[HISTORY: Adopted by the Board of Commissioners of the Town of West New York as indicated in article histories. Subsequent amendments noted where applicable.]
[Adopted 12-17-1986 by Ord. No. 1747[1]]
WHEREAS, a housing study has demonstrated that a significant portion of existing multifamily housing in the Town of West New York is substandard and in need of improvement;
WHEREAS, it is beneficial for the Town of West New York to encourage and promote improvement of existing substandard multifamily housing so that the same will result in affordable housing for low- and moderate-income residents; and
WHEREAS, it is in the best interest of the public health and welfare of the citizens of the Town of West New York that any improvement on or replacement of any existing multifamily housing in the Town of West New York be subject to a mandatory set aside of 20% of the total dwelling units in the building, 10% for low-income and 10% for moderate-income dwelling units, pursuant to the procedures hereinafter set forth;
Now therefore, be it ordained by the Mayor and Board of Commissioners of the Town of West New York, County of Hudson, State of New Jersey, as follows:
[1]
Editor's Note: This article was formerly named "Mandatory Set Aside" and was renamed 10-2-2024 by Ord. No. 32/24.
As used in this article, the following terms shall have the meanings indicated:
IMPROVEMENT
Any capital improvements to a multifamily dwelling having a cost for materials and labor in excess of $10,000 for the entire building.
LOW-INCOME DWELLING UNIT and MODERATE-INCOME DWELLING UNIT
Any allocated space in a multifamily structure which is to be sold as a self-contained residential unit containing a separate bathroom, kitchen and sleeping quarters for the housing of a family earning the income levels as defined in the definition of low-income, moderate-income and affordable housing.
LOW-INCOME, MODERATE-INCOME AND AFFORDABLE HOUSING
As set forth by the Fair Housing Council of the State of New Jersey.
MULTIFAMILY HOUSING or MULTIFAMILY DWELLING
Any existing multifamily structure containing more than four existing residential dwelling units on the total tax lot and block as currently registered in the tax office.
[Amended 10-2-2024 by Ord. No. 32/24]
A. 
Residential developments. The developer of any project creating new residential units, including previously constructed or partially constructed projects for which the affordable housing obligation related thereto, either in whole or in part, and to such extent thereof, has not been satisfied, shall be required to create as set-aside units, or to contribute in lieu, or by any combination thereof, pursuant to the following options, 20% of the number of such new residential units:
(1) 
To build up to 20% of the units as part of the development as follows: 10% of the total dwelling units shall be allocated to low-income and 10% of the total dwelling units applied to moderate-income dwellings; or
(2) 
To rehabilitate an equal number of existing substandard units in the Town of West New York, or, if no such units exist, to create set-aside units elsewhere in the Town, subject to the approval of the Housing Trust Council; or
(3) 
With the approval of the Housing Trust Council, to create an equal number of senior citizen housing units outside the development but elsewhere within the Town of West New York; or
(4) 
To contribute to the Affordable Housing Trust Fund, as set forth in § 221-2.1.
B. 
Nonresidential developments. The developer of any new nonresidential project containing in excess of 50,000 square feet shall have an obligation to contribute to the Housing Trust Fund, as set forth in § 221-2.1.
C. 
Special requirements for planned unit developments. For purposes of determining compliance of a planned development with § 221-2A and B above:
(1) 
All housing within the planned development shall be considered a single development for purposes of the set-aside calculations set forth in § 221-2A above.
(2) 
Any planned development shall contain at least 250 dwelling units.
[Added 10-2-2024 by Ord. No. 32/24]
A. 
Formation. The Board of Commissioners of the Town of West New York shall establish and maintain an Affordable Housing Trust Fund, to be funded by contributions from residential and nonresidential developers in lieu of set-aside units. The members of the Board of Commissioners, from time to time, shall serve as the trustees of the Affordable Housing Trust Fund and shall have such powers as are necessary and convenient to utilize the trust funds for the purposes of implementing the provisions of the Town's Affordable Housing Program, as provided within this chapter.
B. 
Developers contributions. Whenever, under § 221-2, a developer is required or permitted to contribute to the Affordable Housing Trust Fund, the amount of the contribution is to be determined as follows:
(1) 
A nonresidential developer required to contribute to the Affordable Housing Trust Fund shall make a contribution to such fund in the amount of 1% of the equalized assessed value of the nonresidential development.
(2) 
A residential developer electing to contribute to the Affordable Housing Trust Fund, in lieu of building low- or moderate-income housing, shall make a contribution of $120,000 in lieu of constructing each required low-income unit and $80,000 in lieu of constructing each required moderate-income unit, provided that any development which is not granted any exemption or abatement of real estate taxes shall be responsible to make discounted contributions of 80% of the amounts set forth hereinabove in lieu of construction for the units attributable to the development so abated or exempted.
C. 
Timing of contribution. A developer making a contribution to the Housing Trust Fund shall make such contribution as follows:
(1) 
For nonresidential developments, 50% of the estimated contribution to the Housing Trust Fund, based upon the then-estimate by the Tax Assessor of the equalized assessed value of the development, shall be paid at or before the issuance of the first building permit for the development; and the balance of the contribution to the Housing Trust Fund, based upon the final equalized assessed value of the development as determined by the Tax Assessor, shall be paid at or before the issuance of the first certificate of occupancy for the development.
(2) 
For residential developments, 50% of the total contribution shall be prorated among the total number of housing units in the proposed residential development and such prorated amount shall be paid at or before the issuance of a building permit for each unit. The balance of the required contribution shall be prorated among the number of housing units in the proposed residential development and such prorated amount shall be paid at or before the issuance of a certificate of occupancy for each unit.
D. 
Deposit of funds. The Town shall establish and maintain an account for the Housing Trust Fund in such bank licensed to hold trust funds in New Jersey as designated, in writing, by the Town's Housing Trust Council for the purpose of receiving contributions from developers. All contributions paid by developers pursuant to this subsection shall be deposited into this fund.
E. 
Use of funds. Money deposited into the Housing Trust Fund may be used for any activity, project or purpose determined by the Town of West New York Board of Commissioners, including any community benefit to address the low- and moderate-income housing and related needs of the Town of West New York. Such activities may include, but are not necessarily limited to: housing rehabilitation, new construction, regional contribution agreements, the roads and infrastructure for low- and moderate-income housing sites, assistance designed to render units more affordable to low- and moderate-income households, any public facility or any improvement thereto, such as, but not limited to, schools, recreational facilities, government offices, police stations, parking garages, transportation systems or facilities, roads, utility infrastructure and systems and the like, and administrative costs necessary to implement the Town's Housing Element and its affordable housing and related projects.
F. 
Miscellaneous provisions.
(1) 
Developers of at least 20% low- and moderate-income units in a residential development shall be exempt from paying Affordable Housing Trust Fund contributions.
(2) 
Developers that expand an existing structure by adding more than 5,000 square feet to a building in a previously approved development shall contribute to the Housing Trust Fund. The contribution shall be calculated based on the increase in the equalized assessed value of the improved structure.
A. 
Any applicant or developer shall include as part of his application a dedication in recordable form of specific dwelling units within the proposed project that are allocated for low- and moderate-income dwellings. Each of said units shall be specifically identified by the prefix "LI" for low income and "MI" for moderate income. No more than 20% of any floor or group of horizontal allocated units on a single level shall be LI or MI. The intent of this provision is that the LI and MI units shall be disbursed throughout the project and not concentrated in a single location.
B. 
Any applicant or developer shall include as part of his application a binding consent in recordable form submitting each identified LI and MI unit to perpetual administration by the Housing Trust Council of the Town of West New York to assure that each such unit remain dedicated and used for the LI and MI purposes.
C. 
Any applicant or developer shall include as part of his application a binding statement in recordable form that in the event that any LI or MI unit is sold in fee, co-op or condominium or in any other form, the deed or other title or conveyance document for that specific unit will contain a restrictive convenant prohibiting the sale of the unit for a price in excess of the initial purchase price for the unit on first sale, plus consumer price index adjustment thereof.
A. 
Within 60 days from the passage of this article, the Mayor and Commissioners of the Town of West New York shall appoint a Housing Trust Council to administer this article. Such Council shall consist of five citizens to serve for five-year terms, and each shall have the following qualifications:
(1) 
One member of the Mayor and Commissioners.
(2) 
One member of the Rent Leveling Board.
(3) 
One member of the Planning Board.
(4) 
One owner of a multifamily dwelling.
(5) 
One existing low-income or moderate-income resident of West New York.
B. 
In addition, each of the members of the Housing Trust Council shall have been legal domiciliary of the Town of West New York for a minimum of five years prior to appointment.
The Housing Trust Council shall be allocated to the Department of Public Affairs. Each member shall serve without compensation. Its expenses shall be budgeted and paid for by the Town of West New York. The Housing Trust Council shall review all applications for development or improvement of existing multifamily housing to assure completeness and compliance with this article and make recommendation to the approving agency. In addition, the Housing Trust Council shall review all applications for transfer or sale of any LI or MI dwelling unit, and it shall also review and approve the continued qualification of that unit for LI or MI designation. The Housing Trust Council shall also have the right to review financial statements of applicants for initial occupancy of any LI or MI unit and for continued occupancy by any resident based on submission of supportive financial data by said resident as required by the Council.
Any applicant for occupancy of an LI or MI unit who has been a resident of the Town of West New York for a minimum of three years prior to his or her application shall be given a preference by the developer and the Housing Trust Council for preemptive occupancy preference for the indigenous poor of the Town of West New York so that they may continue to reside in the town.
This article shall not apply to the Housing Authority of the Town of West New York. This article shall also not apply to any housing development which is preempted by federal or state law, but this article shall apply to any such housing development which at a future time ceases to be preempted by federal or state law.
[Adopted 4-15-1987 by Ord. No. 1772; amended in its entirety 5-1-1987 by Ord. No. 1777]
WHEREAS, the Board of Commissioners has previously taken notice of and documented the emergency in the availability of decent, safe and sanitary low- and moderate-income housing within the Town of West New York; and
WHEREAS, the Board of Commissioners has previously determined that the emergency exists and continues to grow more severe in the Town of West New York as a result of the elimination of a substantial portion of the existing rental housing stock and the insufficient new construction of affordable rental housing, which have caused a substantial and increasing shortage of rental housing affordable by families of low and moderate income, and
WHEREAS, the conversion of rental units to condominium ownership has seriously exacerbated the crisis and heightened the emergency by further reducing the supply of rental housing affordable to individuals and families of low and moderate income; and
WHEREAS, the Town of West New York has determined that condominium units are not affordable to individuals and families of low and moderate income; and
WHEREAS, the Town of West New York has an affirmative responsibility imposed by the Constitution and laws of the State of New Jersey to provide for the health, safety and welfare of its citizens, especially with regard to assuring that all citizens, including those with low and moderate incomes, can find safe, sanitary and decent shelter and to prevent the displacement and subsequent homelessness of its citizens; and
WHEREAS, the Supreme Court of the State of New Jersey has held that every municipality has a constitutional obligation to provide a realistic opportunity for a fair share of its region's present and prospective needs for low- and moderate-income families, pursuant to the doctrine of South Burlington N.A.A.C.P. v. Mt. Laurel Tp., 67 N.J. 151 (1975) and South Burlington N.A.A.C.P. v. Mt. Laurel Tp., 92 N.J. 158 (1983), and the Fair Housing Act N.J.S.A. 52:27D-311 et seq.; and
WHEREAS, many of the communities surrounding the Town of West New York have declared housing emergencies and are undergoing a severe shortage of rental housing affordable to individuals and families of low and moderate income; and
WHEREAS, the Town of West New York has a substantial number of dwelling units occupied by families and individuals with low and moderate incomes; and
WHEREAS, the courts of the State of New Jersey have acknowledged that, despite the constitutional and statutory obligations imposed upon them, many communities in the state have failed to accept their fair share of affordable housing, which severely worsens the plight of low- and moderate-income individuals and families in the Town of New York in search of affordable housing or in fear of displacement; and
WHEREAS, the Board of Commissioners of the Town of West New York has determined that the preservation of existing housing units subject to rent controls as rental units is the most effective and only practical means of preserving existing affordable rental housing units, and
WHEREAS, the Town of West New York has determined that restrictions on the conversion of rental housing units to condominium or cooperative ownership are necessary to effectuate the obligations, duties and responsibilities set forth above; and
WHEREAS, the Town of New York has determined that no other means are feasible at the present time to discharge and obey the constitutional and statutory obligations, duties and responsibilities imposed upon it; and
WHEREAS, the Board of Commissioners finds that the town has a paramount obligation to ameliorate the plight of individuals and families of low and moderate income in danger of displacement and homelessness or desperately in need of safe, decent, sanitary and affordable housing and further finds that pronouncements of the State Legislature and of the New Jersey Supreme Court and of other New Jersey courts all support the governing body's determination; and
WHEREAS, the Board of Commissioners finds that an alternative affordable dwelling unit purchase program, which gives the converter a fair return on its property, while giving the maximum number of persons of low and moderate income a reasonable possibility of purchase, is necessary to effectuate the purposes of this article; and
WHEREAS, the Board of Commissioners finds that the restrictions enacted in this article must remain in effect as long as an emergency continues to exist in the availability of low- and moderate-income housing and as long as our less affluent citizens are threatened with the loss of their homes and cannot find decent, safe and sanitary housing which they can afford to occupy;
Now therefore, be it ordained by the Board of Commissioners of the Town of West New York, County of Hudson, State of New Jersey, as follows:
[1]
Editor's Note: See also Ch. 158, Condominium Conversions.
The short name of this article shall be the "Affordable Housing Preservation Ordinance."
A. 
Commencing with the effective date of this article, every conversion of one or more units of rental housing in the Town of West New York to condominium or cooperative ownership shall comply with the provisions of this article.
B. 
Every building in which a dwelling unit being converted to condominium or cooperative ownership is located shall be in compliance with all state and municipal laws, codes and regulations. Compliance shall be determined by inspection by the appropriate required officials no more than 90 days prior to the date of issuance of any letter, affidavit or other statement of compliance or the status of compliance required by law.
Units in the following structures are not subject to any provisions of this article:
A. 
Dwelling units not subject to Chapter 312, Rent Control, as amended and as may be amended in the future.
B. 
Newly constructed buildings, built from the ground up, whether dwelling units are to be initially rented or sold, in which no dwelling units have been rented and occupied prior to the effective date of this article.
C. 
Uninhabitable buildings which are completely vacant prior to July 1, 1985, provided that no form of coercion or harassment was used in rendering such building uninhabitable.
D. 
Buildings participating in an affordable home ownership program pursuant to § 221-13 below.
E. 
Buildings with one or more dwelling units occupied by tenants, being converted to condominium ownership, in which the 90 days' notice to tenants in occupancy required by N.J.S.A. 2A:18-61.8 has expired as of the effective date of this article; or in the case where a building being converted to condominium ownership is completely vacant, when a master deed has been recorded pursuant to the Condominium Act, N.J.S.A. 46:8B-1 et seq. prior to the effective date of this article; or in the case where a building being converted to cooperative ownership is completely vacant when the ownership of the building has been transferred to a cooperative corporation prior to the effective date of this article.
A. 
This article shall remain in effect until the Board of Commissioners determines, by ordinance, that the housing emergency which necessitated it no longer exists, provided that the Board of Commissioners certifies to the Clerk, within 30 days following each anniversary of the effective date of this article, that an affordable housing emergency continues to exist. In determining the existence of an affordable housing emergency, the Board of Commissioners shall consider and report on the following factors, all with reference to the Town of West New York:
(1) 
The vacancy rate for rental units affordable to individuals and families of low and moderate income.
(2) 
The average household income of rental households compared to the average household income of owner-occupied households.
(3) 
The average annual and monthly carrying costs of condominium or cooperative units of various dimensions, including amortization of purchase price (including closing costs), interest payments, taxes, insurance and association fee.
(4) 
The availability of federal and state affordable housing subsidies.
(5) 
Current remaining fair share need pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301 et seq.
B. 
In the event that no certification is received by the Board within the time stipulated, this article shall expire at the end of the stipulated time period.
Commencing with the effective date of this article:
A. 
No notice of intent to convert and no full plan of conversion, as provided in N.J.S.A. 2A:18-61.8, shall be served on any tenant of a dwelling unit subject to this article, and the Clerk of the Town of West New York shall not accept for filing any notice of intent to convert and full plan of conversion, as provided in N.J.S.A. 2A:18-61.8.
B. 
No original sale of or contract of original sale for a condominium unit or shares in a cooperative corporation shall be concluded or entered into in the Town of West New York.
C. 
No notice of eviction pursuant to N.J.S.A. 2A:18-61.2, Subdivision g, shall be served on any tenant of any dwelling unit subject to this article.
A. 
An affordable home ownership program is a voluntary program approved by the Board of Commissioners, designed to prevent homelessness and displacement, which shall contain the following elements:
(1) 
The building and owner must be in substantial compliance with state and municipal laws and regulations which substantially protect the health and safety of the residents.
(2) 
Every tenant must either purchase his or her unit or be able to remain in the unit at an affordable rent; except that, in the event that a tenant chooses not to participate in the program, the owner shall present an affidavit that withdrawal from the program was voluntary and that no harassment or other form of coercion was employed by the owner. In the event that the tenant does not furnish said affidavit, the owner shall have the burden of proving that no harassment or other form of coercion was employed against said tenant.
(3) 
Restrictions on the resale price of units, where appropriate, to maintain affordable home ownership.
(4) 
Subsidies, if available, to enable tenants desiring to purchase their dwelling units who are unable to afford the converter's fair offering price without assistance.
B. 
The Board of Commissioners is hereby empowered to promulgate regulations incorporating the preceding elements in Subsection A and as otherwise necessary and proper to implement an affordable home ownership program.
C. 
An affordable home ownership program pursuant to this section is a program intended to permit conversions of ownership in circumstances where no tenant is displaced and where guaranties of affordability are maintained on the dwelling units in the program which are subsidized. The Board of Commissioners shall have the sole discretion, guided by the principles set forth in this section and the preamble of this article, to certify or not to certify an affordable home ownership program for a particular property.
A. 
Any conversion of a rental dwelling unit not subject to the provisions of § 221-12 above, by reason of the order of any court of competent jurisdiction or otherwise, unless exempted by § 221-10 above, shall comply with the terms of this section.
B. 
Commencing with the effective date of this article, no converter shall charge or receive, or contract to charge or to receive, for the sale, transfer or conveyance of any converted dwelling unit, a price, including the proportionate share of any blanket encumbrance, in excess of the maximum permissible price therefor, as provided below.
C. 
The maximum permissible price referred to in Subsection B above shall be determined as follows:
(1) 
The base price for such unit shall be an amount equal to 72 times the monthly rent for such unit, as such monthly rent exists immediately prior to conversion. In the event that the dwelling unit is vacant at the time of conversion, the monthly rent for calculating the base price shall be the legal rent which could be charged to a new tenant under Chapter 312, Rent Control, or, if said legal rent cannot be ascertained, then the average of the rents for comparable apartments in the same building or building complex. If such base price equals or exceeds the amount computed under Subsection C(2) below and is not greater than that computed under Subsection C(3) below, then said base price shall be the maximum permissible price for the unit.
(2) 
Subject to the limitation set out in Subsection C(3) below, the maximum permissible price may be increased beyond the base price defined in Subsection C(1) above as follows: If the total of the base prices of all the dwelling units in the property to be converted [as calculated under Subsection C(1) above] is less than the equalized assessed valuation of the property, then the base price of each dwelling unit may be increased by a percentage equal to the percentage by which the total of the base prices of all such units must be increased in order to equal the equalized assessed valuation of the property; provided, however, that in no event shall the maximum permissible price for any dwelling unit exceed that described in Subsection C(3) below.
(3) 
In no event shall the maximum permissible price for a dwelling unit exceed an amount which, when divided into monthly payments as described below, will produce a monthly payment which is more than 20% greater than the monthly rent for such dwelling unit, as such monthly rent exists immediately prior to the conversion. The monthly payments referred to shall be determined by adding together the following items:
(a) 
The monthly maintenance charge for the dwelling unit.
(b) 
Any monthly amount required to be paid pursuant to a schedule of equal monthly payments respecting a blanket encumbrance, in which a portion of such payment is applied to the unpaid balance of such blanket encumbrance and the remainder thereof is applied to the reduction of the principal thereof.
(c) 
An amount sufficient to amortize the entire price paid for the dwelling unit (above the amount of any blanket encumbrance) over a thirty-year period, by equal monthly amounts covering principal and interest, at an interest rate equal to the prevailing mortgage interest rate for fixed-rate mortgages at the time of conversion.
(d) 
An amount sufficient to amortize the entire proportionate share of any balloon balance of a blanket encumbrance over a thirty-year period, at an interest rate equal to the prevailing mortgage interest rate for fixed-rate mortgages at the time of conversion.
D. 
In any conversion in which the converter maintains that the provisions of Subsection C(2) apply and permit a price greater than the "base price" for any unit, the burden of proof shall be on the converter to demonstrate such fact.
E. 
If the maximum permissible price for conversion of a dwelling unit is increased to reflect equalized assessed value, as provided in Subsection C(2) above, and if, by virtue of tax appeal respecting such property, the equalized assessed value of such property for the year in question is reduced, then the converter shall refund to the purchaser of such unit an amount sufficient to reflect such unit's proportionate reduction in equalized assessed value. In the event that a refund is required by this subsection, the obligation to pay such refund shall create a debtor-creditor relationship between the converter and purchaser only and shall not run with the property or appear as an exception to title to an affected dwelling unit.
F. 
In any conversion in which a tenant contends that the provisions of Subsection C(3) apply and thus limit the maximum permissible price of a unit below that which could otherwise be charged therefor, the burden of establishing such fact shall be on the tenant, who shall be required to submit to the Rent Control Board such information as the Rent Control Board determines is necessary to make a decision thereon.
G. 
In the event that an efficient converter cannot make a just and reasonable return on his investment, the converter may apply to the Rent Control Board for an increase in the maximum permissible price of dwelling units subject to this article, provided that the converter is the owner of the property in question as at the date the application is filed.
(1) 
The converter shall serve upon each tenant of a dwelling unit subject to this article, by registered or certified mail or personal service, a notice of said application setting forth the basis for said application, the amount of the price increase requested for the dwelling unit occupied by said tenant and the calculations involved. A copy of such notice shall be included with the converter's application, together with the proof of service of the notice and application. In the case of an unoccupied dwelling unit the converter shall file an affidavit certifying to the Rent Control Board that the dwelling unit is vacant and stating the name of the most recent tenant in occupancy, if known, and the date of termination of said occupancy, if known.
(2) 
The Rent Control Board may grant the converter an increase in the maximum permissible price of a dwelling unit, pursuant to the provisions of this section. No converter shall increase the maximum permissible price of a dwelling unit as calculated above without first obtaining approval from the Rent Control Board.
(3) 
The Rent Control Board must decide any application submitted pursuant to this subsection in a prompt and expeditious manner. No application will be considered unless and until the converter has submitted a complete application and provided all necessary and required documentation to the Rent Control Board or a designated Hearing Officer appointed by the Rent Control Board.
(4) 
After the converter has filed its complete application for an increase with all supporting documents and materials, no new material will be considered by the Hearing Officer or Rent Control Board unless such new material is filed with the Rent Control Board and notice identifying such new material and setting forth a description of such material is served upon each tenant no later than 10 days prior to the date of the hearing.
(5) 
The Rent Control Board shall deny all or part of the relief requested where specific findings of fact support the conclusion that the converter's cost basis in and prior operation of the property to be converted, including but not limited to the purchase price, and the amount and terms of any indebtedness are not reasonable, prudent and/or efficient.
(6) 
Documentation to be presented by the converter in an application pursuant to this subsection must include the following, all in relation to the property in question:
(a) 
Title closing statement or other proofs of purchase.
(b) 
The contract of purchase and sale.
(c) 
Invoices, bills or other proof of the cost of capital improvements performed which affect the cost basis of the property.
(d) 
Canceled checks, paid invoices or other proof of payment of capital improvements which affect the cost basis of the property.
(e) 
Compilation statement of income and expenses relating to the subject property, only for the preceding two years, or from the date of acquisition of title if the property is owned for less than two years.
(f) 
Copies of those portions of tax returns relating to the property for the preceding two years, or the period of the converter's ownership if less than two years.
(g) 
All mortgages, notes and other encumbrances.
(h) 
The deed.
(i) 
Any documents requested by the Rent Control Board and being relevant to the subject application and being necessary to the Rent Control Board's deliberative process.
(7) 
Claimed expenditures not supported by the appropriate documentation will not be allowed.
(8) 
If the Rent Control Board determines that the converter has withdrawn all or part of his investment through refinancing or through any other means, then said withdrawal shall be deducted from the converter's equity in said property, unless used for capital improvement of said property, which must be proven by the converter.
H. 
In making any required computation under this article, the Board, to the extent that it is satisfied as to the accuracy thereof, may refer to information as to maintenance costs, other cost and expense items, the terms, conditions and amount of any blanket encumbrance, and other financial or other data or information, as set out in the developer's application for registration and public offering statement submitted to the Division pursuant to the New jersey statute known as the "Planned Real Estate Development Full Disclosure Act," N.J.S.A. 45:22A-21 et seq., and accepted by said Division for registration pursuant to said statute.
I. 
If the original sale of a dwelling unit by a converter was subject to and calculated under this subsection, then no resale of such dwelling unit shall be permitted at a price greater than the purchase price paid by the seller, plus:
(1) 
The actual cost of all capital improvements.
(2) 
A percentage increase in said price, equal to either:
(a) 
Two-thirds of the percentage increase in the CPI between the date the unit was purchased by the seller and a date three months prior to the closing of such resale; or
(b) 
The percentage increase in the monthly maintenance costs for the dwelling unit between the date the unit was purchased by the seller and a date three months prior to the closing date of such resale, whichever of the two, Subsection I(2)(a) or (b), is higher.
(3) 
A just and reasonable return on the owner's equity investment.
J. 
The affordable unit purchase program set forth in this section shall be administered and enforced by the Board of Commissioners, which may establish an Office of Conversion Administration headed by an Administrator, who shall be appointed by and shall serve at the discretion of the Mayor. The Mayor may, in his discretion, designate an existing subdivision of the Department of Public Affairs to perform the duties of the Office of Conversion Administration and shall have the authority, in his sole discretion to appoint Hearing Officers to assist the Rent Board. In so administering and enforcing this subsection, the Rent Board shall have and exercise all of the powers herein granted to the Rent Board, either expressly or by implication, and all powers necessary and appropriate to see that the purposes of this article are executed and carried out, including specifically, but not limited to:
(1) 
The authority to issue rules and regulations as it deems necessary to implement the purposes of this article, subject to the approval of the Mayor, which rules and regulations shall have the force of law until revised, repealed or amended from time to time by the Rent Control Board in the exercise of its discretion, provided that such rules or regulations are filed with the Town Clerk. The governing body may reject any such rules or regulations of the Rent Control Board within 60 days of the issuance of such rule or regulation, and such rejected rule or regulation shall be deemed null and void ab initio.
(2) 
To hold hearings and make adjudications.
K. 
In addition to Subsection J above, the Rent Control Board is hereby specifically empowered to delegate the authority to conduct any hearing required pursuant to this subsection, and to make any factual determinations required by the same, to a Hearing Officer selected by the Mayor.
L. 
The Rent Control Board is hereby granted the authority to order the refunding of any payments made in excess of the maximum payments permitted by this subsection, together with interest and the reasonable expenses of recovering such excess payments, including reasonable attorney fees.
M. 
The Rent Control Board is hereby granted the authority to establish by regulation a reasonable fee schedule in connection with the administration of this subsection.
N. 
The Rent Control Board or Hearing Officer shall give all parties reasonable opportunity to be heard before making any determination. All determinations must be in writing.
O. 
The final decision and order of the Rent Control Board shall be in writing or stated in the record of the Rent Control Board's proceedings. Findings of fact, if set forth by reference to the language of this article, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. The parties shall be notified either personally or by certified mail of the final decision and order.
P. 
Any party may appeal a final decision and order of the Rent Control Board to a court of competent jurisdiction according to law.
A violation of any provision of this article shall be punishable by a fine of not more than $1,000 and imprisonment for not more than 90 days, or both. A violation respecting more than one dwelling unit shall be considered a separate violation as to each such dwelling unit.
As used in this article, the following terms shall have the meanings indicated:
BALLOON BALANCE OF A BLANKET ENCUMBRANCE
The unpaid balance of a blanket encumbrance which will become payable at some future date, which will not be totally amortized (down to zero balance) by regular monthly or other periodic payments.
BLANKET ENCUMBRANCE
A mortgage, judgment or any other lien or encumbrance which encumbers more than one dwelling unit being converted to a condominium or cooperative form of ownership and which is not to be discharged at or before the closing of a sale of such a dwelling unit.
CONVERTER
The owner (or representative of the owner) of property containing dwelling units covered by this article, who proposes to or takes any action for the purpose of effecting a conversion of such property and/or dwelling units from any other form of ownership into a cooperative or condominium form of ownership.
COOPERATIVE and COOPERATIVE CORPORATION
A cooperative housing association or corporation which entitles the holder of a membership interest therein to possess and occupy a unit of dwelling space owned and leased by said association or corporation.
CPI
The consumer price index (all items; base year 1967-100) for the region of the United States of which West New York is a part, published periodically by the United States Department of Labor, Bureau of Labor Statistics.
DIVISION
The Division of Housing and Urban Renewal of the New Jersey State Department of Community Affairs.
DWELLING UNIT
Any dwelling unit used for residential purposes, including both rental, cooperatively owned and condominium units.
EQUALIZED ASSESSED VALUATION
The value of the residential portion of real property, calculated by dividing the assessed value of the property, for municipal tax purposes, by the equalization ratio published by the Director of the Division of Taxation of the State of New Jersey, and multiplying the result by the fraction of the square footage of the floor area of the building and the area of the adjacent lot used for residential purposes, including corridors, storage space, stairwells and other such uses required in residential space, over the total square footage of the floor area of the building and the area of the adjacent lot with areas used in common being allocated according to the same proportion.
LOW INCOME
A household earning 50% or less of the median income for the West New York, New Jersey, PMSA (Hudson County), as adjusted for household size and as promulgated by the New Jersey Department of Community Affairs and updated from time to time.
MAINTENANCE COSTS
Includes real estate taxes, utility expenses and actual expenses for repairs, upkeep and maintenance respecting a dwelling unit, but shall not include principal or interest payments on any blanket encumbrance or other mortgage or encumbrance.
MAYOR
The Mayor of the Town of West New York.
MODERATE INCOME
A household earning 50% to 80% of the median income for the West New York, New Jersey, PMSA (Hudson County), as adjusted for household size and as promulgated by the New Jersey Department of Community Affairs and updated from time to time.
MONTHLY MAINTENANCE CHARGE
The annual maintenance costs divided by 12.
ORIGINAL SALE
The first sale by the converter of a condominium unit or shares in a cooperative.
PREVAILING INTEREST RATE
The interest rate at which a mortgage loan, to finance the highest permissible percentage of the purchase price of a dwelling unit undergoing conversion, may be obtained by a qualified borrower from a bank, savings bank, savings and loan association or other financial institution authorized to make such a loan in the Town of West New York. For the purpose of computations made pursuant to this article, the Rent Control Board shall determine the prevailing interest rate at any given time, either by regulation or adjudication in particular cases.
PROPORTIONATE SHARE OF A BLANKET ENCUMBRANCE
That portion of the principal and interest of a blanket encumbrance which is required to be paid by the owner of any particular dwelling unit. If the application for registration or the public offering statement filed with, and accepted by, the Division, in connection with the converting of any such unit, sets out any such proportionate share, then such share, so set out, shall apply to any calculations to be made hereunder; otherwise, the proportionate share of any dwelling unit shall be a percentage of the total amount to be paid respecting a blanket encumbrance, which is the same percentage as the price being charged by the converter for the dwelling unit in question bears to the total price being charged by the converter for all dwelling units encumbered by such blanket encumbrance.
RENT CONTROL BOARD
The Board created under Chapter 312, Rent Control.
RESALE OF A DWELLING UNIT
Any sale subsequent to the original sale thereof.
UNINHABITABLE BUILDING
A structure which is completely vacant and unfit for human habitation as defined by the statutes, codes and ordinances in full force and effect in the State of New Jersey, County of Hudson and Town of West New York.
A. 
Because this article is necessary for the health, safety and welfare of the people of West New York, it shall be construed liberally to effectuate the purposes set forth in the preamble.
B. 
Any dwelling unit converted subject to this article shall comply with state laws and regulations governing the conversions of dwelling units to condominium or cooperative ownership, including, without limitation, the Condominium Act, N.J.S.A. 46:8B-1 et seq., and the Planned Real Estate Development Full Disclosure Act, N.J.S.A. 45:22A-21 et seq.
C. 
Wherever possible, this article shall be construed to avoid conflict with state laws and regulations and shall be construed to be interpretative of state laws and regulations in related domains, consistent with the obligations imposed upon the Mayor and Board of Commissioners by the Constitution and Legislature of the State of New Jersey.