[HISTORY: Adopted by the Township Committee of the Township
of Hanover 11-14-2019 by Ord. No.
49-19. Amendments noted where applicable.]
A.Â
This chapter is intended to assure that very-low, low-, and moderate-income
units ("affordable units") are created with controls on affordability
and that very-low, low-, and moderate-income households shall occupy
these units. This chapter shall apply except where inconsistent with
applicable law.
B.Â
The Township of Hanover Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. (hereinafter "Fair Share Plan"). The Fair Share Plan
was endorsed by the Township Committee. The Fair Share Plan describes
how the Township of Hanover shall address its fair share of very-low-,
low-, and moderate-income housing as documented in the Fair Share
Plan itself, the Settlement Agreement entered into between the Township
and Fair Share Housing Center ("FSHC") last executed on March 7, 2019
(hereinafter "FSHC Settlement Agreement"), and the Superior Court
Order approving same, which was entered by the Court on May 14, 2019,
after a properly noticed fairness hearing was held on May 10, 2019.
C.Â
This chapter implements and incorporates the adopted and endorsed
Housing Element and Fair Share Plan and addresses the requirements
of N.J.A.C. 5:93-1 et seq.,[1] as amended and supplemented, N.J.A.C. 5:80-26.1 et seq.,
as amended and supplemented, and the New Jersey Fair Housing Act of
1985, as amended.[2]
D.Â
The Township of Hanover shall track the status of the implementation
of the Fair Share Plan.
The Township of Hanover shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Superior Court-approved Housing Element and Fair Share Plan:
A.Â
Beginning one year after the entry of the Township's Round 3 Judgment
of Compliance and Repose, and on every anniversary of that date through
2025, the Township shall provide an annual report 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 report 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.Â
Beginning one year after the entry of the Township's Round 3 Judgment
of Compliance and Repose, and on every anniversary of that date through
2025, the Township agrees to provide an annual report 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 Superior
Court Appointed Special Master and FSHC.
C.Â
The Fair Housing Act includes two provisions regarding action to
be taken by the Township during its ten-year repose period. The Township
will comply with those provisions as follows:
(1)Â
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Township will post
on its municipal website, with a copy provided to Fair Share Housing
Center, a status report as to its implementation of its plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether the mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the Township, with a copy
to Fair Share Housing Center, regarding whether any sites no longer
present a realistic opportunity and should be replaced and whether
the mechanisms to meet unmet need should be revised or supplemented.
Any interested party may by motion request a hearing before the Superior
Court regarding these issues.
(2)Â
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 Township's Judgement of Compliance and Repose, and
every third year thereafter, the Township will post on its municipal
website, with a copy 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 Township and Fair Share Housing Center on the issue of whether
the Township has complied with its very-low-income housing obligation
under the terms of this settlement.
(3)Â
In addition to the foregoing postings, the Township may also elect
to file copies of its reports with COAH or its successor agency at
the state level.
The following terms when used in this chapter shall have the
meanings given in this chapter:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.), as has been subsequently amended.
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity designated by the Township responsible for the
administration of affordable units in accordance with this chapter,
applicable COAH regulations and the Uniform Housing Affordability
Controls (UHAC) (N.J.A.C. 5:80-26.1 et seq.).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; 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.
A housing development all or a portion of which consists
of restricted units.
A development included in the Township's Fair Share Plan,
and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in the Township's Fair Share Plan prepared
or implemented to address the Township's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC Settlement Agreement,
or an order of the Superior Court.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
The development has been designated by the Secretary of the
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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A 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 boardinghomes 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.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an administrative
agent as a very-low-income household, low-income household or moderate-income
household.
The New Jersey Council on Affordable Housing.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, entity, company or
corporation that is the legal or beneficial owner or owners of a lot
or any land proposed to be included in a proposed development including
the holder of an option to contract or purchase, or other person having
an enforceable proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.[1]
Persons, whether related or unrelated, living together in
a single dwelling unit, with common access to and common use of all
living and eating areas and all areas and facilities for the preparation
and serving of food within the dwelling unit.
A development containing both affordable units and market-rate
units. This term includes, but is not necessarily limited to: new
construction, the conversion of a nonresidential structure to residential
and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building, which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by the Department.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Hanover.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class A
beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The 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 the Department's adopted Regional Income Limits published
annually by COAH, a successor entity or established by the Court.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
93, Substantive Rules of the New Jersey Council on Affordable Housing
for the Period Beginning June 6, 1994, expired on 10-16-2016.
A.Â
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Hanover pursuant
to the Township's most recently adopted Housing Element and Fair Share
Plan.
B.Â
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.
The Township of Hanover and FSHC have agreed that the Township's
Round 3 (1999-2025) indigenous need rehabilitation obligation is six
units. The Township will work with Morris County and/or hire a separate
entity to rehabilitate units in the Township to address the Township's
rehabilitation obligation. Any such rehabilitation programs will update
and renovate deficient housing units occupied by low- and moderate-income
households such that, after rehabilitation, these units will comply
with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
A.Â
All rehabilitated rental and owner-occupied units shall remain affordable
to low- and moderate-income households for a period of 10 years (the
control period). For owner-occupied units, the control period will
be enforced with a lien and for renter-occupied units the control
period will be enforced with a deed restriction.
B.Â
The Township of Hanover shall dedicate an average of at least $10,000
for each unit to be rehabilitated through this program, reflecting
the minimum hard cost of rehabilitation for each unit.
C.Â
Units in the rehabilitation programs shall be exempt from N.J.A.C.
5:93-9[1] and UHAC requirements, but shall be administered in accordance
with the following:
(1)Â
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter- occupied unit is rerented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(2)Â
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(3)Â
Rents in rehabilitated units may increase annually as per § 72-9D(10)(b).
(4)Â
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9[2] and UHAC, except that households in owner-occupied units
shall be exempt from the regional asset limit.
[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
93, Substantive Rules of the New Jersey Council on Affordable Housing
for the Period Beginning June 6, 1994, expired on 10-16-2016.
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
93, Substantive Rules of the New Jersey Council on Affordable Housing
for the Period Beginning June 6, 1994, expired on 10-16-2016.
A.Â
It is the purpose of this program to help meet the Township of Hanover's
fair share housing obligation through the subsidization of up to 10
accessory apartments in the Township for occupancy by very-low-, low-,
or moderate-income households.
B.Â
All accessory apartments shall meet the following conditions:
(1)Â
Provided the units are affordable to very-low-, low-, or moderate-income
households, accessory apartments shall be permitted in principal or
accessory buildings in all residential zones according to the applicable
area, yard, and bulk requirements.
(2)Â
Accessory apartments shall be developed as very-low-income, low-income,
or moderate-income units.
(3)Â
Accessory apartments shall comply with all applicable statutes and
regulations of the State of New Jersey in addition to all building
codes.
(4)Â
At the time of initial occupancy of the unit and for at least 10
years thereafter, the accessory apartment shall be rented only to
a household which is either a very-low-, low-, or moderate-income
household.
(5)Â
Rents of accessory apartments shall be affordable to very-low-, low-,
or moderate-income households as per COAH and UHAC regulations.
(6)Â
There shall be a recorded deed or declaration of covenants and restrictions
applied to the property upon which the accessory apartment is located
running with the land and limiting its subsequent rental or sale of
the unit and the accessory apartment. The deed or declarations shall
be reviewed and approved by the Township Attorney prior to recording;
and such document must be recorded prior to the issuance of a building
permit or, if no building permit needs to be issued, prior to the
issuance of the certificate of occupancy.
(7)Â
The appropriate utility authority must certify that there is water
and sewer infrastructure with sufficient capacity to serve the proposed
accessory apartment. Where the proposed location is served by an individual
well and/or septic system, the additional capacity necessitated by
the new unit must meet the appropriate NJDEP standards.
(8)Â
The Township of Hanover accessory apartment program shall not restrict
the number of bedrooms in any accessory apartment.
(9)Â
No accessory apartment created as a result of this chapter or these
regulations shall exceed the gross floor area of the existing principal
dwelling on the lot.
C.Â
The maximum number of creditable accessory apartments shall be equal
to no more than 10 (additional units may be approved by COAH or its
successor agency or the court if the municipality has demonstrated
successful completion of its accessory apartment program.).
D.Â
The Township of Hanover shall designate an administrative entity
to administer the accessory apartment program that shall have the
following responsibilities:
(1)Â
The administrative agent shall administer the accessory apartment
program, including advertising, income qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the affordable accessory
apartment program in accordance with the UHAC.
(2)Â
The administrative entity shall only deny an application for an accessory
apartment if the project is not in conformance with COAH's requirements
and/or the provisions of this section/chapter. All denials shall be
in writing with the reasons clearly stated.
(3)Â
The Township of Hanover shall provide at least $50,000 to subsidize
the creation of each very-low-income accessory apartment, at least
$40,000 to subsidize the creation of each low-income accessory apartment,
and at least $30,000 to subsidize the creation of each moderate-income
accessory apartment. Subsidy may be used to fund actual construction
costs and/or to provide compensation for reduced rental rates.
(4)Â
Property owners wishing to apply to create an accessory apartment
shall submit to the administrative entity:
(a)Â
A sketch of floor plan(s) showing the location, size and relationship
of both the accessory apartment and the primary dwelling within the
building or in another structure;
(b)Â
Rough elevations showing the modifications of any exterior building
facade to which changes are proposed; and
(c)Â
A site development sketch showing the location of the existing
dwelling and other existing buildings; all property lines; proposed
addition, if any, along with the minimum building setback lines; the
required parking spaces for both dwelling units; and any man-made
conditions which might affect construction.
A.Â
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(1)Â
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)Â
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter
93, Substantive Rules of the New Jersey Council on Affordable Housing
for the Period Beginning June 6, 1994, expired on 10-16-2016.
B.Â
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.
C.Â
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.
A.Â
Maximum densities and minimum set-asides. The maximum permitted densities and minimum required affordable housing set-asides for inclusionary development shall be as set forth for each individual inclusionary zone district in Chapter 166, Land Use and Development, of the Township Code.
B.Â
Phasing. In inclusionary developments, the following schedule shall
be followed:
|
Maximum Percentage of Market-Rate
Units Completed
|
Minimum Percentage of Affordable
Units Completed
|
|---|---|
|
25
|
0
|
|
25+1
|
10
|
|
50
|
50
|
|
75
|
75
|
|
90
|
100
|
A.Â
Low/moderate split and bedroom distribution of affordable housing
units:
(1)Â
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 within each bedroom distribution
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. At least 50% of the very-low-income
units must be available to families.
(2)Â
At least 25% of the obligation shall be met through rental units,
including at least half in rental units available to families.
(3)Â
A maximum of 25% of the Township's obligation may be met with age
restricted units. At least half of all affordable units in the Township's
plan shall be available to families.
(4)Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units including that 13% shall be very-low income.
(5)Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)Â
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer and the Township.
(6)Â
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.Â
Accessibility requirements:
(1)Â
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)Â
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)Â
An adaptable toilet and bathing facility on the first floor;
and
(b)Â
An adaptable kitchen on the first floor; and
(c)Â
An interior accessible route of travel on the first floor; and
(d)Â
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)Â
If all of the foregoing requirements in Subsection B(2)(a) through (d) above cannot 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 Subsection 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)Â
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,[1] or evidence that Hanover has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[1]Â
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]Â
To this end, the builder of restricted units shall deposit funds
into the Township of Hanover's Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]Â
The funds deposited under Subsection B(2)(f) above shall be used by the Township of Hanover 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]Â
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Township
of Hanover for the conversion of adaptable to accessible entrances.
[5]Â
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,[2] 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 Chief Financial Officer who shall ensure that
the funds are deposited into the Affordable Housing Trust Fund and
appropriately earmarked.
[2]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[1]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
(g)Â
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.Â
Design:
(1)Â
In inclusionary developments, very-low, low- and moderate-income
units shall be integrated with the market units to the extent possible.
(2)Â
In inclusionary developments, very-low, low- and moderate-income
units shall have access to all of the same common elements and facilities
as the market units.
D.Â
Maximum rents and sales prices:
(1)Â
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 by the
Superior Court.
(2)Â
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.
(3)Â
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, earning 30% or less of the regional median household income,
which very-low-income units shall be part of the low-income requirement.
(4)Â
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.
(5)Â
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)Â
A studio shall be affordable to a one-person household;
(b)Â
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)Â
A two-bedroom unit shall be affordable to a three-person household;
(d)Â
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)Â
A four-bedroom unit shall be affordable to a six-person household.
(6)Â
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:
(7)Â
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,
homeowners' and private mortgage insurance and condominium or homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)Â
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.
(9)Â
Income limits for all units that are part of the Township's Housing
Element and Fair Share Plan, and for which income limits are not already
established through a federal program exempted from the Uniform Housing
Affordability Controls pursuant to N.J.A.C. 5:80-26.1, shall be updated
by the Township annually within 30 days of the publication of determinations
of median income by HUD as follows:
(a)Â
The income limit for a moderate-income unit for a household
of four shall be 80% of the HUD determination of the median income
for COAH Region 2 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 median income for COAH Region 2 for a family of four. The income
limit for a very-low-income unit for a household of four shall be
30% of the HUD determination of the median income for COAH Region
2 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 the previous
year.
(10)Â
In establishing sale prices and rents of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the regional income limits established by the Council:
(a)Â
The price of owner-occupied very-low, low- and moderate-income units may increase annually based on the percentage increase in the regional median income limit for each housing region determined pursuant to Subsection D(9). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
(b)Â
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 Central New Jersey Area, upon
its publication for the prior calendar year. This increase shall not
exceed 9% in any one year. Rents for units constructed pursuant to
low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
A.Â
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.Â
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 the NJDCA for its Section 8 program.
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.Â
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 Hanover Township
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.Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.Â
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.Â
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.Â
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.Â
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.
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.Â
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
B.Â
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.Â
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners', association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers, unless the master deed for the inclusionary
project was executed prior to the enactment of UHAC.
D.Â
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.
A.Â
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.Â
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, homeowners' and private mortgage insurance
and condominium or homeowners' association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
A.Â
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 chapter, and the administrative agent
shall issue such determination prior to the owner incurring such indebtedness.
B.Â
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).
A.Â
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.Â
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.
A.Â
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 Hanover Township
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.
B.Â
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 Morris. 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.Â
A restricted rental unit shall remain subject to the affordability
controls described in this chapter despite the occurrence of any of
the following events:
A.Â
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.Â
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.Â
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 developer and/or landlord or to the administrative
agent. If the fees are paid to the administrative agent, they are
to be applied to the costs of administering the controls applicable
to the unit as set forth in this chapter.
D.Â
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable 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.
A.Â
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)Â
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)Â
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)Â
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.Â
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)Â
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)Â
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)Â
The household is currently in substandard or overcrowded living conditions;
(4)Â
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)Â
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.
A.Â
The administrative agent shall secure all information from applicant
households necessary and appropriate to determine that restricted
units are occupied by properly sized households with appropriate low-
or moderate-income levels, in accordance with N.J.A.C. 5:80-26.16.
No household may be referred to a restricted unit, or may receive
a commitment with respect to a restricted unit, unless that household
has received a signed and dated certification, as set forth in N.J.A.C.
5:80-26.16, and has executed a certificate in the form set forth in
Appendices J or K to N.J.A.C. 5:80-26.16, as applicable.
B.Â
The administrative agent shall prepare a standard form of certification
and shall sign and date one for each household when certified. An
initial certification shall be valid for no more than 180 days unless
a valid contract for sale or lease has been executed within that time
period. In this event, certifications shall be valid until such time
as the contract for sale or lease is ruled invalid and no occupancy
has occurred. Certifications may be renewed in writing at the request
of a certified household for an additional period of 180 days at the
discretion of the administrative agent.
C.Â
The administrative agent shall employ a random selection process
when referring households for certification to affordable units.
The administration and oversight of Hanover Township's affordable housing program shall be the responsibility of the Municipal Housing Liaison (MHL), pursuant to Chapter 47, Article VII, of the Township Code, as may be amended and supplemented. To assist the Township in defraying any and all administrative costs associated with the Township's affordable housing program, 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. In the case of resales, the seller of a low- or moderate-income housing unit shall pay the administrative agent for the Township the sum of 1.25% of the sale price upon resale of the unit.
A.Â
The Township of Hanover shall adopt by resolution an affirmative
marketing plan that is compliant with N.J.A.C. 5:80-26.15, as may
be amended and supplemented.
B.Â
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 2 and is required to be followed throughout the period
of restriction.
C.Â
The Township 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 Hanover shall prepare a project-specific affirmative marketing
plan consistent with the Township's adopted affirmative marketing
plan, and shall submit the proposed affirmative marketing plan to
the Township's Municipal Housing Liaison for review and approval.
The administrative agent shall assure the affirmative marketing of
all affordable units consistent with the Affirmative marketing plan
for the township.
D.Â
In implementing the affirmative marketing plan, the administrative
agent shall provide a list of counseling services to very-low, low-,
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
E.Â
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.
F.Â
The affirmative marketing process for available affordable units
shall begin at least 120 days prior to the expected date of occupancy.
G.Â
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;
and the municipal building in which the units are located; and the
developer's rental office. Applications shall be mailed to prospective
applicants upon request.
H.Â
The following entities shall be notified of the availability of affordable
housing units in the Township of Hanover: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Morris County Chapter of the NAACP, Newark NAACP, East Orange
NAACP, Housing Partnership for Morris County, Community Access Unlimited,
Inc., Northwest New Jersey Community Action Program, Inc. (NORWESCAP),
Homeless Solutions of Morristown, and the Supportive Housing Association.
I.Â
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township of Hanover.
A.Â
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
B.Â
After providing written notice of a violation to an owner, developer
or tenant of an affordable unit and advising the owner, developer
or tenant of the penalties for such violations, the municipality may
take the following action against the owner, developer or tenant for
any violation that remains uncured for a period of 60 days after service
of the written notice:
(1)Â
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
(a)Â
A fine of not more than $500 per day or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)Â
In the case of an owner who has rented their affordable unit
in violation of the regulations governing affordable housing units,
payment into the Township's Affordable Housing Trust Fund of the gross
amount of rent illegally collected;
(c)Â
In the case of an owner who has rented their affordable 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)Â
The municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any judgment shall be enforceable as if the same were a judgment of
default of the first purchase money mortgage and shall constitute
a lien against the affordable unit.
(a)Â
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the affordable
unit of the violating owner shall be sold at a sale price which is
not less than the amount necessary to fully satisfy and pay off any
first purchase money mortgage and prior liens and the costs of the
enforcement proceedings incurred by the municipality, including attorney's
fees. The violating owner shall have the right to possession terminated
as well as the title conveyed pursuant to the Sheriff's sale.
(b)Â
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 affordable unit. The excess, if any, shall be applied to
reimburse the municipality for any and all costs and expenses incurred
in connection with either the court action resulting in the judgment
of violation or the Sheriff's sale. In the event that the proceeds
from the Sheriff's sale are insufficient to reimburse the municipality
in full as aforesaid, the violating owner shall be personally responsible
for and to the extent of such deficiency, in addition to any and all
costs incurred by the municipality in connection with collecting such
deficiency. In the event that a surplus remains after satisfying all
of the above, such surplus, if any, shall be placed in escrow by the
municipality for the owner and shall be held in such escrow for a
maximum period of two years or until such earlier time as the owner
shall make a claim with the municipality for such. Failure of the
owner to claim such balance within the two-year period shall automatically
result in a forfeiture of such balance to the municipality. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the municipality, whether such balance
shall be paid to the owner or forfeited to the municipality.
(c)Â
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 affordable 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)Â
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 affordable
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 affordable 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)Â
Failure of the affordable 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 affordable unit as permitted
by the regulations governing affordable housing units.
(f)Â
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.
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed in writing with the Superior
Court, COAH, or a successor entity.
