[Ord. #2001-02 § I]
This Chapter may be known as the "Frelinghuysen Township Affordable
Housing Ordinance of 1999."
[Ord. #2001-02 § II]
The purpose of this Chapter is to meet the goals of N.J.S.A.
52:27D-301 et seq. "Fair Housing Act," and the So. Burlington County,
N.A.A.C.P. v Mount Laurel Township, 92 N.J. 158,238 ("Mount Laurel
II") in which the Court held in part:
"…the constitutional obligation imposed upon each municipality
should not translate into unnecessary growth, bad planning and suburban
sprawl."
a.
To meet the need as determined by the Council on Affordable Housing
(COAH);
b.
To promote continuous provision of affordable housing by keeping
pace with the growth of the municipality pursuant to this ordinance;
c.
To fulfill the objectives of the Fair Housing Act and the State Development
and Redevelopment Plan (SDRP), pursuant to N.J.S.A. 52:27D-303, et
seq.
d.
To manage growth and development, related traffic impact and the
associated economic impact of municipal services, schools and property
taxes in a manner that meets affordable housing goals without compromising
the environment, open space, character and historic values of the
municipality;
e.
To ensure that State and municipal investment in farmland preservation
is protected.
f.
To discourage and prevent pollution of air, water, and land and other
degradation of natural resources.
g.
To distribute affordable housing units throughout the residential
zones impartially and justly.
h.
To protect the taxpayers of the Township from expending public funds
in defense of a "builders remedy suit" which wastes tax dollars and
chokes the Court system.
[Ord. #2001-02 § IV]
For the purpose of this Chapter, the terms used are as defined
in MLUL and the Land Use Code of the municipality. In addition, the
following definitions shall apply:
Shall mean Council on Affordable Housing.
Shall mean any person involved in the construction of new
housing stock.
Shall mean the construction of any building or structure,
and all site preparation therefor, for the purpose of residential
use.
[Ord. #2006-05 § 20-4]
The purpose of this section is to create the administrative
mechanisms needed for the execution of Frelinghuysen Township's
responsibility to assist in the provisions of affordable housing pursuant
to the Fair Housing Act of 1985.
[Ord. #2006-05 § 20.5]
As used in this section, the following terms shall have the
meanings indicated:
Shall mean the entity responsible for administrating the
affordability controls of some or all units in the affordable housing
program for Frelinghuysen 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.
Shall mean the employee charged by the governing body with
the responsibility for oversight and administration of the affordable
housing program for Frelinghuysen Township.
[Ord. #2006-05 § 20-6]
a.
Establishment of Position of Municipal Housing Liaison. There is
hereby established the position of Municipal Housing Liaison for Frelinghuysen
Township.
b.
Subject to the approval of the Council on Affordable Housing (COAH),
the Municipal Housing Liaison shall be appointed by the governing
body at its annual reorganization meeting for a term to expire on
December 31st of the year of appointment. The Municipal Housing Liaison
shall serve until his/her successor has been appointed and qualified.
The Municipal Housing Liaison may be a full or part-time municipal
employee.
c.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Frelinghuysen
Township, including the following responsibilities which may not be
contracted out:
1.
Serving as Frelinghuysen Township's primary point of contract
for all inquiries from the State, affordable housing providers, Administrative
Agents, and interested households;
2.
Monitoring the status of all restricted units in Frelinghuysen Township's
Fair Share Plan;
3.
Compiling, verifying, and submitting annual reporting as required
by COAH;
4.
Coordinating meetings with affordable housing providers and Administrative
Agents, as applicable;
5.
Attending continuing education programs as may be required by COAH;
6.
If applicable, serving as the Administrative Agent for some or all
of the restricted units in Frelinghuysen Township as described in
paragraph f below.
d.
Subject to approval by COAH, Frelinghuysen 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 Frelinghuysen Township.
If Frelinghuysen 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.
e.
Compensation. Compensation may be fixed by the governing body at
the time of the appointment of the Municipal Housing Liaison.
f.
The Municipal Housing Liaison shall have the following powers:
1.
Soliciting, scheduling, conducting and following up on interviews
with interested households;
2.
Providing written notification to each applicant as to the determination
of eligibility or noneligibility.
3.
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.;
4.
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;
5.
Employing the random selection process as provided in the Affirmative
Marketing Plan of Frelinghuysen Township when referring households;
6.
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;
7.
Instituting and maintaining an effective means of communicating information
to low- and moderate-income households regarding the availability
of restricted units for resale or rerental;
8.
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;
9.
Reviewing and approving requests to increase sale 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;
10.
Processing requests and making determination on requests by owners
of restricted units for hardship waivers;
11.
Ensure that all restricted units are identified as affordable within
the Tax Assessor's office and any municipal utility authority
(MUA) and upon notification to the Administrative Agent of change
in billing address, payment delinquency of two (2) consecutive billing
cycles, transfer of title, or institution of a writ of foreclosure
on all affordable units, notifying all owners that they must either
move back to their unit or sell it;
12.
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;
13.
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;
14.
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;
15.
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;
16.
Establishing a rent-to-equity program;
17.
Creating and publishing a written operating manual, as approved by
COAH, setting forth procedures for administering such affordability
controls; and
18.
Providing annual reports to COAH as required.
19.
The Administrative Agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
[1]
Editor's Note: Prior ordinance history includes portions
of Ordinance No. 2001-02.
[Ord. #2009-13 § 1]
a.
This section is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This section shall apply except where inconsistent with
applicable law.
b.
The Township of Frelinghuysen Planning Board has adopted a Housing
Element and Fair Share Plan pursuant to the Municipal Land Use Law
at N.J.S.A. 40:55D-1, et seq. The Fair Share Plan has been endorsed
by the governing body. The Fair Share Plan describes the ways Township
of Frelinghuysen shall address its fair share for low- and moderate-income
housing as determined by the Council on Affordable Housing (COAH)
and documented in the Housing Element.
c.
This section implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:97, as may be amended and
supplemented.
d.
The Township of Frelinghuysen shall file monitoring reports with
COAH in accordance with N.J.A.C. 5:96, tracking the status of the
implementation of the Housing Element and Fair Share Plan. Any plan
evaluation report of the Housing Element and Fair Share Plan and monitoring
prepared by COAH in accordance with N.J.A.C. 5:96 shall be available
to the public at the Township of Frelinghuysen Municipal Building,
Municipal Clerk's Office, PO Box 417, 210 Route 1661, Johnsonburg,
New Jersey, or from COAH at 101 South Broad Street, Trenton, New Jersey
and on COAH's website, www.nj.gov/dca/affiliates/coah.
[Ord. #2009-13 § 2]
The following terms when used in this section shall have the
meanings given in this section:
Shall mean 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.
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222
(N.J.S.A. 52:27D-301 et seq.).
Shall mean constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
Shall mean the entity responsible for the administration
of affordable units in accordance with this section, N.J.A.C. 5:96,
N.J.A.C. 5:97 and N.J.A.C. 5:80-26.1 et seq.
Shall mean a regional marketing strategy designed to attract
buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
Shall mean the average percentage of median income at which
restricted units in an affordable housing development are affordable
to low- and moderate-income households.
Shall mean, 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.
Shall mean a housing development all or a portion of which
consists of restricted units.
Shall mean 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 one hundred (100%)
percent affordable development.
Shall mean any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
Shall mean 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.
Shall mean the New Jersey Housing and Mortgage Finance Agency
established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
Shall mean 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 sixty-two (62) years or older; or 2)
at least eighty (80%) percent of the units are occupied by one (1)
person that is fifty-five (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.
Shall mean 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 (4) or more adult persons unrelated
to the proprietor and that offers units containing, at a minimum,
one (1) unfurnished room, a private bathroom, a kitchenette and a
lockable door on the unit entrance.
Shall mean a household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
Shall mean the Council on Affordable Housing, which is in,
but not of, the Department of Community Affairs of the State of New
Jersey, that was established under the New Jersey Fair Housing Act
(N.J.S.A. 52:27D-301 et seq.).
Shall mean the State of New Jersey Department of Community
Affairs.
Shall mean 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.
Shall mean 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.
Shall mean the division of a parcel of land into two (2)
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.
Shall mean a development containing both affordable units
and market rate units. This term includes, but is not necessarily
limited to: new construction, the conversion of a nonresidential structure
to residential and the creation of new affordable units through the
reconstruction of a vacant residential structure.
Shall mean a household with a total gross annual household
income equal to fifty (50%) percent or less of the median household
income.
Shall mean a restricted unit that is affordable to a low-income
household.
Shall mean 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.
Shall mean housing not restricted to low- and moderate-income
households that may sell or rent at any price.
Shall mean the median income by household size for the applicable
county, as adopted annually by COAH.
Shall mean a household with a total gross annual household
income in excess of fifty (50%) percent but less than eighty (80%)
percent of the median household income.
Shall mean a restricted unit that is affordable to a moderate-income
household.
Shall mean 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.
Shall mean 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).
Shall mean the maximum housing value in each housing region
affordable to a four-person household with an income at eighty (80%)
percent of the regional median as defined by COAH's adopted Regional
Income Limits published annually by COAH.
Shall mean the repair, renovation, alteration or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
Shall mean 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.
Shall mean 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.
Shall mean the Uniform Housing Affordability Controls set
forth in N.J.A.C. 5:80-26.1 et seq.
Shall mean a household with a total gross annual household
income equal to thirty (30%) percent or less of the median household
income.
Shall mean a restricted unit that is affordable to a very
low-income household.
Shall mean 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.
[Ord. #2009-13 § 3]
The Township of Frelinghuysen has determined that it will use
the following mechanisms to satisfy its affordable housing obligations:
a.
Rehabilitation Program.
1.
Township of Frelinghuysen's rehabilitation program shall be
designed to renovate deficient housing units occupied by 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.
2.
Both owner occupied and renter occupied units shall be eligible for
rehabilitation funds.
3.
All rehabilitated units shall remain affordable to low- and moderate-income
households for a period of ten (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.
4.
The Township of Frelinghuysen shall dedicate a minimum of ten thousand
($10,000) dollars for each unit to be rehabilitated through this program,
reflecting the minimum hard cost of rehabilitation for each unit.
5.
The Township of Frelinghuysen shall adopt a resolution committing
to fund any shortfall in the rehabilitation programs for the Township
of Frelinghuysen.
6.
The Township of Frelinghuysen shall designate, subject to the approval
of COAH, one (1) or more Administrative Agents to administer the rehabilitation
program in accordance with N.J.A.C. 5:96 and N.J.A.C. 5:97. The Administrative
Agent(s) shall provide a rehabilitation manual for the owner occupancy
rehabilitation program and a rehabilitation manual for the rental
occupancy rehabilitation program to be adopted by resolution of the
governing body and subject to approval of COAH. Both rehabilitation
manuals shall be available for public inspection in the Office of
the Municipal Clerk and in the office(s) of the Administrative Agent(s).
7.
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(a)
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. 5:97-9 and UHAC.
(b)
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. 5:97-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner occupied units shall be, exempt from the regional asset limit.
b.
Supportive/Special Needs.
1.
The following provisions shall apply to group homes, residential
health care facilities and supportive shared living housing:
(a)
The unit of the credit shall be the bedroom.
(b)
Housing that is age-restricted shall be included with the maximum
number of units that may be age-restricted.
(c)
Occupancy shall not be restricted to youth under eighteen (18)
years of age.
(d)
All sites shall meet the same suitability criteria set forth
in N.J.A.C. 5:97-3.13.
2.
The bedrooms and/or units pursuant to (1) above shall comply with
N.J.A.C. 5:97-9 and UHAC with the following exceptions:
(a)
Affirmative marketing plan; however, group homes residential
health care facilities and supportive shared living housing shall
be affirmatively marketed to individuals with special needs in accordance
with a plan approved by the Council's Executive Director;
(b)
Affordability average and bedroom distribution; and
(c)
With the exception of units established with capital funding
through a twenty (20) year operating contract with the Department
of Human Services, Division of Developmental Disabilities, group homes,
residential health care facilities, and supportive shared living housing
shall have the appropriate controls on affordability.
c.
Municipally-Sponsored/One Hundred (100%) Percent Affordable Developments.
1.
Municipally-sponsored and one hundred (100%) percent affordable developments
include, but are not limited to:
2.
The following provisions shall apply to municipally-sponsored and
one hundred (100%) percent affordable developments:
(a)
All sites shall meet the site suitability criteria set forth
in N.J.A.C. 5:97-3.13.
(b)
The municipality or developer/sponsor shall have control or
the ability to control the site(s).
(c)
The construction schedule shall provide for the construction
to begin within two (2) years of substantive certification or in accordance
with the municipality's implementation schedule.
(d)
The first floor of all townhouse dwelling units and of all other
multi-story dwelling units must comply with N.J.A.C. 5:97-3.14.
[Ord. #2009-13 § 4]
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.
a.
Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units.
1.
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low income unit.
2.
In each affordable development, at least fifty (50%) percent of the
restricted units within each bedroom distribution shall be low-income
units.
3.
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than twenty (20%) percent of the total low- and moderate-income
units;
(b)
At least thirty (30%) percent of all low- and moderate-income
units shall be two (2) bedroom units;
(c)
At least twenty (20%) percent of all low- and moderate-income
units shall be three (3) bedroom units; and
(d)
The remaining units may be allocated among two- and three- bedroom
units at the discretion of the developer.
4.
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.
b.
Accessibility Requirements:
1.
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 Subcode, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14.
2.
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 (1) other dwelling unit shall have the
following features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
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
(f)
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 of Frelinghuysen
has collected funds from the developer sufficient to make ten (10%)
percent of the adaptable entrances in the development accessible:
(1)
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)
To this end, the builder of restricted units shall deposit funds
within the Township of Frelinghuysen's affordable housing trust
fund sufficient to install accessible entrances in ten (10%) percent
of the affordable units that have been constructed with adaptable
entrances.
(3)
The funds deposited under paragraph (2) above shall be used
by the Township of Frelinghuysen for the sole purpose of making the
adaptable entrance of any affordable unit accessible when requested
to do so by a person with a disability who occupies or intends to
occupy the unit and requires an accessible entrance.
(4)
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the Township of Frelinghuysen.
(5)
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7 and
N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion
is reasonable, payment shall be made to the Township of Frelinghuysen's
affordable housing trust fund in care of the Municipal Treasurer who
shall ensure that the funds are deposited into the affordable housing
trust fund and appropriately earmarked.
(6)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C.
5:97-3.14.
c.
Maximum Rents and Sales Prices.
1.
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC and in COAH, utilizing the regional income limits established
by COAH.
2.
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
sixty (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 fifty-two (52%) percent of median income.
3.
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units.
(a)
At least ten (10%) percent of all low- and moderate-income rental
units shall be affordable to households earning no more than thirty-five
(35%) percent of median income.
4.
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than seventy (70%) percent of median income, and each affordable
development must achieve an affordability average of fifty-five (55%)
percent for restricted ownership units; in achieving this affordability
average, moderate-income ownership units must be available for at
least three (3) different prices for each bedroom type, and low-income
ownership units must be available for at least two (2) different prices
for each bedroom type.
5.
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)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one and one-half
person household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four and one-half
person household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
6.
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:
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 ninety-five
(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 twenty-eight
(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 thirty (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.
5:84-26.3, 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 (9%) percent
in any one (1) 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.
|
Note: The following general guidelines apply to all developments
that contain low- and moderate-income housing units, including any
currently unanticipated future developments that will provide low-
and moderate-income housing units.
|
[Ord. #2009-13 § 5]
a.
Township of Frelinghuysen shall adopt by resolution an Affirmative
Marketing Plan, subject to approval of COAH, compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
b.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is also intended to target those potentially eligible
persons who are least likely to apply for affordable units in that
region. It is a continuing program that directs all marketing activities
toward COAH Housing Region 2 and covers the period of deed restriction.
c.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 2
comprised of Essex, Morris, Union and Warren Counties.
d.
The Administrative Agent designated by the Township of Frelinghuysen
shall assure the affirmative marketing of all affordable units consistent
with the Affirmative Marketing Plan for the municipality.
e.
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.
f.
The affirmative marketing process for available affordable units
shall begin at least four (4) months prior to the expected dare of
occupancy.
g.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by Township of Frelinghuysen.
[Ord. #2009-13 § 6]
a.
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:
b.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
[Ord. #2009-13 § 7]
a.
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 section until the Township of Frelinghuysen 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 thirty (30) years.
b.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
c.
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.
d.
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 section, 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.
The affordability controls set forth in this section shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
f.
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.
[Ord. #2009-13 § 8]
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
a.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
b.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
c.
The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners.
d.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
[Ord. #2009-13 § 9]
a.
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 fifty (50%) percent
of median income and moderate-income ownership units shall be reserved
for households with a gross household income less than eighty (80%)
percent of median income.
b.
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 thirty-three (33%) percent of the household's certified
monthly income.
[Ord. #2009-13 § 10]
a.
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.
b.
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 ninety-five (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).
[Ord. #2009-13 § 11]
a.
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 section until the Township of Frelinghuysen 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 thirty (30) years.
b.
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 Warren. A copy of the filed document shall be provided
to the Administrative Agent within thirty (30) days of the receipt
of a Certificate of Occupancy.
c.
A restricted rental unit shall remain subject to the affordability
controls of this section, despite the occurrence of any of the following
events:
[Ord. #2009-13, § 12]
a.
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.
b.
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.
Application fees (including the charge for any credit check) shall
not exceed five (5%) 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 section.
[Ord. #2009-13 § 13]
a.
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.
Very low-income rental units shall be reserved for households with
a gross household income less than equal to thirty (30%) percent of
median income.
2.
Low-income rental units shall be reserved for households with a gross
household income less than or equal to fifty (50%) percent of median
income.
3.
Moderate-income rental units shall be reserved for households with
a gross household income less than eighty (80%) percent of median
income.
b.
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 thirty-five
(35%) percent (forty (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 (1) or more of the
following circumstances exists:
1.
The household currently pays more than thirty-five (35%) percent
(forty (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;
2.
The household has consistently paid more than thirty-five (35%) percent
(forty (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;
3.
The household is currently in substandard or overcrowded living conditions;
4.
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
5.
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.
c.
The applicant shall file documentation sufficient to establish the
existence of the circumstances in b1 through 5 above with the Administrative
Agent, who shall counsel the household on budgeting.
[Ord. #2009-13, § 14]
a.
The position of Municipal Housing Liaison (MHL) for Township of Frelinghuysen
is established by this subsection. The Township Committee shall make
the actual appointment of the MHL by means of a resolution.
1.
The MHL must be either a full-time or part-time employee of Township
of Frelinghuysen.
2.
The person appointed as the MHL must be reported to COAH for approval.
3.
The MHL must meet all COAH requirements for qualifications, including
initial and periodic training.
4.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Frelinghuysen, including the following responsibilities which may
not be contracted out to the Administrative Agent:
(a)
Serving as the municipality's primary point of contact
for all inquiries from the State, affordable housing providers, Administrative
Agents and interested households;
(b)
The implementation of the Affirmative Marketing Plan and affordability
controls;
(c)
When applicable, supervising any contracting Administrative
Agent;
(d)
Monitoring the status of all restricted units in the Township
of Frelinghuysen's Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required
by COAH;
(f)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable; and
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH.
b.
The Township of Frelinghuysen shall designate by resolution of the
Township Committee, subject to the approval of COAH, one (1) or more
Administrative Agents to administer newly constructed affordable units
in accordance with N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC.
c.
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body and subject to approval
of COAH. The Operating Manuals shall be available for public inspection
in the Office of the Municipal Clerk and in the office(s) of the Administrative
Agent(s).
d.
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the Operating Manual, including those
set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:
1.
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by COAH;
2.
Affirmative Marketing;
3.
Household Certification;
4.
Affordability Controls;
5.
Records retention;
6.
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.
[Ord. #2009-13, § 15]
a.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
b.
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 sixty (60)
days after service of the written notice:
1.
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 (1) or more of the following penalties, at
the discretion of the court:
(a)
A fine of not more than one thousand ($1,000.00) dollars or
imprisonment for a period not to exceed ninety (90) days, or both.
Each and every day that the violation continues or exists shall be
considered a separate and specific violation of these provisions and
not as a continuing offense.
(b)
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 Frelinghuysen Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation
costs, as determined by the court.
2.
The municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the First Purchase Money Mortgage and shall
constitute a lien against the low- and moderate-income unit.
c.
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any First Purchase Money Mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
d.
The proceeds of the Sheriff's sale shall first be applied to
satisfy the First Purchase Money Mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for aid to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two (2) years or until such
earlier time as the owner shall make a claim with the municipality
for such. Failure of the owner to claim such balance within the two-year
period shall automatically result in a forfeiture of such balance
to the municipality. Any interest accrued or earned on such balance
while being held in escrow shall belong to and shall be paid to the
municipality, whether such balance shall be paid to the owner or forfeited
to the municipality.
e.
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriffs sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
f.
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the First Purchase Money Mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the First Purchase Money Mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the First Purchase Money Mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
g.
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
h.
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.
[Ord. #2009-13, § 16]
Appeals from all decisions of an Administrative Agent designated
pursuant to this section shall be filed in writing with the Executive
Director of COAH.
[Ord. #2009-15]
a.
Purpose. The Affirmative Marketing Plan is a regional marketing strategy
designed to attract buyers and/or renters of all majority and minority
groups, regardless of sex, age or number of children, to housing units
which are being marketed by a developer/sponsor, municipality and/or
designated administrative agency of affordable housing. The Township's
Plan will address the requirements of N.J.A.C. 5:80-26.15. In addition,
the Plan prohibits discrimination in the sale, rental, financing or
other services related to housing on the basis of race, color, sex,
religion, disability, age, familial status/size, sexual orientation
or national origin.
b.
Affirmative Marketing Plan. The Township of Frelinghuysen is in the
housing region consisting of Essex, Morris, Union and Warren Counties.
The affirmative marketing program is a continuing program and will
meet the following requirements:
c.
The primary marketing will take the form of at least one press release
sent to the above publications and a paid display advertisement in
each of the above newspapers. Additional advertising and publicity
will be on an "as needed" basis.
1.
The advertisement will include a description of the:
2.
All newspaper articles, announcements and requests for applications
for low- and moderate-income housing will appear in the following
neighborhood-oriented mediums on an "an needed" basis. In addition,
local religious publications and organizational newsletters within
the region will also be requested to assist in the effort.
d.
The following is the location of where applications, brochures(s),
sign(s) and/or poster(s) used as part of the affirmative marketing
program including specific employment centers within the region Essex,
Morris, Union and Warren Counties will be displayed:
e.
The following is a listing community organizations in Essex, Morris,
Union and Warren Counties, that will aid in the affirmative marketing
program on an "as needed" basis, with particular emphasis on contracts
that will reach out to groups that are least likely to apply for housing
within the region:
f.
Selection Process. The Township, through an agent to be appointed
("the Township's housing agent"), shall be responsible for implementing
and conducting the selection process that will be used to select occupant
of the low- and moderate-income housing. Following is a description
of the random selection method that will be used to select occupants
of low- and moderate-income housing. The Township is ultimately responsible
for administering the Affirmative Marketing Program. The Township's
housing agent, in administering the Affirmative Marketing Program,
shall have the responsibility to:
1.
Income qualify low- and moderate-income households;
2.
Place income eligible households in low- and moderate-income units
upon initial occupancy;
3.
Provide for the initial occupancy of low- and moderate-income units
with income qualified households;
4.
Continue to qualify households for reoccupancy of units as they become
vacant during the period of affordability controls;
5.
Assist with advertising and outreach to low- and moderate-income
households; and
6.
Enforce the terms of the deed restriction and mortgage loan as per
N.J.A.C. 5:80-26.1 et seq.
g.
The Township's housing agent will also coordinate and provide
linkage to low- and moderate-income applicants to receive counseling
on subjects such as budgeting, credit issues, mortgage qualification,
responsibilities of homeownership, rental lease requirements, and
landlord/tenant law. The Township's housing agent will develop
the waiting list and select applicants for the qualification process
on a first come first served basis. The Superintendent of Planning
within the Township is the designated housing officer to act as liaison
to the responsible developer(s) and the Township's housing agent.
h.
Households who live or work in the COAH-established housing region
may be given preference for sales and rental units constructed within
that housing region.
i.
Applicants living outside the housing region will have an equal opportunity
for units after regional applicants have been initially serviced.
The Township of Frelinghuysen intends to comply with all UHAC regulations,
N.J.A.C. 5:80-26.1 et seq.; and
j.
All developers of low- and moderate-income housing units will be
required to assist the Township's housing agent in the marketing
of the affordable units in their respective developments.
k.
Commencement of Marketing Plan. The marketing program will commence
at least one hundred twenty (120) days before the issuance of either
temporary or permanent Certificates of Occupancy. The marketing program
will continue until all low- and moderate-income housing units are
initially occupied and for as long as affordable units are deed restricted
and occupancy or reoccupancy of units continues to be necessary; and
reporting requirements. The responsible developer(s) will assist the
Township's housing agent in complying with monitoring and reporting
requirements as per N.J.A.C. 5:96-11.
[Ord. #2009-09 § 1]
a.
In Holmdel Builder's Association V. Holmdel Township, 121 N.J.
550 (1990), the New Jersey Supreme. Court determined that mandatory
development fees are authorized by the Fair Housing Act of 1985 (the
Act), N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject
to the Council on Affordable Housing's (COAH's) adoption
of rules.
b.
Pursuant to P.L. 2008, c. 46 section 8 (C. 52:27D-329.2) and the
Statewide Non-Residential Development Fee Act (C. 40:55D-8.1 through
8.7), COAH is authorized to adopt and promulgate regulations necessary
for the establishment, implementation, review, monitoring and enforcement
of municipal affordable housing trust funds and corresponding spending
plans. Municipalities that are under the jurisdiction of the Council
or court of competent jurisdiction and have a COAH-approved spending
plan may retain fees collected from non-residential development.
c.
This section establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, Sections 8 and 32-38. Fees collected
pursuant to this section shall be used for the sole purpose of providing
low- and moderate-income housing. This section shall be interpreted
within the framework of COAH's rules on development fees, codified
at N.J.A.C. 5:97-8.
[Ord. #2009-09 § 2]
[Ord. #2009-09 § 3]
a.
AFFORDABLE HOUSING DEVELOPMENT
COAH or THE COUNCIL
DEVELOPMENT FEE
DEVELOPER
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
The following terms, as used in this section, shall have the following
meanings:
Shall mean 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 one hundred (100%)
percent affordable development.
Shall mean the New Jersey Council on Affordable Housing established
under the Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the State.
Shall mean money paid by a developer for the improvement
of property as permitted in N.J.A.C. 5:97-8.3.
Shall mean the legal or beneficial owner or owners of a lot
or of any land proposed to be included in a proposed development,
including the holder of an option or contract to purchase, or other
person having an enforceable proprietary interest in such land.
Shall mean 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 (C. 54:1-35a through C.
54:1-35c).
Shall mean 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.
[Ord. #2009-09, § 4]
a.
Imposed Fees.
1.
Within all residential district(s), residential developers, except
for developers of the types of development specifically exempted below,
shall pay a fee of one and a half (1 1/2%) percent of the equalized
assessed value for residential development provided no increased density
is permitted.
2.
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 may be required
to pay a development fee of six (6%) percent of the equalized assessed
value for each additional unit that may be 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 (4) units to be constructed
on a site that was zoned for two (2) units, the fees could equal one
and one-half (1.5%) percent of the equalized assessed value on the
first two (2) units; and six (6%) percent of the equalized assessed
value for the two (2) additional units, provided zoning on the site
has not changed during the two-year period preceding the filing of
such a variance application.
b.
Eligible Exactions, Ineligible Exactions and Exemptions for Residential
Development.
1.
Affordable housing developments, 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.
2.
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.
3.
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.
4.
Developers of residential structure demolished and replaced as a
result of a fire, flood or natural disaster, shall be exempt from
paying a development fee.
[Ord. #2009-09 § 5]
a.
Imposed Fees.
1.
Within all zoning districts, nonresidential developers, except for
developers of the types of development specifically exempted, shall
pay a fee equal to two and one-half (2.5%) percent of the equalized
assessed value of the land and improvements, for all new nonresidential
construction on an unimproved lot or lots.
2.
Nonresidential developers, except for developers of the types of
development specifically exempted, shall also pay a fee equal to two
and one-half (2.5%) percent of the increase in equalized assessed
value resulting from any additions to existing structures to be used
for nonresidential purposes.
3.
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of two and
a half (2.5%) percent shall be calculated on the difference between
the equalized assessed value of the pre-existing 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.
b.
Eligible Exactions, Ineligible Exactions and Exemptions for Nonresidential
Development.
1.
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the two and a half (2.5%) percent
development fee, unless otherwise exempted below.
2.
The two and one-half (2.5%) percent fee shall not apply to an increase
in equalized assessed value resulting from alterations, change in
use within existing footprint, reconstruction, renovations and repairs.
3.
Nonresidential developments shall be exempt from the payment of nonresidential
development fees in accordance with the exemptions required pursuant
to P.L. 2008, c. 46, as specified in the Form N-RDF "State of New
Jersey Non-Residential Development Certification/Exemption" Form.
Any exemption claimed by a developer shall be substantiated by that
developer.
4.
A developer of a nonresidential development exempted from the non-residential
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 (3) years after that event or after the issuance of the
final certificate of occupancy of the nonresidential development,
whichever is later.
5.
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within forty-five (45) days of the termination of the
property tax exemption. Unpaid nonresidential development fees under
these circumstances may be enforceable by the Township of Frelinghuysen
as a lien against the real property of the owner.
[Ord. #2009-09 § 6]
a.
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.
b.
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 developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
c.
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.
d.
Within ninety (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.
e.
The Construction Official responsible for the issuance of a final
Certificate of Occupancy notifies the local Assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
f.
Within ten (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.
g.
Should the Township of Frelinghuysen fail to determine or notify the developer of the amount of the development fee within ten (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 (C. 40:55D-8.6).
h.
Fifty (50%) 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. No Certificate of Occupancy shall be
issued to the developer until all remaining developer fees have been
paid in full.
i.
Appeal of Development Fees.
1.
A developer may challenge residential development fees imposed by
filing a challenge with the County Board of Taxation. Pending a review
and determination by the Board, collected fees shall be placed in
an interest bearing escrow account by the Township of Frelinghuysen.
Appeals from a determination or the Board may be made to the Tax Court
in accordance with the provisions of the State Tax Uniform Procedure
Law, R.S. 54:48-1 et seq., within ninety (90) days after the date
of such determination. Interest earned on amounts escrowed shall be
credited to the prevailing party.
2.
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 forty-five (45) days of receipt of the challenge, collected
fees shall be placed in an interest bearing escrow account by the
Township of Frelinghuysen. 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, R.S. 54:48-1 et seq., within
ninety (90) days after the date of such determination. Interest earned
on amounts escrowed shall be credited to the prevailing party.
[Ord. #2009-09 § 7]
a.
There is hereby created a separate, interest-bearing housing trust
fund to be maintained by the 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.
b.
The following additional funds shall be deposited in the affordable
housing trust fund and shall at all times be identifiable by source
and amount:
1.
Payments in lieu of on-site construction of affordable units;
2.
Developer contributed funds to make ten (10%) percent of the adaptable
entrances in a townhouse or other multistory attached development
accessible;
3.
Rental income from municipally operated units;
4.
Repayments from affordable housing program loans;
5.
Recapture funds;
6.
Proceeds from the sale of affordable units; and
7.
Any other funds collected in connection with Township of Frelinghuysen's
affordable housing program.
c.
Within seven (7) days from the opening of the trust fund account,
the Township of Frelinghuysen shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
the bank, and COAH to permit COAH to direct the disbursement of the
funds as provided for in N.J.A.C. 5:97-8. 13(b).
d.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH.
[Ord. #2009-09 § 8]
a.
The expenditure of all funds shall conform to a spending plan approved
by COAH. Funds deposited in the housing trust fund may be used for
any activity approved by COAH to address the Township of Frelinghuysen's
fair share obligation and may be set up as a grant or revolving loan
program. Such activities include, but are not limited to: preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable,
or regional housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or State standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through
8.9 and specified in the approved spending plan.
b.
Funds shall not be expended to reimburse the Township of Frelinghuysen
for past housing activities.
c.
At least thirty (30%) percent 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 thirty (30%) percent or less
of median income by region.
1.
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.
2.
Affordability assistance to households earning thirty (30%) percent
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 thirty (30%) percent or less of median
income.
3.
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.
d.
The Township of Frelinghuysen 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. 5:96-18.
e.
No more than twenty (20%) percent 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 twenty
(20%) percent of the revenues collected from development fees shall
be expended for such administrative expenses. Administrative funds
may be used for income qualification of households, monitoring the
turnover of sale and rental units, and compliance with COAH's
monitoring requirements. Legal or other fees related to litigation
opposing affordable housing sites or objecting to the Council's
regulations and/or action are not eligible uses of the affordable
housing trust fund.
[Ord. #2009-09 § 9]
The Township of Frelinghuysen shall complete and return to COAH
all monitoring forms included in monitoring requirements related to
the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
funds from the sale of units with extinguished controls, barrier free
escrow funds, rental income, repayments from affordable housing program
loans, and any other funds collected in connection with the Township
of Frelinghuysen's housing program, as well as to the expenditure
of revenues and implementation of the plan certified by COAH. All
monitoring reports shall be completed on forms designed by COAH.
[Ord. #2009-09 § 10]
The ability for the Township of Frelinghuysen to impose, collect
and expend development fees shall expire with its substantive certification
unless the Township of Frelinghuysen has filed an adopted Housing
Element and Fair Share Plan with COAH, has petitioned for substantive
certification, and has received COAH's approval of its development
fee ordinance. If the Township of Frelinghuysen fails to renew its
ability to impose and collect development fees prior to the expiration
of substantive certification, it may be subject to forfeiture of any
or all funds remaining within its municipal trust fund. Any funds
so forfeited shall be deposited into the "New Jersey Affordable Housing
Trust Fund" established pursuant to section 20 of P.L. 1985, c. 222
(C. 52:27D-320). The Township of Frelinghuysen shall not impose a
residential development fee on a development that receives preliminary
or final site plan approval after the expiration of its substantive
certification or judgment of compliance, nor shall the Township of
Frelinghuysen retroactively impose a development fee on such a development.
The Township of Frelinghuysen shall not expend development fees after
the expiration of its substantive certification or judgment of compliance.
[Ord. #2009-14 § 1]
To calculate a projection of revenue anticipated during the
period of the period of third round substantive certification, Township
of Frelinghuysen considered the following:
a.
Development Fees.
1.
Residential and nonresidential projects which have had development
fees imposed upon them at the time of preliminary or final development
approvals.
2.
All projects currently before the Planning and Zoning Boards for
development approvals that may apply for building permits and Certificates
of Occupancy; and
3.
Future development that is likely to occur based on historical rates
of development.
b.
Payment in Lieu (PIL). Actual and committed payments in lieu (PIL)
of construction from developers as follows:
No payments in lieu have been collected or assessed at this
time.
c.
Other Funding Sources. Funds from other sources, including, but not
limited to, the sale of units with extinguished controls, repayment
of affordable housing program loans, rental income and proceeds from
the sale of affordable units.
d.
Projected Interest. Interest on the projected revenue in the municipal
affordable housing trust fund at the current average interest rate.
|
Source of Funds
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
TOTAL
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Approved Develop-ment
|
$12,660
|
$12,660
|
$25,320
| |||||||||
|
Projected Develop-ment
|
$22,115
|
$25,320
|
$27,755
|
$25,320
|
$23,405
|
$27,445
|
$32,758
|
$32,235
|
$30,633
|
$246,985
| ||
|
Repay-ment of Rehab-ilitation Loans
|
$10,000
|
$10,000
|
$10,000
|
$30,000
| ||||||||
|
Interest
|
$152
|
$152
|
$265
|
$304
|
$333
|
$304
|
$401
|
$329
|
$513
|
$387
|
$488
|
$3,628
|
|
TOTAL
|
$12,812
|
$12,812
|
$22,380
|
$25,624
|
$28,088
|
$25,624
|
$33,806
|
$27,774
|
$43,271
|
$32,622
|
$41,120
|
$305,933
|
|
Township of Frelinghuysen projects a total of $305,933 in revenue
to be collected between 2008 and December 31, 2018. All interest earned
on the account shall accrue to the account to be used only for the
purposes of affordable housing.
|
[Ord. #2009-14 § 1]
The following procedural sequence for the collection and distribution
of development fee revenues shall be followed by Township of Frelinghuysen:
a.
Collection of Development Fee Revenues. Collection of development
fee revenues shall be consistent with Township of Frelinghuysen's
Development Fee Ordinance[1] for both residential and nonresidential developments in
accordance with COAH's rules and P.L. 2008, c. 46, sections 8
(C. 52:27D-329.2) and 32-38 (C. 40:55D-8.1 through 8.7).
b.
Distribution of Development Fee Revenues. The Administration forwards
a resolution to the governing body recommending the expenditure of
development fee revenues as set forth in this spending plan. The governing
body reviews the request for consistency with the spending plan and
adopts the recommendation by resolution.
The release of the funds requires the adoption of the Governing
Body resolution in accordance with the COAH-approved spending plan.
Once a request is approved by resolution, the Chief Financial Officer
releases the requested revenue from the trust fund for the specific
use approved in the Governing Body's resolution.
[Ord. #2009-14 § 3]
a.
Rehabilitation and New Construction Programs and Projects (N.J.A.C.
5:97-8.7). Township of Frelinghuysen will dedicate a maximum of $10,000
to rehabilitation or new construction programs (see detailed descriptions
in Fair Share Plan) as follows:
Rehabilitation program: $10,000
New construction project(s): $161,322
Block 201, Lot 31 has been identified in the Housing Element
and Fair Share Plan as one (1) location for one hundred (100%) percent
affordable housing development. Funds would be used to aid non-profit
and for-profit entities in building affordable housing in partnership
with or without the Township at this specific site and any other sites
that are deemed appropriate.
b.
Affordability Assistance (N.J.A.C. 5:97-8.8). The Township of Frelinghuysen
will spend a minimum of thirty (30%) percent of its development fee
revenue to render existing affordable units more affordable and one-third
(1/3) of that amount will be dedicated to very low-income households
(i.e. households earning less than thirty (30%) percent of the regional
median income).
Projected minimum affordability assistance requirement:
|
SPENDING PLAN CALCULATIONS SUMMARY
| ||
|
Existing Balance (as of November 3, 2008)
|
=
|
$0
|
|
Pending fees due upon issuance of building permit and/or CO
|
+
|
$25,320
|
|
Projection based on historic development activity
|
+
|
$246,985
|
|
Projection of rehabilitation loans anticipated to be repaid
|
+
|
$30,000
|
|
Projected Interest
|
+
|
$3,628
|
|
TOTAL PROJECTED REVENUE
|
=
|
$305,933
|
|
Affordability Assistance (minimum of 30% of above total)
To very low income households (minimum 13% of above allotment)
|
-
|
$91,780 minimum
$30.287 minimum
|
|
REMAINING FUNDS FOR OTHER HOUSING ACTIVITY
|
=
|
$214,153
|
|
Township of Frelinghuysen will dedicate $91,780 from the affordable
housing trust fund to render units more affordable, including $30,287
to render units more affordable to households earning thirty (30%)
percent or less of median income by region, using programs such as
security deposit assistance, low interest loans, rental assistance,
converting low-income units to very low-income units, etc.
|
c.
Administrative Expenses (N.J.A.C. 5:97-8.9). Township of Frelinghuysen
projects that $42,831 will be available from the affordable housing
trust fund to be used for administrative purposes. Projected administrative
expenditures, subject to the twenty (20%) percent cap, are as follows:
[Ord. #2009-14 § 4]
Township of Frelinghuysen intends to use affordable housing
trust fund revenues for the creation and/or rehabilitation of housing
units. Where applicable, the creation/rehabilitation funding schedule
below parallels the implementation schedule set forth in the Housing
Element and Fair Share Plan and is summarized as follows. The chart
lists the various programs and projects that Frelinghuysen may embark
on during the third round period. Each program/project is given a
minimum or maximum amount that may be spent during the eleven (11)
year time frame and the years when money may be spent. Frelinghuysen
would like this flexibility so that if in the future an opportunity
arises that would be advantageous to the affordable housing program,
the municipality would have the freedom to aid the opportunity with
this type of flexible expenditure schedule. Additionally, this flexibility
is important if the development fee funds that have been forecasted
fail to occur and limit Frelinghuysen's spending ability.
EXPENDITURE SCHEDULE
|
EXPENDITURE SCHEDULE
| |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Source of Funds
|
#
units
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
TOTAL
|
|
Afford-ability Assistance
|
?
|
$91,780 Minimum
| |||||||||||
|
Admini-stration Purposes
|
?
|
$40,831 Maximum
| |||||||||||
|
Rehab-ilitation
|
1
|
$10,000 Maximum
| |||||||||||
|
100% Affordable Projects
|
10
|
$161,322 Maximum
| |||||||||||
|
Total $305,933
| |||||||||||||
[Ord. #2009-14 § 5]
Pursuant to the Housing Element and Fair Share Plan, the Governing
Body of Township of Frelinghuysen has adopted a resolution agreeing
to fund any shortfall of funds required for implementing administrative
expenses and rehabilitation. In the event that a shortfall of anticipated
revenues occurs, Township of Frelinghuysen will handle the shortfall
of funds with a resolution of intent to bond. In the event of excess
funds, any remaining funds above the amount necessary to satisfy the
municipal affordable housing obligation will be used to fund the housing
activities described above.
[Ord. #2009-14 § 6]
Collection and distribution of barrier free funds shall be consistent with Township of Frelinghuysen's Affordable Housing Ordinance Section 20-7. Requirements for affordable housing units, E.l-2 and in accordance with N.J.A.C. 5:97-8.5.
