[Added 8-10-2022 by Ord. No. 2042-2022]
A.
This section of the City Code sets forth regulations regarding the
very-low-, low-, and moderate-income housing units in the City consistent
with the provisions known as the "Substantive Rules of the New Jersey
Council on Affordable Housing", N.J.A.C. 5:93 et seq., the Uniform
Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq.,
except where modified by the requirements for very-low-income housing
as established in P.L. 2008, c.46 (the "Roberts Bill", codified at
N.J.S.A. 52:27D-329.1) as reflected in the terms of a Settlement Agreement
between the City and Fair Share Housing Center ("FSHC") such that
the statutory requirement to provide very-low-income units equal to
thirteen percent (13%) of affordable units approved and constructed
after July 17, 2008, to be affordable to households at thirty percent
(30%) of the regional median income, overrides the UHAC requirement
that ten percent (10%) of all low- and moderate-income units must
be affordable at thirty-five percent (35%) of the regional median
income, and the City's constitutional obligation to provide a
fair share of affordable housing for low and moderate income households.
B.
This Article is intended to assure that very-low-, low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that very-low-, low- and moderate-income households
shall occupy these units. This Article shall apply to all developments
that include affordable units (including those funded with low-income
housing tax credit financing) except where inconsistent with applicable
law.
C.
The Perth Amboy City 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., which may be amended. The Plan has also been endorsed
by the Mayor and Council of the City of Perth Amboy. The Fair Share
Plan describes the ways the City shall address its fair share for
very-low-, low-, and moderate-income housing as will be determined
by the Superior Court and documented in the Housing Element.
D.
This Article implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:93, as may be amended and
supplemented.
E.
Starting on January 1, 2023, and every anniversary thereafter, the
City shall file monitoring and status reports with Fair Share Housing
Center ("FSHC") and place the reports on its municipal website. Any
plan evaluation report of the Housing Element and Fair Share Plan
and monitoring evaluation report prepared by the Special Master in
accordance with N.J.A.C. 5:91 shall be available shall be available
on the municipal website.
F.
Starting on January 1, 2023, and every anniversary thereafter, the
City of Perth Amboy shall provide an annual report on all affordable
housing activity and any expenditures from or deposits into its affordable
housing trust fund. The annual report shall be sent directly to FSHC,
posted on the municipal website, and provided to the New Jersey Department
of Community Affairs or other entity designated by the State of New
Jersey. The reporting shall state the location and the number of affordable
units approved, under construction, and built, and it shall provide
information on the bedroom and income distribution of the affordable
units and whether a deed restriction has been imposed on them. It
shall also report on affordable housing trust fund activity, including
the amount and purpose of all expenditures, the source and amount
of all deposits, and updated totals.
G.
The Fair Housing Act includes two provisions regarding action to
be taken by the City during the ten-year period of protection provided
in the City's Court-approved agreement with FSHC. The City agrees
to comply with those provisions as follows:
(1)
Within thirty (30) days of June 1, 2021 and June 1, 2024 the
City shall prepare a review of compliance with the very-low income
housing requirements required by N.J.S.A. 52:27D-329.1 and its Court-approved
Settlement Agreement with FSHC. The City 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 the family very-low
income requirements referenced herein and in the City's Settlement
Agreement with FSHC. 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 housing obligation.
As used herein the following terms shall have the following
meanings:
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 responsible for the administration of affordable
units in accordance with this Article, N.J.A.C. 5:91, N.J.A.C. 5:93
and N.J.A.C. 5:80-26.1 et seq.
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 restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:93-7.4; 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 housing development of which all or a portion of which
consists of one or more restricted units. This shall include developments
subject to the City's Zoning and Land Development Regulations,
as well as the City's adopted redevelopment plans and/or executed
redevelopment agreements.
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, credited
pursuant to N.J.A.C. 5:80-26.1, et seq., and N.J.A.C. 5:93, et seq.,
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 where the unit
is situated are sixty two (62) years or older; or (2) at least eighty
percent (80%) of the units are occupied by one person that is fifty-five
(55) years or older; or (3) the development has been designated by
the Secretary of the U.S. Department of Housing and Urban Development
as "housing for older persons" as defined in Section 807(b)(2) of
the Fair Housing Act, 42 U.S.C. § 3607.
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 arrangement includes, but is not limited
to: transitional facilities for the homeless, Class A, B, C, D, and
E boarding homes as regulated by the 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 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 (4) 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, which is in, but not of,
the Department of Community Affairs of the State of New Jersey, that
was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.).
The State of New Jersey Department of Community Affairs.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
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.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the City proposes to address its
affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.A.C. 5:93-5.
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is available to the general public and not restricted to any specific
segment of the population.
The portion of the City's Master Plan, required by the
Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the Act,
that includes the information required by N.J.A.C. 5:93-5.1 and establishes
the City's fair share obligation.
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to:
new construction, the conversion of a non-residential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with a total gross annual household income equal
to fifty percent (50%) or less of the median household income.
A restricted unit that is affordable to a low-income household.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH or approved by the NJ Superior Court.
A household with a total gross annual household income in
excess of fifty percent (50%) but less than eighty percent (80%) of
the median household income.
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 eighty percent (80%)
of the regional median as defined by adopted/approved Regional Income
Limits.
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 ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
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 thirty percent (30%) or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
The following requirements shall apply to all new or planned
developments, including those subject to redevelopment plans and/or
redevelopment agreements, that contain very-low-, low- and/or moderate-income
housing units.
A.
The requirements of this section apply to all developments that contain
affordable housing units, including any currently unanticipated future
developments that will provide very-low-, low-, and moderate- income
housing units.
B.
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for very low, low and moderate income units whether developed
in a single phase development, or in a multi-phase development:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low-, Very-Low-, and Moderate-Income Units
Completed
|
|---|---|
|
25%
|
0
|
|
25% + 1
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
|
100%
|
—
|
C.
Design. In inclusionary developments, very-low-, low- and moderate-income
units shall be integrated on-site with the market-rate units, and
the affordable units shall not be concentrated in separate building(s)
or in separate area(s) or floor(s) from the market-rate units. In
buildings with multiple dwelling units, this shall mean that the affordable
units shall be generally distributed within each building with market-rate
units. The affordable units shall also be of the same type as the
market-rate units (e.g., if the market-rate units are non-age-restricted
family units, the affordable units shall be non-age-restricted family
units as well). The residents of the affordable units shall have full
and equal access to all of the entryways, amenities, common areas,
and recreation areas and facilities as the residents of the market-rate
units.
D.
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
E.
Very Low/Low/Moderate Split and Bedroom Distribution of Affordable
Housing Units:
(1)
All of the affordable units shall fully comply with the Uniform
Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq., including
but not limited to the required bedroom and income distribution, with
the sole exception that thirteen percent (13%) of the affordable units
within each bedroom distribution shall be required to be for very-low-income
households earning thirty percent (30%) or less of the median income
pursuant to the Fair Housing Act.
(2)
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.
(3)
In each development with affordable housing, at least fifty
percent (50%) of the affordable units within each bedroom distribution
shall be affordable to low-income households, inclusive of the at
least thirteen percent (13%) of units affordable to very-low-income
households. The very-low-income affordable units shall be proportionately
distributed within each bedroom distribution. In a family non-age-restricted
development, at no time shall the number of one-bedroom very-low-income
units exceed the number of three-bedroom very-low-income units.
(4)
Of the total number of affordable units, at least thirteen percent
(13%) of the restricted units within each bedroom distribution shall
be affordable to very-low income households.
(5)
At least half of the affordable units in each bedroom distribution
within each affordable housing development shall be affordable to
low-income households.
(6)
Affordable developments that are not age-restricted shall require
that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than twenty percent (20%) of the total very-low-, low-
and moderate-income units;
(b)
At least thirty percent (30%) of all very-low-, low- and moderate-income
units shall be two-bedroom units;
(c)
At least twenty percent (20%) of all very-low-, low- and moderate-income
units shall be three-bedroom units; and
(d)
The remaining very-low-, low-, and moderate-income units may
be allocated among two- and three-bedroom units at the discretion
of the developer.
(7)
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.
F.
Accessibility requirements:
(1)
The first floor of all new restricted townhouse dwelling units
and all restricted multistory dwelling units attached to at least
one (1) other dwelling unit 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 multistory
dwelling units attached to at least one (1) 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 City has collected funds from the developer
sufficient to make ten percent (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 City of Perth Amboy's affordable housing trust fund
sufficient to install accessible entrances in ten percent (10%) of
the affordable units that have been constructed with adaptable entrances.
[3]
The funds deposited under paragraph (2) herein, shall be used
by the City for the sole purpose of making the adaptable entrance
of any affordable unit accessible when requested to do so by a person
with a disability who occupies or intends to occupy the unit and requires
an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the City of Perth Amboy.
[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 City of Perth Amboy's affordable housing trust
fund in care of the Municipal Treasurer who shall ensure that the
funds are deposited into the affordable housing trust fund and appropriately
earmarked.
[6]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
G.
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 and by the Superior Court, utilizing the regional income limits
established.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
sixty percent (60%) of median income, and the average rent for restricted
low- and moderate-income units shall be affordable to households earning
no more than fifty-two percent (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
very-low-income, low-income and moderate-income units.
(a)
At least thirteen percent (13%) of all low- and moderate-income
units shall be affordable to households earning no more than thirty
percent (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 seventy percent (70%) of median income, and each affordable
development must achieve an affordability average of fifty five-percent
(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
met:
(a)
A studio or efficiency unit 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 met:
(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 twenty-eight (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 thirty percent (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 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.
(10)
Income limits for all units for which income limits are not
already established through a federal program exempted from the Uniform
Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall
be updated by the City annually within thirty (30) days of the publication
of determinations of median income by HUD as follows:
(a)
Regional income limits shall be established for the Region 3
based on the median income by household size, which shall be established
by a regional weighted average of the 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 the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial Census in Region 3. This
quotient represents the regional 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 eighty percent (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 fifty percent
(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 thirty percent (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 calculated each year shall be the result of
applying the percentages set forth in paragraph (a) above to HUD's
determination of median income for the relevant fiscal year, and shall
be utilized until the City 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 City annually by taking the percentage
increase of the income limits calculated pursuant to paragraph (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.
(11)
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
five percent (5%) in any one (1) year. Rents for units constructed
pursuant to low income housing tax credit regulations shall be indexed
pursuant to the regulations governing low income housing tax credits.
(12)
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.
H.
Condominium and homeowners association fees.
(1)
For any affordable housing unit that is part of a condominium
association and/or homeowner's association, the Master Deed shall
reflect that the association fee assessed for each affordable housing
unit shall be established at one hundred percent (100%) of the market
rate fee.
I.
Affirmative marketing.
(1)
The City shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of the Superior Court, compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented. All very-low-, low-,
and moderate-income units in the City shall be marketed in accordance
with the Affirmative Marketing Plan.
(2)
The Affirmative Marketing Plan shall require that all availabilities
of very-low-, low-, and moderate-income units be posted on the New
Jersey Housing Resource Center in accordance with P.L. 2020, c. 51,
as may be amended.
(3)
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 COAH Housing Region 3 and covers the period of deed
restriction.
(4)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 3,
comprised of Middlesex, Somerset, and Middlesex Counties.
(5)
The following entities, as part of the Affirmative Marketing
Plan, must receive written notice of all very-low-, low-, and moderate-income
units that become available at least ninety (90) days before an income-eligible
household is selected:
(a)
Fair Share Housing Center, 510 Park Blvd, Cherry Hill, NJ;
(b)
Latino Action Network, PO Box 943, Freehold, NJ 07728;
(c)
New Brunswick Area NAACP, PO Box 235, New Brunswick, NJ 08901;
(d)
Catholic Charities, 319 Maple Street, Perth Amboy, NJ 08861;
(e)
Salvation Army, 433 State Street, Perth Amboy, NJ 08861;
(f)
Puerto Rican Association, 100 1st Street, Perth Amboy, NJ 08861;
(g)
Volunteers of America, 396 Mechanic Street, Perth Amboy, NJ
08861;
(h)
Raritan Bay Area YMCA, 357 New Brunswick Avenue, Perth Amboy,
NJ 08861;
(i)
Supportive Housing Association, 15 Alden St # 14, Cranford,
NJ 07016; and
(j)
The New Jersey Housing Resource Center (HRC).
(6)
The development's Administrative Agent designated by the
City shall assure the affirmative marketing of all affordable units
is consistent with the Affirmative Marketing Plan for the municipality.
(7)
Any other entities, including developers or persons or companies
retained or otherwise required to do affirmative marketing, shall
comply with this paragraph.
(8)
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.
(9)
The affirmative marketing process for available affordable units
shall begin at least four (4) months prior to the expected date of
occupancy.
(10)
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 City of Perth Amboy.
J.
Occupancy standards.
(1)
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:
(2)
Additional provisions related to occupancy standards (if any)
shall be provided in the municipal Operating Manual.
K.
Selection of occupants of affordable housing units.
(1)
The administrative agent shall use a random selection process
to select occupants of very-low-, low- and moderate- income housing.
(2)
Income-eligible very-low-, low-, and moderate-income households
that demonstrate the ability to pay shall not be denied access to
affordable units on the basis of credit score/history or a prior eviction,
and any inquiry into an applicant's criminal history must comply
with the "Fair Chance in Housing Act." See P.L. 2021, c. 110.
(3)
A waiting list of all eligible candidates will be maintained
in accordance with the provisions of N.J.A.C. 5:80-26 et seq.
L.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
Deed restrictions with control periods for restricted ownership
units shall be in accordance with N.J.A.C. 5:80-26.5, and each restricted
ownership unit shall remain subject to the controls on affordability
for a period of at least thirty (30) years, unless and until the municipality
takes action, in its sole discretion, to either extend or release
the controls on affordability. The controls may be extended by the
municipality via a resolution for a period to be determined by the
municipality to be in the best interests of very-low-, low, and moderate-income
households.
(2)
Rehabilitated owner-occupied housing units that are improved
to code standards shall be subject to affordability controls for a
period of no less than ten (10) years.
(3)
The affordability control period for a restricted ownership
unit shall commence on the date the initial certified household takes
title to the unit.
(4)
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.
(5)
Deeds of all real property that include restricted ownership
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 Middlesex. A copy of the filed document shall
be provided to the Administrative Agent within thirty (30) days of
the receipt of a Certificate of Occupancy.
(6)
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.
M.
Price Restrictions for Restricted Ownership Units, Homeowner Association
Fees and Resale Prices.
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:
(1)
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
(2)
The Administrative Agent shall approve all resale prices, in
writing and in advance of the resale, to assure compliance with the
foregoing standards.
(3)
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.
(4)
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.
N.
Buyer income eligibility.
(1)
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 very-low-income ownership units shall be reserved for households
with a gross household income less than or equal to thirty percent
(30%) of median income, low-income ownership units shall be reserved
for households with a gross household income less than or equal to
fifty percent (50%) of median income, and moderate-income ownership
units shall be reserved for households with a gross household income
less than eighty percent (80%) of median income.
(2)
The Administrative Agent shall certify a household as eligible
for a restricted ownership unit when the household is a very-low-income,
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 thirty-three percent (33%) of the household's
certified monthly income.
O.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
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.
(2)
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 ninety-five (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).
P.
Control Periods for Restricted Rental Units.
(1)
Deed restrictions with control periods for restricted rental
units shall be in accordance with N.J.A.C. 5:80-26.11, and each restricted
rental unit shall remain subject to the controls on affordability
for a period of at least thirty (30) years, unless and until the municipality,
in its sole discretion, takes action to extend or release the controls
on affordability. The controls may be extended by the municipality
via a resolution for a period to be determined by the municipality
to be in the best interests of very-low-, low, and moderate-income
households. In the event the municipality chooses to release the controls
after at least thirty (30) years, the units shall remain affordable
in accordance with N.J.A.C. 5:80-26.11(b) until the occupant household
elects to voluntarily depart.
(a)
Restricted rental units created as part of developments receiving
nine percent (9%) Low Income Housing Tax Credits must comply with
a control period of not less than a thirty (30) year compliance period
plus a fifteen (15) year extended use period.
(2)
Rehabilitated renter-occupied housing units that are improved
to code standards shall be subject to affordability controls for a
period of no less than ten (10) years.
(3)
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 Middlesex. A copy of the filed document shall be
provided to the Administrative Agent within thirty (30) days of the
receipt of a Certificate of Occupancy.
(4)
A restricted rental unit shall remain subject to the affordability
controls of this Ordinance, despite the occurrence of any of the following
events:
Q.
Price Restrictions for Rental Units; Leases.
(1)
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.
(2)
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.
(3)
Application fees (including the charge for any credit check)
shall not exceed five percent (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.
R.
Tenant income eligibility.
(1)
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:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to thirty percent
(30%) of median income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to fifty percent (50%)
of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than eighty percent (80%) of median
income.
(2)
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 thirty-five
percent (35%) [forty percent (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:
(a)
The household currently pays more than thirty-five percent (35%)
[forty percent (40%) for households eligible for age-restricted units]
of its gross household income for rent, and the proposed rent will
reduce its housing costs;
(b)
The household has consistently paid more than thirty-five percent
(35%) [forty percent (40%) for households eligible for age-restricted
units] of eligible monthly income for rent in the past and has proven
its ability to pay;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
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.
(3)
The applicant shall file documentation sufficient to establish
the existence of the circumstances in (2)(a) through (2)(e) above
with the Administrative Agent, who shall counsel the household on
budgeting.
S.
Conversions.
(1)
Each affordable housing unit created through the conversion
of a non-residential structure shall be considered a new housing unit
and shall be subject to the affordability controls for a new housing
unit.
T.
Alternative living arrangements.
(1)
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:
(2)
With the exception of units established with capital funding
through a twenty (20) year operating contract with the Department
of Human Services, Division of Developmental Disabilities, alternative
living arrangements shall have at least thirty (30) year controls
on affordability in accordance with UHAC, unless an alternative commitment
is approved by the Court.
(3)
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.
A.
The position of Municipal Housing Liaison for the City of Perth Amboy
is hereby established. The Municipal Housing Liaison shall be appointed
by duly adopted resolution of the City Mayor and Council and be subject
to the approval by the Superior Court.
B.
The Municipal Housing Liaison must be either a full-time or part-time
employee of the City of Perth Amboy.
C.
The Municipal Housing Liaison must meet the requirements for qualifications,
including initial and periodic training found in N.J.A.C. 5:93.
D.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the City
of Perth Amboy, including the following responsibilities which may
not be contracted out to the Administrative Agent:
(1)
Serving as the municipality's primary point of contact
for all inquiries from the State, affordable housing providers, Administrative
Agents and interested households;
(2)
When applicable, supervising any contracting Administrative
Agent.
(3)
Monitoring the status of all restricted units in the City of
Perth Amboy's Fair Share Plan;
(4)
Compiling, verifying and submitting annual reports as required
by the Superior Court;
(5)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable; and
(6)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Superior Court.
A.
The City shall designate by resolution of the City Mayor and Council,
subject to the approval of the Superior Court, one or more certified
and experienced Administrative Agents to administer all affordable
units in accordance with N.J.A.C. 5:93 and UHAC. The Administrative
Agent must have at least five (5) years of experience administering
affordable units in New Jersey pursuant to UHAC.
B.
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body and subject to approval
of the Superior Court. 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).
C.
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the Operating Manual, including those
set forth in N.J.A.C. 5:80- 26.14, 16 and 18 thereof, which includes:
(1)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by the Superior Court;
(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, although the ultimate responsibility for retaining
controls on the units rests with the municipality.
(9)
The Administrative Agent shall, as delegated by the City Mayor
and Council, have the authority to take all actions necessary and
appropriate to carry out its responsibilities, hereunder.
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 very-low-, 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 sixty (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 five hundred dollars ($500.00) or imprisonment
for a period not to exceed ninety (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 very-low-,
low- or moderate- income unit in violation of the regulations governing
affordable housing units, payment into the City of Perth Amboy 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 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, 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 very-low-, 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 very-low-,
low- and moderate-income unit of the violating owner shall be sold
at a sale price which is not less than the amount necessary to fully
satisfy and pay off any First Purchase Money Mortgage and prior liens
and the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have 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 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 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 (2) 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 (2) 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 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.
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 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 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 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.
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.
Appeals from all decisions of an Administrative Agent designated
pursuant to this Article shall be filed in writing with the City.
