[Ord. No. 855 §§ 1—14;
amended 11-26-2019 by Ord. No.
19-12]
This section shall be known and may be cited as the "Affordable
Housing Ordinance of the Borough of Haworth."
The purpose of this section is to establish a mechanism for
assuring that housing units designed for occupancy by low- and moderate-income
households remain affordable to and occupied by low- and moderate-income
households.
The following terms when used in this section 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.[1]
The entity designated by the Borough to administer affordable
units in accordance with this section, N.J.A.C. 5:93[2] 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[3] 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 Borough's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% 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.
[1]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
[3]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
a.
The provisions of this section shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Borough of Haworth pursuant
to the Borough's most recently adopted Housing Element and Fair
Share Plan.
b.
Moreover, this section shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
c.
Any property in the Borough of Haworth that is currently zoned for
nonresidential use and subsequently receives a zoning change, use
variance or approval of a redevelopment plan to permit multifamily
residential or single-family attached development; or any property
in the Borough of Haworth that is currently zoned for residential
use and receives a zoning change, density variance or approval of
a redevelopment plan to permit multifamily residential development
or single-family attached development, which multifamily or single-family
detached residential development results in five or more residential
units shall provide a minimum affordable housing set-aside. The affordable
set-aside for rental developments shall be 15%, and the affordable
set-aside for for-sale developments shall be 20%. The provisions of
this section shall not apply to residential expansions, additions,
renovations, replacement or any other type of residential development
that does not result in a net increase in the number of dwellings
of five or more. This provision does not affect residential development
on sites that are zoned for inclusionary residential development as
part of the Borough's Housing Element and Fair Share Plan, which
are subject to the affordable housing set-aside requirements set forth
in the applicable zoning. This requirement does not give any developer
the right to any such rezoning, variance or other relief, or establish
any obligation of the part of the Borough of Haworth to grant such
rezoning, variance or other relief. A property shall not be permitted
to be subdivided so as to avoid compliance with this requirement.
All affordable units created pursuant to this subsection shall be
governed by the provisions of this section.
a.
On the first anniversary of the execution of the Settlement Agreement,
and every anniversary thereafter through July 1, 2025, the Borough
agrees to provide annual reporting of its Affordable Housing Trust
Fund activity to the New Jersey Department of Community Affairs, Council
on Affordable Housing, or Local Government Services, or other entity
designated by the State of New Jersey, with a copy provided to Fair
Share Housing Center (FSHC) and posted on the municipal website, using
forms developed for this purpose by the New Jersey Department of Community
Affairs (NJDCA), Council on Affordable Housing (COAH), or Local Government
Services (NJLGS). The reporting shall include an accounting of all
Affordable Housing Trust Fund activity, including the source and amount
of funds collected and the amount and purpose for which any funds
have been expended.
b.
On the first anniversary of the execution of the Settlement Agreement,
and on every anniversary of that date through July 1, 2025, the Borough
agrees to provide annual reporting of the status of all affordable
housing activity within the municipality through posting on the municipal
website with a copy of such posting provided to Fair Share Housing
Center, using forms previously developed for this purpose by COAH
or any other forms endorsed by the Special Master and FSHC.
c.
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Borough will post on its municipal website, with a copy provided to
FSHC, a status report as to its implementation of its plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether any mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the municipality, with
a copy to FSHC, regarding whether any sites no longer present a realistic
opportunity and should be replaced and whether any mechanisms to meet
unmet need should be revised or supplemented. Any interested party
may by motion request a hearing before the court regarding these issues.
d.
For the review of the very-low-income housing requirements required
by N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary
of the Settlement Agreement, executed June 21, 2018, and every third
year thereafter, the Borough 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.
a.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
1.
Affirmative marketing (N.J.A.C. 5:80-26.15), provided, however, that
the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the court;
2.
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
b.
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:
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 kitchen on the first floor; and
(b)
An adaptable toilet and bathing facility 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 all of the foregoing requirements in Subsection b2(a) through (d) cannot be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection b2(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,[2] or evidence that Haworth 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 individual who is either 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 Borough of Haworth'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 b2(f)(2) above shall be used by the Borough of Haworth 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 Borough
of Haworth 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 meets
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7,[3] and that the cost estimate of such conversion is reasonable,
payment shall be made to the Borough's Affordable Housing Trust
Fund in care of the Borough Treasurer who shall ensure that the funds
are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[3]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
(6)
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.[4]
[4]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[2]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
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 regional income levels established by COAH or
a successor entity.
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, earning 30% or less of the regional median household income,
with such 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 homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
8.
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 United States. This increase shall not
exceed 9% in any one year. Rent increases for units constructed pursuant
to low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
a.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
b.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by HUD for the Section 8 program.
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 section for a period of at least 30 years, until Haworth 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 section,
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 section 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 homeowners' 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 Subsection 30-1.15.
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 Borough Council, and subject to the court's approval,
permit a moderate-income purchaser to buy a low-income unit 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 homeowners' 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 section for a period of at least 30 years, until Haworth 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 Bergen. The deed shall identify each affordable unit
by apartment number or address, and identify whether that unit is
designated as a moderate-, low- or very-low-income unit. The affordability
designation shall not change during the term of the deed restriction.
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 section 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 section.
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 section.
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.
[Ord. No. 853 § 1]
This section shall be known, and may be cited, as the "Affirmative
Marketing Ordinance of the Borough of Haworth."
[Ord. No. 853 § 2]
The Borough of Haworth has a fair share obligation of zero units
due to lack of vacant and developable land. It will address its housing
obligation by the adoption of overlay zoning of certain property so
as to provide the option of inclusionary development. This affirmative
marketing ordinance shall apply to all developments that contain low
and moderate income housing units.
[Ord. No. 853 § 3]
The affirmative marketing plan is a regional marketing strategy
designed to attract income eligible households of all majority and
minority groups, regardless of sex, age or number of children, for
the purpose of buying or renting affordable housing units. The plan
shall address the requirements of N.J.A.C. 5:93-11. In addition, the
plan prohibits discrimination in the sale, rental, financing, etc.,
on the basis of race, color, sex, religion, handicap, age, familial
status/size or national origin. The Borough is in the housing region
consisting of Bergen, Passaic, Hudson, and Sussex Counties. The affirmative
marketing plan is a continuing program and shall meet the following
requirements:
a.
All newspaper articles, announcements and requests for applicants
for low and moderate income housing shall appear in the following
daily regional newspaper: The Bergen Record.
b.
The initial advertising of affordable housing must take the form
of at least one press release and one paid display advertisement in
each of the above newspaper(s). At a minimum, the paid display advertisement
shall include the following:
c.
Applications must be mailed to prospective applicants upon request.
d.
Public service announcements shall be made through the use of the
following radio and/or cable television stations broadcasting throughout
the region: WWRV; WVNJ; WJUX-FM; WNNJ-FM; WNNJ-AM; WNJR; Cablevision
of N.J. Inc.; TCI of Northern NJ; Service Electric Cable TV of NJ;
Cablevision of Hudson Co.; Comcast Cablevision of Jersey City.
e.
Announcements, requests for applicants and newspaper articles may
be placed in the following neighborhood-oriented weekly newspapers,
religious publications and organizational newsletters within Bergen,
Passaic, Hudson, and Sussex Counties as needed: Bergen County Community
Action Program; Bergen County United Way; Catholic Family Services;
United Way of Sussex; Catholic Community Services; Urban League of
Hudson County, Inc.; United Way of Hudson County, Inc.; Bergen County
Housing Coalition Tenant Outreach Program; Catholic Community Services
(Paramus); Spectrum for Living; Urban League For Bergen County Inc.;
NAACP - Bergen County; NAACP - Passaic Branch; NAACP of Paterson;
Hispanic Information Center of Passaic, Inc.; Jewish Family Service
of Greater Clifton-Passaic; United Way of Passaic County; Interfaith
Community Organizations; Catholic Community Services (Jersey City);
Council of Social Agencies; Englewood Hispanic Association; Hudson
County Housing Resource Center; NAACP - Jersey City Branch.
f.
Affordable housing applications, brochures, signs and/or announcements
regarding the availability of affordable housing units within the
Borough shall be forwarded to and posted at the following three-scale
employers within the region:
g.
The following is a listing of community and regional organizations
in Bergen, Passaic, Hudson, and Sussex Counties that will aid in the
affirmative marketing program with particular emphasis on contacts
that will reach out to groups that are least likely to apply for affordable
housing within the region: Bergen County Community Action Program;
Bergen County United Way; Catholic Family Services; United Way of
Sussex; Catholic Community Services; Hispanic Women's Resource
Center; Interfaith Community Services; Urban League of Hudson County,
Inc.; United Way of Hudson County, Inc.; Bergen County Housing Coalition
Tenant Outreach Program Catholic Community Services (Paramus); Spectrum
for Living; ; NAACP - Passaic Branch; NAACP of Paterson; Hispanic
Information Center of Passaic, Inc.; Jewish Family Service of Greater
Clifton-Passaic; United Way of Passaic County; Interfaith Community
Organizations; Catholic Community Services (Jersey City); Council
of Social Agencies; Englewood Hispanic Association; Hudson County
Housing Resource Center; NAACP - Jersey City Branch; Fair Share Housing
Center; New Jersey State Conference of the NAACP; Latino Action Network;
Bergen County NAACP; Bergen County Urban League; Bergen County Housing
Coalition; and Supportive Housing Association.
[Amended 11-26-2019 by Ord. No. 19-13]
h.
Affordable housing applications, brochures, announcements and/or
posters will be forwarded to and posted at the following locations:
Bergen County Workforce Investment Board; UJA of Bergen County; Newton
Housing Authority; Fair Housing Council of Northern NJ; Jersey City
Housing Authority; Hoboken Housing Authority; Bayonne Housing Authority;
Housing Authority of Hackensack; Housing Authority of Englewood; Housing
Authority of Lodi; Housing Authority of Passaic; Housing Authority
of Paterson; Housing Authority of West New York; Housing Authority
of Union City; Passaic County Public Housing Agency; City of Paterson,
Department of Community Affairs; City of Clifton Housing Authority;
Fair Share Housing Center; New Jersey State Conference of the NAACP;
Latino Action Network; Bergen County NAACP; Bergen County Urban League;
Bergen County Housing Coalition; and Supportive Housing Association.
[Amended 11-26-2019 by Ord. No. 19-13]
i.
Quarterly information circulars and applications shall be sent to
each of the following agencies for publication in their journals and
for circulating among their members: Bergen County Community Action
Program; Bergen County United Way; Catholic Family Services; United
Way of Sussex; Catholic Community Services; Hispanic Women's
Resource Center; Interfaith Community Services; Urban League of Hudson
County, Inc.; United Way of Hudson County, Inc.; Bergen County Housing
Coalition Tenant; Catholic Community Services; Spectrum for Living;
Urban League for Bergen County Inc.; NAACP - Bergen County; NAACP
- Passaic Branch; NAACP; Hispanic Information Center of Passaic, Inc.;
Jewish Family Service of Greater Clifton-Passaic; United Way of Passaic
County; Interfaith Community Organizations; Catholic Community Services;
Council of Social Agencies; Englewood Hispanic Association; Hudson
County Housing Resource Center; NAACP - Jersey City Branch; The Heightened
Independence and Progress; Jersey Journal; LaTribuna Hispana-USA;
New Jersey Herald.
j.
Additional quarterly informational circulars and applications shall
be sent to each of the nonprofit, religious, governmental, fraternal,
civic, community action agencies in Bergen, Passaic, Hudson, and Sussex
Counties listed in Sections g and h above.
k.
The random selection method that will be used to select occupants
of low and moderate income housing shall be the method typically employed
by the administrative entity and shall be in accordance with the regulations
of COAH.
l.
Piazza & Associates, Inc., will be the agency under contract
with the Borough to administer the affordable housing units. The administrative
entity has the responsibility to advertise for income-qualified low
and moderate income households; to place eligible households in low
and moderate income units upon initial occupancy; to continue to qualify
households for re-occupancy of units as they become vacant and to
enforce the terms of the deed restriction. The Borough or the administrative
entity will provide counseling services to low and moderate income
applicants on subjects such as budgeting, credit issues, mortgage
qualifications, rental lease requirements and landlord-tenant law.
In addition, the Borough is designating the Borough Administrator
as a part-time "housing officer" to act as liaison between COAH, the
municipality and the administrative entity. The municipal liaison
will be responsible for tracking the progress of affordable housing,
fielding inquiries regarding affordable housing from the public and
COAH, complying with COAH monitoring and reporting requirements as
per N.J.A.C. 5:93-11.6 and 5:93-12.1.
[Amended 11-26-2019 by Ord. No. 19-13]
m.
Developers/builders/sponsors of low and moderate income housing units
shall be required by the Borough to assist in the advertising of affordable
units in their respective developments in accordance with the preceding
paragraphs. Such advertising must be coordinated with the administrative
entity and is subject to the approval of the Borough.
n.
The Borough, in conjunction with the administrative entity, may delegate
other specific tasks to a developer/builder/sponsor (such as interviewing
applicants, pre-screening households, etc.) provided that copies of
all applications, income verification documents, sales records, etc.,
of the low and moderate income units are returned to the administrative
entity for reporting purposes and to aid with future resales.
o.
Households who live or work in the housing region of Bergen, Passaic,
Hudson, and Sussex Counties may be given preference for the affordable
housing units within the municipality. Applicants living outside the
housing region shall have an equal opportunity for units after intraregional
applicants have been processed. The Borough intends to comply with
N.J.A.C. 5:93-11.7.
p.
The affirmative marketing plan for new units shall commence 120 days
before the issuance of either temporary or permanent Certificates
of Occupancy. Affirmative marketing shall continue until all low and
moderate income housing units are initially occupied. Affirmative
marketing for existing units shall continue on an "as needed" basis
for as long as affordable units are deed restricted.
[Ord. No. 853 § 4]
This ordinance will amend the Haworth Land Use Ordinance and
will require that the developer satisfy applicable requirements of
this ordinance prior to the issuance of a building permit and prior
to the issuance of a Certificate of Occupancy.
[Ord. No. 950 §§ 1—3;
amended 11-26-2019 by Ord. No.
19-12]
The purpose of this section is to create the administrative
mechanism needed for the execution of the Borough of Haworth's
responsibility to assist in the provision of affordable housing.
a.
The Borough of Haworth shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Borough's affordable housing program, including affordability
controls; the Affirmative Marketing Plan; monitoring and reporting
requirements; and supervising the administrative agent(s). Haworth
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.
b.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Haworth,
including the following responsibilities which may not be contracted
out to the administrative agent:
1.
Serving as Haworth'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 Haworth'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 Borough of Haworth shall
designate one or more administrative agent(s) to administer and to
affirmatively market the affordable units constructed in the Borough
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 Borough 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).
d.
Compensation shall be fixed by the governing body at the time of
the appointment of the Municipal Housing Liaison.
[Ord. No. 986 § 1—20;
amended 11-26-2019 by Ord. No.
19-12]
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 N.J.A.C. 5:80-26.14, 5:80-16 and 5:80-18 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 Borough of Haworth 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 very-low-, 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 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;
6.
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Borough of Haworth when referring households
for certification to affordable units; and
7.
Notifying the following entities of the availability of affordable
housing units in the Borough of Haworth: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
Bergen County NAACP, Urban League of Bergen County, Bergen County
Housing Coalition, and Supportive Housing Association.
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 Bergen
County Register of Deeds or Bergen 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 very-low-, 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 Borough 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 and the Settlement Agreement.
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.
a.
The Borough of Haworth 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,
and due to the Borough's Settlement Agreement, must include notice
to the Fair Share Housing Center, the New Jersey State Conference
of the NAACP, the Latino Action Network, Bergen County NAACP, Urban
League of Bergen County, Bergen County Housing Coalition, and Supportive
Housing Association. It is a continuing program that directs marketing
activities toward Housing Region 1 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 1, comprised
of Bergen, Hudson, Passaic and Sussex 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 Borough of Haworth shall implement the Affirmative Marketing Plan
to assure the affirmative marketing of all affordable units.
e.
In implementing the Affirmative Marketing Plan, the administrative
agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
f.
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the administrative agent shall consider
the use of language translations where appropriate.
g.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
h.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request.
i.
In addition to other affirmative marketing strategies, the administrative
agent shall provide specific notice of the availability of affordable
housing units in Haworth, and copies of the application forms, to
the following entities: the Fair Share Housing Center, the New Jersey
State Conference of the NAACP, the Latino Action Network, Bergen County
NAACP, Urban League of Bergen County, Bergen County Housing Coalition,
and Supportive Housing Association.
j.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
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; 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 Borough of Haworth Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(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 of an innocent tenant's reasonable relocation
costs, as determined by the court.
2.
The municipality may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the First Purchase Money Mortgage and
shall constitute a lien against the low- or moderate-income unit.
(a)
The judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have his
right to possession terminated as well as his title conveyed pursuant
to the Sheriffs sale.
(b)
The proceeds of the Sheriffs 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 Sheriffs sale. In the event that
the proceeds from the Sheriffs 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 Sheriffs 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 Sheriffs sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the Sheriffs 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 Sheriffs 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.
c.
Appeals. Appeals from all decisions of an administrative agent appointed
pursuant to this section shall be filed in writing with the court.