[Added 10-1-2020 by Ord. No. 2618]
This article is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
and that low- and moderate-income households shall occupy these units.
This article is also intended to ensure that any project that is developed
within a designated redevelopment area or area in need of rehabilitation
that includes a residential component produces affordable housing
at a set-aside rate of at least 15%. This article shall apply except
where inconsistent with applicable law.
The following terms when used in this article shall have the
meanings given in this section:
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.) as has been subsequently amended.
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 article, applicable COAH regulations
and the Uniform Housing Affordability Controls, 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 by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; 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 Borough's 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 the Borough's Fair Share Plan prepared or
implemented to address the Borough's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC Settlement Agreement,
or an order of the Court.
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 where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years 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.
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 New Jersey Council on Affordable Housing.
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.
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.).
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 development containing both affordable units and market-rate
units. Inclusionary developments must have a 15% set-aside of affordable
units if the development has five or more units for sale or on a rental
basis as part of the project. 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 household income.
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 the Department.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
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.
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 the Department's adopted Regional Income Limits published
annually by the Department.
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.
The Uniform Housing Affordability Controls codified at 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.
The Borough of Roselle Park will use the following mechanisms
to satisfy its affordable housing obligations:
A.Â
A Rehabilitation Program.
1.Â
Pursuant to the "Order Granting Repose from Mount Laurel Lawsuits
Through July 1, 2025," entered on February 18, 2016, the Borough of
Roselle Park, with the approval of the Court and the court-appointed
Special Master, has established and funded its own housing rehabilitation
program.
2.Â
Pursuant to that program and relevant laws, all rehabilitated rental
and owner-occupied units shall remain affordable to low- and moderate-income
households for a period of 10 years (the control period). For owner-occupied
units, the control period will be enforced with a recorded lien, and
for renter-occupied units, the control period will be enforced with
a deed restriction.
3.Â
The Borough of Roselle Park shall dedicate an average of $10,000
for each unit to be rehabilitated through this Program, reflecting
the minimum hard cost of rehabilitation for each unit.
4.Â
Units in a Rehabilitation Program shall be exempt from N.J.A.C. 5:93-9[1] and UHAC requirements, but shall be administered in accordance
with the following:
a.Â
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. 5:93-9 and UHAC.
b.Â
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. 5:93-9 and UHAC.
c.Â
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9 or the standards issued by the courts
or any other governmental subdivision with proper authority to issue
such standards.
d.Â
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
[1]
Editor's Note: The provisions of N.J.A.C. 5:93-1 et seq. expired
10-16-2016.
B.Â
Affordable Housing Set-Aside Requirement for Residential Development
Including Areas in Need of Redevelopment or Rehabilitation.
1.Â
If the Borough of Roselle Park or a Borough's Land Use Board permits
the construction of residential development that is "approvable" and
"developable," as defined at N.J.A.C. 5:93-1.3,[2] at least 15% of the total number of residential units
shall be set aside as affordable for very-low-, low- and moderate-income
households as set forth in this article. This requirement shall apply
beginning with the effective date of this article to any residential
development, including the residential portion of a mixed-use project,
which consists of five or more new residential units, whether permitted
by a zoning amendment, a variance granted by the Borough's Land Use
Board, or adoption of a redevelopment plan, or amended redevelopment
plan in areas in need of redevelopment or rehabilitation. This requirement
shall not apply to any development application pending on the effective
date of this article, unless the applicant thereafter secures an increase
in the number of proposed residential units equal to or greater than
25%. Nothing in this subsection precludes the Borough of Roselle Park
or the Borough's Land Use Board from imposing an affordable housing
set-aside in a development not required to have a set-aside pursuant
to this subsection consistent with N.J.S.A. 52:27D-311(h) and other
applicable law.
[2]
Editor's Note: The provisions of N.J.A.C. 5:93-1 et seq. expired
10-16-2016.
2.Â
For projects generating residential units within areas designated
as in need of redevelopment or rehabilitation, pursuant to the Local
Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., at least
15% of the total number of residential units shall be affordable to
very-low-, low-, and moderate-income households as set forth in this
article. Fractional obligations shall be rounded up unless waived
at the sole discretion of the Borough's governing body.
a.Â
For example, under the provisions of this article, a sixteen-unit
rental development would mathematically generate a requirement for
2.40 affordable housing units (i.e. 16 units times 15% = 2.40 affordable
housing units). However, since the redeveloper must provide a set-aside
of at least 15%, the developer shall provide three units of affordable
housing.
3.Â
The sole purpose of this section is to create the responsibility
for a developer or redeveloper to deliver residential units with controls
on affordability and that otherwise comply with the "Uniform Housing
Affordability Controls" regulations, N.J.A.C. 5:80-26.1 et seq. and
this general Affordable Housing Ordinance. Therefore, nothing in either
ordinance shall be construed to create any rights including, but not
limited to, the right to: a zoning amendment; a variance; adoption
of a redevelopment plan or amended redevelopment plan; or approval
of any particular development application.
4.Â
Likewise, this section shall not apply to development applications
containing four or less dwelling units. All subdivision and site plan
approvals of qualifying residential developments shall be conditioned
upon compliance with the provisions of this section. 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.
C.Â
Phasing.
1.Â
Inclusionary developments shall be subject to the following schedule,
except where an alternate phasing schedule has been incorporated into
a development or redevelopment agreement:
Minimum Percentage of Low- and Moderate-Income Units Completed
|
Maximum Percentage of Market-Rate Units Completed
|
---|---|
0%
|
25%
|
10%
|
25% + 1 Unit
|
75%
|
75%
|
100%
|
90%
|
D.Â
Fractional Units. If 20% of the total number of units in a development
results in a fraction or decimal, the developer shall be required
to provide an additional affordable unit on site.
E.Â
Interspersion of Affordable Units. In inclusionary developments,
to the extent possible, low- and moderate-income units shall be interspersed
with the market-rate units.
F.Â
Utilities. Affordable units shall utilize the same type of heating
source as market-rate units within the development.
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
A.Â
Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units:
1.Â
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.
2.Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units. If there
is only one affordable unit it must be a low-income unit.
3.Â
Thirteen percent of all affordable units in the Borough, with the
exception of units constructed as of July 1, 2008, and units subject
to preliminary or final site plan approval as of July 1, 2008, shall
be designated as very-low-income households at 30% of the median income,
with at least 50% of all very-low-income units being available to
families. Very-low-income units shall be considered low-income units
for the purposes of evaluating compliance with the required low-/moderate-income
unit splits, bedroom distribution, and phasing requirements of this
article.
4.Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
a.Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
b.Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
c.Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
5.Â
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.Â
Accessibility Requirements:
1.Â
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.
2.Â
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.Â
An adaptable toilet and bathing facility on the first floor;
b.Â
An adaptable kitchen on the first floor;
c.Â
An interior accessible route of travel on the first floor;
d.Â
An interior accessible route of travel shall not be required
between stories within an individual unit;
e.Â
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.Â
An accessible entranceway as set forth at P.L. 2005, c. 350
[N.J.S.A. 52:27D-311(a)] and the Barrier Free Subcode, N.J.A.C. 5:23-7,
or evidence that the Borough of Roselle Park has collected funds from
the developer sufficient to make 10% of the adaptable entrances in
the development accessible:
(1)Â
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)Â
To this end, the builder of restricted units shall deposit funds
within the Borough's Affordable Housing Trust Fund sufficient to install
accessible entrances in 10% of the affordable units that have been
constructed with adaptable entrances.
(3)Â
The funds deposited under Subsection B2f(2) above shall be used
by the Borough of Roselle Park 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)Â
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 the Borough.
(5)Â
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
that the cost estimate of such conversion is reasonable, payment shall
be made to the Borough's Affordable Housing Trust Fund and appropriately
earmarked.
(6)Â
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.
C.Â
Maximum Rents and Sales Prices:
1.Â
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC utilizing the regional income limits established by the New Jersey
Department of Community Affairs (DCA) or other agency as required
by the Court.
2.Â
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.Â
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.
a.Â
At least 13% of all low- and moderate-income dwelling units
shall be affordable to households earning no more than 30% of median
income.
4.Â
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.Â
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.Â
A studio shall be affordable to a one-person household;
b.Â
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
c.Â
A two-bedroom unit shall be affordable to a three-person household;
d.Â
A three-bedroom unit shall be affordable to a four-and-one-half-person
household;
e.Â
A four-bedroom unit shall be affordable to a six-person household.
6.Â
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.Â
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.Â
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.Â
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.Â
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 United States. 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.Â
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.
A.Â
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 Housing Region 2 and covers the period of deed restriction.
B.Â
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 2.
C.Â
The administrative agent designated by the Borough of Roselle Park
shall assure the affirmative marketing of all affordable units consistent
with the Affirmative Marketing Plan for the municipality.
D.Â
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.
E.Â
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
F.Â
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 the Borough.
A.Â
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.Â
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
A.Â
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 article until the Borough of Roselle Park 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.Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.Â
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 non-restricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value.
D.Â
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 nonexempt sale after the unit's release from
the requirements of this article, an amount equal to the difference
between the unit's nonrestricted 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.Â
The affordability controls set forth in this article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.Â
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.
A.Â
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:
1.Â
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
2.Â
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
3.Â
The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners.
4.Â
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.Â
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. Very-low-income
units shall be reserved for households with a gross household income
of less than 30% of median income.
B.Â
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.
A.Â
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section.
B.Â
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).
A.Â
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 article until the Borough of Roselle Park elects to release
the unit from such requirements pursuant to action taken in compliance
with N.J.A.C. 5:80-26.1 et seq., 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 et seq., as may
be amended and supplemented, for at least 30 years.
B.Â
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 Union. 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.Â
A restricted rental unit shall remain subject to the affordability
controls of this article, despite the occurrence of any of the following
events:
A.Â
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.Â
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.Â
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 article.
A.Â
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.Â
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.Â
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
3.Â
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.Â
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.Â
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.Â
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.Â
The household is currently in substandard or overcrowded living conditions;
4.Â
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
5.Â
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.
C.Â
The applicant shall file documentation sufficient to establish the
existence of the circumstances in Subsection B1 through 5 above with
the administrative agent, who shall counsel the household on budgeting.
A.Â
The position of Municipal Housing Liaison (MHL) for the Borough of
Roselle Park is established by this article. The Borough shall make
the actual appointment of the MHL by means of a resolution.
1.Â
The MHL must be either a full-time or part-time employee of Roselle
Park.
2.Â
The person appointed as the MHL must be reported to the Court and
thereafter posted on the Borough's website.
3.Â
The MHL must meet all the requirements for qualifications, including
initial and periodic training, if such training is made available
by COAH or the DCA.
4.Â
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Borough
of Roselle Park, including the following responsibilities which may
not be contracted out to the administrative agent:
a.Â
Serving as the municipality's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents and interested households;
b.Â
The implementation of the Affirmative Marketing Plan and affordability
controls.
c.Â
When applicable, supervising any contracting administrative
agent.
d.Â
Monitoring the status of all restricted units in the Borough's
Fair Share Plan;
e.Â
Compiling, verifying and submitting annual reports as required;
f.Â
Coordinating meetings with affordable housing providers and
administrative agents, as applicable; and
g.Â
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Affordable Housing Professionals of New Jersey
(AHPNJ), if such continuing education opportunities are made available
by COAH or the DCA.
C.Â
An operating manual shall be provided by the administrative agent(s)
to be adopted by resolution of the governing body. 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.Â
The administrative agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC, including those
set forth in N.J.A.C. 5:80-26.14, 16, and 18 thereof, and shall have
authority to take all actions necessary and appropriate to carry out
its responsibilities, which includes:
1.Â
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by the Affordable Housing Professionals of New Jersey (AHPNJ);
2.Â
Affirmative marketing;
3.Â
Household certification;
4.Â
Affordability controls;
5.Â
Records retention;
6.Â
Resale and re-rental;
7.Â
Processing requests from unit owners; and
8.Â
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality.
A.Â
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.Â
After providing written notice of a violation to an owner, developer
or tenant of a low-or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the 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.Â
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.Â
A fine of not more than $10,000 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.Â
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 Borough of Roselle Park Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
c.Â
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.
C.Â
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.
D.Â
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.
E.Â
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.
F.Â
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.
G.Â
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.
H.Â
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.
I.Â
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.
A.Â
Beginning one year after the entry of the Borough's Round 3 Judgment
of Compliance and Repose, the Borough agrees to provide annual reporting
of the status of all affordable housing activity within the Borough
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 the Council on Affordable Housing or any other
forms endorsed by the Special Master and Fair Share Housing Center.
In addition to the foregoing, the Borough may also post such activity
on the CTM system and/or file a copy of its report with COAH or its
successor agency at the state level.
B.Â
The Fair Housing Act includes two provisions regarding action to
be taken by the Borough during its ten-year repose period. The Borough
agrees to comply with those provisions as follows:
1.Â
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Borough will post
on its municipal website, with a copy provided to Fair Share Housing
Center, 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 the mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the Borough, with a copy
to Fair Share Housing Center, regarding whether any sites no longer
present a realistic opportunity and should be replaced and whether
the 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.
2.Â
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 entry of the Borough's Judgement of Compliance and Repose, and
every third year thereafter, the Borough will post on its municipal
website, with a copy 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 and Fair Share Housing Center on the issue of whether
the Borough has complied with its very-low-income housing obligation
under the terms of this settlement.
3.Â
In addition to the foregoing postings, the Borough may also elect
to file copies of its reports with COAH or its successor agency at
the state level.
A.Â
Appeals from all decisions of an administrative agent designated
pursuant to this article shall be filed with the Superior Court of
New Jersey, Union County.