As used herein the following terms shall have the following
meanings:
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 responsible for the administration of affordable
units in accordance with this chapter, as well as N.J.A.C. 5:91, N.J.A.C.
5:93 and N.J.A.C. 5:80-26.1 et seq.
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 deed-restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:93-7.4; in the case of an ownership
unit, 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, 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.
AFFORDABLE HOUSING DEVELOPMENT
A housing development incorporated in the Housing Element
and Fair Share Plan, and including, but not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
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, credited
pursuant to N.J.A.C. 5:93, 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: 1) all the residents of the development where the unit
is situated are 62 years old or older; or 2) at least 80% of the units
are occupied by one person that is 55 years old or older (except that
persons younger than 19 may not be permanent residents); or 3) the
development has been designated by the Secretary of the United States
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(b)(2).
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 ARRANGEMENT
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 New Jersey Department of Community
Affairs; residential health-care facilities as regulated by the New
Jersey Department of Health and Senior Services; 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 licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining for four or more adult persons unrelated to the proprietor
and to assure that assisted living services are available when needed
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
The Council on Affordable Housing, which is in, but not part
of, the Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
require the repair or replacement of at least one 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 of a lot or any land, improved
or unimproved, which is proposed to be included in a proposed development,
including the holder of an option to contract or purchase, or other
person having an enforceable proprietary interest in such land.
DEVELOPMENT
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; 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.
DEVELOPMENT FEE
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.
EQUALIZED ASSESSED VALUE
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
FAIR SHARE PLAN
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the housing element,
including the draft ordinances necessary to implement that plan and
addresses the requirements of N.J.A.C. 5:93-5.
GREEN BUILDING STRATEGIES
Strategies that minimize the impact of development on the
environment and enhance the health, safety and well-being of residents
by producing durable, low-maintenance, resource-efficient housing
while making optimum use of existing infrastructure and community
services.
HOUSING ELEMENT
The portion of the municipality's Master Plan, required by
the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the
Act, that includes the information required by N.J.A.C. 5:93-5.1 and
establishes the Township's fair share obligation.
INCLUSIONARY DEVELOPMENT
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 use and the creation of new affordable units through the
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 median household income for the applicable COAH
housing region.
LOW-INCOME UNIT
A deed-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 residential building,
which includes, but is not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or 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 COAH
housing region, as approved by the New Jersey Superior Court.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income for
the applicable COAH housing region.
NONEXEMPT SALE
Any sale or transfer of ownership other than the transfer
of ownership between spouses; 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 (e.g., by lottery) by which 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.
REGIONAL ASSET LIMIT
The maximum housing value in each COAH housing region affordable
to a four-person household with an income of at 80% of the regional
median as defined by adopted/approved regional income limits.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6, which, for purposes of affordable housing credit, involves
at least one major system of the building or structure.
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 ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1
et seq., as may be amended and supplemented, but does not include
a market-rate unit financed under UHORP or MONI.
SPECIAL MASTER
An expert appointed by a Superior Court Judge to assist the
Court, the municipality and any intervenors or other interested parties
in applying the Mount Laurel Doctrine, including a determination of
municipal fair share and an evaluation of the effectiveness of the
municipality's Fair Share Plan.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
VERY-LOW-INCOME-HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the median household income within the applicable
COAH housing region.
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 rehabilitation crediting purposes.
The following requirements shall apply to all new or planned
developments that contain both market-rate and low- and moderate-income
housing units.
A. Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units, whether developed in
a single-phase development or in a multiphase development:
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. Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units
and shall be no further distant, on average, from common amenities
provided in the development than market-rate units.
C. Payments in lieu and off-site construction. The standards for the
collection of payments in lieu of constructing affordable units or
standards for constructing affordable units off site shall be in accordance
with the requirements below:
(1)
The base dollar amount of the payment in lieu of constructing
an affordable unit at the time of adoption of this chapter shall be
pursuant to COAH's regulations and/or the amount in a development
pro forma on file with the Township Clerk. This amount shall be adjusted
periodically by the Township to reflect the most current and accurate
market conditions or better cover the cost to the Township to subsidize
affordable housing construction. The payment shall be imposed as a
condition of development approval by the Planning Board.
(2)
During the development approval process, a developer may demonstrate to the governing body that the actual construction cost of an affordable unit less estimated capitalized revenue at the development in question is lower than the imposed payment in lieu in §
150-21.9A(1). At its discretion, the governing body may impose a payment in lieu amount equal or proximate to the amount estimated by the developer.
D. Utilities.
(1)
Affordable units shall utilize the same type of heating source
as market units within the affordable 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 the Section 8 program.
E. 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.
(a)
Within rental developments, of the total number of affordable
rental units, at least 13% shall be affordable to very-low-income
households.
(2)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units,
including at least 13% very-low income.
(3)
Affordable developments that are not age-restricted shall be
structured such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
F. Accessibility requirements:
(1)
The first floor of all new restricted townhouse dwelling units
and all restricted multistory dwelling units attached to at least
one other dwelling unit shall be subject to the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
(2)
All restricted townhouse dwelling units and all restricted multistory
dwelling units attached to at least one other dwelling unit shall
have the following features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.), and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Township 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 disabled person who is purchasing
or will reside in the dwelling unit, an accessible entrance shall
be installed.
[2] To this end, the builder of restricted units shall
deposit funds within the Township of Verona's 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 Subsection
F(2)(f)[2] herein shall be used by the Township for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4] The developer of the restricted units shall submit
a design plan and cost estimate for the conversion from adaptable
to accessible entrances to the construction official of the Township
of Verona.
[5] 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 of Verona's affordable housing trust
fund in care of the Municipal Treasurer, who shall ensure that the
funds are deposited into the affordable housing trust fund and appropriately
earmarked for the intended purpose.
(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 on the site. Determinations of site impracticability
shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
G. Maximum rents and sales prices.
(1)
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC and by the Superior Court, utilizing the established regional
income limits.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3)
The developers and/or municipal sponsors of restricted rental
units shall establish at least one rent for each bedroom type for
both low-income and moderate-income units.
(a)
At least 13% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(4)
The maximum sales price of restricted ownership units within
each affordable development shall be affordable to households earning
no more than 70% of median income, and each affordable development
must achieve an affordability average of 55% for restricted ownership
units; in achieving this affordability average, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
met:
(a)
A studio or efficiency unit shall be affordable to a one-person
household;
(b)
A one-bedroom unit shall be affordable to a 1 1/2 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 4 1/2 person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(a)
A studio or efficiency unit shall be affordable to a one-person
household;
(b)
A one-bedroom unit shall be affordable to a 1 1/2 person
household; and
(c)
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
(7)
The initial purchase price for all restricted ownership units
shall be calculated so that the monthly carrying cost of the unit,
including principal and interest (based on a mortgage loan equal to
95% of the purchase price and the Federal Reserve H.15 rate of interest),
taxes, homeowner and private mortgage insurance and condominium or
homeowner association fees do not exceed 28% of the eligible monthly
income of the appropriate size household as determined under N.J.A.C.
5:80-26.4, as may be amended and supplemented; provided, however,
that the price shall be subject to the affordability average requirement
of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price. Income limits for all units
for which income limits are not already established through a federal
program exempted from the Uniform Housing Affordability Controls pursuant
to N.J.A.C. 5:80-26.1 et seq. shall be updated by the Township annually
within 30 days of the publication of determinations of median income
by HUD as follows:
(a)
Regional income limits shall be established for the Region 2
based on the median income by household size, which shall be established
by a regional weighted average of the uncapped Section 8 income limits
published by HUD. To compute this regional income limit, the HUD determination
of median county income for a family of four is multiplied by the
estimated households within the county according to the most recent
decennial census. The resulting product for each county within the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial census in Region 2. 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.
(b)
The income limits calculated each year shall be the result of applying the percentages set forth in Subsection
G(9)(a) above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection
G(9)(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.
(10)
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area, upon its
publication for the prior calendar year. This increase shall not exceed
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.
H. Condominium and homeowners' association fees.
(1)
For any affordable housing unit that is part of a condominium
association and/or homeowner's association, the master deed shall
reflect that the association fee assessed for each affordable housing
unit shall be established at 100% of the market rate fee.