[Ord. No. 23-2018 replaced
Article XII in entirety. Prior history includes Ord.
Nos. 2005-19, 2006-23, 2009-07, 2009-13, 18-2014]
[Ord. No. 23-2018]
This Section of the "Code of the City of Lambertville" shall
be known as the "Affordable Housing Ordinance of the City of Lambertville."
[Ord. No. 23-2018]
A.
This Section of the Lambertville Code sets forth regulations
regarding the very-low-, low-, and moderate-income housing units in
the City consistent with the provisions known as the "Substantive
Rules of the New Jersey Council on Affordable Housing", N.J.A.C. 5:93
et seq., the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C.
5:80-26.1 et seq., except where modified by the requirements for very-low
income housing as established in P.L. 2008, c.46 (the "Roberts Bill",
codified at N.J.S.A. 52:27D-329.1) as reflected in the terms of a
Settlement Agreement between the City and Fair Share Housing Center
("FSHC") such that the statutory requirement to provide very-low income
units equal to 13% of affordable units approved and constructed after
July 17, 2008, to be affordable households at 30% of the regional
median income, overrides the UHAC requirement that 10% of all low-
and moderate-income units must be affordable at 35% of the regional
median income, and the City's constitutional obligation to provide
a fair share of affordable housing for very-low-, low-, and moderate-income
households.
B.
This Ordinance is intended to assure that very-low-, low- and
moderate-income units ("affordable units") are created with controls
on affordability over time and that very-low, low- and moderate-income
households shall occupy these units. This Ordinance shall apply to
all inclusionary developments and 100% affordable developments (including
those funded with low-income housing tax credit financing) except
where inconsistent with applicable law.
C.
This Ordinance implements and incorporates the Fair Share Plan
and addresses the requirements of N.J.A.C. 5:93, as may be amended
and supplemented.
[Ord. No. 23-2018]
The City shall comply with the following monitoring and reporting
requirements regarding the status of the implementation of its Court-approved
Housing Element and Fair Share Plan:
A.
Beginning on May 22, 2018, and on every anniversary of that
date through May 22, 2025, the City agrees to provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs ("NJDCA"), Council on Affordable Housing ("COAH"),
or Local Government Services ("NJLGS"), or other entity designated
by the State of New Jersey, with a copy provided to FSHC and posted
on the municipal website, using forms developed for this purpose by
the NJDCA, COAH, or NJLGS. The reporting shall include an accounting
of all Affordable Housing Trust Fund activity, including the source
and amount of funds collected and the amount and purpose for which
any funds have been expended.
B.
Beginning on May 22, 2018, and on every anniversary of that
date through May 22, 2025, the City 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 FSHC, 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 City 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. 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. Any interested party may by motion request a hearing
before the Court regarding these issues.
D.
By May 22, 2021, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the City 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.
[Ord. No. 23-2018]
The following terms when used in this Ordinance shall have the
meanings given in this Section:
Means the Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Means constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
Means the entity designated by the City to administer affordable
units in accordance with this Ordinance, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26.1).
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.
Means the average percentage of median income at which new
restricted units in an affordable housing development are affordable
to low- and moderate-income households.
Means, a sales price or rent level that is within the means
of a low- or moderate- income household as defined within N.J.A.C.
5:93-7.4, and, in the case of an ownership unit, that the sales price
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6,
as may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
Means a development included in or approved pursuant to the
Housing Element and Fair Share Plan or otherwise intended to address
the City's fair share obligation, and includes, but is not limited
to, an inclusionary development, a municipal construction project
or a 100% affordable housing development.
Means any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
Means 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.
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 wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
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.).
Means 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.
Means 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.
Means a household that has been certified by an Administrative
Agent as a very-low, low-income household or moderate-income household.
Means the New Jersey Council on Affordable Housing, as established
by the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.)
which has primary jurisdiction for the administration of housing obligations
in accordance with sound regional planning consideration in the State.
Means the State of New Jersey Department of Community Affairs.
Means 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.
Means 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.
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.
Means money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.8.
Means the assessed value of a property divided by the current
average ratio of assessed to true value for the municipality in which
the property is situated, as determined in accordance with sections
1, 5, and 6 of P.L.1973, c.123 (C.54:1-35a through C.54:1-35c).
Means those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
Means a development containing both affordable units and
market rate units. This term includes, but is not limited to: new
construction, the conversion of a non-residential structure to residential
use and the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
Means a household with a total gross annual household income
equal to 50% or less of the regional median household income by household
size.
Means a restricted unit that is affordable to a low-income
household.
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 and load bearing structural
systems.
Means housing not restricted to low- and moderate-income
households that may sell or rent at any price.
Means the median income by household size for the applicable
housing region, as adopted annually by the City pursuant to this ordinance,
by COAH or a successor entity approved by the Court.
Means 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.
Means a restricted unit that is affordable to a moderate-income
household.
Means any sale or transfer of ownership other than the transfer
of ownership between spouses; 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.
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).
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 duly adopted Regional Income Limits published annually
by COAH or a successor entity.
Means the repair, renovation, alteration or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
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.
Means 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.
Means the Uniform Housing Affordability Controls set forth
in N.J.A.C. 5:80-26.1, et seq.
Means a household with a total gross annual household income
equal to 30% or less of the regional median household income by household
size.
Means a restricted unit that is affordable to a very-low-income
household.
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 purposes of a rehabilitation
program.
[Ord. No. 23-2018]
A.
The provisions of this Ordinance shall apply to all affordable
housing developments and affordable housing units that currently exist
and that are proposed to be created within the City of Lambertville
pursuant to the City's most recently adopted Housing Element and Fair
Share Plan.
B.
Moreover, this Ordinance shall apply to all developments that
contain very-low-, low-and moderate-income housing units, including
any currently unanticipated future developments that will provide
very-low, low- and moderate-income housing units.
C.
Projects receiving Federal Low Income Housing Tax Credit financing
shall comply with the income and bedroom distribution requirements
of UHAC at N.J.A.C. 5:80-26.3 (with the exception that the UHAC requirement
for 10% of the affordable units in rental projects being required
to be at 35% of median income be modified as required by the statutory
requirement, N.J.S.A. 52:27D-329.1 to 13% of affordable units in such
projects shall be required to be at 30% of median income) and the
length of the affordability controls applicable to such projects shall
be not less than a thirty-year compliance period plus a fifteen-year
extended use period.
[Ord. No. 23-2018; amended 12-16-2021 by Ord. No.
27-2021]
A.
Purpose. The purpose of this mandatory affordable housing set-aside
ordinance is two-fold:
1.
One, ensure that multi-family residential development or combined
multi-family residential/non-residential development, providing a
minimum of five new housing units at a density of six or more units
per acre that results from a rezoning, variance, redevelopment plan,
rehabilitation plan, or other zoning or land use incentive produces
affordable housing at an appropriate set-aside rate of 20%, consistent
with applicable law; and
2.
Two, ensure consistent with the New Jersey Supreme Court's
directives in Mount Laurel II, that opportunities for affordable housing
are captured as land becomes available for development and redevelopment
(including as a result of private acquisition or assembly of a tract,
fires and the resulting demolition of structures, and redevelopment,
either public or private) within the boundaries of the City, which
has an unmet need obligation, see S. Burlington Cty. NAACP v. Mount
Laurel, 92 N.J. 158, 248 n.21 (1983) (Mount Laurel II) and the Court's
decision with regards to the initial Fairness and Compliance Hearing
held before the Court on September 13, 2018 and the Consent Order
Approving Amended Settlement and Agreement and Conditional Judgment
of Mount Laurel Compliance and Repose entered June 23, 2020, in In
the Matter of the City of Lambertville, County of Hunterdon, Docket
No. HNT-L-311-15.
B.
Applicability of mandatory affordable housing set-aside. This
mandatory affordable housing set-aside ordinance shall apply as follows:
1.
A minimum affordable housing set-aside of 20% shall be required
to be included within a development, except as noted herein, throughout
the entirety of the municipality when a multi-family residential,
or combined multi-family residential/non-residential development,
providing a minimum of five new housing units at a density of six
or more units per acre, is created through:
2.
Within the lands bound between the Delaware River to the west,
the municipal boundary to the south, and the lands to the east bound
by eastern right-of-way of N.J.S.H. Route 29, the eastern right-of-way
of Route 165, the eastern right-of-way of N.J.S.H. Route 179, Washington
Street between N.J.S.H. Route 179 and York Street, the eastern right-of-way
of North Franklin Street, the southern lot line of Block 1002, Lot
43 (Ely Field), the eastern right-of-way of North Main Street (N.J.S.H.
Route 29), and the municipal boundary to the north, and also including
the tax lots between North Franklin Street and where York Street intersects
with Washington Street (Block 1002, Lots 58 through 63), and the tax
lots immediately east of North Franklin Street between York Street
and Block 1002, Lot 43 (Ely Field) (Block 1002, Lots 45.01, 45.02,
and 46 through 57), any residential development, except as noted herein,
providing a minimum of five new housing units at a density of six
or more units per acre that requires site plan or subdivision approval
shall provide a minimum affordable housing set-aside of 20%, to be
included within the development.
[Amended 7-21-2022 by Ord. No. 17-2022]
a.
A developer subject to this mandatory affordable
housing set-aside ordinance may request, and the approving authority
at its discretion may grant, additional incentives for the production
of affordable housing, including but not limited to increased density,
an increase in the maximum permitted number of dwelling units within
a building, and/or a reduction in the off-street parking spaces otherwise
required.
C.
Exemptions. This mandatory affordable housing set-aside ordinance
shall not apply to sites already zoned for inclusionary residential
development with an affordable housing set-aside or for which an inclusionary
residential redevelopment plan has been adopted consistent with the
City's Court-approved Housing Plan Element and Fair Share Plan,
adopted in accordance with the settlement agreement with Fair Share
Housing Center, which sites shall comply with the applicable adopted
zoning.
D.
Other terms applicable. The following terms shall apply to Lambertville's
mandatory affordable housing set-aside ordinance:
1.
All subdivision and site plan approvals of qualifying developments
identified in 1200.6B1 and 1200.6B2 shall be conditioned upon compliance
with the provisions of this mandatory affordable housing set-aside
ordinance.
2.
No subdivision shall be permitted or approved for the purpose
of avoiding compliance with this requirement. A developer may not,
for example, subdivide a project into two lots and then plan each
of them to produce a number of units just below the threshold.
3.
In the event the number of affordable housing units to be provided
includes a fraction, the number shall be rounded up if the fractional
amount is 0.5 or greater and rounded down if the fractional amount
is less than 0.5. The developer shall provide a payment in lieu of
constructing affordable units for the fraction of a unit less than
0.5.
5.
This requirement shall not give any developer the right to any
such rezoning, variance, redevelopment designation or redevelopment
or rehabilitation plan approval, or any other such relief, or establish
any obligation on the part of the City to grant such rezoning, variance,
redevelopment designation, redevelopment or rehabilitation plan approval,
or other such or further relief.
6.
No developer may make a payment in lieu of constructing affordable
units on site, except for fractional units as noted in paragraph 3,
above.
[Ord. No. 23-2018]
A.
The administration of an alternative living arrangement shall
be in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
B.
With the exception of units established with capital funding
through a twenty-year operating contract with the Department of Human
Services, Division of Developmental Disabilities, alternative living
arrangements shall have at least thirty year controls on affordability
in accordance with UHAC, unless an alternative commitment is approved
by the Court.
C.
The service provider for the alternative living arrangement
shall act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
[Ord. No. 23-2018]
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
|
[Ord. No. 23-2018; amended 12-16-2021 by Ord. No.
27-2021]
A.
Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units:
1.
All affordable units created shall fully comply with the Uniform
Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq. ("UHAC"),
including but not limited to the required bedroom and income distribution,
with the sole exception that 13% of the affordable units shall be
required to be restricted for very-low-income households earning 30%
or less of the median income pursuant to the Fair Housing Act, N.J.S.A.
52:27D-301, et seq. ("FHA").
2.
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.
3.
At least 50% of the affordable units in each bedroom category
(1BR, 2BR and 3 BR) within a development shall be affordable to low-income
households, inclusive of at least 13% of units affordable to very-low-income
households.
4.
In each development that includes affordable housing, 13% of
the restricted units overall shall be very-low-income units, and these
very-low-income units shall be counted toward the 50% low-income requirement.
The very-low-income units shall be provided as follows: in developments
that produce one very-low-income unit, the very-low-income unit shall
be a two- or three-bedroom unit; in developments that produce two
very-low-income units, no more than one of the very-low-income units
may be a one-bedroom unit; and in developments that produce three
or more very-low-income units, an equal number of very-low-income
units shall be provided within each bedroom distribution, and any
additional very-low-income units shall be two- or three-bedroom units.
5.
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 very-low-, low- and
moderate-income units;
b.
At least 30% of all very-low-, low- and moderate-income
units shall be two bedroom units;
c.
At least 20% of all very-low-, 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.
6.
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
very-low-, low- and moderate-income units within the inclusionary
development. This standard may be met by having all one-bedroom units
or by having a two-bedroom unit for each efficiency unit.
B.
Accessibility Requirements:
1.
The first floor of all restricted townhouse dwelling units and
all restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free SubCode, N.J.A.C.
5:23-7 and the following:
2.
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
a.
An adaptable toilet and bathing facility on the
first floor; and
b.
An adaptable kitchen on the first floor; and
c.
An interior accessible route of travel on the first
floor; and
d.
An adaptable room that can be used as a bedroom,
with a door or the casing for the installation of a door, on the first
floor; and
e.
If not all of the foregoing requirements in B2a
through d can be satisfied, then an interior accessible route of travel
must be provided between stories within an individual unit, but if
all of the terms of B2a through d above have been satisfied, then
an interior accessible route of travel shall not be required between
stories within an individual unit; and
f.
An accessible entranceway as set forth at P.L. 2005,
c. 350 (N.J.S.A. 52:27D-311a, et seq.) and the Barrier Free SubCode,
N.J.A.C. 5:23-7, or evidence that the City has collected funds from
the developer sufficient to make 10% of the adaptable entrances in
the development accessible:
(1)
Where a unit has been constructed with an adaptable
entrance, upon the request of a disabled person who is purchasing
or will reside in the dwelling unit, an accessible entrance shall
be installed.
(2)
To this end, the builder of restricted units shall
deposit funds within the City of Lambertville'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 paragraph f(2) above
shall be used by the City of Lambertville 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
City for the conversion of adaptable to accessible entrances.
(5)
Once the Construction Official has determined that
the design plan to convert the unit entrances from adaptable to accessible
meet the requirements of the Barrier Free SubCode, N.J.A.C. 5:23-7,
and that the cost estimate of such conversion is reasonable, payment
shall be made to the City's Affordable Housing Trust Fund in
care of the City's Director of Finance, or their designee, who
shall ensure that the funds are deposited into the Affordable Housing
Trust Fund and appropriately earmarked.
g.
Full compliance with the foregoing provisions shall
not be required where an entity can demonstrate that it is "site impracticable"
to meet the requirements. Determinations of site impracticability
shall be in compliance with the Barrier Free SubCode, N.J.A.C. 5:23-7.
C.
Design:
1.
In inclusionary developments, to the greatest extent possible,
very-low-, low- and moderate-income units shall be integrated with
the market units, and the affordable units shall not be concentrated
in separate building(s) or in separate area(s) from the market-rate
units so they are not situated so as to be in less desirable locations
than the other units in the development. In buildings with multi-family
dwelling units, this shall mean that the affordable units shall be
generally distributed within each building with market-rate units.
2.
In inclusionary developments, very-low-, low- and moderate-income
residents shall have full and equal access to all of the amenities,
common areas, recreation areas and facilities, public facilities,
public transportation, and shopping facilities as do the residents
of the market units.
D.
Maximum Rents and Sales Prices:
1.
In establishing rents and sales prices of affordable housing
units, the Administrative Agent shall follow the procedures set forth
in UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures as approved by the Court and detailed herein.
a.
"Regional income limits shall be established for
the region that the City is located within (i.e. Region 3) 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 the City's
housing region. This quotient represents the regional weighted average
of median income for a household of four. The income limit for a moderate-income
unit for a household of four shall be 80% 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% 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% 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 Regional Asset Limit used in determining an
applicant's eligibility for affordable housing pursuant to N.J.A.C.
5:80-26.16(b)3 shall be calculated by Lambertville annually by taking
the percentage increase of the income limits calculated pursuant to
paragraph 1) 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.
2.
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
3.
The developers and/or municipal sponsors of restricted rental
units shall establish at least one rent for each bedroom type for
both low-income and moderate-income units, provided that at least
13% of all low- and moderate-income rental units shall be affordable
to very-low-income households, which very-low-income units shall be
part of the low-income requirement.
4.
The maximum sales price of restricted ownership units within
each affordable development shall be affordable to households earning
no more than 70% of median income, and each affordable development
must achieve an affordability average of 55% for restricted ownership
units; in achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
5.
In determining the initial sales prices and rent levels for
compliance with the affordability average requirements for restricted
units other than assisted living facilities and age-restricted developments,
the following standards shall be used:
a.
A studio shall be affordable to a one-person household;
b.
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
c.
A two-bedroom unit shall be affordable to a three-person
household;
d.
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
e.
A four-bedroom unit shall be affordable to a six-person
household.
6.
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
7.
The initial purchase price for all restricted ownership units
shall be calculated so that the monthly carrying cost of the unit,
including principal and interest (based on a mortgage loan equal to
95% of the purchase price and the Federal Reserve H.15 rate of interest),
taxes, homeowner and private mortgage insurance and condominium or
homeowner association fees do not exceed 28% of the eligible monthly
income of the appropriate size household as determined under N.J.A.C.
5:80-26.4, as may be amended and supplemented; provided, however,
that the price shall be subject to the affordability average requirement
of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
8.
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
9.
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the Administrative Agent be lower
than the last recorded purchase price.
10.
The rents of very-low-, low- and moderate-income
units may be increased annually based on the permitted percentage
increase in the Housing Consumer Price Index for the Northeast Urban
Area. This increase shall not exceed 9% in any one year. 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.
[Ord. No. 23-2018]
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.
[Ord. No. 23-2018]
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:
[Ord. No. 23-2018]
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 Ordinance for a period of at least 30 years, until the City
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 non-restricted, 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 non-exempt sale after the unit's
release from the restrictions set forth in this Ordinance, an amount
equal to the difference between the unit's non-restricted 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 Ordinance 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.
[Ord. No. 23-2018]
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B.
The Administrative Agent shall approve all resale prices, in
writing and in advance of the resale, to assure compliance with the
foregoing standards.
C.
The master deeds of inclusionary developments shall provide
no distinction between the condominium or homeowner association fees
and special assessments paid by low- and moderate-income purchasers
and those paid by market purchasers.
D.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom. See Section 1200.16.
[Ord. No. 23-2018]
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 Governing Body, and subject to the Court's approval,
permit a moderate-income purchaser to buy a low-income unit if and
only if the Administrative Agent can demonstrate that there is an
insufficient number of eligible low-income purchasers in the housing
region to permit prompt occupancy of the unit and all other reasonable
efforts to attract a low income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
C.
A certified household that purchases a restricted ownership
unit must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
D.
The Administrative Agent shall certify a household as eligible
for a restricted ownership unit when the household is a low-income
household or a moderate-income household, as applicable to the unit,
and the estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
[Ord. No. 23-2018]
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).
[Ord. No. 23-2018]
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.
[Ord. No. 23-2018]
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 Ordinance for a period of at least 30 years, until the City
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 Somerset. 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 Ordinance despite the occurrence of any of the following
events:
[Ord. No. 23-2018]
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 Ordinance.
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 Ordinance.
[Ord. No. 23-2018]
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.
C.
The applicant shall file documentation sufficient to establish
the existence of the circumstances in A,1 through B,5 above with the
Administrative Agent, who shall counsel the household on budgeting.
[Ord. No. 23-2018]
A.
The City shall appoint a specific municipal employee to serve
as a Municipal Housing Liaison responsible for overseeing the City's
affordable housing program, including overseeing the administration
of affordability controls on the affordable units and the affirmative
marketing of available affordable units in accordance with the City's
Affirmative Marketing Plan; fulfilling monitoring and reporting requirements;
and supervising Administrative Agent(s). The City of Lambertville
shall adopt this Ordinance which creates the position of Municipal
Housing Liaison and the City of Lambertville shall adopt a Resolution
which appoints the person to fulfill the position of Municipal Housing
Liaison. The Municipal Housing Liaison shall be appointed by the governing
body and may be a full or part time municipal employee. The Municipal
Housing Liaison shall be approved by the Court and shall be duly qualified
through a training program sponsored by Affordable Housing Professionals
of New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the City
of Lambertville, including the following responsibilities, which may
not be contracted out to the Administrative Agent:
1.
Serving as The City of Lambertville'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 the City of
Lambertville's Fair Share Plan;
3.
Compiling, verifying, submitting and posting all monitoring
reports as required by the Court and by this Ordinance;
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 City shall designate
one or more Administrative Agent(s) to administer and to affirmatively
market the affordable units constructed in the City in accordance
with UHAC and this Ordinance. 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 City 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).
[Ord. No. 23-2018; amended12-16-2021 by Ord. No.
27-2021]
An Administrative Agent shall be an independent entity serving
under contract to and reporting to the municipality. The fees of the
Administrative Agent shall be paid by the owners of the affordable
units for which the services of the Administrative Agent are required.
The Administrative Agent shall perform the duties and responsibilities
of an Administrative Agent as set forth in UHAC, including those set
forth in Sections 5:80-26.14, 16 and 18 thereof, which includes:
A.
Affirmative Marketing:
1.
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the City and the provisions of N.J.A.C. 5:80-26.15 and applicable
law. The affirmative marketing shall include the community and regional
organizations included in the City’s approved Affirmative Marketing
Plan and identified in the January 29, 2020 Settlement Agreement with
Fair Share Housing Center, and it shall also include posting of all
affordable units on the New Jersey Housing Resource Center website
in accordance with applicable law; and
2.
Providing counseling or contracting to provide counseling services
to very-low-, low-and moderate-income applicants on subjects such
as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
B.
Household Certification:
1.
Soliciting, scheduling, conducting and following up on interviews
with interested households;
2.
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate-income unit;
3.
Providing written notification to each applicant as to the determination
of eligibility or non-eligibility;
4.
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
5.
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
6.
Employing a random selection process as provided in the Affirmative
Marketing Plan of the City when referring households for certification
to affordable units; and
7.
Notifying the following entities of the availability of affordable
housing units in the City: Fair Share Housing Center, the New Jersey
State Conference of the NAACP, including the New Brunswick, Plainfield
Area, Perth Amboy and Metuchen/Edison branches, the Latino Action
Network, NORWSCAP, the Supportive Housing Association, and the Central
Jersey Housing Resource Center.
C.
Affordability Controls:
1.
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
2.
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
3.
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Hunterdon
County Register of Deeds or Hunterdon County Clerk's office after
the termination of the affordability controls for each restricted
unit;
4.
Communicating with lenders regarding foreclosures; and
5.
Ensuring the issuance of Continuing Certificates of Occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
D.
Resales and Re-rentals:
1.
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or re-rental; and
2.
Instituting and maintaining an effective means of communicating
information to low- (or very low-) and moderate-income households
regarding the availability of restricted units for resale or re-rental.
E.
Processing Requests from Unit Owners:
1.
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this Ordinance;
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 Governing Body and the Court, setting forth
procedures for administering the affordability controls.
G.
Additional Responsibilities:
a.
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
b.
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 Ordinance.
c.
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
[Ord. No. 23-2018]
A.
The City shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of the Court, which is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B.
The Affirmative Marketing Plan is a regional marketing strategy
designed to attract buyers and/or renters of all majority and minority
groups, regardless of race, creed, color, national origin, ancestry,
marital or familial status, gender, affectional or sexual orientation,
disability, age or number of children to housing units which are being
marketed by a developer, sponsor or owner of affordable housing. The
Affirmative Marketing Plan is intended to target those potentially
eligible persons who are least likely to apply for affordable units
in that region. It is a continuing program that directs marketing
activities toward Housing Region 3 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 3, comprised
of Hunterdon, Middlesex, and Somerset 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 re-rentals. The Administrative Agent designated by
the City 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 City, and copies of the application forms, to the
following entities: Fair Share Housing Center, the New Jersey State
Conference of the NAACP, including the New Brunswick, Plainfield Area,
Perth Amboy and Metuchen/Edison branches, the Latino Action Network,
NORWSCAP, the Supportive Housing Association, and the Central Jersey
Housing Resource Center.
J.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
[Ord. No. 23-2018]
A.
Upon the occurrence of a breach of any of the regulations governing
an affordable unit by an Owner, Developer or Tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B.
After providing written notice of a violation to an Owner, Developer
or Tenant of a low- or moderate-income unit and advising the Owner,
Developer or Tenant of the penalties for such violations, the municipality
may take the following action(s) against the Owner, Developer or Tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
1.
The municipality may file a court action pursuant to N.J.S.A.
2A:58-11 alleging a violation or violations of the regulations governing
the affordable housing unit. If the Owner, Developer or Tenant is
adjudged by the Court to have violated any provision of the regulations
governing affordable housing units the Owner, Developer or Tenant
shall be subject to one or more of the following penalties, at the
discretion of the Court:
a.
A fine of not more than $500 per day or imprisonment
for a period not to exceed 90 days, or both, provided that each and
every day that the violation continues or exists shall be considered
a separate and specific violation of these provisions and not a continuation
of the initial offense;
b.
In the case of an Owner who has rented a low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Municipality Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
c.
In the case of an Owner who has rented a low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
2.
The municipality may file a court action in the Superior Court
seeking a judgment that would result in the termination of the Owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the First Purchase Money Mortgage and
shall constitute a lien against the low- or moderate-income unit.
a.
The judgment shall be enforceable, at the option
of the municipality, by means of an execution sale by the Sheriff,
at which time the low- and moderate-income unit of the violating Owner
shall be sold at a sale price which is not less than the amount necessary
to fully satisfy and pay off any First Purchase Money Mortgage and
prior liens and the costs of the enforcement proceedings incurred
by the municipality, including attorney's fees. The violating Owner
shall have his right to possession terminated as well as his title
conveyed pursuant to the Sheriff's sale.
b.
The proceeds of the Sheriff's sale shall first be
applied to satisfy the First Purchase Money Mortgage lien and any
prior liens upon the low- and moderate-income unit. The excess, if
any, shall be applied to reimburse the municipality for any and all
costs and expenses incurred in connection with either the court action
resulting in the judgment of violation or the Sheriff's sale. In the
event that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating Owner
shall be personally responsible for the full extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the Owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the Owner shall make a claim with the municipality for such.
Failure of the Owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the Owner or forfeited to the
municipality.
c.
Foreclosure by the municipality due to violation
of the regulations governing affordable housing units shall not extinguish
the restrictions of the regulations governing affordable housing units
as the same apply to the low- and moderate-income unit. Title shall
be conveyed to the purchaser at the Sheriff's sale, subject to the
restrictions and provisions of the regulations governing the affordable
housing unit. The Owner determined to be in violation of the provisions
of this plan and from whom title and possession were taken by means
of the Sheriff's sale shall not be entitled to any right of redemption.
d.
If there are no bidders at the Sheriff's sale, or
if insufficient amounts are bid to satisfy the First Purchase Money
Mortgage and any prior liens, the municipality may acquire title to
the low- and moderate-income unit by satisfying the First Purchase
Money Mortgage and any prior liens and crediting the violating owner
with an amount equal to the difference between the First Purchase
Money Mortgage and any prior liens and costs of the enforcement proceedings,
including legal fees and the maximum resale price for which the low-and
moderate-income unit could have been sold under the terms of the regulations
governing affordable housing units. This excess shall be treated in
the same manner as the excess which would have been realized from
an actual sale as previously described.
e.
Failure of the low- and moderate-income unit to
be either sold at the Sheriff's sale or acquired by the municipality
shall obligate the Owner to accept an offer to purchase from any qualified
purchaser which may be referred to the Owner by the municipality,
with such offer to purchase being equal to the maximum resale price
of the low- and moderate-income unit as permitted by the regulations
governing affordable housing units.
f.
The Owner shall remain fully obligated, responsible
and liable for complying with the terms and restrictions of governing
affordable housing units until such time as title is conveyed from
the Owner.
[Ord. No. 23-2018]
A.
Purpose:
1.
In Holmdel Builder's Association v. Holmdel Township, 121 N.J.
550 (1990), the New Jersey Supreme Court determined that mandatory
development fees are authorized by the Fair Housing Act of 1985 (the
Act), N.J.S.A. 52:27D-301 et seq., and the State Constitution, subject
to COAH's adoption of rules.
2.
COAH was authorized by P.L. 2008, c. 46, Section 8 (N.J.S.A.
52:27D-329.2), and the Statewide Nonresidential Development Fee Act
(N.J.S.A. 40:55D-8.1 through 40:55D-8.7) to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that are under the jurisdiction of
COAH or a court of competent jurisdiction and have a COAH- or court-approved
spending plan may retain fees collected from nonresidential development.
3.
In Re: Adoption of N.J.A.C. 5:96 and 5:97 by the New Jersey
Council on Affordable Housing, 221 N.J. 1 (2015), also known as the
"Mount Laurel IV" decision, the Supreme Court remanded COAH's duties
to the Superior Court. As a result, affordable housing development
fee collections and expenditures from the municipal affordable housing
trust funds to implement municipal Third Round Fair Share Plans through
July 7, 2025 are under the Court's jurisdiction and are subject to
approval by the Court.
4.
This section establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance with P.L. 2008, c. 46, Sections 8 and 32 through
38. Fees collected pursuant to this section shall be used for the
sole purpose of providing low- and moderate-income housing. This chapter
shall be interpreted within the framework of COAH's rules on development
fees, codified at N.J.A.C. 5:93-8.
B.
Basic Requirements:
1.
COAH had previously approved ordinances adopting and amending
Section 1201, which established the City's affordable housing trust
fund. The City's development fee ordinance which has been further
amended remains effective pursuant to the Superior Court's jurisdiction
in accordance with N.J.A.C. 5:93.8.
2.
At such time that the Court approves the City's Amended Third
Round Housing Element and Fair Share Plan and the Amended Third Round
Spending Plan, the City may begin spending development fees in conformance
with N.J.A.C. 5:93-8 for the new 2018 Plan activities.
C.
Residential Development Fees:
1.
Imposed fees.
a.
Within all Zoning Districts, residential developers,
except for developers of the types of development specifically exempted
below, shall pay a fee of 1.5% of the equalized assessed value for
residential development, provided no increased density is permitted.
b.
When an increase in residential density pursuant
to N.J.S.A. 40:55D-70d(5) (known as a "d" variance) has been permitted,
developers may be required to pay a development fee of 6% of the equalized
assessed value for each additional unit that may be realized. However,
if the zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the base density for the
purposes of calculating the bonus development fee shall be the highest
density permitted by right during the two-year period preceding the
filing of the variance application. Example: If an approval allows
four units to be constructed on a site that was zoned for two units,
the fees could equal 1.5% of the equalized assessed value on the first
two units; and the specified higher percentage up to 6% of the equalized
assessed value for the two additional units, provided zoning on the
site has not changed during the two-year period preceding the filing
of such a variance application.
2.
Eligible exactions, ineligible exactions and exemptions for
residential development.
a.
Affordable housing developments, developments where
the developer is providing for the construction of affordable units
elsewhere in the municipality, and developments where the developer
has made a payment in lieu of on-site construction of affordable units
shall be exempt from development fees.
b.
Developments that have received preliminary or final
site plan approval prior to the adoption of a municipal development
fee ordinance shall be exempt from development fees, unless the developer
seeks a substantial change in the approval. Where a site plan approval
does not apply, a zoning and/or building permit shall be synonymous
with preliminary or final site plan approval for this purpose. The
fee percentage shall be vested on the date that the building permit
is issued.
c.
In addition to the construction of new principal
and/or accessory buildings, development fees shall be imposed and
collected for the construction of additions or expansions to existing
buildings, for the change or conversion of an existing building to
accommodate a more intense use, and/or for the demolition and replacement
of an existing building provided that:
(1)
The development fee shall be calculated on the
increase in the equalized assessed value of the improved building.
(2)
No development fee shall be collected for a demolition
and replacement of a residential building resulting from a natural
disaster.
(3)
No development fee shall be collected for the construction
of an "accessory structure" which is not a "building" as these terms
are defined in the City "Land Development Ordinance."
D.
Nonresidential Development Fees:
1.
Imposed fees.
a.
Within all zoning districts, nonresidential developers,
except for developers of the types of development specifically exempted,
shall pay a fee equal to 2.5% of the equalized assessed value of the
land and improvements for all new nonresidential construction on an
unimproved lot or lots.
b.
Nonresidential developers, except for developers
of the types of development specifically exempted, shall also pay
a fee equal to 2.5% of the increase in equalized assessed value resulting
from any additions to existing structures to be used for nonresidential
purposes.
c.
Development fees shall be imposed and collected
when an existing structure is demolished and replaced. The development
fee of 2.5% shall be calculated on the difference between the equalized
assessed value of the preexisting land and improvement and the equalized
assessed value of the newly improved structure, i.e., land and improvement,
at the time final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
2.
Eligible exactions, ineligible exactions and exemptions for
nonresidential development.
a.
The nonresidential portion of a mixed-use inclusionary
or market rate development shall be subject to the 2.5% development
fee, unless otherwise exempted below.
b.
The 2.5% fee shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within existing
footprint, reconstruction, renovations and repairs.
c.
Nonresidential developments shall be exempt from
the payment of nonresidential development fees in accordance with
the exemptions required pursuant to P.L. 2008, c. 46, as specified
in the Form N-RDF, "State of New Jersey Nonresidential Development
Certification/Exemption" form. Any exemption claimed by a developer
shall be substantiated by that developer.
d.
A developer of a nonresidential development exempted
from the nonresidential development fee pursuant to P.L. 2008, c.
46, shall be subject to it at such time the basis for the exemption
no longer applies and shall make the payment of the nonresidential
development fee, in that event, within three years after that event
or after the issuance of the final certificate of occupancy of the
nonresidential development, whichever is later.
e.
If a property which was exempted from the collection
of a nonresidential development fee thereafter ceases to be exempt
from property taxation, the owner of the property shall remit the
fees required pursuant to this section within 45 days of the termination
of the property tax exemption. Unpaid nonresidential development fees
under these circumstances may be enforceable by the City as a lien
against the real property of the owner.
E.
Collection Procedures:
1.
Upon the granting of a preliminary, final or other applicable
approval for a development, the applicable approving authority shall
direct its staff to notify the Construction Official responsible for
the issuance of a building permit.
2.
For nonresidential developments only, the developer shall also
be provided with a copy of Form N-RDF, "State of New Jersey Nonresidential
Development Certification/Exemption," to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
3.
The Construction Official responsible for the issuance of a
building permit shall notify the local Tax Assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
4.
Within 90 days of receipt of that notice, the Municipal Tax
Assessor, based on the plans filed, shall provide an estimate of the
equalized assessed value of the development.
5.
The Construction Official responsible for the issuance of a
final certificate of occupancy notifies the local Assessor of any
and all requests for the scheduling of a final inspection on property
which is subject to a development fee.
6.
Within 10 business days of a request for the scheduling of a
final inspection, the Municipal Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
of the development; calculate the development fee; and thereafter
notify the developer of the amount of the fee.
7.
Should the City of Lambertville fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of Section 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
8.
50% of the development fee shall be collected at the time of
issuance of the building permit. The remaining portion shall be collected
at the issuance of the certificate of occupancy. The developer shall
be responsible for paying the difference between the fee calculated
at building permit and that determined at issuance of certificate
of occupancy.
9.
Appeal of development fees.
a.
A developer may challenge residential development
fees imposed by filing a challenge with the County Board of Taxation.
Pending a review and determination by the Board, collected fees shall
be placed in an interest-bearing escrow account by the City of Lambertville.
Appeals from a determination of the Board may be made to the Tax Court
in accordance with the provisions of the State Uniform Tax Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
b.
A developer may challenge nonresidential development
fees imposed by filing a challenge with the Director of the Division
of Taxation. Pending a review and determination by the Director, which
shall be made within 45 days of receipt of the challenge, collected
fees shall be placed in an interest-bearing escrow account by the
City of Lambertville. Appeals from a determination of the Director
may be made to the Tax Court in accordance with the provisions of
the State Uniform Tax Procedure Law, N.J.S.A. 54:48-1 et seq., within
90 days after the date of such determination. Interest earned on amounts
escrowed shall be credited to the prevailing party.
F.
Affordable Housing Trust Fund:
1.
There is hereby created a separate, interest-bearing housing
trust fund to be maintained by the Director of Finance, or their designee,
for the purpose of depositing development fees collected from residential
and nonresidential developers and proceeds from the sale of units
with extinguished controls.
2.
The following additional funds shall be deposited in the affordable
housing trust fund and shall at all times be identifiable by source
and amount:
a.
Payments in lieu of on-site construction of affordable
units;
b.
Developer-contributed funds to make 10% of the adaptable
entrances in a townhouse or other multistory attached development
accessible;
c.
Rental income from municipally operated units;
d.
Repayments from affordable housing program loans;
e.
Recapture funds;
f.
Proceeds from the sale of affordable units; and
g.
Any other funds collected in connection with the
City of Lambertville's affordable housing program.
3.
The City of Lambertville previously provided COAH with written
authorization, in the form of three-party escrow agreements between
the municipality, Bank of Princeton, and COAH, to permit COAH to direct
the disbursement of the funds as provided for in N.J.A.C. 5:93-8.
The Superior Court shall now have such jurisdiction to direct the
disbursement of the City's trust funds per N.J.A.C. 5:93-8.
4.
All interest accrued in the housing trust fund shall only be
used on eligible affordable housing activities approved by the Court.
G.
Use of Funds:
1.
The expenditure of all funds shall conform to a spending plan
approved by the Court. Funds deposited in the housing trust fund may
be used for any activity approved by the Court to address the City's
fair share obligation and may be set up as a grant or revolving loan
program. Such activities include, but are not limited to, preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable,
or regional housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or state standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:93-8.16 and
specified in the approved spending plan.
2.
Funds shall not be expended to reimburse the City of Lambertville
for past housing activities.
3.
At least 30% of all development fees collected and interest
earned shall be used to provide affordability assistance to low- and
moderate-income households in affordable units included in the municipal
Fair Share Plan. One-third of the affordability assistance portion
of development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of median income
by region.
a.
Affordability assistance programs may include down
payment assistance, security deposit assistance, low-interest loans,
rental assistance, assistance with homeowners' association or condominium
fees and special assessments, infrastructure assistance, and assistance
with emergency repairs.
b.
Affordability assistance to households earning 30%
or less of median income may include buying down the cost of low-
or moderate-income units in the municipal Fair Share Plan to make
them affordable to households earning 30% or less of median income.
c.
Payments in lieu of constructing affordable units
on site and funds from the sale of units with extinguished controls
shall be exempt from the affordability assistance requirement.
4.
The City of Lambertville may contract with a private or public
entity to administer any part of its Housing Element and Fair Share
Plan, including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:93-8.16.
5.
No more than 20% of all revenues collected from development
fees may be expended on administration, including, but not limited
to, salaries and benefits for municipal employees or consultant fees
necessary to develop or implement a new construction program, a Housing
Element and Fair Share Plan, and/or an affirmative marketing program.
In the case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with the monitoring requirements set forth in the Court-approved
December 8, 2018 executed Settlement Agreement with Fair Share Housing
Center. Legal or other fees related to litigation opposing affordable
housing sites or objecting to the Council's regulations and/or action
are not eligible uses of the affordable housing trust fund.
H.
Monitoring:
1.
On or about December 8 of each year through 2025, the City of
Lambertville shall provide annual reporting of trust fund activity
to the DCA, COAH, or NJLGS, or other entity designated by the State
of New Jersey, with a copy provided to Fair Share Housing Center and
posted on the municipal website, using forms developed for this purpose
by the DCA, COAH, or NJLGS. This reporting shall include an accounting
of all housing trust fund activity, including the collection of development
fees from residential and nonresidential developers, payments in lieu
of constructing affordable units on site, funds from the sale of units
with extinguished controls, barrier-free escrow funds, rental income,
repayments from affordable housing program loans, and any other funds
collected in connection with the City of Lambertville's housing program,
as well as to the expenditure of revenues and implementation of the
plan approved by the Court.
I.
Ongoing Collection and Expenditure of Fees:
[Amended 12-16-2021 by Ord. No. 27-2021]
1.
The ability for the City of Lambertville to impose, collect
and expend development fees shall expire with its Court-issued Judgment
of Compliance and Repose unless the City of Lambertville has filed
an adopted Housing Element and Fair Share Plan with the Court or other
appropriate jurisdiction, has filed a Declaratory Judgment Action,
and has received the Court's approval of its development fee ordinance.
If the City of Lambertville fails to renew its ability to impose and
collect development fees prior to the expiration of its Judgment of
Compliance and Repose, it may be subject to forfeiture of any or all
funds remaining within its municipal trust fund. Any funds so forfeited
shall be deposited into the "New Jersey Affordable Housing Trust Fund"
established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320). The City of Lambertville shall not impose a residential
development fee on a development that receives preliminary or final
site plan approval after the expiration of its Judgment Compliance
and Repose, nor shall the City of Lambertville retroactively impose
a development fee on such a development. The City of Lambertville
shall not expend development fees after the expiration of its Judgment
Compliance and Repose.
2.
Interest accrued in the Affordable Housing Trust Fund shall
only be used to fund eligible affordable housing activities approved
by the Court.
[Ord. No. 23-2018]
Appeals from all decisions of an Administrative Agent appointed
pursuant to this Ordinance shall be filed in writing as an action
in lieu of prerogative writ in the Superior Court, Law Division in
the County with jurisdiction over the City's affordable housing proceedings,
or in such other manner as the Superior Court may direct.
