[Ord. No. 2005-07, 3-15-2005; Ord. No. 2006-09, 4-24-2006; Ord. No. 2006-20, 8-14-2006, ; Ord. No. 2019-15, 8-12-2019; amended 8-14-2020 by Ord. No. 2020-15]
The Township of Bordentown 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 Local Government Services, or other entity
designated by the State of New Jersey, with a copy provided to Fair
Share Housing Center (FSHC) and posted on the municipal website, using
forms developed for this purpose by the New Jersey Department of Community
Affairs (NJDCA), Council on Affordable Housing (COAH), or Local Government
Services (NJLGS). The reporting shall include an accounting of all
Affordable Housing Trust Fund activity, including the source and amount
of funds collected and the amount and purpose for which any funds
have been expended.
B.
Beginning on July 1, 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 post on its municipal
website, with a copy provided to FSHC, a status report as to its implementation
of its Plan and an analysis of whether any unbuilt sites or unfulfilled
mechanisms continue to present a realistic opportunity and whether
any mechanisms to meet unmet need should be revised or supplemented.
Such posting shall invite any interested party to submit comments
to the municipality, with a copy to FSHC, regarding whether any sites
no longer present a realistic opportunity and should be replaced and
whether any mechanisms to meet unmet need should be revised or supplemented.
Any interested party may by motion request a hearing before the court
regarding these issues.
D.
By July 1, 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.
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 household or moderate-income
household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development, including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
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 UHORP or MONI.
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 pursuant to the New Jersey Fair Housing Act of 1985, N.J.S.A.
52:27D-301 et seq.
A restricted unit that is affordable to a very-low-income
household pursuant to the New Jersey Fair Housing Act of 1985, N.J.S.A.
52:27D-301 et seq.
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 Bordentown pursuant to the Township's most
recently adopted Housing Element and Fair Share Plan.
B.
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.
C.
Projects receiving federal
low-income housing tax credit financing shall comply with the income
and bedroom distribution requirements of UHAC at N.J.A.C. 5:80-26.3
(with the exception that the UHAC requirement for 10% of the affordable
units in rental projects being required to be at 35% of median income
be modified as required by the statutory requirement at N.J.S.A. 52:27D-329.1
to 13% of affordable units in such projects shall be required to be
at 30% of median income) and the length of the affordability controls
applicable to such projects shall be not less than a thirty-year compliance
period plus a fifteen-year extended-use period.
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%, plus 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 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)
In each affordable development,
at least 50% of the restricted units within each bedroom distribution
shall be very-low- or low-income units.
(3)
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.
(4)
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:
(2)
All restricted townhouse
dwelling units and all restricted units in other multistory buildings
in which a restricted dwelling unit is attached to at least one other
dwelling unit shall have the following features:
(a)
An adaptable toilet
and bathing facility on the first floor; and
(b)
An adaptable kitchen
on the first floor; and
(c)
An interior accessible
route of travel on the first floor; and
(d)
An adaptable room that
can be used as a bedroom, with a door or the casing for the installation
of a door, on the first floor; and
(e)
If not all of the foregoing requirements in Subsection B(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway
as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and
the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that Bordentown
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 Bordentown's Affordable Housing Trust Fund sufficient to install
accessible entrances in 10% of the affordable units that have been
constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township of Bordentown 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 Bordentown 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 Treasurer 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.
C.
Design.
(1)
In inclusionary developments,
to the extent possible, very-low-, low- and moderate-income units
shall be integrated with the market units.
(2)
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.
D.
Maximum rents and sales prices.
(1)
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 days of the publication
of determinations of median income by the Department of Housing and
Urban Development ("HUD") as follows:
(a)
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
form 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.
(b)
The income limits are the result of applying the percentages set forth in Subsection D(1)(a) 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.
(c)
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 D(1)(a) 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.
(d)
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.
(e)
The rent levels of very-low-,
low- and moderate-income units may be increased annually based on
the percentage increase in the Housing Consumer Price Index for the
Northeast Urban Area, upon its publication for the prior calendar
year. This increase shall not exceed 9% in any one year. Rents for
units constructed pursuant to low-income housing tax credit regulations
shall be indexed pursuant to the regulations governing low-income
housing tax credits.
(2)
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.
(3)
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.
(4)
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.
(5)
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:
(a)
A studio shall be affordable
to a one-person household;
(b)
A one-bedroom unit shall
be affordable to a one-and-one-half-person household;
(c)
A two-bedroom unit shall
be affordable to a three-person household;
(d)
A three-bedroom unit
shall be affordable to a four-and-one-half-person household; and
(e)
A four-bedroom unit
shall be affordable to a six-person household.
(6)
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:
(a)
A studio shall be affordable
to a one-person household;
(b)
A one-bedroom unit shall
be affordable to a one-and-one-half-person household; and
(c)
A two-bedroom unit shall
be affordable to a two-person household or to two one-person households.
(d)
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 homeowner 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.
(7)
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.
(8)
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.
(9)
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 Bordentown 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 Bordentown 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 Bordentown 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. 5:80-26.1, 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 homeowner 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 § 500-1113.
A.
Buyer income eligibility for
restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.1,
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 homeowner 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 article,
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 Bordentown 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 Bordentown 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. 5:80-26.1, except as
modified by the terms of the settlement agreement between the Township
of Bordentown 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 Burlington. A copy
of the filed document shall be provided to the administrative agent
within 30 days of the receipt of a certificate of occupancy.
C.
A restricted rental unit shall
remain subject to the affordability controls of this 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.
A.
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 Bordentown and Fair Share
Housing Center (FSHC), as such settlement agreement may be further
amended and supplemented. All such projects shall be required to have
an initial thirty-year affordability control 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 Bordentown Township, including the following responsibilities
which may not be contracted out to the administrative agent:
(1)
Serving as Bordentown 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 Bordentown 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 Bordentown
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). Bordentown 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 Bordentown 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. 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 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 Township of Bordentown
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 Bordentown 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 Bordentown: Fair Share Housing Center, the Latino Action Network,
Willingboro NAACP, Southern Burlington County NAACP, Supportive Housing
Association, and the New Jersey Housing Resource Center.
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 Burlington County Register
of Deeds or Burlington 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 Committee
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 Bordentown
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 5
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 5, comprised of Camden, Gloucester, and Burlington
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 Bordentown 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 Bordentown
Township, and copies of the application forms, to the following entities:
Fair Share Housing Center, the Latino Action Network, Willingboro
NAACP, Southern Burlington County NAACP, Supportive Housing Association,
and the New Jersey Housing Resource Center.
J.
The costs of advertising and
affirmative marketing of the affordable units shall be the responsibility
of the developer, sponsor or owner.
A.
Upon the occurrence of a breach
of any of the regulations governing an affordable unit by an owner,
developer or tenant, the municipality shall have all remedies provided
at law or equity, including, but not limited to, foreclosure, tenant
eviction, a requirement for household recertification, acceleration
of all sums due under a mortgage, recuperation of any funds from a
sale in violation of the regulations, injunctive relief to prevent
further violation of the regulations, entry on the premises, and specific
performance.
B.
After providing written notice
of a violation to an owner, developer or tenant of a low- or moderate-income
unit and advising the owner, developer or tenant of the penalties
for such violations, the municipality may take the following action(s)
against the owner, developer or tenant for any violation that remains
uncured for a period of 60 days after service of the written notice:
(1)
The municipality may file
a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation
or violations of the regulations governing the affordable housing
unit. If the owner, developer or tenant is adjudged by the court to
have violated any provision of the regulations governing affordable
housing units, the owner, developer or tenant shall be subject to
one or more of the following penalties, at the discretion of the court:
(a)
A fine of not more than
$500 per day or imprisonment for a period not to exceed 90 days, or
both, provided that each and every day that the violation continues
or exists shall be considered a separate and specific violation of
these provisions and not a continuation of the initial offense;
(b)
In the case of an owner
who has rented a very-low-, low- or moderate-income unit in violation
of the regulations governing affordable housing units, payment into
the Township of Bordentown Affordable Housing Trust Fund of the gross
amount of rent illegally collected;
(c)
In the case of an owner
who has rented a very-low-, low- or moderate-income unit in violation
of the regulations governing affordable housing units, payment of
an innocent tenant's reasonable relocation costs, as determined by
the court.
(2)
The municipality may file
a court action in the Superior Court seeking a judgment that would
result in the termination of the owner's equity or other interest
in the unit, in the nature of a mortgage foreclosure. Any such judgment
shall be enforceable as if the same were a judgment of default of
the first purchase money mortgage and shall constitute a lien against
the low- or moderate-income unit.
(a)
The judgment shall be
enforceable, at the option of the municipality, by means of an execution
sale by the Sheriff, at which time the very-low-, low- and moderate-income
unit of the violating owner shall be sold at a sale price which is
not less than the amount necessary to fully satisfy and pay off any
first purchase money mortgage and prior liens and the costs of the
enforcement proceedings incurred by the municipality, including attorneys'
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 court.
