[Added 12-8-2021 by Ord. No. 2021-12[1]]
This article of Chapter 110 is designed to implement the Township's adopted Housing Element and Fair Share Plan for low- and moderate-income housing units in the Township consistent with the New Jersey Fair Housing Act ("Act"), N.J.S.A. 52:27D-301 et seq., extant regulations of the New Jersey Council on Affordable Housing ("COAH"), N.J.A.C. 5:93[1] et seq., the Uniform Housing Affordability Controls ("UHAC"),
N.J.A.C. 5:80-26.1 et seq., except where modified by the requirements
for very-low-income housing as established in N.J.S.A. 52:27D-329.1,
and judicial decisions. This article is designed to ensure that affordable
housing created under the Fair Housing Act is occupied by low- and
moderate-income households for the appropriate period of time. This
article provides rules for the establishment and administration of
affordability controls on each restricted dwelling unit for which
the Township receives credit.
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired 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 Oldmans pursuant to the Township's most recently adopted Housing Element and Fair Share Plan. All developers providing affordable housing units as part of any new development in the Township shall provide those affordable housing units in accordance with this article. All development that falls within the time period of the present round of affordable housing obligation shall construct affordable units or pay a development fee in accordance with § 110-66.
B.
Moreover, this provision of this article shall apply to all developments
that contain low- and moderate-income housing units, including any
currently unanticipated future developments that will provide very-low-,
low- and moderate-income housing units. All restricted units, including
those funded with federal low-income housing tax credits or other
subsidy programs, shall include the required bedroom distribution
and income distribution, shall be subject to affordability controls,
and shall be affirmatively marketed in accordance with UHAC, with
the exception that instead of 10% of all rental affordable units being
affordable to households earning 35% or less of the regional median
household income by household size, 13% of all rental affordable units
shall be affordable to households earning 30% or less of the regional
median household income by household size, and all other applicable
law.
C.
All new construction units shall be adaptable in conformance with
N.J.S.A. 52:27D-311a and 52:27D-311b and all other applicable law.
A.
The Township Committee shall appoint a Township Administrative Agent
to monitor sales and resales of affordable housing units pursuant
to N.J.A.C. 5:80-26.14. The Administrative Agent of the municipality
may also be the Municipal Housing Liaison, but is not required to
be.
B.
The Township Administrative Agent shall monitor the designated Administrative
Agent of the developer in the initial sales and rental transactions
for low- and moderate-income dwellings in accordance with N.J.A.C.
5:80-26.14, as it may be amended or superseded. The developer's administrative
agent shall have all of responsibilities as put forth in this rule.
After the initial sales and rental transactions, the Township Administrative
Agent shall monitor the activities of the developer's or owner's Administrative
Agent for any resales or re-rentals. If the person is the Township's
Administrative Agent, then he or she shall assume all of the duties
and responsibilities set forth in N.J.A.C. 5:80-26.14 following the
initial renting, sales and occupancy of low- and moderate-income dwellings.
The affordability controls set forth in this article shall be administered
and enforced by the Administrative Agent regardless of association.
The primary responsibility of the Administrative Agent shall be to
ensure that the restricted units are sold or rented, as applicable,
only to low- and moderate-income households in accordance with the
Fair Housing Act.
C.
The Administrative Agent, whether the Township's representative,
developer's agent, or a delegated agent, shall have the responsibility
to income-qualify low- and moderate-income households, to place income-eligible
households in low- and moderate-income units upon initial occupancy,
to provide for the initial occupancy of low- and moderate-income units
with income-qualified households, to continue to qualify households
for reoccupancy of units as they become vacant during the period of
affordability controls, to assist with advertising and outreach to
low- and moderate-income households, and to enforce the terms of the
deed restriction and mortgage loan. All Administrative Agents shall
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.
D.
The Municipal Housing Liaison shall supervise the work of the Township
and any contracted Administrative Agent(s) and shall coordinate the
contracted agents' activities with the Township Administrative Agent
to ensure the accurate tracking of the progress of the occupancy of
affordable housing in the municipality, answer inquiries regarding
affordable housing from the public or direct same to the appropriate
official or agency, and comply with the affordable housing monitoring
and reporting requirements of the state.
E.
The Township Committee may establish a reasonable fee to program
participants for the administration of the affordability controls
program. 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.
F.
In order to ensure an orderly transfer of control responsibility
from a municipality to an Administrative Agent, from one Administrative
Agent to another Administrative Agent, or other transfer, the requirements
as set forth in N.J.A.C. 5:80-26.17 shall apply as are necessary before
or during the transition. The Administrative Agent's enforcement responsibility
for implementing such practices and procedures shall not be delegated
or otherwise transferred to any other party, except to a successor
Administrative Agent.
G.
By accepting state funds for affordable housing purposes, or by submitting
to the jurisdiction of the Court, the Township of Oldmans shall be
deemed to have delegated to the Administrative Agent the day-to-day
responsibility for implementing practices and procedures designated
to ensure effective compliance with the controls set forth in this
article. The governing body of the municipality, however, shall retain
the ultimate responsibility for ensuring effective compliance with
the requirements as set forth in UHAC and any settlement agreements
pertaining to affordable housing matters.
H.
The Township Administrative Agent shall keep records of the affirmative
marketing activities undertaken in accordance with the Affirmative
Marketing Plan established by any developer's Administrative Agent.
The records shall include, but not be limited to, the following:
(1)
Electronic reporting of affordable housing activity; any required
paper forms.
(2)
Copies of any press releases, brochures, flyers, print advertisements
and application forms used in the affirmative marketing program.
(3)
The income and demographic characteristics of each household applying
for and occupying income-restricted housing.
(4)
An evaluation of any necessary adjustments required to the affirmative
marketing program as communicated by the Administrative Agent.
I.
An operating manual for each affordable housing program shall be
provided by the Township Administrative Agent or developer's Administrative
Agent and approved by the Municipal Housing Liaison prior to being
placed into use. Such operating manual shall be a public record.
J.
The Administrative Agent(s) shall perform the duties and responsibilities
of an administrative agent as are 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.
K.
Records retention.
L.
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.
(2)
Instituting and maintaining an effective means of communicating information
to very-low-, low-, or moderate-income households regarding the availability
of restricted units for resale or re-rental.
M.
Processing requests from unit owners.
(1)
Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to refinance or take out home equity
loans during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this section;
(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 Township of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units for
hardship waivers.
N.
Enforcement.
(1)
Securing annually from the municipality a list of all affordable
ownership 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
Township'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.
A.
Purpose. The purpose of this section is to establish administrative
procedures to ensure a wide dissemination of knowledge of affordable
housing units as they become available to the very-low-, low- and
moderate-income population, and that the selection of tenants or homeowners,
as the case may be, meets the requirements of UHAC.
B.
An 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 that are being marketed
by a developer or sponsor of affordable housing. An Affirmative Marketing
Plan is also intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
C.
Affirmative marketing requirements. Within the overall framework
of the municipality's affirmative marketing program, all affordable
housing units in Oldmans Township shall be marketed in accordance
with the provisions in this section unless otherwise provided for
in N.J.A.C. 5:80-26-1. An Affirmative Marketing Plan shall be created
for each development that contains or will contain low- and moderate-income
units, including those that may be constructed in future developments
not yet anticipated. This Affirmative Marketing Plan shall also apply
to any rehabilitated units that are vacated and re-rented during the
applicable period of controls for rehabilitated rental units.
D.
Plan preparation. The Township Administrative Agent or other Administrative
Agent shall prepare an Affirmative Marketing Plan for each affordable
housing program, as applicable, comporting with N.J.A.C. 5:80-26.15.
The Township Administrative Agent shall review and approve any other
Administrative Agent's plan for use in the municipality. Regardless
of the drafting agent, the Affirmative Marketing Plan is intended
to be used by developers of affordable housing restricted to low-
and moderate-income households located within the municipality. The
Administrative Agent responsible for specific affordable housing programs
or developments shall ensure that the affirmative marketing of all
affordable units is consistent with these provisions.
E.
Affirmative marketing implementation. The Affirmative Marketing Plan
includes regulations for qualification of income eligibility, price
and rent restrictions, bedroom distribution, affordability control
periods, and unit marketing in accordance to N.J.A.C. 5:80-26. All
newly created affordable units will comply with the thirty-year affordability
control required by UHAC, N.J.A.C. 5:80-26.5 and 5:80-26.11, except
for any accessory apartments created, which shall be for 10 years.
This plan will be adhered to by all private, nonprofit or municipal
developers of affordable housing units and will cover the period of
deed restriction or affordability controls on each affordable unit.
The Affirmative Marketing Plan for each affordable housing development
shall meet the following minimum requirements:
(1)
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 6, comprising
Atlantic, Cape May, Cumberland and Salem counties.
(2)
Although the Township has the ultimate responsibility for implementing
all aspects of Oldmans affordable housing program, the Administrative
Agent shall assure that the affirmative marketing of all affordable
units is consistent with the Affirmative Marketing Plan for the municipality.
(3)
The Administrative Agent shall provide a list of counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit problems, mortgage qualification, rental lease requirements,
and landlord/tenant law.
(4)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
Advertising and outreach shall take place during the first week of
the marketing program and each month thereafter until all of the affordable
units have been leased or sold.
(5)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township of Oldmans.
(6)
The Affirmative Marketing Plan for each affordable housing development
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.
(7)
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 Oldmans Municipal Building; and the developer's rental or sales
office. Applications shall be mailed or emailed to prospective applicants
upon request, and the application form(s) shall be available online
on the municipal website.
(8)
The Township or developer's Administrative Agent shall list all affordable
housing units due to become available in a new development, or being
remarketed, on the New Jersey Housing Resource Center website in accordance
with the requirements of recent legislation.
(9)
The Township Administrative Agent shall develop, maintain and update
a list of community contact person(s) and/or organizations(s) in the
Region 6 Housing Area for the use of the Township and other Administrative
Agents. In addition, the list shall also include Fair Share Housing
Center, the New Jersey State Conference of the NAACP, the Latino Action
Network, Gloucester County NAACP, Salem County NAACP, Senior Citizens
United Community Services, and the Supportive Housing Association,
which entities shall receive specific notice of all available affordable
housing units along with copies of application forms. This list shall
be updated periodically. The list shall contain organizations that
will aid in the affirmative marketing program with particular emphasis
on contacts with outreach to groups and individuals that are least
likely to apply for affordable housing within the region. A representative
sample of the organizations on the list not otherwise requiring specific
notice herein shall be contacted as part of the affirmative marketing
effort as approved by the Township Administrative Agent. Any third
party undertaking affirmative marketing within the Township of Oldmans
shall comply with these provisions.
(10)
The Affirmative Marketing Plan of a developer or operator of
restricted units shall be approved by the Township Administrative
Agent prior to implementation.
A.
The Municipal Housing Liaison shall complete and return to COAH,
its successor, or court of competent jurisdiction all forms necessary
for monitoring requirements related to dwelling units in affordable
housing projects and the collection of development fees from residential
and nonresidential developers, payments in lieu of constructing affordable
units on-site, funds from the sale of units with extinguished controls,
barrier-free escrow funds, rental income, repayments from affordable
housing program loans, and any other funds collected in connection
with the Township of Oldmans approved housing program, as well as
to the expenditure of revenues and implementation of the approved
plan.
B.
The Township will provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs
(NJDCA), Council on Affordable Housing (COAH), or Local Government
Services (NJLGS), 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 NJDCA, COAH, or 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. The schedule for the reporting of this
information shall be as set forth in the most recent settlement agreement
between the Township of Oldmans and FSHC.
C.
As required by N.J.S.A. 52:27D-329.1, on the third anniversary of
Court approval of the Township's Housing Element and Fair Share Plan,
the Township will post on its municipal website a status report as
to its satisfaction of its very-low-income requirements, including
its family very-low-income requirements, and any other entity as directed
by the Court. Such posting shall invite any interested party to submit
comments to the municipality on the issue of whether the municipality
has complied with its very-low-income and family very-low-income housing
obligations.
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
A.
The following requirements shall apply to all new or planned developments
that contain low- and moderate-income housing units:
(1)
Each housing unit created through the conversion of a nonresidential
structure shall be considered a new housing unit and shall be subject
to the affordability controls for a new housing unit.
(2)
Final site plan or subdivision approval for any inclusionary development
shall be contingent upon the affordable housing development meeting
the following phasing schedule for low- and moderate-income units,
whether developed in one stage or more stages. The initial issuance
of certificates of occupancy for market units shall be linked to the
issuance of certificates of occupancy for affordable units. Prior
to the issuance of the certificates of occupancy for market units,
certificates of occupancy for affordable units shall be required in
the following minimum ratios:
|
Required Percentage of Affordable Units to Market Units
| |
|---|---|
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|
25
|
0
|
|
25+1
|
10
|
|
50
|
50
|
|
75
|
75
|
|
90
|
100
|
(3)
Each unit of affordable housing shall require a certificate of occupancy
or continuing certificate of occupancy, which shall become void upon
a change of owner or tenant.
(5)
The facade of an affordable housing dwelling shall be indistinguishable
from those of market units in terms of the use of exterior materials,
windows, doors, reveal, roof pitch, color, or other material. Affordable
housing units shall be fully integrated with market-rate housing to
the greatest extent feasible and shall have access to open space and
site amenities comparable to that of market-rate units, unless otherwise
approved by the Municipal Housing Liaison.
(6)
For inclusionary developments with a single housing type, the affordable
housing units shall have the same tenure as the market housing units.
(7)
Tenant-paid utilities that are included in the utility allowance
shall be so stated in the lease and shall be consistent with the utility
allowance approved by the New Jersey Department of Community Affairs
for its Section 8 program. Affordable units shall utilize the same
type of heating source as market units within the affordable development.
B.
For inclusionary set-asides in which the percentage (15% or 20%,
as the case may be) of the total number of residential units does
not result in a full integer, the following may occur:
(1)
The developer may in all cases round the set-aside upward and construct
an additional affordable unit; or if the set-aside includes a fractional
unit of 0.2 or less, the developer may round the set-aside downward
and construct the lower whole number of affordable units, but must
also make a payment in lieu of constructing the fractional additional
unit ("fractional payment-in-lieu"). The fractional payment-in-lieu
amount shall be calculated as the fractional unit multiplied by the
payment-in-lieu amount of $250,000, increased annually by the Urban
Consumer Price Index for the metropolitan area.
For example, if seven total units are developed at an inclusionary
site, a 20% set-aside would require 1.4 affordable units. The developer
must round up the fraction and construct a total of two affordable
units. If six total units are developed, a 20% set-aside would require
1.2 affordable units. In that instance, the developer may either round
up and construct a second affordable unit, or make a fractional payment
in lieu of 0.2 x $250,000, or $50,000, into the Township's Affordable
Housing Trust Fund.
(2)
The payment shall be imposed as a condition of development approval
by the Planning Board.
(3)
During the development approval process, a developer may demonstrate
to the governing body that the actual construction cost of an affordable
unit less estimated capitalized revenue at the development in question
is lower than the imposed payment-in-lieu. At its discretion, the
governing body may impose a lower payment-in-lieu amount equal or
proximate to the amount estimated by the developer.
C.
Accessibility requirements.
(1)
The first floor of all new 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
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;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(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;
(e)
If not all of the foregoing requirements in Subsection C(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 C(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 the Township 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 Oldmans 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 C(2)(f)[2] herein shall be used by the Township 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 to the Construction
Official of the Township of Oldmans a design plan and cost estimate
for the conversion from adaptable to accessible entrances.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
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 of Oldmans Affordable Housing Trust Fund in
care of the Municipal Housing Finance Officer, who shall ensure that
the funds are deposited into the Affordable Housing Trust Fund and
earmarked appropriately.
(3)
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.
Income and bedroom distributions.
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that, where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3)
Within rental developments, of the total number of affordable rental
units, at least 13% shall be affordable to very-low-income households.
The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(4)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three- bedroom
units at the discretion of the developer.
(5)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
E.
Occupancy standards.
(1)
In determining the initial rents and initial sales prices for compliance
with the affordable average requirements for restricted units other
than age-restricted dwellings, the following standards shall be used:
(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.
(e)
A four-bedroom unit shall be affordable to a six-person household.
(2)
For age-restricted affordable dwellings, the following standards
shall be used:
(3)
In referring certified households to specific restricted units, to
the extent feasible and without causing an undue delay in occupying
the unit, the Administrative Agent shall strive to:
A.
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC and the calculation procedures as approved by the Court and detailed
below:
(1)
Regional income limits shall be established for the region in which
the Township is located (i.e., Region 6) 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. The income limits calculated each year shall be the result of
applying the percentages set forth above to HUD's determination of
median income for the relevant fiscal year, 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.
In no event shall the income limits be less than those for the previous
year.
(2)
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 A(1) 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.
B.
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of regional median income by household size, and the average rent
for restricted low- and moderate-income units shall be affordable
to households earning no more than 52% of regional median income by
household size.
C.
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 households
earning no more than 30% of regional median income by household size.
These very-low-income units shall be part of the low-income requirement.
D.
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of regional median income by household size, 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 prices for each bedroom type, and low-income ownership units
must be available for at least two different prices for each bedroom
type.
E.
For any affordable housing unit that is part of a condominium association
and/or homeowners' association, the master deed shall reflect that
the association fee assessed for each affordable housing unit shall
be established at 100% of the market-rate fee.
F.
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate-size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
G.
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income, including
an allowance for tenant-paid utilities, of the appropriate household
size 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.
H.
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.
I.
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. 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.
Affordability controls.
(1)
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the controls on
affordability for a period of at least 30 years, until the Township
takes action to release the controls on affordability. Prior to such
action, a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
(2)
Rehabilitated owner-occupied housing units that are improved to code
standards shall be subject to affordability controls for a period
of 10 years.
(3)
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(4)
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.
(5)
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Administrative Agent a recapture
note obliging 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 section, 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.
(6)
The affordability controls set forth in this section shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
(7)
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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
B.
Price restrictions.
(1)
Price restrictions for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.1, as may be amended and supplemented, including:
(a)
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
(b)
The Administrative Agent shall approve all resale prices, in
writing and in advance of the resale, to assure compliance with the
foregoing standards.
(c)
The master deeds of inclusionary developments shall provide
no distinction between the condominium or homeowner association fees
and special assessments paid by low- and moderate-income purchasers
and those paid by market-price purchasers.
(d)
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
C.
Buyer income eligibility.
(1)
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of regional
median income by household size, and moderate-income ownership units
shall be reserved for households with a gross household income less
than 80% of regional median income by household size.
(2)
Notwithstanding the foregoing, the Administrative Agent may, upon
approval by the Township Committee, and subject to the Court's approval,
permit a moderate-income purchaser to buy a low-income unit if and
only if the Administrative Agent can demonstrate that there is an
insufficient number of eligible low-income purchasers in the housing
region to permit prompt occupancy of the unit and all other reasonable
efforts to attract a low-income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
(3)
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence and
shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
(4)
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
D.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
issue such determination prior to the owner incurring such indebtedness.
(2)
With the exception of original purchase money mortgages, neither
an owner nor a lender shall at any time during the control period
cause or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the Administrative Agent in accordance
with N.J.A.C. 5:80-26.6(b).
E.
Capital improvements to ownership units.
(1)
The owner of a restricted ownership unit 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.
(2)
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale, provided the price of the air-conditioning
equipment, 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.
(1)
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this section for a period of at least 30 years, until the Township
of Oldmans takes action to release the controls on affordability.
Prior to such action, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
(2)
Restricted rental units created as part of developments receiving
9% low-income housing tax credits must comply with a control period
of not less than a thirty-year compliance period plus a fifteen-year
extended use period.
(3)
Rehabilitated renter-occupied housing units that are improved to
code standards shall be subject to affordability controls for a period
of 10 years.
(4)
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 Salem. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
(5)
A restricted rental unit shall remain subject to the affordability
controls of this section despite the occurrence of any of the following
events:
B.
Rent restrictions; leases.
(1)
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the Administrative Agent.
(2)
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
(3)
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the Administrative Agent, to be applied to
the costs of administering the controls applicable to the unit as
set forth in this article.
(4)
No rent control or other pricing restriction shall be applicable
to either the market-rate units or the affordable units in any development
in which at least 20% of the total number of dwelling units are restricted
rental units in compliance with this article.
C.
Tenant income eligibility.
(1)
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of the regional
median income by household size.
(b)
Low-income rental units shall be reserved for households with
a gross household income greater than 30% but less than or equal to
50% of the regional median income by household size.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income greater than 50% but less than 80% of
the regional median income by household size.
(2)
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income or moderate-income household, as applicable to the unit,
and the rent proposed for the unit does not exceed 35% (40% for age-restricted
units) of the household's eligible monthly income as determined pursuant
to N.J.A.C. 5:80-26.16, as may be amended and supplemented; provided,
however, that this limit may be exceeded if one or more of the following
circumstances exists:
(a)
The household currently pays more than 35% (40% for households
eligible for age-restricted units) of its gross household income for
rent, and the proposed rent will reduce its housing costs;
(b)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
The household documents reliable anticipated third-party assistance
from an outside source such as a family member in a form acceptable
to the Administrative Agent and the owner of the unit.
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: The provisions of N.J.A.C. 5:93 expired 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.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the 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 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
found 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 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 his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Oldmans Affordable Housing Trust
Fund of the gross amount of rent illegally collected.
(c)
In the case of an owner who has rented his or her 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, which would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any 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)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
or 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 the right
to possession terminated as well as the 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- or 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 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 they 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- or 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- or 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 that would have been realized from an actual
sale as previously described.
(e)
Failure of the low- or 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
that may be referred to the owner by the municipality, with such offer
to purchase being equal to the maximum resale price of the low- or
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.
(3)
Appeals from all decisions of an Administrative Agent designated
pursuant to this article shall be filed in writing with the Township.
