Upon the occurrence of a breach
of any of the regulations governing the affordable unit by an owner,
developer or tenant, the Borough 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.
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 Borough 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:
The Borough 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 fine of not more than
$500 per day or imprisonment for a period not to exceed 90 days, or
both, provided that each and every day that the violation continues
or exists shall be considered a separate and specific violation of
these provisions and not a continuation of the initial offense. In
the case of an owner who has rented a low- or moderate-income unit
in violation of the regulations governing affordable housing units,
payment into the Borough of Montvale Affordable Housing Trust Fund
of the gross amount of rent illegally collected;
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.
The Borough 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:
The judgment shall be
enforceable, at the option of the Borough, 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 Borough, including attorneys' fees. The
violating owner shall have his right to possession terminated as well
as his title conveyed pursuant to the Sheriff's sale.
The proceeds of the Sheriff's
sale shall first be applied to satisfy the first purchase money mortgage
lien and any prior liens upon the low- and moderate-income unit. The
excess, if any, shall be applied to reimburse the Borough 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 Borough 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 Borough 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 Borough 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 Borough 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 Borough.
Any interest accrued or earned on such balance while being held in
escrow shall belong to and shall be paid to the Borough, whether such
balance shall be paid to the owner or forfeited to the Borough.
Foreclosure by the Borough
due to violation of the regulations governing affordable housing units
shall not extinguish the restrictions of the regulations governing
affordable housing units as the same apply to the low- and moderate-income
unit. Title shall be conveyed to the purchaser at the Sheriff's sale,
subject to the restrictions and provisions of the regulations governing
the affordable housing unit. The owner determined to be in violation
of the provisions of this plan and from whom title and possession
were taken by means of the Sheriff's sale shall not be entitled to
any right of redemption.
If there are no bidders
at the Sheriff's sale, or if insufficient amounts are bid to satisfy
the first purchase money mortgage and any prior liens, the municipality
may acquire title to the low- and moderate-income unit by satisfying
the first purchase money mortgage and any prior liens and crediting
the violating owner with an amount equal to the difference between
the first purchase money mortgage and any prior liens and costs of
the enforcement proceedings, including legal fees and the maximum
resale price for which the low- and moderate-income unit could have
been sold under the terms of the regulations governing affordable
housing units. This excess shall be treated in the same manner as
the excess which would have been realized from an actual sale as previously
described.
Failure of the low- and
moderate-income unit to be either sold at the Sheriff's sale or acquired
by the Borough shall obligate the owner to accept an offer to purchase
from any qualified purchaser which may be referred to the owner by
the Borough, with such offer to purchase being equal to the maximum
resale price of the low- and moderate-income unit as permitted by
the regulations governing affordable housing units.
The owner shall remain
fully obligated, responsible and liable for complying with the terms
and restrictions of governing affordable housing units until such
time as title is conveyed from the owner.
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed, in writing, with the Executive
Director of COAH or with the Superior Court, Bergen County Vicinage.