[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
The article is intended to assure compliance with the Council on
Affordable Housing (COAH) Second Round Substantive Rules at N.J.A.C.
5:93 et seq., and Uniform Housing Affordability Controls (UHAC) at
N.J.A.C. 5:80-26.1 et seq., except where modified, as well as the
Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and that very-low-,
low- and moderate-income units (affordable units) are created with
controls on affordability and that very-low-, low- and moderate-income
households shall occupy these units.
b.
The Town of Morristown 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. (hereinafter "Fair Share Plan"). The Fair Share Plan
was subsequently endorsed by the governing body. The Fair Share Plan
describes how the Town of Morristown shall address its fair share
of very-low-, low- and moderate-income housing as documented in the
Fair Share Plan itself, the settlement agreement entered into between
the Town and Fair Share Housing Center (FSHC) in August 2017 (hereinafter
"FSHC Settlement Agreement").
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
The Town of Morristown shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its court-approved Housing Element and Fair Share Plan:
a.
Beginning September 8, 2022, and on every anniversary of that date,
the Town agrees to provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs,
Council on Affordable Housing, or Local Government Services, or other
entity designated by the State of New Jersey, with a copy provided
to the Fair Share Housing Center (FSHC) and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs (NJDCA), Council on Affordable Housing
(COAH), or Local Government Services (NJLGS). The report shall include
information on the amount and purpose of all expenditures, the source
and amount of all deposits, updated totals, as well as a summary of
any anticipated deposits and expenditures.
b.
Beginning September 8, 2022, and on every anniversary of that date,
the Town agrees to provide annual reporting of the status of all affordable
housing activity within the municipality through posting on the municipal
website with a copy of such posting provided to the Fair Share Housing
Center, using forms previously developed for this purpose by COAH,
or any other forms endorsed by the court-appointed special master
and FSHC. The annual report shall include detailed updates on every
mechanism in the Town's plan, the location and the number of affordable
units approved, under construction, and built, information on the
bedroom and income distribution of the affordable units, and whether
the required UHAC-compliant deed restriction has been imposed on the
affordable units. This shall include updates on development in the
overlay zones as well as pursuant to the Town's mandatory set-aside
ordinance.
c.
The Fair Housing Act includes two provisions regarding action to
be taken by the Town during its ten-year repose period. The Town will
comply with those provisions as follows:
1.
For the midpoint realistic opportunity review initially due on July
1, 2020, and provided in June 2021, as required pursuant to N.J.S.A.
52:27D-313, the Town will post on its municipal website, with a copy
provided to the Fair Share Housing Center, a status report as to its
implementation of its plan and an analysis of whether any unbuilt
sites or unfulfilled mechanisms continue to present a realistic opportunity
and whether the mechanisms to meet unmet need should be revised or
supplemented. Such posting shall invite any interested party to submit
comments to the Town, with a copy to the Fair Share Housing Center,
regarding whether any sites no longer present a realistic opportunity
and should be replaced and whether the mechanisms to meet unmet need
should be revised or supplemented. Any interested party may by motion
request a hearing before the court regarding these issues.
2.
For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the entry of the Town's January 28, 2019 Judgment of Compliance and
Repose, which is due on or before January 28, 2022, as may be extended
by the terms of that certain consent order entered in the Superior
Court of New Jersey, Law Division, Morris County, Docket No. MRS-L-1697-15,
and every third year thereafter, the Town will post on its municipal
website, with a copy provided to the Fair Share Housing Center, a
status report as to its satisfaction of its very-low-income requirements,
including the family very-low-income requirements referenced herein.
Such posting shall invite any interested party to submit comments
to the Town and the Fair Share Housing Center on the issue of whether
the Town has complied with its very-low-income housing obligation
under the terms of this settlement.
3.
In addition to the foregoing postings, the Town may also elect to
file copies of its reports with COAH or its successor agency at the
state level.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
The following terms when used in this article shall have the
meanings given in this section:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.) as has been subsequently amended.
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, including an Administrative
Agent designated by a developer of affordable housing, applicable
COAH regulations and the Uniform Housing Affordability Controls (UHAC)
(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
and applicable law.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to very-low-,
low- and moderate-income households.
A sales price or rent within the means of a very-low-, low-
or moderate-income household as defined by the Fair Housing Act; 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 all or a portion of which consists
of restricted units.
A development included in the Town's Fair Share Plan, and
includes, but is not limited to, an inclusionary development, a municipal
construction project or a 100% affordable development but shall not
include a development with less than five units to require an affordable
housing component.
Any mechanism in the Town's Fair Share Plan prepared or implemented
to address the Town's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC Settlement Agreement,
or an order of the court.
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 housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) the development
has been designated by the Secretary of the U.S. Department of Housing
and Urban Development as "housing for older persons" as defined in
Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
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 boardinghomes 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 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 household, low-income household or moderate-income
household.
The New Jersey Council on Affordable Housing.
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.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
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.
A non-age-restricted affordable unit available to the general
public and not restricted to persons of a certain age, disability,
or background.
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to:
new construction, the conversion of a nonresidential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to very-low-, low- and moderate-income
households that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by the Department.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Morristown.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class A
beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by the Department's adopted Regional Income Limits published
annually by the Department.
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.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
The provisions of this article shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Town of Morristown pursuant
to the Town's most recently adopted Housing Element and Fair Share
Plan, but shall not have a retroactive effect in accordance with the
provisions of the time of application rule of the Municipal Land Use
Law, N.J.S.A. 40:55D-1, et seq.
b.
Moreover, this article shall apply to all developments that contain
very-low-, low-, and moderate-income housing units, including any
currently unanticipated future developments that will provide very-low-,
low- and moderate-income housing units.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
b.
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least ten-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the court.
c.
The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
In inclusionary developments the following phasing schedule,
located at N.J.A.C. 5:93-5.6(d), shall be followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Very-Low-, Low- and Moderate-Income Units
Completed
|
|---|---|
|
25%
|
0%
|
|
25% + 1 unit
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
Very-low/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.
At least 13% of all restricted units within each bedroom distribution
shall be very-low-income units (affordable to a household earning
30% or less of median income). The very-low-income units shall be
counted as part of the required number of low-income units within
the development.
3.
At least 25% of the obligation shall be met through rental units,
including at least half in rental units available to families.
4.
A maximum of 25% of the Town's obligation may be met with age-restricted
units. At least half of all affordable units in the Town's Plan shall
be available to families.
5.
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units including
the requirement that 13% that shall be very-low-income.
6.
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 very-low-, low-, and moderate-income
units;
(b)
At least 30% of the total very-low-, low-, and moderate-income
units shall be two-bedroom units;
(c)
At least 20% of the total very-low-, low-, and moderate-income
units shall be three-bedroom units; and
(d)
The remaining affordable 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
very-low-, low-, and moderate-income units within the inclusionary
development. This standard may be met by having all one-bedroom units
or by having a two-bedroom unit for each efficiency unit.
b.
Accessibility requirements.
1.
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
2.
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(e)
If not all of the foregoing requirements in Paragraphs b2(a)
through (d) can be satisfied, then an interior accessible route of
travel must be provided between stories within an individual unit,
but if all of the terms of Paragraphs b2(a) through (d) above have
been satisfied, then an interior accessible route of travel shall
not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Town has collected funds from the developer
sufficient to make 10% of the adaptable entrances in the development
accessible:
(1)
Where a unit has been constructed with an adaptable entrance,
upon the request of a person with disabilities 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 Town affordable housing trust fund sufficient to install
accessible entrances in 10% of the affordable units that have been
constructed with adaptable entrances.
(3)
The funds deposited under Paragraph b2(f)(2) above shall be
used by the Town for the sole purpose of making the adaptable entrance
of an affordable unit accessible when requested to do so by a person
with a disability who occupies or intends to occupy the unit and requires
an accessible entrance.
(4)
The developer of the restricted units shall submit a design
plan and cost estimate to the Town Construction Official for the conversion
of adaptable to accessible entrances.
(5)
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Town's Affordable Housing Trust Fund in care of the
Town Chief Financial Officer who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriately earmarked.
(g)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
c.
Design.
1.
In future inclusionary developments, very-low-, low- and moderate-income
units shall, to the extent reasonably practicable, be integrated with
the market units.
2.
In inclusionary developments, very-low-, low-, and moderate-income
units shall have access to all of the same common elements and facilities
as the market units. The residents of the affordable units shall have
full and equal access to all of the amenities, entrances, common areas,
and recreation areas and facilities as the residents of the market-rate
units.
d.
Maximum rents and sales prices.
1.
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and by the
Superior 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 rental units
shall be affordable to households earning no more than 52% of median
income.
3.
The developers and/or municipal sponsors of restricted units shall
establish at least one rent for each bedroom type for both low-income
and moderate-income units, provided that at least 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households, earning 30% or less of the regional median household income,
with such very-low-income units counted toward the low-income housing
requirement.
4.
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type, provided
that at least 13% of all low- and moderate-income rental units shall
be affordable to very-low-income households, earning 30% or less of
the regional median household income, with such very-low-income units
counted toward the low-income housing requirement.
5.
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, the
following standards shall be used:
(a)
A studio 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 sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
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
size household, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
9.
Income limits for all units that are part of the Town's Housing Element
and Fair Share Plan, and 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 Town
annually within 30 days of the publication of determinations of median
income by HUD as follows:
(a)
The income limit for a moderate-income unit for a household
of four shall be 80% of the HUD determination of the median income
for COAH Region 2 for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the median income for COAH Region 2 for a family of four. The income
limit for a very-low-income unit for a household of four shall be
30% of the HUD determination of the median income for COAH Region
2 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 the previous
year.
(b)
The income limits are based on carrying out the process in Paragraph
d9(a) based on HUD determination of median income for the current
fiscal year, and shall be utilized by the Town until new income limits
are available.
10.
In establishing sale prices and rents of affordable housing
units, the Administrative Agent shall follow the procedures set forth
in UHAC, utilizing the regional income limits established by the Council.
(a)
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 determined pursuant
to Paragraph d9. In no event shall the maximum resale price established
by the Administrative Agent be lower than the last recorded purchase
price.
(b)
The rents of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the Northern New Jersey Area, upon
its publication for the prior calendar year. This increase shall not
exceed 9% in any one year. Rents for units constructed pursuant to
low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
b.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by HUD for its Section 8 program.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
In referring certified households to specific restricted units,
the Administrative Agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
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 this chapter for a period of at least 30 years and thereafter unless
and until the Town takes action by ordinance, in its sole discretion,
to either extend or release the unit from such requirements; prior
to such action, a restricted ownership unit must remain subject to
the requirements of N.J.A.C. 5:80-26.1 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 nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
d.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Administrative Agent a recapture
note obligating the purchaser (as well as the purchaser's heirs, successors
and assigns) to repay, upon the first nonexempt sale after the unit's
release from the restrictions set forth in this chapter, an amount
equal to the difference between the unit's nonrestricted fair market
value and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
e.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
f.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all Uniform Construction Code
standards upon the first transfer of title following the removal of
the restrictions provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
a.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
b.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
c.
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by very-low-, low- and moderate-income purchasers
and those paid by market purchasers unless the master deed for the
inclusionary project was executed prior to the enactment of UHAC.
d.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
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 eligible monthly income.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
b.
With the exception of first purchase money mortgages, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
b.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale, provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
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 this chapter for a period of at least 30 years and thereafter unless
and until the Town takes action by resolution, in its sole discretion,
to extend or release the unit from such requirements. Prior to such
action, a restricted rental unit shall remain subject to the requirements
of N.J.A.C. 5:80-26.1 for at least 30 years. If the Town elects to
release the controls after at least 30 years, the Town shall ensure
that the affordability controls shall remain in effect until the date
on which a rental unit shall become vacant due to the voluntary departure
of the occupant household.
b.
Deeds of all real property that includes 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 Morris. A copy of the filed and recorded document
shall be provided to the Administrative Agent within 30 days of the
receipt of a certificate of occupancy.
c.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
A written lease shall be required for all restricted rental units,
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease so long as it is consistent
with the approved rent. 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 paperwork or checks)
shall not exceed 5% of the monthly rent of the applicable restricted
unit or $50, whichever is lesser, 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 chapter.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
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 household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
1.
The household currently pays more than 35% (40% for households
eligible for age-restricted units) of its gross household income for
rent, and the proposed rent will reduce its housing costs;
2.
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
3.
The household is currently in substandard or overcrowded living
conditions;
4.
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
5.
The household documents reliable anticipated third-party assistance
from an outside source, such as a family member, in a form acceptable
to the Administrative Agent and the owner of the unit.
c.
The applicant shall file documentation sufficient to establish the
existence of the circumstances in Paragraphs b1 through b5 above with
the Administrative Agent, who shall counsel the household on budgeting.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
income-eligible 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.[1]
[1]
Editor's Note: See N.J.S.A. 46:8-52 et seq.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
The Administrative Agent shall be an independent entity serving
under contract to and reporting to the Town or as designated by a
developer of inclusionary housing that has been approved by the municipality.
For new sale and rental developments, all of the fees of the Administrative
Agent shall be paid by the owners of the affordable units for which
the services of the Administrative Agent are required. For resales,
single-family homeowners and condominium homeowners shall be required
to pay 3% of the sales price for services provided by the Administrative
Agent related to the resale of their homes. That fee shall be collected
at closing and paid directly to the Administrative Agent. The Administrative
Agent shall perform the duties and responsibilities of an Administrative
Agent as set forth in UHAC, including those set forth in N.J.A.C.
5:80-26.14, 16 and 18 thereof, which includes:
a.
Affirmative marketing.
1.
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Town's affirmative marketing
plan and the provisions of N.J.A.C. 5:80-26.15; and
2.
Providing counseling or contracting to provide counseling services
to very-low-, low- and moderate-income applicants on subjects such
as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
b.
Household certification.
1.
Soliciting, scheduling, conducting and following up on interviews
with interested households; and
2.
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a very-low-, low- or moderate-income unit; and
3.
Providing written notification to each applicant as to the determination
of eligibility or noneligibility; and
4.
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.; and
5.
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
and
6.
Employing a random selection process as provided in the affirmative
marketing plan of the Town when referring households for certification
to affordable units; and
7.
Ensuring income-eligible applicants are not prohibited from
access to housing, e.g., by not requiring a Social Security number
if unavailable; and
8.
Notifying the following entities of the availability of affordable
housing units in the Town of Morristown: the Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
NORWESCAP, the Supportive Housing Association, and the Central Jersey
Housing Resource Center.
c.
Affordability controls.
1.
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
2.
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
3.
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Morris
County Register of Deeds or County Clerk's office after the termination
of the affordability controls for each restricted unit;
4.
Communicating with lenders regarding foreclosures; and
5.
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
d.
Resales and rentals:
1.
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or rental; and
2.
Instituting and maintaining an effective means of communicating
information to very-low-, low- and moderate-income households regarding
the availability of restricted units for resale or rerental.
e.
Processing requests from unit owners.
1.
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
2.
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air-conditioning
systems;
3.
Notifying the Town of an owner's intent to sell a restricted
unit; and
4.
Making determinations on requests by owners of restricted units
for hardship waivers.
f.
Enforcement.
1.
Securing annually from the Town a list of all affordable housing
units for which tax bills are mailed to absentee owners, and notifying
all such owners that they must either move back to their unit or sell
it;
2.
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
Administrative Agent;
3.
Posting annually in all rental properties, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the Administrative Agent where complaints
of excess rent or other charges can be made;
4.
Sending annual mailings to all owners of affordable dwelling
units, reminding them of the notices and requirements outlined in
N.J.A.C. 5:80-26.18(d)4;
5.
Establishing a program for diverting unlawful rent payments
to the Town's Affordable Housing Trust Fund; and
6.
Creating and publishing a written operating manual for each
affordable housing program administered by the Administrative Agent,
to be approved by the Town Mayor and Council and the court, setting
forth procedures for administering the affordability controls.
g.
Additional responsibilities.
1.
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
2.
The Administrative Agent shall prepare monitoring reports for
submission to the municipal housing liaison in time to meet any monitoring
requirements and deadlines imposed by the court.
3.
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
The Town shall adopt by resolution an affirmative marketing plan,
subject to approval of the court, that is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
b.
The affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The affirmative
marketing plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
In addition, the affirmative marketing plan shall maintain certain
notification requirements. It is a continuing program that directs
marketing activities toward Housing Region 2 and is required to be
followed throughout the period of restriction.
c.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in Housing Region 2, comprised
of Essex, Morris, Union and Warren Counties.
d.
The Town has the ultimate responsibility for adopting the affirmative
marketing plan and for the proper administration of the affirmative
marketing program, including initial sales and rentals and resales
and rerentals. The Administrative Agent designated by the Town shall
implement the affirmative marketing plan to assure the affirmative
marketing of all affordable units.
e.
In implementing the affirmative marketing plan, the Administrative
Agent shall provide a list of counseling services to very-low-, low-
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
f.
The affirmative marketing plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the affirmative marketing plan, the Administrative Agent shall consider
the use of language translations where appropriate.
g.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy and shall include posting of all availabilities
on the New Jersey Housing Resource Center website in accordance with
applicable law.
h.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the Town in which the units are located; and the developer's rental
office. Preapplications shall be emailed or mailed to prospective
applicants upon request.
i.
In addition to other affirmative marketing strategies, the Administrative
Agent shall provide specific notice of the availability of affordable
housing units in Morristown, and copies of the applications forms,
to the following entities: the Fair Share Housing Center, the New
Jersey State Conference of the NAACP, the Latino Action Network, the
Morris County Branch of the NAACP, Homeless Solutions of Morristown,
NORWESCAP, the Supportive Housing Association, and the Central Jersey
Housing Resource Center.
j.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
a.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the Town shall
have all remedies provided at law or equity, including but not limited
to foreclosure, tenant eviction, a requirement for household recertification,
acceleration of all sums due under a mortgage, recuperation of any
funds from a sale in violation of the regulations, injunctive relief
to prevent further violation of the regulations, entry on the premises,
and specific performance.
b.
After providing written notice of a violation to an owner, developer
or tenant of a very-low-, low- or moderate-income unit and advising
the owner, developer or tenant of the penalties for such violations,
the Town may take the following action(s) against the owner, developer
or tenant for any violation that remains uncured for a period of 60
days after service of the written notice:
1.
The Town may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation or violations of the regulations governing the
affordable housing unit. If the owner, developer or tenant is adjudged
by the court to have violated any provision of the regulations governing
affordable housing units, the owner, developer or tenant shall be
subject to one or more of the following penalties, at the discretion
of the court:
(a)
A fine of not more than $2,000 per day or imprisonment for a
period not to exceed 90 days, or both, provided that each and every
day that the violation continues or exists shall be considered a separate
and specific violation of these provisions and not a continuation
of the initial offense;
(b)
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Town affordable housing trust fund of the
gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a 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 Town may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any such judgment shall be enforceable as if the same were a judgment
of default of the first purchase money mortgage and shall constitute
a lien against the low- or moderate-income unit.
(a)
The judgment shall be enforceable, at the option of the Town,
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 Town,
including attorney's fees. The violating owner shall have his right
to possession terminated as well as his title conveyed pursuant to
the sheriff's sale.
(b)
The proceeds of the sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the very-low-, low- and moderate-income unit. The excess, if
any, shall be applied to reimburse the Town 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 Town in full as aforesaid, the violating owner shall be personally
responsible for the full extent of such deficiency, in addition to
any and all costs incurred by the Town 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 Town 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 Town 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 Town. Any interest accrued
or earned on such balance while being held in escrow shall belong
to and shall be paid to the Town, whether such balance shall be paid
to the owner or forfeited to the Town.
(c)
Foreclosure by the Town due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the very-low-, low- and moderate-income unit. Title shall
be conveyed to the purchaser at the sheriff's sale, subject to the
restrictions and provisions of the regulations governing the affordable
housing unit. The owner determined to be in violation of the provisions
of this plan and from whom title and possession were taken by means
of the sheriff's sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the Town may acquire title to the very-low-, low- and
moderate-income unit by satisfying the first purchase money mortgage
and any prior liens and crediting the violating owner with an amount
equal to the difference between the first purchase money mortgage
and any prior liens and costs of the enforcement proceedings, including
legal fees and the maximum resale price for which the very-low-, low-
and moderate-income unit could have been sold under the terms of the
regulations governing affordable housing units. This excess shall
be treated in the same manner as the excess which would have been
realized from an actual sale as previously described.
(e)
Failure of the very-low-, low- and moderate-income unit to be
either sold at the sheriff's sale or acquired by the Town shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the Town, with such offer to
purchase being equal to the maximum resale price of the very-low-,
low- and moderate-income unit as permitted by the regulations governing
affordable housing units.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
[Added 9-14-2022 by Ord.
No. O-29-2022; amended 8-8-2023 by Ord. No. O-11-2023]
Appeals from all decisions of an Administrative Agent appointed
pursuant to this chapter shall be filed in writing with the court.
