The purpose of this chapter is to include provisions addressing
the Borough of Saddle River's constitutional obligation to provide
for its fair share of low- and moderate-income housing, as directed
by the Supreme Court and consistent with N.J.A.C. 5:93-1 et seq., as amended and supplemented, N.J.A.C. 5:80-26.1 et seq.,
as amended and supplemented, and the New Jersey Fair Housing Act of
1985. This chapter is intended to assure compliance with the regulations
of the Council on Affordable Housing ("COAH") set forth at N.J.A.C.
5:93-1 et seq., and the Uniform Housing Affordability Controls, N.J.A.C.
5:80-26.1 et seq., including provisions for unit affordability controls
as well as eligibility for low- and moderate-income households. This
chapter shall apply except where inconsistent with applicable law.
It is the intent of this chapter to regulate the development
and management of low- and moderate-income units constructed in compliance
with the Housing Plan Element and Fair Share Plan of the Borough of
Saddle River.
[Amended 2-16-2021 by Ord. No. 21-1008-C]
A. Trust fund activity. On the first anniversary of the execution of
the Borough's settlement agreement with Fair Share Housing Center
Re: In the Matter of the Borough of Saddle River, County of Bergen,
Docket No. BER-L-6120-15, which was executed on February 10, 2020,
and every anniversary thereafter through the end of the period of
protection from litigation referenced in said agreement, the Borough
shall provide annual reporting of its affordable housing trust fund
activity to the New Jersey Department of Community Affairs, Council
on Affordable Housing or Division of Local Government Services, 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 New Jersey Department
of Community Affairs, Council on Affordable Housing or Division of
Local Government Services. 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. Affordable housing activity. On the first anniversary of the execution
of the Borough's settlement agreement with Fair Share Housing
Center Re: In the Matter of the Borough of Saddle River, County of
Bergen, Docket No. BER-L-6120-15, which was executed on February 10,
2020, and every anniversary thereafter through the end of this agreement,
the Borough shall provide annual reporting of the status of all affordable
housing activity within the Borough through posting on the municipal
website, with copies provided to Fair Share Housing Center, using
forms previously developed for this purpose by the Council on Affordable
Housing or any other forms endorsed by the court-appointed special
master and Fair Share Housing Center. For the midpoint realistic opportunity
review due on July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313,
the Borough shall post on its municipal website, with copies provided
to Fair Share Housing Center, a status report as to its implementation
of its affordable housing 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 Borough, with copies provided to Fair Share Housing Center,
regarding whether any sites no longer present a realistic opportunity
and should be replaced. Any interested party may by motion request
a hearing before the court regarding these issues.
C. Very-low-income housing. For the review of very-low-income housing
requirements required by N.J.S.A. 52:27D-329.1, within 30 days of
the third anniversary of the execution of the Borough's settlement
agreement with Fair Share Housing Center Re: In the Matter of the
Borough of Saddle River, County of Bergen, Docket No. BER-L-6120-15,
which was executed on February 10, 2020, and every third year thereafter,
the Borough will post on its municipal website, with copies provided
to Fair Share Housing Center, a status report as to its satisfaction
of its very-low-income requirements, including the family very-low-income
requirements referenced herein. Such posting shall invite any interested
party to submit comments to the Borough, with copies provided to Fair
Share Housing Center, on the issue of whether the Borough has complied
with its very-low-income housing obligation.
The following terms when used in this chapter shall have the
meanings given in this section:
ACCESSORY APARTMENT
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing structure on the same site, or by an addition to an existing
home or accessory building, or by the construction of a new accessory
structure on the same site.
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Borough to administer affordable
units in accordance with this chapter, the regulations of the Council
on Affordable Housing set forth at N.J.A.C. 5:93 et seq., and the Uniform Housing Affordability Controls set forth
at N.J.A.C. 5:80-26 et seq.
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
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.
AFFORDABLE HOUSING DEVELOPMENT
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Borough's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Fair Housing
Act and approved for crediting by the court and/or funded through
an affordable housing trust fund.
AGE-RESTRICTED UNIT
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.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ALTERNATIVE LIVING ARRANGEMENTS
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.
ASSISTED LIVING RESIDENCE
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.
BOROUGH
The Borough of Saddle River, in Bergen County, New Jersey.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
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.
DEVELOPER
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.
DEVELOPMENT
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.
FAIR SHARE PLAN
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.A.C. 5:93-5.
HOUSING ELEMENT
The portion of the Township's Master Plan, required by the
Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the Act,
that includes the information required by N.J.A.C. 5:93-5.1 and establishes the Township's fair share obligation.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market-rate
units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
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.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the court.
MODERATE-INCOME HOUSEHOLD
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.
NONEXEMPT SALE
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; 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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
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.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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.
RESTRICTED UNIT
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.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
WEATHERIZATION
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.
To create realistic opportunities for the construction of affordable
housing, the following shall apply to all any townhouse, garden apartment,
mixed-use development or other multiple-family residential development
that will contain five or more dwelling units:
A. A minimum of 15% of the total number of units shall be set aside
as affordable housing units if the affordable units will be for rent.
If the calculation of the total number of affordable units required
yields a fraction of less than 0.5 then either a pro-rated payment
in lieu or one additional unit shall be provided. If the calculation
of the total number of affordable units required yields a fraction
greater than 0.5, the obligation shall be rounded up and the additional
unit shall be provided.
B. A minimum of 20% of the total number of units shall be set aside
as affordable housing units if the affordable units will be for sale.
If the calculation of the total number of affordable units required
yields a fraction of less than 0.5, then either a pro-rated payment
in lieu or one additional unit shall be provided. If the calculation
of the total number of affordable units required yields a fraction
of greater than 0.5, the obligation shall be rounded up and the additional
unit shall be provided.
C. Any property in the Borough that is currently zoned for nonresidential uses and that is subsequently rezoned for residential purposes or receives a use variance to permit residential development, or that is currently zoned for residential uses and that receives a zoning change or a density variance to permit higher density multifamily residential development of five or more dwelling units, shall provide an affordable housing set-aside of 15% if the affordable units will be for rent and 20% if the affordable units will be for sale. The provisions of Subsection
B above shall also apply.
D. Inclusionary developments shall adhere to the following project phasing
schedule:
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|
25
|
0
|
25+1 unit
|
10
|
50
|
50
|
75
|
75
|
100
|
90
|
E. Design:
(1) In inclusionary developments, to the extent possible, low- and moderate-income
units shall be integrated with the market units.
(2) In inclusionary developments, low- and moderate-income units shall
have access to all of the same common elements and facilities as the
market units.
The administrative agent shall be an independent entity serving
under contract to and reporting to the Borough. For new sale and rental
developments, all of 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. For resales, single-family
homeowners and condominium homeowners shall be required to pay 3%
of the sales price for services provided by the administrative agent
related to the resale of their homes. That fee shall be collected
at closing and paid directly to the administrative agent. 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 include:
A. Affirmative marketing:
(1) Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Borough's affirmative marketing
plan and the provisions of N.J.A.C. 5:80-26.15; and
(2) Providing counseling or contracting to provide counseling services
to 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 noneligibility;
(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;
and
(6) Employing a random selection process as provided in the affirmative
marketing plan of the Borough when referring households for certification
to affordable units.
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 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 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 rental; and
(2) Instituting and maintaining an effective means of communicating information
to 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 chapter;
(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 Borough 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 Borough 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,
of 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
Borough'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 Borough Mayor and Council and the court, setting forth procedures
for administering the affordability controls.
G. Additional responsibilities:
(1) The administrative agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(2) The administrative agent shall prepare monitoring reports for submission
to the municipal housing liaison in time to meet any monitoring requirements
and deadlines imposed by the court.
(3) The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed in writing with the court.
[Added 2-25-2019 by Ord.
No. 19-964-C; amended 2-16-2021 by Ord. No. 21-1007-C]
A. Purpose. This section is intended to ensure that any site that is
developed with five or more new multifamily residential dwelling units
produces affordable housing at a set-aside rate of 20%. This section
shall apply except where inconsistent with applicable law.
B. Mandatory set-aside requirement.
(1) Any multifamily residential development, including the residential
portion of a mixed-use project, that is approved to contain five or
more new dwelling units shall be required to set aside a minimum percentage
of units for affordable housing.
(2) The minimum set-aside percentage shall be 20%. Where the set-aside
percentage results in a fractional unit, the total set-aside requirement
shall be rounded upwards to the next whole number.
(3) Nothing in this section precludes the Borough or a Borough land use
board from imposing an affordable housing set-aside in a development
not required to have a set-aside pursuant to this section consistent
with N.J.S.A. 52:27D-311(h) and other applicable law.
(4) This requirement does not create any entitlement for a property owner
or applicant for subdivision or site plan approval, a zoning amendment,
use variance, or adoption of a redevelopment plan or rehabilitation
plan in areas in need of redevelopment or rehabilitation, or for approval
of any particular proposed project.
(5) This requirement does not apply to any sites or specific zones for
which higher set-aside standards have been or will be established,
as determined to be appropriate, either by zoning, subdivision or
site plan approval, or an adopted redevelopment plan or rehabilitation
plan.
(6) If the Borough's Housing Element and Fair Share Plan, as amended
from time to time, establishes set-aside standards for any specific
sites or zones which are different from the set-aside standards set
forth in this section, the set-asides established for those sites
or zones in the Housing Element and Fair Share Plan shall govern.
(7) Furthermore, this requirement shall not apply to residential expansions,
additions, renovations, replacement, or any other type of residential
development that does not result in a net increase in the number of
dwellings by five or more.
(8) Where a developer demolishes existing dwelling units and builds new
dwelling units on the same site, the provisions of this section shall
apply only if the net number of dwelling units is five or more.
(9) All subdivision and site plan approvals of qualifying residential
developments shall be conditioned upon compliance with the provisions
of this section.
(10)
No subdivision shall be permitted or approved for the purpose
of avoiding compliance with the mandatory set-aside requirements set
forth in this section.
(11)
All affordable units to be produced pursuant to this section shall comply with the Borough's Affordable Housing Regulations at Chapter
65 of the Borough Code and the Uniform Housing Affordability Controls rules (N.J.A.C. 5:80-26.1 et seq.), as may be amended from time to time.