[Added 9-27-2004 by Ord. No. 04-39[1]]
[Added 9-27-2004 by Ord. No. 04-39]
This ordinance added a fair share/affordable housing Section LDO-1201 in accordance with the provisions of the Council on Affordable Housing.
A.
Purpose.
This section of the Township of Neptune Code sets forth regulations
regarding low- and moderate-income housing units in the Township of
Neptune that are consistent with the provisions of N.J.A.C. 5:93 et
seq. as effective on June 6, 1994. These rules are pursuant to the
Fair Housing Act of 1985 and the Township of Neptune’s constitutional
obligation to provide for its fair share of low- and moderate-income
housing.
B.
Township
of Neptune’s fair share obligation will be divided equally between
low- and moderate-income households as per N.J.A.C. 5:93-2.20.
C.
Except
for inclusionary developments constructed pursuant to low-income tax
credit regulations:
1.
At
least half of all units within each inclusionary development will
be affordable to low-income households; and
2.
At
least half of all rental units will be affordable to low-income households;
and
3.
At
least one-third of all units in each bedroom distribution pursuant
to N.J.A.C. 5:93-7.3 will be affordable to low-income households.
D.
Inclusionary
developments that are not age-restricted will be constructed in conjunction
with realistic market demands so that:
1.
The
combination of efficiency and one-bedroom units is at least 10% and
no greater than 20% of the total low- and moderate-income units; and
2.
At
least 30% of all low- and moderate-income units are two-bedroom units;
and
3.
At
least 20% of all low- and moderate-income units are three-bedroom
units; and
4.
Low-
and moderate-income units that are age-restricted may utilize a modified
bedroom distribution. At a minimum, the number of bedrooms will equal
the number of age-restricted low- and moderate-income units within
the inclusionary development.
E.
In conjunction
with realistic market information, the following criteria will be
used in determining maximum rents and sale prices:
1.
Efficiency
units will be affordable to a one-person household; and
2.
One-bedroom
units will be affordable to one-and-one-half-person households; and
3.
Two-bedroom
units will be affordable to three-person households; and
4.
Three-bedroom
units will be affordable to four-and-one-half-person households; and
5.
Median
income by household size will be established by a regional weighted
average of the uncapped Section 8 income limits published by HUD as
per N.J.A.C. 5:93-7.4(b); and
6.
The
maximum sales prices of low- and moderate-income units within each
inclusionary development will be affordable to households earning
no more than 70% of median income. In averaging an affordability range
of 55% for sales units, the municipal ordinance will require moderate-income
sales units to be available for at least three different prices and
low-income sales units to be available for at least two different
prices.
7.
For
both owner-occupied and rental units, the low- and moderate-income
units will utilize the same heating source as market units within
an inclusionary development; and
8.
Low-income
units will be reserved for households with a gross household income
less or equal to 50% of the median income approved by COAH; moderate-income
units will be reserved for households with a gross household income
less than 80% of the median income approved by COAH as per N.J.A.C.
5:93-7.4(g); and
9.
The
regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16 will be applicable
for purchased and rental units.
F.
For
rental units, developers and/or municipal sponsors may:
1.
Establish
one rent for a low-income unit and one for a moderate-income unit
for each bedroom distribution; and
2.
Gross
rents, including an allowance for tenant-paid utilities, will be established
so as not to exceed 30% of the gross monthly income of the appropriate
household size as per N.J.A.C. 5:93-7.4(f). The tenant-paid utility
allowance will be consistent with the utility allowance approved by
HUD for use in New Jersey.
3.
The
maximum rents of low- and moderate-income units within each inclusionary
development will be affordable to households earning no more than
60% of median income. In averaging an affordability range of 52% for
rental units, developers and/or municipal sponsors of rental units
may establish one rent for a low-income unit and one rent for a moderate-income
unit for each bedroom distribution.
G.
For
sale units:
1.
The
initial price of a low- and moderate-income owner-occupied for-sale
housing unit will be established so that after a downpayment of 5%,
the monthly principal, interest, homeowner and private mortgage insurance,
property taxes (based on the restricted value of the low- and moderate-income
unit) and condominium or homeowner fee do not exceed 28% of the eligible
gross monthly income; and
2.
Master
deeds of inclusionary developments will regulate condominium or homeowner
association fees or special assessments of low- and moderate-income
purchasers so that low- and moderate-income purchasers shall pay 50%
of those fees and special assessments paid by market purchasers. This
50% percentage is consistent with the requirements of N.J.A.C. 5:93-7.4(e).
Once established within the master deed, the 50% percentage will not
be amended without prior approval from COAH; and
3.
Township
of Neptune will follow the general provisions concerning uniform deed
restriction liens and enforcement through certificates of occupancy
or reoccupancy on sale units as per N.J.A.C. 5:93-9.3; and
4.
The
Township of Neptune will require a certificate of reoccupancy for
any occupancy of a low- or moderate-income sales unit resulting from
a resale as per N.J.A.C. 5:93-9.3(c); and
5.
Municipal,
state, nonprofit and seller options regarding sale units will be consistent
with N.J.A.C. 5:93-9.5 to 5:93-9.8. Municipal rejection of repayment
options for sale units will be consistent with N.J.A.C. 5:93-9.9;
and
6.
The
continued application of options to create, rehabilitate or maintain
low- and moderate-income sale units will be consistent with N.J.A.C.
5:93-9.10; and
7.
Eligible
capital improvements prior to the expiration of controls on sale units
will be consistent with N.J.A.C. 5:93-9.11; and
8.
The
regulations detailed in N.J.A.C. 5:93-9.12 to 5:93- 9.14 will be applicable
to low- and moderate-income units that are for-sale units.
H.
In zoning
for inclusionary developments the following is required:
1.
Low-
and moderate-income units will be built in accordance with N.J.A.C.
5:93-5.6(d):
|
Minimum Percent Low/Moderate Income Units Completed
|
Percent of Market Housing Units Completed
|
|---|---|
|
0
|
25
|
|
10
|
25 plus one unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
90
100
|
2.
A
design of inclusionary developments that integrates low- and moderate-income
units with market units is encouraged as per N.J.A.C. 5:93-5.6(f).
I.
Development Fee Ordinance. A development fee
ordinance was approved by COAH on April 6, 2004, and adopted by the
Township of Neptune Committee on June 14, 2004 (by Ord. No. 04-22).
J.
Controls
on Affordability and Length of Controls. To provide assurances that
low- and moderate-income units are created with controls on affordability
over time and that low- and moderate-income households occupy these
units, the Township of Neptune will designate the Township Administrator
with the responsibility of ensuring the affordability of sales and
rental units over time:
1.
The
Township Administrator will be responsible for those activities detailed
in N.J.A.C. 5:93-9.1(a); and
2.
In
addition, the Township Administrator will be responsible for utilizing
the verification and certification procedures outlined in N.J.A.C.
5:93-9.1(b) in placing households in low- and moderate-income units;
and
3.
Regarding
newly constructed low- and moderate-income sales units:
(a)
Newly constructed low- and moderate-income sales units will remain
affordable to low- and moderate-income households for at least 10
years pursuant to N.J.A.C. 5:93-9.2(b); and
(b)
The Township Administrator will require all conveyances of newly
constructed units to contain the deed restriction and mortgage lien
adopted by COAH and referred as Technical Appendix E as found in N.J.A.C.
5:93; and
(c)
Housing units created through the conversion of a nonresidential
structure will be considered a new housing unit and will be subject
to a minimum ten-year control on affordability pursuant to N.J.A.C.
5:93-9.2(b). The Township Administrator will require COAH’s
appropriate deed restriction and mortgage lien.
4.
Regarding
rehabilitated units:
(a)
Rehabilitated owner-occupied single-family housing units that are
improved to code standard will be subject to affordability controls
for at least six years, except that this minimum duration of affordability
control shall be increased in accordance with the minimum required
duration specified in future rounds/cycles of COAH’s rules,
if applicable; and
(b)
Rehabilitated renter-occupied housing units that are improved to
code standard will be subject to affordability controls for at least
10 years; and
(c)
The Township Administrator will require COAH’s appropriate
deed restriction and mortgage lien.
5.
Regarding
newly constructed and/or gut rehabilitated rental units:
(a)
Newly constructed and/or gut rehabilitated low- and moderate-income
rental units will remain affordable to low- and moderate-income households
for at least 10 years pursuant to N.J.A.C. 5:93-9.2(e). The Township
Administrator will require the deed restriction and lien and deed
of easement referred as Technical Appendix H as found in N.J.A.C.
5:93; and
(b)
Affordability controls in accessory apartments will be for a period
of at least 10 years, except if the apartment is to receive a rental
bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on
affordability will extend for 30 years (N.J.A.C. 5:93-5.9); and
(c)
Alternative living arrangements will be controlled in a manner suitable
to COAH, that provides assurances that such a facility will house
low- and moderate-income households for at least 10 years except if
the alternative living arrangement is to receive a rental bonus credit
pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability
will extend for 30 years (N.J.A.C. 5:93-5.8).
K.
Section
14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301 et seq., incorporates
the need to eliminate unnecessary cost generating features from the
Township of Neptune’s land use ordinances. Accordingly the Township
of Neptune will eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal
approvals/denials on certain affordable housing developments. The
Township of Neptune will adhere to the components of N.J.A.C. 5:93-10.1
to 5:93-10.3.
L.
Applicability.
The Township of Neptune has a fair share obligation of 23 units, of
which zero units are new construction. This section shall apply to:
1.
The
Township of Neptune’s rehabilitation program, the purpose of
which is to rehabilitate substandard housing units occupied by low-
and moderate-income households;
2.
Any
and all developments that contain proposed low- and moderate-income
units; and
3.
Any
public lands, with or without improvements, determined to be no longer
needed for municipal purposes pursuant to N.J.S.A. 40A:12-21, which
permits private sales to certain organizations for a nominal consideration,
when such land will be conveyed from The Township of Neptune to:
(a)
Any duly incorporated nonprofit organization for the purpose of building
or rehabilitating residential property for resale pursuant N.J.S.A.
40A:12-21(j); or
(b)
Any duly incorporated nonprofit housing corporation or any limited-dividend
housing corporation or housing association organized pursuant to P.L.
1949, c. 184 (N.J.S.A. 55:16-1 et seq.), for the purpose of constructing
housing for low- or moderate-income persons or families or handicapped
persons pursuant to N.J.S.A. 40A:12-21(l).
[Added 12-21-2017 by Ord.
No. 17-46]
This ordinance enacted the Township's Third Round Housing Plan
Element and Fair Share Plan consistent with the terms of the settlement
agreement with the Fair Share Housing Center regarding compliance
with the Township's Third Round Affordable Housing Obligations. This
ordinance added LDO-1202 through LDO-1219.
A.
Sections LDO-1202 through LDO-1219 are intended to assure that low- and moderate-income units ("affordable units") are created with controls on affordability and that low- and moderate-income households shall occupy these units. Sections LDO-1202 through LDO-1219 shall apply except where inconsistent with applicable law.
B.
The Township of Neptune Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. The Fair Share Plan has been adopted by the Planning
Board and endorsed by the governing body. The Fair Share Plan describes
the ways Neptune Township shall address its fair share for low- and
moderate-income housing as documented in the Housing Element and outlined
in the terms of the settlement agreement between the Township and
Fair Share Housing Center (FSHC).
D.
The Township of Neptune shall track the status of the implementation
of the Housing Element and Fair Share Plan. Any plan evaluation report
of the Housing Element and Fair Share Plan shall be available to the
public at Town Hall located on 25 Neptune Boulevard, Neptune, New
Jersey 07754.
[Added 12-21-2017 by Ord.
No. 17-46]
The Township of Neptune will use the following mechanisms to
satisfy its affordable housing obligations:
A.
A Rehabilitation program.
1.
The Township of Neptune and Fair Share Housing Center have agreed
upon a rehabilitation program of 100 units. The Township will continue
to implement its Paint and Rehab program to meet this 100 unit rehabilitation
obligation. This is a community based program that has been successfully
rehabilitating dwelling units within the Township that are occupied
by low- and moderate-income households such that, after rehabilitation,
these units will comply with the New Jersey State Housing Code pursuant
to N.J.A.C. 5:28.
2.
All rehabilitated rentals units shall remain affordable to low- and
moderate-income households for a period of 10 years (the control period).
Owner-occupied units shall remain affordable to low- and moderate-income
households for a period of six years. For owner-occupied units, the
control period will be enforced with a lien and for renter occupied
units the control period will be enforced with a deed restriction.
3.
The Township shall dedicate a minimum of $10,000 for each unit to
be rehabilitated through this program, reflecting the minimum hard
cost of rehabilitation for each unit.
4.
The Township of Neptune shall designate, subject to the approval
of the Court, one Administrative Agent to administer the rehabilitation
program in accordance with COAH and UHAC regulations. The Administrative
Agent shall provide a rehabilitation manual for the owner occupancy
rehabilitation program and a rehabilitation manual for the rental
occupancy rehabilitation program to be adopted by resolution of the
governing body and subject to approval of the Court. Both rehabilitation
manuals shall be available for public inspection in the Office of
the Municipal Clerk and in the office of the Administrative Agent.
5.
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9
and UHAC, but shall be administered in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner occupied units shall be exempt from the regional asset limit.
[Added 12-21-2017 by Ord.
No. 17-46]
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
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.
2.
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units. If there
is only one affordable unit it must be a low income unit.
3.
Thirteen percent of all affordable units shall be designated as very-low-income
households at 30% of the median income, with at least 50% of all very-low-income
units being available to families. If an inclusionary development
proposes less than 10 total units, a payment in lieu of a very low
income unit shall be deposited into the Township's Affordable Housing
Trust Fund based on the difference in cost between providing a very-low-income
unit and the region's affordability average. Inclusionary developments
of 10 or more total units shall be required to provide a minimum of
one very-low-income unit. Very-low-income units shall be considered
low-income units for the purposes of evaluating compliance with the
required low/moderate income unit splits, bedroom distribution, and
phasing requirements of this ordinance.
4.
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.
5.
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
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.
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;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Township of Neptune has collected funds
from the developer sufficient to make 10% of the adaptable entrances
in the development accessible:
(i)
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.
(ii)
To this end, the builder of restricted units shall
deposit funds within the Township's Affordable Housing Trust Fund
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
(iii)
The funds deposited under Paragraph B2(f)(ii)
above shall be used by the Township of Neptune for the sole purpose
of making the adaptable entrance of any affordable unit accessible
when requested to do so by a person with a disability who occupies
or intends to occupy the unit and requires an accessible entrance.
(iv)
The developer of the restricted units shall submit
a design plan and cost estimate for the conversion from adaptable
to accessible entrances to the Construction Official of the Township.
(v)
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 where
the funds shall be deposited into the affordable housing trust fund
and appropriately earmarked.
(vi)
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.
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 regional income limits established by the New Jersey
Department of Community Affairs (DCA) or other agency as required
by the Court.
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 low- and
moderate-income 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.
(a)
At least 13% of all low- and moderate-income dwelling units
shall be affordable to households earning no more than 30% of median
income.
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 prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
5.
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(a)
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 rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
7.
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.
8.
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
9.
The price of owner-occupied 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.
10.
The rent of low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the United States. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
11.
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by DCA for its Section 8 program.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
The Township of Neptune shall adopt by resolution an Affirmative
Marketing Plan, subject to approval of the Court, 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 also intended to target those potentially eligible
persons who are least likely to apply for affordable units in that
region. It is a continuing program that directs all marketing activities
toward Housing Region 4 and covers the period of deed restriction.
C.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in Housing Region 4.
D.
The Administrative Agent designated by the Township shall assure
the affirmative marketing of all affordable units consistent with
the Affirmative Marketing Plan for the municipality.
E.
In implementing the affirmative marketing plan, the Administrative
Agent shall provide a list of counseling services to 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 process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
G.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
In referring certified households to specific restricted units, to
the extent feasible, and without causing an undue delay in occupying
the unit, the Administrative Agent shall strive to:
B.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
Control periods for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each restricted ownership unit shall remain subject to the requirements of Sections LDO-1202 through LDO-1219 until the Township elects to release the unit from such requirements; however, and prior to such an election, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.
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 non-restricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value.
D.
At the time of the first sale of the unit, the purchaser shall execute and deliver to the Administrative Agent a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first non-exempt sale after the unit's release from the requirements of Sections LDO-1202 through LDO-1219, an amount equal to the difference between the unit's non-restricted 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.
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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
[Added 12-21-2017 by Ord.
No. 17-46]
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 method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners.
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 capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
[Added 12-21-2017 by Ord.
No. 17-46]
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.
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 certified monthly income.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine, in writing,
that the proposed indebtedness complies with the provisions of this
section.
B.
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
[Added 12-21-2017 by Ord.
No. 17-46]
A.
Control periods for restricted rental units shall be in accordance with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and each restricted rental unit shall remain subject to the requirements of Sections LDO-1202 through LDO-1219 until the Township of Neptune elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior to such an election, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at least 30 years.
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 Ocean. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a Certificate
of Occupancy.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, 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 Sections LDO-1202 through LDO-1219.
[Added 12-21-2017 by Ord.
No. 17-46]
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 median income.
2.
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
3.
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
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 proposed third-party assistance from an outside
source, such as a family member, in a form acceptable to the Administrative
Agent and the owner of the unit.
C.
The applicant shall file documentation sufficient to establish the
existence of the circumstances in Paragraph B1 through 5 above with
the Administrative Agent, who shall counsel the household on budgeting.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
The position of Municipal Housing Liaison (MHL) for the Township of Neptune is established by Sections LDO-1202 through LDO-1219. The Township shall make the actual appointment of the MHL by means of a resolution.[1]
1.
The MHL must be either a full-time or part-time employee of Neptune.
2.
The person appointed as the MHL must be reported to the Court and
thereafter posted on the Township's website.
3.
The MHL must meet all the requirements for qualifications, including
initial and periodic training.
4.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Neptune, including the following responsibilities which may not
be contracted out to the Administrative Agent:
(a)
Serving as the municipality's primary point of contact for all
inquiries from the State, affordable housing providers, Administrative
Agents and interested households;
(b)
The implementation of the Affirmative Marketing Plan and affordability
controls.
(c)
When applicable, supervising any contracting Administrative
Agent.
(d)
Monitoring the status of all restricted units in the Township
Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required;
(f)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable; and
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Affordable Housing Professionals of New Jersey
(AHPNJ).
B.
The Township of Neptune shall designate by resolution of the Township
Committee, subject to the approval of the Court, one or more Administrative
Agents to administer newly constructed affordable units in accordance
with COAH and UHAC regulations.
C.
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body. The Operating Manuals
shall be available for public inspection in the Office of the Municipal
Clerk and in the office(s) of the Administrative Agent(s).
D.
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC, including those
set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof,
which includes:
1.
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by the Affordable Housing Professionals of New Jersey (AHPNJ).;
2.
Affirmative Marketing;
3.
Household Certification;
4.
Affordability Controls;
5.
Records retention;
6.
Resale and re-rental;
7.
Processing requests from unit owners; and
8.
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality.
9.
The Administrative Agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
E.
The Administrative Agent shall restrict existing affordable units
to very-low-income occupants as they turn over until such time that
the very-low-income unit obligation is satisfied.
[Added 12-21-2017 by Ord.
No. 17-46]
A.
Upon the occurrence of a breach of any of the regulations governing
the 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, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the 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 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
found 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 $10,000 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
In the case of an Owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Township of Neptune Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
In the case of an Owner who has rented his or her 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, which would result in the termination of the Owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any 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- and moderate-income unit.
C.
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the 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 the right
to possession terminated as well as the title conveyed pursuant to
the Sheriff's sale.
D.
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
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 and to the 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.
E.
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 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.
F.
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 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 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.
G.
Failure of the 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 low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
H.
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.
[Added 12-21-2017 by Ord.
No. 17-46]
[Added 12-21-2017 by Ord.
No. 17-46]
[Added 12-21-2017 by Ord.
No. 17-46]
[Added 12-21-2017 by Ord.
No. 17-46]
If any section, paragraph, subdivision, clause or provision of Sections LDO-1202 through LDO-1219 shall be adjudged invalid, such adjudication shall apply only to the section, paragraph, subdivision, clause or provision so adjudged and the remainder of this Article shall be deemed valid and effective.
