The purpose of this article is to provide an administrative mechanism and regulations for assuring the affordability of low- and moderate-income housing developed for purchase or rental in the Mount Laurel Zone (Article
IX) and the Special Overlay Zone in the LI Zone (Article
X), in conformance with the regulations of the New Jersey Council on Affordable Housing (COAH). These requirements shall apply in all zones where affordable housing is required by this section or has been developed in accordance with the revised Settlement Agreement dated October 16, 1985, and the Order dated March 25, 1986, in the Mount Laurel litigation entitled Norwood Easthill Associates, et al. v. Borough of Norwood, et al., L-24219-83 and consolidated cases.
At each development that includes affordable
housing units, at least 50% of all units in each bedroom distribution
type shall be available for low-income households.
In computing the shelter cost of affordable
housing units, only the following components shall be included:
A. Rental housing: rent, including an allowance for utilities
(sewer, water, electricity and gas) and fees, if any, for parking
at least one car.
B. Sales units: the cost of principal, interest, property
taxes, homeowner (fire, theft and liability) insurance, private mortgage
insurance, sewer and water charges and condominium or homeowners'
association fees, if any. Principal and interest shall be determined
on the basis of a 10% down payment and a thirty-year fixed-rate mortgage
realistically obtainable from at least two major lenders active in
the housing region.
The maximum monthly shelter cost for affordable
housing units of the appropriate unit size for the household size
shall be 28% of the household's gross annual income for sales units
and 30% of the household's gross monthly income for rental units.
Maximum sales prices and maximum rents of affordable
housing units shall be determined on the basis of the following criteria
on occupancy of dwelling units by household size:
A. Efficiency units shall be affordable to one-person
households.
B. One-bedroom units shall be affordable to two-person
households.
C. Two-bedroom units shall be affordable to three-person
households.
D. Three-bedroom units shall be affordable to five-person
households.
E. Four-bedroom units shall be affordable to seven-person
households.
Condominium and homeowner association fees shall
be fairly assessed based on the square footage of units for both market-priced
and affordable housing units. The master deed for all affordable housing
units developed as a condominium or cooperative shall specify that
all condominium and homeowner association fees for affordable housing
units shall be assessed at 100% of the rate for market-priced units.
There shall be no age restrictions upon the
occupants of affordable housing, except for publicly subsidized senior
citizen housing.
The price of an owner-occupied affordable housing
unit and the rents of affordable housing units may be increased annually
based on the annual percentage increase in the median household income.
The Municipal Housing Officer shall be appointed
by the Mayor and shall serve as staff to the Affordable Housing Board.
The Municipal Housing Officer may be a municipal employee or the Borough
may enter into an agreement with a nonprofit organization, governmental
agency, consultant or private entity to assist the Board in the performance
of its duties.
Affordable housing units shall be available
to all income-eligible households, without any preference for place
of residence or work.
The developer shall submit to the Planning Board
and the Affordable Housing Board a developer's affordable housing
plan that demonstrates compliance with the affordable housing requirements
of this article, including the affirmative marketing, purchaser and
tenant selection procedures and controls on affordability.
Rental affordable housing units may be converted
to condominium or cooperative units for sale after 10 years, but the
prices of the converted units shall be established following the pricing
procedures and standards of this article. Low-income rental units
shall be converted to low-income sales units; moderate-income rental
units may be converted to low-income or moderate-income sales units.
Resale restrictions shall apply for at least a total of 25 years from
the issuance of the certificate of occupancy of the unit or the date
of closing and transfer of title for initial ownership of the unit,
whichever is later.
Designated affordable housing units purchased
by low- and moderate-income households may not be rented without the
prior written permission of the Board. Such affordable housing units
may only be rented to eligible low or moderate-income household tenants
selected and recommended by the Board.
[Added 10-3-2006 by Ord. No. 06:16]
A. Purpose. The purpose of this section is to create
the administrative mechanisms needed for the execution of Norwood's
responsibility to assist in the provision of affordable housing pursuant
to the Fair Housing Act of 1985.
B. Definitions. As used in this section, the following
terms shall have the meanings indicated:
ADMINISTRATIVE AGENT
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Borough to ensure that the restricted units under administration
are affirmatively marketed and sold or rented, as applicable, only
to low- and moderate-income households.
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Borough.
C. Establishment of Municipal Housing Liaison position
and compensation; powers and duties.
(1)
There is hereby established the position of
Municipal Housing Liaison for the Borough.
(2)
Subject to the approval of the Council on Affordable
Housing (COAH), the Municipal Housing Liaison shall be appointed by
the Mayor and Council and may be a full- or part-time municipal employee.
(3)
The Municipal Housing Liaison shall be responsible
for oversight and administration of the affordable housing program
for the Borough, including the following responsibilities which may
not be contracted out:
(a)
Serving as the Borough's primary point of contact
for all inquiries from the state, affordable housing providers, administrative
agents, and interested households;
(b)
Monitoring the status of all restricted units
in Borough's Fair Share Plan;
(c)
Compiling, verifying, and submitting annual
reports as required by COAH;
(d)
Coordinating meetings with affordable housing
providers and administrative agents, as applicable;
(e)
Attending continuing education opportunities
on affordability controls, compliance monitoring, and affirmative
marketing as offered or approved by COAH;
(f)
If applicable, serving as the administrative agent for some or all of the restricted units in the Borough as described in Subsection
C(6) below.
(4)
Subject to approval by COAH, the Borough may
contract with or authorize a consultant, authority, government or
any agency charged by the Mayor and Council, which entity shall have
the responsibility of administering the affordable housing program
of the Borough. If the Borough contracts with another entity to administer
all or any part of the affordable housing program, including the affordability
controls and Affirmative Marketing Plan, the Municipal Housing Liaison
shall supervise the contracting administrative agent.
(5)
Compensation. Compensation shall be fixed by
the Mayor and Council at the time of the appointment of the Municipal
Housing Liaison.
(6)
Administrative powers and duties assigned to
the Municipal Housing Liaison.
(a)
Affirmative marketing.
[1]
Conducting an outreach process to ensure affirmative
marketing of affordable housing units in accordance with the Affirmative
Marketing Plan of the Borough and the provisions of N.J.A.C. 5:80-26.15;
and
[2]
Providing counseling or contracting to provide
counseling services to low- and moderate-income applicants on subjects
such as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
(b)
Household certification.
[1]
Soliciting, scheduling, conducting and following
up on interviews with interested households;
[2]
Conducting interviews and obtaining sufficient
documentation of gross income and assets upon which to base a determination
of income eligibility for a low- or moderate-income unit;
[3]
Providing written notification to each applicant
as to the determination of eligibility or noneligibility;
[4]
Requiring that all certified applicants for
restricted units execute a certificate substantially in the form,
as applicable, of either the ownership or rental certificates set
forth in Appendices J and K of N.J.A.C. 5:80-26.1 et seq.;
[5]
Creating and maintaining a referral list of
eligible applicant households living in the housing region and eligible
applicant households with members working in the housing region where
the units are located; and
[6]
Employing the random selection process as provided
in the Affirmative Marketing Plan of the Borough when referring households
for certification to affordable units.
(c)
Affordability controls.
[1]
Furnishing to attorneys or closing agents forms
of deed restrictions and mortgages for recording at the time of conveyance
of title of each restricted unit;
[2]
Creating and maintaining a file on each restricted
unit for its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
[3]
Ensuring that the removal of the deed restrictions
and cancellation of the mortgage note are effectuated and properly
filed with the appropriate county's register of deeds or county clerk's
office after the termination of the affordability controls for each
restricted unit;
[4]
Communicating with lenders regarding foreclosures;
and
[5]
Ensuring the issuance of continuing certificates
of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(d)
Resale and rental.
[1]
Instituting and maintaining an effective means
of communicating information between owners and the administrative
agent regarding the availability of restricted units for resale or
rental; and
[2]
Instituting and maintaining an effective means
of communicating information to low- and moderate-income households
regarding the availability of restricted units for resale or re-rental.
(e)
Processing requests from unit owners.
[1]
Reviewing and approving requests from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership;
[2]
Reviewing and approving requests to increase
sales prices from owners of restricted units who wish to make capital
improvements to the units that would affect the selling price, such
authorizations to be limited to those improvements resulting in additional
bedrooms or bathrooms and the cost of central air-conditioning systems;
and
[3]
Processing requests and making determinations
on requests by owners of restricted units for hardship waivers.
(f)
Enforcement.
[1]
Securing annually lists 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]
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made;
[4]
Sending annual mailings to all owners of affordable
dwelling units, reminding them of the notices and requirements outlined
in N.J.A.C. 5:80-26.18(d)4;
[5]
Establishing a program for diverting unlawful
rent payments to the municipality's affordable housing trust fund
or other appropriate municipal fund approved by the DCA;
[6]
Establishing a rent-to-equity program;
[7]
Creating and publishing a written operating
manual, as approved by COAH, setting forth procedures for administering
such affordability controls; and
[8]
Providing annual reports to COAH as required.
(g)
The administrative agent shall have authority
to take all actions necessary and appropriate to carry out its responsibilities
hereunder.
[Added 8-11-2021 by Ord. No. 21:04]
A. Except as otherwise regulated in this article, any multifamily residential
development or redevelopment application in any zoning district proposing
five or more new dwelling units will be required, in the case of for-sale
projects, to set aside 20% of these units for affordable housing,
and in the case of rental projects, to set aside 15% of these units
for affordable to low- and moderate-income households.
B. This requirement applies to all new multifamily residential developments
of five or more units that become permissible through either a use
variance, a density variance increasing the permissible density at
the site, a rezoning permitting multifamily residential housing where
not previously permitted, or new a development plan.
C. This requirement does not apply to residential expansions, additions,
renovations, replacements, or any other type of residential development
that does not result in a net increase of five or more in the number
of dwellings.
D. This requirement does not give any developer the right to any rezoning,
variance, or other relief, or establish any obligation on the part
of the Borough to grant any rezoning, variance, or other relief. Property
may not be permitted to be subdivided so as to avoid compliance with
the requirements of this section.
E. All affordable housing units built as required by this section will
comply with the requirements of the Norwood Code relating to affordable
housing and the Uniform Housing Affordability Controls, (N.J.A.C.
5:80-26.1 et seq.).