[Added 11-30-2009 by Ord. No. 09-10; amended 10-25-2018 by Ord. No.
18-08]
A.
This section is intended to assure that very-low-, low-, and moderate-income
units ("affordable units") are created with controls on affordability
over time and that very-low-, low-, and moderate-income households
shall occupy these units. This section shall apply except where inconsistent
with applicable law or an order from a court of competent jurisdiction.
B.
The Knowlton Township Planning Board has adopted a Housing Element
and Fair Share Plan (the "Fair Share Plan") pursuant to the Fair Housing
Act and Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.). The Fair
Share Plan has been endorsed by the governing body.
(1)
Said Fair Share Plan provides the framework for this article. The
Fair Share Plan has been endorsed by the governing body. The Fair
Share Plan describes the ways the Township of Knowlton shall address
its fair share for very-low-, low-, and moderate-income housing as
documented in the Fair Share Plan and outlined in the terms of the
settlement agreement between the Township and Fair Share Housing Center
("FSHC") in "the Matter of the Application of the Township of Knowlton,
County of Warren," Docket No. WRN-215-15 (the "settlement agreement").
The Superior Court of the State of New Jersey, Warren County approved
a settlement agreement between the Township and FSHC via a fairness
hearing on May 19, 2017 in the case captioned "In the Matter of the
Application of the Township of Knowlton", Docket No. WRN-L-215-15.
Pursuant to the settlement agreement, the Township must seek approval
from the Court of its Fair Share Plan referenced above via a compliance
hearing, to be held after adoption of this Fair Housing Ordinance.
C.
This article shall not become effective until the Court approves
the Township's Fair Share Plan and issues a judgement of repose.
A.
All definitions contained in N.J.A.C. 5:96-1.1 et seq., as may be
amended by the decision in "In re Adoption of N.J.A.C. 5:96 &
5:97 by N.J. Council on Affordable Housing," 221 N.J. 1 (2015) ("Mount
Laurel IV") or a court of competent jurisdiction, Procedural Rules
of the New Jersey Council on Affordable Housing, and N.J.A.C. 5:97-1.1.
et seq., as may be amended by the decision in Mount Laurel IV or a
court of competent jurisdiction, substantive rules of the New Jersey
Council on Affordable Housing, are hereby incorporated and adopted
as if set forth in full herein. For convenience, the following definitions
are provided for reference purposes. In the event of any conflict
or amendment to the New Jersey Administrative Code (N.J.A.C.), the
definitions and rules duly promulgated pursuant to the Administrative
Procedures Act shall govern this article.
B.
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
(1)
(2)
(3)
AGENCY
ASSISTED LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
HOUSEHOLD
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN INCOME
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
NON-EXEMPT SALE
PROGRAM
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
SETTLEMENT AGREEMENT
SUBSTANDARD HOUSING UNIT
SURROGATE
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
As used in this article, the following terms shall have the meanings
indicated:
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 accessory 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.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this section, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; 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.
A housing development all or a portion of which consists
of restricted units.
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing
trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
A facility 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.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of,
the Department of Community Affairs of the State of New Jersey, that
was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.).
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
require 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.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
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.
A person or persons occupying a housing unit, whether the
owner or tenant of the unit.
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to:
new construction, the conversion of a nonresidential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with a total gross annual 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 household
is located.
A restricted unit that is affordable to a low-income household.
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 or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median gross household income
for households of the same size within the housing region in which
the household is located.
A restricted unit that is affordable to a moderate-income
household.
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.
The administration and assistance provided under this chapter
to rehabilitate housing units that are substandard, create accessory
apartments, and to fund the conversion of market units to affordable
units.
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).
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 COAH's adopted Regional Income Limits published annually
by COAH.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
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.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
A settlement agreement between the Township and Fair Share
Housing Center ("FSHC") in the "Matter of the Application of the Township
of Knowlton, County of Warren", Docket No. WRN-215-15.
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 load bearing
structural system.
A census indicator of deficient housing.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
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 rehabilitation.
As set forth in the settlement agreement, the fair share obligation
of the Township consists of a ten-unit rehabilitation obligation,
a fourteen-unit prior round obligation, and a thirty-two-unit prospective
need obligation. The Township shall comply with the terms of the settlement
agreement. The Township has determined that it will use the following
mechanisms to satisfy its affordable housing obligations: rehabilitation,
gut-rehabilitation, accessory apartments, market-to-affordable buy
down, and special needs housing.
A.
A rehabilitation program.
(1)
Knowlton Township's rehabilitation program shall be designed to renovate
deficient housing units occupied by low- and moderate-income households
such that, after rehabilitation, these units will comply with the
New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
(2)
Household eligibility.
(a)
Only owners of houses or structures within the Township are
eligible for the rehabilitation assistance provided under this chapter.
Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds. For owner-occupied units, the owner shall be
determined to be income eligible as a low- or moderate-income household
as herein defined, in accordance with this chapter. For renter-occupied
units, the tenant household shall be determined to be income eligible
as low- or moderate-income, in accordance with this chapter.
(b)
Owners of vacant units which are found to be eligible for assistance
under this chapter shall enter into an agreement or deed restriction,
that the unit will either be rented or sold to a very-low-, low-,
or moderate-income eligible household as provided in this chapter
and the rent or sales price of the unit shall be restricted for a
term of years as outlined herein.
(3)
Unit eligibility.
(a)
A dwelling unit which is proposed to be rehabilitated under
this chapter must be found to be a substandard housing unit in accordance
with N.J.A.C. 5:97-1.1 et seq., as may be amended by the decision
in Mount Laurel IV or a court of competent jurisdiction. A "substandard
housing unit" is defined as a unit that was built prior to 1950 and
is overcrowded or one with health and safety code violations that
require the repair or replacement of a major system. A major system
shall include a roof, plumbing (including wells), heating, electricity,
weatherization, sanitary plumbing (including septic systems) and/or
a load bearing structural system. Upon rehabilitation, housing deficiencies
shall be corrected and the house shall be brought up to code standard.
The standard for evaluating rehabilitation activity shall be the local
property maintenance code or, if none is available, the BOCA National
Existing Structures Code. The rehabilitation activity shall not include
luxury improvements, the purchase of appliances (with the exception
of stoves) or improvements that are strictly cosmetic.
(b)
All rehabilitated units shall remain affordable to low- and
moderate-income households for a period of 10 years (the control period).
Owners of units rehabilitated under this chapter shall be bound by
a recorded deed or declaration of covenants and restrictions applied
to the property upon which the rehabilitated unit is located running
with the land and limiting its subsequent rental or sale of the unit.
The form of which shall be prepared by the Township Attorney in conformance
with the Act.
(4)
Terms of rehabilitation program.
(a)
The assistance provided under this chapter shall be available
until 10 units of deficient housing (including those completed between
200 and the adoption of this article) have been satisfactorily rehabilitated
within the Township's period of substantive certification or judgment
of repose.
(b)
The Township shall dedicate a minimum of $10,000 for each unit
to be rehabilitated through this program, reflecting the minimum hard
cost of rehabilitation for each unit.
(c)
Units in a rehabilitation program shall be exempt from N.J.A.C.
5:97-9 and Uniform Housing Affordability Controls (UHAC), but shall
be administered in accordance with the following:
[1]
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:97-9 and UHAC.
[2]
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:97-9 and UHAC.
[3]
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
[4]
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
(5)
The Township shall adopt a resolution committing to fund any shortfall
in the rehabilitation programs for Knowlton Township.
(6)
The Township shall designate, subject to the approval of COAH, one
or more Administrative Agents to administer the rehabilitation program
in accordance with N.J.A.C. 5:96 and N.J.A.C. 5:97. The Administrative
Agent(s) shall provide a rehabilitation manual for the owner occupancy
rehabilitation program and a rehabilitation manual for the rental
occupancy rehabilitation program to be adopted by resolution of the
governing body and subject to approval of COAH. Both rehabilitation
manuals shall be available for public inspection in the Office of
the Municipal Clerk and in the office(s) of the Administrative Agent(s).
B.
An accessory apartment program.
(1)
All accessory apartments shall meet the following conditions:
(a)
Accessory apartments are permitted in existing principal or
accessory buildings in all zoning districts, provided the units comply
with all conditions set forth herein. Accessory apartments may be
developed as low-income or moderate-income units (accessory apartments
may be limited to only low- or only moderate-income units as determined
in the Fair Share Plan).
(b)
Accessory apartments shall comply with all applicable statutes
and regulations of the State of New Jersey in addition to all building
codes.
(c)
At the time of initial occupancy of the unit and for at least
10 years thereafter, the accessory apartment shall be rented only
to a household which is either a low- or moderate-income household.
(d)
Rents of accessory apartments, including an allowance for utilities,
shall be affordable to low- or moderate-income households as per COAH
and UHAC regulations.
(e)
There shall be a recorded deed or declaration of covenants and
restrictions applied to the property upon which the accessory apartment
is located running with the land and limiting its subsequent rental
or sale of the unit and the accessory apartment.
(f)
The appropriate utility authority must certify that there is
water and sewer infrastructure with sufficient capacity to serve the
proposed accessory apartment. Where the proposed location is served
by an individual well and/or septic system, the additional capacity
necessitated by the new unit must meet the appropriate NJDEP standards.
(g)
The Knowlton Township accessory apartment program shall not
restrict the number of bedrooms in any accessory apartment.
(h)
No accessory apartment created as a result of this article or
these regulations shall exceed the gross floor area of the existing
principal dwelling on the lot.
(i)
The owner of the principal dwelling shall reside in the principal
dwelling or the apartment at all times.
(j)
The accessory apartment shall have living and sleeping space,
cooking facilities, a kitchen sink, and complete sanitary facilities
for the exclusive use of its occupants.
(k)
The accessory apartment shall consist of not less than two rooms,
one of which shall be a bathroom containing a flush toilet, wash basin
and bathroom tub or shower.
(l)
All rooms shall be accessible from within the apartment.
(m)
The accessory apartment shall be separate from the primary residence
and private and secure from all attached units.
(n)
The apartment shall have direct access to the outdoors or directly
to a hall from which there is direct access to the outdoors without
passing through any other unit, and the accessory apartment shall
comply with all requirements of the applicable building codes.
(o)
If the apartment is located on the second or third floor, there
shall be at least two means of access to the outdoors, available at
all times, as approved by the Construction Official. Exterior stairways
for the accessory apartment shall be located at the rear or side of
the structure.
(2)
The maximum number of creditable accessory apartments shall be equal
to no more than 10 or an amount equal to 10% of the Township's fair
share obligation, whichever is greater. (Additional units may be approved
by COAH or a court of competent jurisdiction if the Township has demonstrated
successful completion of its accessory apartment program.)
(3)
The Township shall designate an Administrative Agent to administer
the accessory apartment program that shall have the following responsibilities:
(a)
The Administrative Agent shall administer the accessory apartment
program, including advertising, income qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the affordable accessory
apartment program in accordance with the UHAC.
(b)
The Administrative Agent shall only deny an application for
an accessory apartment if the project is not in conformance with COAH's
requirements and/or the provisions of this section/article. All denials
shall be in writing with the reasons clearly stated.
(c)
In accordance with COAH requirements, the Township shall provide
at least $25,000 per unit to subsidize the creation of each low-income
accessory apartment or $20,000 per unit to subsidize the creation
of each moderate-income accessory apartment. Subsidy may be used to
fund actual construction costs and/or to provide compensation for
reduced rental rates.
(4)
Property owners wishing to apply to create an accessory apartment
shall submit to the administrative entity:
(a)
A sketch of floor plan(s) showing the location, size and relationship
of both the accessory apartment and the primary dwelling within the
building or in another structure;
(b)
Rough elevations showing the modifications of any exterior building
facade to which changes are proposed; and
(c)
A site development sketch showing the location of the existing
dwelling and other existing buildings; all property lines; proposed
addition, if any, along with the minimum building setback lines; the
required parking spaces for both dwelling units; and any man-made
conditions which might affect construction.
C.
A market-to-affordable program.
(1)
A market-to-affordable program is established to permit the purchase or subsidization of units through a written agreement with the property owner and sold or rented to low- and moderate-income households. Subject to the provisions of Subsection C(2)(c) below, the market-to-affordable programs may produce both low- and moderate-income units and will produce at least two very-low-income units.
(2)
The following provisions shall apply to market-to-affordable programs:
(a)
At the time they are offered for sale or rental, eligible units
may be new, pre-owned or vacant.
(b)
The units shall be certified to be in sound condition as a result
of an inspection performed by a licensed building inspector.
(c)
The Township will provide a minimum of $25,000 per unit to subsidize
each moderate-income unit and/or $30,000 per unit to subsidize the
each low-income unit, with additional subsidy depending on the market
prices or rents in a municipality.
(d)
The maximum number of creditable market-to-affordable units
shall be equal to no more than 10 for sale units and 10 rental units
or a combined total of 10% of the fair share obligation, whichever
is greater. (Additional units may be approved by COAH or a court of
competent jurisdiction if the Township demonstrates the successful
completion of its initial market-to-affordable program.)
(3)
The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(a)
Bedroom distribution [N.J.A.C. 5:80-26.3(b) and (c)];
(b)
Low/moderate-income split [N.J.A.C. 5:80-26.3(a)]; and
(c)
Affordability average [N.J.A.C. 5:80-26.3(d) and (e)]; however:
[1]
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60% of median income and the maximum
rent for a low-income unit shall be affordable to households earning
no more than 44% of median income; and
[2]
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70% of median income
and the maximum sales price for a low-income unit shall be affordable
to households earning no more than 40% of median income.
D.
A gut rehabilitation program.
E.
Supportive and special needs housing unit program.
(1)
All supportive and special needs housing units shall meet the following
conditions:
(a)
Supportive and special needs housing units shall be permitted
in all zones. Supportive and special needs housing includes, but is
not limited to residential health care facilities as licensed and/or
regulated by DCA or the New Jersey Department of Health and Senior
Services if the facility is located with, and operated by, a licensed
health care facility; group homes for people with developmental disabilities
and mental illness as licensed and/or regulated by the New Jersey
Department of Health and Human Services; permanent supportive housing;
and supportive share living housing. Long-term health care facilities
including nursing homes, and Class A, B, C, D, and E boarding homes
do not qualify as special needs housing.
(b)
Supportive and special needs housing shall comply with all applicable
statutes and regulations of the State of New Jersey in addition to
all building codes.
(c)
The following provisions shall apply to permanent supportive
housing, group homes, residential health care facilities and supportive
shared living housing.
[1]
The unit of credit shall be the unit for permanent and supportive
housing, but shall be the bedroom for group homes, residential health
care facilities, and supportive shared living housing.
[2]
Housing that is age-restricted shall be included with the maximum
number of units that may be age-restricted pursuant to N.J.A.C. 5:7-3.8.
[3]
Units/occupancy shall not be restricted to youth under 18 years
of age.
[4]
All sites shall meet the site suitability criteria set forth
in N.J.A.C. 5:97-3.13.
[5]
The Township or developer/sponsor shall have site control or
the ability to control the site(s).
(d)
The bedroom and/or units shall comply with N.J.A.C. 5:97-9 and
UHAC with the following exceptions:
[1]
Affirmative marketing (N.J.A.C. 5:80-26.15); however, group
homes, residential health care facilities, permanent supportive housing
and supportive shared living housing shall be affirmatively marketed
to individuals with special needs in accordance with a plan approved
by the Council's Executive Director or a court of competent jurisdiction.
[2]
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3);
and
[3]
With the exception of units established with capital funding
through a twenty-year operating contract with the Department of Human
Services, Division of Developmental Disabilities, group homes, residential
health care facilities, supportive shared living housing and permanent
supportive housing shall have the appropriate controls on affordability
in accordance with N.J.A.C. 5:97-9.
(2)
The following documentation shall be submitted prior to marketing
the completed units or facility:
(a)
An Affirmative Marketing Plan in accordance with Subsection E(1)(d)[1] above; and
(b)
If applicable, proof that the supportive and/or special-needs
housing is regulated by the New Jersey Department of Health and Senior
Services, the New Jersey Department of Human Services or another state
agency in accordance with the requirements of this section, which
includes validation of the number of bedrooms or units in which low-
or moderate-income occupants reside.
(3)
Municipal building permit fees shall be waived in all cases involving
permanent supportive housing, group homes, residential health care
facilities and supportive shared living housing development under
this section.
(4)
The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
The Township shall comply with the following monitoring and
reporting requirements regarding the status of the implementation
of its Court-approved Housing Element and Fair Share Plan:
A.
Beginning on November 5, 2018, and on every anniversary of that date
through November 5, 2025, the Township agrees to provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Council on Affordable
Housing (COAH), or Local Government Services (NJLGS). 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.
Beginning on November 5, 2018, and on every anniversary of that date
through November 5, 2025, the Township agrees to provide annual reporting
of the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to Fair Share Housing Center, using forms previously developed
for this purpose by COAH or any other forms endorsed by the Special
Master and FSHC.
C.
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Township will post on its municipal website, with a copy provided
to FSHC, a status report as to its implementation of its Plan and
an analysis of whether any unbuilt sites or unfulfilled mechanisms
continue to present a realistic opportunity and whether any mechanisms
to meet unmet need should be revised or supplemented. Such posting
shall invite any interested party to submit comments to the municipality,
with a copy to FSHC, regarding whether any sites no longer present
a realistic opportunity and should be replaced and whether any mechanisms
to meet unmet need should be revised or supplemented. Any interested
party may by motion request a hearing before the Court regarding these
issues.
D.
By November 5, 2020, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the Township will post on its municipal
website, with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
The following general guidelines apply to all newly constructed
developments that contain very-low-, low-, and moderate-income housing
units, including any currently unanticipated future developments that
will provide very-low-, low-, and moderate-income housing units.
A.
Low/moderate split and bedroom distribution of affordable housing
units:
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of regional median
income by household size). The very-low-income units shall be counted
as part of the required number of low-income units within the development.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements:
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14.
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14, or evidence that the Knowlton Township
has collected funds from the developer sufficient to make 10% of the
adaptable entrances in the development accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Knowlton Township's affordable housing trust fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(a)[2] above shall
be used by Knowlton Township for the sole purpose of making the adaptable
entrance of any affordable unit accessible when requested to do so
by a person with a disability who occupies or intends to occupy the
unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of Knowlton Township.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7 and
N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion
is reasonable, payment shall be made to Knowlton Township's affordable
housing trust fund in care of the Municipal Treasurer who shall ensure
that the funds are deposited into the affordable housing trust fund
and appropriately earmarked.
[6]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C.
5:97-3.14.
D.
Maximum rents and sales prices.
(1)
In establishing rents and sales prices of affordable housing units, the Administrative Agent shall follow the procedures set forth in UHAC, utilizing the most recently published regional weighted average of the uncapped Section 8 income limits published by HUD and the calculation procedures set forth in the Consent Order entered on December 16, 2016, by the Honorable Douglas K. Wolfson, JSC, in "In the Matter of the Township of East Brunswick for a Judgment of Compliance of its Third Round Housing Element and Fair Share Plan," Docket No.: MID-L-004013-15.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3)
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units, provided that at least 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households, which very-low-income units shall be part of the low-income
requirement.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a 1 1/2 person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a 4 1/2 person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(7)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate-size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the Administrative Agent be lower than the last
recorded purchase price.
(10)
The rent of low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the Northeast Urban Area. This increase shall not
exceed 9% in any one year. Rents for units constructed pursuant to
low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
(11)
Utilities. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall be consistent with the utility allowance approved by DCA for its Section 8 program. Affordable units shall utilize the same type of heating source as market units within an inclusionary development.
A.
The provisions of this article shall apply:
(1)
To all affordable housing developments and affordable housing units
that currently exist within the Township;
(2)
To all affordable housing developments and affordable housing units
that are proposed to be created pursuant to the Township's Housing
Plan Element and Fair Share Plan;
(3)
To all unanticipated future developments that will provide affordable
housing for low- and moderate-income households; and
(4)
To any property in the Township that is currently zoned for nonresidential
uses and that is subsequently rezoned for multifamily residential
purposes, and to all approvals for multifamily residential development
granted by the Township Planning Board or Zoning Board of Adjustment,
including approvals of use or density variances, site plans, or subdivisions,
and redevelopment projects subject to a redevelopment plan adopted
by the Township governing body governing the development and redevelopment
of designated areas in need of rehabilitation or areas in need of
redevelopment in the Township, including substantial revisions to
previously approved developments, where such rezoning, approval or
revision results in or increases the number of residential units by
five or more units.
A.
Knowlton Township shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of COAH, compliant with N.J.A.C. 5:80-26.15,
as may be amended and supplemented.
B.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is also intended to target those potentially eligible
persons who are least likely to apply for affordable units in that
region. It is a continuing program that directs all marketing activities
toward COAH Housing Region 2 and covers the period of deed restriction.
C.
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 2
comprised of Warren, Essex, Morris and Union Counties.
D.
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The Administrative Agent designated by
Knowlton Township shall assure the affirmative marketing of all affordable
units consistent with the Affirmative Marketing Plan for the municipality.
E.
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
G.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by Knowlton Township.
H.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the county library for each county within the housing region;
and the municipal administration building in the municipality in which
the units are located; and the developer's rental office. Applications
shall be mailed to prospective applicants upon request.
I.
The Affirmative Marketing Plan shall specifically notify the following
community and regional organizations in advertisement for affordable
housing:
(1)
Fair Share Housing Center, Cherry Hill.
(2)
NJ State Conference of the NAACP, Trenton.
(3)
Latino Action Network, Freehold.
(4)
Supportive Housing Association, Cranford.
(5)
Central Hersey Housing Resource Center, Raritan.
(6)
NORWESCAP, Phillipsburg.
(7)
East Orange NAACP.
(8)
Newark NAACP.
(9)
Morris County NAACP.
(10)
Elizabeth NAACP.
A.
In referring certified households to specific restricted units, to
the extent feasible, and without causing an undue delay in occupying
the unit, the Administrative Agent shall strive to:
B.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal operating manual.
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this section until Knowlton Township elects to release the unit
from such requirements; however, and prior to such an election, a
restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at
least 30 years.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Administrative Agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value.
D.
At the time of the first sale of the unit, the purchaser shall execute
and deliver to the Administrative Agent a recapture note obligating
the purchaser (as well as the purchaser's heirs, successors and assigns)
to repay, upon the first non-exempt sale after the unit's release
from the requirements of this section, an amount equal to the difference
between the unit's non-restricted fair market value and its restricted
price, and the recapture note shall be secured by a recapture lien
evidenced by a duly recorded mortgage on the unit.
E.
The affordability controls set forth in this section shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the construction
official stating that the unit meets all code standards upon the first
transfer of title that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
C.
Notwithstanding the foregoing, the Administrative Agent may, upon
approval by the Township Council, and subject to the Court's approval,
permit a moderate-income purchaser to buy a low-income unit if and
only if the Administrative Agent can demonstrate that there is an
insufficient number of eligible low-income purchasers in the housing
region to permit prompt occupancy of the unit and all other reasonable
efforts to attract a low-income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
D.
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence and
shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
B.
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
C.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
D.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this section until Knowlton Township elects to release the unit
from such requirements pursuant to action taken in compliance with
N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior
to such an election, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented,
for at least 30 years.
B.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Warren. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this section, despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the Administrative Agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
C.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the Administrative Agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this section.
D.
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this article.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents proposed third-party assistance from an outside
source such as a family member in a form acceptable to the Administrative
Agent and the owner of the unit.
A.
The position of Municipal Housing Liaison (MHL) for Knowlton Township
is established by this section. The Knowlton Township Committee shall
make the actual appointment of the MHL by means of a resolution.
(1)
The MHL must be either a full-time or part-time employee of Knowlton
Township.
(2)
The person appointed as the MHL must be reported to COAH or a Court
of competent jurisdiction for approval.
(3)
The MHL must meet all COAH requirements for qualifications, including
initial and periodic training.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Knowlton
Township, including the following responsibilities which may not be
contracted out to the Administrative Agent:
(a)
Serving as the municipality's primary point of contact for all
inquiries from the state, affordable housing providers, Administrative
Agents and interested households;
(b)
The implementation of the Affirmative Marketing Plan and affordability
controls.
(c)
When applicable, supervising any contracting Administrative
Agent.
(d)
Monitoring the status of all restricted units in Knowlton Township's
Fair Share Plan.
(e)
Compiling, verifying and submitting annual reports as required
by COAH pursuant to N.J.A.C. 5:97 and the settlement agreement.
(f)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable.
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH.
B.
Knowlton Township shall designate by resolution of the Knowlton Township
Committee, subject to the approval of COAH or a Court of competent
jurisdiction, one or more Administrative Agents to administer newly
constructed affordable units in accordance with N.J.A.C. 5:96, N.J.A.C.
5:97 and UHAC. 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.
C.
An operating manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body and subject to approval
of COAH. The operating manuals shall be available for public inspection
in the Office of the Municipal Clerk and in the office(s) of the Administrative
Agent(s).
D.
The Administrative Agent shall perform the duties and responsibilities
of an Administrative Agent as are set forth in UHAC and which are
described in full detail in the operating manual, including those
set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:
(1)
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by COAH;
(2)
Affirmative marketing;
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township and the provisions of N.J.A.C. 5:80-26.15; and
(b)
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.
(3)
Household certification;
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
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;
(c)
Providing written notification to each applicant as to the determination
of eligibility or non-eligibility;
(d)
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.;
(e)
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;
(f)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township when referring households for certification
to affordable units; and
(g)
Notifying the following entities of the availability of affordable
housing units in the Township: Fair Share Housing Center, the New
Jersey State Conference of the NAACP, the Latino Action Network, NORWESCAP,
the Supportive Housing Association, and the Central Jersey Housing
Resource Center.
(4)
Affordability controls;
(a)
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;
(b)
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;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Warren
County Register of Deeds or Warren County Clerk's office after the
termination of the affordability controls for each restricted unit;
(d)
Communicating with lenders regarding foreclosures; and
(e)
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(5)
Records retention;
(6)
Resale and rerental;
(a)
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or rerental; and
(b)
Instituting and maintaining an effective means of communicating
information to low- (or very-low-) and moderate-income households
regarding the availability of restricted units for resale or rerental.
(7)
Processing requests from unit owners; and
(a)
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 article;
(b)
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;
(c)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(d)
Making determinations on requests by owners of restricted units
for hardship waivers.
(8)
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality.
(a)
Securing annually from the municipality 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;
(b)
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;
(c)
Posting annually, in all rental properties (including two-family
homes), 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;
(d)
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;
(e)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund; and
(f)
Creating and publishing a written operating manual for each
affordable housing program administered by the Administrative Agent,
to be approved by the Township Committee and the Court, setting forth
procedures for administering the affordability controls.
(9)
Preparation of monitoring reports for submission to the Municipal
Housing Liaison in time to meet the Court-approved monitoring and
reporting requirements in accordance with the deadlines set forth
in this article and the settlement agreement.
(10)
The Administrative Agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a very-low-, low- or moderate-income unit and advising
the owner, developer or tenant of the penalties for such violations,
the municipality may take the following action against the owner,
developer or tenant for any violation that remains uncured for a period
of 60 days after service of the written notice:
(1)
The municipality 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
found 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)
A fine of not more than $1,000 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Knowlton Township Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented his or her 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.
(2)
The municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any 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- and moderate-income unit.
C.
Such judgment shall be enforceable, at the option of the municipality,
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 municipality,
including attorney's fees. The violating owner shall have the right
to possession terminated as well as the title conveyed pursuant to
the Sheriff's sale.
D.
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 municipality 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 municipality
in full as aforesaid, the violating owner shall be personally responsible
for and to the extent of such deficiency, in addition to any and all
costs incurred by the municipality 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
municipality 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 municipality 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 municipality. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the municipality, whether such balance
shall be paid to the owner or forfeited to the municipality.
E.
Foreclosure by the municipality 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.
F.
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.
G.
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, 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.
H.
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 designated
pursuant to this section shall be filed in writing with the Executive
Director of COAH or a Court of competent jurisdiction.
