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Town of Secaucus, NJ
Hudson County
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[Amended 7-24-12 by Ord. No. 2012-27]
The purpose of this Article is to implement the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26.1 et seq.) and the regulations of the New Jersey Department of Community Affairs (N.J.A.C. 5:97-1 et seq.), as they may be amended or superseded. The ordinance is designed to implement the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.) by assuring that affordable housing created under the Act is occupied by low- and moderate-income households for the appropriate period of time. The words, phrases, and terms herein and in Article VII shall be interpreted to have the same meanings and usages as in the Act and related regulations. It is the further purpose of this Article to regulate the development and management of low- and moderate-income housing units constructed in compliance with the Housing Element and Fair Share Plan of the Master Plan of the Town of Secaucus as it may be adopted or superseded. Projects utilizing Federal Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code, units that receive Balanced Housing funds under the Agency's Home Express program or to units receiving assistance under the Federal HOME program, 24 C.F.R. § 92.252(e), § 92.254(a)(4); HUD 202 program, 24 C.F.R. Part 891; HUD 811 program, 24 C.F.R. Part 890; HUD HOPE VI program; or Federal Home Loan Bank, Affordable Housing Program, 12 C.F.R. Part 60 shall adhere to the regulations of their respective programs.
[Added 7-24-12 by Ord. No. 2012-12]
Former Section 19-41, Leased Housing Corporation, previously codified herein and containing portions of Ordinance Nos. 92-42, 95-10, 96-17 and 2006-11 was repealed in its entirety by Ord. No. 2012-27.
A. 
There is hereby created the Affordable Housing Board ("the Board") of the Town of Secaucus to monitor the compliance of the municipality in providing housing for low- and moderate-income families in accordance with the New Jersey Fair Housing Act and associated regulations.
B. 
The Affordable Housing Board shall consist of six members, one of whom shall be a member of the Secaucus Town Council, and two alternative members, all of whom shall be appointed by the Town Council in accordance with Section 19-41C, hereinbelow. The Affordable Housing Board shall be broadly representative of the citizens of the Town. The Town Council member on the Affordable Housing Board shall be a nonvoting member and shall function as the liaison to the Town Council.
C. 
The terms of office of Board members shall be as follows:
(1) 
Two Board members shall be appointed to an initial term ending on December 31, 2012; and
(2) 
Two Board members shall be appointed to an initial term ending on December 31, 2013; and
(3) 
One Board member shall be appointed to an initial term ending on December 31, 2014; and
(4) 
One alternate Board member shall be appointed to an initial term ending on December 31, 2012 and shall be known as Alternate 1; and
(5) 
One alternate Board member shall be appointed to an initial term ending on December 31, 2013 and shall be known as Alternate 2.
(6) 
The initial term of office for the member of the Board who is also a member of the Town Council shall be until December 31, 2012 and then thereafter for a one year term ending on December 31 of the year so appointed.
(7) 
The term of office for all voting members and alternate members of the Board, following their initial term, shall thereafter be three years, staggered, with reappointment at the pleasure of the Town Council. The appointments shall be made in such a manner that the terms of approximately 1/3 of the members shall expire each year.
D. 
Procedures of the Affordable Housing Board.
(1) 
Attendance by three voting members shall constitute a quorum. Passage of any motion shall require an affirmative vote by a majority of the voting members present. Alternate Affordable Housing Board members may participate in all matters before the Board but may not vote except in the absence or disqualification of a regular member. A vote shall not be delayed so that a regular member may vote instead of an alternate member. In the event only one alternate member is required to reach the authorized full voting membership of the Board, Alternate 1 shall vote.
(2) 
The Affordable Housing Board shall elect a Chair and Vice-Chair from among its regular members. Their terms of office shall be for one year and they shall be eligible for re-election. The Board may also elect a Secretary, who need not be a member of the Board, and it may create and fill such other offices as it shall determine are appropriate and necessary to achieve the objectives of the Board. The Board may employ or contract for and fix the compensation of such experts and other staff as it deems necessary, provided such obligations do not exceed the funds it has available for such use.
(3) 
The Town Council may remove any member of the Affordable Housing Board for cause on written charges served upon the member and after a hearing thereon, at which time such member shall be entitled to be heard, either in person or represented by Counsel. A vacancy on the Board occurring otherwise than the expiration of the term shall be filled for the unexpired term in the same manner as an original appointment by the Town Council.
E. 
Powers and duties. The Affordable Housing Board is hereby granted and shall have and exercise the following powers:
(1) 
Review with the assistance of the Administrator, regulations pertaining to the sale and rental of affordable housing units.
(2) 
With the assistance of the Administrator, prepare amendments and additions to regulations as it deems necessary or appropriate to implement the purpose of this Article. Such amendments and additions shall not become effective until approved by the Town Council by resolution or ordinance, as the case may be.
(3) 
Hold hearings upon notice to adjudicate the complaints of developers or applicants, owners and renters if the developer, applicant, owner or renter is not satisfied with the rulings of the Administrator. In matters involving a hearing, the Administrator shall give 10 days written notice to all parties involved and shall give all interested parties an opportunity to be heard.
(4) 
With the assistance of the Administrator, review requests from and to federal, state, county or local agencies regarding funding or applications for funding.
(5) 
With the assistance of the Administrator, make recommendations to the Town Council regarding how town funds or funds collected from developer contributions for affordable housing should be spent and propose priorities for such expenditures.
(6) 
Review all Affirmative Marketing Plans submitted by the Administrator required per N.J.A.C. 5:80-26.15.
(7) 
Administer all resale and rerental transactions as per §§ 19-50 through -53 of this Article.
[Amended 7-24-12 by Ord. No. 2012-27]
A. 
The Town Council shall appoint an Affordable Housing Administrator (the Administrator) to monitor sales and resales of affordable housing units. The Administrator may, but is not required to be, the Municipal Housing Liaison or Administrative Agent of the municipality pursuant to N.J.A.C. 5:80-26.14.
[Amended 4-11-95 by Ord. No. 95-10]
B. 
The Administrator shall monitor the designated Administrative Agent of the developer in the initial sales and rental transactions for low- and moderate-income dwellings in accordance with N.J.A.C. 5:80-26.14, as it may be amended or superseded. The developer's administrative agent shall have all of responsibilities as put forth in this rule. After the initial sales and rental transactions, the Administrator shall monitor, if such person is not the municipality's Administrative Agent, the activities of the Administrative Agent for any re-sales or rerentals. If the Administrator is the Administrative Agent for the municipality, then he or she shall assume all of the duties and responsibilities set forth in N.J.A.C. 5:80-26.14 following the initial renting, sales and occupancy of low- and moderate-income dwellings. The affordability controls set forth in this chapter shall be administered and enforced by the Administrative Agent. The primary responsibility of the Administrative Agent shall be to ensure that the restricted units are sold or rented, as applicable, only to low- and moderate-income households in accordance with the Fair Housing Act.
[Amended 4-11-95 by Ord. No. 95-10]
C. 
The Administrator Agent may delegate his or her duties as the administrative agent to the Housing Affordability Service or other experienced administrative agent approved by the NJ Department of Community Affairs or the NJ Housing Mortgage Finance Agency for the administration of affordability controls pursuant to the Fair Housing Act with the prior approval of the Town Council upon advice of the Affordable Housing Board.
[Amended 4-11-95 by Ord. No. 95-10]
D. 
The Administrator may charge a reasonable fee to program participants for the administration of the affordability controls program.
E. 
The Administrative Agent, whether the Administrator, developer's agent, or a delegated agent pursuant to § 19-42C, shall have the responsibility to income qualify low and moderate-income households, to place income eligible households in low- and moderate-income units upon initial occupancy, to provide for the initial occupancy of low- and moderate-income units with income qualified households, to continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls, to assist with advertising and outreach to low- and moderate-income households, and to enforce the terms of the deed restriction and mortgage loan. The Administrative Agent shall 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.
F. 
The Town Council shall yearly appoint a Municipal Housing Liaison, who shall be a municipal employee, to act as liaison between the NJ Department of Community Affairs or its successor agency and the municipality. The municipal liaison shall coordinate his or her activities with the Administrator and Administrative Agent to ensure the accurate tracking of the progress of affordable housing in the municipality, direct inquiries regarding affordable housing from the public to the appropriate official or agency, and complying with affordable housing monitoring and reporting requirements of the state.
G. 
In order to ensure an orderly transfer of control responsibility from a municipality to an administrative agent, from one administrative agent to another administrative agent, or other transfer, the requirements as set forth in N.J.A.C. 5:80-26.17 shall apply as are necessary before or during the transition. The Administrative Agent's enforcement responsibility for implementing such practices and procedures shall not be delegated or otherwise transferred to any other party, except to a successor administrative agent.
H. 
By accepting state funds for affordable housing purposes, or by submitting to the jurisdiction of the NJ Department of Community Affairs or its successor agency, Secaucus shall be deemed to have delegated to the Administrative Agent the day-to-day responsibility for implementing practices and procedures designated to ensure effective compliance with the controls set forth in this Article. The Town of Secaucus, however, shall retain the ultimate responsibility for ensuring effective compliance with the requirements as set forth in the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26.1, et seq.).
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
The developer of low- and moderate-income housing units shall submit to the Affordable Housing Board a description of the means to be used to insure that the required low- and moderate-income units are sold or rented only to low- and moderate-income households for a period of not less than 30 years. In addition to such description, actual samples of language to be included in the covenants restricting such units to low- and moderate-income households and to such future households upon resale or rerenting shall be submitted.
[Amended 7-24-12 by Ord. No. 2012-27]
A. 
All developers with sites identified for affordable housing pursuant to the most recent Housing Element and Fair Share Plan adopted by the Planning Board and Town Council of the Town of Secaucus, according to their respective duties, shall provide affordable housing units in accordance with the plan. All development that falls within the time period of the present round of affordable housing obligation shall construct units, pay a development fee, or pay a fee in lieu of construction in accordance with this chapter.
B. 
Any developer of dwellings units in Secaucus other than single-family detached, single-family semi-detached and duplex types shall be required to provide for affordable housing in the same manner as required by the New Jersey Meadowlands Commission pursuant to N.J.S.A. 52:27D-329.9.
[Amended 7-27-12 by Ord. No. 2012-27]
A. 
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units and the remainder may be moderate-income units.
B. 
Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:
(1) 
The combined number of efficiency and one-bedroom units is no greater than 20% of the total low- and moderate-income units;
(2) 
At least 30% of all low- and moderate-income units are two-bedroom units;
(3) 
At least 20 percent of all low- and moderate-income units are three-bedroom units; and
(4) 
The remainder, if any, may be allocated at the discretion of the developer.
C. 
Age-restricted low- and moderate-income units may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the affordable development. The standard may be met by creating all one-bedroom units or by creating a two-bedroom unit for each efficiency unit.
D. 
Municipalities shall establish by ordinance that the maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60% of median income. Average rent for low- and moderate-income units shall be affordable to households earning no more than 52% of median income. 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 10% of all low-and moderate-income units shall be affordable to households earning no more than 35% of median income.
E. 
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. Each affordable development must achieve an affordability average of fifty percent (55%) for restricted ownership units. In achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type.
Former Section 19-46, Bedroom Distribution, previously codified herein was incorporated into Section 19-45, Affordability Controls by Ordinance No. 2012-27.
A. 
Affordable units shall be situated on the development tract in locations no less desirable than market priced dwelling units within the development and shall be equally accessible to common open space, community facilities and shopping facilities.
B. 
The facade of an affordable housing unit shall be indistinguishable from those of market units in terms of the use of exterior materials, windows, doors, reveal, roof pitch, color, or other material. Affordable housing units shall be interspersed with market rate housing to the greatest extent possible.
C. 
Affordable units shall utilize the same type of heating source as market units within the affordable development.
Final site plan approval shall be contingent upon the development, whether if developed in one stage or in two or more stages, meeting the following phasing schedule:
Minimum Percentage of Low- and Moderate-Income Units Completed
Percentage of Market Housing Units Completed
0
25
10
25 + 1 unit
50
50
75
75
100
90
—
100
A. 
The Administrator's office shall be open to take applications at specified times during the week as advertised. The administrative agent's staff shall interview all perspective applicants to explain the regulations and policies associated with each development and the Town's low- and moderate-income housing program in general.
B. 
Applications shall be accepted only if submitted on an application form prepared and/or approved by the Administrator. Applications shall be completely filled out and notarized. Knowingly or intentionally making any false statement on a form shall be grounds for disqualifying an applicant even if the applicant is otherwise eligible. The following information shall be required:
(1) 
A copy of IRS Form 1040A or 1040EZ (Tax Computation Form) for each of the three years prior to the date of the application.
(2) 
A letter from all employers stating present annual income or four consecutive paystubs dated within 120 days of the interview date.
(3) 
A letter or appropriate reporting form verifying benefits, including but not limited to, social security or pension.
(4) 
A letter or appropriate reporting form verifying any other sources of income claimed by the applicant household.
(5) 
Reports that verify income from assets to be submitted by banks or other financial institutions managing trust funds, money market accounts, stocks or bonds.
(6) 
Reports that verify assets that do not earn regular income such as real estate and savings with delayed earnings provisions.
The developer's administrative agent or the Administrator, as the case may be, shall secure all information from applicant households necessary and appropriate to determine that the restricted units are occupied by properly sized households with appropriate low- or moderate-income levels. 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, dated, and executed certification, as set forth in the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26.16). The developer's administrative agent shall use the standard form of certification prepared by the Administrator and shall sign and date one for each household when certified. An initial certification shall be valid for no more than 180 days. Certifications may be renewed, at the discretion of the administrative agent, for an additional 180-day period.
C. 
When reviewing an applicant household's income to determine eligibility, the requirements as set forth in N.J.A.C. 5:80-26.16 shall apply.
D. 
The selection of eligible applicants shall be by a random drawing or other equally random means acceptable to the Affordable Housing Board.
[Amended 7-24-12 by Ord. No. 2012-27]
E. 
Occupancy standards.
(1) 
In determining the initial rents and initial sales prices for compliance with the affordable average requirements for restricted units other than assisted living facilities, the following standards shall be used:
(a) 
A studio shall be affordable to a one-person household;
(b) 
A one-bedroom unit shall be affordable to a one and one-half person household;
(c) 
A two-bedroom unit shall be affordable to a three-person household;
(d) 
A three-bedroom unit shall be affordable to a four and one-half person household;
(e) 
A four-bedroom unit shall be affordable to a six-person household.
(2) 
For assisted living facilities, the following standards shall be used:
(a) 
A studio shall be affordable to a one-person household;
(b) 
A one-bedroom unit shall be affordable to one and one-half person household;
(c) 
A two-bedroom unit shall be affordable to a two-person household or to two one-person households.
(3) 
In referring certified households to specific restricted units, to the extent feasible, and without causing an undue delay in occupancy of the unit, the administrative agent shall strive to:
(a) 
Provide an occupant for each unit bedroom;
(b) 
Provide children of different sex with separate bedrooms; and
(c) 
Prevent more than two persons from occupying a single bedroom.
F. 
Appeals. In the event that applicant is determined to be ineligible for a low- or moderate-income unit by the Administrator, the applicant may submit additional proofs and request reconsideration by the Affordable Housing Board as per Section 19-41 of this Article. Such request for reconsideration shall be made within 10 days of receipt of notice of denial by the applicant.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
G. 
Waiting list. The Administrator may establish a waiting list for the remaining eligible applicants in the manner established in Section 19-41. After all the units are occupied, the Administrator or the Affordable Housing Board may choose to accept new applications. If an applicant is deemed eligible, the applicant shall be placed on the waiting list at the bottom of the particular priority classification for which the applicant qualifies. The Administrator or the Affordable Housing Board shall periodically recertify the applicants on the waiting list to ensure that the list remains current and that the applicants are still qualified for the units to which they applied.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
A. 
Each restricted ownership unit shall remain in compliance with and subject to the requirements of the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.5 for control periods, N.J.A.C. 5:80-26.6 for price restrictions, N.J.A.C. 5:80-26.7 for buyer income eligibility, N.J.A.C. 5:80-26.8 for limitations on indebtedness and subordination, N.J.A.C. 5:80-26.9 for capital improvements, and N.J.A.C. 5:80-26.10 for maintenance.
B. 
Each restricted rental unit shall remain in compliance with and subject to the requirements of the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.11 for control periods, N.J.A.C. 5:80-26.12 for restrictions on rents, and N.J.A.C. 5:80-26.13 for tenant income eligibility.
A. 
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. Each affordable development shall achieve an affordability average of 55% for restricted ownership units. In achieving this affordability average, moderate-income ownership units shall be available for at least three different prices for each bedroom type, and low-income ownership units shall be available for at least two different prices for each bedroom type.
B. 
The maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60% of median income and the average rent for low- and moderate-income units shall be affordable to households earning no more than 52% of median income. 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 10% of all low- and moderate-income units shall be affordable to households earning no more than 35% of median income.
C. 
The provisions of this section shall not apply to affordable developments financed under UHORP or MONI or to assisted living residences, which shall comply with the applicable New Jersey Housing Mortgage Finance Agency policies, guidelines and regulations.
[Amended 4-11-95 by Ord. No. 95-10]
A. 
All resale transactions of affordable housing units shall be administered by the Affordable Housing Board. From the date on which the Affordable Housing Board receives a notice of intent to sell by the owner of a low- and moderate-income unit, the Affordable Housing Board shall have the exclusive right to purchase the unit or to refer prospective purchasers to that unit for a period of 90 days unless waived in writing by the Affordable Housing Board. In the event that a contract for the unit is executed within the 90 day period set above and the prospective buyer is unable to close, the period during which the Affordable Housing Board shall have the exclusive right to market the unit is automatically extended for a period of 21 days from the date it is notified of the buyer's inability to close.
[Amended 7-24-12 by Ord. No. 2012-27]
B. 
In the event no contract has been entered into for the unit at the end of a 90 day period, the owner of the unit may seek approval from the Affordable Housing Board to sell the unit directly. If the Affordable Housing Board determines at that point not to purchase the unit, it shall authorize the applicant to sell the unit as follows. However if the Affordable Housing Board determines that the failure to enter into a contract was the result of negligence, absence of good faith effort or lack of cooperation on the part of the Seller; the Affordable Housing Board shall require the applicant to attempt to sell the unit for an additional 90 day period.
[Amended 7-24-12 by Ord. No. 2012-27]
(1) 
In the case of a low-income unit, to a low- or moderate-income buyer; or
(2) 
In the case of a moderate-income unit to a buyer whose income does not exceed 120% of median.
(3) 
Any subsequent sale shall be fully subject to the resale restrictions contained in these regulations. The deed to the above income purchaser shall specifically contain a deed restriction establishing that it is subject to all the affordability controls outlined in this Article.
[Amended 4-11-95 by Ord. No. 95-10]
The resale price of the affordable housing unit shall be the base price increased pursuant to Subsection A and B herein.
A. 
Percentage increase in household income. The price approved by the Affordable Housing Board at which the seller acquired the property shall be the base price. The base price shall be multiplied by 100% plus the percentage increase in the HUD uncapped median income by family size for Hudson County from the time of acquisition of the property to the date that notice of intent to sell is given to the Affordable Housing Board. For example, if the base price is $30,000 and the median income at the time of the initial acquisition is $32,000 and at the time of the resale transaction the median income has increased 25% to $40,000, then the resale price is as follows:
[Amended 7-24-12 by Ord. No. 2012-27]
100
100
+
25
100
=
1.25
 
 
 
 
 
$30,000 x 1.25 = $37,500
B. 
Improvements. In addition, the seller shall be entitled to add to the selling price of the unit, the cost of an eligible capital improvement, affordable housing which pursuant to N.J.A.C. 5:92-12.8 renders the unit suitable for a larger household.
Upon request of an owner of an affordable housing unit, the Affordable Housing Board shall consider within 30 days whether to grant prior approval of an improvement and to approve a specific dollar amount up to the amount actually expended for that improvement.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
The following transactions shall be deemed nonsales for the purpose of this plan. The owner of the affordable unit shall be entitled to a statement of exemption from the Affordable Housing Board upon application.
A. 
Transfer of an affordable housing unit between husband and wife;
B. 
Transfer of ownership of an affordable housing unit between former spouses as a result of a judicial decree, judgment or order of divorce, but not including sales to third parties;
C. 
Transfer of ownership of an affordable housing unit as a result of inheritance;
D. 
Transfer of ownership of an affordable housing unit through an order of the Superior Court.
A grant of exemption shall not eliminate the resale control restriction set forth in these regulations. Any subsequent sale shall be subject to all of the terms of these regulations.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
All rerental transactions shall be administered by the Affordable Housing Board. The rents of affordable housing units may increase annually based on the percentage increase in median income for the Hudson County housing region as determined from the uncapped Section 8 income limits, published by HUD, or other recognized standard adopted by the COAH that applies to the rental housing unit.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
No owner of an affordable housing unit may lease the unit to a tenant without prior written approval of the Affordable Housing Board. Such approval shall not be granted except when justified by particular and unusual circumstances. An owner seeking such approval shall submit a written request to the Affordable Housing Board setting forth the particular circumstances of the case including the reasons for the request to rent, the proposed duration of the tenancy and certification that the proposed tenant is a qualified low- or moderate-income household. In the event the Affordable Housing Board approves the request, it shall notify the owner of the unit. The owner shall rent the unit only to a qualified low- or moderate-income tenant for the period approved by the Affordable Housing Board at a rent affordable to a low- or moderate-income tenant, whichever is applicable.
Rental units may be converted for sale as condominium, cooperative or fee simple units, but any sale of converted units shall continue to be restricted to persons meeting the income eligibility standards as set forth in Section 19-50 unless COAH otherwise requires.
All rental units, both market and affordable, shall not be subject to any rent control ordinance which may be adopted in the Town of Secaucus during the time period in which afford-able housing price controls are effective.
A. 
Ownership units. Each restricted ownership unit shall remain subject to the requirements of the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26.1 et seq.) until the Town of Secaucus elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.5(g). Prior to such municipal election, a restricted ownership unit shall remain subject to the requirements of N.J.A.C. 5:80-26.5, for a period of at least 30 years.
B. 
Rental units. Each restricted rental unit shall remain subject to the requirements of the Uniform Housing Affordability Controls until the Town of Secaucus elects to release the unit from such requirement pursuant to action taken in compliance with N.J.A.C. 5:80-26.11(e). Prior to such a municipal election, a restricted rental unit shall remain subject to the requirements of N.J.A.C. 5:80-26.11, for a period of 30 years.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
The restrictive covenant governing the deeds of the low- and moderate-income units shall include an option permitting purchase of the affordable unit at the maximum allowable restricted sales price at the time of the first non-exempt sale after controls on affordability have been in effect on the unit for the period specified in this Article. The option to buy shall be available to the Town of Secaucus, the New Jersey Department of Community Affairs (DCA), the New Jersey Housing and Mortgage Finance Agency (HMFA), or a qualified nonprofit as determined by the New Jersey Council on Affordable Housing (COAH).
All restrictive covenants governing low- and moderate-income units shall require the owner to notify the Affordable Housing Board by certified mail of any intent to sell the unit 90 days prior to entering into an agreement for the first nonexempt sale after controls have been in effect on the housing units for the period specified in this Article.
Upon receipt of such notice, the option to buy the unit at the maximum allowable restricted sales price shall be available for 90 days. The Affordable Housing Board shall notify the Town of Secaucus, DCA, HMFA and COAH that the unit is for sale. If the Town of Secaucus exercises this option, it may enter into a contract of sale. If the Town of Secaucus fails to exercise this option within 90 days, the first of the other entities giving notice to the seller of its intent to purchase during the 90 day period shall be entitled to purchase the unit. If the option to purchase the unit at the maximum allowable restricted sales price is not exercised by a written intent to sell, the owner may proceed to sell the housing unit. If the owner does not sell the unit within one year of the date of the delivery of notice of intent to sell, the option to buy the unit shall be restored and the owner shall be required to submit a new notice of intent to sell 90 days prior to any future proposed date of sale.
Any option to buy a housing unit at the maximum allowable restricted sales price shall be exercised by certified mail and shall be deemed exercised upon mailing.
A. 
Town of Secaucus option.
(1) 
If the Affordable Housing Board, as an entity of the municipality elects to purchase a low- or moderate-income unit pursuant to this Article, it may:
(a) 
Convey or rent the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the maximum allowable restricted sales price or rental for a period of up to 20 years.
(b) 
Convey the unit at fair market value subject to the deposit of the price differential in a trust account devoted solely to the creation, rehabilitation or maintenance of low- and moderate-income housing. Price differential is defined as the difference between the restricted sales price and fair market value as determined at the date of a proposed contract of sale after reasonable real estate broker fees have been paid.
Money in the trust account may not be expended until the Affordable Housing Board develops a plan for its use which is reviewed by the HMDC and approved by the Town Council.
(2) 
In the event the Town of Secaucus purchases low-income housing units, the Town of Secaucus shall maintain them as low-income housing units.
(3) 
In the event the Town of Secaucus elects to purchase low- or moderate-income housing units and convey them at fair market value, the town shall:
(a) 
Notify the COAH of any proposed sale and resales price 90 days before closing:
(b) 
Notify COAH of the price differential:
(c) 
Deposit the price differential in a trust account devoted solely to the creation, rehabilitation or maintenance of low- and moderate-income housing; and
(d) 
Notify COAH by February 1 of each calendar year of the existing balance within this trust account.
(4) 
Money deposited in trust accounts may not be expended until the municipality submits and COAH approves a repayment housing plan. COAH may approve the repayment housing plan if it deter-mines that it provides a realistic opportunity for the creation, rehabilitation or maintenance of low- and moderate-income housing.
(5) 
The Town of Secaucus shall have the right to deter-mine that the most desirable means of promoting an adequate supply of low- and moderate-income housing is to prohibit the exercise of the repayment option and maintain controls on lower-income housing units sold within the municipality beyond the period required by this Article. Such determination shall be made by resolution of the municipal governing body. The resolution shall specify the time period for which the repayment option shall not be applicable. During such period, no seller in the municipality may utilize the repayment option permitted by Section 19-60D.
If the Town of Secaucus exercises the option out-lined above, it shall:
(a) 
Provide public notice in a newspaper of general circulation; and,
(b) 
Notify the Affordable Housing Board of its governing body's action. The Affordable Housing Board shall ensure that the deed restriction on all affected housing units reflect the extended period of controls.
[Amended 7-24-12 by Ord. No. 2012-27]
B. 
State option. When the DCA or HMFA elects to purchase a low- or moderate-income unit pursuant to this section it may:
(1) 
Convey or rent the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental; or
(2) 
Convey the unit at fair market value and utilize the price differential to subsidize the construction, rehabilitation or maintenance of low- and moderate-income housing within the appropriate housing region.
C. 
Nonprofit option. Nonprofit agencies that have been designated by COAH shall be eligible to purchase low- or moderate-income units pursuant to this section for the sole purpose of conveying or renting the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental. Low-income units shall be made available to low-income purchasers or tenants and the housing unit shall be regulated by the restrictive covenant and lien adopted by COAH. The term of the controls on afford-ability shall be the same as those required by this Article.
D. 
Seller option. An eligible seller of a low- or moderate-income unit which has been controlled for the period established in this plan who has provided notice of an intent to sell may proceed with the sale if no eligible entity as outlined in Section 19-60 exercises its option to purchase within 90 days.
(1) 
The seller may elect to:
(a) 
Sell to a qualified low- and moderate-income household at the controlled unit sales price, providing the unit is regulated by the restrictive covenant and lien adopted by the Agency for a period of up to 20 years; or
(b) 
Exercise the repayment option and sell to any purchaser at market price, providing that 95% of the price differential is paid to the Affordable Housing Board, as instrument of the municipality, at closing.
[Amended 7-24-12 by Ord. No. 2012-27]
(2) 
If the sale will be to a qualified low- and moderate-income household, the Affordable Housing Board shall certify the income qualifications of the purchaser and shall ensure the housing unit is regulated by the restrictive covenant and lien required by the Board.
[Amended 7-24-12 by Ord. No. 2012-27]
(3) 
The Affordable Housing Board shall examine any contract of sale containing a repayment option to determine if the proposed sales price bears a reasonable relationship to the housing unit's fair market value. In making this determination, the Affordable Housing Board may rely on comparable sales data or an appraisal. The Affordable Housing Board shall not approve any contract of sale where there is a determination that the sales price does not bear a reasonable relationship to fair market value. The Affordable Housing Board shall make a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.
[Amended 7-24-12 by Ord. No. 2012-27]
(4) 
The Affordable Housing Board shall also adopt an appeal procedure by which a seller may submit written documentation requesting the Affordable Housing Board to (i) recompute the repayment obligation if the seller believes an error has been made or to (ii) reconsider a determination that the sales price does not bear a reasonable relationship to fair market value. A repayment obligation determination made as a result of an owner's appeal shall be a final administrative determination of the Affordable Housing Board.
[Amended 7-24-12 by Ord. No. 2012-27]
(5) 
The repayment shall occur at the date of closing and transfer of title for the first non-exempt transaction after the expiration of controls on affordability. Repayment proceeds shall be deposited in a trust account devoted solely to the creation, rehabilitation or maintenance of low- and moderate-income housing. Money deposited in trust accounts may not be expended until the Affordable Housing Board develops and obtains township approval of a plan for its use.
[Amended 7-24-12 by Ord. No. 2012-27]
E. 
Continued application of options. When a housing unit has been maintained as a low- or moderate-income unit after controls have been in effect for the period specified in Section 19-59, the restrictive covenant governing the housing units shall allow the town, the state, nonprofit agencies and sellers of low- and moderate-income units to again exercise all the same options as provided in this Article.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
A. 
Any mortgage for a low- and moderate-income unit shall contain a provision requiring the holder of a mortgage on the property to inform the Affordable Housing Board at any time that the purchaser of a unit is 45 days or more in arrears on payment of his mortgage payments. The Affordable Housing Board shall further be notified by the mortgagee in the event of institution of a foreclosure action. This notification provision does not apply to any mortgage which prohibits notice to a third party.
B. 
The Affordable Housing Board shall at all times have the right to intervene in any foreclosure action. In addition, the Affordable Housing Board shall have the right to advance and pay all sums necessary to cure any arrears, to cure any other default or exercise any right of redemption or pay and satisfy any first mortgage or other lien so that the unit may be preserved and retained as a low- and moderate-income unit. All sums advanced by the Affordable Housing Board shall become a lien against the unit and shall have higher priority than any lien except that of a first mortgage or tax or other liens held by any government agencies.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
In the event of a foreclosure by an institutional first mortgagee, the unit shall be exempt from all further resale restrictions provided that the following conditions have been satisfied:
A. 
The first mortgage did not exceed 100% of the authorized sales price of the unit by the current occupant (unless written authorization was given by the Affordable Housing Board for the owner to enter into a mortgage for a higher amount).
B. 
The Affordable Housing Board has been given both notice of the default by the mortgagee, as well as notice of the institution of foreclosure. In addition, the Affordable Housing Board has not exercised its rights to cure the default.
C. 
The lender who is the foreclosing mortgagee is the successful bidder at a sheriff's sale and takes title by deed from the sheriff; or the Affordable Housing Board has given written approval for a deed in lieu of foreclosure.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
No second mortgage shall be placed upon the property without the prior written approval of the Affordable Housing Board. In determining whether to grant an approval for the second mortgage, the Affordable Housing Board shall consider the need for the second mortgage and the impact that the second mortgage shall have upon the ability of the Affordable Housing Board to maintain this unit as a low- and moderate- income unit. Under no circumstances shall a foreclosure of a second mortgage constitute grounds for eliminating the resale controls provided for in this regulation. Prior written approval shall be denied unless second mortgages are specifically authorized by COAH regulations and the application is consistent with those regulations.
Items of personal property which are permanently affixed to the unit (e.g. refrigerator, freezer, washer, dryer) and which were not included when the affordable housing unit was purchased may be the subject of separate negotiations between the parties subsequent to the signing of the contract for the purchase of the house. Any agreed price for the purchase of any item or items of personal property shall be reasonable considering the original cost, nature, age and condition of the item. The price to be paid for items of personal property shall not be used as a mechanism to avoid or circumvent the limitations on the resale price of the unit itself. In no event shall the right to purchase the unit be conditioned upon the buyer's willingness to agree to purchase any item or items of personal properties of the seller.
[Amended 4-11-95 by Ord. No. 95-10]
A. 
No certificate of occupancy for a low- or moderate-income unit shall be issued until the developer shall have submitted and have approved by the Affordable Housing Board Attorney a deed restriction encompassing all the provisions of these regulations.
[Amended 7-24-12 by Ord. No. 2012-27]
B. 
No certificate of occupancy shall be issued for the resale of a low- or moderate-income unit unless the Affordable Housing Board shall certify that the resale complies with the terms of these regulations.
[Amended 7-24-12 by Ord. No. 2012-27]
C. 
No low and moderate-income unit may be occupied by an initial purchaser or resale purchaser without a certificate of occupancy.
The Administrator shall develop and implement an affirmative marketing program for affordable housing units that shall include the following:
A. 
Purpose. The purpose of this section is to establish administrative procedures to ensure a wide dissemination of knowledge of affordable housing units as they become available to the low- and moderate-income population, and that the selection of tenants or homeowners, as the case may be, meets the requirements of the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26).
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 or sponsor of affordable housing. The Town of Secaucus's affirmative marketing plan addresses the requirements of N.J.A.C. 5:80-26.15. Secaucus is located in COAH Housing Region 1 that consists of Hudson, Bergen, Passaic, and Sussex Counties. The affirmative marketing program is a continuing program that shall meet the requirements set forth in this Article.
C. 
The affirmative marketing plan is intended to be used by all developers of affordable housing restricted to low- and moderate-income households located within the Town of Secaucus. Information provided in the marketing of low and moderate-income units shall contain the name, address, directions (to the project), the number of units (including the number of sales and/or rental units), a range of prices or the price of sales and/or rental units, the name of the sales agent and/or rental manager along with their business hours when applications may be obtained and directions to their office, a description of the size (in bedrooms) of the units and of the random selection method that shall be used to select occupants, a disclosure of required application fee(s), and the maximum income permitted to qualify for the housing units. Advertising and outreach shall take place during the first week of the marketing program and each month thereafter until all of the affordable units have been leased or sold.
D. 
Location of applications. Applications, brochure(s), signs, and/or poster(s) shall be located at the Secaucus Municipal Building, Secaucus Housing Authority Office, Secaucus Public Library, Hudson County Human Services and respective sales and rental offices. Applications shall also be mailed to prospective applicants upon request.
E. 
The media and outreach sources to be used in advertising and publicizing of the availability of housing in the affirmative marketing plan shall include the following:
(1) 
Newspapers of general circulation within the housing region. All newspaper articles, announcements, and requests for applications for low- and moderate-income units shall appear in the following publications: The Hudson Dispatch, Star Ledger, Jersey Journal, and Bergen Record.
(2) 
Radio and television stations within the housing region. Public service announcements shall be made through the use of the following radio stations broadcasting throughout the region: WPAT (93.1) Paterson, WFDU (89.1) Newark and WNJP (91.5) New Jersey Public Radio, Sussex.
(3) 
Other publications circulated within the housing region. All newspaper articles, announcements, and requests for applications for low- and moderate- income housing shall appear in the following neighborhood oriented weekly newspapers: Secaucus Home News.
(4) 
Employers throughout the housing region. The following Secaucus employers will be contacted for the posting of advertisements and the distribution of flyers regarding available affordable housing: MSNBC, Inc., Panasonic, Inc., Meadowlands Hospital, United Parcel Service, Retailers & Manufacturers Distributors Marking Services, Control Construction Group and other prominent employers as they may appear.
(5) 
Community outreach. The following is a listing of community contact person(s) and/or organizations in Hudson, Bergen, Passaic and Sussex Counties that will aid in soliciting low- and moderate-income applicants, with particular emphasis on contacts that will reach out to groups that are least likely to be reached by commercial media efforts: Urban League of Hudson County (Jersey City), Jersey Town Affordable Housing Coalition (Jersey City), North Hudson Community Action Corp. (West New York), New Jersey Community Development Corporation (Paterson), Northwest New Jersey Community Action Program, Inc. (Phillipsburg), and New Community Corp. (Newark) as well as the cable television local access channel.
(6) 
Other advertising and outreach efforts. The following groups in the Secaucus region will be sent information circulars and applications: Liberty Board of Realtors in Hudson County, Welfare or Human Services Boards in Hudson, Bergen, Passaic and Sussex Counties, Rental Assistance Office (Local office of DCA), Hudson County Department of Family Services and County Office of Aging (Union Town), Catholic Charities (Diocese of Newark) and Lutheran Social Ministries of New Jersey (Trenton).
(7) 
The affirmative marketing process for available affordable units shall begin at least four months prior to expected occupancy. In implementing the marketing program, the administrative agent shall undertake all of the following strategies:
(a) 
Publication of one advertisement in a newspaper listed above.
(b) 
Broadcast of one advertisement by a radio station listed above.
(c) 
At least one additional regional marketing strategy using one of the other sources listed above.
F. 
In implementing the affirmative marketing plan, each developer's administrative agent shall designate an experienced staff agent approved by COAH to provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit history, mortgage qualifications, rental lease agreements, and landlord/tenant law, as applicable. Alternatively, an administrative agent may refer applicants to an experienced agency approved by COAH to provide such counseling services.
G. 
The Town shall also ensure that all original applicant and sales records of affordable units be returned to the municipality for reporting purposes and to aid with future resale. The Town shall have the ultimate responsibility for the proper administration of the affirmative marketing program including initial sales and rentals and resale and rerental.
[Amended 4-11-95 by Ord. No. 95-10; 7-24-12 by Ord. No. 2012-27]
In the event of a special hardship or in the event that a minor technical modification of these regulations is necessary to effectively implement the policy of this Article, the Affordable Housing Board may waive or modify those regulations relating to occupancy selection, sale or resale prices, or income eligibility standards provided that such waiver of modification is (a) consistent with the intent of these regulations and the Land Use Regulations; and (b) does not violate COAH policy, regulations or statute.
A. 
The provisions of this Article are hereby declared to be severable. If any section, sentence, clause or phrase shall for any reason be held to be invalid or unconstitutional such judgment, decision, ruling or order shall not affect the validity of the remaining sections, clauses, phrases of this Article.
B. 
Appeals from all decisions of the Administrator or developer's administrative agent shall be filed in writing with the Executive Director of the New Jersey Housing and Mortgage Finance Agency. When acting in this capacity, the Executive Director may appoint one or more employees of the Agency, COAH and or the Department of Community Affairs to assist him or her in rendering the final decision; whenever he or she, in his or her sole discretion, determines that committee participation would materially provide a fair and just disposition of the appeal. A written decision of the Executive Director upholding, modifying or reversing an administrative agent's decision shall be a final administrative action.
All other ordinances in conflict or inconsistent with any provisions of this Article are hereby repealed to the extent of such conflict or inconsistency.