[Adopted 2-23-2021 by Ord. No. 1398-21]
The Borough of Caldwell shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Fair Share Plan:
A. Beginning one year after the entry of the Borough's Round 3
Judgment of Compliance and Repose, and on every anniversary of that
date through 2025, the Borough shall provide an annual report of its
Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Council on Affordable
Housing (COAH), or Local Government Services (NJLGS). The report 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 one year after the entry of the Borough's Round 3
Judgment of Compliance and Repose, and on every anniversary of that
date through 2025, the Borough agrees to provide an annual report
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 Superior
Court Appointed Special Master and FSHC.
C. The Fair Housing Act includes two provisions regarding action to
be taken by the Borough during its ten-year repose period. The Borough
will comply with those provisions to the extent applicable.
The following terms when used in this section shall have the
meanings given in this section:
ACCESSORY APARTMENT
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.) as has been subsequently amended.
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Borough responsible for the
administration of affordable units in accordance with this article,
applicable COAH regulations and the Uniform Housing Affordability
Controls (UHAC)(N.J.A.C. 5:80-26.1 et seq.).
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income
household as defined by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; 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.
AFFORDABLE HOUSING DEVELOPMENT
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 development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in the Borough's Fair Share Plan prepared
or implemented to address the Borough's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC Settlement Agreement,
or an order of the Superior Court.
AGE-RESTRICTED UNIT
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 where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years 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.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
ALTERNATIVE LIVING ARRANGEMENT
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.
ASSISTED LIVING RESIDENCE
A facility 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.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a very-low-income household, low-income household or moderate-income
household.
COAH
The New Jersey Council on Affordable Housing established
under the Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the State. Pursuant to the opinion and order of the
New Jersey Supreme Court dated March 10, 2015, in the matter of "In
re Adoption of N.J.A.C. 5:96 and 5:97 by N.J. Council on Affordable
Housing (M-392-14) 067126," any reference to COAH or the Council shall
be understood to refer to the Superior Court of New Jersey, Law Division,
Essex County.
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
require 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.
DEVELOPER
Any person, partnership, association, entity, company or
corporation that is the legal or beneficial owner or owners of a lot
or any land proposed to be included in a proposed development including
the holder of an option to contract or purchase, or other person having
an enforceable proprietary interest in such land.
DEVELOPMENT
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.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to:
new construction, the conversion of a nonresidential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
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 or load-bearing structural systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN-INCOME
The median income by household size for the applicable county,
as adopted annually by the Department.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Caldwell.
NON-EXEMPT SALE
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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
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 the Department's adopted Regional Income Limits
published annually by COAH, a successor entity or established by the
Court.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
THE DEPARTMENT
The Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the median household income.
WEATHERIZATION
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 rehabilitation.
In inclusionary developments the following schedule shall be
followed:
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|
25
|
0
|
25+1
|
10
|
50
|
50
|
75
|
75
|
90
|
100
|
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. Provide an occupant for each bedroom;
B. Provide children of different sexes with separate bedrooms;
C. Provide separate bedrooms for parents and children; and
D. Prevent more than two persons from occupying a single bedroom.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A. The initial purchase price for a restricted ownership unit shall
be approved by the Borough's administrative agent, or an administrative
agent appointed by a particular developer.
B. The Borough's administrative agent, or an administrative agent
appointed by a particular developer, 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 homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers, unless the master deed for the inclusionary
project was executed prior to the enactment of UHAC.
D. The owners of restricted ownership units may apply to the Borough's
administrative agent, or an administrative agent appointed by a particular
developer, to increase the maximum sales price for the unit on the
basis of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
An administrative agent may be either an independent entity
serving under contract to and reporting to the Borough, or reporting
to a specific individual developer. 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 Borough
administrative agent shall monitor and work with any individual administrative
agents appointed by individual developers. The administrative agent(s)
shall perform the duties and responsibilities of an administrative
agent as set forth in UHAC, including those set forth in Sections
5:80-26.14, 16 and 18 thereof, which includes:
A. Affirmative marketing:
(1) Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Borough of Caldwell and the provisions of N.J.A.C. 5:80-26.15;
and
(2) Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B. Household certification:
(1) Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2) Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3) Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4) Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendices J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5) Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
(6) Employing a random selection process as provided in the affirmative
marketing plan of the Borough of Caldwell when referring households
for certification to affordable units; and
(7) Notifying the following entities of the availability of affordable
housing units in the Borough of Caldwell: FSHC, the New Jersey State
Conference of the NAACP, the Latino Action Network, Essex County and
Salem County Branches of the NAACP, Senior Citizens United Community
Services, 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 Essex
County Register of Deeds or the Essex 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 re-rentals:
(1) Instituting and maintaining an effective means of communicating information
between owners and the Borough's administrative agent, or any
administrative agent appointed by a specific developer, regarding
the availability of restricted units for resale or re-rental; and
(2) Instituting and maintaining an effective means of communicating information
to very-low-, low- and moderate-income households regarding the availability
of restricted units for resale or re-rental.
E. Processing requests from unit owners:
(1) Reviewing and approving requests 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 section;
(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 Borough 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 Borough 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 Borough's
administrative agent, or any administrative agent appointed by a specific
developer;
(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 Borough's administrative agent, or any
administrative agent appointed by a specific developer, 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
Borough's Affordable Housing Trust Fund; and
(6) Creating and publishing a written operating manual for each affordable
housing program administered by the Borough's administrative
agent, or any administrative agent appointed by a specific developer,
to be approved by the Mayor and Council and the Superior Court, setting
forth procedures for administering the affordability controls.
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 section. The Borough's administrative agent
will be responsible for collecting monitoring information from any
administrative agents appointed by specific developers.
(3) The Borough's administrative agent, or any administrative agent
appointed by a specific developer, shall attend continuing education
sessions on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
Appeals from all decisions of an administrative agent appointed
pursuant to this section shall be filed in writing with the Superior
Court.