[HISTORY Adopted by the Mayor and Council
of the Borough of Glassboro 12-14-2021 by Ord. No. 21-23.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 249,
Fair Housing, adopted 7-26-1988 by Ord. No. 88-21, as amended.
A.
This chapter is intended to assure that very-low-, low-, and moderate-income
units ("affordable units") are created with controls on affordability
and that very-low-, low-, and moderate-income households shall occupy
these units. This chapter shall apply except where inconsistent with
applicable law.
B.
The Borough of Glassboro Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. (hereinafter "Fair Share Plan") and thereafter entered
into a Settlement Agreement with Fair Share Housing Center on July
28, 2017 (the "Settlement Agreement"). The Fair Share Plan was endorsed
by the Borough Council, and it approved the Settlement Agreement.
The Fair Share Plan and Settlement Agreement describe how the Borough
of Glassboro shall address its fair share of very-low-, low-, and
moderate-income housing as documented in the Fair Share Plan itself,
the Settlement Agreement as approved by the Court after conducting
a Fairness Hearing and Final Compliance Hearing and thereafter entering
a Final Judgment of Compliance and Repose dated April 24 2018.
The Borough of Glassboro shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Housing Element and Fair Share Plan:
A.
Beginning on July 1, 2021, and on every anniversary of that date
through July 1, 2025, the Borough shall provide annual reporting of
its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Council on Affordable
Housing (COAH), or Local Government Services (NJLGS). The reporting
shall include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
B.
Beginning on July 1, 2021, and on every anniversary of that date
through July 1, 2025, the Borough shall provide annual reporting of
the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to Fair Share Housing Center, using forms previously developed
for this purpose by COAH or any other forms endorsed by the Special
Master and FSHC.
C.
By July 1, 2021, as required pursuant to N.J.S.A. 52:27D-313, the
Borough will post on its municipal website, with a copy provided to
FSHC, a status report as to its implementation of its plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether any mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the municipality, with
a copy to FSHC, regarding whether any sites no longer present a realistic
opportunity and should be replaced and whether any mechanisms to meet
unmet need should be revised or supplemented. Any interested party
may by motion request a hearing before the Court regarding these issues.
D.
By July 1, 2021, and every third year thereafter, as required by
N.J.S.A. 52:27D-329.1, the Borough will post on its municipal website,
with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
The following terms, when used in this chapter, shall have the
meanings given in this section:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.[1]
The entity designated by the Borough to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to very-low-,
low-, and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Borough's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607(b)(2).
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:249K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health-care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
A household that has been certified by an Administrative
Agent as a very-low-income household, low-income household or moderate-income
household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development, including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
The First Amended Settlement Agreement dated January 11,
2019, and the Amendment to the First Amended Settlement Agreement
between the Borough of Glassboro and Fair Share Housing Center approved
by the Borough Committee of the Borough of Glassboro on December 10,
2020, in IMO Borough of Glassboro, Docket No. MON-L-2523-15.
A development containing both affordable units and market-rate
units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load-bearing structural
systems.
Housing not restricted to very-low-, low- and moderate-income
households that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class
A beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted Regional Income Limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1
et seq., as amended and supplemented, but does not include a market-rate
unit financed under the Urban Homeownership Recovery Program or Market
Oriented Neighborhood Investment Program.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1, et seq.
A household with a total gross annual household income equal
to or less than 30% of the regional median household income by household
size.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for purposes of a rehabilitation
program.
[1]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
A.
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Borough of Glassboro pursuant
to the Borough's most recently adopted Housing Element and Fair
Share Plan and the Settlement Agreement.
B.
This chapter shall apply to all developments that contain very-low-,
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide very-low-, low- and moderate-income
housing units, and also including projects funded with low-income
housing tax credits.
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
B.
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
C.
The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
In inclusionary developments, the following schedule for the
issuance of certificates of occupancy for the required affordable
housing units relative to the issuance of certificates of occupancy
for the permitted market units shall be followed:
|
Maximum Percentage of Market-Rate Units Completed
(COs Issued)
|
Minimum Percentage of Low- and Moderate-Income Units Completed
(COs Issued)
|
|---|---|
|
25%
|
0%
|
|
25% + 1 unit
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
A.
Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units:
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units within each bedroom distribution
shall be very-low-income units (affordable to a household earning
30% or less of regional median income by household size). The very-low-income
units shall be counted as part of the required number of low-income
units within the development.
(2)
At least 25% of the obligation shall be met through rental units,
including at least half in rental units available to families.
(3)
A maximum of 25% of the Borough's obligation may be met with
age-restricted units. At least half of all affordable units in the
Borough's plan shall be available to families.
(4)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units, including that 13% shall be very-low-income.
(5)
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.
(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:
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door,
or the casing for the installation of a door, on the first floor;
and
(e)
If not all of the foregoing requirements in Subsection B(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7,[2] or evidence that Glassboro Borough 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 Borough of Glassboro Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Borough of Glassboro for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Borough
of Glassboro for the conversion of adaptable to accessible entrances.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7,[3] and that the cost estimate of such conversion is reasonable,
payment shall be made to the Borough's Affordable Housing Trust
Fund in care of the Borough Treasurer, who shall ensure that the funds
are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[3]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[2]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
(g)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.[4]
[4]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
(3)
Design:
(a)
In inclusionary developments, to the extent possible, very-low-,
low- and moderate-income units shall be integrated with the market
units.
(b)
In inclusionary developments, very-low-, low- and moderate-income
units shall have access to all of the same common elements and facilities
as the market units.
(4)
Maximum rents and sales prices:
(a)
In establishing rents and sales prices of affordable housing
units, the Administrative Agent shall follow the procedures set forth
in UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and using
the calculation set forth below. Income limits for all affordable
units that are created in the Borough for which income limits are
not already established through a federal program exempted from the
UHAC pursuant to N.J.A.C. 5:80-26.1 shall be updated by the Borough
annually within 30 days of the publication of determinations of median
income by the Department of Housing and Urban Development ("HUD")
as follows:
[1]
Regional income limits shall be established for the region within
which the Borough is located based on the median income by household
size, which shall be established by a regional weighted average of
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 a housing region is summed. The sum
is divided by the estimated total households from the most recent
decennial census in the Borough's housing region. This quotient
represents the original 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.
[2]
The income limits are the result of applying the percentages set forth in Subsection B(4)(a)[1] above to HUD's determination of median income for the fiscal year 2019 and shall be utilized until the Borough updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
[3]
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 Borough annually by taking the percentage increase of the income limits calculated pursuant to Subsection B(4)(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.
[4]
The resale prices of owner-occupied very-low-, low- and moderate-income
units may increase annually based on the percentage increase in the
regional median income limit for each housing region determined pursuant
to the above methodology. In no event shall the maximum resale price
established by the Administrative Agent be lower than the last recorded
purchase price.
[5]
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area, upon its
publication for the prior calendar year. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income-housing
tax credit regulations shall be indexed pursuant to the regulations
governing low-income-housing tax credits.
(b)
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.
(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 very-low-income households, which 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 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.
(e)
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:
[1]
A studio shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a 1 1/2-person
household;
[3]
A two-bedroom unit shall be affordable to a three-person household;
[4]
A three-bedroom unit shall be affordable to a 4 1/2-person
household; and
[5]
A four-bedroom unit shall be affordable to a six-person household.
(f)
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:
[1]
A studio shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a 1 1/2-person
household; and
[3]
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
[4]
The initial purchase price for all restricted ownership units
shall be calculated so that the monthly carrying cost of the unit,
including principal and interest (based on a mortgage loan equal to
95% of the purchase price and the Federal Reserve H.15 rate of interest),
taxes, homeowners' and private mortgage insurance and condominium
or homeowners' association fees do not exceed 28% of the eligible
monthly income of the appropriate size household as determined under
N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided,
however, that the price shall be subject to the affordability average
requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(g)
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.
(h)
The price of owner-occupied very-low-, 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 rents of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area. This increase
shall not exceed 9% in any one year. Rent increases for units constructed
pursuant to low-income-housing tax credit regulations shall be indexed
pursuant to the regulations governing low-income-housing tax credits.
A.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by HUD for the Section 8 program.
In referring certified households to specific restricted units,
the Administrative Agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A.
Control periods for newly constructed restricted ownership units
shall be in accordance with N.J.A.C. 5:80-26.5, except as said settlement
agreement may be further amended and supplemented, and each newly
constructed restricted ownership unit shall remain subject to the
requirements of this chapter for a period of at least 30 years, until
Glassboro Borough takes action to release the unit from such requirements;
prior to such action, a restricted ownership unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Administrative Agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Administrative Agent a recapture
note obligating the purchaser (as well as the purchaser's heirs,
successors and assigns) to repay, upon the first nonexempt sale after
the unit's release from the restrictions set forth in this chapter,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
E.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all Code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-249.6, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners' association fees and special
assessments paid by very-low-, low- and moderate-income purchasers
and those paid by market purchasers.
D.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of approved capital improvements. Eligible capital improvements shall
be those that render the unit suitable for a larger household or the
addition of a bathroom. See N.J.A.C. 5:80-26.13.
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.7, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median-income
and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
B.
Notwithstanding the foregoing, the Administrative Agent may, upon
approval by the Borough Council, and subject to the Court's approval,
permit a moderate-income purchaser to buy a low-income unit if and
only if the Administrative Agent can demonstrate that there is an
insufficient number of eligible low-income purchasers in the housing
region to permit prompt occupancy of the unit and all other reasonable
efforts to attract a low-income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
C.
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
D.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowners' and private mortgage
insurance and condominium or homeowners' association fees, as
applicable) does not exceed 33% of the household's eligible monthly
income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this chapter, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
B.
With the exception of first purchase money mortgages, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale, provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.
Control periods for newly constructed restricted rental units shall
be in accordance with N.J.A.C. 5:80-26.11, except as modified by the
terms of the settlement agreement between the Borough of Glassboro
and Fair Share Housing Center (FSHC), as such settlement agreement
may be further amended and supplemented, and each newly constructed
restricted rental unit shall remain subject to the requirements of
this chapter for a period of at least 30 years, until Glassboro Borough
takes action to release the unit from such requirements. Prior to
such action, a restricted rental unit must remain subject to the requirements
of N.J.A.C. 5:80-26.11, except as modified by the terms of the settlement
agreement between the Borough of Glassboro and Fair Share Housing
Center (FSHC), as such settlement agreement may be further amended
and supplemented.
B.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Gloucester. The deed shall also identify each affordable
unit by apartment number and/or address and whether that unit is designated
as a very-low-, low- or moderate-income unit. Neither the unit nor
its affordability designation shall change throughout the term of
the deed restriction. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease. A copy of the current lease
for each restricted rental unit shall be provided to the Administrative
Agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
C.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the Administrative Agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this chapter.
D.
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
All 100% affordable projects, including projects funded through
low-income-housing tax credits, shall comply with the Uniform Housing
Affordability Controls, N.J.A.C. 5:80-26.1 et seq. All such projects
shall be required to have an initial thirty-year affordability control
period plus a fifteen-year extended use period. At least 13% of all
restricted units within each bedroom distribution 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,
which shall be at least 50% of all restricted rental units within
each bedroom distribution.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of the regional
median household income by household size.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
household income by household size.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median household
income by household size.
B.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents reliable anticipated third-party assistance
from an outside source such as a family member in a form acceptable
to the Administrative Agent and the owner of the unit.
A.
There is hereby created the position of Municipal Housing Liaison.
The Municipal Housing Liaison shall be responsible for oversight and
administration of the affordable housing program for Glassboro Borough,
including the following responsibilities which may not be contracted
out to the Administrative Agent:
(1)
Serving as Glassboro Borough's primary point of contact for
all inquiries from the state, affordable housing providers, Administrative
Agents and interested households;
(2)
Monitoring the status of all restricted units in Glassboro Borough's
Fair Share Plan;
(3)
Compiling, verifying, submitting and posting all monitoring reports
as required by the Court and by this chapter;
(4)
Coordinating meetings with affordable housing providers and Administrative
Agents, as needed; and
(5)
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed.
B.
The Borough of Glassboro shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Borough's affordable housing program, including overseeing
the administration of affordability controls on the affordable units
and the affirmative marketing of available affordable units in accordance
with the Borough's Affirmative Marketing Plan; fulfilling monitoring
and reporting requirements; and supervising Administrative Agent(s).
Glassboro Borough shall adopt a resolution appointing the person to
fulfill the position of Municipal Housing Liaison. The Municipal Housing
Liaison shall be appointed by the Borough Council and may be a full-
or part-time municipal employee.
C.
The Borough of Glassboro shall designate one or more Administrative
Agents to administer and to affirmatively market the affordable units
constructed in the Borough in accordance with this chapter and UHAC.
An operating manual for each affordable housing program shall be provided
by the Administrative Agent(s) to be adopted by resolution of the
Borough Council. The operating manual(s) shall be available for public
inspection in the office of the Borough Clerk, in the office of the
Municipal Housing Liaison, and in the office(s) of the Administrative
Agent(s). The Municipal Housing Liaison shall supervise the work of
the Administrative Agent(s).
An Administrative Agent may either be an independent entity
serving under contract to and reporting to the municipality, or the
municipality itself, through a designated municipal employee, department,
board, agency or committee, pursuant to N.J.A.C. 5:80-26.14(c). The
fees of the Administrative Agent shall be paid by the owners of the
affordable units for which the services of the Administrative Agent
are required. The Administrative Agent shall be qualified through
a training program sponsored by the Affordable Housing Professionals
of New Jersey before assuming the duties. The Administrative Agent
shall perform the duties and responsibilities of an Administrative
Agent as set forth in UHAC, including those set forth in N.J.A.C.
5:80-26.14, 5:80-26.15, 5:80-26.16 and 5:80-26.18 thereof, which includes:
A.
Affirmative marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Borough of Glassboro and the provisions of N.J.A.C. 5:80-26.15;
and
(2)
Providing counseling or contracting to provide counseling services
to very-low-, low- and moderate-income applicants on subjects such
as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
B.
Household certification:
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)
Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendices J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5)
Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
(6)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Borough of Glassboro when referring households
for certification to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Borough of Glassboro: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Greater Red Bank, Asbury Park/Neptune, Bayshore, Greater Freehold,
and Greater Long Branch Branches of the NAACP, and the Supportive
Housing Association.
C.
Affordability controls:
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Gloucester
County Register of Deeds or Gloucester County Clerk's office
after the termination of the affordability controls for each restricted
unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
D.
Resales and rerentals:
(1)
Instituting and maintaining an effective means of communicating information
between owners and the Administrative Agent regarding the availability
of restricted units for resale or rerental; and
(2)
Instituting and maintaining an effective means of communicating information
to low- (or very-low-) and moderate-income households regarding the
availability of restricted units for resale or rerental.
E.
Processing requests from unit owners:
(1)
Reviewing and approving requests for determination from owners of
restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
(2)
Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to make capital improvements to the units
that would affect the selling price, such authorizations to be limited
to those improvements resulting in additional bedrooms or bathrooms
and the depreciated cost of central air-conditioning systems;
(3)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units for
hardship waivers.
F.
Enforcement:
(1)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(2)
Securing from all developers and sponsors of restricted units, at
the earliest point of contact in the processing of the project or
development, written acknowledgement of the requirement that no restricted
unit can be offered, or in any other way committed, to any person,
other than a household duly certified to the unit by the Administrative
Agent;
(3)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent, together with the
telephone number of the Administrative Agent where complaints of excess
rent or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling units,
reminding them of the notices and requirements outlined in N.J.A.C.
5:80-249.26(d)4;
(5)
Establishing a program for diverting unlawful rent payments to the
municipality's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each affordable
housing program administered by the Administrative Agent, to be approved
by the Borough Council and the Court, setting forth procedures for
administering the affordability controls. The operating manual(s)
shall be available for public inspection in the office of the Borough
Clerk, in the office of the Municipal Housing Liaison, and in the
office(s) of the Administrative Agent(s).
G.
Additional responsibilities:
(1)
The Administrative Agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(2)
The Administrative Agent shall prepare monitoring reports for submission
to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
(3)
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.
The Borough of Glassboro shall adopt by resolution an Affirmative
Marketing Plan, subject to approval of the Court, that is compliant
with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
B.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
It is a continuing program that directs marketing activities toward
Housing Region 4 and is required to be followed throughout the period
of restriction.
C.
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 4, comprised
of Mercer, Gloucester and Ocean Counties.
D.
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The Administrative Agent designated by
the Borough of Glassboro shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
E.
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to very-low-, low-
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
F.
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the Administrative Agent shall consider
the use of language translations where appropriate.
G.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
H.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request.
I.
In addition to other affirmative marketing strategies, the Administrative
Agent shall provide specific notice of the availability of affordable
housing units in Glassboro Borough, and copies of the application
forms, to the following entities: Fair Share Housing Center, the New
Jersey State Conference of the NAACP, the Gloucester County Branch
of the NAACP, NAACP Asbury Park, NAACP Greater Freehold, NAACP Greater
Red Bank, NAACP Greater Long Branch, NAACP Ocean County/Lakewood,
Senior Citizens United Community Services (SCUCS), the Latino Action
Network, STEPS (Solution to End Poverty Soon), Ocean, Inc., and the
Supportive Housing Association.
J.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
A.
Upon the occurrence of a breach of any of the regulations governing
an affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action(s) against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation or violations of the regulations governing the
affordable housing unit. If the owner, developer or tenant is adjudged
by the Court to have violated any provision of the regulations governing
affordable housing units, the owner, developer or tenant shall be
subject to one or more of the following penalties, at the discretion
of the Court:
(a)
A fine of not more than $500 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
(b)
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Borough of Glassboro Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a very-low-, low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
(2)
The municipality may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the first purchase money mortgage and
shall constitute a lien against the low- or moderate-income unit.
(a)
The judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the very-low-,
low- and moderate-income unit of the violating owner shall be sold
at a sale price which is not less than the amount necessary to fully
satisfy and pay off any first purchase money mortgage and prior liens
and the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have his
right to possession terminated as well as his title conveyed pursuant
to the Sheriffs 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 very-low-, low- and moderate-income unit. The excess, if
any, shall be applied to reimburse the municipality for any and all
costs and expenses incurred in connection with either the court action
resulting in the judgment of violation or the Sheriff's sale.
In the event that the proceeds from the Sheriff's sale are insufficient
to reimburse the municipality in full as aforesaid, the violating
owner shall be personally responsible for the full extent of such
deficiency, in addition to any and all costs incurred by the municipality
in connection with collecting such deficiency. In the event that a
surplus remains after satisfying all of the above, such surplus, if
any, shall be placed in escrow by the municipality for the owner and
shall be held in such escrow for a maximum period of two years or
until such earlier time as the owner shall make a claim with the municipality
for such. Failure of the owner to claim such balance within the two-year
period shall automatically result in a forfeiture of such balance
to the municipality. Any interest accrued or earned on such balance
while being held in escrow shall belong to and shall be paid to the
municipality, whether such balance shall be paid to the owner or forfeited
to the municipality.
(c)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the very-low-, 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 very-low-,
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 very-low-,
low- and moderate-income unit could have been sold under the terms
of the regulations governing affordable housing units. This excess
shall be treated in the same manner as the excess which would have
been realized from an actual sale as previously described.
(e)
Failure of the 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 very-low-, low- and moderate-income unit as permitted by the
regulations governing affordable housing units.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions governing affordable
housing units until such time as title is conveyed from the owner.
Appeals from all decisions of an Administrative Agent appointed
pursuant to this chapter shall be filed in writing with the Court.
