[Amended 9-16-2019 by Ord. No. 2019-12]
The Township of Cinnaminson shall comply with the following
monitoring and reporting requirements regarding the status of the
implementation of its Housing Element and Fair Share Plan:
A. On the first anniversary of the entry of the order granting Cinnaminson
a Final Judgment of Compliance and Repose in IMO Application of Cinnaminson
Township, Docket No. BUR-L-450-14, and every anniversary thereafter
through the end of the repose period, the Township agrees to provide
annual reporting of its Affordable Housing Trust Fund activity to
the New Jersey Department of Community Affairs, Council on Affordable
Housing, or Local Government Services, or other entity designated
by the State of New Jersey, with a copy provided to Fair Share Housing
Center (FSHC) and posted on the municipal website, using forms developed
for this purpose by the New Jersey Department of Community Affairs
(NJDCA), Council on Affordable Housing (COAH), or Local Government
Services (NJLGS). 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 Cinnaminson
a Final Judgment of Compliance and Repose in IMO Application of Cinnaminson
Township, Docket No. BUR-L-450-14, and every anniversary thereafter
through the end of the repose period, the Township agrees to provide
annual reporting of the status of all affordable housing activity
within the municipality through posting on the municipal website with
a copy of such posting provided to Fair Share Housing Center, using
forms previously developed for this purpose by COAH or any other forms
endorsed by the Special Master and FSHC.
C. On July 1, 2020, which is the midpoint realistic opportunity review,
the Township will post on its municipal website, with a copy provided
to FSHC, 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 and whether any mechanisms
to meet unmet need should be revised or supplemented. Such posting
shall invite any interested party to submit comments to the municipality,
with a copy to FSHC, regarding whether any sites no longer present
a realistic opportunity and should be replaced and whether any mechanisms
to meet unmet need should be revised or supplemented. 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 30 days of the third anniversary of
the entry of the order granting Cinnaminson Final Judgment of Compliance
and Repose in IMO Application of Cinnaminson Township, Docket No.
BUR-L-450-14, and every third year thereafter, the Township will 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 municipality, with copies provided to Fair Share Housing Center,
on the issue of whether the municipality has complied with its very-low-income
housing obligation.
[Amended 9-16-2019 by Ord. No. 2019-12]
The following terms, when used in this chapter, shall have the
meanings given in this section:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Township to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C. 5:80-26).
AFFIRMATIVE MARKETING
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
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4, and, 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
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100-percent affordable
housing development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
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.
AGE-RESTRICTED UNIT
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 wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age 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.A. § 3607.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
ALTERNATIVE LIVING ARRANGEMENT
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
A facility that is 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.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
requires 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
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
DEVELOPMENT
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.
FAIR SHARE PLAN
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the housing element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.A.C. 5:93-5.
HOUSING ELEMENT
The portion of the Township's Master Plan, required
by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and
the Act, that includes the information required by N.J.A.C. 5:93-5.1
and establishes the Township's fair share obligation.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market-rate
units. This term includes, but is not limited to, new construction,
the conversion of a nonresidential 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
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
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 and load-bearing structural
systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
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
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
NONEXEMPT SALE
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.
PRESENT NEED
An estimate of low- and moderate-income households living
in substandard housing as calculated through the use of census surrogates.
RANDOM SELECTION PROCESS
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
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted regional income limits published annually
by COAH or a successor entity.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
SPECIAL MASTER
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
WEATHERIZATION
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.
[Amended 9-16-2019 by Ord. No. 2019-12]
A. The provisions of this chapter shall apply to all affordable housing
developments, affordable housing units and 100-percent affordable
housing projects financed with low income tax credits or other federal
or state programs and that currently exist and that are proposed to
be created within the Township of Cinnaminson pursuant to the Township's
most recently adopted Housing Element and Fair Share Plan.
B. Moreover, this chapter shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units, including 100-percent affordable housing projects financed
with low income tax credits or other federal or state programs.
C. Any property in the Township of Cinnaminson that is currently zoned
for nonresidential uses and subsequently receives a zoning change
or use variance or approval of a redevelopment plan to permit residential
development, or that is currently zoned for residential uses and receives
a zoning change or density variance or approval of a redevelopment
plan to permit higher density residential development, provided such
density is at least twice the density previously permitted, shall
provide an affordable housing set-aside of 15% if the affordable units
will be for rent and 20% if the affordable units will be for sale.
No property shall be subdivided so as to avoid compliance with this
requirement. Moreover, this provision governs municipal actions and
shall not entitle any property owner or developer to such action by
the Township. All affordable units created pursuant to this subsection
shall be governed by the provisions of this chapter.
D. Projects receiving Federal Low Income Housing Tax Credit financing
shall comply with the income and bedroom distribution requirements
of UHAC (with the exception that the UHAC requirement for 10% of the
affordable units in rental projects being required to be at 35% of
median income be modified as required by the statutory requirement,
N.J.S.A. 52:27D-329.1 to 13% of affordable units in such projects
shall be required to be at 30% of median income).
[Amended 9-16-2019 by Ord. No. 2019-12]
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:
(1) Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that
the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the Court;
(2) Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
B. With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
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.
[Amended 9-16-2019 by Ord. No. 2019-12]
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%
|
[Amended 9-16-2019 by Ord. No. 2019-12]
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.
At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of regional median
income by household size). The very-low-income units shall be counted
as part of the required number of low-income units within the development.
(2) In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or 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 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% 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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B. Accessibility requirements.
(1) The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7, and the following.
(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 other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
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
(e)
If not all of the foregoing requirements in Subsections
B(2)(a) through
(d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsections
B(2)(a) through
(d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; 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 Cinnaminson has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible.
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Township of Cinnaminson's Affordable Housing Trust
Fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection
B(2)(f)[2] above shall be used by the Township of Cinnaminson for the sole purpose of making the adaptable entrance of an 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 to the Construction Official of the Township
of Cinnaminson for the conversion of adaptable to accessible entrances.
[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 Township's Affordable Housing Trust Fund in care
of the Township Treasurer who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriate earmarked.
(g)
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 most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures as approved by the Court and detailed herein.
(2) Regional income units shall be established for the region that the
Township is located within (i.e., Region 5) based on the median income
by household size, which shall be established by a regional weighted
average of the uncapped Section 8 income limits published by HUD.
To compute this regional income limit, the HUD determination of median
county income for a family of four is multiplied by the estimated
households within the county according to the most recent decennial
census. The resulting product for each county within the housing region
is summed. The sum is divided by the estimated total households from
the most recent decennial census in the Township's housing region.
This quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80% of the regional weighted average
median income for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income for a
family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than those for the
previous year.
(3) 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 rental units
shall be affordable to households earning no more than 52% of median
income.
(4) 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, provided that at least 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households, which very-low-income units shall be part of the low-income
requirement.
(5) 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 sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(6) In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, 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 1 1/2 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 4 1/2 person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(7) In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, 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.
(8) 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 homeowner
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.
(9) 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
size household, including an allowance for tenant-paid utilities,
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.
(10)
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.
(11)
The rents of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area. This increase
shall not exceed 9% in any one year. Rent increases for units constructed
pursuant to low-income housing tax credit regulations shall be indexed
pursuant to the regulations governing low-income housing tax credits.
[Amended 9-16-2019 by Ord. No. 2019-12]
A. Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B. Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by HUD for the Section 8 program.
[Amended 9-16-2019 by Ord. No. 2019-12]
In referring certified households to specific restricted units,
the administrative agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A. Provide an occupant for each bedroom;
B. Provide children of different sexes with separate bedrooms;
C. Provide separate bedrooms for parents and children; and
D. Prevent more than two persons from occupying a single bedroom.
[Amended 9-16-2019 by Ord. No. 2019-12]
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 for a period of at least 30 years, until Cinnaminson
takes action to release the unit from such requirements; prior to
such action, 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.
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 without the restrictions in place.
D. At the time of the initial sale of the unit, the initial 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 restrictions set forth in 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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
[Added 3-15-2006 by Ord.
No. 2006-7; amended 11-21-2016 by Ord. No. 2016-14; 9-16-2019 by Ord. No. 2019-12]
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 master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
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 anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See §
145-12.1, Capital improvements to ownership units.
[Added 3-1-2010 by Ord.
No. 2010-5; amended 9-16-2019 by Ord. No. 2019-12]
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 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. Notwithstanding the foregoing, the administrative agent may, upon
approval by the Township Committee and subject to the Court's
approval, permit a moderate-income purchaser to buy a low-income unit
if and only if the administrative agent can demonstrate that there
is an insufficient number of eligible low-income purchasers in the
housing region to permit prompt occupancy of the unit and all other
reasonable efforts to attract a low-income purchaser, including pricing
and financing incentives, have failed. Any such low-income unit that
is sold to a moderate-income household shall retain the required pricing
and pricing restrictions for a low-income unit.
C. A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the administrative
agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
D. 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 33% of the household's eligible monthly income.
[Added 11-21-2011 by Ord.
No. 2011-13; amended 9-16-2019 by Ord. No. 2019-12]
A. Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the administrative agent
for a determination, in writing, that the proposed indebtedness complies
with the provisions of this section, and the administrative agent
shall issue such determination prior to the owner incurring such indebtedness.
B. With the exception of First Purchase Money Mortgages, 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 the unit, as such price is determined by
the administrative agent in accordance with N.J.A.C. 5:80-26.6(b).
[Added 9-16-2019 by Ord.
No. 2019-12]
A. 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 made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B. Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the administrative
agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
administrative agent. Unless otherwise approved by the administrative
agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
[Added 9-16-2019 by Ord.
No. 2019-12]
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 for a period of at least 30 years, until Cinnaminson
takes action to release the unit from such requirements. Prior to
such action, 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.
(1)
Restricted rental units created as part of developments receiving
9% low income tax credits must comply with a control period of not
less than a thirty-year period.
(2)
Rehabilitation renter-occupied housing units that are improved
to code standards shall be subject to affordability controls for a
period of 10 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 Burlington. 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:
(1)
Sublease or assignment of the lease of the unit;
(2)
Sale or other voluntary transfer of the ownership of the unit;
or
(3)
The entry and enforcement of any judgment of foreclosure on
the property containing the unit.
[Added 9-16-2019 by Ord.
No. 2019-12]
A. A written lease shall be required for all restricted rental units,
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.
D. No rent control ordinance or other pricing restriction shall be applicable
to the market units in any development in which at least 15% of the
total number of dwelling units are restricted rental units in compliance
with this chapter.
[Added 9-16-2019 by Ord.
No. 2019-12]
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 the regional
median household income by household size.
(2)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of the regional
median household income by household size.
(3)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of the regional median
household income by household size.
B. The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
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 reliable anticipated third-party assistance
from an outside source, such as a family member, in a form acceptable
to the administrative agent and the owner of the unit.
C. The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsections
A(1) through
B(5) above with the administrative agent, who shall counsel the household on budgeting.
[Added 9-16-2019 by Ord.
No. 2019-12]
A. The Township of Cinnaminson shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Township's affordable housing program, including overseeing
the administration of affordability controls on the affordable units
and the affirmative marketing of available affordable units in accordance
with the Township's Affirmative Marketing Plan; fulfilling monitoring
and reporting requirements; and supervising administrative agent(s).
Cinnaminson shall adopt a resolution appointing the person to fulfill
the position of Municipal Housing Liaison. The Municipal Housing Liaison
shall be appointed by the governing body and may be a full- or part-time
municipal employee. The Municipal Housing Liaison shall be approved
by the Court and shall be duly qualified through a training program
sponsored by Affordable Housing Professionals of New Jersey before
assuming the duties of Municipal Housing Liaison.
B. The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Cinnaminson,
including the following responsibilities which may not be contracted
out to the administrative agent:
(1)
Serving as Cinnaminson's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents and interested households;
(2)
Monitoring the status of all restricted units in Cinnaminson's
Fair Share Plan;
(3)
Compiling, verifying, submitting and posting all monitoring
reports as required by the Court and by this chapter;
(4)
Coordinating meetings with affordable housing providers and
administrative agents, as needed; and
(5)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing at least
annually and more often as needed.
[Added 9-16-2019 by Ord.
No. 2019-12]
A. Subject to the approval of the Court, the Township of Cinnaminson
shall designate one or more administrative agent(s) to administer
and to affirmatively market the affordable units constructed in the
Township in accordance with UHAC and this chapter. An operating manual
for each affordable housing program shall be provided by the administrative
agent(s) to be adopted by resolution of the governing body and subject
to approval of the Court. The operating manual(s) shall be available
for public inspection in the office of the Township Clerk, in the
office of the Municipal Housing Liaison, and in the office(s) of the
administrative agent(s). The Municipal Housing Liaison shall supervise
the work of the administrative agent(s).
B. An administrative agent shall be an independent entity serving under
contract to and reporting to the municipality. The fees of the administrative
agent shall be paid by the owners of the affordable units for which
the services of the administrative agent are required. The administrative
agent shall perform the duties and responsibilities of an administrative
agent as set forth in UHAC, including those set forth in Sections
5:80-26.14, 16 and 18 thereof, which includes:
(1)
Affirmative marketing.
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township of Cinnaminson and the provisions of N.J.A.C. 5:80-26.15;
and
(b)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
(2)
Household certification.
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate-income unit;
(c)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(d)
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
(e)
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
(f)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township of Cinnaminson when referring households
for certification to affordable units.
(3)
Affordability controls.
(a)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(b)
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Burlington
County Register of Deeds or Burlington County Clerk's office
after the termination of the affordability controls for each restricted
unit;
(d)
Communicating with lenders regarding foreclosures; and
(e)
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)
Resales and rerentals.
(a)
Instituting and maintaining an effective means of communicating
information between owners and the administrative agent regarding
the availability of restricted units for resale or rerental; and
(b)
Instituting and maintaining an effective means of communicating
information to low- (or very-low-) and moderate-income households
regarding the availability of restricted units for resale or rerental.
(5)
Processing requests from unit owners.
(a)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
(b)
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air conditioning
systems;
(c)
Notifying the municipality of an owner's intent to sell
a restricted unit; and
(d)
Making determinations on requests by owners of restricted units
for hardship waivers.
(6)
Enforcement.
(a)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(b)
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
administrative agent;
(c)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the administrative agent where complaints of excess
rent or other charges can be made;
(d)
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
(e)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
(f)
Creating and publishing a written operating manual for each
affordable housing program administered by the administrative agent,
to be approved by the Township Committee and the Court, setting forth
procedures for administering the affordability controls.
(7)
Additional responsibilities:
(a)
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
(c)
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
[Added 9-16-2019 by Ord.
No. 2019-12]
A. The Township of Cinnaminson shall adopt, by resolution, an Affirmative
Marketing Plan, subject to approval of the Court, that is compliant
with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
B. The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
It is a continuing program that directs marketing activities toward
Housing Region 5 and is required to be followed throughout the period
of restriction.
C. The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 5, comprised
of Burlington, Camden and Gloucester Counties.
D. The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The administrative agent designated by
the Township of Cinnaminson shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
E. In implementing the Affirmative Marketing Plan, the administrative
agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F. The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the administrative agent shall consider
the use of language translations where appropriate.
G. The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
H. Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building in the municipality in which
the units are located; and the developer's rental office. Applications
shall be mailed to prospective applicants upon request.
I. In addition to other affirmative marketing strategies, the administrative
agent shall provide specific notice of the availability of affordable
housing units in Cinnaminson, and copies of the application forms,
to the following entities: Fair Share Housing Center, the New Jersey
State Conference of the NAACP, the Latino Action Network, Supportive
Housing Association, the New Jersey Housing Resource Center, the Southern
Burlington County Branch of the NAACP, Willingboro NAACP, Moorestown
Ecumenical Neighborhood Development (MEND), Lutheran Social Ministries
(LSM), and the Burlington County Community Action Program (BCCAP).
J. The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
[Added 9-16-2019 by Ord.
No. 2019-12]
A. Upon the occurrence of a breach of any of the regulations governing
an 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, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in 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(s) 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
adjudged 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 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
(b)
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Cinnaminson Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a 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 that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such 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- or moderate-income unit.
(a)
The 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 his
right to possession terminated as well as his 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 the full 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.
(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.
[Added 9-16-2019 by Ord.
No. 2019-12]
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed, in writing, with the Court.
[Added 8-20-2012 by Ord. No. 2012-18]
A. There is established a Down payment assistance program, funded by
developer fees, payable only from the Township's Housing Trust
Fund and administered through the Township of Cinnaminson affordable
housing program, for purchasers who seek to purchase low- or moderate-income
units as part of said program. The low or moderate units that are
being purchased under this program must be in full compliance with
all Uniform Housing Affordability Controls ("UHAC") regulations and
the rules adopted by the New Jersey Council on Affordable Housing
("COAH"). Prospective homeowners will not receive direct funds. The
assistance dollars will be supplied to the appropriate entity/entities.
The Cinnaminson down payment assistance program is implemented through
a down payment assistance loan that is documented in a repayment loan
agreement and secured by a down payment assistance program recapture
note and down payment assistance program mortgage in favor of the
Township that is executed by the purchaser/property owner. The loan
is interest free and must be repaid in full when the recipient sells
the property. The down payment assistance mortgage is a second mortgage
that is subordinate to the first purchase money mortgage that the
purchaser will secure from an institutional lender. In no event may
the combined amounts of both mortgages exceed the maximum amount of
mortgage indebtedness allowed for affordable units under UHAC or COAH's
regulations. A Cinnaminson Township down payment assistance loan is
not available to those individuals or households that have been awarded
down payment and/or closing cost assistance grants and/or loans from
any other governmental sources, including, but not limited to, Burlington
County's first-time homebuyer program.
B. Purchasers seeking a down payment assistance loan through this program
must make application to the Cinnaminson Township Affordable Housing
Liaison ("Housing Liaison"). The maximum amount of any loan shall
be $15,000, and the availability of funding is contingent upon the
sufficiency of funds in the Township's Housing Trust Fund. Approval
of a loan shall be as documented in a resolution adopted by the Township
Committee of the Township of Cinnaminson in a form substantially similar
to Appendix A hereto. Funding of the loan program shall automatically cease
should prior loans that have been made reach the amount reserved to
fund the program in the Township's COAH-approved trust account
spending plan. A copy of the loan application is attached as Appendix
B and can be obtained by applicants from the Housing Liaison
or may be downloaded from the Cinnaminson Township website. The Housing
Liaison maintains an office in the Cinnaminson Township Municipal
Building, 1621 Riverton Road, Cinnaminson, NJ 08077, [(856) 829-6000]
and may be reached during regular business hours.
C. The loan shall be documented and secured by the recipient's
execution and delivery of the following documents:
(1) Down payment assistance repayment loan agreement — Appendix
C hereto;
(2) Down payment assistance recapture mortgage note — Appendix
D hereto;
(3) Down payment assistance mortgage — Appendix E hereto.
D. The contents and terms, conditions and obligations of all Appendix
exhibits are incorporated by reference herein as if set forth herein
at length.
E. Qualification and eligibility for this program:
(1) Individuals/households must make an application with the Housing
Liaison and be precertified, meaning that applicant demonstrates to
the reasonable satisfaction of the Housing Liaison that there is a
very high likelihood that with the receipt of the loan provided herein
the applicant will be able to pay all of the required expenses related
to owning his affordable home.
(2) In order to ensure that interested affordable housing homebuyers
are able to demonstrate that they possess the required deposit prior
to executing an agreement to purchase an affordable unit, interested
applicants may submit loan applications prior to searching for a home.
(3) Qualified individuals/households must have incomes not exceeding
low or moderate income guidelines as applicable for Burlington County
per the New Jersey Fair Housing Act as periodically published and
updated by the New Jersey Department of Community Affairs.
(4) The home that is being purchased must be an affordable unit that
is being marketed for sale by the Township's administrative agent.
Applicants must contact the administrative agent to ascertain the
location and cost of all affordable units that are currently on the
market. applicants may do so prior to securing written confirmation
from the Township that a down payment assistance loan will be made
available to them.
(5) The home/unit to be purchased must meet HUD housing quality standards
as documented in a HUD-compliant home inspection report.
(6) Applicants must be deemed credit worthy by the Housing Liaison, and
the amount of the principal on the first purchase money mortgage must
not exceed three times the applicant's gross annual income. By
submitting a loan application, applicants automatically consent to
allowing the Housing Liaison to run a credit check and securing employment
verification. applicants will be responsible for paying for the credit
check.
(7) The Down payment assistance mortgage is a second mortgage that is
subordinate to the first purchase money mortgage that the purchaser
will apply for and secure. In no event may the combined amounts of
both mortgages exceed the maximum amount of mortgage indebtedness
allowed for affordable units under UHAC or COAH regulations.
(8) All loan recipients must occupy the property as their principal residence
and own no other real estate.
(9) All loan recipients, at their cost and expense, must attend a prepurchase
homebuyer education class administered by a HUD-certified housing
counseling agency prior to closing on an affordable housing unit.
The Housing Liaison will supply applicants with a list of HUD-certified
counseling agencies in the area, and applicants may select the counseling
agency that they wish to use. A certificate of completion from the
HUD-certified housing counseling agency must be presented to the Housing
Liaison before funds will be provided for down-payment assistance.
(10)
If the Township Committee determines that an applicant qualifies
for the loan of $15,000, the Township Committee will adopt a resolution
in the form of Appendix A which will be supplied by the Housing Liaison to the administrative
agent as evidence that the deposit is available when a contract of
sale is signed.
(11)
If awarded a loan the funds will be made available by the Township
at closing to the appropriate title company and/or attorney trust
account.
(12)
The Township's affordable housing administrative agent
handles and administers the sale and purchase of affordable housing
units in Cinnaminson. The loan award will expire if the applicant
does not execute an agreement to purchase an affordable unit within
six months of the date of the resolution confirming the loan award
and will expire immediately if the administrative agent determines
that the applicant fails to qualify to purchase the affordable unit
under applicable governmental regulations or due to inability to secure
first purchase money mortgage financing.
(13)
Individuals and/or households purchasing affordable homes shall
only be permitted to receive one down payment assistance loan. A down
payment assistance loan through the Cinnaminson program is not available
to individuals and/or households that have been awarded down payment
and/or closing cost assistance grants/loans from any other governmental
sources, including but not limited to, Burlington County's first-time
homebuyer program.
[Added 12-17-2012 by Ord. No. 2012-21]
The term "Housing Officer" as used in this chapter shall be
synonymous with the term "administrative agent" as defined in UHAC,
and the administrative agent's duties, responsibilities and obligations
shall be as set forth in N.J.A.C. 5:80-26.14. The administrative agent's
fees and charges shall be paid for by the developer, property manager,
affordable housing sponsor and/or property owner utilizing the agent's
services.
[Added 8-19-2019 by Ord.
No. 2019-11]
A. Pursuant to directives of the Superior Court in the third round affordable
housing proceedings encaptioned In the Matter of the Township of Cinnaminson,
Docket No. BUR-L-450-14 (Mount Laurel), if the Township or its land
use boards permit, either through future rezonings or the grant of
variances, multifamily or single-family attached development that
is "approvable" and "developable" as defined in N.J.A.C. 5:93-1 et
seq. at a gross density of six units to the acre or more, or permits
an increase in the already permitted density of a multifamily or single-family
attached zone or development resulting in five or more net new dwelling
units on the property, the Township and/or its land use boards shall
require that an appropriate percentage of the residential units shall
be set aside for low- and moderate-income households in accordance
with N.J.A.C. 5:93-1 et seq. This requirement shall apply to any multifamily
or single-family attached residential development, including the residential
portion of a mixed-use project which consists of five or more net
new residential units, whether permitted by a zoning amendment, a
variance granted by the Township's land use boards, or adoption
of a redevelopment plan or amended redevelopment plan in areas in
need of redevelopment or rehabilitation. Nothing herein precludes
the Township from imposing an affordable housing set-aside in a development
not required to have a set-aside pursuant to the provisions hereof
consistent with N.J.S.A. 52:27D-311(h) and other applicable law. Consistent
with N.J.A.C. 5:93-1 et seq., for inclusionary projects in which low- and moderate-income
units are to be offered for sale, the appropriate set-aside percentage
is 20%; for inclusionary projects for which the low- and moderate-income
units are to be offered for rent, the appropriate set-aside percentage
is 15% requirement does not create any entitlement for a property
owner or applicant for a zoning amendment, variance, or adoption of
a redevelopment plan or amended redevelopment plan in areas in need
of redevelopment or rehabilitation, or for approval of any particular
proposed project. This requirement does not apply to any sites or
specific zones otherwise identified in judicially approved settlement
agreements under Docket No. BUR-L-450-14 (Mount Laurel) or the Township's
judicially approved third round Housing Element and Fair Share Plan
(collectively "Compliance Plan"), for which density and set-aside
standards shall be governed by the specific standards set forth therein.
A property shall not be permitted to be subdivided so as to avoid
meeting the above affordable housing requirement.