[Added 6-29-2020 by Ord.
No. 2020-15]
(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 Princeton
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 non-restricted, 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 non-restricted fair market
value and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
(e)
The affordability controls set forth in this 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.
[Added 6-29-2020 by Ord.
No. 2020-15]
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 Section
T10B-347.
[Added 6-29-2020 by Ord.
No. 2020-15]
(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 Governing Body, 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.
[Added 6-29-2020 by Ord.
No. 2020-15]
(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).
[Added 6-29-2020 by Ord.
No. 2020-15]
(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.