The following terms, when used in this Ordinance, shall have
the meanings given in this section:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301, et seq.)
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Sub-Code, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Township to administer affordable
units in accordance with this Ordinance, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABLE
A sales price or rent level that is within the – of
a low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
AFFORDABLE HOUSING DEVELOPMENT
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100 percent affordable
housing development.
AFFORDABLE UNIT --
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
AFFORDABILITY AVERAGE
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
AGE-RESTRICTED UNIT --
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development wherein the unit
is situated are 62 years of age or older; or 2) at least 80 percent
of the units are occupied by one person who is 55 years of age or
older; or 3) the development has been designated by the Secretary
of the U.S. Department of Housing and Urban Development as "housing
for older persons" as defined in Section 807(b)(2) of the Fair Housing
Act, 42 U.S.C. § 3607.
ALTERNATIVE LIVING ARRANGEMENT
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
ASSISTED LIVING RESIDENCE
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
COAH --
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
DEVELOPMENT --
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1, et seq.
INCLUSIONARY DEVELOPMENT --
A development containing both affordable units and market
rate units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD --
A household with a total gross annual household income equal
to 50 percent or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM --
The primary structural, mechanical, plumbing, electrical,
fire protection or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load bearing structural
systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME --
The annual determination of median income as published by
HUD.
[Amended 3-5-2018 by Ord.
No. O-2-2018-002]
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50 percent but less than 80 percent of the median household
income.
NON-EXEMPT SALE --
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class
A beneficiary and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Sub-Code, N.J.A.C.
5:23-6.
RENT
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26, et seq.
VERY LOW-INCOME HOUSEHOLD --
A household with a total gross annual household income equal
to 30 percent or less of the median household income for the applicable
housing region.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for purposes of a rehabilitation
program.
The Municipal Housing Manager shall be appointed by the Mayor.
The Board shall supervise the implementation of the Township's
Affirmative Marketing Program.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A. The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B. The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C. The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D. The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
[Adopted 10-4-06 as Ord. No. O-10-2006-034]
The purpose of this chapter is to create the administrative
mechanisms needed for the execution of Monroe Township's responsibility
to assist in the provision of affordable housing pursuant to the Fair
Housing Act of 1985.
[Adopted 10-4-06 as Ord. No. O-10-2006-034]
As used in this chapter, the following terms shall have the
meanings indicated:
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Township of Monroe.
ADMINISTRATIVE AGENT
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Township of Monroe to ensure that the restricted units under administration
are affirmatively marketed and sold or rented, as applicable, only
to low- and moderate-income households.
The Administrative Agent shall be an independent entity serving
under contract to and reporting to the Affordable Housing Board. The
fees of the Administrative Agent shall be paid by the owners of the
affordable units for which the services of the Administrative Agent
are required. The Administrative Agent shall perform the duties and
responsibilities of an Administrative Agent as set forth in UHAC,
including those set forth in Sections 5:80-26.14, 16 and 18 thereof,
which includes:
A. Affirmative marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township of Monroe and the provisions of N.J.A.C. 5:80-26.15;
and
(2)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B. Household certification:
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or non-eligibility;
(4)
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1, et seq.;
(5)
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
and
(6)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township of Monroe when referring households
for certification to affordable units.
C. Affordability controls:
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Middlesex
County Register of Deeds or Middlesex County Clerk's office after
the termination of the affordability controls for each restricted
unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of Continuing Certificates of Occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
D. Resales and re-rentals:
(1)
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or re-rental; and
(2)
Instituting and maintaining an effective means of communicating
information to low- and moderate-income households regarding the availability
of restricted units for resale or re-rental.
E. Processing requests from unit owners:
(1)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
(2)
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air-conditioning
systems;
(3)
Notifying the municipality of an owner's intent to sell
a restricted unit; and
(4)
Making determinations on requests by owners of restricted units
for hardship waivers.
F. Enforcement:
(1)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(2)
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
Administrative Agent;
(3)
In the event that the administration of low- and moderate-income
housing in an inclusionary development is to be performed by the Administrative
Agent, the payment of the Administrative Agent fee shall be the responsibility
of the developer/owner of that particular inclusionary development
and shall be a condition of Municipal Planning Board Approval.
(4)
All developers/owners of low- and moderate-income housing units
shall be required to assist in the marketing of the affordable units
in their respective developments. The cost of advertising the low-
and moderate-income units shall be the developer's responsibility
and this requirement shall be a condition of Municipal Planning Board
approval.
(5)
The posting annually in all rental properties, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the Administrative Agent where complaints
of excess rent or other charges can be made;
(6)
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
(7)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
(8)
Creating and publishing a written operating manual for each
affordable housing program administered by the Administrative Agent,
to be approved by the Township Council and the Court, setting forth
procedures for administering the affordability controls.
G. Additional Responsibilities:
(1)
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(2)
In the event that the Township of Monroe enters into a contract
with the Administrative Agent regarding affordable sales and rental
units, all other applicable sections of this chapter shall be enforced
by the Administrative Agent on behalf of the Township of Monroe.
(3)
The Administrative Agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet any monitoring
requirements and deadlines imposed by the Court.
(4)
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
Appeals from all decisions of an Administrative Agent appointed
pursuant to this chapter shall be filed in writing with the Court.
[Added 3-5-2018 by Ord.
No. O-2-2018-002]
A. Income limits for all units that are part of Monroe 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 Monroe Township annually with 60 days of the publication
of determinations of median income by HUD as follows:
(1) Regional income limits shall be established for the region that Monroe
Township is located within, based on the median income by household
size, which shall be established by a regional weighted average of
the uncapped Section 8 income limits published by HUD. To compute
this regional income limit, the HUD determination of median county
income for a family of four is multiplied by the estimated households
within the county according to the most recent decennial census. The
resulting product for each county within the housing region is summed.
The sum is divided by the estimated total households from the most
recent decennial census in Monroe Township's housing region.
This quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80 percent of the regional weighted
average median income for a family of four. The income limit for a
low-income unit for a household of four shall be 50 percent of the
HUD determination of the regional weighted average median income for
a family of four. The income for a very low-income unit for a household
of four shall be 30 percent of the regional weighted average median
income for a family of four. These income limits shall be adjusted
by household size based on multipliers used by HUD to adjust median
income by household size. In no event shall the income limits be less
than those for the previous year.
(2) The income limits are the result of applying the percentages set forth in Subsection
A(1) above to HUD's determination of median income for FY 2016, and shall be utilized until Monroe Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(3) The Regional Asset Limited used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by Monroe Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection
A(1) above over the previous year's income limits, and applying the same percentage increase to the Regional Asset Limit from the prior year. In no event shall the Regional Asset Limit be less than that for the previous year.
B. 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 pursuant to
the process defined above.
(1) The resale prices of owner-occupied low- and moderate-income units
may increase annually based on the percentage increase in the regional
median income limit for each housing region determined pursuant to
the process outlined above. In no event shall the maximum resale price
established by the administrative agent be lower than the last recorded
purchase price.
(2) The rent levels of very-low-, low- and moderate-income units may
be increased annually based on the percentage increase in the Housing
Consumer Price index for the Northeast Urban Area, upon its publication
for the prior calendar year. This increase shall not exceed nine percent
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.