than or greater than the estimated assessed valuation used to calculate the initial 50% payment, the developer's certificate of occupancy payment shall be equal to the difference between the actual assessed valuation and the initial 50% payment as determined by the Barnegat Township Tax Assessor.

The Barnegat Township Tax Assessor shall have 15 working days to prepare the assessed valuations required in this section.

Exemption, eligible exactions and ineligible exactions.

Inclusionary developments, as defined herein, are exempt from development fees.

Developments that have received preliminary or final approval, prior to the effective date of this article, are exempt from development fees during the effective period of said approval, unless the developer seeks a substantial change in the approvals granted.

Low- and moderate-income dwelling units shall be exempt from paying development fees.

Development that expands an existing structure shall pay a development fee where applicable. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.

In accordance with N.J.S.A. 40:55D-8, any charitable, philanthropic, fraternal or religious non-profit organization holding tax exempt status under the Federal Internal Revenue Code of 1954 [26 U.S.C. § 501(c) or (d)] shall be exempt from the payment of a development fee.

Affordable Housing Trust Fund.

All mandatory development fees collected pursuant to this article shall be deposited in the interest bearing escrow account entitled the "Affordable Housing Trust Fund: Mandatory Fee Account."

If the court determines that Barnegat Township's spending is not in conformance with COAH's rules on development fees, the court is authorized to direct the manner in which all development fees collected pursuant to this article shall be expended.

Use of Funds.

Money deposited in the Affordable Housing Trust Fund may be used for any activity approved for addressing the Township's low- and moderate-income housing obligation. Such activities may include, but are not necessarily limited to: housing rehabilitation; new construction; regional contribution agreements; the purchase of land for low- and moderate-income housing; extensions and/or improvements of road and infrastructures to low- and moderate-income housing sites; assistance designed to render units to be more affordable to low- and moderate-income people; and administrative costs necessary to implement the Township's Housing Element. The expenditure of all money shall conform to the approved spending plan.

Unless specifically waived or unless fees are used to fund a Regional Contribution Agreement (RCA) or new construction project, not less than 30% of the revenues collected from development fees collected pursuant to this article shall be devoted to rendering existing units more affordable to low- and moderate-income households by funding such activities as downpayment assistance, low-interest loans and rental assistance.

No more than 20% of the revenues collected from development fees collected pursuant to this article shall be devoted to administrative expenses incurred by the Township in addressing its Fair Share obligation.

§ 55-352 REGULATIONS FOR INCLUSIONARY DEVELOPMENTS. [1]

Affordable Housing Administration.

The Township Committee shall designate an entity for the administration of the Township's Affordable Housing Program. The entity may be one or more persons employed by the Township, a qualified individual or company providing such services for a fee, the Affordable Housing Management Service (AHMS) of the New Jersey Department of Community Affairs, or other appropriate service provider.

The developer of the inclusionary housing development shall be responsible for the initial selling and rental price calculations, affirmative marketing requirements, and qualification of buyers or renters upon approval by the affordable housing program administrator pursuant to N.J.A.C. 5:93-9 et seq.

Household Income Limitations.

The income of low and moderate-income households occupying affordable housing shall not exceed the income limits as of January 1 of the current year (year of occupancy). Income qualification and verification shall be determined as required in N.J.A.C. 5:93-9.1(b). Inclusionary developments shall be divided equally between households with low incomes and households with moderate incomes.

Median income determination. Median income by household size shall be established by a regional weighted average of the uncapped Section 8 income limits published by the U.S. Department of Housing and Urban Development pursuant to N.J.A.C. 5:93-7.4(b).

Affordable housing purchase or rent. Low income affordable housing units shall be reserved for households with a gross household income less than or equal to fifty percent (50%) of the median income. Moderate income units shall be reserved for households with a gross household income less than eighty percent (80%) of the median income.

Unit Limitations.

Type of unit to be provided. In any inclusionary development, at least ten percent (10%) and no more than twenty percent (20%) of the required affordable units shall be efficiencies or one (1) bedroom dwellings, at least thirty percent (30%) of the required affordable units shall be two (2) bedroom dwellings and at least twenty percent (20%) of the required affordable housing units shall be three (3) bedroom dwellings, unless the development shall be for senior citizens only, in which case no three (3) bedroom units shall be required. The type of unit for the balance of the required affordable units shall be determined by the developer, and shall comply with the requirements of N.J.A.C. 5:93-7.3(b).

Size of units. The size of affordable housing units shall be a minimum of the following gross square footage:

Type of Unit	Minimum Size (square feet)
Efficiency	500
One bedroom	600
Two bedroom	750
Three bedroom	900

Certificates of occupancy. The following additional requirements for the issuance of certificates of occupancy shall apply to inclusionary developments:

The initial issuance of certificates of occupancy for market units shall be linked to the issuance of certificates of occupancy for affordable units. Prior to the issuance of the certificates of occupancy for market units, certificates of occupancy for affordable units shall be required in the following minimum ratios:

Percentage of Affordable Housing Units Completed	Percentage of Market Housing Units Completed
0%	25%
10%	25% + 1
50%	50%
75%	75%
100%	90%

Each unit of affordable housing shall require a certificate of occupancy, which shall become void upon a change of owner or tenant.

No certificate of occupancy shall be issued for low and moderate units unless the provisions of N.J.A.C. 5:93-9.3 are met.

Unit type and affordability. The following criteria, in conjunction with realistic market information, shall be used in determining maximum rents and sale prices.

Efficiency units shall be affordable to one (1) person households.

One (1) bedroom units shall be affordable to one and five-tenths (1.5) person households.

Two (2) bedroom units shall be affordable to three (3) person households.

Three (3) bedroom units shall be affordable to four and five-tenths (4.5) person households.

Distribution of low and moderate income units. The following criteria shall be used in determining the distribution of low and moderate income units within inclusionary developments:

With the exception of inclusionary developments constructed pursuant to low income tax credit regulations, at least half (1/2) of all units within each inclusionary development shall be affordable to low income households.

With the exception of inclusionary developments constructed pursuant to low income tax credit regulations, at least half (1/2) of all rental units shall be affordable to low income households.

With the exception of inclusionary developments constructed pursuant to low income tax credit regulations, at least one-third (1/3) of all units in each bedroom distribution shall be affordable to low income households.

Heating source. Affordable housing units shall utilize the same type of heating source as market units.

(7)

Design and unit integration. The facade of an affordable housing units shall be indistinguishable from market units in terms of the use of exterior materials, windows, doors, reveal, roof pitch, color, or other material. Affordable housing units shall be dispersed throughout an inclusionary development to the greatest extend possible.

(8)

Duplex units. The affordable housing units may be provided in duplex two-family structures provided that they satisfy the following requirements:

[Added 5-16-05 by Ord. No. 2005-29]

The size of each affordable housing unit shall meet the minimum gross square footage specified above.

Each of the units shall be in fee simple ownership.

Each unit shall be situated on its own lot which meets the minimum lot requirements for the zone in which the unit is located.

Each unit shall comply with the front yard and side yard setback requirements for the zone in which the unit is located. However, a minimum side yard setback of zero (0) feet is permitted along the common lot line separating the two (2) halves of the two-family unit.

There shall be no more than one (1) efficiency or one (1) bedroom unit per building.

Initial Selling and Renting Determinations.

For sale household limit. The affordable sales price shall be limited such that after a down payment of five percent (5%) the sum of the monthly payment for principal; mortgage interest; mortgage insurance; real estate taxes (property taxes shall be based on the restricted value of low and moderate income units); fire, theft, and liability insurance; and homeowner, condominium, or cooperative association dues or fees, if applicable, shall not exceed twenty-eight percent (28%) of the gross monthly income for low and moderate income families as set forth in N.J.A.C. 5:93-7.4(e).

Rental household limit. The monthly gross rental cost, including an allowance for utilities, of an affordable housing unit shall be limited such that the monthly payment shall not exceed thirty percent (30%) of the gross monthly income for low or moderate income households based on household size as set forth in N.J.A.C. 5:93-7.4(a). The utility allowances shall be consistent with the utility allowance approved by the U.S. Department of Housing and Urban Development for use in New Jersey.

Average selling or renting price. The maximum average rent and price of low and moderate income units within each inclusionary development shall be affordable to households earning fifty-seven and five-tenths percent (57.5%) of median income.

Additional for sale housing requirements.

Pricing stratification. At least two (2) different purchase prices for affordable units shall be established for low income buyers and at least three (3) different purchase prices for moderate income buyers in meeting the average selling price required.

Initial selling procedures shall be as required under N.J.A.C. 5:93-9.16.

Master deeds of inclusionary developments shall regulate homeowner, condominium, or cooperative fees, and special assessments paid by low and moderate income buyers to at least one-third (1/3) of the amount paid by market unit purchasers. The actual percentage set in the master deed shall be deter- mined by the Township Committee after recommendation by the affordable housing program administrator.

Additional rental housing requirements.

Pricing stratification. One (1) rent shall be established for each bedroom type affordable to a low income household; and another rent shall be established for each bedroom type affordable to a moderate income household.

Initial renting procedures shall be as required under N.J.A.C. 5:93-9.16.

Controls on Affordability.

Deed restrictions.

Any newly constructed affordable housing unit shall be deed restricted, and the deed shall also run through the municipality, such that any designated low income household unit or moderate income household unit shall remain affordable to the occupants within the income limits established by this Article for a period not less than thirty (30) years for units offered for sale and thirty (30) years offered for rent. Such deed restriction shall limit the units offered for sale and units offered for rental but shall not be construed as limiting ownership of any affordable housing unit by a municipality designated non-profit housing agency. The deed restriction shall take the form adopted by COAH and from which it may be amended from time to time.

Deed restrictions of affordable housing units shall include options for purchase for the first non-exempt sale after controls on affordability have been placed pursuant to N.J.A.C. 5:93-9.5 through -9.8. Municipal procedures for the rejection of such payment options shall be required in N.J.A.C. 5:93-9.9.

Procedures for sale and resale of affordable units. The following procedures shall be used for the sale and resale of any affordable unit:

Procedures for initial sales, resale prior to the expiration of controls, and rentals.

Low and moderate income sales units shall not be offered to non-income eligible households at initial sale without COAH approval. Parties that petition the COAH for such approval shall document efforts to sell housing units to income eligible households and shall adhere to the procedures outlined in N.J.A.C. 5:91-12.

Persons wishing to sell affordable units shall notify the authority responsible for assuring affordability of the intent to sell. If no eligible buyer enters a contract of sale for the unit within one hundred eighty (180) days of the notification, the authority shall have the option to purchase the unit for a negotiated price that shall not exceed the maximum price permitted based on the regional increase in the median income as defined by HUD or other recognized standard adopted by the Council. If the authority does not purchase the unit, the seller may apply for permission to offer the unit to a non-income eligible household at the maximum price permitted. The seller shall document efforts to sell the unit to an income eligible household as part of this application. In reviewing the request, the authority shall consider the specific reasons for any delay in selling the housing unit and the hardship to the seller in continuing to offer the affordable unit to an income eligible applicant. The inability to sell a unit for the maximum permitted resale price shall not, in itself, be considered an appropriate reason for allowing a housing unit to be sold to a non-income eligible household. If the request is granted, the seller may offer a low income housing unit to a moderate income household and a moderate income housing unit to a household earning in excess of eighty percent (80%) of median. In no case shall the seller be permitted to receive more than the maximum price permitted. In no case shall a sale pursuant to this section eliminate the resale controls on the unit or permit any subsequent seller to convey the unit except in full compliance with the terms of this subchapter.

Owners of low and moderate income rental units shall not offer rental units to non-income eligible households without prior approval of the Council. Parties that petition for such approval shall document all efforts to rent to income eligible households and demonstrate to the satisfaction of the Council that alternatives, such as reduction in rent, is not feasible. Parties that petition the Council shall adhere to the procedures outlined in N.J.A.C. 5:91-12.

Procedures for sale after expiration of controls on affordability.

The deed restriction governing the deeds of low and moderate income units shall include an option permitting purchase of the affordable housing unit at the maximum allowable restricted sales price at the time of the first non-exempt sale after controls on affordability have been in effect on the unit for the period, specified in N.J.A.C. 5:93-9.2. The option to buy shall be available to the municipality, the Department of Community Affairs, the agency, or a qualified non-profit as defined in this chapter. These options shall be pursuant to N.J.A.C. 5:93-9.5 through 9.7.

All deed restrictions governing low and moderate income units shall require the owner to notify the authority and the Council by certified mail of any intent to sell the unit ninety (90) days prior to entering into an agreement for the first non-exempt sale after controls have been in effect on the housing unit for the period specified in N.J.A.C. 5:93-9.2.

Upon receipt of such notice, the option to buy the unit at the maximum allowable restricted sales price or any mutually agreeable sales price that does not exceed the maximum allowable restricted sales price shall be available for ninety (90) days. The authority shall notify the municipality, the Department of Community Affairs, the agency, and the Council that the unit is for sale. If the municipality exercises this option, it may enter into a contract of sale. If the municipality fails to exercise this option within ninety (90) days, the first of the other entities giving notice to the seller of its intent to purchase during the ninety (90) day period, shall be entitled to purchase the unit. If the option to purchase the unit at the maximum allowable restricted sales price is not exercised by a written offer to purchase, the housing unit within ninety (90) days of receipt of the intent to sell, the owner may proceed to sell the housing unit (pursuant to N.J.A.C. 5:93-9.8). If the owner does not sell the unit within one (1) year of the date of the delivery of notice of intent to sell, the option to buy the unit shall be restored and the owner shall be required to submit a new notice of intent to sell ninety (90) days prior to the future proposed date of sale.

Any option to buy a housing unit at the maximum allowable restricted sales price shall be exercised by certified mail and shall be deemed exercised upon mailing.

An eligible seller of low or moderate income unit which has been controlled for the period established in N.J.A.C. 5:93-9.2, who has provided notice of an intent to sell, may proceed with the sale if no eligible entity as outlined in (a) through (d) above exercises its option to purchase within ninety (90) days. The sales shall be in accordance with the requirements of N.J.A.C. 5:93-9.8.

Affordable housing price increase.

The price of an owner-occupied housing unit and the rents of affordable housing units may increase annually on January 1 of the current year based upon the percentage increase in the regional median income limit for each Housing Region as determined by the Council on Affordable Housing. In no event shall the maximum resale price established by the affordable housing program administrator be lower than the last recorded purchase price.

With the exception of rental units constructed pursuant to low income tax credit regulations, the rent of a low or moderate income housing unit may be increased annually based on the percentage increase in the Housing Consumer Price Index for the United States. This increase shall not exceed nine percent (9%) in any one (1) year. Rents for units constructed pursuant to low income tax credit regulations shall be indexed pursuant to the regulations governing low income tax credits.

Eligible capital improvements. Owners of single family, owner-occupied housing may apply to the agency for permission to increase the maximum selling price of the unit for an eligible capital improvement. Only capital improvements which will render the housing unit suitable for a larger household shall be eligible. In no event shall the maximum selling price exceed the income limits of the larger household. Property owners shall apply to the affordable housing program administrator if such an increase in the maximum sales price is sought.

Effect of foreclosure on resale. A judgment of foreclosure or a deed in lieu of foreclosure by a financial institution regulated by State and/or Federal law or to a lender on the secondary mortgage market shall remove the restrictions required for this Article. The affordable housing program administrator shall be notified of any foreclosure proceedings and the Township may, upon such notification, purchase the affordable housing or pass the option to the Department of Community Affairs, the New Jersey Housing Mortgage Finance Agency, or a designated non-profit entity to purchase the unit at the maximum selling price and maintain it as an affordable unit.

Affirmative Marketing. The developer of an inclusionary development shall submit, for approval by the affordable housing program administrator, a program for the affirmative marketing, screening, and selection of occupants of the low and moderate income units. This plan shall conform to the requirements of N.J.A.C. 5:93-11.

Editor's Note: See also Section 55-355, Third Round Housing Plan Element and Fair Share Plan Affordable Housing Obligations.

§ 55-353 REGULATIONS FOR REHABILITATION PROGRAM. [1]

General Provisions. The Fair Share Plan for the Township of Barnegat, as adopted by the Township Committee, establishes a rehabilitation program to address the Township's Fair Share Rehabilitation Component of twenty-eight (28) units. The purpose of the rehabilitation program is to rehabilitate substandard housing units occupied by low and moderate income households. For the purposes of this program, a "substandard housing unit" is defined as a unit with health and safety code violations that require the repair or replacement of a major system. A major system shall include a roof, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems) and/or load bearing structural system. Upon rehabilitation, housing deficiencies shall be corrected and the house shall be brought up to code standards. This standard for evaluating rehabilitation activity shall be the total property maintenance code, or if none is available the BOCA National Existing Structures Code. The rehabilitation activity shall not include luxury improvements, the purchase of appliances (with the exception of stoves) or improvements that are strictly cosmetic. Rental units may not be excluded from the Township's rehabilitation program.

Administration or Rehabilitation Program.

The Township shall designate an entity to administer the rehabilitation program. The Township may designate an employee to administer the program, or may enter into an agreement for a governmental agency or private consultant to administer all or some of the program.

The Township shall prepare a marketing plan for the rehabilitation program. The marketing plan shall be subject to the court's approval. The rehabilitation program shall be marketed through a combination of some, though not necessarily all, of the following:

Brochures; posters in prominent locations; cable television and radio announcements; notices included in utility bills; notices in municipal tax bills; notices included in municipal publications; and informational meetings with welfare organizations; urban action community groups, personnel departments of local employers, social workers, civic and religious leaders, senior citizen groups and fraternal organizations.

The Township shall maintain files on each rehabilitation program applicant. The files may be used in responding to monitor requests and to protect municipality against charges of irregularity. The files shall include:

The name of each applicant.

If the applicant is not approved, the reason for disapproval.

If the applicant is approved:

Proof of income eligibility (Federal tax return).

The initial inspection by the building inspector.

Bids by contractors.

The final contract to do the work.

Progress reports.

[6]

A copy of the final inspection.

[7]

The lien on the property.

The Township shall develop a rehabilitation manual that complies with COAH's rules and summaries the administration of the rehabilitation program. The manual shall include a copy of the lien to be used on all property and shall describe:

The rehabilitation program's staff and their responsibilities.

Procedures for program marketing.

Eligible repairs and improvements.

The amounts of money available for rehabilitation.

Financing terms.

Income qualification criteria.

Procedures for application intake.

(h)

Procedures for review and approval work (such procedures should require interim inspection of work).

(i)

The length of affordability control.

The Township shall complete annual monitoring reports as required by COAH.

Household Income Limitations.

The incomes of households qualifying for assistance under this rehabilitation program shall not exceed the income limits for low and moderate income households, as defined in N.J.A.C. 5:93-9.1(b), as of January 1 of the current year.

Low and moderate income households. Households with a gross household income equal to fifty percent (50%) or less of the median gross household income for households of the same size within the housing region in which the housing is located, shall be considered low income households. Households with a gross household income in excess of fifty percent (50%) but less than eighty percent (80%) of the median gross household income for households of the same size within the housing region in which the housing is located, shall be considered moderate income households.

The median income determination. The median income by household size shall be established by a regional weighted average of the uncapped Section 8 Income Limits published by the U.S. Department of Housing and Urban Development (HUD) pursuant to N.J.A.C. 5:93-7.4(b).

Controls on Affordability.

Rehabilitated owner occupied single family housing units that are improved to code standard through this rehabilitation program shall be subject to controls on its occupancy by a low and moderate income household, for a period not less than six (6) years. Rehabilitated renter occupied housing units that are improved to code standard shall be subject to controls on its occupancy by a low and moderate income household for a period not less than ten (10) years.

The controls on affordability shall be in the form of a lien filed with the appropriate properties deed. The lien shall be in a form approved by COAH.

Rents and rehabilitated units may increase annually based on the standards in N.J.A.C. 5:93-9.5.

Funding for Rehabilitation Program.

The Township shall be responsible for funding its rehabilitation program in accordance with the requirements of N.J.A.C. 5:93-5.2(h). The Township shall provide two thousand ($2,000.00) dollars per unit of its rehabilitation component towards administration and eight thousand ($8,000.00) dollars per unit for rehabilitation activity to total ten thousand ($10,000.00) dollars per unit of its rehabilitation component.

The Township may rehabilitate substandard units that require less than eight thousand ($8,000.00) dollars of work provided they also rehabilitate substandard units that require more than eight thousand ($8,000.00) dollars of work. The Township's rehabilitation activity shall average at least eight thousand ($8,000.00) dollars per unit for each two (2) year period of substantive certification. The Township shall provide a copay of twelve thousand five hundred ($12,500.00) dollars for the hard cost to rehabilitate any one (1) unit;

The Township shall provide sufficient dollars to fund one-third (1/3) of the municipal rehabilitation component within one (1) year of substantive certification. In each subsequent year of the substantive certification period, the Township shall provide sufficient dollars to fund one-sixth (1/6) of the Township's rehabilitation component.

MUNICIPAL HOUSING LIAISON

Editor's Note: See also Section 55-355 Third Round Housing Plan Element and Fair Housing Plan Affordable Housing Obligations.

§ 55-354 MUNICIPAL HOUSING LIAISON. [1]

[Added 9-2-08 by Ord. No. 2008-31]

Purpose. The purpose of this section is to create the administrative mechanisms needed for the execution of Barnegat Township's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985.

Definitions. As used in this section, the following terms shall have the meanings indicated:

ADMINISTRATIVE AGENT

The entity responsible for administering the affordability controls of some or all units in the affordable housing program for Barnegat Township to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households.

The employee charged by the Governing Body with the responsibility for oversight and administration of the affordable housing programs for Barnegat Township.

Establishment of Municipal Housing Liaison Position and Compensation; Powers and Duties.

Establishment of position of Municipal Housing Liaison. There is hereby established for the position of Municipal Housing Liaison for Barnegat Township.

Subject to the approval of the Council on Affordable Housing (COAH), the Municipal Housing Liaison shall be appointed by the Governing Body and may be a full or part time municipal employee.

The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Barnegat Township, including the following responsibilities which may not be contracted out, exclusive of subsection C(3)(f) which may be contracted out:

Serving as Barnegat Township's primary point of contact for all inquiries from the State, affordable housing providers, administrative agents, and interested households;

Monitoring the status of all restricted units in Barnegat Township's Fair Share Plan;

Compiling, verifying, and submitting annual reports as required by COAH;

Coordinating meetings with affordable housing providers and administrative agents, as applicable;

Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH;

If applicable, serving as the administrative agent for some or all of the restricted units in Barnegat Township as described in subsection C(6) below.

Subject to approval by COAH, Barnegat Township may contract with or authorize a consultant, authority, government or any agency charged by the Governing Body, which entity shall have the responsibility of administering the affordable housing program of Barnegat Township, except for those responsibilities which may not be contracted out pursuant to subsection C(3) above. If Barnegat Township contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.

Compensation. Compensation shall be fixed by the Governing Body at the time of the appointment of the Municipal Housing Liaison.

Administrative powers and duties assigned to the Municipal Housing Liaison if Barnegat Township does not appoint an administrative agent.

Affirmative marketing.

Conducting an outreach process to insure affirmative marketing of affordable housing units in accordance with the Affirmative Marketing Plan of Barnegat Township and the provisions of N.J.A.C. 5:80-26.15; and

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.

Housing certification.

Soliciting, scheduling, conducting and following up on interviews with interested households;

Conducting interviews and obtaining sufficient documentation of gross income and assets upon which to base a determination of income eligibility for a low- or moderate-income unit;

Providing written notification to each applicant as to the determination of eligibility or noneligibility;

Requiring that all certified applicants for restricted units execute a certificate substantially in the form, an 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.;

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; and

[6]

Employing the random selection process as provided in the Affirmative Marketing Plan of Barnegat Township when referring households for certification to affordable units.

Affordability controls.

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;

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;

Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are effectuated and properly filed with the appropriate County's Register of Deeds or County Clerk's office after the termination of the affordability controls for each restricted unit;

Communicating with lenders regarding foreclosures; and

Ensuring the issuance of continuing certificates of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.

Resale and rental.

Instituting and maintaining an effective means of communicating information between owners and the administrative agent regarding the availability of restricted units for resale or rental; and

Instituting and maintaining an effective means of communicating information to low- and moderate-income households regarding the availability of restricted units for resale or re-rental.

Processing request from unit owners.

Reviewing and approving requests from owners of restricted units who wish to take out home equity loans or refinance during the term of their ownership;

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 cost of central air conditioning systems; and

Processing requests and making determinations on requests by owners of restricted units for hardship waivers.

Enforcement.

Securing annually lists 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.

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;

The posting annually in all rental properties, including two-family homes, of a notice as to the maximum permitted rent together with the telephone number of the administrative agent where complaints of excess rent can be made;

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);

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;

[6]

Creating and publishing a written operating manual, as approved by COAH, setting forth procedures for administering such affordability controls; and

[7]

Providing annual reports to COAH as required.

The administrative agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.

AFFORDABLE HOUSING DEVELOPMENT

Editor's Note: See also Section 55-355 Third Round Housing Plan Element and Fair Share Plan Affordable Housing Obligations.

§ 55-355 THIRD ROUND HOUSING PLAN ELEMENT AND FAIR SHARE PLAN AFFORDABLE HOUSING OBLIGATIONS.

§ 55-355.1 Affordable housing obligation.

[Added 5-24-18 by Ord. No. 2018-15]

This Ordinance No. 2018-15 is intended to assure that low- and moderate-income units ("affordable units") are created with controls on affordability and that low- and moderate-income households shall occupy these units. This Ordinance shall apply except where inconsistent with applicable law.

The Township of Barnegat Planning Board has adopted a Housing Element and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1, et seq. The Fair Share Plan has been adopted by the Planning Board and endorsed by the governing body. The Fair Share Plan describes how Barnegat Township shall address its fair share for low- and moderate-income housing as documented in the Housing Element and outlined in the terms of the settlement agreement between the Township and Fair Share Housing Center (FSHC).

This Ordinance implements the Township's Fair Share Plan, addresses the requirements of the Court and the terms of the settlement agreement, and also implements a Township wide requirement that all new multi-family residential development of five (5) or more units shall have a mandatory affordable housing set aside for low- and moderate-income units, subject to certain enumerated conditions.

The Township of Barnegat shall track the status of the implementation of the Housing Element and Fair Share Plan. Any plan evaluation report of the Housing Element and Fair Share Plan shall be available to the public at the Municipal Building located on 900 West Bay Avenue, Barnegat, NJ 08005.

§ 55-355.2 Definitions.

[Added 5-24-18 by Ord. No. 2018-15]

The following terms when used in this Ordinance shall have the meanings given in this section:

ACCESSORY APARTMENT

Means a self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site.

ACT

Means the Fair Housing Act of 1985, P.L. 1985, c. 222

[N.J.S.A. 52:27D-301 et seq.]

ADAPTABLE

Means constructed in compliance with the technical design standards of the Barrier Free Sub-code, N.J.A.C. 5:23-7.

ADMINISTRATIVE AGENT

Means the entity responsible for the administration of affordable units in accordance with this ordinance, N.J.A.C. 5:96, N.J.A.C. 5:97 and N.J.A.C. 5:80-26.1 et seq.

AFFIRMATIVE MARKETING

Means 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

Means the average percentage of median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households.

AFFORDABLE

Means, a sales price or rent within the means of a low- or moderate-income household as defined in N.J.A.C. 5:97-9; 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 DEVELOPMENT

Means a housing development all or a portion of which consists of restricted units.

Means 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 structure that provides for-sale or rental dwelling units for low & moderate income households within a residential use, structure, supportive or special needs dwelling, or residential component of a mixed-use development in accordance with the requirements of the Township of Barnegat's affordable housing ordinances and Housing Element & Fair Share Plan.

AFFORDABLE HOUSING PROGRAM(S)

Means any mechanism in a municipal Fair Share Plan prepared or implemented to address a municipality's fair share obligation.

AFFORDABLE UNIT

Means a housing unit proposed or created pursuant to the Act, credited pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing trust fund.

AGENCY

Means the New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).

AGE-RESTRICTED UNIT

Means a housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population such that: 1) all the residents of the development where the unit is situated are 62 years or older; or 2) at least 80 percent of the units are occupied by one person that is 55 years or older; or 3) the development has been designated by the Secretary of the U.S. Department of Housing and Urban Development as "housing for older persons" as defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.

ASSISTED LIVING RESIDENCE

Means a facility licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor and that offers units containing, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.

CERTIFIED HOUSEHOLD

Means a household that has been certified by an Administrative Agent as a low-income household or moderate-income household.

THE DEPARTMENT

Means the Department of Community Affairs of the State of New Jersey, that was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).

DCA

Means the State of New Jersey Department of Community Affairs.

DEFICIENT HOUSING UNIT

Means 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.

DEVELOPER

Means 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.

DEVELOPMENT

Means 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

Means a development containing both affordable units and market rate units. Inclusionary developments that has five or more units must have a minimum twenty percent set aside of affordable units if it is for sale and a minimum fifteen percent set aside for rentals. This term includes, but is not necessarily limited to: new construction, the conversion of a non-residential structure to residential and the creation of new affordable units through the reconstruction of a vacant residential structure.

LOW-INCOME HOUSEHOLD

Means a household with a total gross annual household income equal to 50 percent or less of the median household income.

LOW-INCOME UNIT

Means a restricted unit that is affordable to a low-income household.

MAJOR SYSTEM

Means 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.

MARKET-RATE UNITS

Means housing not restricted to low- and moderate-income households that may sell or rent at any price.

MEDIAN INCOME

Means the median income by household size for the applicable county, as adopted annually by the Department.

MODERATE-INCOME HOUSEHOLD

Means a household with a total gross annual household income in excess of 50 percent but less than 80 percent of the median household income.

MODERATE-INCOME UNIT

Means a restricted unit that is affordable to a moderate-income household.

MIXED-USE DEVELOPMENT

Means a structure or building that encompasses two or more different land uses, which shall be a retail or commercial component and a residential component, whereby any commercial use must be on the ground floor of said building or structure and the upper levels of the structure shall be the residential component and shall provide low and moderate income units, for-sale or rental, in accordance with the requirements of the Township of Barnegat's affordable housing ordinances and Housing Element & Fair Share Plan.

NON-EXEMPT SALE

Means 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

Means 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

Means the maximum housing value in each housing region affordable to a four-person household with an income at 80 percent of the regional median as defined by the Department's adopted Regional Income Limits published annually by the Department.

REHABILITATION

Means the repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Sub-code, N.J.A.C. 5:23-6.

RENT

Means 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

Means a dwelling unit, whether a rental unit or ownership unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1, as may be amended and supplemented, but does not include a market-rate unit financed under UHORP or MONI.

UHAC

Means the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.

VERY LOW-INCOME HOUSEHOLD

Means a household with a total gross annual household income equal to 30 percent or less of the median household income.

VERY LOW-INCOME UNIT

Means a restricted unit that is affordable to a very low-income household.

WEATHERIZATION

Means building insulation (for attic, exterior walls and crawl space), siding to improve energy efficiency, replacement storm windows, replacement storm doors, replacement windows and replacement doors, and is considered a major system for rehabilitation.

§ 55-355.3 Affordable housing programs

[Added 5-24-18 by Ord. No. 2018-15]

The Township of Barnegat will use the following mechanisms to satisfy its affordable housing obligations:

Rehabilitation Program.

The Township of Barnegat and Fair Share Housing Center have agreed upon a rehabilitation program of eighty-six (86) units. The Township will create and administer both a rental and owner occupied rehabilitation program to satisfy its 86 unit present need obligation. A Spending Plan will be prepared and adopted by the Township that shall outline the schedule and expenditures through 2025 to realize 86 rehabilitated units. The Spending Plan will be funded through the Township's existing Developer Fee Ordinance and payments in lieu where appropriate. The Administrative Agent shall be responsible for submitting the rehabilitation program manuals and documenting each rehabilitation application and documents thoroughly. Any renovation of deficient housing units to be occupied by low- and moderate-income households will comply with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.

All rehabilitated rental or owner-occupied units shall remain affordable to low- and moderate-income households for a period of 10 years (the control period). For owner-occupied units, the control period will be enforced with a lien and for renter occupied units the control period will be enforced with a deed restriction.

The Township of Barnegat shall dedicate an average of $10,000 for each unit to be rehabilitated through this program, reflecting the minimum hard cost of rehabilitation for each unit.

The Township of Barnegat shall designate, subject to the approval of the Court, one Administrative Agent to administer the rehabilitation program in accordance with N.J.A.C. 5:91 and N.J.A.C. 5:93. The Administrative Agent shall provide rehabilitation manual for both rental and owner occupant rehabilitations. These manuals when created will be reviewed by the governing body and adopted by resolution subject to approval of the Court. Both rehabilitation manuals shall be available for public inspection in the Office of the Municipal Clerk and in the Office of the Administrative Agent.

Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9 and Uniform Housing Affordability Controls (UHAC), but shall be administered in accordance with the following:

If a unit is vacant, upon initial rental subsequent to rehabilitation, or if a renter occupied unit is re-rented prior to the end of controls on affordability, the deed restriction shall require the unit to be rented to a low- or moderate-income household at an affordable rent and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.

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.

Rents in rehabilitated units may increase annually based on the standards in N.J.A.C. 5:93-9.

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.

Accessory Apartments Program.

Purpose. The purpose of this section is to establish provisions to regulate an accessory apartment program and to implement the mechanisms set forth in the Township Fair Share Plan.

Accessory apartments in the TC-CV and TC-CPHD Zones shall meet the following conditions:

Accessory apartments are permitted by the Zoning Ordinance in the TC-CV and TC-CPHD Zoning Districts, provided that a minimum of twenty percent (20%) of the units be affordable to very-low-, low- and/or moderate-income households, with a minimum of one (1) affordable unit in all developments containing accessory apartments.

Accessory apartments shall comply with all applicable statutes and regulations of the State of New Jersey in addition to all building codes.

At the time of initial occupancy of the unit and for at least ten years thereafter, the accessory apartment shall be rented only to a household which is either a low- or moderate-income household.

Rents of accessory apartments shall be affordable to low- or moderate-income households as per applicable affordable housing regulations, including the UHAC regulations.

There shall be a recorded deed or declaration of covenants and restrictions applied to the property upon which the accessory apartment is located running with the land and limiting its subsequent rental or sale of the unit and the accessory apartment.

The appropriate utility authority must certify that there is water and sewer infrastructure with sufficient capacity to serve the proposed accessory apartment. Where the proposed location is served by an individual well and/or septic system, the additional capacity necessitated by the new unit must meet the appropriate NJDEP standards.

The Township accessory apartment program shall not restrict the number of bedrooms in any accessory apartment.

(h)

No accessory apartment created as a result of this section or these regulations shall exceed the gross floor area of the existing principal dwelling on the lot.

(i)

Municipal building permit fees shall be waived in all cases involving affordable accessory apartment development under this section. An annual license and inspection fee, if required, shall be paid by unit owners.

The maximum number of creditable accessory apartments shall be equal to no more than 10 or an amount equal to 10 percent of the Barnegat's fair share obligation, whichever is greater (additional units may be approved by the court if the Township demonstrates successful completion of its accessory apartment program.).

The Township shall designate an administrative entity to administer the accessory apartment program that shall have the following responsibilities:

The Administrative Agent shall administer the accessory apartment program, including advertising, income qualifying prospective renters, setting rents and annual rent increases, maintaining a waiting list, distributing the subsidy, securing certificates of occupancy, qualifying properties, handling application forms, filing deed restrictions and monitoring reports and affirmatively marketing the affordable accessory apartment program in accordance with the UHAC.

The administrative entity shall only deny an application for an accessory apartment if the project is not in conformance with applicable affordable housing requirements and/or the provisions of this section/article. All denials shall be in writing with the reasons clearly stated.

In accordance with applicable affordable housing requirements, Barnegat Township shall provide at least $25,000 per unit to subsidize the creation of each low-income accessory apartment or $20,000 per unit to subsidize the creation of each moderate-income accessory apartment. Subsidy may be used to fund actual construction costs and/or to provide compensation for reduced rental rates.

Property owners wishing to apply to create an accessory apartment shall submit to the administrative entity:

A sketch of floor plan(s) showing the location, size and relationship of both the accessory apartment and the primary dwelling within the building or in another structure;

Rough elevations showing the modifications of any exterior building façade to which changes are proposed; and

A site development sketch showing the location of the existing dwelling and other existing buildings; all property lines; proposed addition, if any, along with the minimum building setback lines; the required parking spaces for both dwelling units; and any man-made conditions which might affect construction.

Percentage of Mandatory Set Asides for All Future Residential Developments.

If the Township permits the construction of multi-family or single-family attached residential development that is "approvable" and "developable," as defined at N.J.A.C. 5:93-1.3, at a gross residential density of 6 units to the acre or more, the Township shall require that an appropriate percentage of the residential units be set aside for low and moderate income households. This requirement shall apply beginning with the effective date of this Ordinance to any multi-family or single-family attached residential development, including the residential portion of a mixed-use development, which consists of five (5) or more new residential units, whether permitted by a zoning amendment, a variance granted by the Township's Planning or Zoning Board, or adoption of a Redevelopment Plan or amended Redevelopment Plan in areas in need of redevelopment or rehabilitation. For inclusionary projects in which the low and moderate units are to be offered for sale, the appropriate set-aside percentage is 20 percent; for projects in which the low and moderate income units are to be offered for rent, the appropriate set-aside percentage is 15 percent. This requirement does not create any entitlement for a property owner or applicant for a zoning amendment, variance, or adoption of a Redevelopment Plan or amended Redevelopment Plan in areas in need of redevelopment or rehabilitation, or for approval of any particular proposed project. This requirement does not apply to any sites or specific zones otherwise identified in the Settlement Agreement or Fair Share Plan, for which density and set-aside standards shall be governed by the specific standards set forth therein, though all other provisions of this Ordinance besides Section 55-355.3B shall be applicable to those sites unless otherwise specified.

Furthermore, this section shall not apply to developments containing four (4) or less dwelling units. All subdivision and site plan approvals of qualifying residential developments shall be conditioned upon compliance with the provisions of this section. Where a developer demolishes existing dwelling units and builds new dwelling units on the same site, the provisions of this section shall apply only if the net number of dwelling units is five (5) or more.

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:

Minimum Percentage of Low- and Moderate-Income Units Completed	Maximum Percentage of Market-Rate Units Completed
0	25
10	25 + 1 Unit
50	50
75	75
100	90

Fractional Units. If 20 percent of the total number of units in a development results in a fraction or decimal, the developer shall be required to provide an additional affordable unit on site.

Example: an 8-unit development requiring an affordable housing set-aside of 1.6 units is proposed. The developer is required to provide two on-site affordable units.

Design. In inclusionary developments, to the extent possible, low- and moderate-income units shall be integrated with the market units.

Off-Site Construction. The standards for constructing affordable units off-site, shall be in accordance with the Township's recommendations, provided that at least the same number of affordable units are provided, at least half of the affordable units are available to families, and not more than 25% are age-restricted, and the affordable units provided are otherwise consistent with the terms of the Settlement Agreement.

Utilities. Affordable units shall utilize the same type of heating source as market units within the affordable development.

§ 55-355.4 New construction.

[Added 5-24-18 by Ord. No. 2018-15]

The following general guidelines apply to all newly constructed developments that contain low-and moderate-income housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.

Low/Moderate Split and Bedroom Distribution of Affordable Housing Units:

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.

In each affordable development, at least 50 percent of the restricted units within each bedroom distribution shall be low-income units. If there is only one affordable unit it must be a low income unit.

Thirteen percent (13%) of all affordable units approved or constructed since July 17, 2008 in the Township shall be designated as very-low income households at 30% of the median income, with at least fifty percent (50%) of all very-low income units being available to families. If an inclusionary development proposes less than 10 total units, a payment in lieu of the cost of subsidizing a very low income unit shall be deposited into the Township's Affordable Housing Trust Fund based on the difference in cost between providing a very low income unit and the region's affordability average. Very-low income units shall be considered low-income units for the purposes of evaluating compliance with the required low/moderate income unit splits, bedroom distribution, and phasing requirements of this ordinance.

Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:

The combined number of efficiency and one-bedroom units shall be no greater than 20 percent of the total low- and moderate-income units;

At least 30 percent of all low- and moderate-income units shall be two bedroom units;

At least 20 percent of all low- and moderate-income units shall be three bedroom units; and

The remaining units may be allocated among two and three bedroom units at the discretion of the developer.

Affordable developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development. The standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit.

Accessibility Requirements:

The first floor of all restricted townhouse dwelling units and all restricted units in all other multistory buildings shall be subject to the technical design standards of the Barrier Free Sub-code, N.J.A.C. 5:23-7.

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:

An adaptable toilet and bathing facility on the first floor;

An adaptable kitchen on the first floor;

An interior accessible route of travel on the first floor;

An interior accessible route of travel shall not be required between stories within an individual unit;

An adaptable room that can be used as a bedroom, with a door or the casing for the installation of a door, on the first floor; and

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 Sub-code, N.J.A.C. 5:23-7, or evidence that the Township of Barnegat has collected funds from the developer sufficient to make ten percent (10%) of the adaptable entrances in the development accessible:

[a]

Where a unit has been constructed with an adaptable entrance, upon the request of a disabled person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be installed.

[b]

To this end, the builder of restricted units shall deposit funds within the Township's Affordable Housing Trust Fund sufficient to install accessible entrances in ten percent (10%) of the affordable units that have been constructed with adaptable entrances.

[c]

The funds deposited under paragraph B above shall be used by the Township of Barnegat for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.

[d]

The developer of the restricted units shall submit a design plan and cost estimate for the conversion from adaptable to accessible entrances to the Construction Official of the Township.

[e]

Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meet the requirements of the Barrier Free Sub-code, N.J.A.C. 5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to the Township's Affordable Housing Trust Fund where the funds shall be deposited into the Affordable Housing Trust Fund and appropriately earmarked.

[f]

Full compliance with the foregoing provisions shall not be required where an entity can demonstrate that it is site impracticable to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free Sub-code, N.J.A.C. 5:23-7.

Maximum Rents and Sales Prices.

In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC utilizing the regional income limits established by the New Jersey Department of Community Affairs (DCA) or other agency as required by the Court.

The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than 60 percent of median income, and the average rent for restricted low- and moderate-income units shall be affordable to households earning no more than 52 percent of median income.

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.

At least thirteen percent (13%) of all low- and moderate-income dwelling units shall be affordable to households earning no more than 30 percent of median income.

The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70 percent of median income, and each affordable development must achieve an affordability average of 55 percent for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type.

In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be used:

A studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one and one-half person household;

A two-bedroom unit shall be affordable to a three-person household;

A three-bedroom unit shall be affordable to a four and one-half person household; and

A four-bedroom unit shall be affordable to a six-person household.

In determining the initial rents for compliance with the affordability average requirements for restricted units in assisted living facilities, the following standards shall be used:

In determining the initial rents for compliance with the affordability average requirements for restricted units in assisted living facilities, the following standards shall be used:

A studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one and one-half person household; and

A two-bedroom unit shall be affordable to a two-person household or to two one-person households.

(7)

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 percent of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees do not exceed 28 percent of the eligible monthly income of the appropriate size household as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80- 26.3, as may be amended and supplemented.

(8)

The initial rent for a restricted rental unit shall be calculated so as not to exceed 30 percent of the eligible monthly income of the appropriate household size as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(9)

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.

(10)

The rent of low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the United States. This increase shall not exceed nine percent in any one year. Rents for units constructed pursuant to low- income housing tax credit regulations shall be indexed pursuant to the regulations governing low- income housing tax credits.

(11)

Utilities. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall be consistent with the utility allowance approved by DCA for its Section 8 program.

§ 55-355.5 Affirmative Marketing Requirements.

[Added 5-24-18 by Ord. No. 2018-15]

The Township of Barnegat shall adopt by resolution an Affirmative Marketing Plan, subject to approval of the Court, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.

The Affirmative Marketing Plan is a regional marketing strategy designed to attract buyers and/or renters of all majority and minority groups, regardless of race, creed, color, national origin, ancestry, marital or familial status, gender, affectional or sexual orientation, disability, age or number of children to housing units which are being marketed by a developer, sponsor or owner of affordable housing. The Affirmative Marketing Plan is also intended to target those potentially eligible persons who are least likely to apply for affordable units in that region. It is a continuing program that directs all marketing activities toward Housing Region 4 and covers the period of deed restriction.

The Affirmative Marketing Plan shall provide a regional preference for all households that live and/or work in Housing Region 4.

The Administrative Agent designated by the Township of Barnegat shall assure the affirmative marketing of all affordable units consistent with the Affirmative Marketing Plan for the municipality.

In implementing the Affirmative Marketing Plan, the Administrative Agent shall provide a list of counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law.

The affirmative marketing process for available affordable units shall begin at least four months prior to the expected date of occupancy.

The costs of advertising and affirmative marketing of the affordable units carried out by the Administrative Agent of the Township of Barnegat, including all costs related to correspondence with applicants, preliminary application review, coordination and hosting of the lottery, and related items, shall be the responsibility of the developer, sponsor or owner, unless otherwise determined or agreed to by the Township.

[Amended 11-5-2020 by Ord. No. 2020-15]

§ 55-355.5.1 Affordable housing administration fees.

[Added 11-5-2020 by Ord. No. 2020-15]

The following fees shall be paid by the developer, sponsor, owner, or landlord, as applicable, of an affordable housing unit:

Rerental of an affordable rental unit: A fee of $600 shall be paid by the landlord within 10 calendar days of the signing of a lease for rerental of affordable housing unit.

Resale of an owner-occupied affordable housing unit: A fee of $1,250 shall be paid at the time of the closing for resale of an affordable housing unit.

Refinance of an owner-occupied affordable housing unit: A fee of $600 shall be paid at the time of the loan closing for refinancing of an affordable housing unit.

§ 55-355.6 Occupancy standards.

[Added 5-24-18 by Ord. No. 2018-15]

In referring certified households to specific restricted units, to the extent feasible, and without causing an undue delay in occupying the unit, the Administrative Agent shall strive to:

Provide an occupant for each bedroom;

Provide children of different sex with separate bedrooms; and

Prevent more than two persons from occupying a single bedroom.

Additional provisions related to occupancy standards (if any) shall be provided in the municipal Operating Manual.

§ 55-355.7 Control periods for restricted ownership units and enforcement mechanisms.

[Added 5-24-18 by Ord. No. 2018-15]

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 Ordinance until the Township of Barnegat elects to release the unit from such requirements however, and prior to such an election, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.

The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.

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 non-restricted, fair market value of the unit based on either an appraisal or the unit's equalized assessed value.

At the time of the first sale of the unit, the purchaser shall execute and deliver to the Administrative Agent a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first non-exempt sale after the unit's release from the requirements of this Ordinance, an amount equal to the difference between the unit's non-restricted 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.

The affordability controls set forth in this Ordinance shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.

A restricted ownership unit shall be required to obtain a Continuing Certificate of Occupancy or a certified statement from the Construction Official stating that the unit meets all code standards upon the first transfer of title that follows the expiration of the applicable minimum control period provided under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.

§ 55-355.8 Price restrictions for restricted ownership units, homeowner association fees and resale prices.

[Added 5-24-18 by Ord. No. 2018-15]

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:

The initial purchase price for a restricted ownership unit shall be approved by the Administrative Agent.

The Administrative Agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.

The method used to determine the condominium association fee amounts and special assessments shall be indistinguishable between the low- and moderate-income unit owners and the market unit owners.

The owners of restricted ownership units may apply to the Administrative Agent to increase the maximum sales price for the unit on the basis of capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom.

§ 55-355.9 Buyer income eligibility.

[Added 5-24-18 by Ord. No. 2018-15]

Buyer income eligibility for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such that low-income ownership units shall be reserved for households with a gross household income less than or equal to 50 percent of median income and moderate-income ownership units shall be reserved for households with a gross household income less than 80 percent of median income.

The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the household is a low-income household or a moderate-income household, as applicable to the unit, and the estimated monthly housing cost for the particular unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees, as applicable) does not exceed 33 percent of the household's certified monthly income.

§ 55-355.10 Limitations on indebtedness secured by ownership unit; subordination.

[Added 5-24-18 by Ord. No. 2018-15]

Prior to incurring any indebtedness to be secured by a restricted ownership unit, the administrative agent shall determine in writing that the proposed indebtedness complies with the provisions of this section.

With the exception of original purchase money mortgages, during a control period neither an owner nor a lender shall at any time cause or permit the total indebtedness secured by a restricted ownership unit to exceed 95 percent of the maximum allowable resale price of that unit, as such price is determined by the administrative agent in accordance with N.J.A.C.5:80-26.6(b).

§ 55-355.11 Control periods for restricted rental units.

[Added 5-24-18 by Ord. No. 2018-15]

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 Ordinance until the Township of Barnegat elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior to such an election, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.

Deeds of all real property that include restricted rental units shall contain deed restriction language. The deed restriction shall have priority over all mortgages on the property, and the deed restriction shall be filed by the developer or seller with the records office of the County of Ocean. A copy of the filed document shall be provided to the Administrative Agent within 30 days of the receipt of a Certificate of Occupancy.

A restricted rental unit shall remain subject to the affordability controls of this Ordinance, despite the occurrence of any of the following events:

Sublease or assignment of the lease of the unit;

Sale or other voluntary transfer of the ownership of the unit; or

The entry and enforcement of any judgment of foreclosure.

§ 55-355.12 Price restrictions for rental units; leases.

[Added 5-24-18 by Ord. No. 2018-15]

A written lease shall be required for all restricted rental units, except for units in an assisted living residence, and tenants shall be responsible for security deposits and the full amount of the rent as stated on the lease. A copy of the current lease for each restricted rental unit shall be provided to the Administrative Agent.

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.

Application fees (including the charge for any credit check) shall not exceed five percent 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 Ordinance.

§ 55-355.13 Tenant income eligibility.

[Added 5-24-18 by Ord. No. 2018-15]

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:

Very low-income rental units shall be reserved for households with a gross household income less than or equal to 30 percent of median income.

Low-income rental units shall be reserved for households with a gross household income less than or equal to 50 percent of median income.

Moderate-income rental units shall be reserved for households with a gross household income less than 80 percent of median income.

The Administrative Agent shall certify a household as eligible for a restricted rental unit when the household is a very low-income, low-income household or a moderate-income household, as applicable to the unit, and the rent proposed for the unit does not exceed 35 percent (40 percent 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:

The household currently pays more than 35 percent (40 percent for households eligible for age-restricted units) of its gross household income for rent, and the proposed rent will reduce its housing costs;

The household has consistently paid more than 35 percent (40 percent for households eligible for age-restricted units) of eligible monthly income for rent in the past and has proven its ability to pay;

The household is currently in substandard or overcrowded living conditions;

The household documents the existence of assets with which the household proposes to supplement the rent payments; or

The household documents proposed third-party assistance from an outside source such as a family member in a form acceptable to the Administrative Agent and the owner of the unit.

The applicant shall file documentation sufficient to establish the existence of the circumstances in paragraphs B. (1) through (5) above with the Administrative Agent, who shall counsel the household on budgeting.

§ 55-355.14 Administration.

[Added 5-24-18 by Ord. No. 2018-15]

The position of Municipal Housing Liaison (MHL) for the Township of Barnegat is established by this Ordinance. The Township shall make the actual appointment of the MHL by means of a resolution.

The MHL must be either a full-time or part-time employee of Barnegat.

The person appointed as the MHL must be reported to the Court and thereafter posted on the Township's website.

The MHL must meet all the requirements for qualifications, including initial and periodic training.

The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township of Barnegat, including the following responsibilities which may not be contracted out to the Administrative Agent:

Serving as the municipality's primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents and interested households;

The implementation of the Affirmative Marketing Plan and affordability controls.

When applicable, supervising any contracting Administrative Agent.

Monitoring the status of all restricted units in the Township's Fair Share Plan;

Compiling, verifying and submitting annual reports as required;

Coordinating meetings with affordable housing providers and Administrative Agents, as applicable; and

Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Affordable Housing Professionals of New Jersey (AHPNJ).

The Township of Barnegat shall designate by resolution of the Township Committee, subject to the approval of the Court, one or more Administrative Agents to administer newly constructed affordable units in accordance with N.J.A.C. 5:91, 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 governing body. The Operating Manuals shall be available for public inspection in the Office of the Municipal Clerk and in the office(s) of the Administrative Agent(s).

The Administrative Agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC, including those set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:

Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by the Affordable Housing Professionals of New Jersey (AHPNJ);

Affirmative Marketing;

Household Certification;

Affordability Controls;

Records retention;

Resale and re-rental;

(7)

Processing requests from unit owners; and

(8)

Enforcement, though the ultimate responsibility for retaining controls on the units rests with the municipality.

(9)

The Administrative Agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder.

The Administrative Agent shall also implement the rehabilitation program, affordability assistance program, and any other affordable housing programs required within the Spending Plan and adopted Housing Plan Element and Fair Share Plan.

§ 55-355.15 Enforcement of affordable housing regulations.

[Added 5-24-18 by Ord. No. 2018-15]

Upon the occurrence of a breach of any of the regulations governing the affordable unit by an Owner, Developer or Tenant the municipality shall have all remedies provided at law or equity, including but not limited to foreclosure, tenant eviction, municipal fines, a requirement for household recertification, acceleration of all sums due under a mortgage, recoupment of any funds from a sale in the violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.

After providing written notice of a violation to an Owner, Developer or Tenant of a low- or moderate-income unit and advising the Owner, Developer or Tenant of the penalties for such violations, the municipality may take the following action against the Owner, Developer or Tenant for any violation that remains uncured for a period of 60 days after service of the written notice:

The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation, or violations, of the regulations governing the affordable housing unit. If the Owner, Developer or Tenant is found by the court to have violated any provision of the regulations governing affordable housing units the Owner, Developer or Tenant shall be subject to one or more of the following penalties, at the discretion of the court:

A fine of not more than $10,000.00 or imprisonment for a period not to exceed 90 days, or both. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense;

In the case of an Owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Township of Barnegat Affordable Housing Trust Fund of the gross amount of rent illegally collected;

In the case of an Owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment of an innocent tenant's reasonable relocation costs, as determined by the court.