Borough of South Bound Brook, NJ Chapter 26 Fair Share Housing

§ 26-1 FAIR SHARE HOUSING REGULATIONS.

§ 26-1.1 Fair Share of Low and Moderate Income Housing.

[Ord. No. 2004-04]

a. South Bound Brook's fair share obligation will be divided equally between low and moderate income households as per N.J.A.C. 5:93-2.20.

b. Except for inclusionary developments constructed pursuant to low income tax credit regulations:

1. At least half of all units within each inclusionary development will be affordable to low income households; and

2. At least half of all rental units will be affordable to low income households; and

3. At least one-third of all units in each bedroom distribution pursuant to N.J.A.C. 5:93-7.3 will be affordable to low income households.

c. Inclusionary developments that are not age-restricted will be constructed in conjunction with realistic market demands so that:

1. The combination of efficiency and one bedroom units is at least 10% and not greater than 20% of the total low and moderate income units; and

2. At least 30% of all low and moderate income units are two bedroom units; and

3. At least 20% of all low and moderate income units are three bedroom units; and

4. Low and moderate income units that are age-restricted may utilize a modified bedroom distribution. At a minimum, the number of bedrooms will equal the number of age-restricted low and moderate income units within the inclusionary development.

d. In conjunction with realistic market information, the following criteria will be used in determining maximum rents and sale prices:

1. Efficiency units will be affordable to a one person household; and

2. One bedroom units will be affordable to 1.5 person households; and

3. Two bedroom units will be affordable to three person households; and

4. Three bedroom units will be affordable to 4.5 person households; and

5. Median income by household size will be established by a regional weighted average of the uncapped Section 8 income limits published by HUD as per N.J.A.C. 5:93-7.4(b); and

6. The maximum sales prices of low and moderate income units within each inclusionary development will be affordable to households earning no more than 70% of median income. In averaging an affordability range of 55% for sales units, the municipal ordinance will require moderate income sales units to be available for at least three different prices and low income sales units to be available for at least two different prices.

7. For both owner-occupied and rental units, the low and moderate income units will utilize the same heating source as market units within an inclusionary development; and

8. Low income units will be reserved for households with a gross household income less or equal to 50% of the median income approved by COAH; moderate income units will be reserved for households with a gross household income less than 80% of the median income approved by COAH as per N.J.A.C. 5:93-7.4(g); and

9. The regulations outlined in N.J.A.C. 5:93-9.15 and 9.16 will be applicable for purchased and rental units.

e. For rental units, developers and/or municipal sponsors may:

1. Establish one rent for a low income unit and one for a moderate income unit for each bedroom distribution; and

2. Gross rents, including an allowance for tenant-paid utilities, will be established so as not to exceed 30% of the gross monthly income of the appropriate household size as per N.J.A.C. 5:93-7.4(f). The tenant-paid utility allowance will be consistent with the utility allowance approved by HUD for use in New Jersey.

3. The maximum rents of low and moderate income units within each inclusionary development will be affordable to households earning no more than 60% of median income. In averaging an affordability range of 52% for rental units, developers and/or municipal sponsors of rental units may establish one rent for a low income unit and one rent for a moderate income unit for each bedroom distribution.

f. For sale units:

1. The initial price of a low and moderate income owner-occupied for-sale housing unit will be established so that after a down payment of 5%, the monthly principal, interest, homeowner and private mortgage insurance, property taxes (based on the restricted value of the low and moderate income unit) and condominium or homeowner fee do not exceed 28% of the eligible gross monthly income; and

2. Master deeds of inclusionary development will regular condominium or homeowner association fees or special assessments of low and moderate income purchasers at 100% of those paid by market purchasers. This percentage is consistent with the requirements of N.J.A.C. 5:93-7.4(e). Once established within the master deed, the percentage will not be amended without prior approval from COAH; and

3. South Bound Brook will follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3; and

4. South Bound Brook will require a certificate of reoccupancy for any occupancy of a low or moderate income sales unit resulting from a resale as per N.J.A.C. 5:93-9.3(c); and

5. Municipal, state, nonprofit and seller options regarding sale units will be consistent with N.J.A.C. 5:93-9.5—9.8. Municipal rejection of repayment options for sale units will be consistent with N.J.A.C. 5:93-9.9; and

6. The continued application of options to create, rehabilitation or maintain low and moderate income sale units will be consistent with N.J.A.C. 5:93-9.10; and

7. Eligible capital improvements prior to the expiration of controls on sale units will be consistent with N.J.A.C. 5:93-9.11; and

8. The regulations detailed in N.J.A.C. 5:93-9.12—9.14 will be applicable to low and moderate income units that are for sale units.

g. In zoning for inclusionary developments the following is required:

1. Low and moderate income units will be built in accordance with N.J.A.C. 5:93-5.6(d):

Minimum % of Low/Moderate Income Units Completed	% of Market Housing Units Completed
0	25
10	25 + 1 unit
50	50
75	75
100	90 100

2. A design of inclusionary developments that integrates low and moderate income units with market units is encouraged as per N.J.A.C. 5:93-5.6(f).

h. A development fee ordinance was not adopted by South Bound Brook.

i. To provide assurances that low and moderate income units are created with controls on affordability over time and that low and moderate income households occupy these units, South Bound Brook will designate the Somerset County Office of Community Development with the responsibility of ensuring the affordability of sales and rental units over time. Somerset County Office of Community Development will be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).

1. In addition, the Somerset County Office of Community will be responsible for utilizing the verification and certification procedures outlined in N.J.A.C. 5:93-9.1(b) in placing households in low and moderate income units; and

2. Newly constructed low and moderate income sales units will remain affordable to low and moderate income households for at least 30 years.

The Somerset County Office of Community Development will require all conveyances of newly constructed units to contain the deed restriction and mortgage lien adopted by COAH and referred as Technical Appendix E as found in N.J.A.C. 5:93; and

3. Housing units created through the conversion of a nonresidential structure will be considered a new housing unit and will be subject to 30-year controls on affordability. Somerset County Office of Community Development will require COAH's appropriate deed restriction and mortgage lien.

j. Regarding rehabilitated units:

1. Rehabilitated owner-occupied single family housing units that are improved to code standard will be subject to affordability controls for at least six years; and

2. Rehabilitated renter-occupied housing units that are improved to code standard will be subject to affordability controls for at least 10 years; and

k. Regarding rental units:

1. Newly constructed low and moderate income rental units will remain affordable to low and moderate income households for at least 30 years. The Somerset County Office of Community Development will require the deed restriction and lien and deed of easement referred as Technical Appendix H as found in N.J.A.C. 5:93; and

2. Affordability controls in accessory apartments will be for a period of at least 10 years, except if the apartment is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability will extend for 30 years (N.J.A.C. 5:93-5.9); and

3. Alternative living arrangements will be controlled in a manner suitable to COAH, that provides assurances that such a facility will house low and moderate income households for at least 10 years except if the alternative living arrangement is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability will extend for 30 years (N.J.A.C. 5:93-5.8).

l. Section 14(b) of the Fair Housing Act N.J.S.A. 52:27D-301 et seq. incorporates the need to eliminate unnecessary cost generating features from South Bound Brook's land use ordinances. Accordingly Sound Bound Brook will eliminate development standards that are not essential to protect the public welfare and to expedite or fast track municipal approvals/denials on certain affordable housing developments. South Bound Brook will adhere to the components of N.J.A.C. 5:93-10.1-10.3.

m. South Bound Brook has a fair share obligation of 19 units of which one is new construction. This ordinance will apply to all developments that contain proposed low and moderate income units and any future development that may occur.