Municipality of Princeton, NJ Affordable Housing Regulations

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%

[Added 6-29-2020 by Ord. No. 2020-15; amended 12-21-2021 by Ord. No. 2021-34]

Low/Moderate Split and Bedroom Distribution of Affordable Housing Units:

All affordable units created shall fully comply with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq. ("UHAC"), including but not limited to the required bedroom and income distribution, with the sole exception that 13% of the affordable units shall be required to be restricted for very-low-income households earning 30% or less of the median income pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301, et seq. ("FHA").

(2)

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.

(3)

At least 50% of the affordable units in each bedroom category (1BR, 2BR and 3 BR) within a development shall be affordable to low-income households, inclusive of at least 13% of units affordable to very-low-income households.

(4)

In each development that includes affordable housing, 13% of the restricted units overall shall be very-low-income units, and these very-low-income units shall be counted toward the 50% low-income requirement. The very-low-income units shall be provided as follows: in developments that produce one very-low-income unit, the very-low-income unit shall be a two- or three-bedroom unit; in developments that produce two very-low-income units, no more than one of the very-low-income units may be a one-bedroom unit; and in developments that produce three or more very-low-income units, an equal number of very-low-income units shall be provided within each bedroom distribution, and any additional very-low-income units shall be two- or three-bedroom units.

(5)

Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:

The combined number of efficiency and one-bedroom units shall be no greater than 20% of the total very-low-, low- and moderate-income units;

At least 30% of all very-low-, low- and moderate-income units shall be two-bedroom units;

At least 20% of all very-low-, low- and moderate-income units shall be three-bedroom units; and

The remaining units may be allocated among two- and three-bedroom units at the discretion of the developer.

(6)

Affordable developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted very-low-, 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. 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 New Jersey Uniform Construction Code and the accessibility requirements set forth therein, including ANNSI 117.1-2009.

(c)

Design.

(1)

In inclusionary developments, to the greatest extent possible, very-low-, low- and moderate-income units shall be integrated with the market units, and the affordable units shall not be concentrated in separate building(s) or in separate area(s) from the market-rate units so they are not situated so as to be in less desirable locations than the other units in the development. In buildings with multi-family dwelling units, this shall mean that the affordable units shall be generally distributed within each building with market-rate units.

(2)

In inclusionary developments, very-low-, low- and moderate-income units shall have full and equal access to all of the amenities, common areas, recreation areas and facilities, public facilities, public transportation, and shopping facilities as do the residents of the market units.

(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 the calculation procedures as approved by the Court and detailed herein, as follows:

Regional income units shall be established for the region that Princeton is located within (i.e., Region 4) 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 Princeton'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.

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 Princeton annually by taking the percentage increase of the income limits calculated pursuant to paragraph 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.

(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 studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one-and-one-half-person household;

A two-bedroom unit shall be affordable to a three-person household;

A three-bedroom unit shall be affordable to a four-and-one-half-person household; and

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:

A studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one-and-one-half-person household; and

A two-bedroom unit shall be affordable to a two-person household or to two one-person households.

(7)

The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying cost of the unit, including principal and interest (based on a mortgage loan equal to 95% of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees do not exceed 28% of the eligible monthly income of the appropriate size household as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(8)

The initial rent for a restricted rental unit shall be calculated so as not to exceed 30% of the eligible monthly income of the appropriate size household, including an allowance for tenant paid utilities, as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(9)

The price of owner-occupied low- and moderate-income units may increase annually based on the percentage increase in the regional median income limit for each housing region determined pursuant to the process outlined in paragraph a above. 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.