[HISTORY: Adopted by the Township Committee of the Township
of Union as indicated in article histories. Amendments noted where
applicable.]
[Adopted 6-26-2018 by Ord. No. 5588[1] (Ch. 150, Art. I, of the 2004 Code)]
The Township of Union shall comply
with the following monitoring and reporting requirements regarding
the status of the implementation of its Court-approved Housing Element
and Fair Share Plan:
A.
Beginning
on April 1, 2019, and on every anniversary of that date through July
1, 2025, the Township agrees to provide annual reporting of its Affordable
Housing Trust Fund activity to the New Jersey Department of Community
Affairs, Council on Affordable Housing, or Local Government Services,
or other entity designated by the State of New Jersey, with a copy
provided to Fair Share Housing Center (FSHC) and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs (NJDCA), Council on Affordable Housing
(COAH), or Local Government Services (NJLGS). The reporting shall
include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
B.
Beginning
on April 1, 2019, and on every anniversary of that date through July
27, 2025, the Township agrees to provide annual reporting of the status
of all affordable housing activity within the municipality through
posting on the municipal website with a copy of such posting provided
to Fair Share Housing Center, using forms previously developed for
this purpose by COAH or any other forms endorsed by the Special Master
and FSHC.
C.
By
July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the Township
will post on its municipal website, with a copy provided to FSHC,
a status report as to its implementation of its plan and an analysis
of whether any unbuilt sites or unfulfilled mechanisms continue to
present a realistic opportunity and whether any mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the municipality, with
a copy to FSHC, regarding whether any sites no longer present a realistic
opportunity and should be replaced and whether any mechanisms to meet
unmet need should be revised or supplemented. Any interested party
may by motion request a hearing before the Court regarding these issues.
D.
By
March 1, 2020, and every third year thereafter, as required by N.J.S.A.
52:27D-329.1, the Township will post on its municipal website, with
a copy provided to FSHC, a status report as to its satisfaction of
its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
The following terms when used in
this article shall have the meanings given in this section:
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 Township to administer affordable
units in accordance with this article, N.J.A.C. 5:93,[2] 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 Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a one-hundred-percent
affordable housing development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act 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:
All the residents of the development
wherein the unit is situated are 62 years of age or older; or
At least 80% of the units are occupied
by one person who is 55 years of age or older; or
The development has been designated
by the Secretary of the U.S. Department of Housing and Urban Development
as "housing for older persons" as defined in Section 807(b)(2) of
the Fair Housing Act, 42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A 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 Committee 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 regional median household income by household
size.
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 regional median household income
by household size.
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 regional median household income by household
size.
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.
A.
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 Township of Union pursuant to the Township's
most recently adopted Housing Element and Fair Share Plan.
B.
Moreover,
this article shall 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 and including any developments funded with low-income housing
tax credits.
C.
If
the Township permits the construction of multifamily or single-family
attached residential development that is "approvable" and "developable,"
as defined at N.J.A.C. 5:93-1.3,[1] at a gross residential density of 20 units to the acre
or more, the Township shall require that an appropriate percentage
of the residential units be set aside for low- and moderate-income
households. This requirement shall apply beginning on July 25, 2017.
The requirement shall apply throughout the Township except through
the entirety of the Stuyvesant Avenue/Downtown corridor as depicted
in Exhibit C to this article, which shall be and remain exempt from
the requirements contained herein.[2] Where applicable within the Township, this requirement
shall apply to any multifamily or single-family attached residential
development, including the residential portion of a mixed-use project
and including the conversion of a nonresidential structure to a residential
development, which development consists of 20 or more new residential
units, whether permitted by a zoning amendment, a variance granted
by the Township's Planning Board, Board of Adjustment, or adoption
of a redevelopment plan or amended redevelopment plan in areas in
need of redevelopment or rehabilitation.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
D.
For
any such development for which the Township's land use ordinances
(e.g., zoning or an adopted redevelopment plan) already permitted
residential development as of July 25, 2017, this requirement shall
only apply if the Township permits an increase in approvable and developable
gross residential density to at least twice the permitted approvable
and developable gross residential density as of the effective date
of this agreement. Nothing in this subsection precludes the Township
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.
E.
For
inclusionary projects in which the low- and moderate-income units
are to be offered for sale, the appropriate set-aside percentage is
20%; for projects in which the low and moderate income units are to
be offered for rent, the appropriate set-aside percentage is 15%.
F.
This
requirement does not create any entitlement for a property owner or
applicant for a zoning amendment, variance, or adoption of a redevelopment
plan or amended redevelopment plan in areas in need of redevelopment
or rehabilitation, or for approval of any particular proposed project.
This requirement does not apply to any sites or specific zones otherwise
identified in the settlement agreement or Fair Share Plan, for which
density and set-aside standards shall be governed by the specific
standards set forth therein.
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.
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
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
A.
Low/moderate
split and bedroom distribution of affordable housing units.
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of regional median
income by household size). The very-low-income units shall be counted
as part of the required number of low-income units within the development.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall be
no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be two-bedroom
units;
(c)
At least 20% of all low- and moderate-income units shall be three-bedroom
units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
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 B(2)(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 B(2)(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 Union 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 Township of Union'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 Township of Union 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 Township of
Union 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, and that
the cost estimate of such conversion is reasonable, payment shall
be made to the Township's Affordable Housing Trust Fund in care of
the Township Treasurer who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriately earmarked.
(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 using
calculation procedures approved by the Court. Income limits for all
units that are part of the Township's Housing Element and Fair Share
Plan and for which income limits are not already established through
a federal program exempted from the UHAC pursuant to N.J.A.C. 5:80-26.1,
shall be updated by the Borough annually within 30 days of the publication
of determinations of median income by the Department of Housing and
Urban Development ("HUD") as follows:
(a)
Regional income limits shall be established for the region that the
Township is located within based on the median income by household
size, which shall be established by a regional weighted average of
the uncapped Section 8 income limits published by HUD. To compute
this regional income limit, the HUD determination of median county
income for a family of four is multiplied by the estimated households
within the county according to the most recent decennial Census. The
resulting product for each county within the housing region is summed.
The sum is divided by the estimated total households from the most
recent decennial Census in the Township's housing region. This quotient
represents the regional weighted average of median income for a household
of four. The income limit for a moderate-income unit for a household
of four shall be 80% of the regional weighted average median income
for a family of four. The income limit for a low-income unit for a
household of four shall be 50% of the HUD determination of the regional
weighted average median income for a family of four. The income limit
for a very-low-income unit for a household of four shall be 30% of
the regional weighted average median income for a family of four.
These income limits shall be adjusted by household size based on multipliers
used by HUD to adjust median income by household size. In no event
shall the income limits be less than those for the previous year.
(b)
The income limits are the result of applying the percentages set forth in Subsection D(1)(a) above to HUD's determination of median income for the fiscal year 2017, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)(3) shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection D(1)(a) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
(d)
In establishing sale prices and rents of affordable housing units,
the Township's administrative agent shall follow the procedures set
forth in UHAC, utilizing the regional income limits established pursuant
to the process defined above:
[1]
The resale prices 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 determined pursuant to
the above methodology. In no event shall the maximum resale price
established by the administrative agent be lower than the last recorded
purchase price.
[2]
The rent levels of very-low-, low- and moderate-income units may
be increased annually based on the percentage increase in the Housing
Consumer Price Index for the Northeast Urban Area, upon its publication
for the prior calendar year. 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.
(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, which very-low-income units shall be part of the low-income
requirement.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different 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 homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
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 rents of very-low-, low- and moderate-income units may be increased
annually based on the permitted percentage increase in the Housing
Consumer Price Index for the Northeast Urban Area. This increase shall
not exceed 9% in any one year. Rent increases for units constructed
pursuant to low-income housing tax credit regulations shall be indexed
pursuant to the regulations governing low-income housing tax credits.
A.
Affordable
units shall utilize the same type of heating source as market units
within an inclusionary development.
B.
Tenant-paid
utilities included in the utility allowance shall be set forth in
the lease and shall be consistent with the utility allowance approved
by HUD for the Section 8 program.
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:
A.
Control
periods for restricted ownership units shall be in accordance with
N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each restricted
ownership unit shall remain subject to the requirements of this article
for a period of at least 30 years, until Union 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.
B.
The
affordability control period for a restricted ownership unit shall
commence on the date the initial certified household takes title to
the unit.
C.
Prior
to the issuance of the initial certificate of occupancy for a restricted
ownership unit and upon each successive sale during the period of
restricted ownership, the administrative agent shall determine the
restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.
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 non-exempt 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.
E.
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.
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.
Price restrictions for restricted
ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as
may be amended and supplemented, including:
A.
The
initial purchase price for a restricted ownership unit shall be approved
by the administrative agent.
B.
The
administrative agent shall approve all resale prices, in writing and
in advance of the resale, to assure compliance with the foregoing
standards.
C.
The
master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
D.
The owners of restricted ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See § 190-13.
A.
Buyer
income eligibility for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such
that low-income ownership units shall be reserved for households with
a gross household income less than or equal to 50% of median income
and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
B.
Notwithstanding
the foregoing, the administrative agent may, upon approval by the
Township Committee, and subject to the Court's approval, permit a
moderate-income purchaser to buy a low-income unit if and only if
the administrative agent can demonstrate that there is an insufficient
number of eligible low-income purchasers in the housing region to
permit prompt occupancy of the unit and all other reasonable efforts
to attract a low-income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
C.
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.
D.
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
eligible monthly income.
E.
Notwithstanding
the foregoing, the administrative agent may, upon approval by the
Township Committee, and subject to Court's approval, permit a moderate-income
purchaser to buy a low-income unit if and only if the administrative
agent can demonstrate that there is an insufficient number of eligible
low-income purchasers in the housing region to permit prompt occupancy
of the unit and all other reasonable efforts to attract a low-income
purchaser, including pricing and financing incentives, have failed.
Any such low-income unit that is sold to a moderate-income household
shall retain the required pricing and pricing restrictions for a low-income
unit.
F.
A certified household that purchases a restricted ownership unit must occupy it as a 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 a hardship, to lease the restricted unit to another certified household for a period not to exceed one year. Violations of this provision shall be subject to the applicable enforcement provisions of § 190-20 of this article.
A.
Prior
to incurring any indebtedness to be secured by a restricted ownership
unit, the owner shall apply to the administrative agent for a determination
in writing that the proposed indebtedness complies with the provisions
of this section, and the administrative agent shall issue such determination
prior to the owner incurring such indebtedness.
B.
With
the exception of 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).
A.
The
owners of restricted ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B.
Upon
the resale of a restricted ownership unit, all items of property that
are permanently affixed to the unit or were included when the unit
was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the administrative
agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
administrative agent. Unless otherwise approved by the administrative
agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.
Control
periods for restricted rental units shall be in accordance with N.J.A.C.
5:80-26.11, as may be amended and supplemented, and each restricted
rental unit shall remain subject to the requirements of this article
for a period of at least 30 years, until Union 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.
B.
Deeds
of all real property that include restricted rental units shall contain
deed restriction language. The deed restriction shall have priority
over all mortgages on the property, and the deed restriction shall
be filed by the developer or seller with the records office of the
County of 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.
A
restricted rental unit shall remain subject to the affordability controls
of this article despite the occurrence of any of the following events:
A.
A
written lease shall be required for all restricted rental units and
tenants shall be responsible for security deposits and the full amount
of the rent as stated on the lease. A copy of the current lease for
each restricted rental unit shall be provided to the administrative
agent.
B.
No
additional fees or charges shall be added to the approved rent (except,
in the case of units in an assisted living residence, to cover the
customary charges for food and services) without the express written
approval of the administrative agent.
C.
Application
fees (including the charge for any credit check) shall not exceed
5% of the monthly rent of the applicable restricted unit and shall
be payable to the administrative agent to be applied to the costs
of administering the controls applicable to the unit as set forth
in this article.
D.
No
rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this article.
A.
Tenant
income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of the regional
median household income by household size.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
household income by household size.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median household
income by household size.
B.
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:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents 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.
A.
The
Township of Union shall appoint a specific municipal employee to serve
as a Municipal Housing Liaison responsible for overseeing the Township's
affordable housing program, including overseeing the administration
of affordability controls on the affordable units and the affirmative
marketing of available affordable units in accordance with the Township's
affirmative marketing plan; fulfilling monitoring and reporting requirements;
and supervising administrative agent(s). Union shall adopt an ordinance
creating the position of Municipal Housing Liaison and a resolution
appointing the person to fulfill the position of Municipal Housing
Liaison. The Municipal Housing Liaison shall be appointed by the governing
body and may be a full or part time municipal employee. The Municipal
Housing Liaison shall be approved by the Court and shall be duly qualified
through a training program sponsored by Affordable Housing Professionals
of New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The
Municipal Housing Liaison shall be responsible for oversight and administration
of the affordable housing program for Union, including the following
responsibilities which may not be contracted out to the administrative
agent:
(1)
Serving as Union's primary point of contact for all inquiries from
the state, affordable housing providers, administrative agents and
interested households;
(2)
Monitoring the status of all restricted units in Union's Fair Share
Plan;
(3)
Compiling, verifying, submitting and posting all monitoring reports
as required by the Court and by this article;
(4)
Coordinating meetings with affordable housing providers and administrative
agents, as needed; and
(5)
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed.
C.
Subject
to the approval of the Court, the Township of Union shall designate
one or more administrative agent(s) to administer and to affirmatively
market the affordable units constructed in the Township in accordance
with UHAC and this article. 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 and subject to approval
of the Court. The operating manual(s) shall be available for public
inspection in the office of the Township 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 work of
the administrative agent(s).
An 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, 16 and 18 thereof,
which includes:
A.
Affirmative
marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Township of Union and the provisions of N.J.A.C. 5:80-26.15; and
(2)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B.
Household
certification:
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)
Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendices J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5)
Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
(6)
Employing a random selection process as provided in the affirmative
marketing plan of the Township of Union when referring households
for certification to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Township of Union: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
East Orange NAACP, Newark NAACP, Morris County NAACP and Elizabeth
NAACP.
C.
Affordability
controls:
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Union
County Register of Deeds or Union County Clerk's office after the
termination of the affordability controls for each restricted unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
D.
Resales
and rerentals:
(1)
Instituting and maintaining an effective means of communicating information
between owners and the administrative agent regarding the availability
of restricted units for resale or rerental; and
(2)
Instituting and maintaining an effective means of communicating information
to low- (or very-low-) and moderate-income households regarding the
availability of restricted units for resale or rerental.
E.
Processing
requests from unit owners:
(1)
Reviewing and approving requests for determination from owners of
restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this article;
(2)
Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to make capital improvements to the units
that would affect the selling price, such authorizations to be limited
to those improvements resulting in additional bedrooms or bathrooms
and the depreciated cost of central air-conditioning systems;
(3)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units for
hardship waivers.
F.
Enforcement:
(1)
Securing annually from the 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;
(2)
Securing from all developers and sponsors of restricted units, at
the earliest point of contact in the processing of the project or
development, written acknowledgement of the requirement that no restricted
unit can be offered, or in any other way committed, to any person,
other than a household duly certified to the unit by the administrative
agent;
(3)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the administrative agent where complaints of excess
rent or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling units,
reminding them of the notices and requirements outlined in N.J.A.C.
5:80-26.18(d)4;
(5)
Establishing a program for diverting unlawful rent payments to the
municipality's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each affordable
housing program administered by the administrative agent, to be approved
by the Township Committee and the Court, setting forth procedures
for administering the affordability controls.
G.
Additional
responsibilities:
(1)
The administrative agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(2)
The administrative agent shall prepare monitoring reports for submission
to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this article.
(3)
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.
The
Township of Union shall adopt by resolution an affirmative marketing
plan, subject to approval of the Court, that is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B.
The
affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The affirmative
marketing plan is 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 marketing activities toward
Housing Region 2 and is required to be followed throughout the period
of restriction.
C.
The
affirmative marketing plan shall provide a regional preference for
all households that live and/or work in Housing Region 2, comprised
of Union, Essex, Morris and Warren Counties.
D.
The
municipality has the ultimate responsibility for adopting the affirmative
marketing plan and for the proper administration of the Affirmative
Marketing Program, including initial sales and rentals and resales
and rerentals. The administrative agent designated by the Township
of Union shall implement the affirmative marketing plan to assure
the affirmative marketing of all affordable units.
E.
In
implementing the affirmative marketing plan, the administrative agent
shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F.
The
affirmative marketing 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.
G.
The
affirmative marketing process for available affordable units shall
begin at least four months (120 days) prior to the expected date of
occupancy.
H.
Applications
for affordable housing shall be available in several locations, including,
at a minimum, the county administration building and/or the county
library for each county within the housing region; the municipal administration
building and the municipal library in the municipality in which the
units are located; and the developer's rental office. Applications
shall be mailed to prospective applicants upon request.
I.
In
addition to other affirmative marketing strategies, the administrative
agent shall provide specific notice of the availability of affordable
housing units in Union, and copies of the application forms, to the
following entities: Fair Share Housing Center, the New Jersey State
Conference of the NAACP, the Latino Action Network, East Orange NAACP,
Newark NAACP, Morris County NAACP and Elizabeth NAACP.
J.
The
costs of advertising and affirmative marketing of the affordable units
shall be the responsibility of the developer, sponsor or owner.
A.
Upon
the occurrence of a breach of any of the regulations governing an
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 Township of Union 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 right
to possession terminated as well as his 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.
[Adopted 3-13-2018 by Ord. No. 5570[1] (Ch. 150, Art. II, of the 2004 Code)]
This article establishes standards for the collection, maintenance,
and expenditure of development fees that are consistent with COAH's
regulations developed in response to P.L. 2008, c. 46, Sections 8
and 32 through 38 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential
Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7). Fees collected
pursuant to this article shall be used for the sole purpose of providing
very-low, low- and moderate-income housing in accordance with a Court-approved
spending plan.
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 one-hundred-percent affordable
housing development.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act.
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.
Money paid by a developer 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 assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 1-35c).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A.
Imposition of fees.
(1)
Within the Township of Union,
all residential developers, except for developers of the types of
developments specifically exempted below and developers of developments
that include affordable housing, shall pay a fee of 1.5% of the equalized
assessed value for all new residential development, provided no increased
density is permitted. Development fees shall also be imposed and collected
when an additional dwelling unit is added to an existing residential
structure; in such cases, the fee shall be calculated based on the
increase in the equalized assessed value of the property due to the
additional dwelling unit.
(2)
When an increase in residential
density is permitted pursuant to a "d" variance granted under N.J.S.A.
40:55D-70d(5), developers shall be required to pay a "bonus" development
fee of 6% of the equalized assessed value for each additional unit
that may be realized, except that this provision shall not be applicable
to a development that will include affordable housing. 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.
B.
Eligible exactions, ineligible
exactions and exemptions for residential developments.
(1)
Affordable housing developments
and/or developments where the developer has made a payment in lieu
of on-site construction of affordable units, if permitted by ordinance
or by agreement with the Township of Union, shall be exempt from the
payment of development fees.
(2)
Developments that have received
preliminary or final site plan approval prior to the adoption of this
article and any preceding ordinance permitting the collection of development
fees shall be exempt from the payment of development fees, unless
the developer seeks a substantial change in the original approval.
Where site plan approval is not applicable, the issuance of a zoning
permit and/or construction permit shall be synonymous with preliminary
or final site plan approval for the purpose of determining the right
to an exemption. In all cases, the applicable fee percentage shall
be determined based upon the development fee ordinance in effect on
the date that the construction permit is issued.
(3)
Improvements or additions
to existing one- and two-family dwellings on individual lots shall
not be required to pay a development fee, but a development fee shall
be charged for any new dwelling constructed as a replacement for a
previously existing dwelling on the same lot that was or will be demolished,
unless the owner resided in the previous dwelling for a period of
one year or more prior to obtaining a demolition permit. Where a development
fee is charged for a replacement dwelling, the development fee shall
be calculated on the increase in the equalized assessed value of the
new structure as compared to the previous structure.
(4)
Homes replaced as a result
of a natural disaster, fire or flood shall be exempt from the payment
of a development fee.
A.
Imposition of fees.
(1)
Within all zoning districts,
nonresidential developers, except for developers of the types of developments
specifically exempted below, shall pay a fee equal to 2.5% of the
equalized assessed value of the land and improvements, for all new
nonresidential construction on an unimproved lot or lots.
(2)
Within all zoning districts,
nonresidential developers, except for developers of the types of developments
specifically exempted below, shall also pay a fee equal to 2.5% of
the increase in equalized assessed value resulting from any additions
to existing structures to be used for nonresidential purposes.
(3)
Development fees shall be
imposed and collected when an existing structure is demolished and
replaced. The development fee of 2.5% shall be calculated on the difference
between the equalized assessed value of the pre-existing land and
improvements and the equalized assessed value of the newly improved
structure, i.e., land and improvements, and such calculation shall
be made at the time a final certificate of occupancy is issued. If
the calculation required under this section results in a negative
number, the nonresidential development fee shall be zero.
B.
Eligible exactions, ineligible
exactions and exemptions for nonresidential development.
(1)
The nonresidential portion
of a mixed-use inclusionary or market rate development shall be subject
to a development fee of 2.5%, unless otherwise exempted below.
(2)
The development fee of 2.5%
shall not apply to an increase in equalized assessed value resulting
from alterations, change in use within the existing footprint, reconstruction,
renovations and repairs.
(3)
Nonresidential developments
shall be exempt from the payment of nonresidential development fees
in accordance with the exemptions required pursuant to the Statewide
Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7),
as specified in Form N-RDF "State of New Jersey Non-Residential Development
Certification/Exemption." Any exemption claimed by a developer shall
be substantiated by that developer.
(4)
A developer of a nonresidential
development exempted from the nonresidential development fee pursuant
to the Statewide Non-Residential Development Fee Act shall be subject
to the fee at such time as the basis for the exemption no longer applies,
and shall make the payment of the nonresidential development fee,
in that event, within three years after that event or after the issuance
of the final certificate of occupancy for the nonresidential development,
whichever is later.
(5)
If a property which was exempted
from the collection of a nonresidential development fee thereafter
ceases to be exempt from property taxation, the owner of the property
shall remit the fees required pursuant to this section within 45 days
of the termination of the property tax exemption. Unpaid nonresidential
development fees under these circumstances may be enforceable by the
Township of Union as a lien against the real property of the owner.
A.
Upon the granting of a preliminary,
final or other applicable approval for a development, the approving
authority or entity shall notify or direct its staff to notify the
Construction Official responsible for the issuance of a construction
permit.
B.
For nonresidential developments
only, the developer shall also be provided with a copy of Form N-RDF,
"State of New Jersey Non-Residential Development Certification/Exemption,"
to be completed as per the instructions provided. The developer of
a nonresidential development shall complete Form N-RDF as per the
instructions provided. The Construction Official shall verify the
information submitted by the nonresidential developer as per the instructions
provided in the Form N-RDF. The Tax Assessor shall verify exemptions
and prepare estimated and final assessments as per the instructions
provided in Form N-RDF.
C.
The Construction Official responsible
for the issuance of a construction permit shall notify the Township
Tax Assessor of the issuance of the first construction permit for
a development which is subject to a development fee.
D.
Within 90 days of receipt of
such notification, the Township Tax Assessor shall prepare an estimate
of the equalized assessed value of the development based on the plans
filed.
E.
The Construction Official responsible
for the issuance of a final certificate of occupancy shall notify
the Township Tax Assessor of any and all requests for the scheduling
of a final inspection on a property which is subject to a development
fee.
F.
Within 10 business days of a
request for the scheduling of a final inspection, the Township Tax
Assessor shall confirm or modify the previously estimated equalized
assessed value of the improvements associated with the development;
calculate the development fee; and thereafter notify the developer
of the amount of the fee.
G.
Should the Township of Union
fail to determine or notify the developer of the amount of the development
fee within 10 business days of the request for final inspection, the
developer may estimate the amount due and pay that estimated amount
consistent with the dispute process set forth in Subsection b of Section
37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
H.
Except as provided in § 190-26A(3) hereinabove, 50% of the initially calculated development fee shall be collected at the time of issuance of the construction permit. The remaining portion shall be collected at the time of issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at the time of issuance of the construction permit and that determined at the time of issuance of the certificate of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge
residential development fees imposed by filing a challenge with the
County Board of Taxation. Pending a review and determination by the
Board, collected fees shall be placed in an interest-bearing escrow
account by the Township of Union. Appeals from a determination of
the Board may be made to the tax court in accordance with the provisions
of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq.,
within 90 days after the date of such determination. Interest earned
on amounts escrowed shall be credited to the prevailing party.
(2)
A developer may challenge
nonresidential development fees imposed by filing a challenge with
the Director of the Division of Taxation. Pending a review and determination
by the Director, which shall be made within 45 days of receipt of
the challenge, collected fees shall be placed in an interest-bearing
escrow account by the Township of Union. Appeals from a determination
of the Director may be made to the tax court in accordance with the
provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1
et seq., within 90 days after the date of such determination. Interest
earned on amounts escrowed shall be credited to the prevailing party.
A.
There is hereby created a separate,
interest-bearing Affordable Housing Trust Fund to be maintained by
the Chief Financial Officer of the Township of Union for the purpose
of depositing development fees collected from residential and nonresidential
developers and proceeds from the sale of units with extinguished controls.
B.
The following additional funds
shall be deposited in the Affordable Housing Trust Fund and shall
at all times be identifiable by source and amount:
(1)
Payments in lieu of on-site
construction of a fraction of an affordable unit, where permitted
by ordinance or by agreement with the Township of Union;
(2)
Funds contributed by developers
to make 10% of the adaptable entrances in a townhouse or other multistory
attached dwelling unit development accessible;
(3)
Rental income from municipally
operated units;
(4)
Repayments from affordable
housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of
affordable units; and
(7)
Any other funds collected
in connection with Union's affordable housing program.
C.
In the event of a failure by
the Township of Union 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 the judgment 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 Township of Union, or, if not practicable,
then within the County or the Housing Region.
D.
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 to 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 or impose such other remedies
as may be reasonable and appropriate to the circumstances.
E.
Interest accrued in the Affordable
Housing Trust Fund shall only be used to fund eligible affordable
housing activities approved by the Court.
A.
The expenditure of all funds
shall conform to a spending plan approved by the Court. Funds deposited
in the Affordable Housing Trust Fund may be used for any activity
approved by the Court to address the Township of Union'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; housing rehabilitation; new construction of affordable housing
units and related costs; accessory apartments; a market to affordable
program; 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 permitted by the Court and specified
in the approved spending plan.
B.
Funds shall not be expended to
reimburse the Township of Union for past housing activities.
C.
At least 30% of all development
fees collected and interest earned on such fees shall be used to provide
affordability assistance to very-low-, 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 very-low-income
households earning 30% or less of the regional median household income
by household size for Housing Region 2, in which Union is located.
(1)
Affordability assistance
programs may include down payment assistance, security deposit assistance,
low-interest loans, rental assistance, assistance with homeowners'
association or condominium fees and special assessments, and assistance
with emergency repairs. The specific programs to be used for affordability
assistance shall be identified and described within the spending plan.
(2)
Affordability assistance
to households earning 30% or less of the regional median household
income by household size 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 specific programs to be used for very-low-income affordability
assistance shall be identified and described within the spending plan.
(3)
Payments in lieu of constructing
affordable housing units on site, if permitted by ordinance or by
agreement with the Township of Union, and funds from the sale of units
with extinguished controls shall be exempt from the affordability
assistance requirement.
D.
The Township of Union may contract
with a private or public entity to administer any part of its Housing
Element and Fair Share Plan, including its programs for affordability
assistance.
E.
No more than 20% of all revenues
collected from development fees may be expended on administration,
including, but not limited to, salaries and benefits for municipal
employees or consultants' fees necessary to develop or implement a
new construction program, prepare a Housing Element and Fair Share
Plan, and/or administer an affirmative marketing program or a rehabilitation
program.
(1)
In the case of a rehabilitation
program, the administrative costs of the rehabilitation program shall
be included as part of the 20% of collected development fees that
may be expended on administration.
(2)
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 or related to securing or appealing a judgment from the Court
are not eligible uses of the Affordable Housing Trust Fund.
The Township of Union shall provide annual reporting of Affordable
Housing Trust Fund activity to the State of New Jersey, Department
of Community Affairs, Council on Affordable Housing or Local Government
Services or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs, Council on Affordable Housing or
Local Government Services. 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. Such reporting shall include an accounting
of development fees collected from residential and nonresidential
developers, payments in lieu of constructing affordable units on site
(if permitted by ordinance or by agreement with the Township), funds
from the sale of units with extinguished controls, barrier-free escrow
funds, rental income from Township-owned affordable housing units,
repayments from affordable housing program loans, and any other funds
collected in connection with Union's affordable housing programs,
as well as an accounting of the expenditures of revenues and implementation
of the spending plan approved by the Court.
A.
The ability for the Township
of Union to impose, collect and expend development fees shall expire
with the expiration of the repose period covered by its judgment of
compliance unless the Township of Union has first 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 Township of Union fails
to renew its ability to impose and collect development fees prior
to the expiration of its judgment of compliance, it may be subject
to forfeiture of any or all funds remaining within its Affordable
Housing Trust Fund. Any funds so forfeited shall be deposited into
the "New Jersey Affordable Housing Trust Fund" established pursuant
to Section 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320).
C.
The Township of Union shall not
impose a residential development fee on a development that receives
preliminary or final site plan approval after the expiration of its
judgment of compliance, nor shall the Township of Union retroactively
impose a development fee on such a development. The Township of Union
also shall not expend any of its collected development fees after
the expiration of its judgment of compliance.
