[Ord. No. 2017-3149]
a.
This
chapter 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 chapter shall apply except where inconsistent with applicable
law.
b.
The
City of Summit 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 Housing Element and Fair Share Plan has been endorsed
by the Governing Body. The Fair Share Plan describes the ways the
City of Summit shall address its fair share for low- and moderate-income
housing as directed by the Superior Court and documented in the Housing
Element.
c.
This
chapter implements and incorporates the adopted and endorsed Housing
Element and Fair Share Plan and addresses the requirements of N.J.A.C.
5:93-1, et seq., as amended and supplemented, N.J.A.C. 5:80-26.1,
et seq. as amended and supplemented, and the New Jersey Fair Housing
Act of 1985.
[Ord. No. 2017-3149]
The following terms when used in this chapter shall have the
meanings given in this section:
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 ordinance, N.J.A.C. 5:93,
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. 5:93-7.4; 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 development included in or approved pursuant
to the Housing Element and Fair Share Plan or otherwise intended to
address the City's fair share obligation, 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 and approved for crediting by the Court 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 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 structure in which households live in distinct
bedrooms, yet share kitchen and plumbing facilities, central heat
and common areas. Alternative living arrangements include, but are
not limited to: transitional facilities for the homeless; Class A,
B, C, D and E boarding homes as regulated by the State of New Jersey
Department of Community Affairs; residential health care facilities
as regulated by the New Jersey Department of Health; group homes for
the developmentally disabled and mentally ill as licensed and/or regulated
by the New Jersey Department of Human Services; and congregate living
arrangements.
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, as established
by 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 non-residential
structure to residential use and the creation of new affordable units
through the gut rehabilitation or 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
housing region, as adopted annually by COAH or a successor entity
approved by the Court.
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 spouses; 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 duly adopted Regional
Income Limits published annually by COAH or a successor entity.
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 for the applicable housing region.
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 purposes of a rehabilitation
program.
[Ord. No. 2017-3149]
a.
The
administration of an alternative living arrangement shall be in compliance
with N.J.A.C. 5:93-5.8 and UHAC, with the following exceptions:
b.
With
the exception of units established with capital funding through a
20-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least 30-year controls on affordability in accordance
with UHAC.
c.
The
service provider for the alternative living arrangement shall act
as the Administrative Agent for the purposes of administering the
affirmative marketing and affordability requirements for the alternative
living arrangement.
[Ord. No. 2017-3149]
a.
Phasing:
In inclusionary developments, the following schedule shall be followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25
|
0
|
|
25+1
|
10
|
|
50
|
50
|
|
75
|
75
|
|
90
|
100
|
b.
Payments-in-Lieu:
The City may allow developers of sites zoned for inclusionary development
to pay a fee in lieu of building low- and moderate-income units on
site once the parameters for payments in lieu of are established by
the Legislature, Courts, COAH, or other authority.
[Ord. No. 2017-3149]
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,
and further provided that at least thirteen (13%) percent of all restricted
units shall be very low-income units. Very low income units shall
be counted as part of the required number of low-income units within
a development. At least twenty-five (25%) percent of the obligation
shall be met through rental units, including at least half in rental
units available to families. At least fifty (50%) percent of the total
obligation shall be met through units available to families.
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-bedroom units;
(c)
At least twenty (20%) percent of all low- and moderate-income units
shall be three-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.
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,
or evidence that the City of Summit 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 City'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 b above shall be used by
the City of Summit 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 City of Summit.
(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
that the cost estimate of such conversion is reasonable, payment shall
be made to the City's Affordable Housing Trust Fund in care of the
City's Chief Financial Officer 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.
d.
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, utilizing the regional income limits established by COAH or
a successor entity.
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 (1) rent for each bedroom type for both
low-income and moderate-income units, provided that at least thirteen
(13%) percent of all low- and moderate-income rental units shall be
affordable to very low income households.
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 (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.
5:80-26.3, as may be amended and supplemented.
9.
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the Administrative Agent be lower than the last
recorded purchase price.
10.
The rent of low- and moderate-income units may be increased annually
based on the percentage increase in the Housing Consumer Price Index
for the United States. This increase shall not exceed nine (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.
e.
Utilities.
1.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
2.
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.
[Ord. No. 2017-3149]
[Ord. No. 2017-3149]
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. No. 2017-3149]
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 City of Summit 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 non-restricted,
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 chapter, an amount equal to the difference
between the unit's non-restricted fair market value and its restricted
price, and the recapture note shall be secured by a recapture lien
evidenced by a duly recorded mortgage on the unit.
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.
[Ord. No. 2017-3149]
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. No. 2017-3149]
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. No. 2017-3149]
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. No. 2017-3149]
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 City of Summit 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 Bergen County. 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 chapter, despite the occurrence of any of the following
events:
[Ord. No. 2017-3149]
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 chapter.
[Ord. No. 2017-3149]
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 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 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.
[Ord. No. 2017-3149]
[Ord. No. 2017-3149]
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 or more of the following penalties, at the
discretion of the court:
(a)
A fine of not more than five hundred ($500.00) dollars per day 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 City'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.
(a)
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.
(b)
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 (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.
(c)
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.
(d)
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.
(e)
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.
(f)
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. No. 2017-3149]
[Ord. No. 2017-3149]
a.
On the first anniversary of the entry of the order granting the City
a Final Judgment of Compliance and Repose, and every anniversary thereafter,
through the end of the Repose period, the City shall provide annual
reporting of its Affordable Housing Trust Fund activity to the Council
on Affordable Housing or its successor agency at the State Level,
with copies provided to Fair Share Housing Center, and posted on the
municipal website, using forms developed for this purpose by the Council
on Affordable Housing. The reporting shall include an accounting of
all Affordable Housing Trust Fund activity, including the source and
amount of funds collected and the amount and purpose for which any
funds have been expended.
b.
On the first anniversary of the entry of the order granting the City
a Final Judgment of Compliance and Repose, and every anniversary thereafter,
through the end of the Repose period, the City shall provide annual
reporting of the status of all affordable housing activity within
the City through posting on the municipal website with copies provided
to Fair Share Housing Center, using forms previously developed for
this purpose by the Council on Affordable Housing or any other forms
endorsed by the Court-appointed Special Master and Fair Share Housing
Center.
c.
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the City shall post on
its municipal website, with copies provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity. Such posting shall invite any
interested party to submit comments to the City, with copies provided
to Fair Share Housing Center, regarding whether any sites no longer
present a realistic opportunity and should be replaced. Any interested
party may, by motion, request a hearing before the Court regarding
these issues.
d.
For the review of very low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within thirty (30) days of the third anniversary
of the entry of the Order granting the City a Final Judgment of Compliance
and Repose, and every third year thereafter, the City shall post on
its municipal website, with copies provided to Fair Share Housing
Center, a status report as to its satisfaction of its very low-income
requirements, including the family very low-income requirements referenced
herein. Such posting shall invite any interested party to submit comments
to the City with copies provided to Fair Share Housing Center, on
the issue of whether the municipality has complied with its very low-income
housing obligation.
