The position of Municipal Housing Liaison for the Borough of Cape
May Point is hereby established. The Municipal Housing Liaison shall
be appointed by duly adopted resolution of the Borough Commission
and be subject to the approval by the Superior Court.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Borough
of Cape May Point, including the following responsibilities which
may not be contracted out to the Administrative Agent:
Serving as the municipality's primary point of contact for all
inquiries from the State, affordable housing providers, Administrative
Agents and interested households;
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing as offered or approved
by the Superior Court.
The Borough shall designate by resolution of the Borough Commission,
subject to the approval of the Superior Court, one or more Administrative
Agents to administer newly constructed affordable units in accordance
with N.J.A.C. 5:93 and UHAC.
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body and subject to approval
of the Superior Court. The Operating Manuals shall be available for
public inspection in the Office of the Municipal Clerk and in the
office(s) of the Administrative Agent(s).
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the Operating Manual, including those
set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by the Superior Court;
The Administrative Agent shall, as delegated by the Borough Commission,
have the authority to take all actions necessary and appropriate to
carry out its responsibilities, hereunder.
Upon the occurrence of a breach of any of the regulations governing
the 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, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
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 against the Owner, Developer or Tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
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
found 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 fine of not more than $500.00 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
In the case of an Owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment to the Borough of Cape May Point of the gross amount
of rent illegally collected and appropriately earmarked for affordable
housing purposes;
In the case of an Owner who has rented his or her 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.
The municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the Owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any 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- and moderate-income unit.
Such 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 the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
The proceeds of the Sheriff's sale shall first be applied to
satisfy the First Purchase Money Mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating Owner
shall be personally responsible for and to the 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.
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The Owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the First Purchase Money Mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the First Purchase Money Mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the First Purchase Money Mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the Owner to accept an offer to purchase from any qualified purchaser
which may be referred to the Owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
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.
[Ord. No. 07-2018]
Appeals from all decisions of an Administrative Agent designated
pursuant to this chapter shall be filed in writing with the Borough.
All multi-family residential development, including the residential
portion of a mixed-use project, which consists of five or more new
residential units, whether permitted by a zoning amendment, a use
variance granted by the Zoning Board, or adoption of a Redevelopment
Plan or amended Redevelopment Plan in areas in need of redevelopment
or rehabilitation, shall require that an appropriate percentage of
the residential units be set aside for low and moderate income households.
This requirement 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.
For inclusionary projects in which the low and moderate units are
to be offered for sale, the set-aside percentage should be 20 percent;
for projects in which the low and moderate income units are to be
offered for rent, the set-aside percentage should be 15 percent.
The developer shall provide that half of the low- and moderate-income
units constructed be affordable by low-income households and that
the remaining half be affordable by moderate-income households. At
least 13 percent of all restricted units shall be very low-income
units (affordable to a household earning 30 percent or less of median
income). The very-low income units shall be counted as part of the
required number of low-income units within the development.
Subdivision and site plan approval shall be denied by the board unless
the developer complies with the requirements to provide low- and moderate-income
housing pursuant to the provisions of this section. A property shall
not be permitted to be subdivided so as to avoid meeting this requirement.
The board may impose any reasonable conditions to ensure such compliance.
Nothing in this paragraph precludes the Borough from imposing an
affordable housing set aside in a development not required to have
a set-aside pursuant to this paragraph consistent with N.J.S.A. 52:27D-311(h)
and other applicable law.
This requirement does not create any entitlement for a property owner
or applicant for a zoning amendment, variance, or adoption of a Redevelopment
Plan or amended Redevelopment Plan in areas in need of redevelopment
or rehabilitation, or for approval of any particular proposed project.
This requirement does not apply to any sites or specific zones otherwise
identified in the Fair Share Plan, for which density and set-aside
standards shall be governed by the specific standards set forth therein.