Borough of Clayton, NJ Affordable Housing Requirements

The Borough of Clayton's rehabilitation program shall be designed to renovate deficient housing units occupied by very-low-income households, low-income households and/or moderate-income households such that, after rehabilitation, these units will comply with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.

Rehabilitation of units will result from the Borough of Clayton's continued participation in the home rehabilitation program administered by the Division of Housing and Community Development within the Gloucester County Department of Economic Development, located at 115 Budd Boulevard, West Deptford, New Jersey 08096. This community development block grant (CDBG) funded program provides funds for the rehabilitation and/or replacement of major systems for income-eligible families. Acceptance of the funds results in the placement of a lien which is to be satisfied on the death of the property owner or on the occasion of transfer of title.

Both owner-occupied and renter-occupied units shall be eligible for rehabilitation funds. The Gloucester County sponsored home rehabilitation program does not provide for the rehabilitation of rental units. To accomplish the rehabilitation of rental units, the Borough of Clayton commits to the expansion of its rehabilitation activity through the establishment of a program specifically addressing the rehabilitation of rental units, such that, after rehabilitation, these units will comply with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.

All rehabilitated units shall remain affordable to very-low-income households, low-income households and/or moderate-income households for a period of 10 years (the control period). For owner-occupied units, the control period will be enforced with a lien, and for renter-occupied units, the control period will be enforced with a deed restriction.

The Borough of Clayton shall dedicate a minimum of $10,000 for each unit to be rehabilitated through this program, reflecting the minimum hard cost of rehabilitation for each unit.

The Borough Council of the Borough of Clayton shall adopt a resolution committing to fund any shortfall in the rehabilitation programs for the Borough of Clayton.

The Borough of Clayton shall designate one or more administrative agents to administer the rehabilitation program in accordance with the Fair Housing Act and its implementing regulations. The administrative agent(s) shall provide a rehabilitation manual for the owner-occupancy rehabilitation program and a rehabilitation manual for the rental-occupancy rehabilitation program to be adopted by resolution of the governing body and consistent with all applicable requirements of the Fair Housing Act and its implementing regulations. Both rehabilitation manuals shall be available for public inspection in the office of the Municipal Clerk and in the office(s) of the administrative agent(s).

(8)

Units in a rehabilitation program shall be exempt from UHAC but shall be administered in accordance with the following:

If a unit is vacant, upon initial rental subsequent to rehabilitation, or if a renter-occupied unit is rerented prior to the end of controls on affordability, the deed restriction shall require the unit to be rented to a low- or moderate-income household at an affordable rent and affirmatively marketed pursuant to UHAC and the Borough of Clayton's affirmative marketing plan.

If a unit is renter-occupied, upon completion of the rehabilitation, the maximum rate of rent shall be the lesser of the current rent or the maximum permitted rent pursuant to UHAC.

Rents in rehabilitated units may increase annually based on the standards in UHAC.

Applicant and/or tenant households shall be certified as income eligible in accordance with UHAC, except that households in owner-occupied units shall be exempt from the regional asset limit.

(9)

All rehabilitated units shall be improved to the standards set forth in the State Uniform Construction Code.

Municipally sponsored and 100% affordable development program.

Under a municipally sponsored and 100% affordable development program, the Borough of Clayton will serve either as the primary sponsor or enter into a partnership with a nonprofit or other housing provider to facilitate the construction of developments in which all units are available to very-low-income households, low-income households and moderate-income households.

The following provisions shall apply to municipally sponsored and 100% affordable developments:

All sites shall meet the site suitability criteria set forth in the Fair Housing Act and its implementing regulations.

The Borough of Clayton or developer/sponsor shall have control or the ability to control the site(s).

The construction schedule shall provide for construction to begin within two years of substantive certification or in accordance with the Borough of Clayton's implementation schedule pursuant to the Fair Housing Act and its implementing regulations.

The first floor of all townhouse dwelling units and of all other multistory dwelling units must be adaptable and comply with the Fair Housing Act and its implementing regulations.

The units shall comply with UHAC.

Within each municipally sponsored and 100% affordable development, all of the affordable housing units shall be divided equally between low-income households and moderate-income households and a minimum of 13% of the all affordable housing units shall be affordable to households earning no more than 30% of the median gross income for households of the same size within Housing Region 5.

Supportive and special needs housing program.

A supportive and special needs housing program is established to promote opportunity for housing which includes, but is not limited to, residential health care facilities as licensed and/or regulated by DCA or the New Jersey Department of Health if the facility is located with, and operated by, a licensed health care facility; group homes for people with developmental disabilities and mental illness as licensed and/or regulated by the New Jersey Department of Human Services; permanent supportive housing; and supportive shared-living housing.

The following provisions shall apply to group homes, residential health care facilities, supportive shared-living housing, and permanent supportive housing:

Occupancy shall not be restricted to youth under 18 years of age.

All sites shall meet the site suitability criteria set forth in the Fair Housing Act and its implementing regulations.

The municipality or developer/sponsor shall have site control or the ability to control the site(s).

The bedrooms and/or units shall comply with UHAC with the following exceptions:

[1]

Affirmative marketing (N.J.A.C. 5:80-26.15); however, group homes, residential health care facilities, permanent supportive housing and supportive shared-living housing shall be affirmatively marketed to individuals with special needs in accordance with a plan that is consistent with all applicable requirements of the Fair Housing Act and its implementing regulations;

[2]

Affordability average and bedroom distribution as set forth in UHAC; and

[3]

With the exception of units established with capital funding through a twenty-year operating contact with the Department of Human Services, Division of Developmental Disabilities, group homes, residential health care facilities, supportive shared-living housing and permanent supportive housing shall have the appropriate controls on affordability in accordance with the Fair Housing Act and its implementing regulations.

Sites zoned in previously adopted plans.

Site(s) in a previously certified fair share plan or judgment of compliance shall retain such zoning in any future round fair share plan, provided that the sites are approved by the Court for inclusion in the future round in a judgment of compliance or:

DCA acting on behalf of COAH determines that the site continues to present a realistic opportunity pursuant to Subsection D(2) below; and

The site was subject to an agreement pursuant to COAH's mediation process or part of a negotiated settlement in court; or, in the alternative, the developer of the site has filed a development application with the municipality prior to the expiration of the second-round substantive certification period or the municipal petition for substantive certification for the 1999 through 2018 period, whichever is later.

A zoned but unbuilt site that was included in a Housing Element and Fair Share Plan that received prior-round substantive certification or a judgment of compliance shall be evaluated at the time the municipality petitions for the third round to determine if the site continues to present a realistic opportunity for the construction of affordable housing. Where a judgment of compliance is sought, a zoned but unbuilt site that was included in a Housing Element and Fair Share Plan that received prior-round substantive certification or a judgment of compliance shall be evaluated by a court of competent jurisdiction at the time that the judgment of compliance is sought to determine if the site continues to present a realistic opportunity for the construction of affordable housing.

Conversions. Affordable housing units created through the conversion of a nonresidential structure into a residential structure shall be treated as new construction, subject to the requirements set forth in § 31A-10 and will be subject to the thirty-year controls on affordability as set forth in a deed restriction.

§ 31A-10 New construction.

The following general guidelines apply to all newly constructed affordable housing developments and newly constructed affordable housing units, including any currently unanticipated future developments that will provide very-low-income units, low-income units and moderate-income units.

Low/moderate split and bedroom distribution of affordable housing units.

The fair share obligation shall be divided equally between low-income units 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.

In each affordable housing development, at least 50% of the affordable housing units within each bedroom distribution shall be low-income units.

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

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

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

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

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

Affordable housing developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted very-low-income households, low-income households and moderate-income households within the inclusionary development. The standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit.

Affordable housing developments which were constructed pursuant to low-income tax credit regulations shall be exempt from the requirements set forth in § 31A-10A above, provided they otherwise comply with the low-income tax credit regulations.

Accessibility requirements.

The first floor of all townhouse dwelling units within an affordable housing development and all restricted units in all other multistory buildings shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.

All townhouse dwelling units within an affordable housing development and all restricted units in other multistory buildings in which a restricted unit is attached to at least one other dwelling unit shall have the following features:

An adaptable toilet and bathing facility on the first floor;

An adaptable kitchen on the first floor;

An interior accessible route of travel on the first floor;

An interior accessible route of travel shall not be required between stories within an individual unit;

(e)

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

(f)

An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.), and the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that the Borough of Clayton 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 Clayton's 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 Clayton for the sole purpose of making the adaptable entrance of any 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 for the conversion from adaptable to accessible entrances to the Construction Official of the Borough of Clayton.

[5]

Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meets the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to the Borough of Clayton's Affordable Housing Trust Fund in care of the Municipal Treasurer, who shall ensure that the funds are deposited into the Affordable Housing Trust Fund and appropriately earmarked.

[6]

Full compliance with the foregoing provisions shall not be required where an entity can demonstrate that it is site impracticable to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.

Maximum rents and sales prices.

In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC and this Chapter 31A, utilizing the regional income limits established by DCA acting on behalf of COAH, or by HUD where no regional income limits have been established by DCA. In such a case, median income by household size will be established by a regional weighted average of the uncapped Section 8 income limits published by HUD. Where approved by way of a court order, the administrative agent may utilize the regional income limits prepared by Affordable Housing Professionals of New Jersey.

The maximum rent for rental affordable housing units within each development shall be affordable to households earning no more than 60% of median income, and the average rent for all affordable housing units shall be affordable to households earning no more than 52% of median income. Gross rents, including an allowance for utilities, shall be established so as not to exceed 30% of the gross monthly income of the appropriate household size.

The administrative agent of rental affordable housing units shall establish at least one rent for each bedroom type for very-low-income units, low-income units and moderate-income units.

Pursuant to N.J.S.A. 52:27D-329.1, at least 13% of all affordable housing units provided in a development across bedroom distribution shall be affordable to households earning no more than 30% of the median gross income for households of the same size within Housing Region 5. Within each municipally sponsored and 100% affordable housing development, a minimum of 13% of the units provided shall be so restricted. The very-low-income units shall be counted as part of the required number of low-income units within the development.

The maximum sales price of for-sale affordable housing units within each affordable housing development shall be affordable to households earning no more than 70% of median income, and each affordable housing development must achieve an affordability average of 55% for the for-sale affordable housing units; in achieving this affordability average, for-sale moderate-income units must be available for at least three different prices for each bedroom type, and for-sale low-income units must be available for at least two different prices for each bedroom type.

In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units other than assisted-living facilities, the following standards shall be used:

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

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

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

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

(e)

A four-bedroom unit shall be affordable to a six-person household.

In determining the initial rents for compliance with the affordability average requirements for restricted units in assisted-living facilities, the following standards shall be used:

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

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

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

(8)

The initial purchase price for all for-sale affordable units shall be calculated so that the monthly carrying cost of the unit, including principal and interest (based on a mortgage loan equal to 95% of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or 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.

(9)

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 household size as determined under N.J.A.C. 5:80- 26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(10)

The price of owner-occupied affordable housing 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.

(11)

The rent of affordable housing 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.

(12)

Utilities. For both for-sale affordable housing units and rental affordable housing units, the affordable housing units shall utilize the same heating source as the market-rate units within the development. 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 DCA for its Section 8 program.

Affordable housing units will be built in accordance with the following schedule:

Minimum Percentage of Affordable Housing Units Completed	Percentage of Market Rate Units Completed
0%	25%
10%	25% + 1 unit
50%	50%
75%	75%
100%	90%

Upon request from the developer, the Borough of Clayton will eliminate cost-generating features from Clayton's land use ordinances that are not essential to the public welfare in accordance with Section 14(b) of the Fair Housing Act. Upon request from the developer, the Borough of Clayton will also expedite or fast-track municipal approvals/denials on affordable housing development applications.

Prior to or simultaneously with the submission of any application for development, as the term is defined in N.J.S.A. 40:55D-3, or any application for a zoning permit, for any affordable housing development or any development in which affordable housing units are proposed, the developer shall submit to the Municipal Housing Liaison notice of the application along with information advising of the number of affordable housing units proposed to be created as part of the development.

In inclusionary developments, to the extent possible, low- and moderate-income units shall be integrated with the market-rate units. In inclusionary developments, low- and moderate-income units shall have access to all of the same common elements and facilities as the market-rate units.

§ 31A-11 Affirmative marketing requirements.

All affordable housing units shall be affirmatively marketed in accordance with the following requirements:

The Borough of Clayton has adopted by resolution an affirmative marketing plan compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented, and the Fair Housing Act and its implementing regulations.

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 also 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 all marketing activities toward Housing Region five and covers the period of deed restriction.

The affirmative marketing plan shall provide a regional preference for all households that live and/or work in Housing Region 5.

The administrative agent shall assure the, affirmative marketing of all affordable housing units consistent with the affirmative marketing plan for the municipality. In addition to other affirmative marketing strategies, the administrative agent shall provide specific notice of the availability of affordable housing units in Clayton to the following entities: Fair Share Housing Center, Gloucester County NAACP, Latino Action Network, and New Jersey Housing Resource Center. The administrative agent shall maintain all records of affirmative marketing actions, including all records and information required to comply with the monitoring and reporting requirements contained in the regulations adopted by the DCA or in any judgment of compliance, and shall make said records available to the Municipal Housing Liaison upon request. Advertisements for affordable housing units shall include, at a minimum, a description of the following:

Street address of the affordable housing units;

Direction to the affordable housing units;

Number of bedrooms per affordable housing unit;

Range of prices/rents;

Size of units;

Income information; and

Location of applications, including business hours and where/how applications can be obtained.

In implementing the affirmative marketing plan, the administrative agent shall provide a list of counseling services to applicants for an affordable housing unit on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law. Applications shall be mailed to prospective applicants upon request.

The affirmative marketing process for available affordable housing units shall begin at least four months prior to the expected date of occupancy. In no event shall there be any discrimination in the sale, rental, financing or other services related to housing on the basis of race, creed, color, national origin, ancestry, marital or familial status, gender, religion, affectional or sexual orientation, disability, age or familial size or number of children.

The costs of advertising and affirmative marketing of the affordable housing units shall be the responsibility of the developer, sponsor or owner, unless otherwise determined or agreed to by the Borough of Clayton.

Households who live or work in Burlington, Camden, and Gloucester Counties may be given preference for the for-sales and rental affordable housing units constructed within the housing region. Applicants living outside Housing Region 5 shall have an equal opportunity for the units after regional applicants have been initially serviced.

§ 31A-12 Occupancy standards.

All affordable housing units shall comply with the following:

In referring certified households to specific affordable housing units, to the extent feasible, and without causing an undue delay in occupying the unit, the administrative agent shall strive to:

Provide an occupant for each bedroom;

Provide children of different sex with separate bedrooms; and

Prevent more than two persons from occupying a single bedroom.

Additional provisions related to occupancy standards (if any) shall be provided in the municipal operating manual.

A certificate of reoccupancy shall be required prior to the occupancy of any affordable housing unit resulting from a resale.

§ 31A-13 Control periods for for-sale units and enforcement mechanisms.

All affordable housing units which are for-sale units shall comply with the following:

Control periods for for-sale affordable housing units shall be in accordance with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each for-sale affordable housing unit shall remain subject to the requirements of this chapter until the Borough of Clayton elects to release the unit from such requirements; however, and prior to such an election, a for-sale affordable housing unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.

The affordability control period for a for-sale affordable housing unit shall commence on the date the initial certified household takes title to the unit.

Prior to the issuance of the initial certificate of occupancy for a for-sale affordable housing 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 if it were a market-rate unit based on either an appraisal or the unit's equalized assessed value, subject to the approval of the Municipal Housing Liaison.

At the time of the first sale of a for-sale affordable housing unit, the 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 requirements of this chapter, an amount equal to the difference between the unit's nonrestricted fair market value if it were a market-rate unit and its restricted price, and the recapture note shall be secured by a recapture lien evidenced by a duly recorded mortgage on the unit.

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 for-sale affordable housing units.

A for-sale affordable housing unit shall be required to obtain a continuing certificate of occupancy or a certified statement from the Construction Official stating that the unit meets all code standards upon the first transfer of title that follows the expiration of the applicable minimum control period provided under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.

§ 31A-14 Price restrictions for for-sale units; homeowners' association fees; resale prices.

Price restrictions for for-sale affordable housing units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, including:

The initial purchase price for a for-sale affordable housing unit shall be set by the administrative agent and approved by the Municipal Housing Liaison.

The administrative agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards. All resale prices shall be approved by the Municipal Housing Liaison.

Master deeds of affordable housing developments will regulate condominium or homeowners' association fees or special assessments for affordable housing units at a rate equal to at least 33% but no more than 50% of those paid by market-rate units. Once established within the master deed, the percentages shall not be amended without prior approval from DCA acting on behalf of COAH or a court of competent jurisdiction. The method used to determine the condominium association fee amounts and special assessments shall be indistinguishable between the affordable housing unit owners and the market-unit owners.

The owners of for-sale affordable housing units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. The administrative agent shall make the initial determination as to the eligibility of maximum sale price increases, provided that all maximum sale price increases shall be approved by the Municipal Housing Liaison.

§ 31A-15 Buyer income eligibility.

Buyer income eligibility for for-sale affordable housing units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such that very-low-income units shall be reserved for households with a gross household income of less than or equal to 30% of median income, low-income units shall be reserved for households with a gross household income less than or equal to 50% of median income and moderate-income units shall be reserved for households with a gross household income less than 80% of median income.

The administrative agent shall certify a household as eligible for a for-sale affordable housing unit when the household is a very-low-income household, a low-income household or a moderate-income household, as applicable to the unit, and the estimated monthly housing cost for the particular unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowners' association fees, as applicable) does not exceed 33% of the household's certified monthly income.

§ 31A-16 Limitations on indebtedness secured by a for-sale unit; subordination.

Prior to incurring any indebtedness to be secured by a for-sale affordable housing unit, the administrative agent shall determine, in writing, that the proposed indebtedness complies with the provisions of this section.

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 for-sale affordable housing unit to exceed 95% of the maximum allowable resale price of that unit, as such price is determined by the administrative agent in accordance with N.J.A.C. 5:80-26.6(b).

§ 31A-17 Control periods for rental units.

All affordable housing units which are rental units shall comply with the following:

Control periods for rental affordable housing units shall be in accordance with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and each rental affordable housing unit shall remain subject to the requirements of this chapter until the Borough of Clayton elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and, prior to such an election, a rental affordable housing unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.

Deeds of all real property that include rental affordable housing 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. A copy of the filed document shall be provided to the administrative agent and the Municipal Housing Liaison within 30 days of the receipt of a certificate of occupancy.

A rental affordable housing unit shall remain subject to the affordability controls of this chapter, despite the occurrence of any of the following events:

Sublease or assignment of the lease of the unit;

Sale or other voluntary transfer of the ownership of the unit; or

The entry and enforcement of any judgment of foreclosure.

§ 31A-18 Price restrictions for rental units; leases.

All affordable housing units which are rental units shall comply with the following:

A written lease shall be required for all rental affordable housing units, except for units in assisted-living facilities, 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 rental affordable housing unit shall be provided to the administrative agent and the Municipal Housing Liaison.

No additional fees or charges shall be added to the approved rent (except, in the case of units in assisted-living facilities, to cover the customary charges for food and services) without the express written approval of the administrative agent and the municipal housing liaison.

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 rental affordable housing unit as set forth in this chapter.

§ 31A-19 Tenant income eligibility.

Tenant income eligibility for rental affordable housing units 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:

Very-low-income units shall be reserved for households with a gross household income less than or equal to 30% of median income.

Low-income units shall be reserved for households with a gross household income less than or equal to 50% of median income.

Moderate-income units shall be reserved for households with a gross household income less than 80% of median income.

The administrative agent shall certify a household as eligible for a rental affordable housing 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:

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;

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;

The household is currently in substandard or overcrowded living conditions;

The household documents the existence of assets with which the household proposes to supplement the rent payments; or

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.

The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsection B(1) through (5) above with the administrative agent, who shall counsel the household on budgeting.

§ 31A-20 Administration.

The position of Municipal Housing Liaison for the Borough of Clayton is established by this chapter. The Borough Council of the Borough of Clayton shall make the actual appointment of the Municipal Housing Liaison by means of a resolution.

The Borough Administrator of the Borough of Clayton is designated the Municipal Housing Liaison. Compensation, if any, will be fixed by the governing body at the time of the appointment of the Municipal Housing Liaison.

The Borough Administrator serving as the Municipal Housing Liaison must be reported to DCA.

The Municipal Housing Liaison must meet all DCA requirements for qualifications, including initial and periodic training.

The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Clayton, including the following responsibilities which may not be contracted out to the administrative agent:

Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;

The implementation of the affirmative marketing plan and affordability controls;

When applicable, supervising any contracting administrative agent;

Monitoring the status of all restricted units in the Borough of Clayton's Fair Share Plan;

(e)

Compiling, verifying and submitting annual reports as required by DCA acting on behalf of COAH;

(f)

Coordinating meetings with affordable housing providers and administrative agents, as applicable;

(g)

Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by DCA acting on behalf of COAH; and

(h)

Enforcement of this Chapter 31A.

The Municipal Housing Liaison shall have the authority to take all actions necessary and appropriate to carry out his/her responsibilities under this Chapter 31A.

The Borough of Clayton may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing programs of the Borough of Clayton. If the Borough of Clayton contracts with another entity to administer all or part of the affordable housing program, including the affordability controls and affirmative marketing plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.

The Borough of Clayton shall designate, by resolution of the Borough Council of the Borough of Clayton, one or more administrative agents to administer newly constructed affordable units in accordance with this Chapter 31A and UHAC; further, providing, at the election of the Borough of Clayton, designation of a project-specific administrative agent shall be the responsibility of the sponsor, owner or developer/redeveloper. The Municipal Housing Liaison shall notify the sponsor, owner or developer/redeveloper of his/her/its obligation to provide a project-specific administrative agent.

An operating manual shall be provided by the administrative agent(s) to be adopted by resolution of the governing body in accordance with the regulations adopted by DCA. The operating manual shall be available for public inspection in the office of the Municipal Clerk and in the office(s) of the administrative agent(s).

The administrative agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC and which are described in full detail in the operating manual, including those set forth in N.J.A.C. 5:80-26.14, 5:80-24.16 and 5:80-24.18 thereof, which includes:

Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by DCA acting on behalf of COAH;

Affirmative marketing;

Household certification;

Affordability controls;

Records retention;

Resale and rerental;

Processing requests from unit owners; and

(8)

Enforcement, though the ultimate responsibility for retaining controls on the units rests with the municipality.

The administrative agent shall have authority to take all actions necessary and appropriate to carry out his/her responsibilities hereunder.

§ 31A-21 Enforcement of affordable housing regulations.

Upon the occurrence of a breach of this Chapter 31A or any of the regulations governing the affordable housing unit by an administrative agent, owner, sponsor, 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 violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.

After providing written notice of a violation to an administrative agent, owner, sponsor, developer or tenant of an affordable housing unit and advising the administrative agent, owner, sponsor, developer or tenant of the penalties for such violations, the municipality may take the following action against the administrative agent, owner, sponsor, developer or tenant for any violation that remains uncured for a period of 60 days after service of the written notice:

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 administrative agent, owner, sponsor, developer or tenant is found by the court to have violated any provision of the regulations governing affordable housing units, the administrative agent, owner, sponsor, developer or tenant shall be subject to one or more of the following penalties, at the discretion of the court:

The penalty provided in Chapter 1, General Provisions, Article I, Enforcement; General Penalty, § 1-2, Maximum penalty.

In the case of an owner who has rented his or her affordable housing unit in violation of the regulations governing affordable housing units, payment into the Borough of Clayton Affordable Housing Trust Fund of the gross amount of rent illegally collected.

In the case of an owner who has rented his or her affordable housing unit in violation of the regulations governing affordable housing units, payment of an innocent tenant's reasonable relocation costs, as determined by the court.