[Ord. No. 07-2018]
As used herein the following terms shall have the following
meanings:
ACCESSORY APARTMENT
Means a self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
ACT
Means the Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Means constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
Means the entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:91, N.J.A.C. 5:93
and N.J.A.C. 5:80-26.1 et seq.
AFFIRMATIVE MARKETING
Means a regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
Means the average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
Means, a sales price or rent within the means of a low- or
moderate-income household as defined in N.J.A.C. 5:93-7.4; in the
case of an ownership unit, that the sales price for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended
and supplemented, and, in the case of a rental unit, that the rent
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12,
as may be amended and supplemented.
AFFORDABLE HOUSING DEVELOPMENT
Means a development included in the Housing Element and Fair
Share Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Means any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
Means a housing unit proposed or created pursuant to the
Act, credited pursuant to N.J.A.C. 5:93, and/or funded through an
affordable housing trust fund.
AGENCY
Means the New Jersey Housing and Mortgage Finance Agency
established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
AGE-RESTRICTED UNIT
Means a housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) the development
has been designated by the Secretary of the U.S. Department of Housing
and Urban Development as "housing for older persons" as defined in
Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
ALTERNATIVE LIVING ARRANGEMENT
Means a structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangement includes, but is not limited
to: transitional facilities for the homeless, Class A, B, C, D, and
E boarding homes as regulated by the New Jersey Department of Community
Affairs; residential health care facilities as regulated by the New
Jersey Department of Health; group homes for the developmentally disabled
and mentally ill as licensed and/or regulated by the New Jersey Department
of Human Services; and congregate living arrangements.
ASSISTED LIVING RESIDENCE
Means a facility licensed by the New Jersey Department of
Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
CERTIFIED HOUSEHOLD
Means a household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
COAH
Means the Council on Affordable Housing, which is in, but
not of, the Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
DCA
Means the State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
Means a housing unit with health and safety code violations
that require the repair or replacement of a major system. A major
system includes weatherization, roofing, plumbing (including wells),
heating, electricity, sanitary plumbing (including septic systems),
lead paint abatement and/or load bearing structural systems.
DEVELOPER
Means any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
DEVELOPMENT
Means 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.
FAIR SHARE PLAN
Means the plan that describes the mechanisms, strategies
and the funding sources, if any, by which the Borough proposes to
address its affordable housing obligation as established in the Housing
Element, including the draft ordinances necessary to implement that
plan, and addresses the requirements of N.J.A.C. 5:93-5.
HOUSING ELEMENT
Means the portion of the Borough's Master Plan, required
by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and
the Act, that includes the information required by N.J.A.C. 5:93-5.1
and establishes the Borough's fair share obligation.
INCLUSIONARY DEVELOPMENT
Means a development containing both affordable units and
market rate units. This term includes, but is not necessarily limited
to: new construction, the conversion of a non-residential structure
to residential and the creation of new affordable units through the
reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
Means a household with a total gross annual household income
equal to 50% or less of the median household income.
LOW-INCOME UNIT
Means a restricted unit that is affordable to a low-income
household.
MAJOR SYSTEM
Means the primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load bearing structural systems.
MARKET-RATE UNITS
Means housing not restricted to low- and moderate-income
households that may sell or rent at any price.
MEDIAN INCOME
Means the median income by household size for the applicable
county, as adopted annually by COAH or approved by the NJ Superior
Court.
MODERATE-INCOME HOUSEHOLD
Means a household with a total gross annual household income
in excess of 50% but less than 80% of the median household income.
NON-EXEMPT SALE
Means any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class
A beneficiary and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
Means 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).
REGIONAL ASSET LIMIT
Means 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 adopted/approved Regional Income Limits.
REHABILITATION
Means the repair, renovation, alteration or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
RENT
Means the gross monthly cost of a rental unit to the tenant,
including the rent paid to the landlord, as well as an allowance for
tenant-paid utilities computed in accordance with allowances published
by DCA for its Section 8 program. In assisted living residences, rent
does not include charges for food and services.
RESTRICTED UNIT
Means a dwelling unit, whether a rental unit or ownership
unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
SPECIAL MASTER
Means an expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
UHAC
Means the Uniform Housing Affordability Controls set forth
in N.J.A.C. 5:80-26.1 et seq.
VERY LOW-INCOME HOUSEHOLD
Means a household with a total gross annual household income
equal to 30% or less of the median household income.
WEATHERIZATION
Means building insulation (for attic, exterior walls and
crawl space), siding to improve energy efficiency, replacement storm
windows, replacement storm doors, replacement windows and replacement
doors, and is considered a major system for rehabilitation.
[Ord. No. 09-2018]
The Borough of Cape May Point has determined that it will use
the following mechanisms to satisfy its affordable housing obligations:
a. Accessory Apartment Program.
1. All accessory apartments shall meet the following conditions:
(a) Accessory apartments are permitted by the Zoning Ordinance for various
zoning districts, provided the units are affordable to low- and moderate-income
households. Accessory apartments may be developed as low-income or
moderate-income units (accessory apartments may be limited to only
low- or only moderate-income units as determined in the Fair Share
Plan).
(b) Accessory apartments shall comply with all applicable statutes and
regulations of the State of New Jersey in addition to all building
codes.
(c) At the time of initial occupancy of the unit and for at least 10
years thereafter, the accessory apartment shall be rented only to
a household which is either a low- or moderate-income household.
(d) Rents of accessory apartments shall be affordable to very low, low-
or moderate-income households as per COAH and UHAC regulations.
(e) There shall be a recorded deed or declaration of covenants and restrictions
applied to the property upon which the accessory apartment is located
running with the land and limiting its subsequent rental or sale of
the unit and the accessory apartment.
(f) The appropriate utility authority must certify that there is water
and sewer infrastructure with sufficient capacity to serve the proposed
accessory apartment. Where the proposed location is served by an individual
well and/or septic system, the additional capacity necessitated by
the new unit must meet the appropriate NJDEP standards.
(g) The Borough of Cape May Point accessory apartment program shall not
restrict the number of bedrooms in any accessory apartment.
(h) No accessory apartment created as a result of this Article or these
regulations shall exceed the gross floor area of the existing principal
dwelling on the lot.
(i) Municipal building permit fees shall be waived in all cases involving
affordable accessory apartment development under this section. An
annual license and inspection fee, if required, shall be paid by unit
owners.
2. The maximum number of creditable accessory apartments shall be equal
to no more than 10 or an amount equal to 10% of the Borough of Cape
May Point's fair share obligation, whichever is greater (additional
units may be approved by COAH if the municipality has demonstrated
successful completion of its accessory apartment program).
3. The Borough of Cape May Point shall designate an administrative entity
to administer the accessory apartment program that shall have the
following responsibilities:
(a) The Administrative Agent shall administer the accessory apartment
program, including advertising, income qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the affordable accessory
apartment program in accordance with the UHAC.
(b) The administrative entity shall only deny an application for an accessory
apartment if the project is not in conformance with COAH's requirements
and/or the provisions of this section/Article. All denials shall be
in writing with the reasons clearly stated.
(c) In accordance with COAH requirements, the Borough of Cape May Point
shall provide at least $30,000 per unit to subsidize the creation
of one very low income unit, $25,000 per unit to subsidize the creation
of each low-income accessory apartment or $20,000 per unit to subsidize
the creation of each moderate-income accessory apartment. Subsidy
may be used to fund actual construction costs and/or to provide compensation
for reduced rental rates.
4. Property owners wishing to apply to create an accessory apartment
shall submit to the administrative entity:
(a) A sketch of floor plan(s) showing the location, size and relationship
of both the accessory apartment and the primary dwelling within the
building or in another structure;
(b) Rough elevations showing the modifications of any exterior building
facade to which changes are proposed; and
(c) A site development sketch showing the location of the existing dwelling
and other existing buildings; all property lines; proposed addition,
if any, along with the minimum building setback lines; the required
parking spaces for both dwelling units; and any man-made conditions
which might affect construction.
[Ord. No. 07-2018]
The following requirements shall apply to all new or planned
developments that contain low- and moderate-income housing units.
a. Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low and moderate income units whether developed in a
single phase development, or in a multi-phase development:
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
|
b. Design. In inclusionary developments, to the extent possible, low-
and moderate- income units shall be integrated with the market units.
c. Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
d. 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.
2. In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
3. Within rental developments, of the total number of affordable rental
units, at least 13% shall be affordable to very low income households.
4. 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.
5. 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.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
e. Accessibility Requirements:
1. The first floor of all new restricted townhouse dwelling units and
all restricted multistory dwelling units attached to at least one
other dwelling unit shall be subject to the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
2. All restricted townhouse dwelling units and all restricted multistory
dwelling units attached to at least one other dwelling unit shall
have the following features:
(a) An adaptable toilet and bathing facility on the first floor;
(b) An adaptable kitchen on the first floor;
(c) An interior accessible route of travel on the first floor;
(d) An interior accessible route of travel shall not be required between
stories within an individual unit;
(e) 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
(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 the Borough 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
with the Borough of Cape May Point sufficient to install accessible
entrances in 10% of the affordable units that have been constructed
with adaptable entrances.
(3)
The funds deposited under paragraph (2) herein, shall be used
by the Borough for the sole purpose of making the adaptable entrance
of any 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 for the conversion from adaptable to accessible
entrances to the Construction Official of the Borough of Cape May
Point.
(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 Borough of Cape May Point in care of the Municipal
Treasurer who shall ensure that the funds are deposited and appropriately
earmarked for accessibility purposes.
(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.
f. 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 and by the Superior Court, utilizing the regional income limits
established.
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 low- and
moderate-income 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.
(a) At least 13% of all low- and moderate-income rental units shall be
affordable to households earning no more than 30% of median income.
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 prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
5. In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
met:
(a) A studio or efficiency unit 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 rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(a) A studio or efficiency unit shall be affordable to a one-person household;
(b) A one-bedroom unit shall be affordable to a one and one-half person
household; and
(c) A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
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
household size 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.
Income limits for all units for which income limits are not
already established through a federal program exempted from the Uniform
Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall
be updated by the Borough annually within 30 days of the publication
of determinations of median income by HUD as follows:
(a) Regional income limits shall be established for the Region 6 based
on the median income by household size, which shall be established
by a regional weighted average of the uncapped Section 8 income limits
published by HUD. To compute this regional income limit, the HUD determination
of median county income for a family of four is multiplied by the
estimated households within the county according to the most recent
decennial Census. The resulting product for each county within the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial Census in Region 6. This
quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80 percent of the regional weighted
average median income for a family of four. The income limit for a
low-income unit for a household of four shall be 50 percent of the
HUD determination of the regional weighted average median income for
a family of four. The income limit for a very low income unit for
a household of four shall be 30 percent of the regional weighted average
median income for a family of four. These income limits shall be adjusted
by household size based on multipliers used by HUD to adjust median
income by household size. In no event shall the income limits be less
than those for the previous year.
(b) The income limits calculated each year shall be the result of applying
the percentages set forth in paragraph (a) above to HUD's determination
of median income for the relevant fiscal year, and shall be utilized
until the Borough updates the income limits after HUD has published
revised determinations of median income for the next fiscal year.
(c) The Regional Asset Limit used in determining an applicant's
eligibility for affordable housing pursuant to N.J.A.C. 5:8026.16(b)3
shall be calculated by the Borough annually by taking the percentage
increase of the income limits calculated pursuant to paragraph (a)
above over the previous year's income limits, and applying the
same percentage increase to the Regional Asset Limit from the prior
year. In no event shall the Regional Asset Limit be less than that
for the previous year.
10. The rent levels of very-low-, low- and moderate-income units may
be increased annually based on the percentage increase in the Housing
Consumer Price Index for the Northeast Urban Area, upon its publication
for the prior calendar year. This increase shall not exceed nine percent
in any one year. Rents for units constructed pursuant to low income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low income housing tax credits.
11. Tenant-paid utilities that are included in the utility allowance
shall be so stated in the lease and shall be consistent with the utility
allowance approved by DCA for its Section 8 program.
g. Condominium and Homeowners Association Fees. For any affordable housing
unit that is part of a condominium association and/or homeowner's
association, the Master Deed shall reflect that the association fee
assessed for each affordable housing unit shall be established at
100% of the market rate fee.