A.
The purpose of this chapter is to provide for and regulate affordable
housing in the Village of Ridgefield Park. 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 individuals and households shall occupy these
units.
B.
The Village of Ridgefield 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 Housing Element and Fair Share Plan
has been endorsed by the Board of Commissioners. The Fair Share Plan
describes the ways the Village of Ridgefield Park shall address its
fair share for low- and moderate-income housing as determined by the
New Jersey Superior Court and documented in the Housing Element.
C.
This chapter implements and incorporates the Housing Element and
Fair Share Plan and addresses the requirements of N.J.A.C. 5:93, as
it may be amended and supplemented.
A.
On the first anniversary of the June 24, 2021 execution of the Amended
Settlement Agreement between the Village of Ridgefield Park and Fair
Share Housing Center in IMO Application of the Village of Ridgefield
Park, Docket No.: BER-L-6143-15, and every anniversary thereafter
through the end of 2025, the Village shall provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs (DCA), Council on Affordable Housing (COAH),
Local Government Services (LGS) 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 DCA, COAH or LGS.
B.
On the first anniversary of the June 24, 2021 execution of the Amended
Settlement Agreement between the Village of Ridgefield Park and Fair
Share Housing Center in IMO Application of the Village of Ridgefield
Park, Docket No.: BER-L-6143-15, and every anniversary thereafter
through the end of 2025, the Village shall provide annual reporting
of the status of all affordable housing activity within the Village
through posting on the municipal website, with copies provided to
FSHC, using forms previously developed for this purpose by COAH or
any other forms endorsed by the court-appointed Special Master and
FSHC. In addition to the foregoing, the Village may also post such
activity on the CTM system and/or file a copy of its report with COAH
or its successor agency at the State level.
C.
For the midpoint realistic opportunity review, due on July 6, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Village posted on
its municipal website, with copies 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 Village, with copies provided 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.
D.
For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the June 24, 2021 execution of the Amended Settlement Agreement between
the Village of Ridgefield Park and Fair Share Housing Center in IMO
Application of the Village of Ridgefield Park, Docket No.: BER-L-6143-15,
and every third year thereafter, the Village will post on its municipal
website, with copies provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including the family very-low-income
requirements referenced in the Settlement Agreement. Such posting
shall invite any interested party to submit comments to the Village,
with copies provided to FSHC, on the issue of whether the Village
has complied with its very-low-income housing obligation under the
terms of the Settlement Agreement.
The following terms when used in this chapter shall have the
meanings given herein:
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 designated by the Village to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
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 new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household as defined within N.J.A.C. 5:93-7.4,
and, in the case of an ownership unit, that the sales price for the
unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as
it may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as it may be amended and supplemented.
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Village's
fair share obligation, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing 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
approved for crediting by the court 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 wherein the unit
is situated are 62 years of age or older; or 2) at least 80% of the
units are occupied by one person who is 55 years of age 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. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
A facility that is licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four or more adult persons unrelated to
the proprietor and that offers units containing, at a minimum, one
unfurnished room, a private bathroom, a kitchenette and a lockable
door on the unit entrance.
A household that has been certified by an Administrative
Agent as a very-low-income household, low-income household or moderate-income
household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301, et seq.), or any
successor agency charged with the administration of the Act.
The Superior Court of New Jersey, Law Division, Bergen County.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development including the holder of an option
to contract to purchase, or other person having an enforceable proprietary
interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1, et seq.
A development containing both affordable units and market
rate units. This term includes, but is not limited to: new construction,
the conversion of a nonresidential structure to residential use and
the creation of new affordable units through the gut rehabilitation
or reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
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 and 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 housing
region, as adopted annually by COAH or a successor entity approved
by the court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
A structure containing five or more dwelling units.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class
A beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by duly adopted Regional Income Limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or an ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26, et seq.
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
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 purposes of a rehabilitation
program.
A.
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 Village of Ridgefield Park
pursuant to the Village's most recently adopted Housing Element
and Fair Share Plan.
B.
Moreover, this chapter shall apply to all developments that contain
very-low-, low- and moderate-income housing units, including any currently
anticipated future developments that will provide very-low-, low-
and moderate-income housing units.
C.
Projects receiving federal low-income housing tax credit financing
shall comply with the income and bedroom distribution requirements
of UHAC at N.J.A.C. 5:80-26.3 (with the exception that the UHAC requirement
for 10% of the affordable units in rental projects being required
to be at 35% of median income be modified as required by the statutory
requirement, N.J.S.A. 52:27D-329.1, to 13% of affordable units in
such projects shall be required to be at 30% of median income) and
the length of affordability controls applicable to such projects shall
be not less than a thirty-year compliance period plus a fifteen-year
extended use period.
A.
Ridgefield Park's rehabilitation program shall be designed to
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.
B.
In order to satisfy its rehabilitation obligation, the Village shall
participate in the Bergen County Home Improvement Program ("HIP")
through a Shared Services Agreement between the Village and the County,
a copy of which shall be on file with the Village Clerk. The Bergen
County HIP is administered by the Bergen County Division of Community
Development, located at One Bergen County Plaza, 4th Floor, Hackensack,
New Jersey 07601. Additional information can be obtained by contacting
the HIP program administrators at 201-336-6999 or GetHIP@co.bergen.nj.us.
C.
Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds.
D.
All rehabilitated units shall remain affordable to very-low-, low-
and moderate-income households for a period of 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.
E.
The Village of Ridgefield Park shall dedicate a minimum of $10,000
for each unit to be rehabilitated through this program, reflecting
the minimum hard cost of rehabilitation for each unit.
G.
The Village of Ridgefield Park shall designate, subject to the approval
of the department, one or more Administrative Agents to administer
the rehabilitation program in accordance with N.J.A.C. 5:91 and N.J.A.C.
5:93. The Administrative Agent(s) shall provide a rehabilitation manual
for the owner-occupancy rehabilitation program and a rehabilitation
manual for the rental-occupancy rehabilitation program to be adopted
by resolution of the governing body and subject to approval of the
department. Both rehabilitation manuals shall be available for public
inspection in the Office of the Municipal Clerk and in the office(s)
of the Administrative Agent(s).
H.
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(1)
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.
(2)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(3)
Rents in rehabilitated units may increase annually based on the standards
in N.J.A.C. 5:93-9.
(4)
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.
A.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
B.
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by COAH or
the Court.
(1)
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.
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
|
Inclusionary developments that result in an affordable housing
obligation that is fractional shall round up and provide the additional
affordable unit.
A.
Very-low/low/moderate split and bedroom distribution of affordable
housing units:
(1)
The fair share obligation shall be divided equally between low- and
moderate- income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of median income).
The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(2)
At least 25% of the obligation shall be met through rental units,
including at least half in rental units available to families.
(3)
A maximum of 25% of the Village's obligation may be met with
age restricted units. At least half of all affordable units in the
Village's Plan shall be nonrestricted.
(4)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units (including
very-low-income units).
(5)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total very-low-, low- and moderate-income
units;
(b)
At least 30% of all very-low-, low- and moderate-income units
shall be two-bedroom units;
(c)
At least 20% of all very-low-, 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.
(6)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
very-low-, low- and moderate-income units within the inclusionary
development. This standard may be met by having all one-bedroom units
or by having a two-bedroom unit for each efficiency unit. The Village
shall not be permitted to claim credit to satisfy its obligations
under the Settlement Agreement for age-restricted units that exceed
25% of all units developed.
B.
Accessibility requirements.
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
(2)
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or casing for the installation of a door, on the first floor; and
(e)
If not all of the foregoing requirements in Subsection B (2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a, et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that Montvale has collected funds from the developer
sufficient to make 10% of the adaptable entrances in the development
accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a person with disabilities who is purchasing or
will reside in the dwelling unit, an accessible entrance shall be
installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Village of Ridgefield Park's Affordable Housing Trust
Fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Village of Ridgefield Park for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Village
of Ridgefield Park for the conversion of adaptable to accessible entrances.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Village's Affordable Housing Trust Fund in care
of the Village Chief Financial Officer who shall ensure that the funds
are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[6]
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, very-low-,
low- and moderate-income units shall be integrated with the market
units.
(2)
In inclusionary developments, very-low-, low- and moderate-income
units shall have access to all of the same common elements and facilities
as the market units.
D.
Maximum rents and sales prices.
(1)
Income limits for all units that are part of the Plan required by
this agreement and for which income limits are not already established
through a federal program exempted from the Uniform Housing Affordability
Controls pursuant to N.J.A.C. 5:80-26.1 shall be updated by the Village
annually within 30 days of the publication of determinations of median
income by HUD as follows:
(a)
Regional income limits shall be established for the region that
the Village is located within (Region 1) based on the median income
by household size, which shall be established by a regional weighted
average of the uncapped Section 8 income limits published by HUD.
To compute this regional income limit, the HUD determination of median
county income for a family of four is multiplied by the estimated
households within the county according to the most recent decennial
census. The resulting product for each county within the housing region
is summed. The sum is divided by the estimated total households from
the most recent decennial census in the Village's housing region.
This quotient represents the regional weighted average of median income
for a household of four.
(b)
The income limit for a moderate-income unit for a household
of four shall be 80% of the regional weighted average median income
for a family of four. The income limit for a low-income unit for a
household of four shall be 50% of the HUD determination of the regional
weighted average median income for a family of four. The income limit
for a very-low-income unit for a household of four shall be 30% of
the regional weighted average median income for a family of four.
These income limits shall be adjusted by household size based on multipliers
used by HUD to adjust median income by household size. In no event
shall the income limits be less than those for the previous year.
(c)
The Village shall utilize the most recent income limits calculated
after HUD has published revised determinations of median income for
the next fiscal year.
(2)
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC, utilizing the regional income limits established by COAH or
a successor entity.
(a)
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 Housing Region 1 determined pursuant to Subsection D(12).
(b)
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.
(3)
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 Village annually by taking the percentage increase of the income limits calculated pursuant to Subsection D(2) 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.
(4)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(5)
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both very-low-,
low- and moderate-income units, provided that at least 13% of all
low- and moderate-income rental units shall be affordable to very-low-income
households, earning 30% or less of the regional median household income,
with such very-low-income units counted towards the low-income housing
requirement.
(6)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(7)
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, the
following standards shall be used:
(a)
A studio 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.
(8)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
(9)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as it may be amended and supplemented; provided, however, that the
price shall be subject to the affordability average requirement of
N.J.A.C. 5:80-26.3, as it may be amended and supplemented.
(10)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant paid utilities,
as determined under N.J.A.C. 5:80-26.4, as it may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as it may be amended and
supplemented.
(11)
The price of owner-occupied very-low-, low- and moderate-income
units may increase annually based on the percentage increase in the
regional median income limit for each housing region. In no event
shall the maximum resale price established by the Administrative Agent
be lower than the last recorded purchase price.
(12)
The rent of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the United States. This increase
shall not exceed 9% in any one year. Rents for units constructed pursuant
to low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
A.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by HUD for its Section 8 program.
In referring certified households to specific restricted units,
the Administrative Agent shall, to the extent feasible and without
causing an undue delay in the occupancy of a unit, strive to:
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as it may be amended and supplemented, and
each restricted ownership unit shall remain subject to the requirements
of this chapter for a period of at least 30 years, until Ridgefield
Park takes action to release the unit from such requirements; prior
to such action, a restricted ownership unit shall remain subject to
the requirements of N.J.A.C. 5:80-26.1, as it may be amended and supplemented.
B.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Administrative Agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
D.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Administrative Agent a recapture
note obligating the purchaser (as well as the purchaser's heirs,
successors and assigns) to repay, upon the first nonexempt sale after
the unit's release from the restrictions set forth in this chapter,
an amount equal to the difference between the unit's nonrestricted
fair market value and its restricted price, and the recapture note
shall be secured by a recapture lien evidenced by a duly recorded
mortgage on the unit.
E.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as it may be amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as it may be amended and supplemented,
including:
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. See § 172-17.
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as it may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income, and moderate-income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
B.
Notwithstanding the foregoing, however, the Administrative Agent
may, upon approval by the Board of Commissioners, and subject to the
court's approval, permit moderate-income purchasers to buy low-income
units in housing markets if the Administrative Agent determines that
there is an insufficient number of eligible low-income purchasers
to permit prompt occupancy of the units. All such low-income units
to be sold to moderate-income households shall retain the required
pricing and pricing restrictions for low-income units.
C.
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.
D.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
B.
With the exception of First Purchase Money Mortgages, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that adds an additional bathroom. In no
event shall the maximum sales price of an improved housing unit exceed
the limits of affordability for the larger household.
B.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as it may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter for a period of at least 30 years, until Ridgefield
Park takes action to release the unit from such requirements. Prior
to such action, a restricted rental unit shall remain subject to the
requirements of N.J.A.C. 5:80-26.1, as it may be amended and supplemented.
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 the County of Bergen. The deed shall also identify each affordable
unit by apartment number and/or address and whether that unit is designated
as a very-low-, low- or moderate-income unit. Neither the unit nor
its affordability designation shall change throughout the term of
the deed restriction. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease. 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.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as it may be amended and supplemented, and shall be determined as
follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as it may be
amended and supplemented; provided, however, that this limit may be
exceeded if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents reliable anticipated third-party assistance
from an outside source such as a family member in a form acceptable
to the Administrative Agent and the owner of the unit.
