The following terms, when used in this article, shall have the
meanings given herein:
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity designated by the Township to administer affordable
units in accordance with this article, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4, and, in the case of an ownership unit, that the sales
price for the unit conforms to the standards set forth in N.J.A.C.
5:80-26.6, as it 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 it may be amended and supplemented.
AFFORDABLE HOUSING DEVELOPMENT
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
A.
All the residents of the development wherein the unit is situated
are 62 years of age or older; or
B.
At least 80% of the units are occupied by one person who is
55 years of age or older; or
C.
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.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ALTERNATIVE LIVING ARRANGEMENTS
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
ASSISTED-LIVING RESIDENCE
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted-living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.), or any
successor agency charged with the administration of the Act.
COURT
The Superior Court of New Jersey, Law Division, Bergen County.
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development, including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
DEVELOPMENT
A.
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.
B.
A development containing both affordable units and market-rate
units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement and load-bearing structural
systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
NONEXEMPT SALE
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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted regional income limits published annually
by COAH or a successor entity.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for purposes of a rehabilitation
program.
To implement the fair share plan in a manner consistent with
the terms of the Settlement Agreement executed on November 21, 2018,
ensure the efficient use of land through compact forms of development
and to create realistic opportunities for the construction of affordable
housing, inclusionary zoning shall be permitted consistent with the
provisions of the Township of Saddle Brook's Housing Plan Element
and Fair Share Plan, and the terms of the Settlement Agreement:
A. Phasing schedule for inclusionary zoning. In inclusionary developments
the following schedule shall be followed:
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|
25%
|
0
|
25% + 1
|
10%
|
50%
|
50%
|
75%
|
75%
|
90%
|
100%
|
B. Fractional units. Inclusionary developments that result in an affordable
housing obligation that is fractional shall round up and provide the
additional affordable unit.
C. New construction.
(1) Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units.
(a)
The fair share obligation shall be divided equally between low-
and moderate-income units, except that where there is an odd number
of affordable housing units, the extra unit shall be a low-income
unit. At least 13% of all restricted units 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.
(b)
At least 25% of the obligation shall be met through rental units,
including at least half in rental units available to families.
(c)
A maximum of 25% of the Township's obligation may be met
with age-restricted units. At least half of all affordable units in
the Township's Plan shall be nonrestricted.
(d)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(e)
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
[1]
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
[2]
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
[3]
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
[4]
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(f)
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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit. The Township shall not
be permitted to claim credit to satisfy its obligations under the
Settlement Agreement for agerestricted units that exceed 25% of all
units developed.
(2) Accessibility requirements.
(a)
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.
(b)
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:
[1]
An adaptable toilet and bathing facility on the first floor;
and
[2]
An adaptable kitchen on the first floor; and
[3]
An interior accessible route of travel on the first floor; and
[4]
An adaptable room that can be used as a bedroom, with a door
or casing for the installation of a door, on the first floor; and
[5]
If not all of the foregoing requirements in Subsection
(b)[1] through
(b)[4] can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection
(b)[1] through
(b)[4] above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
[6]
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 Saddle Brook has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[a] 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.
[b] To this end, the builder of restricted units shall
deposit funds within the Township of Saddle Brook's Affordable
Housing Trust Fund sufficient to install accessible entrances in 10%
of the affordable units that have been constructed with adaptable
entrances.
[c] The funds deposited under Subsection (b)[6][c]
above shall be used by the Township of Saddle Brook 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.
[d] The developer of the restricted units shall submit
a design plan and cost estimate to the Construction Official of the
Township of Saddle Brook for the conversion of adaptable to accessible
entrances.
[e] Once the Construction Official has determined that
the design plan to convert the unit entrances from adaptable to accessible
meets the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7,
and that the cost estimate of such conversion is reasonable, payment
shall be made to the Township's Affordable Housing Trust Fund
in care of the Township Chief Financial Officer, who shall ensure
that the funds are deposited into the Affordable Housing Trust Fund
and appropriately earmarked.
[f] 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.
(3) Design.
(a)
In inclusionary developments, to the extent possible, low- and
moderate-income units shall be integrated with the market units.
(b)
In inclusionary developments, low- and moderate-income units
shall have access to all of the same common elements and facilities
as the market units.
(4) Maximum rents and sales prices.
(a)
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC, utilizing the regional income limits established by COAH
or a successor entity.
(b)
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.
(c)
The developers and/or municipal sponsors of restricted rental
units shall establish at least one rent for each bedroom type for
both low-income and moderate-income units, provided that at least
13% of all low- and moderate-income rental units shall be affordable
to very-low-income households, earning 30% or less of the regional
median household income, with such very-low-income units counted the
low-income housing requirement.
(d)
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.
(e)
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:
[1]
A studio shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
[3]
A two-bedroom unit shall be affordable to a three-person household;
[4]
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
[5]
A four-bedroom unit shall be affordable to a six-person household.
(f)
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:
[1]
A studio shall be affordable to a one-person household;
[2]
A one-bedroom unit shall be affordable to a one-and-one-half-person
household; and
[3]
A two-bedroom unit shall be affordable to a two-person household
or two one-person households.
(g)
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 it 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 it may be amended and supplemented.
(h)
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 it 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 it may be amended and
supplemented.
(i)
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price.
(j)
The rent of low- and moderate-income units may be increased
annually based on the permitted percentage increase in the Housing
Consumer Price Index for the United States. This increase shall not
exceed 9% in any one year. Rents for units constructed pursuant to
low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
(k)
Regional income limits shall be established for the region that
the Township is located within (i.e., Region 1) 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 the Township's
housing region. 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 80% of the regional weighted
average median income for a family of four. The income limit for a
low-income unit for a household of four shall be 50% of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income for a
family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than those for the
previous year.
(l)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection
(4)(a) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
D. Utilities.
(1) Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
(2) 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.
E. Occupancy standards. 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:
(1) Provide an occupant for each bedroom;
(2) Provide children of different sexes with separate bedrooms;
(3) Provide separate bedrooms for parents and children; and
(4) Prevent more than two persons from occupying a single bedroom.
F. Control periods for restricted ownership units and enforcement measures.
(1) Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as it may be amended and supplemented, and
each restricted ownership unit shall remain subject to the requirements
of this article for a period of at least 30 years, until Saddle Brook
takes action to release the unit from such requirements; prior to
such action, a restricted ownership unit shall remain subject to the
requirements of N.J.A.C. 5:80-26.1, as it may be amended and supplemented.
(2) The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
(3) 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.
(4) At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the administrative agent a recapture
note obligating the purchaser (as well as the purchaser's heirs,
successors and assigns) to repay, upon the first nonexempt sale after
the unit's release from the restrictions set forth in this article,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
(5) 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.
(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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as it may be amended and supplemented.
G. 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 it 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 master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowners' association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
(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 anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See Subsection
J.
H. 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 it 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.
(2) Notwithstanding the foregoing, however, the administrative agent
may, upon approval by the Township Council, and subject to the Court's
approval, permit moderate-income purchasers to buy low-income units
in housing markets if the administrative agent determines that there
is an insufficient number of eligible low-income purchasers to permit
prompt occupancy of the units. All such low-income units to be sold
to moderate-income households shall retain the required pricing and
pricing restrictions for low-income units.
(3) A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit.
(4) 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 homeowners' association fees, as applicable)
does not exceed 33% of the household's eligible monthly income.
I. Limitations on indebtedness secured by ownership unit; subordination.
(1) 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.
(2) 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).
J. Capital improvements to ownership units.
(1) 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.
(2) 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.
K. Control periods for restricted units.
(1) Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as it may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this article for a period of at least 30 years, until Saddle Brook
takes action to 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, as it may be amended and supplemented.
(2) 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 Bergen. The deed shall also identify each affordable
unit by apartment number and/or address and whether that unit is designated
as a very-low-, low- or moderate-income unit. Neither the unit nor
its affordability designation shall change throughout the term of
the deed restriction. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(3) A restricted rental unit shall remain subject to the affordability
controls of this article despite the occurrence of any of the following
events:
(a)
Sublease or assignment of the lease of the unit;
(b)
Sale or other voluntary transfer of the ownership of the unit;
or
(c)
The entry and enforcement of any judgment of foreclosure on
the property containing the unit.
(4) Projects financed with low-income housing tax credits shall have
restriction requirements with an extended compliance period, a thirty-year
compliance period and a fifteen-year extended use period.
L. Rent restrictions for rental units; leases.
(1) A written lease shall be required for all restricted rental units,
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease. A copy of the current lease
for each restricted rental unit shall be provided to the administrative
agent.
(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 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.
(4) Rent control or other pricing restrictions on affordable rental units
is prohibited.
M. Tenant income eligibility.
(1) Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as it 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 30% of median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 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 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 it 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 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;
(b)
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;
(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 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.
(3) The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsection
M(2)(a) through
(e) above with the administrative agent, who shall counsel the household on budgeting.
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed in writing with the Executive
Director of COAH or with the Superior Court, Bergen County Vicinage.