[Prior history includes Ord. No. 02-22]
[Ord. No. 2018-25]
Owners of houses within the Borough of Tenafly are eligible
for the technical and financial assistance made available through
the "Housing Rehabilitation Program," provided the following:
a.
The owner must be a "very-low" (defined as households earning 30%
or less of the regional median income by household size), "low" or
"moderate" income household as defined in the applicable provisions
of the "Substantive Rules" of the New Jersey Council On Affordable
Housing (COAH) at N.J.A.C. 5:93-1, et seq. or must agree to rent the
house to be rehabilitated to either a "very-low," "low" or "moderate"
income household;
b.
The unit proposed to be rehabilitated must be a housing unit with
health and safety code violations that require the repair or replacement
of a "major system" as determined in writing by the Borough Construction
Code Official upon inspection of the unit relative to the prevailing
standards of the "BOCA National Existing Structures Code." The term
"major system" includes a roof, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems) and/or a
load bearing structural system;
c.
The proposed rehabilitation activity shall be limited to the repair
or replacement of a "major system" as defined hereinabove, and shall
not include luxury improvements, the purchase of appliances or improvements
that are strictly cosmetic;
d.
The proposed rehabilitation activity shall be deemed by the Borough
Construction Code Official, in writing, to be sufficient to remove
the applicable existing health and safety code violation(s) and to
bring the unit up to the standards of the "BOCA National Existing
Structures Code"; and
e.
The owner must agree, in writing, to comply with all of the applicable
requirements of these "Housing Rehabilitation Program" ordinance provisions.
[Ord. No. 2018-25]
a.
The rehabilitated housing unit shall be occupied only by a household
which is either a "very-low," "low" or a "moderate" income household
at the time of initial occupancy of the unit subsequent to its rehabilitation.
b.
Each rehabilitated housing unit shall, for a period of at least six
years from the date of the issuance of a Certificate of Occupancy
in the case of an owner-occupied unit, or for a period of at least
10 years in the case of a rental unit, be occupied only by a "low"
or "moderate" income household.
c.
Rents of rehabilitated housing units shall be affordable to "low"
or "moderate" income households in accordance with the applicable
provisions at N.J.A.C. 5:93-7.4 of COAH's "Substantive Rules", and
shall specifically include an allowance for utilities in accordance
with N.J.A.C. 5:93-7.4(h).
d.
There shall be a recorded deed or declaration of covenants and restrictions
applied to the property upon which the rehabilitated housing unit
is located running with the land and limiting its subsequent rental
or sale within the requirements of paragraphs b and c above.
[Ord. No. 2018-25]
The Borough of Tenafly designates the Borough Administrator,
or his substitute appointment by resolution, as the "administrative
entity" to administer the "Housing Rehabilitation Program" in accordance
with the following:
a.
The administrative entity shall administer the "Housing Rehabilitation
Program" including advertising, income qualifying prospective renters,
setting rents and annual rental increases, maintaining a waiting list,
distributing the grants and/or low interest loans, securing Certificates
of Occupancy, qualifying properties, handling application forms, filing
deed restrictions and monitoring reports, and affirmatively marketing
the "Housing Rehabilitation Program."
b.
The administrative entity shall develop the necessary application
and financial statement forms as approved by COAH to be used by an
owner of a substandard housing unit applying for a grant or loan for
the purpose of rehabilitating the unit.
c.
The administrative entity shall develop a "Rehabilitation Manual"
that complies with COAH's "Substantive Rules" and summarizes the administration
of the Tenafly Borough "Housing Rehabilitation Program." The "Rehabilitation
Manual" shall include a sample copy of the deed or declaration of
covenants and restrictions to be applied to property, and also shall
describe the following:
1.
The staff of the "Housing Rehabilitation Program" and its responsibilities;
2.
The procedures for the marketing of the "Housing Rehabilitation Program;"
3.
Eligible repairs and improvements;
4.
The amount of money available for the rehabilitation;
5.
Financing terms;
6.
Income qualification criteria;
7.
The procedures for filing applications;
8.
The procedures for review and approval of the rehabilitation work,
including interim inspections; and
9.
The length of the affordability controls on the rehabilitated unit.
d.
The administrative entity shall maintain a file on each applicant
to the Tenafly Borough "Housing Rehabilitation Program," including
the following information:
1.
The name of the applicant;
2.
If the application is not approved, the reasons for the disapproval;
3.
If the application is approved, the following shall be noted:
(a)
Proof of income eligibility (Federal tax return);
(b)
The initial inspection report of the Borough Construction Official;
(c)
The bids submitted by interested contractors;
(d)
The final contract(s) to do the required work;
(e)
Periodic reports as to the progress of the required work;
(f)
A copy of the final inspection report of the Borough Construction
Official; and
(g)
A copy of the recorded deed or declaration of covenants and
restrictions applied to the subject property.
e.
The administrative entity shall report quarterly to the Tenafly Borough
Council on the status of the "Housing Rehabilitation Program" in the
Borough, including the following information:
1.
The number of applicants who have filed for participation in the
"Housing Rehabilitation Program;"
2.
The number of units found to be substandard housing units which are
occupied by "low" or "moderate" income households; and
3.
A financial statement for each rehabilitated housing unit and each
unit to be rehabilitated, including the amount of money expended or
to be expended for actual rehabilitation activities versus administrative
costs.
[Ord. No. 2018-25]
a.
The Borough of Tenafly shall provide $10,000 per unit for up to the
maximum 23 units to be rehabilitated during the course of the "Housing
Rehabilitation Program." In accordance with COAH's "Substantive Rules,"
no more than 20% of the rehabilitation costs may be expended for administrative
expenses, and the actual rehabilitation costs shall average at least
$8,000 per unit in order to maintain eligibility for rehabilitation
credits from COAH for all of the assisted dwelling units.
b.
The Borough of Tenafly shall provide $80,000 of the total $230,000
to fund the "Housing Rehabilitation Program" within one year of the
date it receives a Judgment of Repose.
c.
During each subsequent year, for a period of four additional years,
the Borough of Tenafly shall provide $37,500 to fund the "Housing
Rehabilitation Program" provided that:
[Ord. No. 2018-25]
a.
Interested owners shall secure information and application packets
from the administrative entity via the Borough Clerk by visiting the
Tenafly Borough Municipal Building during the Borough Clerk's regularly
scheduled office hours.
b.
Interested owners shall submit a completed application to the administrative
entity via the Borough Clerk.
c.
The administrative entity shall review the application for completeness and, once an application is complete, determine whether the owner is eligible in accordance with the criteria set forth in Section 35-1201.
d.
Upon a determination by the administrative entity that the owner is eligible, the Borough Construction Code Official shall inspect the subject unit to determine whether it has the required health and safety code violations that require the repair or replacement of a "major system" as defined Section 35-1201, paragraph b, and whether or not the proposed description and cost of the work needed to improve the unit will meet the parameters of the "Housing Rehabilitation Program." The Construction Code Official's determination shall be submitted in writing to the Housing Authority.
e.
If the Borough Construction Code Official determines that the unit
is eligible for rehabilitation, but recommends an amended description
and cost estimate of the work necessary to rehabilitate the unit,
the applicant will be asked to revise the application to satisfactorily
address the comments of the Construction Code Official.
f.
When the Borough Construction Code Official determines that the unit
is eligible for rehabilitation and that the agreed upon work plan
to rehabilitate the unit is satisfactory, the Construction Code Official
shall notify the administrative entity in writing.
g.
Once the Construction Code Official has notified the administrative entity in writing that the agreed upon work plan to rehabilitate the unit is satisfactory, the administrative entity shall arrange, in consultation with the Tenafly Borough Council, for a grant and/or a low interest loan in accordance with Section 35-1206. The rehabilitation work may begin as soon as the applicant and the appropriate representative of the administrative entity have signed all necessary agreements.
h.
During the course of the completion of the rehabilitation construction,
the Borough Construction Code Official periodically shall inspect
the unit to make certain that the construction is proceeding satisfactorily
in accordance with the approved work plan.
i.
After completion of the rehabilitation construction, the Borough
Construction Code Official shall inspect the unit and, if the rehabilitation
construction has been completed satisfactorily, shall certify in writing
to the administrative entity that the rehabilitation work has been
completed in accordance with the approved work plan.
j.
Should the Borough Construction Code Official find upon inspection
that the rehabilitation work has not been completed in accordance
with the approved work plan, the Construction Code Official shall
so notify the administrative entity which will determine a suitable
remedy.
[Ord. No. 2018-25]
An eligible owner may receive a grant and/or a low interest
loan for the rehabilitation.
a.
If a low interest loan is given to the property owner, the administrative
entity shall work with the owner to establish a realistic loan repayment
schedule.
b.
If the applicant does not meet the established loan repayment schedule,
the administrative entity shall collect the uncollected funds as well
as the accumulated interest at the time of the sale of the unit.
[Ord. No. 2018-25]
The following terms shall apply to low interest loans made for
the rehabilitation of an eligible housing unit:
a.
The administrative entity may make a loan to an applicant for all
or a part of 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. Owners who contribute "sweat equity"
will not receive financial remuneration for their efforts.
b.
The interest rate will be fixed at an annual rate not to exceed 2%.
c.
Payments on the loan principal and interest will be deferred for
a ten-year period, since all units are to be rental units.
d.
Payment of the loan principal and the interest due will become payable
in full at the end of 10 years, unless the owner elects to continue
the affordability controls on the "Affordable Unit" for an appropriate
period of time, in which case the loan principal and the interest
due will become payable when the affordability controls cease. No
interest will be charged after the 10th year if the owner chooses
to defer repayment of the loan principal in exchange for extending
the affordability controls on the "Affordable Unit."
[Ord. No. 2018-25]
In the event that sufficient funds are not available to provide
grants and/or low interest loans to every eligible owner, at least
50% of the available assistance shall be awarded to applications that
will result in the rehabilitation of housing units occupied by "low"
income households.
[Ord. No. 2018-25]
The administrative entity shall be responsible to prepare and
execute a "Rehabilitation Marketing Plan" which shall, at a minimum,
consist of the following:
a.
At least one well publicized public meeting to be held in the Tenafly
Borough Municipal Building to discuss and explain the "Housing Rehabilitation
Program;"
b.
A large poster highlighting the main features of the "Housing Rehabilitation
Program" to be prepared and hung in the Tenafly Borough Municipal
Building at all times;
c.
The issuance of periodic press releases to the Bergen Record and
the official newspapers of Tenafly Borough regarding the "Housing
Rehabilitation Program" in order to promote interest in the "Housing
Rehabilitation Program;" and
d.
Program marketing materials will be prepared by the administrative
entity which shall summarize the "Housing Rehabilitation Program."
Marketing materials shall be mailed to all residents of the Borough
of Tenafly prior to March 31st of each calendar year included in COAH's
"Substantive Certification" of Tenafly Borough. The marketing materials
will discuss all terms, conditions and eligibility criteria, including
the following:
1.
The administrative entity and its responsibilities regarding the
"Housing Rehabilitation Program;"
2.
The eligible repairs and improvements to a substandard housing unit;
3.
The amount of money available for the repairs and improvements;
4.
The financing terms of low interest loans;
5.
The criteria for owner eligibility;
6.
The application procedures;
7.
The procedures for review and approval of the repairs and improvements
by the Borough Construction Code Official, including periodic inspections
of the work in progress; and
8.
The duration of the affordability controls to be contained within
the deed or the declaration of covenants and restrictions.
