[Ord. #97-1080]
It is the purpose of this chapter to help in meeting Hopewell
Township's fair share housing obligation through provisions designed
to facilitate the voluntary rehabilitation of substandard housing
units occupied by low- and/or moderate-income households.
[Ord. #97-1080]
Definitions concerning housing rehabilitation not found below
are the same as those definitions that appear in the rules and regulations
adopted by the Council on Affordable Housing in N.J.A.C. 5:93 et seq.
As used in this plan:
APPLICANT
Shall mean the person or persons applying for technical or
financial assistance for housing rehabilitation according to this
plan.
COUNCIL ON AFFORDABLE HOUSING
Shall mean the Council established by the New Jersey Fair
Housing Act, N.J.S.A. 52:27D-301 et seq., and also is known as COAH.
HOUSING ADMINISTRATOR
Shall mean a person hired or appointed by the township to
perform the duties as described in this plan.
INSPECTION OFFICER
Shall mean a qualified inspector hired or appointed by the
township to perform the duties described in this plan.
LOW-INCOME HOUSEHOLD
Shall mean a household with a gross household income equal
to 50% or less of the median gross household income for households
of the same size within the housing region in which the housing is
located as determined by the Council on Affordable Housing in N.J.A.C.
5:93 et seq. or subsequent rules and regulations.
LOW-INCOME HOUSING
Shall mean housing affordable according to Federal Department
of Housing and Urban Development or other recognized standards for
home ownership and rental cost and occupied or reserved for occupancy
by a low-income household.
MODERATE-INCOME HOUSEHOLD
Shall mean a household with a gross household income equal
to or more than 50% but less than 80% of the median gross household
income for households of the same size within the housing region in
which the housing is located as determined by the Council on Affordable
Housing in N.J.A.C. 5:93 et seq. or subsequent rules and regulations.
MODERATE-INCOME HOUSING
Shall mean housing affordable according to Federal Department
of Housing and Urban Development (HUD) or other recognized standards
of home ownership and rental cost and occupied or reserved for occupancy
by a moderate-income household.
REHABILITATED UNIT
Shall mean a previously substandard housing unit that has
undergone significant renovation to meet municipal or other applicable
housing code standards as provided in this plan.
REHABILITATION PROGRAM
Shall mean the procedures and provisions of this plan to
provide technical and/or financial assistance for the rehabilitation
of substandard housing units occupied by low or moderate-income households.
SECTION 8 INCOME LIMITS
Shall mean the schedule of uncapped income limits published
by HUD that defines 50% and 80% of median income by household size.
SUBSTANDARD HOUSING UNIT
Shall mean a housing unit with health and safety code violations
that require the repair or replacement of a major system. A major
system includes a roof, plumbing (including wells), heating, electricity,
sanitary plumbing (including septic systems) and/or a loan bearing
structural system.
UTILITY ALLOWANCE
Shall mean an allowance for utilities that is consistent
with the personal benefit expense allowance for utilities as defined
by HUD or a similar allowance approved by COAH.
[Ord. #97-1080]
Only owners of dwelling units within the Township of Hopewell
are eligible for the provisions made available through this plan.
Eligibility further is determined by the following criteria:
a. The homeowner either must live in a low or moderate-income household
or must agree to rent the house to be rehabilitated to a low or moderate-income
household. Proof of the owner's or the prospective renter's
income will be required by the housing administrator.
b. A dwelling unit proposed to be rehabilitated must be considered a
substandard housing unit according to this section.
c. The rehabilitation, upon completion, will result in a safe and sound
dwelling unit and the satisfactory improvement of all deficient components
of the eligible unit to meet municipal or other applicable housing
code standards.
d. The homeowner must agree, in writing, to comply with all of the requirements
set forth in this section.
[Ord. #97-1080]
Based on the appropriations described previously, loans will
be made available from the township to eligible applicants under the
terms specified below.
a. Rental Dwelling Unit. The following terms will apply to loans made
for units that are owned be households who do not qualify as low or
moderate income but who will agree to rent the property to a low or
moderate-income household:
1. The township will make a loan to the applicant for the total amount
of the cost of rehabilitation. Although the loan will be made to the
applicant, the proceeds of the loan will be paid to the individual(s)
or business(es) who sell the material and/or labor for the project.
2. The interest rate will be fixed at an annual rate of 5%.
3. Payments on the loan principle and interest will be deferred for
a ten-year period.
4. Repayments of the loan principle and interest will become payable
in full at the end of the 10 years. Prior to the end of the loan's
ten-year life, the township's housing administrator will submit
a letter to the owner indicating the date that the loan principle
and interest will become due and when the township expects payment.
5. The owner will be required to insure the property for 80% of the
value of the improvement on the property. If necessary, the township
will also lend money for the cost of this insurance. The insurance
policy shall acknowledge the township's lien on the property.
6. The owner may not rent to a non-income-eligible household.
b. Owner-Occupied Dwelling Units. The following terms will apply to
units that are owner-occupied by low or moderate-income households:
1. The township will make a loan to the applicant for the total amount
of the cost of rehabilitation. Although the loan will be made to the
applicant, the proceeds of the loan will be paid to the individual(s)
or business(es) who sell the material and/or labor for the project.
Homeowners who contribute "sweat equity" will not receive financial
enumeration.
2. The interest rate will be fixed at an annual rate of 0%.
3. Deferred payments on principle will be made available to the applicant
as explained below.
4. Repayment of the loan will not be required until the sale of the
property. At the time of sale, the unpaid principle plus accrued interest
shall be paid to the township.
5. The owner will be required to insure the property for 80% of the
value of the improvement on the property. If necessary, the township
will also lend money for the cost of this insurance. The insurance
policy shall acknowledge the township's lien on the property.
6. The township committee may waive repayment of loan principle upon
consideration of an applicant's income level under conditions
established by the township committee.
[Ord. #97-1080]
The housing rehabilitation program will comply with all the
regulations of the Council on Affordable Housing and with the applicable
rules and regulations of any funding or other assistance programs
that are applied for and approved.
[Ord. #01-1191]
The attached Housing Rehabilitation Program "Policy and Procedural
Manual," prepared by Housing Services, Inc., and dated March, 2001,
is hereby approved and adopted by the Township of Hopewell.