[Ord. No. 2019-01; Ord. No. 2020-03]
A. The purpose of this article is to implement the Uniform Housing Affordability
Controls ("UHAC", N.J.A.C. 5:80-26.1 et seq., as they may be amended
or superseded), the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301,
et seq.), extant rules of the NJ Council on Affordable Housing, and
the Housing Element and Fair Share Plan of Hightstown Borough. 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. The words, phrases, and terms
herein shall be interpreted to have the same meanings and usages as
in the Fair Housing Act and related regulations. It is the further
purpose of this Article to regulate the development and management
of low- and moderate-income housing units constructed in compliance
with these regulations.
B. All units, including those funded with 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% of 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 -311b and all other applicable law.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. Any residential development approved by the Planning Board of the
Borough of Hightstown, including those developments consisting in
whole or in part of beds counted as a residential dwelling, shall
set aside dwelling units for persons of low- and moderate-income as
defined in this Article, except for development within a redevelopment
district. Affordable housing within a redevelopment district shall
be as established in a redevelopment agreement between the Borough
and the redeveloper. Unless otherwise stated or as may be required
within specific zoning districts, the minimum set aside shall be 15%
of the total number of units if the affordable units will be for rent
and 20% of the total number of units if the affordable units will
be for sale. In assisted living residence developments, the set-aside
shall be a minimum of 10% of the total number of units. At least half
of all affordable units shall be affordable to low- or very-low-income
households. Except when part of a larger development of a tract zoned
or otherwise permitted to be developed at a residential density of
six units per acre or more, developments of single-family detached
and/or duplex or two-family dwellings shall be exempt from the inclusionary
development requirements of this article, but shall pay an affordable
housing development fee. Properties shall not be permitted to be subdivided
to avoid compliance with the inclusionary development requirements
of this article.
B. All developers with sites identified for affordable housing pursuant
to the most recent Housing Element and Fair Share Plan adopted by
the Planning Board and Borough Council of Hightstown, according to
their respective duties, shall provide affordable housing units in
accordance with the plan. All development, whether residential, commercial,
or industrial shall construct units or pay a development fee in accordance
with this Article, except as otherwise exempted.
C. This requirement does not give any developer the right to any such
rezoning, variance or other relief, or establish any obligation on
the part of the Borough of Hightstown to grant such rezoning, variance
or other relief.
D. This Borough-wide mandatory set-aside requirement does not supersede
the effects or requirements of any inclusionary overlay zoning districts
for any inclusionary multi-family residential development that occurs
within the boundaries of those districts.
E. In the event that the inclusionary set-aside percentage (15% or 20%,
as the case may be) of the total number of residential units does
not result in a full integer, the developer may choose one of two
options of addressing the fractional unit:
(1)
The developer shall round the set-aside upward to construct
a whole additional affordable unit; or
(2)
If the set-aside includes a fractional unit less than 0.5, the
developer may round the set-aside downward and construct the lesser
whole number of affordable units, but must also make a payment in
lieu of constructing the fractional additional unit ("fractional payment
in lieu").
(3)
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 construction Consumer Price Index.
(4)
For example, if seven total units are developed at an inclusionary
site, a 20% set-aside would require 1.4 affordable units. Per the
requirements above:
(a)
The developer may round up the 0.4 unit to one whole affordable
unit and construct a total of two affordable units, in accordance
with this article; or
(b)
The developer may round the set-aside downward, construct only
one affordable unit and pay into the Borough's affordable housing
trust fund a fractional in lieu payment equal to the dollar amount
established hereinabove multiplied by 0.4 units.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. The Borough Council shall yearly appoint a Borough Administrative
Agent to monitor sales and resales of affordable housing units, and
the leasing of units to tenants. The Borough Administrative Agent
may be the Municipal Housing Liaison, but is not required to be the
same person.
B. The Borough 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 Borough Administrative
Agent, the activities of the Administrative Agent for any re-sales
or re-rentals. If the Borough Administrative Agent is the Administrative
Agent for the municipality, 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 chapter 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 Borough Council may establish a reasonable fee to program participants
for the administration of the affordability controls program.
D. The Borough Council shall approve the credentials of any person who
is an Administrative Agent by resolution prior to such person engaging
in such work in the Borough of Hightstown.
E. The Administrative Agent, whether the Borough Administrative Agent,
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 re-occupancy 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. The Administrative Agent 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.
F. The Borough Administrative Agent shall coordinate his or her activities
with any outside Administrative Agent to ensure the accurate tracking
of the progress 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.
G. 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 and as approved by the Borough Council.
H. By accepting state funds for affordable housing purposes, or by submitting
to the jurisdiction of the NJ Council on Affordable Housing or its
successor agency, the Borough of Hightstown 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.
I. The Borough Administrative Agent shall complete and return to the
NJ Council on Affordable Housing (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 non-residential 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 Borough of Hightstown's
approved housing program, as well as to the expenditure of revenues
and implementation of the approved plan.
J. The Borough 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.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. The developer of low- and moderate-income housing units shall submit
to the Borough Administrative Agent a description of the means to
be used to insure that the required low- and moderate-income units
are sold or rented only to low- and moderate-income households for
a period of not less than 30 years, that such units meet bedroom distribution
and phasing requirements, and comports with the requirements of this
Article pertaining to the provisions, leasing, selling and transferring
units among eligible low- and moderate-income households.
B. The Affordable Housing Plan shall indicate how the developer will comply with the procedures of this Article for selecting occupants of low- and moderate-income housing and the required affirmative marketing requirements. The requirements for affirmative marketing are found in §
28-17-16. Whenever a developer proposes a third party operator or manager of affordable housing units, the Borough Council shall specifically approve such operator and manager. The Borough Council may delegate this approval to the Borough Administrative Agent.
C. The following information shall promptly be provided to the Borough
Administrative Agent by the developer or sponsor of any project containing
any affordable units' subject to the requirements of this Article,
upon the later of either final municipal land use approval or issuance
of a grant contract by a governmental authority:
(1)
The total number of units in the project, and number of restricted
units, broken down by bedroom size, identifying which are low- and
which are moderate-income dwellings, and including street addresses
of restricted dwellings;
(2)
Floor plans of all affordable dwellings, including complete
and accurate identification of uses and dimensions of all rooms;
(3)
A project map identifying the locations of low- and moderate-income
and market dwellings;
(4)
A list of project principals or partners, together with a list
of all other affordable projects in which they have been involved
over the previous five years;
(5)
Projected construction schedule;
(6)
Proposed pricing for all units, including any purchaser options
and add-on items;
(7)
A list of all public funding sources and copies of grant or
loan agreements for those sources;
(8)
Condominium fees or homeowner association and any other maintenance
or other fees;
(9)
Estimated real property taxes for sale units;
(10)
Sewer, trash disposal and any other utility assessments;
(11)
Flood insurance requirement, if applicable;
(12)
A description of all HVAC systems;
(13)
Location of any common areas and elevators;
(14)
Proposed form of lease for any rental units;
(15)
The name of the person who will be responsible for official
contact with the Borough Administrative Agent for the duration of
the project;
(16)
The name and qualifications of the developer's administrative
agent, if applicable; and
(17)
The State-approved Planned Real Estate Development public offering
statement and/or master deed where available or applicable.
D. The developer shall submit the marketing plan to the Borough Administrative
Agent at least 45 days prior to the advertising of the availability
of the units. The Borough Administrative Agent will approve or modify
the plan within 30 working days of receipt of the plan or within such
time as additionally granted by the developer.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. The incomes of low- and moderate-income households occupying affordable
housing shall not exceed the income limits as of January 1 of the
current year.
B. Median Income Determination. Income limits for all units for which
income limits are not already established through a federal program
exempted from the Uniform Housing Affordability Controls pursuant
to N.J.A.C. 5:80-26.1 shall be updated by the Borough annually following
the publication of determinations of median income by the U.S. Department
of Housing and Urban Development (HUD) and calculation by the Affordable
Housing Professionals of New Jersey in the absence of such calculation
by COAH.
C. Affordable Housing Purchase or Rent. Very-low-income housing units
shall be reserved for households with a gross household income less
than or equal to 30% of the median regional income. Very-low-income
households shall be considered a subset of low-income units. Of the
number of very-low-income households, at least 50% shall be for family
households. Low-income housing units shall be reserved for households
with a gross household income less than or equal to 50% of the median
regional income. Moderate-income units shall be reserved for households
with a gross household income more than 50% but equal to or less than
80% of the median income.
D. Assisted Living Facilities. Income determination and eligibility
for assisted living facilities shall also comply with the New Jersey
Housing and Mortgage Finance Agency's Assisted Living Underwriting
Guidelines and Financing Policy, dated May 28, 1996, as it may be
amended or superseded. The monthly fee for rent, meals, and basic
services for the affordable units in the assisted living facility
shall not exceed 80% of household income. For the purposes of this
article, 62.5% of the fee shall be assumed to be for meals and basic
services and 37.5% of the fee for rent.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. Any Administrative Agent shall secure the information from applicant
households necessary and appropriate to determine that restricted
dwellings are occupied by properly sized households with appropriate
very-low-, low- or moderate-income levels. No household may be referred
to a restricted dwelling, or may receive a commitment with respect
to a restricted dwelling, unless that household has received a signed
and dated certification, as set forth in this article, and has executed
the certificate in the form provided.
B. Any Administrative Agent shall use a random selection process to
select occupants of very-low-, low- and moderate-income housing.
C. Any Administrative Agent shall prepare a standard form of certification
and shall sign and date one for each household when certified. This
certification shall be known as a Certificate of Eligibility and shall
be a prerequisite for the purchase or rental of an income-restricted
dwelling. An initial certification shall be valid for no more than
180 days unless a valid contract for sale or lease has been executed
within that time period. In this event, certifications shall be valid
until such time as the contract for sale or lease is ruled invalid
and no occupancy has occurred. Certifications may be renewed in writing
at the request of a certified household for an additional period of
180 days at the discretion of the Borough Administrative Agent or
Administrative Agent.
D. When reviewing an applicant household's income to determine eligibility,
any Administrative Agent shall compare the applicant household's total
gross annual income to the regional very-low-, low- and moderate-income
limits then in effect, as approved by the court of competent jurisdiction.
For the purposes of this subchapter, income includes, but is not limited
to, wages, salaries, tips, commissions, alimony, regularly scheduled
overtime, pensions, social security, unemployment compensation, Temporary
Assistance for Needy Families (TANF), verified regular child support,
disability, net income from business or real estate, and income from
assets such as savings, certificates of deposit, money market accounts,
mutual funds, stocks, bonds and imputed income from non-income producing
assets, such as equity in real estate.
E. Except as otherwise specifically stated in this subchapter, the sources
of income considered by the Borough Administrative Agent or Administrative
Agent shall be the types of regular income reported to the Internal
Revenue Service and which is eligible to be used for mortgage loan
approval. Household annual gross income shall be calculated by projecting
current gross income over a twelve-month period.
F. Assets not earning a verifiable income shall have an annual imputed
interest income using a current average annual savings interest rate.
Assets not earning income include, but are not limited to, present
real estate equity. Applicants owning real estate shall produce documentation
of a market value appraisal and outstanding mortgage debt. The difference
shall be treated as the monetary value of the asset and the imputed
interest added to income. If the applicant household owns a primary
residence with no mortgage on the property valued at or above the
regional asset limit, a Certificate of Eligibility shall be denied
by the Borough Administrative Agent or Administrative Agent, unless
the applicant's existing monthly housing costs (including principal,
interest, taxes, homeowner and private mortgage insurance, and condominium
and homeowner association fees as applicable) exceed 33% of the household's
eligible monthly income.
G. Rent from real estate shall be considered income, after deduction
of any mortgage payments, real estate taxes, property owner's insurance
and reasonable property management expenses as reported to the Internal
Revenue Service. Other expenses are not deductible. If actual rent
is less than fair market rent, the Borough Administrative Agent or
Administrative Agent shall impute a fair market rent.
H. Income does not include benefits, payments, rebates or credits received
under any of the following:
(1)
Federal or State low-income energy assistance programs;
(2)
Food stamps, payments received for foster care, relocation assistance
benefits;
(3)
Income of live-in attendants, scholarships, student loans, and
personal property, including but not limited to, automobiles; and
(4)
Lump-sum additions to assets such as inheritances, lottery winnings,
gifts, insurance settlements, and part-time income of persons enrolled
as full-time students.
(5)
Income, however, does include interest and other earnings from
the investment of any of the foregoing benefits, payments, rebates,
or credits.
I. Any Administrative Agent shall require each member of an applicant
household who is 18 years of age or older to provide documentation
to verify the member's income, including income received by adults
on behalf of minor children for their benefit. Household members 18
years of age or older who do not receive income must produce documentation
of current status. Income verification documentation may include,
but is not limited to, the following for each and every member of
a household who is 18 years of age or older:
(1)
Four consecutive pay stubs, not more than 120 days old, including
bonuses, overtime or tips, or a letter from the employer stating the
present annual income figure;
(2)
Copies of Federal and State income tax returns for each of the
preceding three tax years;
(3)
A letter or appropriate reporting form verifying monthly benefits
such as Social Security, unemployment, TANF, disability or pension
income (monthly or annually);
(4)
A letter or appropriate reporting form verifying any other sources
of income claimed by the applicant, such as alimony or child support;
(5)
Income reports from banks or other financial institutions holding
or managing trust funds, money market accounts, certificates of deposit,
stocks or bonds; and
(6)
Evidence or reports of income from directly held assets such
as real estate or businesses.
(7)
Court ordered payments for alimony or child support to another
household, whether or not it is being paid regularly, shall be excluded
from income for purposes of determining income eligibility.
J. At the discretion of the Borough Administrative Agent or Administrative
Agent, households may also be required to produce documentation of
household composition for determining the correct dwelling size and
applicable median income guide.
K. Tenant Income Eligibility. In addition to the foregoing requirements,
tenant income eligibility shall be in accordance with the median income
limits of N.J.A.C. 5:80-26.13. 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. 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. 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.
L. The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
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 proposed 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.
M. The applicant shall file documentation sufficient to establish the
existence of the circumstances in 12.a through 12.e above with the
Administrative Agent, who shall counsel the household on budgeting.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. If the household is found to be eligible for low- and moderate-income
housing, they shall be issued a Certificate of Eligibility and placed
on the affordable housing waiting list, except in the event that such
a certificate is withheld or removed in accordance with this article.
Eligible persons that live or work within the East Central Housing
Region (Region 4) shall have preference over those that live or work
in another housing region.
B. Applicants shall be selected in the order in which their applications
are certified and in accordance with the provisions of this article.
C. Households remaining on a waiting list shall update its application
no later than April 30 each year, including the most recent federal
income tax return of each member of the proposed household and such
other updated income and other information requested on the application.
D. Households on the waiting list who have not submitted the required
information by May 15 each year shall be notified by certified mail,
mailed to the address on file that they have until June 30 of that
year to provide the information or they shall be removed from the
waiting list.
E. Any household whose income or priority category has changed such
that the household has become eligible for a different category of
housing or priority list shall be placed on the appropriate list without
penalty or favor as of the date of the original application.
F. Any household whose income has increased to the degree that it is
no longer eligible for low- or moderate-income housing shall be removed
from the waiting list.
G. If the Borough Administrative Agent or Administrative Agent has reason
to believe that the information on file is erroneous or incomplete,
he or she shall have the right to conduct an investigation and request
any additional information deemed necessary to obtain accurate household
information. If an applicant does not cooperate in such investigation
or refuses to reply with the requested additional information within
30 days of said request, the applicant shall be removed from the list.
H. All applications shall be notarized and certified complete and accurate.
Anyone knowingly submitting incomplete, inaccurate, incorrect or false
information may be removed from eligibility for very-low-, low- and
moderate-income dwellings. All information submitted to the Borough
Administrative Agent or Administrative Agent for the purposes of determining
applicant eligibility shall be strictly confidential and not considered
a public record.
I. Prior to the time of availability of a very-low-, low- and moderate-income dwelling, the Borough Administrative Agent or Administrative Agent shall notify by certified mail the top three households on the waiting list for the type of dwelling available, its location and the estimated date it will be available. If a purchaser or tenant cannot be found from the top three households on the waiting list, notice shall be sent to the fourth, fifth, etc., household until a purchaser or tenant is found. The household shall, within 14 days of mailing, notify the Borough Administrative Agent or Administrative Agent, in writing, of its intent to occupy the dwelling and, if selected, its intent to comply with the requirements of Subsection
J below, within 15 days. Any household which fails to respond to the notice or chooses to reject a specific dwelling by informing the Administrative Agent in writing, shall retain its priority and shall be notified of available dwellings in the future, except that if a household chooses to reject a dwelling or fails to respond three times, it shall be removed from the list and must reapply and re-qualify if it wishes to be placed on the list at a new qualified priority.
J. At the time of notice to a household of the availability of an appropriate
type of dwelling and if the household notifies the Administrative
Agent of its intent to occupy the dwelling and that household is selected
for occupancy, each household member shall update the records on file
and recertify the accuracy of the information as required herein.
Information shall be reviewed and the eligibility status reconfirmed.
The household selected shall only at that point proceed to make the
legal and financial arrangements to acquire or lease the dwelling.
K. If a household selected for occupancy is unable to obtain financing, it shall lose its eligibility for that dwelling, after notice, but shall retain its priority status for a similar appropriate dwelling as other dwellings become available and as long as the household remains eligible. When notified of the availability of another dwelling, updating and recertifying data as outlined in Subsection
H above is required.
L. A certificate of eligibility may be withheld by the Borough Administrative
Agent or Administrative Agent as a result of an applicant's inability
to demonstrate sufficient present assets for down payment or security
deposit purposes.
M. A certificate of eligibility may be withheld by the Borough Administrative
Agent or Administrative Agent as a result of an applicant's inability
to verify funds claimed as assets, household composition or other
facts represented.
N. A certificate of eligibility shall be denied by the Borough Administrative
Agent or Administrative Agent as a result of any willful and material
misstatement of fact made by the applicant in seeking eligibility.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- and low-income
units, while the remainder may be moderate-income units.
B. Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(1)
The combined number of efficiency and one-bedroom units is no
greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two bedroom
units;
(3)
At least 20% of all low- and moderate-income units are three
bedroom units; and
(4)
The remainder, if any, may be allocated at the discretion of
the developer.
C. Age-restricted low- and moderate-income units may utilize a modified
bedroom distribution. At a minimum, the number of bedrooms shall equal
the number of age-restricted low- and moderate-income units within
the affordable development. The standard may be met by creating all
one-bedroom units or by creating a two-bedroom unit for each efficiency
unit.
D. In determining the initial rents and initial sales prices for compliance
with the affordable average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(1)
An efficiency shall be affordable to a one-person household;
(2)
A one-bedroom dwelling shall be affordable to a 1 1/2 person
household;
(3)
A two-bedroom dwelling shall be affordable to a three-person
household;
(4)
A three-bedroom dwelling shall be affordable to a 4 1/2
person household;
(5)
A four-bedroom dwelling shall be affordable to a six-person
household.
(6)
In referring certified households to specific income-restricted
units, to the extent feasible and without causing an undue delay in
occupying the dwelling, the Borough Administrative Agent shall strive
to:
(a)
Provide an occupant for each unit's bedroom;
(b)
Provide children of different sex with separate bedrooms; and
(c)
Prevent more than two persons from occupying a single bedroom.
E. Size of Units. The minimum size of affordable housing units, which
is necessary to ensure the public health safety and welfare of its
occupants, shall be as indicated in the following table.
Minimum Size of Affordable Housing Units
|
---|
Type of Unit
|
Minimum Size
(gross square feet)
|
---|
Efficiency
|
500
|
One-bedroom
|
600
|
Two-bedroom
|
750
|
Three-bedroom
|
900
|
F. Certificates of Occupancy. The following additional requirements
for the issuance of certificates of occupancy shall apply to inclusionary
developments:
(1)
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 to Market Units
|
---|
Percentage of Affordable Housing Units Completed
|
Allowed Percentage of Market Housing Units Completed
|
---|
0%
|
25%
|
10%
|
25% + 1
|
50%
|
50%
|
75%
|
75%
|
100%
|
90%
|
(2)
Each unit of affordable housing shall require a certificate
of occupancy, which shall become void upon a change of owner or tenant.
(3)
No certificate of occupancy shall be issued for a low- and moderate-income
unit unless the provisions of N.J.A.C. 5:93-9.3, or superseding administrative
code, are met.
G. Unit Type and Household Size. The following housing type shall be
used in determining affordability as it relates to household size:
Unit Type and Household Size
|
---|
Unit Size
|
Household Size
(persons)
|
---|
Efficiency
|
1
|
One-bedroom
|
1.5
|
Two-bedroom
|
3
|
Three-bedroom
|
4.5
|
Four-bedroom
|
6
|
H. Distribution of Low- and Moderate-Income Units. At least 50% of all
units within each inclusionary development shall be affordable to
low-income households. At least 50% of all rental units shall be affordable
to low-income households. Of the total number of affordable housing
units, 13% of the total shall be earmarked as very-low-income units
and shall be counted towards the minimum low-income requirement.
I. Utilities and Heating Source. 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 NJ 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.
J. Appearance and Location. 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.
K. Tenure. For inclusionary developments with a single housing type,
the affordable housing units shall have the same tenure as the market
housing units.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures as set forth
in the Uniform Housing Affordability Controls.
B. Required Pricing Stratification.
(1)
The maximum rent for affordable units within each affordable
development shall be affordable to households earning no more than
60% of median income and the average rent for low- and moderate-income
units shall be affordable to households earning no more than 52% of
median income. 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 units shall be affordable to households
earning no more than 30% of median income.
(2)
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. Each affordable development shall
achieve an affordability average of 55% for restricted ownership units.
In achieving this affordability average, moderate income ownership
units shall be available for at least three different prices for each
bedroom type, and low-income ownership units shall be available for
at least two different prices for each bedroom type.
C. Initial Pricing and Annual Increases of Affordable Dwellings.
(1)
Owner-occupied dwellings initial pricing. The initial purchase
price for all restricted ownership units shall be calculated so that
the monthly carrying cost of the dwelling, 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; provided, however,
that the price shall be subject to the affordability average requirement
as noted above.
(2)
Rental Dwellings Initial Pricing. The initial rent for a restricted
rental dwelling shall be calculated so as not to exceed 30% of the
eligible monthly income 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.
(3)
Owner-occupied dwellings annual increase. 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.
(4)
Rental Dwellings Annual Increase. The rent of low- and moderate-income
units may be increased annually based on the percentage increase in
the Housing Consumer Price Index for the United States. 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.
(5)
Utilities. 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 NJ Department of Community
Affairs for its Section 8 program.
D. Price Restrictions for Restricted Ownership Units, Homeowner Association
Fees and Resale Prices.
(1)
The initial purchase price for a restricted ownership dwelling
shall be approved by the Borough Administrative Agent.
(2)
The Borough Administrative Agent shall approve all resale prices,
in writing and in advance of the resale, to assure compliance with
the foregoing standards.
(3)
The method used to determine the condominium association fee
amounts and special assessments shall be indistinguishable between
the low- and moderate-income homeowners and the market homeowners.
E. The owners of restricted ownership units may apply to the Borough
Administrative Agent to increase the maximum sales price for the dwelling
on the basis of eligible capital improvements. Eligible capital improvements
shall be those that render the dwelling suitable for a larger household
or the addition of a bathroom.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. The affordability control period for a restricted ownership dwelling
shall commence on the date the initial certified household takes title
to the dwelling.
B. Each restricted ownership dwelling shall remain subject to the requirements
of UHAC until the Borough of Hightstown elects to release the dwelling
from such requirements pursuant to action taken in compliance with
N.J.A.C. 5:80-26.5(g). Prior to such municipal election, a restricted
ownership dwelling shall remain subject to the requirements of N.J.A.C.
5-80-26.5, for a period of at least 30 years, and for a period of
at least 10 years or the sale and repayment of any loan proceeds for
owner-occupied units that were rehabilitated. Where a dwelling unit
is entered into an extension of expiring controls program, the time
period for the ownership restriction shall be at least 30 years from
the date that the existing or prior restriction would have expired.
C. The affordability control period for a restricted ownership dwelling
shall commence on the date the initial certified household takes title
to the dwelling.
D. Each restricted ownership dwelling shall remain in compliance with
and subject to the requirements of N.J.A.C. 5:80-26.5 for control
periods, N.J.A.C. 5:80-26.6 for price restrictions, N.J.A.C. 5:80-26.7
for buyer income eligibility, N.J.A.C. 5:80-26.8 for limitations on
indebtedness and subordination, N.J.A.C. 5:80-26.9 for capital improvements,
and N.J.A.C. 5:80-26.10 for maintenance.
E. Limitations on Indebtedness Secured by Ownership Dwelling; Subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership dwelling, the Borough Administrative Agent shall determine
in writing that the proposed indebtedness complies with the provisions
of this article.
(2)
With the exception of original purchase money mortgages, during
a control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
dwelling to exceed 95% of the maximum allowable resale price of that
dwelling, as such price is determined by the Borough Administrative
Agent in accordance with N.J.A.C. 5:80-26.6(b).
F. Capital Improvements to Ownership Units.
(1)
The owners of restricted ownership units may apply to the Borough
Administrative Agent to increase the maximum sales price for the dwelling
on the basis of capital improvements made since the purchase of the
dwelling. Eligible capital improvements shall be those that render
the dwelling suitable for a larger household or that adds an additional
bathroom. In no event shall the maximum sales price of an improved
housing dwelling exceed the limits of affordability for the larger
household.
(2)
Upon the resale of a restricted ownership dwelling, all items
of property that are permanently affixed to the dwelling or were included
when the dwelling 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 Borough 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 dwelling and not included
in the base price may be made a condition of the dwelling resale provided
the price, which shall be subject to ten-year, straight-line depreciation,
has been approved by the Borough Administrative Agent. Unless otherwise
approved by the Borough Administrative Agent, the purchase of any
property other than central air conditioning shall not be made a condition
of the dwelling 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.
G. Notice of Resale, Recapture Covenant and 95/5 Purchase Options.
(1)
The owner of the property is required to notify the Borough
Administrative Agent by certified mail of any intent to sell the property
90 days prior to entering into an agreement for the first non-exempt
sale of the Property after the conclusion of the period of affordability
controls on restricted units in effect at the time the Property was
first restricted as part of the Affordable Housing Program.
(2)
The municipal construction code official shall inspect the available
affordable resale unit for construction and property maintenance code
violation(s). The code official shall submit in writing to the owner
and the Borough Administrative Agent a listing of the violation(s).
The estimated cost of the repairs not completed by the owner prior
to resale shall be deducted from the resale price. The cost of repairs
not undertaken by the owner will be determined by estimator(s) and/or
contractor(s) supplied by the Borough Administrative Agent and charged
back to the seller.
(3)
Upon the first such non-exempt sale of the Property, 95% of the difference between, (i), the actual sale price; and (ii), the regulated maximum sales price that would be applicable were the period of affordability controls on restricted units still in effect, shall be paid at closing to the Borough of Hightstown; or, to the NJ Department of Community Affairs or NJ Housing and Mortgage Finance Agency, when acting as receiving agent for the municipality. Exempt sales shall be as listed in §
28-17-13.
(4)
Such non-exempt sale is subject to the options provided for
in N.J.A.C. 5:80-26.20 (Option to buy 95/5 units), N.J.A.C. 5:80-26.21
(Municipal Option on 95/5 units), N.J.A.C. 5:80-26.22 (State Option
on 95/5 Units), N.J.A.C. 5:80-26.23 (Non-Profit Option on 95/5 Units),
N.J.A.C. 5:80-26.24 (Seller Option on 95/5 Units), N.J.A.C. 5:80-26.25
(Municipal Rejection of Repayment Option on 95/5 Units) and N.J.A.C.
5:80-26.26 (Continued Application of Options to Create, Rehabilitate
or Maintain 95/5 Units) of UHAC.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. Each restricted rental dwelling shall remain subject to the requirements
of UHAC until the Borough of Hightstown elects to release the dwelling
from such requirement pursuant to action taken in compliance with
N.J.A.C. 5:80-26.11(e). Prior to such a municipal election, a restricted
rental dwelling shall remain subject to the requirements of N.J.A.C.
5:80-26.11, for a minimum of 30 years, and for a period of at least
10 years or the sale and repayment of any loan proceeds for renter-occupied
units that were rehabilitated.
B. Each restricted rental dwelling shall remain in compliance with and
subject to the requirements of N.J.A.C. 5:80-26.11 for control periods,
N.J.A.C. 5:80-26.12 for restrictions on rents, and N.J.A.C. 5:80-26.13
for tenant income eligibility.
C. 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 Mercer. A copy of the filed document shall be provided
to the Borough Administrative Agent within 30 days of the receipt
of a Certificate of Occupancy.
D. A restricted rental dwelling shall remain subject to the affordability
controls of this Article, despite the occurrence of any of the following
events:
(1)
Sublease or assignment of the lease of the dwelling;
(2)
Sale or other voluntary transfer of the ownership of the dwelling;
or
(3)
The entry and enforcement of any judgment of foreclosure.
E. Rent Restrictions for Rental Units; Leases.
(1)
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 dwelling shall be provided
to the Borough Administrative Agent.
(2)
No additional fees or charges shall be added to the approved
rent without the express written approval of the Borough Administrative
Agent.
(3)
Application fees (including the charge for any credit check)
shall not exceed 5% of the monthly rent of the applicable restricted
dwelling and shall be payable to the Borough Administrative Agent
to be applied to the costs of administering the controls applicable
to the dwelling as set forth in this Article.
[Ord. No. 2019-01; Ord. No. 2020-03]
The following barrier free accessibility and adaptability requirements
shall apply to all new construction:
A. 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 Sub-code, N.J.A.C.
5:23-7.
B. All restricted townhouse dwellings and all restricted units in other
multistory buildings in which a restricted dwelling is attached to
at least one other dwelling shall have the following features:
(1)
An adaptable toilet and bathing facility on the first floor;
(2)
An adaptable kitchen on the first floor;
(3)
An interior accessible route of travel on the first floor;
(4)
An interior accessible route of travel shall not be required
between stories within an individual dwelling;
(5)
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
(6)
An accessible entranceway in accordance with N.J.S.A. 52:27D-311a,
et seq. and the Barrier Free Sub-code, N.J.A.C. 5:23-7, or evidence
that the municipality has collected funds from the developer sufficient
to make 10% of the adaptable entrances in the development accessible:
(a)
Where a dwelling has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling, an accessible entrance shall be installed.
(b)
To this end, the developer of restricted units shall deposit
funds within the affordable housing trust fund of the Borough of Hightstown
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
(c)
The funds deposited under Subsection
B(6)(b) above shall be used by the Borough for the sole purpose of making the adaptable entrance of any affordable dwelling accessible when requested to do so by a person with a disability who occupies or intends to occupy the dwelling and requires an accessible entrance.
(7)
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from an adaptable to an
accessible entrance to the Construction Code Official.
(8)
Once the Construction Code 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 into the municipality's affordable housing trust fund
by the Chief Financial Officer who shall ensure that the funds are
deposited into the affordable housing trust fund and appropriately
earmarked.
(9)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that physical or environmental conditions
of the site render it 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.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. The following transactions shall be deemed "non-sales" for purposes
of these regulations and the owner receiving title by virtue of any
of the following transactions shall be entitled to a statement of
exemption to the owner receiving title by virtue of any of the following
transactions:
(1)
Transfer of ownership of an affordable sales unit between husband
and wife;
(2)
Transfer of ownership of an affordable sales unit between former
spouses ordered as a result of a judicial decree of divorce (and not
including sales to third parties);
(3)
Transfer of ownership of an affordable unit between family members
as a result of inheritance;
(4)
Transfer of ownership of an affordable unit through an executor's
deed to a Class A beneficiary;
(5)
Transfer of ownership of an affordable unit through an order
of the Superior Court or other court, in a foreclosure proceeding
or transfer in lieu of foreclosure after a foreclosure proceeding
has commenced.
B. Except for the income level of the family acquiring title by an exempt transaction, the exempt transfer will not eliminate any restrictions set forth herein including, but not limited to, the unit remaining the prime resident and the requirement for resale to low- and moderate-income families as applicable and all such restrictions shall remain in effect following the exempt transfer except as stated in Subsection
A(5).
C. Should a mortgagee acquire title pursuant to Subsection
A(5) it may re-sell the unit to any family, regardless of income, with the municipality having the right of first refusal. The sales price to the municipality is the amount necessary to cure the foreclosure. This includes all principal and interest due to the mortgagee and other lien holders, repayment of equity to the owner prior to foreclosure and the costs of foreclosure. If the municipality does not purchase the unit, the mortgagee may sell the unit without any of the restrictions set forth in this article. The amount of the sale above that which is necessary to cure the foreclosure will be turned over to the municipality to be used for low- and moderate-income housing.
[Ord. No. 2019-01; Ord. No. 2020-03]
Initial and subsequent owners of affordable housing units shall
occupy the dwelling as their principal residence. Rental or subleasing
of the affordable housing unit is expressly forbidden.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. Nothing in these rules should be construed to limit the rights and
duties of the owner and tenant to maintain the dwelling in accordance
with all appropriate New Jersey State or municipal construction and
property maintenance codes.
B. Notwithstanding anything to the contrary in this Article, any member
of a household occupying a dwelling under this Article and subject
to the regulations of the Borough of Hightstown is subject to eviction
for any reasons allowed under applicable New Jersey law. The provisions
of this Article are not intended to confer any additional rights or
obligations on property owners or tenants other than those mandated
by statute or required by the courts of the State of New Jersey or
the duly adopted regulations of any of its agencies.
[Ord. No. 2019-01; Ord. No. 2020-03]
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 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 which 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 Hightstown Borough 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 are part of the Borough's prior round
Housing Element and its current Housing Element and 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 when Hightstown is allocated a rehabilitation
component.
D. Plan Preparation. The Borough Administrative Agent or 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,
for review and approval by the Borough Administrative Agent. The Borough
Administrative Agent of the Borough shall oversee the work of a developer's
Administrative Agent provided that the person has been approved by
the Borough Administrative Agent. 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. This
plan will be adhered to by all private, non-profit 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 4, comprised
of Mercer, Monmouth and Ocean Counties.
(2)
Although the Borough has the ultimate responsibility for implementing
all aspects of Hightstown's affordable housing program, the Administrative
Agent designated by the Borough 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 issues, 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 Borough of Hightstown.
(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 municipal administration building and the municipal library in
Hightstown; and the developer's rental office. Applications shall
be mailed to prospective applicants upon request.
(8)
The Borough Administrative Agent shall develop, maintain and
update a list of community contact person(s) and/or organizations(s)
in the Region 4 Housing Area for the use of the Borough 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, the Trenton, Greater Red Bank, Asbury Park/Neptune,
Bayshore, Greater Freehold, Greater Long Branch Branches of the NAACP,
Shiloh Baptist Church, 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 Borough Administrative Agent.
(9)
The Affirmative Marketing Plan shall be approved by the Borough
Administrative Agent prior to implementation.
[Ord. No. 2019-01; Ord. No. 2020-03]
A. Upon the occurrence of a breach of any of the regulations governing
the affordable dwelling 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 dwelling 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 $1,000 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
In the case of an owner who has rented his or her low- or moderate-income
dwelling in violation of the regulations governing affordable housing
units, payment into the Borough of Hightstown's 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 dwelling, 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- and moderate-income unit.
(3)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the County 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 the right to possession terminated as well as the title conveyed
pursuant to the Sheriff's sale.
C. The proceeds of the Sheriff's sale shall first be applied to satisfy
the first purchase money mortgage lien upon the dwelling and any prior
liens on the dwelling. The excess, if any, shall be applied to reimburse
the Borough 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 Borough in full as aforesaid,
the violating owner shall be personally responsible for the deficiency,
in addition to any and all costs incurred by the Borough in connection
with collecting said deficiency. The remainder, if any, up to a maximum
of the amount the owner would be entitled to if he or she were to
sell the dwelling as permitted by N.J.S.A. 5:80-26.1 et seq., shall
be placed in escrow by the Borough for the owner and shall be held
in such escrow for a period of two years or until such time as the
owner shall make a claim with the Borough for the same. Failure of
the owner to claim said sum within the two-year period shall automatically
result in a forfeiture of said remainder to the municipality and paid
into the Affordable Housing Trust Fund. Any interest accrued or earned
on the remainder while being held in escrow shall belong to and shall
be paid to the Hightstown Borough Affordable Housing Fund whether
the remainder is paid to the owner or forfeited to the Borough. Any
excess funds derived over and above the sum due the owner shall be
paid over to the Borough's Affordable Housing Trust Fund.
D. 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
dwelling. 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.
E. 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.
F. Failure of the very-low-, 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.
G. 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.
H. Right to Cure. The Borough may, at its option, advance and pay all
sums necessary to protect, preserve and retain the dwelling as an
affordable dwelling, subject to the terms of this Article. All sums
so advanced and paid by the Borough shall become a lien against said
dwelling and shall have a higher priority than any lien except the
first purchase money mortgage lien and liens by duly authorized government
agencies. Such sums may include but are not limited to insurance premiums,
taxes, assessments (public or private) and costs of repair necessary
to bring the dwelling up to any and all applicable local, state or
federal codes and liens which may be or become prior and senior to
any first purchase money mortgage as a lien on the dwelling or any
part thereof. If, in the event of a default or nonpayment by the owner
of an affordable dwelling, any first mortgagee or other creditor of
an owner of an affordable dwelling exercises its contractual or legal
remedies available, the owner shall notify the Administrative Agent
and the Borough Solicitor of the Borough, in writing, within 10 days
of notification by the first mortgagee or creditor and no later than
10 days after service of any summons and complaint, and the Borough
shall have the option to purchase, redeem or cure any default upon
such terms and conditions as may be agreeable to all parties in interest
and/or to acquire the first purchase money mortgage to the dwelling,
thereby replacing the first mortgagee as the first mortgagee of the
dwelling. The Borough shall have the same priority of lien as was
held by the first mortgagee at the time the Borough acquires such
first purchase money mortgage and shall have the right of subrogation
with respect to any other claim or lien it satisfies or acquires.
I. Provisions for First Purchase Money Mortgagees.
(1)
The terms and restrictions of this section shall be subordinate
only to a first purchase money mortgage lien on any affordable dwelling
and in no way shall impair the first mortgagee's ability to exercise
the contract remedies available to it in the event of default as set
forth in the first purchase money mortgage. The first mortgagee and/or
mortgage servicer shall serve written notice upon the Borough within
10 days after the first purchase money mortgage is two months in arrears
and again within 10 calendar days of the filing of a complaint seeking
foreclosure of the first purchase money mortgage held on an affordable
dwelling. However, a judgment of foreclosure upon the property shall
in no instance terminate the conditions and requirements of this Article
maintaining the dwelling as an affordable, income-restricted residence.
(2)
The obligation of the first mortgagee and servicer to notify
the Borough shall cease automatically and immediately upon the sale
of the first purchase money mortgage to the Federal National Mortgage
Association or in the secondary mortgage market, unless the rules
and regulations or guidelines of the Federal National Mortgage Association
are amended so as to not prohibit or exclude placing such obligation
upon the holder of the mortgage or its service representative, in
which case, an instrument duly evidencing the same shall be recorded
with the Register of Deeds, Mercer County, New Jersey, before any
such obligation shall exist. Provided that the first mortgagee is
obligated to give the Borough the above-mentioned notices, the first
mortgagee shall also serve written notice of any proposed foreclosure
sale upon the Borough at least 30 days prior to the first scheduled
date of such sale. The first mortgagee shall serve notice upon the
Borough within 30 days of the sale of the first purchase money mortgage
to the Federal National Mortgage Association or in the secondary mortgage
market.
(3)
The Borough of Hightstown or any instrumentality designated
by the Borough shall have the right to purchase any mortgage which
is in default at any time prior to the entry of a foreclosure judgment
or within the redemption period thereafter. Notification of a default
and of the institution of a foreclosure action and of a sheriff's
sale shall be served, in writing, upon the Borough Clerk and Municipal
Attorney. The Borough of Hightstown shall at all times be considered
a party in interest and shall have the right to be joined as a party
defendant and/or shall have the right to intervene in any foreclosure
action seeking foreclosure of a first mortgage and/or shall have the
right to redeem and acquire the owner's equity of redemption or to
acquire the dwelling from the owner upon such terms and conditions
as may be determined by the Borough.
(4)
Surplus Funds. In the event of a foreclosure sale by the holder
of the first purchase money mortgage, the owner shall be personally
obligated to pay to the Borough any excess funds, but only to the
extent that such excess funds exceed the difference between what the
owner could have resold his dwelling for under this Article at the
time of the foreclosure sale and the amount necessary to redeem and
satisfy the first purchase money mortgage debt, including costs of
foreclosure and costs of repairs necessary to bring the dwelling up
to any and all applicable local, state or federal codes. For the purposes
of this subsection, excess funds shall be the total paid to the sheriff
in excess of the amount required to pay and satisfy the first purchase
money mortgage, including the costs of foreclosure, even if junior
creditors actually receive payment from said surplus funds to the
exclusion of the owner. The Borough is hereby given a first priority
lien, second only to the first mortgagee for any taxes or public assessments
by a duly authorized governmental body up to the full amount of excess
funds. This obligation of the owner to pay this full amount to the
Borough shall be deemed to be a personal obligation of the owner of
record at the time of the foreclosure sale, and the Borough is hereby
empowered to enforce this obligation in any appropriate court of law
or equity as though the same were a personal contractual obligation
of the owner. Neither the first mortgagee nor the purchaser at the
foreclosure sale shall be responsible or liable to the Borough for
any portion of this excess. The Borough shall deposit any funds received
in the Affordable Housing Trust Fund and use it for the purposes as
set forth in the Housing Element and Fair Share Plan.