[HISTORY: Adopted by the Mayor and Council of the Borough
of Harrington Park 3-13-2023 by Ord. No. 769.[1] Amendments noted where applicable.]
Attachment 1 - Schedule A Mandatory Deed Restriction for Rental Projects
Attachment 2 - Schedule B Mandatory Deed Form for ownership Units
Attachment 2 - Schedule B Mandatory Deed Form for ownership Units[1]
Editor's Note: This ordinance also superseded former Ch. 85,
Affordable Housing, adopted 6-17-2019 by Ord. No. 734.
A.
Affordable housing obligation.
(1)
This chapter sets forth regulations regarding the low- and moderate-income
housing units in the Borough of Harrington Park consistent with the
provisions known as the "Substantive Rules of the New Jersey Council
on Affordable Housing," the Uniform Housing Affordability Controls
("UHAC"), N.J.A.C. 5:80-26.1 et seq., and the Borough's constitutional
obligation to provide a fair share of affordable housing for low-
and moderate-income households. In addition, this chapter applies
requirements for very-low-income housing established in P.L. 2008,
c. 46 (the "Roberts Bill").[1]
[1]
Editor's Note: See N.J.S.A. 52:27D-329.1 et seq.
(2)
This chapter is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This chapter shall apply except where inconsistent with
applicable law.
(3)
The Borough of Harrington Park 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. The Fair Share Plan has been endorsed
by the governing body. The Fair Share Plan describes the ways Harrington
Park Borough shall address its fair share for low- and moderate-income
housing as determined by the Superior Court and documented in the
Housing Element.
(4)
This chapter implements and incorporates the Fair Share Plan and
addresses the requirements of the Act and regulations thereunder,
as may be amended and supplemented.
(5)
The Borough shall file monitoring reports with the Superior Court
and place the reports on its municipal website. Any plan evaluation
report of the Housing Element and Fair Share Plan and monitoring prepared
by the Special Master shall be available to the public at the Borough
of Harrington Park Municipal Building, 85 Harriot Avenue, Harrington
Park, New Jersey.
B.
Monitoring and reporting requirements. The Borough of Harrington
Park 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:
(1)
Beginning on November 21, 2017, and on every anniversary of that
date through July 1, 2025, the Township agrees to provide annual reporting
of its affordable housing trust fund activity to the New Jersey Department
of Community Affairs, Committee on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to 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), Committee on Affordable
Housing (COAH), or Local Government Services (NJLGS). The reporting
shall include an accounting of all affordable housing trust fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
(2)
Beginning on November 21, 2017, and on every anniversary of that
date through July 27, 2025, the Township 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 Fair Share Housing Center, using forms
previously developed for this purpose by COAH or any other forms endorsed
by the Special Master and FSHC.
(3)
By July 1, 2022, as required pursuant to N.J.S.A. 52:27D-313, the
Township will post on its municipal website, with a copy provided
to FSHC, 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 any mechanisms
to meet unmet need should be revised or supplemented. Such posting
shall invite any interested party to submit comments to the municipality,
with a copy to FSHC, regarding whether any sites no longer present
a realistic opportunity and should be replaced and whether any 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.
(4)
By December 21, 2017, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the Township will post on its municipal
website, with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
C.
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
AGENCY
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED LIVING RESIDENCE
BOROUGH
CERTIFIED HOUSEHOLD
COAH
COMMISSIONER
CONSTRUCTION
COUNCIL
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
EQUALIZED ASSESSED VALUE
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN-INCOME HOUSEHOLD
MIXED USE DEVELOPMENT
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
NONEXEMPT SALE
NONRESIDENTIAL DEVELOPMENT
NONRESIDENTIAL DEVELOPMENT FEE
RANDOM SELECTION PROCESS
RECREATIONAL FACILITIES AND COMMUNITY CENTER
REGIONAL ASSET LIMIT
REHABILITATION
RELATING TO THE PROVISION OF HOUSING
RENT
RESTRICTED UNIT
SPECIAL MASTER
SPENDING PLAN
TREASURER
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
Definitions. The following terms when used in this chapter shall
have the meanings given in this section:
A second dwelling unit on a lot containing single-family
dwelling, which existed at the time of the adoption of this article,
which second unit may be located within a principal structure, added
to a principal structure or located in a separate accessory building.
The creation of such a dwelling unit shall be clearly incidental to
the primary use of the property as a single-family dwelling and shall
in no way confer upon the property owner any future rights to subdivide
the existing lot in order to place each unit on a separate lot unless
such a subdivision and the structures involved could conform to all
municipal zoning standards. Accessory apartments shall conform to
the requirements of the New Jersey Council on Affordable Housing.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household; 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 Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, and/or
funded through an affordable housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. "Alternate living arrangements" includes, but is not limited
to: transitional facilities for the homeless, Class A, B, C, D, and
E boarding homes, as regulated by the New Jersey Department of Community
Affairs; residential health care facilities as regulated by the New
Jersey Department of Health; group homes for the developmentally disabled
and mentally ill as licensed and/or regulated by the New Jersey Department
of Human Services; and congregate living arrangements.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four 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.
The Borough of Harrington Park, Bergen County, New Jersey.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of,
the Department of Community Affairs of the State of New Jersey, that
was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.).
The Commissioner of Community Affairs.
New construction and additions, but does not include alterations,
reconstruction, renovations, and repairs as those terms are defined
under the State Uniform Construction Code promulgated pursuant to
the "State Uniform Construction Code Act," P.L. 1975, c. 217 (N.J.S.A.
52:27D-119 et seq.).
The Council on Affordable Housing, established pursuant to
P.L. 1985, c. 222 (C.52:27D-301 et al.).
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.
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).
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 low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH or approved by the New Jersey Superior
Court.
Any development which includes both a nonresidential development
component and a residential development component, and shall include
developments for which: 1) there is a common developer for both the
residential development component and the nonresidential development
component, provided that for purposes of this definition, multiple
persons and entities may be considered a common developer if there
is a contractual relationship among them obligating each entity to
develop at least a portion of the residential or nonresidential development,
or both, or otherwise to contribute resources to the development;
and 2) the residential and nonresidential developments are located
on the same lot or adjoining lots, including but not limited to lots
separated by a street, a river, or another geographical feature.
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.
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.
1) any building or structure, or portion thereof, including
but not limited to any appurtenant improvements, which is designated
to a use group other than a residential use group according to the
State Uniform Construction Code promulgated to effectuate the "State
Uniform Construction Code Act," P.L. 1975, c. 217 (N.J.S.A. 52:27D-119
et seq.), including any subsequent amendments or revisions thereto;
2) hotels, motels, vacation timeshares, and child-care facilities;
and 3) the entirety of all continuing care facilities within a continuing
care retirement community which is subject to the "Continuing Care
Retirement Community Regulation and Financial Disclosure Act," P.L.
1986, c.103 (N.J.S.A. 52:27D-330 et seq.).
The fee authorized to be imposed pursuant to Sections 32
through 38 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1 through N.J.S.A.
40:55D-8.7).
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).
Any indoor or outdoor buildings, spaces, structures, or improvements
intended for active or passive recreation, including but not limited
to ball fields, meeting halls, and classrooms, accommodating either
organized or informal activity; and "senior center" means any recreational
facility or community center with activities and services oriented
towards serving senior citizens.
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/approved regional income limits.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
Shall be liberally construed to include the construction,
maintenance, or operation of housing, including but not limited to
the provision of services to such housing and the funding of any of
the above.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
A method of allocating funds collected and to be collected
pursuant to an approved municipal development fee ordinance, or pursuant
to P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.1 et al.) for the purpose
of meeting the housing needs of low- and moderate-income individuals.
The Treasurer of the State of New Jersey.
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.
D.
Applicability.
(1)
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Borough of Harrington Park
pursuant to the Borough's most recently adopted Housing Element
and Fair Share Plan.
(2)
Moreover, this chapter shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units and including any developments funded with low-income housing
tax credits.
(3)
For inclusionary projects in which the low and moderate units are
to be offered for sale, the appropriate set-aside percentage is 20%;
for projects on which the low and moderate units are to be offered
for rent, the appropriate set-aside percentage is 15%.
E.
Alternative living arrangements.
(1)
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8[2] and UHAC, with the following exceptions:
(a)
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however,
that the units or bedrooms may be affirmatively marketed by the provider
in accordance with an alternative plan approved by the Court;
(b)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[2]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
(2)
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 thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
(3)
The service provider for the alternative living arrangement shall
act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
F.
Accessory Apartment Program.
(1)
All accessory apartments shall comply with the following:
(a)
Accessory apartments shall be a permitted accessory use in the
R-1, R-2 and R-3 Zones.
(b)
Accessory apartments shall conform to the bulk requirements
of the zone in which they are located, except for minimum lot size.
For the purposes of this article, detached accessory apartments shall
be considered structures, and accessory apartments attached to a principal
dwelling shall be considered a principal structure.
(c)
The minimum lot size for accessory apartments in all zones shall
be 7,500 square feet, except that where a property which is less than
7,500 square feet already contains an existing accessory structure
which can be converted into an accessory apartment without increase
in its building footprint, such a unit can be counted as a qualifying
accessory apartment, subject to all of the provisions and limitations
specified herein.
(d)
Accessory apartments shall comply with all applicable codes
and standards of the State of New Jersey and the Borough of Harrington
Park. Each apartment shall contain at least 500 square feet of gross
floor area, a minimum of two rooms and shall also contain a bathroom
and kitchen facilities. Accessory apartments shall also have a separate
entrance and, where attached to a principal structure, shall not have
direct internal access.
(e)
Accessory apartments shall be rented only to a household which
is either a low- or moderate- income household in accordance with
N.J.A.C. 5.93-5.9[3] at the time of initial occupancy. Rents shall be affordable
to low- and moderate-income households and include appropriate utility
allowances, in accordance with N.J.A.C. 5:93-7.4. One-half of the
accessory apartments created shall be for low-income households; the
other half shall be for moderate-income households.
[3]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
(f)
Properties containing accessory apartments shall be deed restricted
to ensure that the accessory apartment shall be rented only to a low-
or moderate-income household for a period of at least 10 years. Said
deed restriction shall run with the land and shall be assignable to
all successors or heirs.
(g)
Each accessory apartment shall be connected to adequate potable
water and sewage disposal systems.
(h)
Accessory apartments shall be affirmatively marketed in accordance
with N.J.A.C. 5:93-11 within the housing region of the Borough of
Harrington Park.
(i)
The maximum height of any detached accessory structure containing
an accessory apartment shall not exceed the maximum height permitted
for principal structures in the zone.
(j)
In no case shall a detached accessory structure containing an
accessory apartment be located closer to a public street than the
principal structure, except in the case of an existing accessory structure
where no expansion is required.
(k)
A minimum of one off-street parking space shall be provided
for an accessory apartment, in addition to the off-street parking
already provided on site for the principal structure.
(l)
No accessory apartment created as a result of this section or
these regulations shall exceed the gross floor area of the existing
principal dwelling on the lot.
(2)
Administrative requirements for Accessory Apartment Program.
(a)
The Borough of Harrington Park shall designate an administrative
entity to administer the accessory apartment program.
[1]
The Borough or its assignee shall administer the accessory apartment
program, including advertising, income-qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the accessory apartment
program.
[2]
The Borough shall only deny an application for an accessory
apartment if the project is not in conformance with N.J.A.C. 5:93-5.9,
the municipal development ordinances or this section.
[3]
In accordance with N.J.A.C. 5:93-5.9, the Borough shall provide
$10,000 to subsidize the physical creation of an accessory apartment
conforming to the requirements of this article and all other COAH
requirements. Prior to the grant of such a subsidy and prior to the
issuance of a building permit, the owner shall enter into a written
agreement with the Borough of Harrington Park ensuring that:
(b)
Applicants seeking to create an accessory apartment shall submit
the following prior to the issuance of a building permit:
[1]
A sketch showing floor plans depicting the size and location
of the rooms within the accessory structure and its relationship to
the principal structure.
[2]
A site plan on a current survey depicting the location of all
existing and proposed structures on site, parking and driveways, and
clearly indicating all dimensions.
[3]
Building elevations showing all exterior building modifications
proposed, including specifying materials, colors and window locations.
(c)
The Borough hereby appoints the Harrington Park Affordable Housing
Commission as the agency responsible for the administration, marketing,
advertising and implementation of this section.
(3)
Sunset clause for Accessory Apartment Program.
(a)
The provisions of this chapter permitting accessory apartments
shall become null and void, having no further force or effect upon
the issuance of a certificate of occupancy, for the sixth accessory
apartment in the Borough of Harrington Park. The administrative provisions
shall remain in full force and effect, unless otherwise modified by
law, until the last deed restriction expires.
G.
Borough-wide mandatory set-aside.
(1)
A multifamily or single-family development providing a minimum of
five new housing units created through any future development application,
municipal rezoning or Zoning Board action, use or density variance,
redevelopment plan, or rehabilitation plan is required to include
an affordable housing set-aside of 20% if the affordable units will
be for sale and 15% if the affordable units will be for rent. This
requirement does not give any developer the right to any such rezoning,
variance or other relief, or establish any obligation on the part
of Harrington Park Borough to grant such rezoning, variance or other
relief. No subdivision shall be permitted or approved for the purpose
of avoiding compliance with this requirement.
(2)
The requirement of § 85-1 G(1) above shall not apply to any sites or specific zones otherwise identified in the Borough's Settlement Agreement with Fair Share Housing Center dated November 6, 2017, or in the Borough's Housing Element and Fair Share Plan, adopted by the Borough Planning Board and endorsed by the Borough Council, for which density and set-aside standards shall be governed by the specific standards set forth therein.
H.
New construction. The following general guidelines apply to all newly
constructed developments that contain low- and moderate-income housing
units, including any currently unanticipated future developments that
will provide low- and moderate-income housing units.
(1)
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 in inclusionary developments:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25%
|
0%
|
|
25% + 1 unit
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
(2)
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
In inclusionary developments, low- and moderate-income units shall
have access to all of the same common elements and facilities as the
market units.
(3)
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development. 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.
(4)
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 rental units within each bedroom
distribution shall be very-low-income units (affordable to a household
earning 30% or less of regional median income by household size).
The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(c)
Within rental developments, of the total number of affordable
rental units, at least 13% shall be affordable to very-low-income
households.
(d)
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.
(e)
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.
(5)
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 the casing for the installation of a door, on the first floor;
and
[5]
If not all of the foregoing requirements in Subsection H(b)(1)
through (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 H(b)(1) through (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 the Borough 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 disabled person 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 Borough'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 H(5)(b)[6][b] above shall be used by the Borough 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.
[d]
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 Harrington Park Borough.
[e]
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 Harrington Park'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.
[f]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is 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.
(6)
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 most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures as approved by the Court.
(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 low- and
moderate-income 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 no more than 30% of median income,
which very-low-income units shall be part of the low-income 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 prices for each
bedroom type, and low- income ownership units must be available for
at least two different prices for each bedroom type.
(e)
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
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 rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(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 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.
(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
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.
(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 northeast urban area. This increase shall
not exceed 9% in any one year. Rent increases 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)
Tenant-paid utilities that are included in the utility allowance
shall be so stated in the lease and shall be consistent with the utility
allowance approved by DCA for its Section 8 program.
A.
Municipal Housing Liaison.
(1)
The position of Municipal Housing Liaison (MHL) for Harrington Park
Borough is established by this section. The MHL shall be appointed
by the governing body. The Municipal Housing Liaison is responsible
for overseeing the Borough's affordable housing program, including
overseeing the administration of affordability controls on the affordable
units and the affirmative marketing of available affordable units
in accordance with the Borough's affirmative marketing plan;
fulfilling monitoring and reporting requirements; and supervising
administrative agent(s). Harrington Park shall adopt a resolution
appointing the person to fulfill this position.
(2)
The MHL must be either a full-time or part-time municipal employee
of Harrington Park Borough.
(3)
The Municipal Housing Liaison shall be approved by the Court and
shall be duly qualified through a training program sponsored by Affordable
Housing Professionals of New Jersey before assuming the duties of
Municipal Housing Liaison.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Harrington
Park Borough, including the following responsibilities which may not
be contracted out to the administrative agent:
(a)
Serving as the municipality's primary point of contact
for all inquiries from the state, affordable housing providers, administrative
agents and interested households;
(b)
Monitoring the status of all restricted units in Harrington
Park's Fair Share Plan;
(c)
Compiling, verifying, submitting, and posting annual reports
as required by the Superior Court and by this chapter;
(d)
Coordinating meetings with affordable housing providers and
administrative agents, as needed; and
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing at least
annually and more often as needed.
(5)
Subject to the approval of the Court, the Borough of Harrington Park
shall designate one or more administrative agent(s) to administer
and to affirmatively market the affordable units constructed in the
Borough in accordance with UHAC and this chapter. An Operating Manual
for each affordable housing program shall be provided by the administrative
agent(s) to be adopted by resolution of the governing body and subject
to approval of the Court. The Operating Manual(s) shall be available
for public inspection in the office of the Borough Clerk, in the office
of the Municipal Housing Liaison, and in the office(s) of the administrative
agent(s). The Municipal Housing Liaison shall supervise the work of
the administrative agent(s).
B.
Administrative agent.
(1)
The Borough shall designate by resolution of the Borough Committee
one or more administrative agents to administer affordable units in
accordance with state law or regulation and UHAC.
(2)
An administrative agent shall be an independent entity serving under
contract to and reporting to the municipality. 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. The administrative
agent shall perform the duties and responsibilities of an administrative
agent as are set forth in UHAC, including those set forth in N.J.A.C.
5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof, which includes:
(a)
Affirmative marketing.
[1]
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the affirmative marketing plan of
the Borough and the provisions of N.J.A.C. 5:80-26.15; and
[2]
Providing counseling or contracting to provide counseling services
to 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;
[2]
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate-income unit;
[3]
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
[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.
[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 the random selection process as provided in the affirmative
marketing plan of the Borough when referring households for certification
to affordable units; and
[7]
Notifying the following entities of the availability of affordable
housing units in the Borough of Harrington Park: Fair Share Housing
Center, the New Jersey State Conference of the NAACP, the Latino Action
Network, Bergen County NAACP, Urban League of Bergen County, Bergen
County Housing Coalition, the New Jersey Housing Resource Center,
and Supportive Housing Association.
(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 appropriate
county's register of deeds or county clerk's office after
the termination of the affordability controls for each restricted
unit;
[4]
Communicating with lenders regarding foreclosure; and
[5]
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10;
(d)
Records retention.
(e)
Resale and re-rental.
[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 low- (or very-low-) and moderate-income households
regarding the availability of restricted units for resale or re-rental.
(f)
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 municipality of an owner's intent to sell
a restricted unit; and
[4]
Processing requests and making determinations on requests by
owners of restricted units for hardship waivers.
(g)
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality.
[1]
Securing annually from the municipality 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 acknowledgment 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]
The 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 municipality's affordable housing trust fund;
[6]
Establishing a rent-to-equity program;
[7]
Creating and publishing a written operating manual for each
affordable housing program administered by the administrative agent,
to be approved by the Borough Committee and the Court, setting forth
procedures for administering the affordability controls; and
[8]
Proving annual reports as required.
(h)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
(i)
The administrative agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
(j)
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
C.
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
(2)
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action(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:
(a)
The municipality may file a court action pursuant to N.J.S.A.
2A:58-11 alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
[1]
A fine of not more than $500 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 as a continuation of
the initial offense;
[2]
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Harrington Park Borough affordable housing
trust fund of the gross amount of rent illegally collected;
[3]
In the case of an owner who has rented his or her 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.
(b)
The municipality may file a court action in the Superior Court
seeking a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
(3)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
(4)
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 low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(5)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the 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.
(6)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(7)
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(8)
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.
D.
The Borough may contract with or authorize a consultant, authority,
government or any agency charged by the Borough Council, which entity
shall have the responsibility of administering the affordable housing
program of the Borough. If the Borough contracts with another entity
to administer all or any part of the affordable housing program, including
the affordability controls and affirmative marketing plan, the municipal
housing liaison shall supervise the contracting administrative agent.
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
E.
The cost for administering the affordable housing program for Harrington
Park Borough, including affirmative marketing, household certification,
affordability controls, resale and rentals, communicating with unit
owners and enforcement, shall be the responsibility of developers
or owners of affordable housing units in accordance with the following
fee schedule, as may be amended from time to time.
(1)
Annual fee for consulting, list maintenance and responding to inquiries:
$50 per affordable unit.
(2)
Resales of existing affordable housing units: $1,000 per resale certification
(payable by seller upon transfer of title).
(3)
Re-rentals of existing affordable housing: $550 per reoccupancy units
certification (payable by landlord upon occupancy of new tenant).
(4)
Sale of new affordable housing units: $200 per unit setup, plus $1,000
per unit certification fee, plus $3,000 minimum project fee (payable
at least 180 days prior to the issuance of a temporary or permanent
certificate of occupancy, which first occurs).
(5)
Rental of new affordable housing units: $400 per unit setup, plus
$500 per unit certification fee, plus $3,000 minimum project fee (payable
at least 180 days prior to the issuance of a temporary or permanent
certificate of occupancy, whichever first occurs).
(6)
Refinancing: $200 to be paid by unit owner.
(7)
Lien satisfaction: no charge.
(8)
Other programs: The cost to provide compliance services for programs,
such as accessory apartments, market to affordable, etc., are subject
to the number of units and the scope of services required for each.
(9)
Additional Services: In the event additional services are requested
or required to comply with the affirmative marketing requirements,
the rate for such services shall be determined prior to implementation.
(10)
Reimbursement of expenses: In addition to the foregoing fees, cost
of postage, printing of notices, copying costs, and advertising shall
be paid by the developer or owner.
A.
Adoption of an affirmative marketing plan.
(1)
Harington Park Borough hereby adopts the within affirmative marketing
plan in compliance with N.J.A.C. 5:80-26.15, as may be amended and
supplemented.
(2)
The affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The affirmative
marketing plan is also intended to target those potentially eligible
persons who are least likely to apply for affordable units in that
region. It is a continuing program that directs all marketing activities
toward COAH Housing Region 1 and is required to be followed throughout
the period of restriction.
B.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 1
comprised of Bergen, Hudson, Passaic, and Sussex Counties.
C.
The administrative agent designated by Harrington Park Borough shall
assure the affirmative marketing of all affordable units consistent
with the affirmative marketing plan for the municipality.
(1)
All newspaper articles, announcements and requests for applications
for low- and moderate-income units will appear in the following newspapers/publications:
The Star-Ledger, The Record, Northern Valley Suburbanite, Bergen News,
and Avance (Spanish).
(2)
The primary marketing will take the form of at least one press release
sent to the above publications and a paid display advertisement in
each of the above newspapers. Additional advertising and publicity
will be on an as-needed basis.
(3)
The advertisement will include:
(a)
The street address and location of units;
(b)
Directions to the housing units;
(c)
The size, as measured in the number of bedrooms, of the housing
units;
(d)
A range of prices/rents for the housing units;
(e)
The maximum income permitted to qualify for the housing units;
(f)
The location of applications for the housing units;
(g)
The business hours when interested households may obtain an
application for a housing unit;
(h)
The name of the rental manager and/or sales agent for the housing
units.
(4)
All newspaper articles, announcements and requests for applications
for low- and moderate-income housing will appear in publications circulated
within the housing region that are likely to be read by low- and moderate-income
households, such as neighborhood-oriented weekly newspapers, religious
publications and organizational newsletters.
(5)
Regional radio and/or cable television station(s) will also be used.
(6)
Applications, brochure(s), sign(s) and/or poster(s) used as part
of the affirmative marketing program will be provided to specific
employment centers within the region and to the municipal clerks of
all municipalities in the region.
(7)
Applications for low- and moderate-income housing shall be available
in several convenient locations within the Borough of Harrington Park,
including, at a minimum, Borough Hall, the Harrington Park Public
Library, and the developer's sales/rental office. The following
is a listing of community contact persons and/or organizations in
Harrington Park that will administer the program and will aid in the
affirmative marketing program, with particular emphasis on contacts
that will reach out to groups that are least likely to apply for housing
within the region: the Fair Share Housing Center, New Jersey State
Conference of the NAACP, the Latino Action Network, Bergen County
NAACP, Urban League of Bergen County, Bergen County Housing Coalition,
the New Jersey Housing Resource Center, and Supportive Housing Association.
(8)
Quarterly flyers and applications will be sent to each of the following
agencies for publication in their journals and for circulation among
their members: Board of Realtors in Bergen, Hudson, Passaic and Sussex
Counties.
(9)
Applications will be mailed to prospective applicants upon request.
Additionally, quarterly informational circulars and applications will
be sent to the chief administrative employees of each of the following
agencies in the counties the Borough of Harrington Park's region:
Welfare or Social Service Board, Rental Assistance Office (local office
of DCA), Office on Aging, libraries and housing agency or authority.
(10)
The affirmative marketing program will meet the following requirements:
(a)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
(b)
A random selection method will be used to select occupants of
low- and moderate-income housing.
(c)
Low- and moderate-income households who live or work in the
housing region in which the Borough of Harrington Park is located
shall be given preference for sales and rental units constructed within
the Borough of Harrington Park. Applicants living outside the housing
region will have an equal opportunity for units after regional applicants
have been initially serviced.
(d)
Low- and moderate-income households residing or working within
the Borough of Harrington Park shall be provided a preference for
low- and moderate-income units created within the Borough of Harrington
Park that respond to Harrington Park's rehabilitation component.
(e)
All developers of low- and moderate-income housing units will
be required to assist in the marketing of the affordable units in
their respective developments.
(f)
The cost of advertising and administrating low- and moderate-income
units shall be the responsibility of the developer and/or owner of
low- and moderate-income housing units within the Borough of Harrington
Park.
(g)
The marketing program will commence at least 120 days before
the issuance of either temporary or permanent certificates of occupancy.
The marketing program will continue until all low- and moderate-income
housing units are initially occupied and for as long as affordable
units are deed restricted and occupancy or reoccupancy of units continues
to be necessary.
(h)
Households that apply for low- and moderate-income housing shall
be screened for preliminary income eligibility by comparing their
total income to the low- and moderate-income limits pursuant to state
law and regulations. Applicants shall be notified as to their eligibility
status.
(i)
Having screened applicants for preliminary income eligibility,
the Borough may analyze the income and household sizes of applicants
to determine which applicants have the assets and/or income necessary
to purchase or rent each available low- or moderate-income unit.
(j)
The Borough shall conduct a process and interview each applicant
to verify the applicant's income and household size; determine
the applicant's asset availability; and review the applicant's
credit history. Applicants shall be required to submit income verification
for each household member 18 years or older. This process shall be
utilized in establishing the final certified applicant group.
(k)
The process described in Subsection C(10)(j) through (l) above may begin no sooner than one month after the advertising program begins. Households shall be selected to proceed through the process described in Subsection C(10)(j) through (l) above through a method of random selection. Households shall be certified for low- and moderate-income units. The process described in Subsection C(10)(j) through (l) shall be continued until all the low- and moderate-income units are occupied.
(l)
Continuing marketing activities shall be undertaken after the
completion of initial occupancy of sales and rental units in order
to fill vacancies resulting from normal turnover which shall include:
[1]
Insuring a sufficient supply of income eligible applicants by
continuing to implement the marketing plan throughout the housing
region. At a minimum, the Borough shall maintain a current pool of
at least five income eligible applicants for each low- and moderate-income
unit.
[2]
Contacting each income eligible applicant annually to request
updated information regarding income and family size.
[3]
As units become available, the municipal entity shall select
eligible applicants for the units until the units are occupied by
low- and moderate-income households.
D.
The municipality 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 Borough of Harrington Park 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 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 as least four months 120 days prior to the expected date
of occupancy.
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 municipality in which the units are located; and the developer's
rental office. Applications shall be 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 Harrington Park, and copies of the application forms,
to the following entities: Fair Share Housing Center, the New Jersey
State Conference of the NAACP, the Latino Action Network, Bergen County
NAACP, Urban League of Bergen County, Bergen County Housing Coalition,
the New Jersey Housing Resource Center, and the Supportive Housing
Association.
J.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
The following general guidelines apply to all developments that
contain low- and moderate-income housing units, including any currently
unanticipated future developments that will provide low- and moderate-income
housing units.
A.
Occupancy standards.
(1)
In referring certified households to specific restricted units, to
the extent feasible, and without causing an undue delay in occupying
the unit, the administrative agent shall strive to:
B.
Selection of occupants of affordable housing units.
C.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
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 section until Harrington Park Borough elects to release the
unit from such requirements; however, and prior to such an election,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at
least 30 years.
(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 first sale of the unit, the 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 requirements of this section, 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 section 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 may be amended and supplemented.
(7)
Deeds of all real property that include restricted ownership units
shall contain deed restriction language. The deed restriction shall
have priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Bergen. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy. The deed restriction shall be subject to the approval
of the administrative agent and shall be substantially in the form
set forth in Schedule B, annexed hereto and made part of this chapter.
D.
Price restrictions for restricted ownership units, homeowner association
fees and resale prices.
(1)
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 low- and moderate-income purchasers
and those paid by market purchasers.
(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.
E.
Buyer income eligibility.
(1)
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that 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, the administrative agent may, upon
approval by the Borough Committee, and subject to the Court's
approval, permit a moderate-income purchaser to buy a low-income unit
if and only if the administrative agent can demonstrate that there
is an insufficient number of eligible low-income purchasers in the
housing region to permit prompt occupancy of the unit and all other
reasonable efforts to attract a low-income purchaser, including pricing
and financing incentives, have failed. Any such low-income unit that
is sold to a moderate-income household shall retain the required pricing
and pricing restrictions for a low-income unit.
(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; provided, however, that the administrative
agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
(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 homeowner association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
F.
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 chapter, and the administrative agent
shall issue such determination prior to the owner incurring such indebtedness.
(2)
With the exception of first purchase money mortgages, during a control
period neither an owner nor a lender shall at any time cause or permit
the total indebtedness secured by a restricted ownership unit to exceed
95% of the maximum allowable resale price of that unit, as such price
is determined by the administrative agent in accordance with N.J.A.C.5:80-26.6(b).
G.
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 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.
H.
Control periods for restricted rental units.
(1)
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 section for a period of at least 30 years, until the Borough
of Harrington Park elects to release the unit from such requirements
pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, as
may be amended and supplemented, and prior to such an election, a
restricted rental unit must remain subject to the requirements of
N.J.A.C. 5:80-26.1, as 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. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy. The deed restriction shall be subject to the approval
of the administrative agent and shall be substantially in the form
set forth in Schedule B, annexed hereto and made part of this chapter.
(3)
A restricted rental unit shall remain subject to the affordability
controls of this section, despite the occurrence of any of the following
events:
I.
Rent restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the administrative agent.
(2)
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the administrative agent.
(3)
Application fees (including the charge for any credit check) shall
not exceed 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 section.
(4)
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
J.
Tenant income eligibility.
(1)
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of the regional
median household income by household size.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of the regional
median household income by household size.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of the regional median
household income by household size.
(2)
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 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:
(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.
K.
Appeals. Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed in writing with the Court.
A.
Purpose. In Holmdel Builder's Association v. Holmdel Township,
121 N.J. 550 (1990), the New Jersey Supreme Court determined that
mandatory development fees are authorized by the Fair Housing Act
of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution,
subject to COAH developing rules as amended from time to time and/or
in accordance with the enacted legislation and/or in accordance with
directives from the Courts. The purpose of this section is to establish
standards for the collection, maintenance and expenditure of development
fees pursuant to the above. Fees collected pursuant to this section
shall be used for the sole purpose of providing low- and moderate-income
housing.
C.
AFFORDABLE HOUSING DEVELOPMENT
COAH OR THE COUNCIL
DEVELOPER
DEVELOPMENT FEE
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
Definitions. The following terms, as used in this chapter, shall
have the following meanings:
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable housing development.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act.
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Money paid by a developer for the improvement of property
as authorized by Holmdel Builder's Association v. Holmdel Township,
121 N.J. 550 (1990) and the Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et seq., and regulated by applicable COAH Rules.
The assessed value of a property divided by the current average
ration 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).
Those 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.
D.
Development fees.
(1)
Residential development fees.
(a)
Imposition of fees.
[1]
Within the Borough of Harrington Park, all residential developers,
except for developers of the types of developments specifically exempted
below and developers of developments that include affordable housing
shall pay a fee of 1.5% of the equalized assessed value for all new
residential development provided no increased density is permitted.
Development fees shall also be imposed and collected when an additional
dwelling unit is added to an existing residential structure; in such
cases, the fee shall be calculated based on the increase in the equalized
assessed value of the property due to the additional dwelling unit.
[2]
When an increase in residential density has been permitted pursuant
to N.J.S.A. 40:55D-70d (known as a "d" variance) or pursuant to Zoning
Amendment or pursuant to the adoption of a redevelopment plan pursuant
to New Jersey Local Lands and Building Law (N.J.S.A. 40A:12-1 et seq.),
developers shall be required to pay a bonus residential development
fee of 6% of the equalized assessed value for each additional unit
that may be realized, except that this provision shall not be applicable
to a development that will include affordable housing. If the zoning
on a site has changed during the two-year period preceding the filing
of such a variance application, the base density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the variance application.
(b)
Eligible Exactions, Ineligible Exactions and Exemptions for
Residential Developments.
[1]
Affordable housing developments and/or residential developments
where the developer has made a payment in lieu of on-site construction
of affordable units, if permitted by ordinance or by agreement with
the Borough of Harrington Park, shall be exempt from the payment of
residential development fees.
[2]
Residential developments that have received preliminary or final
site plan approval prior to the adoption of this chapter and any preceding
ordinance permitting the collection of development fees shall be exempt
from the payment of residential development fees, unless the developer
seeks a substantial change in the original approval or the developer
has accepted responsibility to pay a residential development fee.
Where site plan approval does not apply, the issuance of a zoning
and/or building permit shall be synonymous with preliminary or final
site plan approval for the purpose of determining the right to an
exemption. In all cases, the applicable fee percentage shall be determined
based upon the development fee ordinance in effect on the date that
the construction permit is issued.
[3]
Any repair, reconstruction or improvement of a structure, the
cost of which is less than 50% of the market value of the structure
before the improvement or repair is started, shall be exempt from
the payment of development fees. For purpose of this section, "market
value" shall mean the equalized assessed value of the existing improvement
as established by the Borough Tax Assessor. The cost of repair, reconstruction
or improvements shall be determined by an itemized construction cost
estimate prepared and submitted to the Construction Official. The
estimate shall be signed and sealed by an architect or professional
engineer licensed by the State of New Jersey, or where no such professionals
are retained, signed by the contractor or the homeowner. Where prepared
by the homeowner or contractor, the Borough Engineer may review such
estimates for accuracy. "Substantial improvement" is considered to
commence when the first alteration of any wall, floor or other structural
part of the building commences, whether or not the alteration affects
the external dimensions of the structure. The term does not, however,
include either:
[a]
Any project for improvement of a structure to comply with existing
state or local building, fire, health, sanitary or safety code specifications
which are solely necessary to assure safe living conditions; or
[b]
Any alteration of a structure listed on the National Register
of Historic Places or a state inventory of historic places but a development
fee shall be charged for any new dwelling constructed as a replacement
for a previously existing dwelling on the same lot that was or will
be demolished, unless the owner resided in the previous dwelling for
a period of one year or more prior to obtaining a demolition permit.
Where a development fee is charged for a replacement dwelling, the
development fee shall be calculated on the increase in the equalized
assess value of the new structure as compared to the previous structure.
[4]
Structural alterations that do not increase gross floor area
of a building or structure or increase the equalized assessed value
of a property shall be exempted from paying a development fee.
[5]
Nonprofit organizations constructing residential projects which
have received tax-exempt status pursuant to Section 501(c)(3) of the
Internal Revenue Code, providing current evidence of that status is
submitted to the Municipal Clerk, together with a certification that
services of the organization are provided at reduced rates to those
who establish an inability to pay existing charges, shall be exempted
from paying a development fee.
[6]
Federal, state, county and local governments shall be exempted
from paying a development fee.
[7]
Homes replaced as a result of a natural disaster, fire or flood
shall be exempt from the payment of a development fee. (This exemption
applies only for the owner of record at the time of the fire, flood,
or natural disaster.)
(2)
Nonresidential development fees.
(a)
Imposition of fees.
[1]
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted below,
shall pay a nonresidential development fee equal to 2.5% of the equalized
assessed value of the land and improvements for all new nonresidential
construction on an unimproved lot or lots.
[2]
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted below,
shall also pay a nonresidential development fee equal to 2.5% of the
increase in equalized assessed value resulting from any additions
to existing structures to be used for nonresidential purposes.
[3]
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the pre-existing land and improvements and the equalized
assessed value of the newly improved structure, i.e. land and improvements,
and such calculation shall be made at the time a final certificate
of occupancy is issued. If the calculation required under this section
results in a negative number, the nonresidential development fee shall
be zero.
(b)
Eligible Exactions, Ineligible Exactions and Exemptions for
Nonresidential Development.
[1]
The nonresidential portion of a mixed-use inclusionary or market-rate
development shall be subject to the 2.5% development fee, unless otherwise
exempted below.
[2]
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within the existing
footprint, reconstruction, renovations and repairs.
[3]
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to the Statewide Non-residential Development Fee
Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), as specified in Form
N-RDF "State of New Jersey Non-residential Development Certification/Exemption."
Any exemption claimed by a developer shall be substantiated by that
developer.
[4]
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to the Statewide Non-residential
Development Fee Act shall be subject to it at such time as the basis
for the exemption no longer applies and shall make the payment of
the nonresidential development fee, in that event, within three years
after that event or after the issuance of the final certificate of
occupancy for the nonresidential development, whichever is later.
[5]
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Borough of Harrington Park as a lien against
the real property of the owner.
[6]
Federal, state, county and local governments of nonresidential
development shall be exempted from paying a development fee.
(c)
Collection procedures.
[1]
Upon the granting of a preliminary, final or other applicable
approval for a development, the approving authority or entity shall
notify or direct its staff to notify the Construction Official responsible
for the issuance of a building permit.
[2]
For nonresidential developments only, the developer shall also
be provided with a copy of Form N-RDF, State of New Jersey Non-residential
Development Certification/Exemption, to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
[3]
The Construction Official responsible for the issuance of a
building permit shall notify the Borough Tax Assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
[4]
Within 90 days of receipt of that notice, the Municipal Tax
Assessor, based on the plans filed, shall provide an estimate of the
equalized assessed value of the development.
[5]
The Construction Official responsible for the issuance of a
final certificate of occupancy shall notify the Borough Tax Assessor
of any and all requests for the scheduling of a final inspection on
property which is subject to a development fee.
[6]
Within 10 business days of a request for the scheduling of a
final inspection, the Municipal Tax Assessor shall confirm or modify
the previously estimated equalized assessed value of the improvements
associated with the development, calculate the development fee and
thereafter notify the developer of the amount of the fee.
[7]
Should the Borough of Harrington Park fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of Section 37 of P.L. 2008, c.46 (N.J.S.A. 40:55D-8.6). Upon tender of the estimated nonresidential development fee, provided the developer is in full compliance with all other applicable laws, the municipality shall issue a final certificate of occupancy for the subject property.
[8]
Except as provided hereinabove, 50% of the initially calculated
development fee shall be collected at the time of issuance of the
building permit. The remaining portion shall be collected at the time
of issuance of the certificate of occupancy. The developer shall be
responsible for paying the difference between the fee calculated at
the time of issuance of the building permit and that determined at
the time of issuance of the certificate of occupancy.
(d)
Appeal of development fees.
[1]
A developer may challenge residential development fees imposed
by filing a challenge with the County Board of Taxation. Pending a
review and determination by the Board, collected fees shall be placed
in an interest-bearing escrow account by the Borough of Harrington
Park. Appeals from a determination of the Board may be made to the
Tax Court in accordance with the provisions of the State Uniform Tax
Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the
date of such determination. Interest earned on amounts escrowed shall
be credited to the prevailing party.
[2]
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by the Borough of
Harrington Park. Appeals from a determination of the Director may
be made to the Tax Court in accordance with the provisions of the
State Uniform Tax Procedure Law, N.J.S.A. 54:48-1 et seq., within
90 days after the date of such determination. Interest earned on amounts
escrowed shall be credited to the prevailing party.
E.
Housing trust fund.
(1)
There is hereby created a separate interest-bearing affordable housing
trust fund to be maintained by the Borough's Chief Financial
Officer for the purpose of depositing development fees collected from
residential and nonresidential developers and proceeds from the sale
of units with extinguished controls.
(2)
The following additional funds shall be deposited in the affordable
housing trust fund and shall at all times be identifiable by source
and amount:
(a)
Payments in lieu of on-site construction of a fraction of an
affordable unit, where permitted by ordinance or by agreement with
the Borough of Harrington Park.
(b)
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached dwelling unit development
accessible;
(c)
Rental income from municipally operated units;
(d)
Repayments from affordable housing program loans;
(e)
Recapture funds;
(f)
Proceeds from the sale of affordable units; and
(g)
Any other funds collected in connection with the Borough of
Harrington Park's affordable housing program.
(3)
In the event of a failure by the Borough of Harrington Park to comply
with trust fund monitoring and reporting requirements or to submit
accurate monitoring reports; or a failure to comply with the conditions
of the judgment of compliance or a revocation of the judgment of compliance;
or a failure to implement the approved Spending Plan and to expend
funds within the applicable required time period as set forth in In
re Tp. of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (aff'd
442 N.J. Super. 563); or for other good cause demonstrating the unapproved
use(s) of funds, the Court may authorize the State of New Jersey,
Department of Community Affairs, Division of Local Government Services
(LGS), to direct the manner in which the funds in the affordable housing
trust fund shall be expended, provided that all such funds shall,
to the extent practicable, be utilized for affordable housing programs
within the Borough of Harrington Park, or, if not practicable, then
within the county or housing region. Any party may bring a motion
before the Superior Court presenting evidence of such condition(s),
and the Court may, after considering the evidence and providing the
municipality a reasonable opportunity to respond and/or to remedy
the noncompliant condition(s), and upon a finding of continuing and
deliberate noncompliance, determine to authorize LGS to direct the
expenditure of funds in the trust fund or impose such other remedies
as may be reasonable and appropriate to the circumstances.
(4)
Interest accrued in the affordable housing trust fund shall only
be used to fund eligible affordable housing activities approved by
the Court.
F.
Use of funds.
(1)
The expenditure of funds shall conform to a spending plan approved
by the Court. Money deposited in the affordable housing trust fund
may be used for any activity approved for addressing the Borough of
Harrington Park's low- and moderate-income housing obligation
and may be set up as a grant or revolving loan program. Such activities
may include, but are not limited to: housing rehabilitation; new construction
of affordable housing units and related costs; the purchase of land
for low- and moderate-income housing; preservation or purchase of
housing for the purpose of maintaining or implementing affordability
controls, including the extension of controls, accessory apartment,
market to affordable, or regional housing partnership programs, conversion
of existing nonresidential buildings to create new affordable units,
extensions and/or improvements of roads and infrastructure to low-
and moderate-income housing sites; assistance designed to render units
to be more affordable to low- and moderate-income households; and
administrative costs necessary to implement the Borough of Harrington
Park's Housing Element and Fair Share Plan; and/or any other
activity permitted by the Court and specified in the approved spending
plan. The expenditure of all money shall conform to a spending plan
approved by the Courts.
(2)
Funds shall not be expended to reimburse the Borough of Harrington
Park for past housing activities.
(3)
At least 30% of all development fees collected and interest earned
shall be used to provide affordability assistance to very-low-, low-
and moderate-income households in affordable units included in the
municipal Housing Element and Fair Share Plan. One-third of the affordability
assistance portion of development fees collected shall be used to
provide affordability assistance to very-low-income households earning
30% or less of regional median income by household size for housing
region 1, in which Harrington Park is located.
(a)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and
special assessments, and assistance with emergency repairs. The specific
programs to be used for affordability assistance shall be identified
and described within the Spending Plan.
(b)
Affordability assistance to households earning 30% or less of
the regional median household income by household size may include
buying down the cost of low- or moderate-income units in the municipal
Fair Share Plan to make them affordable to households earning 30%
or less of median income. The specific programs to be used for very-low-income
affordability assistance shall be identified and described within
the spending plan.
(c)
Payments in lieu of constructing affordable units on site, if
permitted by ordinance or by agreement with the Borough of Harrington
Park, and funds from the sale of units with extinguished controls
shall be exempt from the affordability assistance requirement.
(5)
No more than 20% of all revenues collected from development fees
may be expended on administration, including but not limited to salaries
and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, prepare a Housing
Element and Fair Share Plan, and/or administer an affirmative marketing
program or a rehabilitation program. In the case of a rehabilitation
program, the administrative costs of the rehabilitation program shall
be included as part of the 20% collected development fees that may
be expended on administration. Administrative funds may be used for
income qualification of households, monitoring the turnover of sale
and rental units, and compliance with the Court's monitoring
requirements. Legal or other fees related to litigation opposing affordable
housing sites or related to securing or appealing a judgment from
the Court are not eligible uses of the affordable housing trust fund.
G.
Monitoring. The Borough of Harrington Park shall provide annual reporting
of affordable housing trust fund activity to the State of 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 Fair Share Housing Center and
posted on the municipal website, using forms developed for this purpose
by the New Jersey Department of Community Affairs, Council on Affordable
Housing or Local Government Services. The reporting shall include
an accounting of all Afforable Housing Trust Fund activity, including
the sources and amounts of funds collected and the amounts and pruposes
for which any funds have been expended. Such reporting shall include
an accounting of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site
(if permitted by Ordinance or by agreement with the Borough), funds
from the sale of units with extinguished controls, barrier-free escrow
funds, rental income from Borough owned affordable housing units,
repayments from affordable housing program loans, and any other funds
collected in connection with the Borough of Harrington Park's
affordable housing programs, as well as an accounting of the expenditure
of revenues and implementation of the spending plan approved by the
Court.
H.
Ongoing collection of fees.
(1)
The ability for the Borough of Harrington Park to impose, collect
and expend development fees shall expire with the expiration of the
repose period covered by its judgment of compliance unless the Borough
has first filed an adopted Housing Element and Fair Share Plan with
the Court or with a designated state administrative agency, has petitioned
for a judgment of compliance from the Court or for substantive certification
or its equivalent from a state administrative agency authorized to
approve and administer municipal affordable housing compliance and
has received approval of its Development Fee Ordinance from the entity
that will be reviewing and approving the Housing Element and Fair
Share Plan.
(2)
If the Borough of Harrington Park fails to renew its ability to impose
and collect development fees prior to the expiration of its judgment
of compliance, it may be subject to forfeiture of any or all funds
remaining within its affordable housing trust fund. Any funds so forfeited
shall be deposited into the "New Jersey Affordable Housing Trust Fund"
established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320).
(3)
The Borough of Harrington Park shall not impose a residential development
fee on a development that receives preliminary or final site plan
approval after the expiration of its judgment of compliance, nor shall
the Borough retroactively impose a development fee on such a development.
The Borough also shall not expend any of its collected development
fees after the expiration of its judgment of compliance.
I.
This section is intended to be interpreted and applied consistent
with the Statewide Non-residential Development Fee Act (N.J.S.A. 40:55D-8.1
et seq.). In the event of any inconsistency, this section shall be
read so as to comply with the Act.
