[HISTORY: Adopted by the City Council of the City of Perth Amboy 8-10-2022 by Ord. No. 2041-2022. Amendments noted where applicable.]
The purpose of this chapter is to create mixed-income housing through new construction to assist the City in promoting the creation of inclusionary developments and affordable housing as the City grows and attracts new market-rate residential development.
AFFORDABLE HOUSING
Means residential housing that is restricted for occupancy by households whose combined annual income for all members does not exceed eighty percent (80%) of the median income. This term shall refer to the broad classification, and not be confused with more specific terms that define different income divisions, such as very-low-income, low-income, and moderate-income.
APPROVING AUTHORITY
Means the Zoning Board of Adjustment or the Planning Board, whichever land use board has jurisdiction over the subject application.
DEVELOPER
Means any person, partnership, association, entity, company or corporation that is the legal or beneficial owner or owners of a lot or any land proposed to be included in a proposed development including the holder of an option to contract or purchase, or other person having an enforceable proprietary interest in such land.
DEVELOPMENT
Means the division of a parcel of land into two or more parcels, the construction, redevelopment, 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.
FHA
Means the Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.) as has been subsequently amended.
INCLUSIONARY DEVELOPMENT
Means a development that contains both affordable housing units and market-rate housing 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.
LOW-INCOME HOUSEHOLD
Means a household with a total gross annual household income equal to fifty percent (50%) or less of the median household income.
LOW-INCOME UNIT
Means a restricted unit that is affordable to a low-income household.
MARKET-RATE UNITS
Means housing not restricted to very-low-, low-, and moderate-income households that may sell or rent at any price.
MEDIAN-INCOME
Means the median income by household size for Region 3 (Middlesex County's region).
MODERATE-INCOME HOUSEHOLD
Means 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.
MODERATE-INCOME UNITS
Means a restricted unit that is affordable to a moderate-income household.
RESIDENTIAL
Means any real property and the improvements, buildings, structures or house thereon, whether single, two-family or multi-family, whether or not owner occupied, used for residential purposes.
UHAC
Means the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq., as may be supplemented or amended.
VERY-LOW-INCOME HOUSEHOLD
Means a household with a total gross annual household income equal to thirty percent (30%) or less of the median household income.
VERY-LOW-INCOME UNIT
Means a restricted unit that is affordable to a very-low-income household.
A. 
The following developments shall comply with the affordable housing set-aside and other requirements of this chapter:
(1) 
All developments with a residential component, including mixed-use developments, for which a developer requests and/or obtains increased residential units or increased residential floor area (i) as a result of variance(s) pursuant to N.J.S.A. 40:55D-70(c) and (d); (ii) as a result of a rezoning; or (iii) as a result of the adoption of a new or amended redevelopment/rehabilitation plan pursuant to the Local Redevelopment and Housing Law.
(2) 
All developments with a residential component, including mixed-use developments, that obtain a tax abatement/payment in lieu of taxes from the City, low income housing tax credits and/or tax-exempt bond financing from the New Jersey Housing Mortgage Finance Agency, funding from the Economic Development Authority Aspire program or similar program, and/or any other State support pursuant to N.J.S.A. 52:27D-329.9(b).
(3) 
All developments with a residential component, including mixed-use developments, that are in an existing redevelopment plan that already contains affordability requirements, including but not limited to those projects within the Gateway Area Redevelopment Plan, Waterfront Redevelopment Plan, and Northern Industrial Redevelopment Plan that have not received Planning Board approval as of the effective date of this chapter, or projects that have received Planning Board approval as of the effective date of this chapter and are subsequently amended or subject to new Planning Board approval after the effective date of this chapter.
Editor's Note: This chapter was adopted 8-10-2022 by Ord. No. 2041-2022.
B. 
Nothing herein precludes the City of Perth Amboy or approving authority from requiring an affordable housing set-aside in a development not required to have a set-aside pursuant to this chapter or requiring a higher affordable housing set-aside in any development in accordance with N.J.S.A. 52:27D-311(h) and applicable law.
A. 
Each development subject to this chapter shall contain an on-site affordable housing set-aside subject to the following:
Total Number of Units
Minimum Affordable Housing Set-Aside %
10 and under
None*
11-99
10%
100-149
15%
150-199
17.5%
200 and over
20%
*
Shall be subject to a development fee
B. 
Irrespective of the total number of units, all developments that obtain a tax abatement/payment in lieu of taxes from the City, low income housing tax credits and/or tax-exempt bond financing from the New Jersey Housing Mortgage Finance Agency, funding from the Economic Development Authority Aspire program or similar program, and/or any other State support pursuant to N.J.S.A. 52:27d-329.9(b), shall set aside at least twenty percent (20%) of the total number of residential units on-site as affordable housing.
A developer subject to the mandatory affordable housing set-aside may request, and the approving authority may, at its discretion, grant additional incentives for affordable housing, including but not limited to a density bonus, a reduction in the off-street parking spaces otherwise required, and/or a reduction in the minimum setback requirements.
All subdivision and site plan approvals of qualifying developments shall be conditioned upon compliance with the provisions of this chapter, including the following:
A. 
No subdivision shall be permitted or approved for the purpose of avoiding compliance with the mandatory affordable housing set-aside. A developer may not, for example, subdivide a project into two lots and then plan each of them to produce a number of units below the threshold. The approving authority may impose any reasonable conditions to ensure such compliance.
B. 
In the event the number of affordable housing units to be provided incudes a fraction, the number shall be rounded up if the fractional amount is 0.5 or greater and rounded down if the fractional amount is less than 0.5. The developer shall provide a payment in lieu of constructing affordable units for the fraction of a unit less than 0.5. The payment in lieu shall be based on the amounts established in N.J.A.C. 5:97-6.4(c).
C. 
All affordable units created shall fully comply with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq. ("UHAC"), including but not limited to the required bedroom and income distribution, with the sole exception that thirteen percent (13%) of the affordable units shall be required to be restricted for very-low-income households earning thirty percent (30%) or less of the median income pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301, et seq. ("FHA").
D. 
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.
E. 
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.
F. 
Affordable units shall be integrated 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.
G. 
Affordable units shall be subject to affordability controls of at least thirty (30) years from the date of initial occupancy and affordable deed restrictions as otherwise provided for by UHAC, with the sole exception that very low income shall be defined as at or below thirty percent (30%) of median income pursuant to the Fair Housing Act, and the affordability controls shall remain unless and until the municipality, in its sole discretion, takes action to extend or release the unit from such controls after at least thirty (30) years.
H. 
Construction of the affordable and market units shall be phased in compliance with N.J.A.C. 5:93-5.6(d).
I. 
Affordable units shall be affirmatively marketed in accordance with UHAC and applicable law. The affirmative marketing shall include posting of all affordable units on the New Jersey Housing Resource Center website in accordance with applicable law.
J. 
The mandatory affordable housing set-aside shall not give any developer the right to any rezoning, variance, redevelopment designation or redevelopment or rehabilitation plan approval, or any other such relief, or establish any obligation on the part of the municipality to grant such rezoning, variance, redevelopment designation, redevelopment or rehabilitation plan approval, or other such or further relief.
K. 
No developer may make a payment in lieu of constructing affordable units on site, except for fractional units as noted above.
Upon a violation of any of the provisions of this chapter, any designated City official shall give written notice to the developer specifying the nature of the violation and require corrective action within thirty (30) days of the notice.
If the developer does not correct the violation within the time specified, the developer shall, for each and every violation, be fined up to a maximum of two-thousand dollars ($2,000.00) a day that such violation continues after such notice until the violation is corrected.
If any article, section, subsection, sentence, clause or phrase of this chapter is, for any reason, held by a court of competent jurisdiction to be unconstitutional or invalid, such decision shall not affect the remaining portions of this chapter and they shall remain in full force and effect and shall be deemed valid and effective.
In the event of any inconsistencies between the provisions of this chapter and any prior ordinance of the municipality, the provisions hereof shall be determined to govern and those inconsistent provisions shall be repealed to the extent of such inconsistency.
This chapter shall take effect upon its adoption by the Municipal Council. The provisions of this chapter shall be applicable within the entire municipality upon final adoption and shall become a part of the Perth Amboy Code once adopted and incorporated in the official copies of the City Code.