[HISTORY: Adopted by the Township Council
of the Township of Logan 9-1-2020 by Ord. No. 11-2020. Amendments noted
where applicable.]
The Township of Logan shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Housing Element and Fair Share Plan:
A.
Commencing on the effective date of this article and on every anniversary
of that date through July 7, 2025, the Township shall 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.
Commencing on the effective date of this article and on every anniversary
of that date through July 7, 2025, the Township shall 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.
Commencing on the effective date of this article 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 July 7, 2021, 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.
The entity designated by the Township to administer affordable
units in accordance with this article, N.J.A.C. 5:93,[1] 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,[2] 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 100% 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: 1) all the residents of the development wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607(b)(2).
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development, including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
A development containing both affordable units and market-rate
units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the 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.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Township of Logan.
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.
5:80-26.1, 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.
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
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 Logan 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 also including projects funded with low-income housing
tax credits.
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(1)
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that
the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the Court;
(2)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b,
Chapter 93, Substantive Rules of the New Jersey Council on Affordable
Housing for the Period Beginning June 6, 1994, expired on 10-16-2016.
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 for the
issuance of certificates of occupancy for the required affordable
housing units relative to the issuance of certificates of occupancy
for the permitted market units shall be followed:
|
Maximum Percentage of Market-Rate Units Completed (COs Issued)
(%)
|
Minimum Percentage of Low- and Moderate-Income Units Completed
(COs Issued)
(%)
|
|---|---|
|
25
|
0
|
|
25 + 1 unit
|
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:
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7, and the following.
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(e)
If not all of the foregoing requirements in Subsection B(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that Logan 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 Logan'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 Logan 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 Logan 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.
[6]
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 Township 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 2019, 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. 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,
homeowners' and private mortgage insurance and condominium or
homeowners' association fees do not exceed 28% of the eligible
monthly income of the appropriate size household as determined under
N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided,
however, that the price shall be subject to the affordability average
requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the Administrative Agent be lower than the last
recorded purchase price.
(10)
The 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 newly constructed restricted ownership units
shall be in accordance with N.J.A.C. 5:80-26.5, and each newly constructed
restricted ownership unit shall remain subject to the requirements
of this article for a period of at least 50 years, until Logan 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.
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 nonexempt sale after
the unit's release from the restrictions set forth in this article,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
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 homeowners' 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 approved capital improvements. Eligible capital improvements shall
be those that render the unit suitable for a larger household or the
addition of a bathroom.
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 Council, 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, homeowners' and private mortgage
insurance and condominium or homeowners' association fees, as
applicable) does not exceed 33% of the household's eligible monthly
income.
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 newly constructed restricted rental units shall
be in accordance with N.J.A.C. 5:80-26.11, and each newly constructed
restricted rental unit shall remain subject to the requirements of
this article for a period of at least 50 years, until Logan 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.
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 Gloucester. 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.
All 100% affordable projects, including projects funded through
low-income housing tax credits, shall comply with the Uniform Housing
Affordability Controls, N.J.A.C. 5:80-26.1 et seq. All such projects
shall be required to have an initial thirty-year affordability control
period plus a fifteen-year extended use period.
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.
Establishment of Municipal Housing Liaison position and compensation;
powers and duties.
(1)
Establishment of position of Municipal Housing Liaison Officer. There
is hereby established the position of Municipal Housing Liaison Officer
for the Township of Logan.
(2)
Subject to the approval of the Court, the Municipal Housing Liaison
Officer shall be appointed by the governing body and may be a full-
or part-time municipal employee.
(3)
The Municipal Housing Liaison Officer shall be responsible for oversight and administration of the affordable housing program for the Township of Logan, including the following responsibilities which may not be contracted out, exclusive of Subsection A(3)(f) below, which may be contracted out:
(a)
Serving as the Township of Logan's primary point of contact
for all inquiries from the state, affordable housing providers, Administrative
Agents, and interested households;
(b)
Monitoring the status of all restricted units in the Township
of Logan's Fair Share Plan;
(c)
Compiling, verifying, and submitting annual reports as required
by Court;
(d)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable;
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing;
(4)
Subject to approval by Court, the Township of Logan may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing program of the Township of Logan, except for those responsibilities which may not be contracted out pursuant to Subsection A(3) above. If the Township of Logan contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and affirmative marketing plan, the Municipal Housing Liaison Officer shall supervise the contracting Administrative Agent.
(5)
Compensation. Compensation shall be fixed by the governing body at
the time of the appointment of the Municipal Housing Liaison Officer.
(6)
Administrative powers and duties assigned to the Municipal Housing
Liaison Officer:
(a)
Affirmative marketing.
[1]
Conducting an outreach process to ensure affirmative marketing
of affordable housing units in accordance with the affirmative marketing
plan of the Township of Logan 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 Appendixes
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;
and
[6]
Employing the random selection process as provided in the affirmative
marketing plan of the Township of Logan when referring households
for certification to affordable units.
(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 appropriate
county's Register of Deeds or 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)
Resale and rental.
[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 rental upon availability
of the information to the Municipal Housing Liaison Officer; and
[2]
Instituting and maintaining an effective means of communicating
information to low- and moderate-income households regarding the availability
of restricted units for resale or rerental upon availability of the
information to the Municipal Housing Liaison Officer.
(e)
Processing requests from unit owners.
[1]
Reviewing and approving, in conjunction with the Township Attorney,
requests from owners of restricted units who wish to take out home
equity loans or refinance during the term of their ownership;
[2]
Reviewing and approving, in conjunction with the Township Attorney,
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 cost of central
air-conditioning systems; and
[3]
Processing requests and making determinations, in conjunction
with the Township Attorney, on requests by owners of restricted units
for hardship waivers.
(f)
Enforcement.
[1]
The posting annually in all rental properties when the information
becomes available to the Municipal Housing Liaison, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the Administrative Agent, where complaints
of excess rent can by made;
[2]
Creating and publishing a written operating manual, as approved
by the Court, setting forth procedures for administering such affordability
controls; and
[3]
Providing annual reports to the Court as required.
(g)
The Administrative Agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
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, 5:80-26.16 and 5:80-26.18 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 Logan 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 Logan 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 Logan: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Gloucester County and Southern Burlington County Branches of the
NAACP, the Supportive Housing Association of New Jersey, and the New
Jersey Housing Resource Center.
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 Gloucester
County Register of Deeds or Gloucester 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 Logan 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 6 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 6, comprised
of Atlantic, Cape May, Cumberland, and Gloucester 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 Logan 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 Logan, 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 Gloucester
County Branch of the NAACP, the Supportive Housing Association of
New Jersey, STEPS, Senior Citizens United Community Services, and
the New Jersey Housing Resource Center.
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 Logan 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.
The Mayor and Council of Logan Township hereby make the following
findings:
A.
In Holmdel Builders Association v. Holmdel Township, 121 N.J. 550
(1990), the New Jersey Supreme Court determined that mandatory development
fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et seq., and the State Constitution, subject to the adoption of rules
by the Council on Affordable Housing (COAH).
B.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2),
and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1
through 40:55D-8.7), COAH was authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that were under the jurisdiction of
COAH and that are now before a court of competent jurisdiction and
have a Court-approved Spending Plan may retain and spend nonresidential
development fees collected in accordance with the approved Spending
Plan.
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, §§ 8
and 32 through 38 (N.J.S.A. 52:27D-329.2), and the Statewide Nonresidential
Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-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 Township of Logan shall not spend development fees until
the Court has approved a plan for spending such fees.
The following terms, as used in this article, shall have the
following meanings:
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
The New Jersey Council on Affordable Housing.
New construction and additions, but does not include alterations,
reconstruction, renovations, and repairs as those terms are defined
under the State Uniform Construction Code promulgated pursuant to
the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A.
52:27D-119 et seq.).
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Funds paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH's rules.
The value of a property determined by the Municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
Estimates at the time of issuance of a building permit may be obtained
utilizing estimates for construction cost. Final equalized assessed
value will be determined at project completion by the Municipal Tax
Assessor.
Any development which includes both a nonresidential development
component and a residential development component, and shall include
developments for which 1) there is a common developer for both the
residential development component and the nonresidential development
component, provided that for purposes of this definition, multiple
persons and entities may be considered a common developer if there
is a contractual relationship among them obligating each entity to
develop at least a portion of the residential or nonresidential development,
or both, or otherwise to contribute resources to the development;
and 2) the residential and nonresidential developments are located
on the same lot or adjoining lots, including but not limited to lots
separated by a street, a river, or another geographical feature.
Any building or structure, or portion thereof, including but
not limited to any appurtenant improvements, which is designated to
a use group other than a residential use group according to the State
Uniform Construction Code promulgated to effectuate the State Uniform
Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 et seq.),
including any subsequent amendments or revisions thereto;
Hotels, motels, vacation timeshares, and child-care facilities;
and
The entirety of all continuing care facilities within a continuing
care retirement community which is subject to the Continuing Care
Retirement Community Regulation and Financial Disclosure Act, P.L.
1986, c. 103 (N.J.S.A. 52:27D-330 et seq.).
The fee authorized to be imposed pursuant to §§ 32
through 38 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1 through 40:55D-8.7).
Shall be liberally construed to include the construction,
maintenance, or operation of housing, including but not limited to
the provision of services to such housing and the funding of any of
the above.
A method of allocating funds collected and to be collected
pursuant to an approved municipal development fee ordinance, or pursuant
to P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.1 et seq.), for the purpose
of meeting the housing needs of low- and moderate-income individuals.
A.
Where residential development occurs within the Township of Logan
except in the Planned Development Overlay: Town Center River Zone,
the Planned Village Development Overlay Zone, or the Route 322 Redevelopment
Corridor Overlay Zone Districts, residential developers shall pay
a fee of 1.5% of the equalized assessed value for residential development,
provided no increased density is permitted.
B.
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5)
(known as a "d" variance) has been permitted, developers shall be
required to pay a development fee of 6% of the equalized assessed
value for each additional unit that may be realized. However, if the
zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the base density for the
purposes of calculating the bonus development fee shall be the highest
density permitted by right during the two-year period preceding the
filing of the variance application.
C.
The 1.5% of the equalized assessed value fee may be imposed on the
construction of new residential development and additions and alterations
to existing development. New construction fees shall be based on the
equalized assessed value of land and improvements. Fees that result
from additions and alterations shall be based on the increase in equalized
assessed value that results from the addition or alteration.
A.
Where nonresidential development occurs within the Township of Logan,
nonresidential developers shall pay a mandatory fee of 2.5% of the
equalized assessed value for nonresidential development pursuant to
P.L. 2008, c. 46.
B.
If an increase in floor area ratio is approved pursuant to N.J.S.A.
40:55D-70d(4), then the additional floor area realized (above what
is permitted by right under the existing zoning) shall incur a bonus
development fee of 6% of the equalized assessed value for nonresidential
development. However, if the zoning on a site has changed during the
two-year period preceding the filing of such a variance application,
the base floor area for the purposes of calculating the bonus development
fee shall be the highest floor area permitted by right during the
two-year period preceding the filing of the variance application.
C.
The 2.5% of the equalized assessed value fee may be imposed on the
construction of new nonresidential development and additions and alterations
to existing development. Ordinances governing the imposition of development
fees shall clearly indicate which types of development shall be subject
to the imposition of development fees. New construction fees shall
be based on the equalized assessed value of land and improvements.
Fees that result from additions and alterations shall be based on
the increase in equalized assessed value that results from the addition
or alteration.
A.
Affordable housing developments and developments where the developer
has made a payment in lieu of constructing affordable units shall
be exempt from development fees.
B.
Development fees may be imposed and collected when an existing structure
is expanded, undergoes a change to a more intense use, or is demolished
and replaced. The development fee that may be imposed and collected
shall be calculated on the increase in the equalized assessed value.
C.
Developments that have received preliminary or final site plan approval
prior to the adoption of a municipal development fee ordinance shall
be exempt from development fees unless the developer seeks substantial
change in an approval. Where a site plan approval does not apply,
a zoning and/or construction permit shall be synonymous with preliminary
or final site plan approval for this purpose.
D.
Development fees shall be imposed and collected when an existing
structure is expanded or undergoes a change to a more intense use.
The development fee shall be calculated on the increase in the equalized
assessed value of the improved structure.
E.
All nonresidential construction of buildings or structures on property
used by churches, synagogues, mosques, and other houses of worship,
and property used for educational purposes, which is tax-exempt pursuant
to N.J.S.A. 54:4-3.6, shall be exempt from the imposition of a nonresidential
development fee, provided that the property continues to maintain
its tax-exempt status under that statute for a period of at least
three years from the date of issuance of the certificate of occupancy.
In addition, the following shall be exempt from the imposition of
a nonresidential development fee:
(1)
Parking lots and parking structures, regardless of whether the parking
lot or parking structure is constructed in conjunction with a nonresidential
development, such as an office building, or whether the parking lot
is developed as an independent nonresidential development;
(2)
Any nonresidential development which is an amenity to be made available
to the public, including, but not limited to, recreational facilities,
community centers, and senior centers, which are developed in conjunction
with or funded by a nonresidential developer;
(3)
Nonresidential construction resulting from a relocation of or an
on-site improvement to a nonprofit hospital or a nursing home facility;
(4)
Projects that are located within a specifically delineated urban
transit hub, as defined pursuant to Section 2 of P.L. 2007, c. 346
(N.J.S.A. 34:1B-208).
A.
For residential development, 50% of the development fee will be collected
at the time of issuance of the building permit. The remaining portion
will be collected at the 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 building permit
and that determined at issuance of the certificate of occupancy.
B.
For nonresidential development, the development fee will be collected
prior to the issuance of a certificate of occupancy.
Imposed and collected development fees that are challenged shall
be placed in an interest-bearing escrow account by the Township of
Logan. If all or a portion of the contested fees are returned to the
developer, the accrued interest on the returned amount shall also
be returned.
A.
There is hereby created a separate, interest-bearing housing trust
fund to be established in a bank approved by the Township under authority
and regulations promulgated by the State of New Jersey for selecting
banks in which to place municipal funds for the purpose of depositing
development fees collected from residential and nonresidential developers
and proceeds from the sale of units with extinguished controls. All
development fees paid by developers pursuant to this article shall
be deposited into this account.
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 Logan;
(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 Logan's affordable
housing program.
C.
In the event of a failure by the Township of Logan 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 Twp. 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 Logan, or, if not practicable, then within
the county or the housing region.
A.
Funds deposited in the housing trust fund may be used for any activity
approved by the Court to address the municipal fair share. 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.
At least 30% of all development fees collected and interest earned
shall be used to provide affordability assistance to low- and moderate-income
households, at least half of which shall be available to low- and
moderate-income households in affordable units included in the municipal
Fair Share Plan. One-third of the affordability assistance portion
of development fees collected shall be used to provide affordability
assistance to very-low-income households.
(1)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, and rental assistance.
(2)
Affordability assistance to very-low-income households may include
offering a subsidy to developers of inclusionary or 100% affordable
developments or buying down the cost of low- or moderate-income units
in the municipal Fair Share Plan.
(3)
Payments in lieu of constructing affordable units on site and funds
from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
C.
The Township may contract with a private or public entity to administer
any part of its Housing Element and Fair Share Plan, including the
requirement for affordability assistance.
D.
No more than 20% of all development fee revenue shall be expended
on administration. This includes, but is not limited to, salaries
and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, a Housing Element
and Fair Share Plan, and/or an affirmative marketing program. In the
case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Development fee
administrative costs are calculated and may be expended at the end
of each year or upon receipt of the fees.
The Township of Logan shall complete and return to the Court
all monitoring forms included in the annual monitoring report related
to the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
and funds from the sale of units with extinguished controls, and the
expenditure of revenues and implementation of the plan approved by
the Court.
A.
The ability for the Township of Logan 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 Logan
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 Logan 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 Logan 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 Logan retroactively impose a development fee on such
a development. The Township of Logan also shall not expend any of
its collected development fees after the expiration of its judgment
of compliance.
