[HISTORY: Adopted by the Council of the Township of Montclair 9-22-2009 by Ord. No.
O-053-09; amended in its entirety 5-22-2018 by Ord. No. O-18-024. Subsequent amendments noted where applicable.]
A.
This chapter is intended to assure that low-income and moderate-income
units are created with controls on affordability over time and that
low- and moderate-income households shall occupy these units. This
chapter shall apply except where inconsistent with applicable law.
B.
The Montclair 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 Montclair shall address its
fair share for low- and moderate-income housing documented in the
Housing Element.
C.
This chapter implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:97, as may be amended and
supplemented.
The following terms, when used in this chapter, shall have the
meanings given in this section:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; in the case of an ownership
unit, "affordable" means that the sales price for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended
and supplemented and, in the case of a rental unit, that the rent
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12,
as may be amended and supplemented.
A housing development, all or a portion of which consists
of restricted units.
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a one-hundred-percent-affordable
development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing trust fund, or a unit subject to a program established pursuant to § 65-3.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
The development has been designated by the Secretary of the
United States Department of Housing and Urban Development as "housing
for older persons" as defined in Section 807(b)(2) of the Fair Housing
Act, 42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
A development containing both affordable units and market-rate
units. This term includes, but is not necessarily limited to, new
construction, the conversion of a nonresidential structure to residential
and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as determined by applicable state and/or federal agencies.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class A
beneficiary; and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
The Township of Montclair has determined that it will use the
following mechanisms to satisfy its affordable housing obligations
and to provide realistic housing opportunities for Township and Board
of Education employees and for Township residents seeking to reside
or continue to reside in Montclair:
A.
A rehabilitation program.
(1)
Montclair'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 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 Montclair shall dedicate a minimum of $15,000 for
each unit to be rehabilitated through this program, reflecting the
minimum hard cost of rehabilitation for each unit.
[Amended 6-12-2018 by Ord. No. O-18-031]
(5)
The Township of Montclair shall adopt a resolution committing to
fund any shortfall in the rehabilitation programs for the Township
of Montclair.
(6)
The Township of Montclair shall designate one 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. 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 rerented 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.
Essex County Rehabilitation Program (Housing Improvement Program
known as "HIP"). The County's HIP has been operational for many years.
It is funded through the federal Community Development Block Grant
Program. It provides deferred loans to income-qualifying homeowners
who occupy a one- to three-family home. A lien will be recorded against
the property. The lien must be paid off only if the property is sold
or transferred within a twenty-year period. Homeowners who occupy
a one- to three-family home must meet income guidelines. Examples
of eligible improvements include heating systems, roofing, plumbing,
electrical and code violation abatement. The program has a good track
record. Over 30 units have been rehabilitated in Montclair since 2000.
It is anticipated that HIP will renovate three units per year for
the next 10 years. Information on the HIP may be obtained by contacting
the County's Division of Housing and Community Development, 20 Crestmont
Road, Verona, NJ 07044; 973-655-0200.
C.
A market-to-affordable program.
(1)
A market-to-affordable program is established to permit the purchase or subsidization of units through a written agreement with the property owner and sold or rented to low- and moderate-income households. Subject to the provisions of Subsection C(2)(c) below, the market-to-affordable programs may produce both low- and moderate-income units.
(2)
The following provisions shall apply to market-to-affordable programs:
(a)
At the time they are offered for sale or rental, eligible units
may be new, preowned or vacant.
(b)
The units shall be certified to be in sound condition as a result
of an inspection performed by a licensed building inspector.
(c)
The municipality will provide a minimum of $25,000 per unit
to subsidize each moderate-income unit and/or $30,000 per unit to
subsidize each low-income unit, with additional subsidy depending
on the market prices or rents in a municipality.
(d)
The maximum number of creditable market-to-affordable units
shall be equal to no more than 10 for-sale units and 10 rental units
or a combined total of 10% of the fair share obligation, whichever
is greater.
(3)
The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(a)
Bedroom distribution [N.J.A.C. 5:80-26.3(b) and (c)];
(b)
Low-/moderate-income split [N.J.A.C. 5:80-26.3(a)]; and
(c)
Affordability average [N.J.A.C. 5:80-26.3(d) and (e)]; however:
[1]
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60% of median income, and the maximum
rent for a low-income unit shall be affordable to households earning
no more than 44% of median income; and
[2]
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70% of median income,
and the maximum sales price for a low-income unit shall be affordable
to households earning no more than 40% of median income.
D.
Down payment assistance program. The following procedure is to be
employed in connection with requests for down payment assistance to
qualified affordable housing buyers who lack sufficient funds for
the necessary down payment to purchase an affordable housing unit.
The down payment assistance shall be in the form of a grant.
[Amended 8-7-2018 by Ord.
No. O-18-037]
(1)
Applications for down payment assistance shall be made by a qualified
affordable housing buyer to the Department of Planning and Community
Development on the application form provided by said office. Said
application shall be approved by resolution by the Township Council
upon referral from the Department of Planning and Community Development,
provided that the application satisfies the requirements set forth
herein, and subject to the availability of funds in the Affordable
Housing Trust Fund.
(2)
The maximum amount of the down payment assistance grant to an applicant
shall be $2,500.
(3)
The down payment assistance program will be funded through the Affordable
Housing Trust Fund. All grants will be released at closing.
(4)
The terms of the grant shall require that the full amount of the
grant be repaid to the Township in the event that the property is
sold within 10 years of the closing. In the event that the sale price
is less than the grantee's purchase price, the amount of the repayment
shall be reduced by the difference between the purchase and sale prices.
E.
Voluntary extension of affordability controls program.
(1)
Montclair's voluntary extension of affordability controls is designed
to maintain the Township's supply of housing affordable to low- and
moderate-income households by extending the term of the affordability
controls on existing affordable units.
(2)
Eligible participants must be owners and occupants of a dwelling
unit in Montclair Township that has a low- and moderate-income deed
restriction that has expired or is scheduled to expire within two
years of the application for an extension of the affordability control.
(3)
Applications by eligible participants shall be made to the Department
of Planning and Community Development on the application form provided
by said office. Said application shall be approved by resolution by
the Township Council upon referral from the Department of Planning
and Community Development, provided that the application satisfies
the requirements set forth herein, and subject to the availability
of funds in the Affordable Housing Trust Fund.
(4)
Applicants must meet the current income requirements for a low- and
moderate-income household.
(5)
The Township of Montclair will dedicate a maximum of $15,000 for
each dwelling unit that extends the deed restriction. These funds
must be used for repairs and/or renovations to the dwelling unit.
The applicant must provide satisfactory evidence of the intended repairs
and renovations, and the projected cost thereof, as part of the application
process.
[Amended 6-12-2018 by Ord. No. O-18-031]
(6)
Any appliances or improvements for which program funds are used must
be energy efficient.
(7)
The term for the extended deed restrictions must be at least 30 years
from the date of expiration of the initial restriction or the date
of the new deed restriction, whichever is longer.
F.
Resident retention and Township/Board of Education employee housing
initiative program.
(1)
The Township of Montclair will encourage and support the creation
of housing opportunities affordable to Township residents desiring
to continue living in Montclair and for Township and Board of Education
employees seeking to live in Montclair.
(2)
The Township may develop project-based programs and criteria to accomplish
these ends.
G.
Rental Assistance
Program.
[Added 10-27-2020 by Ord. No. O-20-21]
(1)
The
Montclair Township Rental Assistance Program is designed to help very-low-
and low-income households to find a home in Montclair. This program
will provide a grant to renters of deed-restricted affordable properties
within Montclair Township to be used to pay for up to the first three
months' rent or $2,500, whichever is greater. The goal of the program
is to provide financial assistance to very-low- and low-income tenants
of affordable housing to alleviate financial hardship associated with
moving to a new rental unit. Funds are made available through the
Affordable Housing Trust Fund of Montclair Township.
[Amended 5-4-2021 by Ord. No. O-21-08]
(2)
Applicants
for this grant program must be income-qualified as a very-low-income
or low-income household by the Administrative Agent for Montclair
Township and must have a lease to rent a deed-restricted apartment
in Montclair.
[Amended 5-4-2021 by Ord. No. O-21-08]
(3)
Properties
must be a rental property within Montclair Township with deed restrictions
limiting ownership to eligible low- and moderate-income families.
The rent of the apartment will be limited by the deed restriction
to be affordable to a very-low-income household.
(4)
Upon
certification of the qualifications of the unit and prospective tenant
household by the Administrative Agent, the Municipal Housing Liaison
will request authorization to disburse the funds.
A.
Municipal Housing Liaison. The position of Municipal Housing Liaison
(MHL) for Montclair is established by this chapter. The Township Manager
shall make the actual appointment of the MHL by letter.
(1)
The MHL must be either a full-time or part-time employee of Montclair.
(2)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Montclair, 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 Montclair's Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required;
(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.
B.
Administrative agent. The Township of Montclair shall designate by
resolution, one 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. 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).
(1)
Duties. The administrative agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the operating manual, including those
set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof,
which includes:
(a)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing;
(b)
Affirmative marketing;
(c)
Household certification;
(d)
Affordability controls;
(e)
Records retention;
(f)
Resale and rerental;
(g)
Processing requests from unit owners; and
(h)
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality.
(2)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
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.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3)
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 10% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% 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 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted-ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5)
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 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)
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 9% in any one
year. Rents for units constructed pursuant to low-income housing tax
credit regulations shall be indexed pursuant to the regulations governing
low-income housing tax credits.
(11)
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.
[Amended 8-20-2019 by Ord. No. O-19-028]
A.
Montclair shall adopt by resolution an Affirmative Marketing Plan,
compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
B.
The Affirmative Marketing Plan is a 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, affection 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.
C.
The Affirmative Marketing Plan shall include a local preference for
all households that live in the Township of Montclair or are full-time
employees of either the Township of Montclair or the Township of Montclair
Board of Education.
D.
The administrative agent designated by the Township of Montclair
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 and/or another qualified entity retained by the Township 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 months prior to the expected date 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 Montclair.
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.
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 chapter until the Township of Montclair 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.
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 nonexempt sale after the unit's release from
the requirements of this chapter, 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 chapter 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.
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.
A.
Buyer income eligibility for restricted-ownership units shall be
in accordance with N.J.A.C. 590-26.1, 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% of median
income, and moderate-income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
B.
The administrative agent shall certify a household as eligible for
a restricted-ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowners' association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
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 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
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 chapter until the Township of Montclair 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.
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 Essex. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
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 5% of the monthly rent of the applicable restricted unit
and shall be payable to the administrative agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this chapter.
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 or equal to 30% of median income.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% 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 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(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.
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 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 or more of the following penalties, at the
discretion of the court:
(a)
A fine of not more than $500 or imprisonment for a period not
to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
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 Montclair's 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 attorneys' 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 and to the extent of such deficiency, in addition to any and all
costs incurred by the municipality in connection with collecting such
deficiency. In the event that a surplus remains after satisfying all
of the above, such surplus, if any, shall be placed in escrow by the
municipality for the owner and shall be held in such escrow for a
maximum period of two years or until such earlier time as the owner
shall make a claim with the municipality for such. Failure of the
owner to claim such balance within the two-year period shall automatically
result in a forfeiture of such balance to the municipality. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the municipality, whether such balance
shall be paid to the owner or forfeited to the municipality.
E.
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
F.
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.
