[Ord. No. 2017-3149]
The following terms when used in this chapter shall have the
meanings given in this section:
ACT
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222
(N.J.S.A. 52:27D-301 et seq.).
ADAPTABLE
Shall mean constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
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.
AFFIRMATIVE MARKETING
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.
AFFORDABILITY AVERAGE
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.
AFFORDABLE
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.
AFFORDABLE HOUSING DEVELOPMENT
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.
AFFORDABLE HOUSING PROGRAM(S)
Shall mean any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
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.
AGENCY
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.).
AGE-RESTRICTED UNIT
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.
ALTERNATIVE LIVING ARRANGEMENT
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.
ASSISTED LIVING RESIDENCE
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.
CERTIFIED HOUSEHOLD
Shall mean a household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
COAH
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.).
DCA
Shall mean the State of New Jersey Department of Community
Affairs.
DEFICIENT HOUSING UNIT
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.
DEVELOPER
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.
DEVELOPMENT
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.
INCLUSIONARY DEVELOPMENT
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.
LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income equal to fifty (50%) percent or less of the median household
income.
LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a low-income
household.
MAJOR SYSTEM
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.
MARKET-RATE UNITS
Shall mean housing not restricted to low- and moderate-income
households that may sell or rent at any price.
MEDIAN INCOME
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.
MODERATE-INCOME HOUSEHOLD
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.
MODERATE-INCOME UNIT
Shall mean a restricted unit that is affordable to a moderate-income
household.
NON-EXEMPT SALE
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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
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.
REHABILITATION
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.
RENT
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.
RESTRICTED UNIT
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.
UHAC
Shall mean the Uniform Housing Affordability Controls set
forth in N.J.A.C. 5:80-26.1 et seq.
VERY LOW-INCOME HOUSEHOLD
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.
VERY LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a very
low-income household.
WEATHERIZATION
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]
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.
c. Design.
1. In inclusionary developments, to the extent possible, low- and moderate-income
units shall be integrated with the market units.
2. In inclusionary developments, low- and moderate-income units shall
have access to all of the same common elements and facilities as the
market units.
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:
(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; and
(c) A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
7. The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 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]
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]
Appeals from all decisions of an Administrative Agent designated pursuant to this chapter or pursuant to Chapter
2, Article
III, Section
2-7 of the City Code shall be filed in writing with the Court.