[Added 6-29-2020 by Ord.
No. 2020-15; amended 3-8-2021 by Ord. No. 2021-02]
(a)
Formation; composition; terms, vacancies; compensation.
(1)
There is hereby established an advisory board to be known as
the Affordable Housing Board, whose overall purpose shall be to monitor
the compliance of the municipality in providing housing for very-low-,
low-, and moderate-income families under its Mount Laurel obligation.
(2)
The board shall consist of seven regular and up to three alternate
members appointed by the mayor with the advice and consent of the
council. At least one regular member shall be a member of the council.
All members shall be residents of Princeton during their tenure.
(3)
The term of the council member shall be one year. The terms
of the remaining regular and alternate members shall be three years,
computed from the first day of January of the year of appointment,
except that the terms of the initial appointments shall be staggered
so that to the greatest extent possible, no more than three terms
shall expire each year. If a vacancy occurs among such members, it
shall be filled for the unexpired term only. Members shall serve after
the expiration of their terms until their successors have been appointed
and qualified. Alternate members shall be designated at the time of
appointment as "alternate number 1," "alternate number 2," and "alternate
number 3." Alternate members may participate in discussions but may
not vote except in the absence or disqualification of a regular member.
Alternates shall be counted for purposes of establishing a quorum
for the board. In the event that a choice must be made as to which
alternate member is to vote, alternate members shall vote in the order
of their numerical designation.
(4)
All members shall serve without salary, but may be reimbursed
for expenses incurred in the performance of their duties.
(b)
Officers. The board shall elect a chairperson and a vice-chairperson
from among its members. Their terms of office shall be one year, and
they shall be eligible for re-election. The board shall also elect
a secretary, who may but need not be a member of the board, and it
may create and fill such other offices as it shall determine.
(c)
Powers and responsibilities. With the assistance of the housing
manager, the board shall:
(1)
Review regulations pertaining to the sale, rental, resale and
rerenting of affordable housing units.
(2)
Prepare recommendations for amendments and additions to regulations
as it deems necessary or appropriate to implement the purpose of the
affordable housing program.
(3)
Make recommendations to the Municipal Council for approval of
buyers of affordable housing units.
(4)
Make recommendations to the council regarding how municipal
funds or housing trust funds should be spent and propose priorities
for such expenditures.
(5)
Review all affirmative marketing plans for all housing in the
affordable housing program.
(6)
Provide annual reports to the council, courts (if applicable),
Fair Share Housing Center, and federal, state and local agencies as
required regarding activities undertaken in furtherance of the municipality's
implementation of its affordable housing plan.
[Added 6-29-2020 by Ord.
No. 2020-15]
(a)
Pursuant to the "Local Budget Law", N.J.S.A. 40A:4-1 et seq.,
an affordable housing utility is established in the Municipality of
Princeton and the same shall be known and cited as the "Princeton
Affordable Housing Utility".
(b)
The affordable housing utility shall commence as of August 3,
1989 and the same shall be retroactive to that date.
(d)
The municipal officers and employees are directed and empowered
to adopt accounting procedures consistent with this article and the
aforesaid statutes in the creation of the affordable housing utility.
(e)
The affordable housing utility shall be governed by the governing
body of the Municipality of Princeton.
(f)
All matters with respect to the operation and conduct of the
affordable housing utility not determined by this article shall be
determined by resolutions to be hereafter adopted.
(g)
Upon completion of the affordable housing units and the appropriate
sales of those units, after all required debt service payments are
made this utility will terminate.
[Added 6-29-2020 by Ord.
No. 2020-15]
(a)
Princeton shall appoint a specific municipal employee to serve
as a Municipal Housing Liaison responsible for overseeing the Municipality'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 Princeton's
Affirmative Marketing Plan; fulfilling monitoring and reporting requirements;
and supervising Administrative Agent(s). The Municipality of Princeton
shall adopt this article which creates the position of Municipal Housing
Liaison and the Municipality of Princeton shall adopt a resolution
which appoints 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 the Municipality
of Princeton, including the following responsibilities, which may
not be contracted out to the Administrative Agent:
(1)
Serving as the Municipality of Princeton'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 the Municipality's
Fair Share Plan;
(3)
Compiling, verifying, submitting and posting all monitoring
reports as required by the Court and by this ordinance;
(4)
Coordinating meetings with affordable housing providers and
Administrative Agents, as needed;
(5)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing at least
annually and more often as needed; and
(6)
Maintaining and updating as needed the list of entities to be
notified of the availability of affordable housing units in the Municipality
pursuant to Sections T10B-354.2g and T10B-355.9 below, which shall
include all of the entities listed in said section together with any
other entities deemed reasonably necessary or appropriate for the
effective marketing of the availability of affordable housing units
in the Municipality.
(c)
Subject to the approval of the Court, the Municipality shall
designate one or more Administrative Agent(s) to administer and to
affirmatively market the affordable units constructed in the Municipality
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 Municipal 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).
[Added 6-29-2020 by Ord.
No. 2020-15; amended 12-21-2021 by Ord. No. 2021-34]
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 Sections 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 Municipality’s Affirmative
Marketing Plan and the provisions of N.J.A.C. 5:80-26.15 and applicable
law. The affirmative marketing shall include the community and regional
organizations included in the Municipality’s approved Affirmative
Marketing Plan and identified in the December 18, 2019 Settlement
Agreement with Fair Share Housing Center, and it shall also include
posting of all affordable units on the New Jersey Housing Resource
Center website in accordance with applicable law; and
(2)
Providing counseling or contracting to provide counseling services
to very-low, 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 non-eligibility;
(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 Municipality's
Affirmative Marketing Plan when referring households for certification
to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Municipality: Fair Share Housing Center; the
New Jersey State Conference of the NAACP; the Latino Action Network;
the Trenton, Greater Red Bank, Asbury Park/Neptune, Bayshore, Greater
Freehold, and Greater Long Branch chapters of the NAACP; Shiloh Baptist
Church; the Supportive Housing Association; the New Jersey Housing
Resource Center; and any other entities on the list maintained by
the Municipal Housing Liaison pursuant to Section T10B-353.2f above,
as said list may be updated or modified from time to time.
(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 Mercer
County Register of Deeds or Mercer 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 Re-rentals:
(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 re-rental; 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 re-rental.
(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 for-sale
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 Governing Body and the Court, setting forth
procedures for administering the affordability controls.
(g)
Records Retention.
(h)
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.
[Added 6-29-2020 by Ord.
No. 2020-15]
(a)
The Municipality shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of the Court, which 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,
gender identity and expression, 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 4
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 4, comprising
Mercer, Monmouth and Ocean counties. Pursuant to the New Jersey Fair
Housing Act (C.52:27D-311), a preference for very low, low and moderate
income veterans duly qualified under N.J.A.C. 54:4-8.10 may also be
exercised, provided an agreement to this effect has been executed
between the developer or landlord and the Municipality prior to the
affirmative marketing of the units.
(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 re-rentals. The Administrative Agent designated by
the Municipality 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 the Municipality, 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; the Trenton,
Greater Red Bank, Asbury Park/Neptune, Bayshore, Greater Freehold,
and Greater Long Branch chapters of the NAACP; Shiloh Baptist Church;
the Supportive Housing Association; the New Jersey Housing Resource
Center; and any other entities on the list maintained by the Municipal
Housing Liaison pursuant to section T10B-353.2f above, as said list
may be updated or modified from time to time.
(j)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
[Added 6-29-2020 by Ord.
No. 2020-15]
(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 Municipality's 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.
[Added 6-29-2020 by Ord.
No. 2020-15]
Appeals from all decisions of an Administrative Agent appointed
pursuant to this Ordinance shall be filed in writing as an action
in lieu of prerogative writ in the Superior Court, Law Division in
the County with jurisdiction over the Municipality's affordable housing
proceedings, or in such other manner as the Superior Court may direct.
