[HISTORY: Adopted by the Township Committee of the Township
of Independence 6-12-2018 by Ord. No. 2018-03. Amendments noted
where applicable.]
[Amended 9-11-2018 by Ord. No. 2018-06]
The Township of Independence shall
comply with the following monitoring and reporting requirements regarding
the status of the implementation of its court-approved Housing Element
and Fair Share Plan:
A.
Beginning on September 26, 2018, and on
every anniversary of that date through September 26, 2025, the Township
agrees to provide annual reporting of its affordable housing trust
fund activity to the New Jersey Department of Community Affairs, Council
on Affordable Housing, or Local Government Services, or other entity
designated by the State of New Jersey, with a copy provided to the
Fair Share Housing Center (FSHC) and posted on the municipal website,
using forms developed for this purpose by the New Jersey Department
of Community Affairs (NJDCA), Council on Affordable Housing (COAH),
or Local Government Services (NJLGS). The reporting shall include
an accounting of all affordable housing trust fund activity, including
the source and amount of funds collected and the amount and purpose
for which any funds have been expended.
B.
Beginning on September 26, 2018, and on
every anniversary of that date through September 26, 2025, the Township
agrees to provide annual reporting of the status of all affordable
housing activity within the municipality through posting on the municipal
website with a copy of such posting provided to the Fair Share Housing
Center, using forms previously developed for this purpose by COAH
or any other forms endorsed by the Special Master and FSHC.
C.
By 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 FSHC, a status report as to its implementation
of its plan and an analysis of whether any unbuilt sites or unfulfilled
mechanisms continue to present a realistic opportunity and whether
any mechanisms to meet unmet need should be revised or supplemented.
Such posting shall invite any interested party to submit comments
to the municipality, with a copy to FSHC, regarding whether any sites
no longer present a realistic opportunity and should be replaced and
whether any mechanisms to meet unmet need should be revised or supplemented.
Any interested party may by motion request a hearing before the court
regarding these issues.
D.
By September 26, 2020, and every third
year thereafter, as required by N.J.S.A. 52:27D-329.1, the Township
will post on its municipal website, with a copy provided to FSHC,
a status report as to its satisfaction of its very-low-income requirements,
including its family very-low-income requirements. Such posting shall
invite any interested party to submit comments to the municipality
and FSHC on the issue of whether the municipality has complied with
its very-low-income and family very-low-income housing obligations.
The following terms when used in
this chapter shall have the meanings given in this section:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
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 to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
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 new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
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.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
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.
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
wherein the unit is situated are 62 years of age or older; or
At least 80% of the units are occupied
by one person who is 55 years of age 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 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.
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.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
The State of New Jersey Department of Community Affairs.
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.
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.
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.
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.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
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 and 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 COAH or a successor entity approved
by the court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
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 duly adopted regional income limits published annually
by COAH or a successor entity.
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 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.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
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 purposes of a rehabilitation
program.
[Amended 9-11-2018 by Ord. No. 2018-06]
The provisions of this chapter shall
apply to:
A.
All affordable housing developments and
affordable housing units that currently exist within Woodbridge Township;
B.
All affordable housing developments and
affordable housing units that are proposed to be created pursuant
to the Township's Housing Plan Element and Fair Share Plan;
C.
All unanticipated future developments that
will provide affordable housing for low- and moderate-income households;
and
D.
Any property in the Township that is currently
zoned for nonresidential uses and that is subsequently rezoned for
multifamily residential purposes, and to all approvals for multifamily
residential development granted by the Township Planning Board or
Zoning Board of Adjustment, including approvals of use or density
variances, site plans, or subdivisions, and redevelopment projects
subject to a redevelopment plan adopted by the Township governing
body governing the development and redevelopment of designated areas
in need of rehabilitation or areas in need of redevelopment in the
Township, including substantial revisions to previously approved developments,
where such rezoning, approval or revision results in or increases
the number of residential units by five or more units.
A.
The administration of an alternative living
arrangement shall be in compliance with N.J.A.C. 5:93-5.8 and UHAC,
with the following exceptions:
B.
With the exception of units established
with capital funding through a twenty-year operating contract with
the Department of Human Services, Division of Developmental Disabilities,
alternative living arrangements shall have at least thirty-year controls
on affordability in accordance with UHAC, unless an alternative commitment
is approved by the court.
C.
The service provider for the alternative
living arrangement shall act as the administrative agent for the purposes
of administering the affirmative marketing and affordability requirements
for the alternative living arrangement.
In inclusionary developments the
following schedule shall be followed:
Maximum Percentage of Market-Rate
Units Completed
|
Minimum Percentage of Low- and Moderate-Income
Units Completed
|
---|---|
25
|
0
|
25+1
|
10
|
50
|
50
|
75
|
75
|
90
|
100
|
A.
Low/moderate split and bedroom distribution
of affordable housing units.
(1)
The fair share obligation shall be divided
equally between low- and moderate-income units, except that where
there is an odd number of affordable housing units, the extra unit
shall be a low-income unit. At least 13% of all restricted rental
units shall be very-low-income units (affordable to a household earning
30% or less of regional median income by household size). The very-low-income
units shall be counted as part of the required number of low-income
units within the development.
(2)
In each affordable development, at least
50% of the restricted units within each bedroom distribution shall
be very-low- or low-income units.
(3)
Affordable developments that are not age-restricted
shall be structured in conjunction with realistic market demands such
that:
(a)
The combined number of efficiency
and one-bedroom units shall be no greater than 20% of the total low-
and moderate-income units;
(b)
At least 30% of all low- and moderate-income
units shall be two-bedroom units;
(c)
At least 20% of all low- and moderate-income
units shall be three-bedroom units; and
(d)
The remaining units may be allocated
among two- and three-bedroom units at the discretion of the developer.
(4)
Affordable developments that are age-restricted
shall be structured such that the number of bedrooms shall equal the
number of age-restricted low- and moderate-income units within the
inclusionary development. This standard may be met by having all one-bedroom
units or by having a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements.
(1)
The first floor of all restricted townhouse
dwelling units and all restricted units in all other multistory buildings
shall be subject to the technical design standards of the Barrier
Free SubCode, N.J.A.C. 5:23-7, and the following:
(2)
All restricted townhouse dwelling units
and all restricted units in other multistory buildings in which a
restricted dwelling unit is attached to at least one other dwelling
unit shall have the following features:
(a)
An adaptable toilet and bathing facility
on the first floor; and
(b)
An adaptable kitchen on the first
floor; and
(c)
An interior accessible route of travel
on the first floor; and
(d)
An adaptable room that can be used
as a bedroom, with a door or the casing for the installation of a
door, on the first floor; and
(e)
If not all of the foregoing requirements in Subsection B(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of 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)
An accessible entranceway as set
forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the
Barrier Free SubCode, N.J.A.C. 5:23-7, or evidence that Independence
has collected funds from the developer sufficient to make 10% of the
adaptable entrances in the development accessible:
[1]
Where a unit has been constructed
with an adaptable entrance, upon the request of a disabled person
who is purchasing or will reside in the dwelling unit, an accessible
entrance shall be installed.
[2]
To this end, the builder of restricted
units shall deposit funds within the Township of Independence's affordable
housing trust fund sufficient to install accessible entrances in 10%
of the affordable units that have been constructed with adaptable
entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township of Independence for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units
shall submit a design plan and cost estimate to the Construction Official
of the Township of Independence for the conversion of adaptable to
accessible entrances.
[5]
Once the Construction Official has
determined that the design plan to convert the unit entrances from
adaptable to accessible meet the requirements of the Barrier Free
SubCode, N.J.A.C. 5:23-7, and that the cost estimate of such conversion
is reasonable, payment shall be made to the Township's affordable
housing trust fund in care of the Township Treasurer who shall ensure
that the funds are deposited into the affordable housing trust fund
and appropriately earmarked.
(g)
Full compliance with the foregoing
provisions shall not be required where an entity can demonstrate that
it is "site impracticable" to meet the requirements. Determinations
of site impracticability shall be in compliance with the Barrier Free
SubCode, N.J.A.C. 5:23-7.
D.
Maximum rents and sales prices.
(1)
In establishing rents and sales prices
of affordable housing units, the administrative agent shall follow
the procedures set forth in UHAC, utilizing the most recently published
regional weighted average of the uncapped Section 8 income limits
published by HUD and the calculation procedures set forth in the consent
order entered on December 16, 2016, by the Honorable Douglas K. Wolfson,
JSC, in In the Matter of the Township of East Brunswick for a Judgment
of Compliance of its Third Round Housing Element and Fair Share Plan,
Docket No.: MID-L-004013-15.
(2)
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)
The developers and/or municipal sponsors
of restricted rental units shall establish at least one rent for each
bedroom type for both low-income and moderate-income units, provided
that at least 13% of all low- and moderate-income rental units shall
be affordable to very-low-income households, which very-low-income
units shall be part of the low-income requirement.
(4)
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)
In determining the initial sales prices
and rent levels for compliance with the affordability average requirements
for restricted units other than assisted-living facilities and age-restricted
developments, the following standards shall be used:
(a)
A studio shall be affordable to a
one-person household;
(b)
A one-bedroom unit shall be affordable
to a 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; and
(e)
A four-bedroom unit shall be affordable
to a six-person household.
(6)
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)
The initial purchase price for all restricted
ownership units shall be calculated so that the monthly carrying cost
of the unit, including principal and interest (based on a mortgage
loan equal to 95% of the purchase price and the Federal Reserve H.15
rate of interest), taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees do not exceed 28% of
the eligible monthly income of the appropriate size household as determined
under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided,
however, that the price shall be subject to the affordability average
requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(8)
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)
The price of owner-occupied low- and moderate-income
units may increase annually based on the percentage increase in the
regional median income limit for each housing region. In no event
shall the maximum resale price established by the administrative agent
be lower than the last recorded purchase price.
(10)
The rents of very-low-, low- and
moderate-income units may be increased annually based on the permitted
percentage increase in the Housing Consumer Price Index for the Northeast
Urban Area. This increase shall not exceed 9% in any one year. 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.
Affordable units shall utilize the same
type of heating source as market units within an inclusionary development.
B.
Tenant-paid utilities included in the utility
allowance shall be set forth in the lease and shall be consistent
with the utility allowance approved by 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.
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 Independence takes action to release the unit from
such requirements; prior to such action, a restricted ownership unit
must remain subject to the requirements of N.J.A.C. 5:80-26.1, as
may be amended and supplemented.
B.
The affordability control period for a
restricted ownership unit shall commence on the date the initial certified
household takes title to the unit.
C.
Prior to the issuance of the initial certificate
of occupancy for a restricted ownership unit and upon each successive
sale during the period of restricted ownership, the administrative
agent shall determine the restricted price for the unit and shall
also determine the nonrestricted, fair market value of the unit based
on either an appraisal or the unit's equalized assessed value without
the restrictions in place.
D.
At the time of the initial sale of the
unit, the initial purchaser shall execute and deliver to the administrative
agent a recapture note obligating the purchaser (as well as the purchaser's
heirs, successors and assigns) to repay, upon the first nonexempt
sale after the unit's release from the restrictions set forth in this
chapter, an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
E.
The affordability controls set forth in
this chapter shall remain in effect despite the entry and enforcement
of any judgment of foreclosure with respect to restricted ownership
units.
F.
A restricted ownership unit shall be required
to obtain a continuing certificate of occupancy or a certified statement
from the Construction Official stating that the unit meets all code
standards upon the first transfer of title following the removal of
the restrictions provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
Price restrictions for restricted
ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as
may be amended and supplemented, including:
A.
The initial purchase price for a restricted
ownership unit shall be approved by the administrative agent.
B.
The administrative agent shall approve
all resale prices, in writing and in advance of the resale, to assure
compliance with the foregoing standards.
C.
The master deeds of inclusionary developments
shall provide no distinction between the condominium or homeowner
association fees and special assessments paid by low- and moderate-income
purchasers and those paid by market purchasers.
D.
The owners of restricted ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See § 112-13.
A.
Buyer income eligibility for restricted
ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as
may be amended and supplemented, such that low-income ownership units
shall be reserved for households with a gross household income less
than or equal to 50% of median income, and moderate-income ownership
units shall be reserved for households with a gross household income
less than 80% of median income.
B.
Notwithstanding the foregoing, the administrative
agent may, upon approval by the Township Council, and subject to the
court's approval, permit a moderate-income purchaser to buy a low-income
unit if and only if the administrative agent can demonstrate that
there is an insufficient number of eligible low-income purchasers
in the housing region to permit prompt occupancy of the unit and all
other reasonable efforts to attract a low-income purchaser, including
pricing and financing incentives, have failed. Any such low-income
unit that is sold to a moderate-income household shall retain the
required pricing and pricing restrictions for a low-income unit.
C.
A certified household that purchases a
restricted ownership unit must occupy it as the certified household's
principal residence and shall not lease the unit; provided, however,
that the administrative agent may permit the owner of a restricted
ownership unit, upon application and a showing of hardship, to lease
the restricted unit to another certified household for a period not
to exceed one year.
D.
The administrative agent shall certify
a household as eligible for a restricted ownership unit when the household
is a low-income household or a moderate-income household, as applicable
to the unit, and the estimated monthly housing cost for the particular
unit (including principal, interest, taxes, homeowner and private
mortgage insurance and condominium or homeowner association fees,
as applicable) does not exceed 33% of the household's eligible monthly
income.
A.
Prior to incurring any indebtedness to
be secured by a restricted ownership unit, the owner shall apply to
the administrative agent for a determination in writing that the proposed
indebtedness complies with the provisions of this Section, and the
administrative agent shall issue such determination prior to the owner
incurring such indebtedness.
B.
With the exception of first purchase money
mortgages, neither an owner nor a lender shall at any time cause or
permit the total indebtedness secured by a restricted ownership unit
to exceed 95% of the maximum allowable resale price of the unit, as
such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units
may apply to the administrative agent to increase the maximum sales
price for the unit on the basis of capital improvements made since
the purchase of the unit. Eligible capital improvements shall be those
that render the unit suitable for a larger household or that add an
additional bathroom. In no event shall the maximum sales price of
an improved housing unit exceed the limits of affordability for the
larger household.
B.
Upon the resale of a restricted ownership
unit, all items of property that are permanently affixed to the unit
or were included when the unit was initially restricted (for example,
refrigerator, range, washer, dryer, dishwasher, wall-to-wall carpeting)
shall be included in the maximum allowable resale price. Other items
may be sold to the purchaser at a reasonable price that has been approved
by the administrative agent at the time of the signing of the agreement
to purchase. The purchase of central air conditioning installed subsequent
to the initial sale of the unit and not included in the base price
may be made a condition of the unit resale, provided the price, which
shall be subject to ten-year, straight-line depreciation, has been
approved by the administrative agent. Unless otherwise approved by
the administrative agent, the purchase of any property other than
central air conditioning shall not be made a condition of the unit
resale. The owner and the purchaser must personally certify at the
time of closing that no unapproved transfer of funds for the purpose
of selling and receiving property has taken place at the time of or
as a condition of resale.
A.
Control periods for restricted rental units
shall be in accordance with N.J.A.C. 5:80-26.11, as may be amended
and supplemented, and each restricted rental unit shall remain subject
to the requirements of this chapter for a period of at least 30 years,
until Independence 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.
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 Warren. A copy of the filed
document shall be provided to the administrative agent within 30 days
of the receipt of a certificate of occupancy.
C.
A restricted rental unit shall remain subject
to the affordability controls of this chapter despite the occurrence
of any of the following events:
A.
A written lease shall be required for all
restricted rental units, and tenants shall be responsible for security
deposits and the full amount of the rent as stated on the lease. A
copy of the current lease for each restricted rental unit shall be
provided to the administrative agent.
B.
No additional fees or charges shall be
added to the approved rent (except, in the case of units in an assisted-living
residence, to cover the customary charges for food and services) without
the express written approval of the administrative agent.
C.
Application fees (including the charge
for any credit check) shall not exceed 5% of the monthly rent of the
applicable restricted unit and shall be payable to the administrative
agent to be applied to the costs of administering the controls applicable
to the unit as set forth in this chapter.
D.
No rent control ordinance or other pricing
restriction shall be applicable to 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.
Tenant income eligibility shall be in accordance
with N.J.A.C. 5:80-26.13, as may be amended and supplemented, and
shall be determined as follows:
(1)
Very-low-income rental units shall be reserved
for households with a gross household income less than or equal to
30% of the regional median household income by household size.
(2)
Low-income rental units shall be reserved
for households with a gross household income less than or equal to
50% of the regional median household income by household size.
(3)
Moderate-income rental units shall be reserved
for households with a gross household income less than 80% of the
regional median household income by household size.
B.
The administrative agent shall certify
a household as eligible for a restricted rental unit when the household
is a very-low-income household, low-income household or a moderate-income
household, as applicable to the unit, and the rent proposed for the
unit does not exceed 35% (40% for age-restricted units) of the household's
eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16,
as may be amended and supplemented; provided, however, that this limit
may be exceeded if one or more of the following circumstances exists:
(1)
The household currently pays more than
35% (40% for households eligible for age-restricted units) of its
gross household income for rent, and the proposed rent will reduce
its housing costs;
(2)
The household has consistently paid more
than 35% (40% for households eligible for age-restricted units) of
eligible monthly income for rent in the past and has proven its ability
to pay;
(3)
The household is currently in substandard
or overcrowded living conditions;
(4)
The household documents the existence of
assets with which the household proposes to supplement the rent payments;
or
(5)
The household documents reliable anticipated
third-party assistance from an outside source such as a family member
in a form acceptable to the administrative agent and the owner of
the unit.
A.
The Township of Independence shall appoint
a specific municipal employee to serve as a Municipal Housing Liaison
responsible for overseeing the Township's affordable housing program,
including overseeing the administration of affordability controls
on the affordable units and the affirmative marketing of available
affordable units in accordance with the Township's affirmative marketing
plan; fulfilling monitoring and reporting requirements; and supervising
administrative agent(s). Independence Township shall adopt an ordinance
creating the position of Municipal Housing Liaison and a resolution
appointing the person to fulfill the position of Municipal Housing
Liaison. The Municipal Housing Liaison shall be appointed by the governing
body and may be a full or part time municipal employee. The Municipal
Housing Liaison shall be approved by the court and shall be duly qualified
through a training program sponsored by Affordable Housing Professionals
of New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The Municipal Housing Liaison shall be
responsible for oversight and administration of the affordable housing
program for Independence, including the following responsibilities
which may not be contracted out to the administrative agent:
(1)
Serving as Independence's primary point
of contact for all inquiries from the state, affordable housing providers,
administrative agents and interested households;
(2)
Monitoring the status of all restricted
units in Independence's Fair Share Plan;
(3)
Compiling, verifying, submitting and posting
all monitoring reports as required by the court and by this chapter;
(4)
Coordinating meetings with affordable housing
providers and administrative agents, as needed; and
(5)
Attending continuing education opportunities
on affordability controls, compliance monitoring and affirmative marketing
at least annually and more often as needed.
C.
Subject to the approval of the court, the
Township of Independence shall designate one or more administrative
agent(s) to administer and to affirmatively market the affordable
units constructed in the Township in accordance with UHAC and this
chapter. An operating manual for each affordable housing program shall
be provided by the administrative agent(s) to be adopted by resolution
of the governing body and subject to approval of the court. The operating
manual(s) shall be available for public inspection in the office of
the Township Clerk, in the office of the Municipal Housing Liaison,
and in the office(s) of the administrative agent(s). The Municipal
Housing Liaison shall supervise the work of the administrative agent(s).
An administrative agent shall be
an independent entity serving under contract to and reporting to the
municipality. The fees of the administrative agent shall be paid by
the owners of the affordable units for which the services of the administrative
agent are required. The administrative agent shall perform the duties
and responsibilities of an administrative agent as set forth in UHAC,
including those set forth in Sections 5:80-26.14, 5:80-26.16 and 5:80-26.18
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 Independence 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 noneligibility;
(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 Appendixes 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;
(6)
Employing a random selection process as
provided in the affirmative marketing plan of the Township of Independence
when referring households for certification to affordable units; and
(7)
Notifying the following entities of the
availability of affordable housing units in the Township of Independence:
Fair Share Housing Center, the New Jersey State Conference of the
NAACP, the Latino Action Network, NORWESCAP, the Supportive Housing
Association, and the Central Jersey Housing Resource Center.
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 Warren County Register of Deeds or Warren 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 rerentals.
(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
rerental; and
(2)
Instituting and maintaining an effective
means of communicating information to low- (or very-low-) and moderate-income
households regarding the availability of restricted units for resale
or rerental.
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)
Posting annually, in all rental properties
(including two-family homes), a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent or other charges can be made;
(4)
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;
(5)
Establishing a program for diverting unlawful
rent payments to the municipality's affordable housing trust fund;
and
(6)
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)
The administrative agent shall prepare
monitoring reports for submission to the Municipal Housing Liaison
in time to meet the court-approved monitoring and reporting requirements
in accordance with the deadlines set forth in this chapter.
(3)
The administrative agent shall attend continuing
education sessions on affordability controls, compliance monitoring,
and affirmative marketing at least annually and more often as needed.
[Amended 9-11-2018 by Ord. No. 2018-06]
A.
The Township of Independence shall adopt
by resolution an affirmative marketing plan, subject to approval of
the court, that is compliant with N.J.A.C. 5:80-26.15, as may be amended
and supplemented.
B.
The affirmative marketing plan is a regional
marketing strategy designed to attract buyers and/or renters of all
majority and minority groups, regardless of race, creed, color, national
origin, ancestry, marital or familial status, gender, affectional
or sexual orientation, disability, age or number of children to housing
units which are being marketed by a developer, sponsor or owner of
affordable housing. The affirmative marketing plan is intended to
target those potentially eligible persons who are least likely to
apply for affordable units in that region. It is a continuing program
that directs marketing activities toward Housing Region 2 and is required
to be followed throughout the period of restriction.
C.
The affirmative marketing plan shall provide
a regional preference for all households that live and/or work in
Housing Region 2, comprised of Warren, Monmouth and Ocean Counties.
D.
The municipality has the ultimate responsibility
for adopting the affirmative marketing plan and for the proper administration
of the affirmative marketing program, including initial sales and
rentals and resales and rerentals. The administrative agent designated
by the Township of Independence shall implement the affirmative marketing
plan to assure the affirmative marketing of all affordable units.
E.
In implementing the affirmative marketing
plan, the administrative agent shall provide a list of counseling
services to low- and moderate-income applicants on subjects such as
budgeting, credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
F.
The affirmative marketing plan shall describe
the media to be used in advertising and publicizing the availability
of housing. In implementing the affirmative marketing plan, the administrative
agent shall consider the use of language translations where appropriate.
G.
The affirmative marketing process for available
affordable units shall begin at least four months (120 days) prior
to the expected date of occupancy.
H.
Applications for affordable housing shall
be available in several locations, including, at a minimum, the county
administration building and/or the county library for each county
within the housing region; and the municipal administration building
in the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request.
I.
The costs of advertising and affirmative
marketing of the affordable units shall be the responsibility of the
developer, sponsor or owner.
J.
The affirmative marketing plan shall specifically
notify the following community and regional organizations in advertisement
for affordable housing:
(1)
Fair Share Housing Center, Cherry Hill.
(2)
New Jersey State Conference of the NAACP,
Trenton.
(3)
Latino Action Network, Freehold.
(4)
Supportive Housing Association, Cranford.
(5)
Central Hersey Housing Resource Center,
Raritan.
(6)
East Orange NAACP.
(7)
Newark NAACP.
(8)
Morris County NAACP.
(9)
Elizabeth NAACP.
A.
Upon the occurrence of a breach of any
of the regulations governing an affordable unit by an owner, developer
or tenant, the municipality shall have all remedies provided at law
or equity, including but not limited to foreclosure, tenant eviction,
a requirement for household recertification, acceleration of all sums
due under a mortgage, recuperation of any funds from a sale in violation
of the regulations, injunctive relief to prevent further violation
of the regulations, entry on the premises, and specific performance.
B.
After providing written notice of a violation
to an owner, developer or tenant of a low- or moderate-income unit
and advising the owner, developer or tenant of the penalties for such
violations, the municipality may take the following action(s) against
the owner, developer or tenant for any violation that remains uncured
for a period of 60 days after service of the written notice:
(1)
The municipality may file a court action
pursuant to N.J.S.A. 2A:58-11 alleging a violation or violations of
the regulations governing the affordable housing unit. If the owner,
developer or tenant is adjudged by the court to have violated any
provision of the regulations governing affordable housing units, the
owner, developer or tenant shall be subject to one or more of the
following penalties, at the discretion of the court:
(a)
A fine of not more than $500 per
day or imprisonment for a period not to exceed 90 days, or both, provided
that each and every day that the violation continues or exists shall
be considered a separate and specific violation of these provisions
and not a continuation of the initial offense;
(b)
In the case of an owner who has rented
a low- or moderate-income unit in violation of the regulations governing
affordable housing units, payment into the Township of Independence
affordable housing trust fund of the gross amount of rent illegally
collected;
(c)
In the case of an owner who has rented
a low- or moderate-income unit in violation of the regulations governing
affordable housing units, payment of an innocent tenant's reasonable
relocation costs, as determined by the court.
(2)
The municipality may file a court action
in the Superior court seeking a judgment that would result in the
termination of the owner's equity or other interest in the unit, in
the nature of a mortgage foreclosure. Any such judgment shall be enforceable
as if the same were a judgment of default of the first purchase money
mortgage and shall constitute a lien against the low- or moderate-income
unit.
(a)
The judgment shall be enforceable,
at the option of the municipality, by means of an execution sale by
the Sheriff, at which time the low- and moderate-income unit of the
violating owner shall be sold at a sale price which is not less than
the amount necessary to fully satisfy and pay off any first purchase
money mortgage and prior liens and the costs of the enforcement proceedings
incurred by the municipality, including attorneys' fees. The violating
owner shall have his right to possession terminated as well as his
title conveyed pursuant to the Sheriff's sale.
(b)
The proceeds of the Sheriff's sale
shall first be applied to satisfy the first purchase money mortgage
lien and any prior liens upon the low- and moderate-income unit. The
excess, if any, shall be applied to reimburse the municipality for
any and all costs and expenses incurred in connection with either
the court action resulting in the judgment of violation or the Sheriff's
sale. In the event that the proceeds from the Sheriff's sale are insufficient
to reimburse the municipality in full as aforesaid, the violating
owner shall be personally responsible for the full extent of such
deficiency, in addition to any and all costs incurred by the municipality
in connection with collecting such deficiency. In the event that a
surplus remains after satisfying all of the above, such surplus, if
any, shall be placed in escrow by the municipality for the owner and
shall be held in such escrow for a maximum period of two years or
until such earlier time as the owner shall make a claim with the municipality
for such. Failure of the owner to claim such balance within the two-year
period shall automatically result in a forfeiture of such balance
to the municipality. Any interest accrued or earned on such balance
while being held in escrow shall belong to and shall be paid to the
municipality, whether such balance shall be paid to the owner or forfeited
to the municipality.
(c)
Foreclosure by the municipality due
to violation of the regulations governing affordable housing units
shall not extinguish the restrictions of the regulations governing
affordable housing units as the same apply to the low- and moderate-income
unit. Title shall be conveyed to the purchaser at the Sheriff's sale,
subject to the restrictions and provisions of the regulations governing
the affordable housing unit. The owner determined to be in violation
of the provisions of this plan and from whom title and possession
were taken by means of the Sheriff's sale shall not be entitled to
any right of redemption.
(d)
If there are no bidders at the Sheriff's
sale, or if insufficient amounts are bid to satisfy the first purchase
money mortgage and any prior liens, the municipality may acquire title
to the low- and moderate-income unit by satisfying the first purchase
money mortgage and any prior liens and crediting the violating owner
with an amount equal to the difference between the first purchase
money mortgage and any prior liens and costs of the enforcement proceedings,
including legal fees and the maximum resale price for which the low-
and moderate-income unit could have been sold under the terms of the
regulations governing affordable housing units. This excess shall
be treated in the same manner as the excess which would have been
realized from an actual sale as previously described.
(e)
Failure of the low- and moderate-income
unit to be either sold at the Sheriff's sale or acquired by the municipality
shall obligate the owner to accept an offer to purchase from any qualified
purchaser which may be referred to the owner by the municipality,
with such offer to purchase being equal to the maximum resale price
of the low- and moderate-income unit as permitted by the regulations
governing affordable housing units.
(f)
The owner shall remain fully obligated,
responsible and liable for complying with the terms and restrictions
of governing affordable housing units until such time as title is
conveyed from the owner.
Appeals from all decisions of an
administrative agent appointed pursuant to this chapter shall be filed
in writing with the court.