[Added 12-5-2023 by Ord.
No. 23-3302]
A. This Article is intended to assure that very-low-, low-, and moderate-income
units ("affordable units") are created with controls on affordability
over time and that very-low-, low-, and moderate-income households
shall occupy these units. This Article shall apply except where inconsistent
with applicable law.
B. The City of Summit 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 Housing Element and Fair Share Plan has been
endorsed by the Governing Body. The Fair Share Plan describes the
ways the City of Summit shall address its fair share for very-low-,
low-, and moderate-income housing as directed by the Superior Court
and documented in the City's Housing Element and Fair Share Plan,
as may be amended.
C. This Article implements and incorporates the adopted and endorsed
Housing Element and Fair Share Plan and addresses the requirements
of N.J.A.C. 5:93-1, et seq., as amended and supplemented, N.J.A.C.
5:80-26.1, et seq. as amended and supplemented, and the New Jersey
Fair Housing Act of 1985.
D. The City shall track the status of the implementation of its Fair
Share Plan in accordance with Court Orders and the monitoring requirements
set forth in this Article.
[Added 12-5-2023 by Ord.
No. 23-3302]
The following terms when used in this Article shall have the
meanings given in this section:
ACT
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222
(N.J.S.A. 52:27D-301 et seq.).
ADAPTABLE
Shall mean constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
Shall mean the entity responsible for the administration
of affordable units in accordance with this article, N.J.A.C. 5:93,
and N.J.A.C. 5:80-26.1 et seq.
AFFIRMATIVE MARKETING
Shall mean a regional marketing strategy designed to attract
buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
Shall mean the average percentage of median income at which
restricted units in an affordable housing development are affordable
to low- and moderate-income households.
AFFORDABLE
Shall mean a sales price or rent within the means of a very-low-,
low-, or moderate-income household as defined in N.J.A.C. 5:93-7.4;
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.
AFFORDABLE HOUSING DEVELOPMENT
Shall mean a development included in or approved pursuant
to the Housing Element and Fair Share Plan or otherwise intended to
address the City's fair share obligation, and includes, but is
not limited to, an inclusionary development, a municipal construction
project or a one hundred (100%) percent affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Shall mean any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
Shall mean a housing unit proposed or created pursuant to
the Act and approved for crediting by the Court and/or funded through
an affordable housing trust fund.
AGE-RESTRICTED UNIT
Shall mean 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 sixty-two (62) years orolder; or (2)
at least eighty (80%) percent of the units are occupied by one person
that is fifty-five (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.
AGENCY
Shall mean the New Jersey Housing and Mortgage Finance Agency
established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
ALTERNATIVE LIVING ARRANGEMENT
Shall mean a structure in which households live in distinct
bedrooms, yet share kitchen and plumbing facilities, central heat
and common areas. Alternative living arrangements include, but are
not limited to: transitional facilities for the homeless; Class A,
B, C, D and E boarding homes as regulated by the State of New Jersey
Department of Community Affairs; residentialhealth care facilities
as regulated by the New Jersey Department of Health; group homes for
the developmentally disabled and mentally ill as licensed and/or regulated
by the New Jersey Department of Human Services; and congregate living
arrangements.
ASSISTED LIVING RESIDENCE
Shall mean 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 (4) or more adult persons unrelated
to the proprietor and that offers units containing, at a minimum,
one (1) unfurnished room, a private bathroom, a kitchenette and a
lockable door on the unit entrance.
CERTIFIED HOUSEHOLD
Shall mean a household that has been certified by an Administrative
Agent as a very-low-income household, low-income household, or moderate-income
household.
COAH
Shall mean the Council on Affordable Housing, as established
by the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.).
Pursuant to the opinion and order of the New Jersey Supreme Court
dated March 10, 2015, in In re Adoption of N.J.A.C. 5:96 and 5:97
by the N.J. Council on Affordable Housing, 221 N.J. 1 (2015), any
reference to COAH or the Council shall be understood to refer to the
Superior Court of New Jersey, Law Division, Union County.
DCA
Shall mean the State of New Jersey Department of Community
Affairs.
DEFICIENT HOUSING UNIT
Shall mean 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.
DEVELOPER
Shall mean 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.
DEVELOPMENT
Shall mean the division of a parcel of land into two (2)
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.
INCLUSIONARY DEVELOPMENT
Shall mean 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 non-residential
structure to residential use and the creation of new affordable units
through the gut rehabilitation or reconstruction of a vacant residential
structure.
LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income equal to fifty (50%) percent or less of the median household
income.
LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a low-income
household.
MAJOR SYSTEM
Shall mean 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.
MARKET-RATE UNITS
Shall mean housing not restricted to low- and moderate-income
households that may sell or rent at any price.
MEDIAN INCOME
Shall mean the median income by household size for the applicable
housing region, as adopted annually by COAH or a successor entity
approved by the Court.
MODERATE-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income in excess of fifty (50%) percent but less than eighty (80%)
percent of the median household income.
MODERATE-INCOME UNIT
Shall mean a restricted unit that is affordable to a moderate-income
household.
NON-EXEMPT SALE
Shall mean any sale or transfer of ownership other than the
transfer of ownership between spouses; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class
A beneficiary and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
Shall mean a process by which currently income-eligible households
are selected for placement in affordable housing units such that no
preference is given to one applicant over another except for purposes
of matching household income and size with an appropriately priced
and sized affordable unit (e.g., by lottery).
REGIONAL ASSET LIMIT
Shall mean the maximum housing value in each housing region
affordable to a four-person household with anincome at eighty (80%)
percent of the regional median as defined by duly adopted Regional
Income Limits published annually by COAH or a successor entity.
REHABILITATION
Shall mean the repair, renovation, alteration or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
RENT
Shall mean the gross monthly cost of a rental unit to the
tenant, including the rent paid to the landlord, as well as an allowance
for tenant-paid utilities computed in accordance with allowances published
by DCA for its Section 8 program. In assisted living residences, rent
does not include charges for food and services.
RESTRICTED UNIT
Shall mean 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.
UHAC
Shall mean the Uniform Housing Affordability Controls set
forth in N.J.A.C. 5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income equal to 30% or less of the median household income for the
applicable housing region.
VERY-LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a very-low-income
household.
WEATHERIZATION
Shall mean building insulation (for attic, exterior walls
and crawl space), siding to improve energy efficiency, replacement
storm windows, replacement storm doors, replacement windows and replacement
doors, and is considered a major system for purposes of a rehabilitation
program.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. The City will continue to participate in the Union County Home Improvement
Program and/or other rehabilitation programs to address its Rehabilitation
obligation. Any such rehabilitation programs will update and renovate
deficient housing units occupied by low- and moderate-income households
such that, after rehabilitation, these units will comply with the
New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
1. All rehabilitated rental and owner-occupied units shall remain affordable
to low- and moderate-income households for a period of ten (10) years
(the control period). For owner-occupied units, the control period
will be enforced with a lien and for renter-occupied units, the control
period will be enforced with a deed restriction.
2. The City shall dedicate an average of at least $10,000 for each unit
to be rehabilitated through this program, reflecting the minimum hard
cost of rehabilitation for each unit.
3. Units in the rehabilitation programs shall be exempt from N.J.A.C.
5:93-9 and UHAC requirements, but shall be administered in accordance
with the following:
a.
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
b.
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of ret shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
c.
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9 or standards issued by a New Jersey
administrative agency with proper authority to issue such standards.
d.
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
1. 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;
2. Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
B. With the exception of units established with capital funding through
a 20-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least 30-year controls on affordability in accordance
with UHAC.
C. The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Phasing: In inclusionary developments, the following schedule shall
be followed:
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|
25%
|
0
|
25% + 1
|
10%
|
50%
|
50%
|
75%
|
75%
|
90%
|
100%
|
B. Payments-in-Lieu: The City may allow developers of sites zoned for
inclusionary development to pay a fee in lieu of building low- and
moderate-income units on site once the parameters for payments in
lieu of are established by the Legislature, Courts, COAH, or other
authority.
[Added 12-5-2023 by Ord.
No. 23-3302]
The following general guidelines apply to all newly constructed
developments, including the conversion of non-residential into residential
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. Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units.
1. The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit,
and further provided that at least 13% of all restricted units shall
be very-low-income units (affordable to a household earning 30% or
less of the regional median income by household size) across bedroom
distribution. Very-low-income units shall be counted as part of the
required number of low-income units within a development (i.e. 37%
low units and 13% very-low units).
2. In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
3. Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
a.
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
b.
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
c.
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
d.
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
4. Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B. Accessibility Requirements.
1. The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
2. All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
a.
An adaptable toilet and bathing facility on the first floor;
b.
An adaptable kitchen on the first floor;
c.
An interior accessible route of travel on the first floor;
d.
An interior accessible route of travel shall not be required
between stories within an individual unit;
e.
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
f.
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the City of Summit has collected funds from
the developer sufficient to make 10% of the adaptable entrances in
the development accessible:
(1)
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
(2)
To this end, the builder of restricted units shall deposit funds
within the City's affordable housing trust fund sufficient to
install accessible entrances in 10% of the affordable units that have
been constructed with adaptable entrances.
(3)
The funds deposited under paragraph b above shall be used by
the City of Summit for the sole purpose of making the adaptable entrance
of any affordable unit accessible when requested to do so by a person
with a disability who occupies or intends to occupy the unit and requires
an accessible entrance.
(4)
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the City of Summit.
(5)
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the City's Affordable Housing Trust Fund in care of
the City's Chief Financial Officer who shall ensure that the
funds are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
g.
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
C. Design.
1. In inclusionary developments, to the extent possible, low- and moderate-income
units shall be integrated with the market units.
2. In inclusionary developments, low- and moderate-income units shall
have access to all of the same common elements and facilities as the
market units.
D. Maximum Rents and Sales Prices.
1. In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures approved by the Court.
a.
Regional income limits shall be established for the region that
the City is located within, based on the median income by household
size, which shall be established by a regional weighted average of
uncapped Section 8 income limits published by HUD. To compute this
regional income limit, the HUD determination of median county income
for a family of four is multiplied by the estimated households within
the county according to the most recent decennial Census. The resulting
product for each county within the housing region is summed. The sum
is divided by the estimated total households from the most recent
decennial Census in the City's housing region. This quotient
represents the regional weighted average of median income for a household
of four. The income limit for a moderate-income unit for a household
of four shall be 80% of the regional weighted average median income
for a household of four. The income limit for a low-income unit for
a household of four shall be 50% of the regional weighted average
median income for a household of four. The income limit for a very-low-income
unit for a household of four shall be 30% of the regional weighted
average median income for a household of four. These income limits
shall be adjusted by household size, based on multipliers used by
HUD to adjust median income by household size. In no event shall the
income limits be less than the previous year.
b.
The income limits are the result of applying the percentages
set forth in paragraph a above to HUD's determination of medial
income for the fiscal year 2020, and shall be utilized until the City
updates the income limits after HUD has published revised determinations
of median income for the next fiscal year.
c.
The Regional Asset Limit used in determining an applicant's
eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)(3)
shall be calculated by the City annually by taking the percentage
increase of the income limits calculated pursuant to paragraph a above
over the previous year's income limits, and applying the same
percentage increase to the Regional Asset Limit from the prior year.
In no event shall the Regional Asset Limit be less than that for the
previous year.
d.
In establishing sale prices and rents of affordable housing
units, the City's administrative agent shall follow the procedures
set forth in UHAC, utilizing the regional income limits established
pursuant to the process defined above:
(1)
The resale prices 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, determined pursuant
to the above methodology. In no event shall the maximum resale price
established by the administrative agent be lower than the last recorded
purchase price.
(2)
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area, upon its
publication for the prior calendar year. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
2. The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
3. The developers and/or municipal sponsors of restricted rental units
shall establish at least one (1) 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.
4. The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three (3) different prices for
each bedroom type, and low-income ownership units must be available
for at least two (2) different prices for each bedroom type.
5. In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
a.
A studio shall be affordable to a one-person household;
b.
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
c.
A two-bedroom unit shall be affordable to a three-person household;
d.
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
e.
A four-bedroom unit shall be affordable to a six-person household.
6. In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
a.
A studio shall be affordable to a one-person household;
b.
A one-bedroom unit shall be affordable to a one-and-one-half-person
household; and
c.
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
7. The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
8. The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
E. Utilities.
1. Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
2. 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.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. The City of Summit has adopted by resolution an Affirmative Marketing
Plan, which was approved by the Court and is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B. The affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor, or owner of affordable housing. The affirmative
marketing plan is also intended to target those potentially eligible
persons who are at least likely to apply for affordable housing units
in that region. It is a continuing program that directs all marketing
activities toward COAH Housing Region 2 and covers the period of deed
restriction.
C. The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 2,
comprised of Essex, Union, Warren, and Morris counties.
D. The Administrative Agent designated by the City of Summit shall assure
the affirmative marketing of all affordable units consistent with
the Affirmative Marketing Plan for the municipality.
E. In implementing the affirmative marketing plan, the Administrative
Agent shall provide a list of counseling services to very-low-, low-,
and moderate-income applicants on subjects such as budgeting, credit
issues, mortgage qualification, rental lease requirements, and landlord/tenant
law.
F. The affirmative marketing process for available affordable units
shall begin at least four (4) months prior to the expected date of
occupancy.
G. The costs of advertising and affirmative marketing of the affordable
units shall be responsibility of the developer, sponsor, or owner,
unless otherwise determined or agreed to by the City of Summit.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. 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:
1. Provide an occupant for each bedroom;
2. Provide children of different sexes with separate bedrooms;
3. Provide separate bedrooms for parents and children; and
4. Prevent more than two (2) persons from occupying a single bedroom.
B. Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
[Added 12-5-2023 by Ord.
No. 23-3302]
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this chapter until the City of Summit 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 thirty (30) years.
A. The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
B. 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 non-restricted,
fair market value of the unit basedon either an appraisal or the unit's
equalized assessed value.
C. 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 non-exempt sale after the unit's
release from the requirements of this chapter, an amount equal to
the difference between the unit's non-restricted fair market
value and its restricted price, and the recapture notes shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
D. The affordability controls set forth in this chapter shall remain
ineffect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
E. 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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
[Added 12-5-2023 by Ord.
No. 23-3302]
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 method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners.
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 capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate- income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
B. The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the house hold 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.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the Administrative Agent shall determine inwriting
that the proposed indebtedness complies with the provisions of this
section.
B. With the exception of original 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).
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter until the City of Summit 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,
for at least thirty (30) years.
B. 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 Union County. A copy of the filed document shall be provided to
the Administrative Agent within thirty (30) days of the receipt of
a Certificate of Occupancy.
C. A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
1. Sublease or assignment of the lease of the unit;
2. Sale or other voluntary transfer of the ownership of the unit; or
3. The entry and enforcement of any judgment of foreclosure.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. 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.
B. No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
C. Application fees (including the charge for any 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 chapter.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
1. Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
2. Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
3. Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B. The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
1. The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
2. The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
3. The household is currently in substandard or overcrowded living conditions;
4. The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
5. The household documents proposed third-party assistance from an outside
source such as a family member in a form acceptable to the Administrative
Agent and the owner of the unit.
C. The applicant shall file documentation sufficient to establish the
existence of the circumstances in subsection 35-18.15B1 through B5
above with the Administrative Agent, who shall counsel the household
on budgeting.
[Added 12-5-2023 by Ord.
No. 23-3302]
The administration and oversight of the City of Summit's affordable housing program will be the responsibility of the Municipal Housing Liaison, pursuant to Chapter
2, Article
III, Section
2-7 of the City Code, as may be amended and supplemented.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. Upon the occurrence of a breach of any of the regulations governing
an 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, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B. After providing written notice of a violation to an Owner, Developer
or Tenant of a 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:
1. 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 adjudged
by the Court to have violated any provision of the regulations governing
affordable housing units the Owner, Developer or Tenant shall be subject
to one or more of the following penalties, at the discretion of the
Court:
a.
A fine of not more than $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 a continuation of the
initial offense;
b.
In the case of an Owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the City of Summit Affordable Housing Trust Fund
of the gross amount of rent illegally collected;
c.
In the case of an Owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
2. The municipality may file a court action in the Superior Court seeking
a judgment that would result in the termination of the Owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any such judgment shall be enforceable as if the same
were a judgment of default of the First Purchase Money Mortgage and
shall constitute a lien against the low- or moderate-income unit.
a.
The judgment shall be enforceable, at the option of the 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 his
right to possession terminated as well as his title conveyed pursuant
to the Sheriff's sale.
b.
The proceeds of the Sheriff's sale shall first be applied
to satisfy the First Purchase Money Mortgage lien and any prior liens
upon the 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 the full 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.
c.
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.
d.
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the First Purchase Money Mortgage and any
prior liens, the 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.
e.
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.
f.
The Owner shall remain fully obligated, responsible, and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the Owner.
[Added 12-5-2023 by Ord.
No. 23-3302]
Appeals from all decisions of an Administrative Agent designated pursuant to this chapter or pursuant to Chapter
2, Article
III, Section
2-7 of the City Code shall be filed in writing with the Court.
[Added 12-5-2023 by Ord.
No. 23-3302]
A. On the first anniversary of the entry of the order granting the Citya
Final Judgment of Compliance and Repose, and every anniversary thereafter,
through the end of the Repose period, the City shall provide annual
reporting of its Affordable Housing Trust Fund activity to the Council
on Affordable Housing or its successor agency at the State Level,
with copies provided to Fair Share Housing Center, and posted on the
municipal website, using forms developed for this purpose by the Council
on Affordable Housing. 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.
B. On the first anniversary of the entry of the order granting the City
a Final Judgment of Compliance and Repose, and every anniversary thereafter,
through the end of the Repose period, the City shall provide annual
reporting of the status of all affordable housing activity within
the City through posting on the municipal website with copies provided
to Fair Share Housing Center, using forms previously developed for
this purpose by the Council on Affordable Housing or any other forms
endorsed by the Court-appointed Special Master and Fair Share Housing
Center.
C. For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the City shall post on
its municipal website, with copies provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and ananalysis
of whether any unbuilt sites or unfulfilled mechanisms continue to
present a realistic opportunity. Such posting shall invite any interested
party to submit comments to the City, with copies provided to Fair
Share Housing Center, regarding whether any sites no longer present
a realistic opportunity and should be replaced. Any interested party
may, by motion, request a hearing before the Court regarding these
issues.
D. For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within thirty (30) days of the third anniversary
of the entry of the Order granting the City a Final Judgment of Compliance
and Repose, and every third year thereafter, the City shall post on
its municipal website, with copies provided to Fair Share Housing
Center, a status report as to its satisfaction of its very low-income
requirements, including the family very-low-income requirements referenced
herein. Such posting shall invite any interested party to submit comments
to the City with copies provided to Fair Share Housing Center, on
the issue of whether the municipality has complied with its very-low-income
housing obligation.