[Ord. #04-05, § 1]
Affordability Standards for Low and Moderate Income Units: Resale and Rental Standards.
For the purpose of this section, a "low income household" shall be a household earning fifty (50%) percent or less of the area median income, adjusted by household size and a "moderate income household" shall be a household earning between fifty (50%) percent and eighty (80%) percent of the area median income adjusted by household size. The area median income shall be the most recent median income figures promulgated by the United States Department of Housing and Urban Development for its regional PMSA, unless said figures are superseded by a ruling of a court of competent jurisdiction, or the New Jersey Council on Affordable Housing.
The gross rent for low or moderate income units, including an allowance for utilities shall not exceed thirty (30%) percent of the gross monthly income of the appropriate household size. The allowance for utilities shall be consistent with the utility allowance approved by HUD for use in New Jersey.
In establishing affordability of a unit of a given number of bedrooms, such units shall be priced to be affordable as set forth above to household sizes as follows:
Standards Governing Resale and Rental of Low and Moderate Income Units.
Rehabilitated owner-occupied single-family housing units that are improved to code standards shall be subject to affordability controls for at least six (6) years and rehabilitated renter-occupied housing units meeting code standards shall be subject to affordability controls for at least ten (10) years.
The Borough of Midland Park shall designate by resolution of the governing body, an administering agency responsible for administering the provisions of this section which may be the municipality or any division, board or agency thereof; any other public or private nonprofit agency; or the developer acting under the direct supervision and control of an agency of the municipality.
If the use of median income data adopted by the Council on Affordable Housing to indicate cost of housing renders a unit unaffordable to a low or moderate income household at the time of resale, the municipality shall not lose credit for the housing unit, provided that adequate controls on affordability remain in place, but the Borough, if it so elects may subsidize the housing unit to maintain its affordability.
The administering agency shall adopt such regulations and guidelines not inconsistent with the provisions of this section, as may be necessary to carry out the provisions of this section; provided, however, that such regulations, if promulgated by other than an agency of the Borough, shall not be effective until approved by resolution of the governing body of the Borough of Midland Park.
Property owners of single-family, owner-occupied housing may apply to the Borough of Midland Park for permission to increase the maximum price for eligible capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household. In no event shall the maximum price of an improved housing unit exceed the limits of affordability for the larger household. Property owners shall apply to the municipal entity if an increase in the maximum sale price is sought.
An action of foreclosure by a financial institution regulated by State and/or Federal law shall extinguish controls on affordable housing units. Notice of foreclosure shall allow the Borough to purchase the affordable housing unit at the maximum permitted sale price. Failure of the Borough to purchase the affordable housing unit shall result in the Council on Affordable Housing adding that unit to the municipal present and prospective fair share obligation.
In the event of a foreclosure sale, the owner of the affordable housing unit shall be personally obligated to pay to the Borough any surplus funds, but only to the extent that such surplus funds exceed the difference between the maximum price permitted at the time of foreclosure and the amount necessary to redeem the debt to the financial institution including costs of foreclosure.
[Added 5-10-2018 by Ord. No. 17-18]
The Borough of Midland Park Planning Board has adopted a HE/FSP consistent with the Settlement Agreement which provides that for its Third Round, the Borough has a realistic development potential ("RDP") of 0 numerical units and an unmet need of 239 units, which is comprised of 41 units from the Prior Round and 198 units from the Third Round. The Borough has constructed 70 affordable housing units and has satisfied its Prior Round unmet need. The Borough is entitled to a twenty-nine-unit credit toward its Third Round obligation and therefore has a remaining unmet need of 169.
The Settlement Agreement and HE/FSP detail the various components and mechanisms whereby the Borough satisfies its affordable housing obligation.
The Borough has adopted Ordinance No. 03-18 which establishes two multifamily residential Overlay zones designated Overlay 1 (MFO-1) and Overlay 2 (MFO-2) which permits the development of multifamily housing, provided that such development complies with the required inclusionary set-aside requirement of the ordinance.
The Borough has also adopted Ordinance No. 04-18, an affordable housing set-aside ordinance, which requires that any multifamily residential development of five or more units at or above six units per acre approved by the appropriate land use board shall be required to set aside a minimum percentage of units for affordable housing. Where the units will be for purchase, the minimum set-aside shall be 20%. Where the units will be for rental, the minimum set-aside shall be 15%.
All the provisions of this section are subject to the provisions of the Settlement Agreement which is incorporated herein as if set forth in length, the applicable provisions of the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., applicable Council On Affordable Housing ("COAH") rules, or any successor regulation, the Borough's Housing Element and Fair Share Plan, and all other applicable law.
At least 50% of affordable units in the Borough pursuant to the HE/FSP and Settlement Agreement shall be affordable to low-income households, including 13% in rental developments being affordable to very-low-income households. The required bedroom distribution shall be governed by controls on affordability and affirmatively marketed units in accordance with UHAC.
The Borough shall affirmatively market the affordable units under the HE/FSP through an administrative agent retained by the Borough. The Affirmative Marketing Program will meet the following requirements:
All newspaper articles, announcements, and requests for applications for low- and moderate-income units will appear in the following publications: The Record, Star Ledger and New Jersey Herald.
The following organizations will be provided with notice of all available affordable housing units: Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, and the Bergen County NAACP.
The administrative agent shall also advertise and publicize the availability of affordable housing units on News 12 New Jersey and at least two radio stations serving Housing Region 1. Announcement of the availability of affordable units will also be aired on the Borough's cable access programing.
The availability of affordable units will be publicized by advertisements and flyers forwarded to any employers within Housing Region 1 having more than 500 employees.
The administrative agent shall take such affirmative marketing measures as delineated in N.J.A.C. 5:80-26.15, the provisions of which are hereby incorporated by reference.
Brochures, signs, flyers and posters used as part of the affirmative marketing program shall be posted in the Borough Hall and the Midland Park Library.
The availability of affordable units will also be provided to local houses of worship, with the request that the information is passed on to congregants.
The availability of affordable units will also be included in the Borough's quarterly newsletter distributed to all residents.
[Ord. #09-04, § 1]
In Holmdel Builder's Ass'n. v. Holmdel Township, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution subject to COAH developing rules. The purpose of this section is to establish standards for the collection, maintenance and expenditure of development fees pursuant to rules of the Council on Affordable Housing (COAH). Fees collected pursuant to this section shall be used for the sole purpose of providing low and moderate income housing. This section shall be interpreted within the framework of COAH's rules on development fees.
[Ord. #09-04, § 2]
Any fees collected prior to December 13, 1990 shall be retained by the Borough pursuant to COAH's rules regarding the retention of development fees.
[Ord. #09-04, § 3; Ord. #05-06, § 1]
Within the R-1 and R-2 Districts, developers shall pay development fee of one-half of one (1/2%) of the equalized value of any eligible residential activity pursuant to Subsection 22-3.5 of this section.
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5) has been permitted, developers may be required to pay a development fee of six (6%) percent of the equalized assessed value for each additional unit that may be realized, provided that no rezoning has occurred in the two (2) years prior to the date of the filing of this Ordinance.
[Ord. #09-04, § 4]
Developers within all districts, except the R-1 and R-2 Districts, shall pay a fee of one (1%) percent of equalized assessed value for eligible nonresidential activities pursuant to Subsection 22-3.5 of this section.
[Ord. #09-04, § 5]
Developers of low and moderate income units shall be exempt from paying development fees.
Developers that expand an existing nonresidential structure shall pay a development fee. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.
Developers that have received preliminary or final approval prior to the effective date of this section shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.
Developers of a single residential parcel of land with a one (1) family residence shall be exempt from paying a development fee.
A property owner expending an existing one (1) or two (2) family residential structure shall be exempt from paying a development fee.
[Ord. #09-04, § 6]
Developers shall pay fifty (50%) percent of the calculated development fee to the Borough at the issuance of building permits. The development fee shall be estimated by the Tax Assessor prior to the issuance of building permits.
Developers shall pay the remaining fee to the Borough at the issuance of certificates of occupancy. At the issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at certificate of occupancy and the amount paid at building permit.
[Ord. #09-04, § 7]
There is hereby created an interest bearing housing trust in the current depository for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers pursuant to this section shall be deposited in this fund. No money shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by COAH.
If COAH determines that the Borough is not in conformance with COAH's rules on development fees, COAH is authorized to direct the manner in which all development fees collected pursuant to this section shall be expended. Such authorization is pursuant to this section; COAH's rules on development fees; and the written authorization from the governing body to the current depository.
[Ord. #09-04, § 8]
Money deposited in a housing trust fund may be used for any activity approved by COAH for addressing the Borough's low and moderate income housing obligation. Such activities may include, but are not necessarily limited to: housing rehabilitation; new construction; regional contribution agreements; the purchase of land for low and moderate income housing; the improvement of land to be used for low and moderate income housing; extensions and/or improvements of roads and infrastructure to low and moderate income housing sites; assistance designed to render units to be more affordable to low and moderate income people; and administrative costs necessary to implement Midland Park's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
At least thirty (30%) percent of the revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to: down payment assistance; low interest loans; and rental assistance. Development fees collected to finance a Regional Contribution Agreement, rehabilitation program, or a new construction project shall be exempt from this requirement.
No more than twenty (20%) percent of the revenues collected from the revenue section shall be expended on administration including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to develop or implement:
A rehabilitation program, a new construction program, a regional contribution; the housing element; and an affirmative marketing program. Administrative funds may be used for: income qualification of households, monitoring the turnover of sale and rental units; and compliance with COAH monitoring requirements. Development fees shall not be used to defray the cost of existing staff. Development fee administrative costs are calculated and may be expended at the end of each year or upon receipt of the fees.
Development fee revenues shall not be expended to reimburse Midland Park for housing activities that preceded substantive certification.
[Ord. #09-04, § 9]
This section shall expire if:
COAH dismisses or denies the Borough's petition for substantive certification.
The Borough's period of repose or substantive certification is revoked.
Substantive certification/judgment of repose expires prior to the Borough's filing an adopted housing element with COAH, petitioning for substantive certification or receiving COAH'S approval of this section.
COAH's approval to collect development fees expires unless the Borough has filed an adopted housing element with COAH and COAH has approved this section.
[Added 5-10-2018 by Ord. No. 16-18]
There is hereby created the position of Municipal Housing Liaison for the Borough of Midland Park. As used herein, the term "Municipal Housing Liaison" shall mean the employee of the Borough who is directed by the governing body with the responsibility for oversight and administration of the Borough's Affordable Housing Program.
The Municipal Housing Liaison shall be appointed by the Mayor with the advice and consent of the Borough Council and may be a full- or part-time municipal employee. The compensation of the Municipal Housing Liaison shall be as set forth in the Salary Ordinance of the Borough.
The Municipal Housing Liaison shall be responsible for oversight and administration of the Borough's Affordable Housing Program which shall include the following:
Serving as the Borough's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents, and interested households.
Monitoring the status of all restricted units in the Borough's Fair Share Plan.
Compiling, verifying, and submitting annual reports as required pursuant to any final judgment of compliance and repose, court order, or other administrative requirement.
Coordinating meetings with affordable housing providers and administrative agents, as applicable.
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by any agency.
The Borough may contract with or authorize a consultant authority or agency to serve as the administrative assistant for the purpose of administering and enforcing affordability controls and the Borough's Affirmative Marketing Plan consistent with applicable requirements.