[Added 5-11-2021 by Ord. No. 2021-06[1]]
[1]
Editor's Note: This ordinance superseded former Art. VII,
Affordable Housing, adopted 4-23-1996 by Ord. No. 96-6, as amended in its entirety 12-18-2002 by Ord. No. 2002-51, and further amended 4-11-2006 by Ord. No. 2006-07; 12-19-2006 by Ord. No. 2006-51; and 12-19-2006 by Ord. No. 2006-52.
The Township of Hillsborough 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, 2020, and on every anniversary of that date
through July 1, 2025, the Township shall provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or New Jersey
Division of 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 New Jersey Division
of 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, 2020, and on every anniversary of that date
through July 1, 2025, the Township 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, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Township will endeavor to post on its municipal website, with a copy
provided to FSHC (see below), 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. However, the settlement agreement between
the Township and FSHC shall serve as the main response to this requirement.
D.
By July 1, 2020, and every third year thereafter, as required by
N.J.S.A. 52:27D-329.1, the Township 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 article 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.
The entity designated by the Township to administer affordable
units in accordance with this article, 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 Township'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. 55:14K-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, low-income, 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.
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 settlement agreement, dated April 14, 2020, between the
Township of Hillsborough and Fair Share Housing Center dated in IMO
Township of Hillsborough, Docket No. SOM-L-000900-15.
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.
A.
The provisions of this article shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Hillsborough
pursuant to the Township's most recently adopted Housing Element and
Fair Share Plan and the settlement agreement.
B.
The Township's mandatory affordable housing set-aside ordinance shall
be applicable to all new multifamily residential developers of five
or more units (whether for sale or rental) and shall be at 20%. The
Township shall not be precluded from requiring higher set-asides where
the Township itself deems to be appropriate.
C.
This article 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 Township's obligation may be met with
age-restricted units. At least 1/2 of all affordable units in the
Township'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:
(1)
The first floor of all restricted townhouse dwelling units and
all restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7 and the following herein.
(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) above 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, or evidence that Hillsborough Township 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 Township of Hillsborough 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 Township of Hillsborough 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
Township of Hillsborough 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,
and that the cost estimate of such conversion is reasonable, payment
shall be made to the Township's Affordable Housing Trust Fund in care
of the Township Chief Financial Officer, who shall ensure that the
funds are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
(g)
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.
(3)
Design:
(a)
In inclusionary developments, to the fullest 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 Township 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 Township
annually within 30 calendar 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 Township 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 Township'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 Township 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 Township 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 (CPI-U),
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, 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.
(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 modified
by the terms of the settlement agreement between the Township of Hillsborough
and Fair Share Housing Center (FSHC), 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 article for a period of at least 30 years, until Hillsborough
Township 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, except as modified by the
terms of the settlement agreement between the Township of Hillsborough
and Fair Share Housing Center (FSHC), as said settlement agreement
may be further amended and supplemented.
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 article, 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 article 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. 5:80-26.6, 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 § 188-126.9.
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 Township Committee, 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, homeowner 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 section, 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 Township of Hillsborough
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 article for a period of at least 30 years, until Hillsborough
Township 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 Township of Hillsborough
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 Somerset. 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 calendar days of the receipt
of a certificate of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this article 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 article.
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 article.
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., except as modified
by the terms of the settlement agreement executed between the Township
of Hillsborough and Fair Share Housing Center (FSHC), as such settlement
agreement may be further amended and supplemented, and as modified
by other ordinances adopted by the Township. All such projects shall
be required to have an initial thirty-year affordability control period
plus a fifteen-year extended use period.
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 Hillsborough
Township, including the following responsibilities which may not be
contracted out to the Administrative Agent:
(1)
Serving as Hillsborough Township'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 Hillsborough
Township's Fair Share Plan;
(3)
Compiling, verifying, submitting and posting all monitoring
reports as required by the Court and by this article;
(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 Township of Hillsborough shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Township'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 Township's Affirmative Marketing Plan; fulfilling monitoring
and reporting requirements; and supervising Administrative Agent(s).
Hillsborough Township shall adopt a resolution appointing the person
to fulfill the position of Municipal Housing Liaison. The Municipal
Housing Liaison shall be appointed by the governing body and may be
a full- or part-time municipal employee.
C.
Subject to the approval of the Court, the Township of Hillsborough
shall designate one or more Administrative Agent(s) to administer
and to affirmatively market the affordable units constructed in the
Township in accordance with this article 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 governing body and subject
to approval of the Court. The operating manual(s) shall be available
for public inspection in the office of the Township 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, 26.15, 26.16 and 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 Township of Hillsborough 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 Township of Hillsborough when referring households
for certification to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Township of Hillsborough: 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 Somerset
County Register of Deeds or Somerset 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 article;
(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. 5:80-26.18(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 Township 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 Township 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 article.
(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 Township of Hillsborough 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 3 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 3, comprised
of Middlesex, Hunterdon and Somerset 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 Township of Hillsborough 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 Hillsborough Township, and copies of the application
forms, to the following entities: 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.
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 calendar
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 calendar 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 Township of Hillsborough 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 Township 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 Sheriff's 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 of 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 article shall be filed in writing with the Superior
Court of New Jersey, Law Division, Somerset County.
A.
Owner eligibility. Owners of houses within the Township of Hillsborough
are eligible for the technical and financial assistance made available
through the housing rehabilitation program, provided the following:
(1)
The owner must be a certified household or must agree to rent
the house to be rehabilitated to either a low-income household or
to a moderate-income household;
(2)
The unit proposed to be rehabilitated must be a substandard
housing unit as determined in writing by the Township Construction
Code Official upon inspection of the unit relative to the prevailing
standards of the BOCA National Existing Structures Code;
(3)
The proposed rehabilitation activity shall be limited to the
repair or replacement of a roof, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems) and/or a
load-bearing structural system; the rehabilitation activity shall
not include luxury improvements, the purchase of appliances or improvements
that are strictly cosmetic;
(4)
The proposed rehabilitation activity shall be deemed by the
Township Construction Code Official, in writing, to be sufficient
to remove the applicable existing health and safety code violation(s)
and bring the unit up to the standards of the BOCA National Existing
Structures Code; and
(5)
The owner must agree, in writing, to comply with all the applicable
requirements of this affordable housing article.
B.
Affordable housing document.
(1)
Each owner who receives financial assistance under the provisions
of the Hillsborough Township housing rehabilitation program shall
prepare and be bound by an affordable housing document in accordance
with this article.
(2)
The affordable housing document shall be the legal instrument
setting forth the terms, restrictions and provisions applicable to
the subject affordable unit and shall constitute the restrictive covenants
(lien) running with the land with respect to the subject affordable
unit.
(3)
The affordable housing document (lien) shall take effect as
soon as the affordable housing administrator has approved the application
and money has been made available for the rehabilitation activity.
The affordable housing document shall remain in effect for six years
in the case of an owner-occupied unit and 10 years in the case of
a rental unit; any sale of the unit shall not affect the lien.
(4)
Each owner who rents a unit to a low-income household or to
a moderate-income household shall agree to be bound by the provisions
governing the maximum rental charges for all affordable units specified
in this article, and by the provisions governing the maximum rerental
charges for all affordable units specified in this article, as applicable.
C.
Funding and funding phasing.
(1)
The Township of Hillsborough shall provide at least $10,000
per unit to be rehabilitated during the course of the rehabilitation
program. No more than $2,000 may be expended per unit for administrative
expenses, and an average of $8,000 shall be expended for the actual
rehabilitation activity.
(2)
The Township of Hillsborough shall provide sufficient dollars
to fund 1/3 of its rehabilitation component of affordable units within
one year of the date it receives a Judgement of Repose from the Superior
Court.
(3)
During each subsequent year, for a period of four additional
years, the Township of Hillsborough shall provide sufficient dollars
to fund 1/6 of its rehabilitation component of affordable units, provided
that:
(a)
No more than the dollars sufficient to fund 1/6 of the rehabilitation
component need be in the rehabilitation fund during each year subsequent
to the first year's funding; and
(b)
Any unused moneys from a prior year remaining in the rehabilitation
fund may be carried forth and credited towards the following year's
funding requirement.
D.
Application procedures.
(1)
Interested owners will be able to secure information and application
packets from the Township Clerk by visiting the Hillsborough Township
Municipal Building during the Township Clerk's regularly scheduled
office hours.
(2)
Interested owners shall submit a completed application to the
Administrative Agent as established by the Township.
(3)
The Administrative Agent shall review the application for completeness and, once an application is complete, determine whether the owner is eligible in accordance with the criteria set forth in Subsection A(1) of this section hereinabove.
(4)
Upon determination by the Administrative Agent that the owner
is eligible, the Township Construction Code Official shall inspect
the subject unit to determine whether it meets the definition of a
substandard housing unit under the provisions of this article and
whether or not the proposed description and cost of the work needed
to improve the unit will meet the parameters of the housing rehabilitation
program. The Construction Code Official's determination shall be submitted
in writing to the Administrative Agent.
(5)
If the Township Construction Code Official determines that the
unit meets the definition of a substandard housing unit, but recommends
an amended description and cost estimate of the work necessary to
rehabilitate the unit, the applicant will be asked to revise the application
to satisfactorily address the comments of the Construction Code Official.
(6)
If the Township Construction Code Official determines that the
unit meets the definition of a substandard housing unit and that the
agreed-upon work plan to rehabilitate the unit is satisfactory, the
Construction Code Official shall notify the Administrative Agent in
writing.
(7)
Once the Construction Code Official has notified the Administrative Agent in writing that the agreed-upon work plan to rehabilitate the unit is satisfactory, the Administrative Agent shall arrange for a low-interest loan in accordance with Subsection E of this section hereinbelow. The rehabilitation work may begin as soon as the applicant and the appropriate representative of the Administrative Agent have signed all necessary agreements.
(8)
During the course of the completion of the rehabilitation construction,
the Township Construction Code Official periodically shall inspect
the unit to make certain that the construction is proceeding satisfactorily
in accordance with the approved work plan.
(9)
After completion of the rehabilitation construction, the Township
Construction Code Official shall inspect the unit and, if the rehabilitation
construction has been completed satisfactorily, shall certify in writing
to the Administrative Agent that the rehabilitation work has been
completed in accordance with the approved work plan.
(10)
Should the Township Construction Code Official find upon inspection
that the rehabilitation work has not been completed in accordance
with the approved work plan, the Construction Code Official shall
so notify the Administrative Agent, which will determine a suitable
remedy.
E.
Low-interest loans. An eligible owner who has executed an affordable
housing document for the subject substandard housing unit shall receive
a low-interest loan from the Office of Social Services. The Administrative
Agent shall work with the applicant to establish a realistic loan
repayment schedule. If the applicant does not meet the established
loan repayment schedule, the Administrative Agent, on behalf of the
Township, shall collect the uncollected funds as well as the accumulated
interest at the time of the sale of the unit, and the Township shall
retain the right to increase the interest rates on delinquent loans.
(1)
Rental rehabilitation. The following terms shall apply to loans
made for the rehabilitation of a unit that is owned by a household
who does not qualify as a low- or moderate-income household, but who
has agreed to rent the unit to a low-income household or to a moderate-income
household:
(a)
The Administrative Agent will make a loan to the applicant for
the total amount of the cost of rehabilitation. Although the loan
will be made to the applicant, the proceeds of the loan will be paid
to the individual(s) or business(es) that sell the material and/or
labor for the project. Owners who contribute sweat equity will not
receive financial remuneration for their efforts;
(b)
The interest rate will be fixed at an annual rate of two points
below prime, or one point above the Township of Hillsborough's interest
rate on bonds sold for such purpose, whichever is less, at the time
the loan originates. The interest rate on bonds will be established
and made public at the time of the sale, and all prospective borrowers
will be notified in writing of the respective rates;
(c)
Payments on the loan principal will be deferred for a ten-year
period. Payments on interest will be made in equal monthly payments
during the ten-year period, or until the loan is paid in full if paid
before the end of the ten-year period;
(d)
Repayment of the loan principal and any interest due will become
payable in full at the end of 10 years, unless the owner elects to
continue the affordability controls on the affordable unit for an
appropriate period of time. No interest will be charged after the
10th year if the owner chooses to defer repayment of the loan principal
in exchange for extending the affordability controls on the affordable
unit;
(e)
Sixty days prior to the end of the loan's ten-year life, the
Administrative Agent shall submit a letter to the owner indicating
the date on which the loan principal and any interest due will become
payable, the specific date when the Administrative Agent expects payment,
and the circumstances under which the repayment of the loan principal
may continue to be deferred;
(f)
Repayment of the loan principal may be extended beyond the first
ten-year period, interest free, if and only if the owner agrees to
continue renting to a low- or moderate-income household, as the case
may be, and extend the affordable housing document controlling the
subject affordable unit. If the owner wants to take this option, he
or she shall notify the Administrative Agent in writing of his or
her intentions within 30 days of receipt of the notification from
the Administrative Agent that the loan principal will become due;
and
(g)
If an owner plans to continue affordability controls on the
subject unit, he or she must sign an agreement with the Administrative
Agent that the affordable housing document controlling the subject
affordable unit will be renewable annually, and that the owner must
demonstrate to the Administrative Agent at that time that the unit
continues to be occupied by a low-income household or a moderate-income
household, as the case may be.
(2)
Owner-occupied rehabilitation. The following terms shall apply
to loans made for the rehabilitation of a unit that is owner-occupied
by either a low-income household or a moderate-income household:
(a)
The Administrative Agent will make a loan to the applicant for
the total amount of the cost of rehabilitation. Although the loan
will be made to the applicant, the proceeds of the loan will be paid
to the individual(s) or business(es) that sell the material and/or
labor for the project. Owners who contribute sweat equity will not
receive financial remuneration for their efforts;
(b)
The interest rate will be fixed at an annual rate of two points
below prime, or one point above the Township of Hillsborough's interest
rate on bonds sold for such purpose, whichever is less, at the time
the loan originates. The interest rate on bonds will be established
and made public at the time of sale, and all prospective borrowers
will be notified in writing of the respective rates. The interest
on the loan shall be charged for a period of six years unless the
loan is repaid sooner;
(c)
Repayment of the loan will not be required until the sale of
the property at fair market value. At the time of such sale, the unpaid
principal plus the accrued interest shall be paid to the Township
of Hillsborough, except that no interest shall be charged beyond the
10th year of the loan; and
(d)
Payment of the principal and interest may be deferred beyond the initial sale of the property only if the property is sold to a certified household at a price approved by the Administrative Agent, which has been calculated in accordance with this article. The new certified household owner shall continue the affordable housing document controlling the unit and assume the lien on the property. Any subsequent sale of the unit at fair market value shall require the repayment of the loan principal and interest in accordance with Subsection E(2)(c) of this section hereinabove.
(3)
Priority for financial assistance. In the event that sufficient
funds are not available to provide low-interest loans to every eligible
owner, at least 50% of the available assistance shall be awarded to
applications that will result in low-income units in preference to
those that will result in moderate-income units.
F.
Rehabilitation marketing plan. The Administrative Agent shall be
responsible to prepare and execute a rehabilitation marketing plan,
which shall be approved by the Superior Court.
A.
In Holmdel Builders Association v. Holmdel Township, 121 N.J. 550
(1990), the New Jersey Supreme Court determined that mandatory development
fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et seq., and the State Constitution, subject to the adoption of rules
by the Council on Affordable Housing (COAH).
B.
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and
the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1
through 8.7), COAH was authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that were under the jurisdiction of
COAH and that are now before a court of competent jurisdiction and
have a court-approved spending plan may retain fees collected from
nonresidential development.
C.
This section establishes standards for the collection, maintenance,
and expenditure of development fees that are consistent with COAH's
regulations developed in response to P.L. 2008, c. 46, Sections 8
and 32 through 38 (N.J.S.A. 52:27D-329.2) and the Statewide Nonresidential
Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7). Fees collected
pursuant to this section shall be used for the sole purpose of providing
low- and moderate-income housing in accordance with a court-approved
spending plan.
The following terms, as used in this section, shall have the
following meanings:
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable housing development.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act.
The construction officer or his/her designee.
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Money paid by a developer for the improvement of property
as permitted at N.J.A.C. 5:97-8.3.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
The Township of Hillsborough.
A.
Imposition of fees.
(1)
Within the Township of Hillsborough, all residential developers,
except for developers of the types of developments specifically exempted
below and developers of developments that include affordable housing,
shall pay a fee of 1.5% of the equalized assessed value for all new
residential development, provided no increased density is permitted.
Development fees shall also be imposed and collected when an additional
dwelling unit is added to an existing residential structure; in such
cases, the fee shall be calculated based on the increase in the equalized
assessed value of the property due to the additional dwelling unit.
(2)
When an increase in residential density is permitted pursuant
to a "d" variance granted under N.J.S.A. 40:55D-70d(5), developers
shall be required to pay a "bonus" development fee of 6% of the equalized
assessed value for each additional unit that may be realized, except
that this provision shall not be applicable to a development that
will include affordable housing. If the zoning on a site has changed
during the two-year period preceding the filing of such a variance
application, the base density for the purposes of calculating the
bonus development fee shall be the highest density permitted by right
during the two-year period preceding the filing of the variance application.
(3)
Development fees shall be imposed and collected when an existing
structure undergoes a change to a more intense use, is demolished
and replaced, or is expanded, if the expansion is not otherwise exempt
from the development fee requirement. The development fee shall be
calculated on the increase in the equalized assessed value of the
improved structure.
B.
Eligible exactions, ineligible exactions and exemptions for residential
developments.
(1)
Affordable housing developments, developments where the developer
is providing for the construction of affordable units elsewhere in
the municipality, and developments where the developer has made a
payment in lieu of on-site construction of affordable units shall
be exempt from development fees.
(2)
Developments that have received preliminary or final site plan
approval prior to the adoption of a municipal development fee ordinance
shall be exempt from development fees, unless the developer seeks
a substantial change in the approval. Where a site plan approval does
not apply, a zoning and/or building permit shall be synonymous with
preliminary or final site plan approval for this purpose. The fee
percentage shall be vested on the date that the building permit is
issued.
(3)
Developers of educational facilities shall be exempt from paying
a development fee.
(4)
Developers of houses of worship and other uses that are entitled
to exemption from New Jersey real property tax shall be exempt from
the payment of a development fee, provided that such development does
not result in the construction of any additional housing or residential
units, including assisted living and continuing care retirement communities.
(5)
A development shall be exempt from an increase in the percentage
of the development fee, provided the building permit was issued prior
to the effective date of this article, or prior to any subsequent
ordinance increasing the fee percentage. The developer shall have
the right to pay the fee based on the percentage in effect on the
date the building permit was issued.
(6)
Any development or improvement to structures of owner-occupied
property in which there is located an affordable accessory residence.
This exemption shall only apply to development or improvements to
the property during the period of affordability controls.
(7)
The construction of a new accessory building or other structure
on the same lot as the principal building shall be exempt from the
imposition of development fees if the assessed value of the structure
is determined to be less than $100,000.
A.
Imposition of fees.
(1)
Within all zoning districts, nonresidential developers, except
for developers of the types of developments specifically exempted
below, shall pay a fee equal to 2.5% of the equalized assessed value
of the land and improvements for all new nonresidential construction
on an unimproved lot or lots.
(2)
Within all zoning districts, nonresidential developers, except
for developers of the types of developments specifically exempted
below, shall also pay a fee equal to 2.5% of the increase in equalized
assessed value resulting from any additions to existing structures
to be used for nonresidential purposes.
(3)
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvements and the equalized assessed
value of the newly improved structure, i.e., land and improvements,
and such calculation shall be made at the time a final certificate
of occupancy is issued. If the calculation required under this section
results in a negative number, the nonresidential development fee shall
be zero.
(4)
The nonresidential portion of a mixed-use inclusionary or market-rate
development shall be subject to the development fee of 2.5% unless
otherwise exempted below.
B.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development.
(1)
The 2.5% development fee shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within the
existing footprint, reconstruction, renovations and repairs.
(2)
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to the Statewide Nonresidential Development Fee
Act (N.J.S.A. 40:55D-8.1 through 8.7), as specified in Form-N-RDF,
State of New Jersey Nonresidential Development Fee Certification/Exemption.
Any exemption claimed by a developer shall be substantiated by that
developer.
(3)
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to the Statewide Nonresidential
Development Fee Act shall be subject to the fee at such time as the
basis for the exemption no longer applies, and shall make the payment
of the nonresidential development fee, in that event, within three
years after that event or after the issuance of the final certificate
of occupancy for the nonresidential development, whichever is later.
(4)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 calendar days of the termination of the property
tax exemption. Unpaid nonresidential development fees under these
circumstances may be enforceable by the Township of Hillsborough as
a lien against the real property of the owner.
(5)
Pursuant to P.L. 2009, c. 90 and P.L. 2011, c. 122, the nonresidential
statewide development fee of 2.5% for nonresidential development is
suspended for all nonresidential projects that received preliminary
or final site plan approval subsequent to July 17, 2008, until July
1, 2013, provided that a permit for the construction of the building
has been issued prior to January 1, 2015.
A.
Upon the granting of a preliminary, final or other applicable approval
for a development, the approving authority or entity shall notify
or direct its staff to notify the Construction Official responsible
for the issuance of a construction permit.
B.
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF, State of New Jersey Nonresidential
Development Fee Certification/Exemption, to be completed as per the
instructions provided. The developer of a nonresidential development
shall complete Form N-RDF as per the instructions provided. The Construction
Official shall verify the information submitted by the nonresidential
developer as per the instructions provided in the Form N-RDF. The
Tax Assessor shall verify exemptions and prepare estimated and final
assessments as per the instructions provided in Form N-RDF.
C.
The Construction Official responsible for the issuance of a construction
permit shall notify the Township Tax Assessor of the issuance of the
first construction permit for a development which is subject to a
development fee.
D.
Within 90 calendar days of receipt of such notification, the Township
Tax Assessor shall prepare an estimate of the equalized assessed value
of the development based on the plans filed.
E.
The Construction Official responsible for the issuance of a final
certificate of occupancy shall notify the Township Tax Assessor of
any and all requests for the scheduling of a final inspection on a
property which is subject to a development fee.
F.
Within 10 business days of a request for the scheduling of a final
inspection, the Township's Tax Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
associated with the development; calculate the development fee; and,
thereafter notify the developer of the amount of the fee.
G.
Should the Township of Hillsborough fail to determine or notify the
developer of the amount of the development fee within 10 business
days of the request for final inspection, the developer may estimate
the amount due and pay that estimated amount consistent with the dispute
process set forth in Subsection b. of Section 37 of P.L. 2008, c.
46 (N.J.S.A. 40:55D-8.6).
H.
Except as provided in hereinabove, 50% of the initially calculated
development fee shall be collected at the time of issuance of the
construction permit. The remaining portion shall be collected at the
time of issuance of the certificate of occupancy. The developer shall
be responsible for paying the difference between the fee calculated
at the time of issuance of the construction permit and that determined
at the time of issuance of the certificate of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge residential development fees imposed
by filing a challenge with the County Board of Taxation. Pending a
review and determination by the Board, collected fees shall be placed
in an interest-bearing escrow account by the Township of Hillsborough.
Appeals from a determination of the Board may be made to the Tax Court
in accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 calendar days after the date
of such determination. Interest earned on amounts escrowed shall be
credited to the prevailing party.
(2)
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 calendar days of receipt of the challenge, collected
fees shall be placed in an interest-bearing escrow account by the
Township of Hillsborough. Appeals from a determination of the Director
may be made to the Tax Court in accordance with the provisions of
the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within
90 calendar days after the date of such determination. Interest earned
on amounts escrowed shall be credited to the prevailing party.
A.
There is hereby created a separate, interest-bearing Affordable Housing
Trust Fund to be maintained by the Chief Financial Officer of the
Township of Hillsborough for the purpose of depositing development
fees collected from residential and nonresidential developers and
proceeds from the sale of units with extinguished controls.
B.
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(1)
Payments in lieu of on-site construction of a fraction of an
affordable unit, where permitted by ordinance or by agreement with
the Township of Hillsborough;
(2)
Funds contributed by developers to make 10% of the adaptable
entrances in a townhouse or other multistory attached dwelling unit
development accessible;
(3)
Rental income from municipally operated units;
(4)
Repayments from affordable housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of affordable units; and
(7)
Any other funds collected in connection with Hillsborough Township's
affordable housing program.
C.
In the event of a failure by the Township of Hillsborough to comply
with trust fund monitoring and reporting requirements or to submit
accurate monitoring reports; or a failure to comply with the conditions
of the judgment of compliance or a revocation of the judgment of compliance;
or a failure to implement the approved spending plan and to expend
funds within the applicable required time period as set forth in In
re Tp. of Monroe, 442 N.J. Super. 565 (Law Div. 2015); or the expenditure
of funds on activities not approved by the Court; or for other good
cause demonstrating the unapproved use(s) of funds, the Court may
authorize the State of New Jersey, Department of Community Affairs,
Division of Local Government Services (LGS), to direct the manner
in which the funds in the Affordable Housing Trust Fund shall be expended,
provided that all such funds shall, to the extent practicable, be
utilized for affordable housing programs within the Township of Hillsborough,
or, if not practicable, then within the County or the Housing Region.
Any party may bring a motion before the Superior Court presenting
evidence of such condition(s), and the Court may, after considering
the evidence and providing the municipality a reasonable opportunity
to respond and/or to remedy the noncompliant condition(s), and upon
a finding of continuing and deliberate noncompliance, determine to
authorize LGS to direct the expenditure of funds in the trust fund.
The Court may also impose such other remedies as may be reasonable
and appropriate to the circumstances.
D.
Interest accrued in the Affordable Housing Trust Fund shall only
be used to fund eligible affordable housing activities approved by
the Court.
A.
The expenditure of all funds shall conform to a spending plan approved
by the Court. Funds deposited in the Affordable Housing Trust Fund
may be used for any activity approved by the Court to address the
Township of Hillsborough's fair share obligation and may be set up
as a grant or revolving loan program. Such activities include, but
are not limited to: preservation or purchase of housing for the purpose
of maintaining or implementing affordability controls; housing rehabilitation;
new construction of affordable housing units and related costs; accessory
apartments; a market-to-affordable program; Regional Housing Partnership
programs; conversion of existing nonresidential buildings to create
new affordable units; green building strategies designed to be cost
saving and in accordance with accepted national or state standards;
purchase of land for affordable housing; improvement of land to be
used for affordable housing; extensions or improvements of roads and
infrastructure to affordable housing sites; financial assistance designed
to increase affordability; administration necessary for implementation
of the Housing Element and Fair Share Plan; and/or any other activity
permitted by the Court and specified in the approved spending plan.
B.
Funds shall not be expended to reimburse the Township of Hillsborough
for past housing activities.
C.
At least 30% of all development fees collected and interest earned
on such fees shall be used to provide affordability assistance to
low- and moderate-income households in affordable units included in
the municipal Fair Share Plan. One-third of the affordability assistance
portion of development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of the median income
for Housing Region 3, in which Hillsborough Township is located.
(1)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and special
assessments, and assistance with emergency repairs. The specific programs
to be used for affordability assistance shall be identified and described
within the spending plan.
(2)
Affordability assistance to households earning 30% or less of
median income may include buying down the cost of low- or moderate-income
units in the municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income. The specific programs
to be used for very-low-income affordability assistance shall be identified
and described within the spending plan.
(3)
Payments in lieu of constructing affordable housing units on
site, if permitted by ordinance or by agreement with the Township
of Hillsborough, and funds from the sale of units with extinguished
controls shall be exempt from the affordability assistance requirement.
D.
The Township of Hillsborough may contract with a private or public
entity to administer any part of its Housing Element and Fair Share
Plan, including its programs for affordability assistance.
E.
No more than 20% of all revenues collected from development fees
may be expended on administration, including, but not limited to,
salaries and benefits for municipal employees or consultants' fees
necessary to develop or implement a new construction program, prepare
a Housing Element and Fair Share Plan, and/or administer an affirmative
marketing program or a rehabilitation program.
(1)
In the case of a rehabilitation program, the administrative
costs of the rehabilitation program shall be included as part of the
20% of collected development fees that may be expended on administration.
(2)
Administrative funds may be used for income qualification of
households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Legal or other fees
related to litigation opposing affordable housing sites or related
to securing or appealing a judgment from the Court are not eligible
uses of the Affordable Housing Trust Fund.
The Township of Hillsborough shall provide annual reporting
of Affordable Housing Trust Fund activity to the State of 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 and
posted on the municipal website, using forms developed for this purpose
by the New Jersey Department of Community Affairs, Council on Affordable
Housing or Local Government Services. The reporting shall include
an accounting of all Affordable Housing Trust Fund activity, including
the sources and amounts of funds collected and the amounts and purposes
for which any funds have been expended. Such reporting shall include
an accounting of development fees collected from residential and nonresidential
developers, payments in lieu of constructing affordable units on site
(if permitted by ordinance or by agreement with the Township), funds
from the sale of units with extinguished controls, barrier-free escrow
funds, rental income from Township-owned affordable housing units,
repayments from affordable housing program loans, and any other funds
collected in connection with Hillsborough Township's affordable housing
programs, as well as an accounting of the expenditures of revenues
and implementation of the spending plan approved by the Court.
A.
The ability for the Township of Hillsborough to impose, collect and
expend development fees shall expire with the expiration of the repose
period covered by its judgment of compliance unless the Township of
Hillsborough has first filed an adopted Housing Element and Fair Share
Plan with the Court or with a designated state administrative agency,
has petitioned for a judgment of compliance from the Court or for
substantive certification or its equivalent from a state administrative
agency authorized to approve and administer municipal affordable housing
compliance and has received approval of its Development Fee Ordinance
from the entity that will be reviewing and approving the Housing Element
and Fair Share Plan.
B.
If the Township of Hillsborough fails to renew its ability to impose
and collect development fees prior to the expiration of its judgment
of compliance, it may be subject to forfeiture of any or all funds
remaining within its Affordable Housing Trust Fund. Any funds so forfeited
shall be deposited into the New Jersey Affordable Housing Trust Fund
established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320).
C.
The Township of Hillsborough shall not impose a residential development
fee on a development that receives preliminary or final site plan
approval after the expiration of its judgment of compliance, nor shall
the Township of Hillsborough retroactively impose a development fee
on such a development. The Township of Hillsborough also shall not
expend any of its collected development fees after the expiration
of its judgment of compliance.
