[HISTORY: Adopted by the Mayor and Council
of the Borough of North Haledon as indicated in article histories.
Amendments noted where applicable.]
[Adopted 12-27-2006 by Ord. No. 21-2006]
In Holmdel Builder's Association v. Holmdel
Township, 121 N.J. 550 (1990), the New Jersey Supreme Court determined
that mandatory development fees are authorized by the Fair Housing
Act of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution,
subject to the Council on Affordable Housing's (COAH's) adoption of
rules. This article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's rules. Fees
collected pursuant to this article shall be used for the sole purpose
of providing low- and moderate-income housing. This article shall
be interpreted within the framework of COAH's rules on development
fees.
[Amended 5-20-2020 by Ord. No. 9-2020]
[Amended 5-20-2020 by Ord. No. 9-2020]
The following terms, as used in this article,
shall have the following meanings:
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.
The New Jersey Council on Affordable Housing, established
under the Fair Housing Act.[1]
Any act or process that renders more than 50% of a structure
or building unsafe for human occupancy or use shall be considered
demolished for the purposes of this article.
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Funds paid by any person for the improvement of property
as authorized by Holmdel Builder's Association v. Holmdel Township,
121 N.J. 550 (1990) and the Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et seq., and regulated by applicable COAH rules.
The value of a property determined by the Municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
Estimates at the time of issuance of a building permit may be obtained
utilizing estimates for construction cost. Final equalized assessed
value will be determined at project completion by the Municipal Tax
Assessor.
All internal areas of a dwelling with a floor-to-ceiling
height of greater than six feet, exclusive of garages, which are not
to be considered as living space.
A catastrophic event, such as a hurricane, flood, earthquake,
volcanic eruption, landslide, blizzard or other natural phenomena,
that causes extensive human casualties or property damage, or both.
[1]
Editor’s Note: See N.J.S.A. 52:27D-301 et seq.
[Amended 5-20-2020 by Ord. No. 9-2020]
A.
Imposed fees.
(1)
For all residential developments, residential developers shall pay
a fee of 1.5% of the equalized assessed value for residential development,
provided no increased density is permitted.
(2)
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5)
(known as a "d" variance) has been permitted, developers may be required
to pay a development fee of 6% of the equalized assessed value for
each additional unit that may be realized. However, if the zoning
on a site has changed during the two-year period preceding the filing
of such a variance application, the base density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the variance application. Example: If an approval allows four units
to be constructed on a site that was zoned for two units, the fees
could equal 1.5% of the equalized assessed value on the first two
units; and the specified higher percentage up to 6% of the equalized
assessed value for the two additional units, provided zoning on the
site has not changed during the two-year period preceding the filing
of such a variance application.
B.
Eligible exactions, ineligible exactions and exemptions for residential
development.
(1)
Affordable housing developments and developments where the developer
has made a payment in lieu of on-site construction of affordable units
shall be exempt from development fees.
(2)
Developments that have received preliminary or final site plan approval
prior to the adoption of a municipal development fee ordinance shall
be exempt from development fees, unless the developer seeks a substantial
change in the approval. Where a site plan approval does not apply,
a zoning and/or building permit shall be synonymous with preliminary
or final site plan approval for this purpose. The fee percentage shall
be vested on the date that the building permit is issued.
(3)
Development fees shall be imposed and collected when an existing
structure undergoes a change to a more intense use, is demolished
and replaced or is expanded, except that expansion of an existing
residential structure which increases the living space by less than
20% and/or the volume of the existing structure by less than 20% shall
be exempt from paying a development fee. The development fee shall
be calculated on the increase in the equalized assessed value of the
improved structure.
(4)
A dwelling that is constructed as a replacement for a dwelling that
was demolished as a result of a natural disaster shall be exempt from
paying a development fee. The dwelling that is constructed as a replacement
dwelling must be constructed on the same site as the dwelling that
was demolished as a result of a natural disaster.
[Amended 5-20-2020 by Ord. No. 9-2020]
A.
Within the B-1, B-2, I-1 and/or I-2 District(s), nonresidential developers
shall pay a fee of 2.5% of the equalized assessed value for nonresidential
development.
B.
When an increase in floor area ratio is approved pursuant to N.J.S.A.
40:55D-70d(4), then the additional floor area realized (above what
is permitted by right under the existing zoning) will incur a bonus
development fee of 6% of the equalized assessed value for nonresidential
development. However, if the zoning on a site has changed during the
two-year period preceding the filing of such a variance application,
the base floor area for the purposes of calculating the bonus development
fee shall be the highest floor area permitted by right during the
two-year period preceding the filing of the variance application.
A.
Affordable housing developments shall be exempt from
development fees. All other forms of new construction shall be subject
to development fees unless exempted below.
B.
Developments that have received preliminary or final
approval prior to the imposition of a municipal development fee shall
be exempt from development fees, unless the developer seeks a substantial
change in the approval.
Fifty percent of the development fee will be
collected by the COAH Administrator at the time of issuance of the
building permit. The remaining portion will be collected by the COAH
Administrator prior to issuance of the certificate of occupancy or
temporary certificate of occupancy. The developer shall be responsible
for paying the difference between the fee calculated at building permit
and that determined at issuance of certificate of occupancy.
Imposed and collected development fees that
are challenged shall be placed in an interest-bearing escrow account
by the Borough of North Haledon. If all or a portion of the contested
fees are returned to the developer, the accrued interest on the returned
amount shall also be returned.
[Amended 5-20-2020 by Ord. No. 9-2020]
A.
There is hereby created a separate, interest-bearing housing trust
fund in Columbia Bank for the purpose of depositing development fees
collected from residential and nonresidential developers and proceeds
from the sale of units with extinguished controls. All development
fees paid by developers pursuant to this article shall be deposited
into this fund.
[Amended 12-8-2021 by Ord. No. 24-2021]
B.
In the event of a failure by the Borough of North Haledon to comply
with trust fund monitoring and reporting requirements or to submit
accurate monitoring reports; or a failure to comply with the conditions
of the judgment of compliance or a revocation of compliance; or a
failure to implement the approved spending plan and to expend funds
within the applicable required time period as set forth in In re Tp.
Of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (aff'd 442 N.J. Super.
563); or the expenditure of funds on activities not approved by the
Court; or for other good cause demonstrating the unapproved use(s)
of funds, the Court may authorize the State of New Jersey, Department
of Community Affairs, Division of Local Government Services (LGS),
to direct the manner in which the funds in the Affordable Housing
Trust Fund shall be expended, provided that all such funds shall,
to the extent practicable, be utilized for affordable housing programs
within the Borough, or, if not practicable, then within the County
or Housing Region. Any party may bring a motion before the Superior
Court presenting evidence of such condition(s), and the Court may,
after considering the evidence and providing the municipality a reasonable
opportunity to respond and/or remedy the noncompliant condition(s),
and upon a finding of continuing and deliberate noncompliance, determine
to authorize LGS to direct the expenditure of funds in the trust fund.
The Court may also impose such other remedies as may be reasonable
and appropriate to the circumstances.
C.
No funds shall be expended from the Affordable Housing Trust Fund
unless the expenditure conforms to a spending plan approved by the
Court.
D.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by the Court.
[Amended 5-20-2020 by Ord. No. 9-2020]
A.
The expenditure of all funds shall conform to a spending plan approved
by the Court. Funds deposited in the housing trust fund may be used
for any activity approved by the Court to address the Borough's fair
share obligation and may be set up as a grant or revolving loan program.
Such activities include, but are not limited to: preservation or purchase
of housing for the purpose of maintaining or implementing affordability
controls, rehabilitation, new construction of affordable housing units
and related costs, accessory apartment, market to affordable or regional
housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or state standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, and/or
any other activity as permitted by the Court and specified in the
approved spending plan.
B.
Funds shall not be expended to reimburse the Borough for past housing
activities.
C.
At least 30% of all development fees collected and interest earned
shall be used to provide affordability assistance to low- and moderate-income
households in affordable units included in the municipal Fair Share
Plan. One-third of the affordability assistance portion of development
fees collected shall be used to provide affordability assistance to
those households earning 30% or less of median income by region.
(1)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, and rental assistance,
assistance with homeowners' association or condominium fees and special
assessments, and assistance with emergency repairs.
(2)
Affordability assistance to households earning 30% or less of median
income may include buying down the cost of low- or moderate-income
units in the municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income. The use of development
fees in this manner shall entitle the Borough of North Haledon to
bonus credits pursuant to N.J.A.C. 5:97-3.7.[1]
[1]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
(3)
Payments in lieu of constructing affordable units on site and funds
from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
D.
The Borough of North Haledon may contract with a private or public
entity to administer any part of its Housing Element and Fair Share
Plan, including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:96-18.[2]
[2]
Editor's Note: The provisions of N.J.A.C. 5:96 expired 6-2-2015.
E.
No more than 20% of the revenues collected from development fees
shall be expended on administration, including, but not limited to,
salaries and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, a Housing Element
and Fair Share Plan, and/or an affirmative marketing program. In the
case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Legal or other fees
related to litigation opposing affordable housing sites are not eligible
uses of the Affordable Housing Trust Fund.
[Amended 5-20-2020 by Ord. No. 9-2020]
The Borough shall provide annual reporting of Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs,
or any other entity designated by the State of New Jersey, with a
copy provided to Fair Share Housing Center and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs. The reporting shall include an accounting
of all Affordable Housing Trust Fund activity, including the sources
and amounts of funds collected and the amounts and purposes for which
any funds have been expended.
[Amended 5-20-2020 by Ord. No. 9-2020]
A.
The ability for the Borough to impose, collect and expend development
fees shall be permitted through the expiration of the repose period
covered by its Judgment of Compliance and shall continue thereafter
so long as the Borough has filed an adopted Housing Element and Fair
Share Plan with the Court or with a designated State administrative
agency, has petitioned for a Judgment of Compliance from the Court
or for substantive certification or its equivalent from a State administrative
agency authorized to approve and administer municipal affordable housing
compliance and has received approval of its development fee ordinance
from the entity that will be reviewing and approving the Housing Element
and Fair Share Plan.
B.
If the Borough fails to pursue its authorization to impose and collect
development fees after the expiration of its Judgment of Compliance,
it may be subject to forfeiture of any or all funds remaining within
its municipal trust fund. Any funds so forfeited shall be deposited
into the New Jersey Affordable Housing Trust Fund, established pursuant
to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320).
C.
After the expiration of the judgment of compliance, if the Borough
does not pursue or obtain continued authorization, the Borough shall
not impose a residential development fee on a development that receives
preliminary or final site plan approval, nor shall the Borough retroactively
impose a development fee on such a development. The Borough will not
expend development fees after the expiration of its substantive certification.
[Adopted 8-18-2021 by Ord. No. 16-2021]
The Borough of North Haledon shall file such annual monitoring
reports as may be directed by the Court regarding the status of the
implementation of its Court-approved Housing Element and Fair Share
Plan. The report shall be available to the public at the North Haledon
Municipal Building, Borough Clerk's Office, 103 Overlook Avenue,
North Haledon, NJ 07508.
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.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.[1]
The entity designated by the Borough to administer affordable
units in accordance with this article, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
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 new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Borough's
fair share obligation.
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 and
approved for crediting by the Court 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: 1) all the residents of the development wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
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 structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing, as established by 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
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
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. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
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 and 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 housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
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 duly adopted Regional Income Limits published annually
by COAH or a successor entity.
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 an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income for the applicable housing
region.
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 purposes of a rehabilitation
program.
[1]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
The provisions of this article shall apply to all affordable
housing developments and affordable housing units that currently exist
and that are proposed to be created within the Borough of North Haledon
pursuant to the Borough's most recently adopted Housing Element
and Fair Share Plan.
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
B.
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, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
C.
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.
A.
Phasing. In inclusionary developments the following schedule shall
be followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25%
|
0%
|
|
25% + 1 unit
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
B.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
C.
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable 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.
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.
(2)
At least 13% of all restricted rental units within each bedroom distribution
shall be very-low-income units (affordable to a household earning
30% of less of median income). The very-low-income units shall be
counted as part of the required number of low-income units within
the development.
(3)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units, which
percentage shall include the required 13% very-low-income units.
(4)
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.
(5)
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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements.
(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;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
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
(e)
If not all of the foregoing requirements in Subsection B(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; 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, or evidence that North Haledon 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 Borough of North Haledon'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)(f)[2] above shall be used by the Borough of North Haledon for the sole purpose of making the adaptable entrance of an 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 to the Construction Official of the Borough
of North Haledon for the conversion of adaptable to accessible entrances.
[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,[2] and that the cost estimate of such conversion is reasonable,
payment shall be made to the Borough's Affordable Housing Trust
Fund in care of the Borough Chief Financial Officer who shall ensure
that the funds are deposited into the Affordable Housing Trust Fund
and appropriately earmarked.
[2]
Editor’s Note: See now N.J.A.C. 5:23-3.14(b).
(g)
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.
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 by the
Superior Court, COAH or a successor entity.
(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 rental 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, earning 30% or less of the regional median household income,
with such very-low-income units counted toward 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 sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(5)
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, 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 one-and-one-half-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 four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, 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 homeowners'
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
size household, including an allowance for tenant-paid utilities,
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 permitted 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)
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.
The following general guidelines apply to all 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.
Affirmative marketing requirements.
(1)
North Haledon shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of the Court, COAH, or a successor entity,
compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
(2)
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 1 and covers the period of deed restriction.
(3)
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 1, comprised
of Sussex, Passaic, and Bergen counties.
(4)
The administrative agent designated by the Borough shall assure the
affirmative marketing of all existing and future affordable units
consistent with the Affirmative Marketing Plan for the municipality.
(5)
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.
(6)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
(7)
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the administrative agent shall consider
the use of language translations where appropriate.
(8)
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 North Haledon.
(9)
Applications for affordable housing shall be available in several
locations, including, at a minimum Region I county municipal buildings
and libraries; and the developer's rental office. Applications
shall be mailed to prospective applicants upon request.
(10)
In addition to other affirmative marketing strategies, the administrative
agent shall provide specific notice of the availability of affordable
housing units in North Haledon to the following entities: FSHC, the
New Jersey State Conference of the NAACP, the Latino Action Network,
County NAACP, Urban League of Bergen County, County Housing Coalition,
and Supportive Housing Coalition.
B.
Occupancy standards.
(1)
In referring certified households to specific restricted units, the
administrative agent shall, to the extent feasible and without causing
an undue delay in the occupancy of a unit, strive to:
(2)
Additional provisions related to occupancy standards, if any, shall
be provided in the municipal operating manual.
C.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
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 for a period of at least 30 years, until North Haledon
takes action to release the unit from such requirements. Prior to
such action, 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,
provided that for any development of five units or more for which
an application for development has not been filed as of the date of
the adoption of this article, the control period shall be 30 years.
(2)
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(3)
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 without the restrictions in place.
(4)
At the time of the initial sale of the unit, the initial 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 restrictions set forth in 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.
(5)
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.
(6)
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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
D.
Price restrictions for restricted ownership units, homeowners'
association fees and resale prices. 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)
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(2)
The administrative agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
(3)
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners' association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
(4)
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 anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
E.
Buyer income eligibility.
(1)
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.
(2)
Notwithstanding the foregoing, however, the administrative agent
may, upon approval by the Borough Council, and subject to the Court's
approval, permit moderate-income purchasers to buy low-income units
in housing markets if the administrative agent determines that there
is an insufficient number of eligible low-income purchasers to permit
prompt occupancy of the units. All such low-income units to be sold
to moderate-income households shall retain the required pricing and
pricing restrictions for low-income units.
(3)
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.
(4)
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 homeowners' association fees, as applicable)
does not exceed 33% of the household's eligible monthly income.
F.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
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.
(2)
With the exception of first purchase money mortgages, 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 the unit, as such price is determined by
the administrative agent in accordance with N.J.A.C. 5:80-26.6(b).
G.
Capital improvements to ownership units.
(1)
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 adds 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.
(2)
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.
H.
Control periods for restricted rental units.
(1)
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 for a period of at least 30 years, until North Haledon
takes action to release the unit from such requirements. Prior to
such action, 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, except
for those units that have not yet received approvals such that the
controls shall be for 30 years.
(2)
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 Passaic. The deed shall also identify each affordable
unit by apartment number and/or address and whether that unit is designated
as a very-low, low- or moderate-income unit. Neither the unit nor
its affordability designation shall change throughout the term of
the deed restriction. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(3)
A restricted rental unit shall remain subject to the affordability
controls of this article despite the occurrence of any of the following
events:
I.
Rent restrictions for rental units; leases.
(1)
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.
(2)
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.
(3)
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.
J.
Tenant income eligibility.
(1)
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:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
(2)
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
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:
(a)
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;
(b)
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;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
The household documents reliable anticipated 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.
K.
Municipal Housing Liaison.
(1)
The position of Municipal Housing Liaison (MHL) for the Borough of North Haledon is established by § 95-37 of the Borough Code.
(2)
The Mayor and Council of Borough of North Haledon shall appoint a
specific municipal employee to serve as a Municipal Housing Liaison
responsible for administering the affordable housing program, including
affordability controls, the Affirmative Marketing Plan, monitoring
and reporting, and, where applicable, supervising any contracted administrative
agent. The Municipal Housing Liaison shall be duly qualified through
a training program sponsored by Affordable Housing Professionals of
New Jersey before assuming the duties of Municipal Housing Liaison.
(3)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for North Haledon,
including the following responsibilities which may not be contracted
out to the administrative agent:
(a)
Serving as North Haledon's primary point of contact for
all inquiries from the state, affordable housing providers, administrative
agents and interested households;
(b)
Monitoring the status of all restricted units in North Haledon's
Fair Share Plan;
(c)
Compiling, verifying and submitting annual monitoring reports
as may be required by the Court;
(d)
Coordinating meetings with affordable housing providers and
administrative agents, as needed; and
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing at least
annually and more often as needed.
(4)
Subject to the approval of the Court, the Borough of North Haledon
may designate one or more administrative agent(s) to administer newly
constructed affordable units in accordance with UHAC. An operating
manual for each affordable housing program shall be provided by the
administrative agent(s) to be adopted by resolution of the governing
body. The operating manual(s) shall be available for public inspection
in the office of the Borough Clerk, in the office of the Municipal
Housing Liaison, and in the office(s) of the administrative agent(s).
The Municipal Housing Liaison shall supervise the contracting administrative
agent(s).
L.
Administrative agent. The administrative agent shall be an independent
entity serving under contract to and reporting to the municipality.
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. The administrative agent shall perform the duties
and responsibilities of an administrative agent as set forth in UHAC,
including those set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18
thereof, which includes:
(1)
Affirmative marketing.
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Borough of North Haledon 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.
(2)
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 noneligibility;
(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;
and
(f)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Borough of North Haledon when referring households
for certification to affordable units.
(g)
Notifying the following entities of the availability of affordable
housing units in the Borough of North Haledon: Fair Share Housing
Center, the New Jersey State Conferences of the NAACP, the Latino
Action Network, the County NAACP, Urban League of Bergen County, Bergen
County Housing Coalition, and Supportive Housing Association.
(3)
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 Passaic
County Register of Deeds or 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.
(4)
Records retention.
(5)
Resales and re-rentals.
(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 re-rental; and
(b)
Instituting and maintaining an effective means of communicating
information to low- and moderate-income households regarding the availability
of restricted units for resale or re-rental.
(6)
Processing requests from unit owners.
(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.
(7)
Enforcement.
(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)
The posting annually in all rental properties, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the administrative agent where complaints
of excess rent or other charges can be made;
(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 Borough Council and the Court, setting forth
procedures for administering the affordability controls.
(8)
Additional responsibilities.
(a)
The administrative agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet any monitoring
requirements and deadlines imposed by the Court.
(c)
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
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, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in 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 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(s) 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 adjudged
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 $500 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
(b)
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Borough of North Haledon Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a 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 that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such 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- or moderate-income unit.
(a)
The 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 his/her
right to possession terminated as well as his/her title conveyed pursuant
to the Sheriff's sale.
(b)
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 the full 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.
(c)
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.
(d)
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.
(e)
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.
(f)
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 appointed
pursuant to this article shall be filed in writing with the Court.
