[Adopted 4-7-2025 by Ord. No. 2025-08[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III, Low- and Moderate-Income Housing Units, adopted 10-14-2002 by Ord. No. 11-02, and Art. IV, Municipal Housing Liaison, adopted 11-27-2006 by Ord. No. 16-06.
A. 
This article is intended to assure that very-low-, low-, and moderate-income units ("affordable units") are created with controls on affordability 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 Borough of Leonia 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. (hereinafter "fair share plan"). The fair share plan was endorsed by the Borough Council. The fair share plan describes how the Borough of Leonia shall address its fair share of very-low-, low-, and moderate-income housing as documented in the fair share plan.
C. 
The Borough of Leonia shall track the status of the implementation of the fair share plan.
The following terms when used in this article shall have the meanings given in this section:
ACCESSORY APARTMENT
Shall mean a self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site.
ACT
Means the Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
ADAPTABLE
Means constructed in compliance with the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
Means the entity responsible for administering the affordability controls of this article with respect to specific restricted units, as designated pursuant to N.J.S.A. 52:27D-321 and N.J.A.C. 5:80-26.15.
AFFIRMATIVE MARKETING
Means 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
Means the average percentage of regional median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households.
AFFORDABLE
In the case of an ownership unit, means that the sales price for the unit conforms to the standards set forth at N.J.A.C. 5:80-26.7 and, in the case of a rental unit, that the rent for the unit conforms to the standards set forth at N.J.A.C. 5:80-26.13.
AFFORDABLE DEVELOPMENT
Means a housing development all or a portion of which consists of restricted units.
AFFORDABLE HOUSING DEVELOPMENT
Means a development included in the Borough's fair share plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Means any mechanism in the Borough's fair share plan prepared or implemented to address the Borough's fair share obligation.
AFFORDABLE UNIT
Means a housing unit proposed or created pursuant to the Act, credited pursuant to applicable COAH regulations, the FSHC Settlement Agreement, or an order of the Superior Court.
AGE-RESTRICTED UNIT
Means a housing unit designed to meet the needs of, and intended exclusively for, the residents of an age-restricted segment of the population where the adult member of the family who is the head of the household for the purposes of determining income eligibility and rent is a minimum age of either 62 years, or 55 years and meets the provisions of 42 U.S.C. §§ 3601 through 3619, except that due to death, a surviving spouse of less than 55 years of age is permitted to continue to reside in the unit.
AGENCY
Means the New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 through 55:14K-44), in, but not of, DCA.
ALTERNATIVE LIVING ARRANGEMENT
Means 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.
ASSISTED LIVING RESIDENCE
Means a facility licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor. Apartment units must offer, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.
CERTIFIED HOUSEHOLD
Means a household that has been certified by an administrative agent as a very-low-income household, a low-income household or a moderate-income household.
COAH
Means the Council on Affordable Housing established in, but not of, DCA by the Act and that was abolished effective March 20, 2024, by Section 3 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1).
CONTINUUM OF CARE or CoC
Means one of the 16 local planning bodies in New Jersey that coordinate service providers and other interested parties to prevent and end homelessness, as authorized by Subtitle C of Title IV of the McKinney-Vento Homeless Assistance Act of 1987, 42 U.S.C. §§ 11431 through 11435.
COUNTY-LEVEL HOUSING JUDGE
Means a judge appointed pursuant to Section 5 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-313.2), to resolve disputes over the compliance of municipal fair share affordable housing obligations and municipal fair share plans and housing elements with the Act.
DCA and DEPARTMENT
Mean the State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
Means 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
Means any person, partnership, association, entity, 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
Means 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.
DISPUTE RESOLUTION PROGRAM
Means the Affordable Housing Dispute Resolution Program, established pursuant to Section 5 of P.L. 2024, c. 2 (N.J.S.A. 52:27D-313.2).
DIVISION
Means the Division of Local Planning Services in DCA.
HOUSEHOLD INCOME
Means a household's gross annual income calculated in a manner consistent with the determination of annual income pursuant to Section 8 of the United States Housing Act of 1937 (Section 8), not in accordance with the determination of gross income for federal income tax liability.
HOUSING REGION
Means a geographic area established pursuant to N.J.S.A. 52:27D-304.2b.
INCLUSIONARY DEVELOPMENT
Means a development containing both affordable units and market-rate units. This term includes, but is not necessarily limited to, new construction, the conversion of a nonresidential structure to residential and the creation of new affordable units through the reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
Means a household with a household income equal to 50% or less of the regional median household income.
LOW-INCOME UNIT
Means a restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
Means 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
Means housing not restricted to low- and moderate-income households that may sell or rent at any price.
MEDIAN-INCOME
Means the median income by household size for the applicable county, as adopted annually by the Department.
MODERATE-INCOME HOUSEHOLD
Means a household with an income in excess of 50% but less than 80% of the regional median household income.
MODERATE-INCOME UNIT
Means a restricted unit that is affordable to a moderate-income household.
MUNICIPAL HOUSING LIAISON or MHL
Means an appointed municipal employee who is, pursuant to N.J.A.C. 5:99-6, responsible for oversight and/or administration of the affordable units created within the municipality.
NEW JERSEY HOUSING RESOURCE CENTER or HOUSING RESOURCE CENTER
Means the online affordable housing listing portal, or its successor, overseen by the Agency pursuant to N.J.S.A. 52:27D-321.3 et seq.
NON-EXEMPT SALE
Means any sale or transfer of ownership of a restricted unit to one's self or to another individual other than the transfer of ownership between spouses or civil union partners; the transfer of ownership between former spouses or civil union partners 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.
NONPROFIT
Means an organization granted nonprofit status in accordance with Section 501(c)(3) of the Internal Revenue Code.
PRICE DIFFERENTIAL
Means the difference between the controlled sale price of a restricted unit and the fair market value of the unit minus reasonable real estate broker fees, determined as of the date of a proposed contract of sale for the unit.
RANDOM SELECTION PROCESS
Means a lottery process by which currently income-eligible applicant-households are selected, at random, for placement in affordable housing units such that no preference is given to one applicant over another, except in the case of a veterans' preference where such an agreement exists; for purposes of matching household income and size with an appropriately priced and sized affordable unit or another purpose allowed pursuant to N.J.A.C. 5:80-26.17(k)3.
REGIONAL MEDIAN INCOME
Means the median income by household size for an applicable housing region, as calculated annually in accordance with N.J.A.C. 5:80-26.3.
REHABILITATION
Means the repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
RENT
Means 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. With respect to an assisted living residence, rent does not include charges for food and services.
RESTRICTED UNIT
Means 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.
THE DEPARTMENT
Means the Department of Community Affairs of the State of New Jersey, that was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
UHAC
Means the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
Means a household with a total gross annual household income equal to 30% or less of the regional median household income.
VERY-LOW-INCOME UNIT
Means a restricted unit that is affordable to a very-low-income household.
WEATHERIZATION
Means building insulation (for attic, exterior walls and crawl space), siding to improve energy efficiency, replacement storm windows, replacement storm doors, replacement windows and replacement doors, and is considered a major system for rehabilitation.
A. 
The provisions of this article shall apply to all affordable housing developments and affordable housing units that currently exist and that are proposed to be created within the Borough of Leonia pursuant to the Borough's most recently adopted housing element and fair share plan.
B. 
This article shall apply to all developments that contain very-low-, low- and moderate-income housing units, including any currently unanticipated future developments that will provide very-low-, low- and moderate-income housing units.
The Borough of Leonia has present need rehabilitation obligation of 68 units. The Borough will work with Bergen County and/or hire a separate entity to rehabilitate units in the Borough to address the Borough's 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.
A. 
All rehabilitated rental and owner-occupied units shall remain affordable to 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.
B. 
The Borough of Leonia 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.
C. 
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:
(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 or the standards issued by a New Jersey administrative agency with proper authority to issue such standards.
(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:
(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 twenty-year operating contract with the Department of Human Services, Division of Developmental Disabilities, alternative living arrangements shall have at least thirty-year controls on affordability in accordance with UHAC, unless an alternative commitment is approved by the court.
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.
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. At least 13% of all restricted rental units within each bedroom distribution shall be very-low-income units (affordable to a household earning 30% or less of regional median income by household size). The very-low-income units shall be counted as part of the required number of low-income units within the development. At least 50% of the very-low-income units must be available to families.
(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 Borough's obligation may be met with age-restricted units. At least half of all affordable units in the Borough's plan shall be available to families.
(4) 
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be very-low- or low-income units including that 13% shall be very-low-income.
(5) 
Affordable developments that are not age-restricted or supportive housing 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 and the Borough.
(6) 
Affordable developments that are age-restricted or supportive housing 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. This 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; 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 the casing for the installation of a door, on the first floor; and
(e) 
If all of the foregoing requirements in Subsection B(2)(a) through (d) above cannot 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 Subsections 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 Leonia 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 into the Borough of Leonia'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) above shall be used by the Borough of Leonia 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 Borough of Leonia 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 Borough's Affordable Housing Trust Fund in care of the Borough 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) 
For any 100% affordable development comprising one or more restricted units:
(a) 
Restricted units must meet the minimum square footage required for the number of inhabitants for which the unit is marketed and the minimum square footage required for each bedroom, as set forth in the applicable municipal code or the Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4, whichever is greater;
(b) 
Each bedroom in each restricted unit must have at least one window; and
(c) 
Restricted units must include adequate air conditioning and heating;
(2) 
For developments comprising market-rate rental units and restricted rental units:
(a) 
Restricted units must use the same building standards (for example, plumbing, insulation, siding) as market-rate units of the same unit type (for example, flat, townhome) within the same development, except that restricted units and market-rate units may use different interior finishes;
(b) 
Restricted units and market-rate units within the same affordable development must be sited such that restricted units are not concentrated in less desirable locations;
(c) 
Restricted units may not be physically clustered so as to segregate restricted and market-rate units within the same development or within the same building, but must be interspersed throughout the development, except that age-restricted and supportive housing units may be physically clustered if the clustering facilitates the provision of on-site medical services or on-site social services;
(d) 
Residents of restricted units must be offered the same access to communal amenities as residents of market-rate units within the same affordable development. Examples of communal amenities include, but are not limited to, community pools, fitness and recreation centers, playgrounds, common rooms and outdoor spaces, and building entrances and exits;
(e) 
Restricted units must include adequate air conditioning and heating and, if market-rate units provide cooling and heating, restricted units must use the same type of cooling and heating sources as market-rate units of the same unit type;
(f) 
Each bedroom in each restricted unit must have at least one window;
(g) 
Restricted units must be of the same unit type (for example, flat, townhome) as market-rate units within the same building; and
(h) 
Restricted units must be of at least the same size as the most common market-rate unit(s) of the same type and bedroom count within the same development, but under no circumstances shall any restricted unit or bedroom be less than 90% of the minimum size prescribed by the applicable municipal code or Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4, whichever prescribes the greater minimum size;
(3) 
For developments containing for-sale units, including those with a mix of rental and for-sale units, Subsection C(2) above shall govern the rental units, while for-sale units shall adhere to the following:
(a) 
Restricted units must use the same building standards as market-rate units of the same unit type (for example, flat, townhome, single-family home), except that restricted units and market-rate units may use different interior finishes;
(b) 
Restricted units may be clustered, provided that the buildings or housing product types containing the restricted units are integrated throughout the development and are not concentrated in an undesirable location or in undesirable locations;
(c) 
Restricted units may be of different housing product types than market-rate units, provided that developments containing market-rate townhomes or single-family homes offer restricted housing options that also include townhomes or single-family homes;
(d) 
Restricted units must meet the minimum square footage required for the number of inhabitants for which the unit is marketed and the minimum square footage required for each bedroom, as set forth in the applicable municipal code or the Neighborhood Preservation Balanced Housing rules at N.J.A.C. 5:43-2.4, whichever provides the greater minimum square footages;
(e) 
Penthouse and end units may be reserved for market-rate sale, provided that the overall number, value, and distribution of affordable units across the development is not negatively impacted by such reservation(s);
(f) 
Residents of restricted units must be offered the same access to communal amenities as residents of market-rate units within the same affordable development. Examples of communal amenities include, but are not limited to, community pools, fitness and recreation centers, playgrounds, common rooms and outdoor spaces, and building entrances and exits;
(g) 
Each bedroom in each restricted unit must have at least one window; and
(h) 
Restricted units must include adequate air conditioning and heating.
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.
(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 rental units shall be affordable to households earning no more than 52% of median income.
(3) 
The developers and/or municipal sponsors of restricted rental units shall establish at least one rent for each bedroom type for both low-income and moderate-income units, 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, which very-low-income units shall be part of the low-income requirement.
(4) 
The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70% of median income, and each affordable development must achieve an affordability average of 55% for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three different 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.
(5) 
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.
(6) 
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:
(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. 5:80-26.5, as may be amended and supplemented; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.4, 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 size household, including an allowance for tenant-paid utilities, as determined under N.J.A.C. 5:80-26.5, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.4, as may be amended and supplemented.
(9) 
Income limits for all units that are part of the Borough's housing element and fair share plan, 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 Borough annually within 30 days of the publication of determinations of median income by HUD as follows:
(a) 
The income limit for a moderate-income unit for a household of four shall be 80% of the HUD determination of the median income for Housing Region 4 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 median income for Housing Region 1 for a family of four. The income limit for a very-low-income unit for a household of four shall be 30% of the HUD determination of the median income for Housing Region 1 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 the previous year.
(b) 
Regional income limits are based on regional median income, which is established by a regional weighted average of the "median family incomes" published by HUD. The procedure for computing the regional median income is:
[1] 
For each county in the housing region, multiply HUD's determination of the county's "median family income" for a family of four by the Decennial Census's estimated number of households within the county;
[2] 
Add the resulting products for each county within the housing region, then divide the sum by the summed total estimated number of households in the housing region. Round the resulting quotient up to the nearest multiple of 100 to obtain the regional median income for a household of four; and
[3] 
To compute the regional median income for other household sizes, multiply the regional weighted average by the percentage adjustment factors used by HUD in the Section 8 program, then round each percentage-adjusted regional weighted average up to the nearest multiple of 100.
(c) 
To calculate the regional income limits, multiply the relevant percentage by the regional median income for the relevant household size. For example, the regional income limit for a four-person low-income household is equal to 50% of the regional median income for a four-person household, while the regional income limit for a one-person very-low-income household is equal to 30% of the regional median income for a one-person household.
(d) 
Updated regional income limits are effective as of the effective date of the regional Section 8 income limits for the year, as published by HUD, or 45 days after HUD publishes the regional Section 8 income limits for the year, whichever comes later. The new income limits may not be less than those of the previous year.
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 the NJDCA 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. 
Ensure each bedroom is occupied by at least one person, except for age-restricted units;
B. 
Provide a bedroom for every two adult occupants;
C. 
Provide a bedroom for every occupant under the age of 18, unless the household requests a different arrangement, which arrangement may not result in more than two occupants under the age of 18 occupying any bedroom; and
D. 
Avoid placing a one-person household into a unit with more than one bedroom.
A. 
Control periods for restricted ownership units must be in accordance with N.J.A.C. 5:80-26.6, as may be amended and supplemented. Each restricted rental unit must remain subject to the requirements of this article until the end of the control period specified in the unit deed restriction, unless the unit's restriction is extinguished in compliance with Subsection E below or extended in compliance with Subsection F below. A restricted rental unit must remain subject to the requirements of this article for a period of at least 40 years; provided, however, that the control period of any unit that, prior to December 20, the effective date of the amendments to this article as promulgated pursuant to P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1), received substantive certification from COAH, was part of a judgment of compliance from a court of competent jurisdiction, or became subject to a grant agreement or other contract with either the state or a political subdivision thereof will be governed by such grant of substantive certification, judgment, grant agreement, or contract.
(1) 
Rental units created on or after January 1, 2025, and which are subject to affordability controls for low- and/or moderate-income families pursuant to this article are subject to a deed restriction of not less than 40 years.
(2) 
Any project composed entirely of rental units subject to the affordability controls of this section that does not participate in a state-administered preservation program may elect to extinguish the existing deed restriction beginning 30 years following the start of the deed restriction, regardless of original length, provided that the project enters into a new deed restriction of at least 30 years and that the project has applied for and obtained a refinancing and/or has commenced an approved rehabilitation for the purpose of preservation.
(3) 
Any project composed entirely of rental units subject to the affordability controls of this section that participates in a state-administered preservation program may elect to extinguish the existing deed restriction prior to the 30th year, regardless of original length, provided that the project enters into a new deed restriction that, in combination with the original deed restriction, totals at least 60 years.
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 Borough's administrative agent, or an administrative agent appointed by a particular developer, shall determine the restricted price for the unit and shall also determine the non-restricted, 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 Borough's administrative agent, or an administrative agent appointed by a particular developer, 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 restrictions set forth in this section, an amount equal to the difference between the unit's non-restricted 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 section 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. 5:80-26.6(a), as 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 may be amended and supplemented, including:
A. 
The initial purchase price for a restricted ownership unit shall be approved by the Borough's administrative agent, or an administrative agent appointed by a particular developer.
B. 
The Borough's administrative agent, or an administrative agent appointed by a particular developer, shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.
C. 
The master deeds and declarations of covenants and restrictions for of inclusionary developments may not distinguish between the restricted units and market-rate units in the calculation of any condominium or homeowner association fees and special assessments to be paid by low- and moderate-income purchasers and those to be paid by market purchasers. Condominium or homeowner association fees and special assessments charged to affordable units shall be based on the common interest percentage and the full build-out budget. Affordable units in a condominium or homeowner association subject to a municipal ordinance adopted before December 20, 2004, which ordinance provides for condominium or homeowner association fees and/or assessments different from those provided for in this subsection are governed by the ordinance.
D. 
The owners of restricted ownership units may apply to the Borough's administrative agent, or an administrative agent appointed by a particular developer, 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.
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 very-low-income ownership units are reserved for households with a household income less than or equal to 30% of regional median income, low-income ownership units are reserved for households with a household income less than or equal to 50% of regional median income, and moderate-income ownership units are reserved for households with a gross household income less than 80% of regional median income.
B. 
The administrative agent shall certify a household as eligible for a restricted ownership unit when the household is a very-low-income household, 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 35% 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 Borough's administrative agent, or an administrative agent appointed by a particular developer, for a determination in writing that the proposed indebtedness complies with the provisions of this article, and the Borough's administrative agent, or an administrative agent appointed by a particular developer, 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 Borough's administrative agent, or an administrative agent appointed by a particular developer, in accordance with N.J.A.C. 5:80-26.7(c).
A. 
The owner of a restricted ownership unit may apply to the Borough's administrative agent to increase the maximum sales price for the unit to reflect eligible capital improvements made since the purchase of the unit. Eligible capital improvements are limited to those that render the unit suitable for a larger household or that add an additional bathroom. However, the maximum sale price of an improved housing unit may not 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) are 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 Borough's administrative agent, or an administrative agent appointed by a particular developer, 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 Borough's administrative agent, or an administrative agent appointed by a particular developer. Unless otherwise approved by the Borough's administrative agent, or an administrative agent appointed by a particular developer, 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. 
Each restricted rental unit must remain subject to the requirements of this article until the end of the control period specified in the unit deed restriction, unless the unit's restriction is extinguished in compliance with Subsection D below or extended in compliance with Subsection E below. A restricted rental unit must remain subject to the requirements of this article for a period of at least 40 years; provided, however, that the control period of any unit that, prior to December 20, 2024, the effective date of the amendments to this N.J.A.C. 5:80-26.1 et seq., as promulgated pursuant to P.L. 2024, c. 2 (N.J.S.A. 52:27D-304.1), received substantive certification from COAH, was part of a judgment of compliance from a court of competent jurisdiction, or became subject to a grant agreement or other contract with either the state or a political subdivision thereof will be governed by such grant of substantive certification, judgment, grant agreement, or contract.
(1) 
Rental units created on or after January 1, 2025, and which are subject to affordability controls for low- and/or moderate-income families pursuant to this article are subject to a deed restriction of not less than 40 years.
(2) 
Any project composed entirely of rental units subject to the affordability controls of this section that does not participate in a state-administered preservation program may elect to extinguish the existing deed restriction beginning 30 years following the start of the deed restriction, regardless of original length, provided that the project enters into a new deed restriction of at least 30 years and that the project has applied for and obtained a refinancing and/or has commenced an approved rehabilitation for the purpose of preservation.
(3) 
Any project composed entirely of rental units subject to the affordability controls of this section that participates in a state-administered preservation program may elect to extinguish the existing deed restriction prior to the 30th year, regardless of original length, provided that the project enters into a new deed restriction that, in combination with the original deed restriction, totals at least 60 years.
B. 
Deeds of all real property that include restricted rental units must contain deed restriction language that conforms with the requirements of N.J.A.C. 5:80-26.1, which governs the terms of deed restrictions regardless of the language ultimately utilized in the recorded deed restriction document. No terms, whether intentional or unintentional, that circumvent the requirements of N.J.A.C. 5:80-26.1 may be enforced. All deed restrictions must be read in accordance with the requirements of N.J.A.C. 5:80-26.1. Any terms that directly conflict with the requirements of N.J.A.C. 5:80-26.1 are of no legal effect, are contrary to the public policy of the state, and may be stricken only by an application to the Dispute Resolution Program or a county-level housing judge. Deed restrictions are severable, such that invalidation of any provision due to inconsistency with these regulations will not terminate the deed restriction, but, rather, the deed restriction will be read to include the provision of these regulations with which the original language was inconsistent. The deed restriction has priority over all mortgages on the property. The developer or seller shall file the deed restriction with the records office of the County of Bergen. The deed shall also identify each affordable unit by apartment number and/or address 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 Borough's administrative agent within 30 days of the receipt of a certificate of occupancy. Under no circumstances may a developer or seller be excused from any requirements of these regulations because of a failure to record the deed restriction. If a development is sold by a developer prior to recording the deed restrictions, the buyer is not excused from adhering to the requirements of this article and any recourse shall be to recover from the seller rather than seeking to extinguish any affordability controls of the development.
C. 
A restricted rental unit shall remain subject to the affordability controls described in this section 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 or grant of a deed in lieu of foreclosure on the property containing the unit.
(4) 
The release from affordability restrictions at the end of the affordability control period, until occupancy by the first new tenant subsequent to the release of controls.
D. 
Restricted rental units will be released from affordability restrictions at the end of the affordability control period, subject to the limitations in Subsection B above, unless the municipality exercises the right of first refusal to extend the affordability control period for the restricted rental units. To exercise the right of first refusal, the municipality must:
(1) 
No later than 180 days prior to the end of the affordability control period, elect to extend the affordability control period pursuant to a municipal ordinance authorizing such elections;
(2) 
Issue a new deed restriction extending the control period for not less than 30 years or, if the original control period and extended control period, in combination, total at least 60 years, then not less than 20 years;
(3) 
If permitted by the relevant statute, grant or extend an agreement for payment in lieu of taxes pursuant to the New Jersey Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., or pursuant to N.J.S.A. 55:14K-37(b); and
(4) 
To support the preservation, contribute:
(a) 
At least $12,000 per restricted unit from the municipal affordable housing trust fund, if an agreement for payment in lieu of taxes has been granted or extended; or
(b) 
At least $17,500 per restricted unit from the municipal affordable housing trust fund, if no agreement for payment in lieu of taxes has been granted or extended; or
(c) 
Any other assistance not less than the equivalent of $10,000 per restricted unit, if the assistance was approved pursuant to N.J.S.A. 52:27D-329.2(4) as part of the municipality's compliance certification or by DCA, and if the assistance is consistent with the municipality's housing element and fair share plan.
A. 
The administrative agent shall set the initial rent for a restricted rental unit. If the unit is receiving assistance pursuant to the AHTF, the initial rent must be consistent with the AHTF grant agreement. The initial rent must be calculated so as not to exceed 30% of the eligible monthly income of the appropriate household size as determined pursuant to N.J.A.C. 5:80-26.5; provided, however, that the rent is subject to the affordability average requirement at N.J.A.C. 5:80-26.4.
B. 
At the anniversary date of the tenancy of the certified household occupying a restricted rental unit, the rent may be increased to an amount commensurate with the annual percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), specifically U.S. Bureau of Labor Statistics Series CUUR0100SAH, titled "Housing in Northeast urban, all urban consumers, not seasonally adjusted." The maximum allowable rent increase for the year will be effective as of the same date as the regional median income limits determined pursuant to N.J.A.C. 5:80-26.3. This rent increase may not exceed 5% in any one year and notice thereof must be filed with the administrative agent. If the landlord has charged a tenant less than the initial maximum allowable rent for a restricted unit, the landlord may, with the approval of the administrative agent, use the maximum allowable rent instead of the current rent in performing this multiplication to establish the rent for the next tenant under a new lease. LIHTC units are not governed by the provisions of this subsection, but rather by the provisions of the State's Qualified Allocation Plan, N.J.A.C. 5:80-33.1 through 5:80-33.40.
C. 
Approved initial rents are fixed as of the start of the property's initial lease-up. Municipal-Housing-Liaison-adopted increases may not be implemented during lease-up. Each new, separately financed phase of a project may seek MHL approval to use the then-effective initial rents, provided that the lease-up of the phase will occur at least 12 months after the prior phase was placed in service. Rents may not be increased more than once a year or by more than one MHL-approved increment at one time. Rents may not be increased at the time of a new occupancy if the new occupancy occurs within one year of the last occupancy and prior to the next published MHL-approved increase. No additional fees, operating costs, or charges may be added to the approved rent (except in the case of units in assisted living residences, for the customary charges for food and services) without the express written approval of the administrative agent. Operating costs for the purposes of this section include certificate of occupancy fees, move-in fees, move-out fees, and on-site parking or parking deck fees. Any fee structure that would remove or limit affordable renters' access to any amenities or services that are required or included for market-rate renters is prohibited. Application fees (including the charge for any credit check) may not exceed 5% of the monthly rent of the applicable restricted unit and are payable to the administrative agent to be applied to the costs of administering the controls in this article as applicable to the unit. Fees for truly optional, unit-specific, non-communal items that are charged to market-rate tenants on an optional basis, such as pet fees for tenants with pets, storage spaces, bicycle-share programs, or one-time rentals of party or media rooms, may be charged to affordable tenants, if applicable. Pet fees may not exceed $30 per month and associated one-time payments for optional fees pertaining to pets, such as a pet cleaning fee, are prohibited. Fees for other optional, unit-specific, non-communal items may not exceed the amounts charged to market-rate tenants.
D. 
A written lease shall be required for all restricted rental units, except for units in assisted living residences. Final lease agreements are the responsibility of the landlord and the prospective tenant. Tenants are responsible for security deposits and the full amount of the rent as stated on the lease. All lease provisions must comply with applicable law. The landlord shall provide the administrative agent with sufficient information for preparation of a unit inventory form for entry into the centralized affordable housing unit inventory system. A copy of the current lease for each restricted rental unit shall be provided to the Borough's administrative agent, or an administrative agent appointed by a particular developer.
E. 
No rent control ordinance or other pricing restriction shall be applicable to either the market units or the affordable units in any development in which at least 15% of the total number of dwelling units are restricted rental units in compliance with this article.
A. 
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.14, as may be amended and supplemented, and shall be determined as follows:
(1) 
Very-low-income rental units are reserved for households with a gross household income less than or equal to 30% of the regional median household income by household size.
(2) 
Low-income rental units are reserved for households with a gross household income less than or equal to 50% of the regional median household income by household size.
(3) 
Moderate-income rental units are reserved for households with a gross household income less than 80% of the regional median household income by household size.
B. 
The Borough's administrative agent, or a qualified administrative agent appointed by a particular developer, shall certify a household as eligible for a restricted rental unit when the household is a very-low-income household, a 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. 5:80-26.17, 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 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.
C. 
The applicant shall file documentation sufficient to establish the existence of any of the circumstances in Subsection B(1) through (5) above with the Borough's administrative agent, or an administrative agent appointed by a particular developer, who shall counsel the household on budgeting.
A. 
The position of Municipal Housing Liaison (MHL) for the Borough of Leonia pursuant to N.J.A.C. 5:99-6. The Borough shall make the actual appointment of the MHL by means of a resolution.
(1) 
The MHL must be either a full-time or part-time employee of Leonia.
(2) 
The person appointed as the MHL must be reported to the Superior Court and thereafter posted on the Borough's website.
(3) 
The MHL must meet all the requirements for qualifications, including initial and periodic training, if such training is made available by the Division.
(4) 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Leonia, including the following responsibilities which may not be contracted out to the administrative agent, or the administrative agent appointed by a specific developer:
(a) 
Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
(b) 
The implementation of the affirmative marketing plan and affordability controls;
(c) 
When applicable, supervising any contracting administrative agent;
(d) 
Monitoring the status of all restricted units in the Borough's fair share plan;
(e) 
Compiling, verifying and submitting annual reports as required;
(f) 
Coordinating meetings with affordable housing providers and administrative agents, as applicable; and
(g) 
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Affordable Housing Professionals of New Jersey (AHPNJ), if such continuing education opportunities are made available by COAH or the DCA.
B. 
Subject to the approval of the Superior Court, the Borough of Leonia shall designate one or more administrative agent(s) to administer and to affirmatively market the affordable units constructed in the Borough in accordance with UHAC and this section.
An administrative agent may be either an independent entity serving under contract to and reporting to the Borough, or reporting to a specific individual developer. The fees of the administrative agent shall be paid by the owners of the affordable units for which the services of the administrative agent are required. The Borough administrative agent shall monitor and work with any individual administrative agents appointed by individual developers. The administrative agent shall also fulfill the responsibilities identified at N.J.A.C. 5:99-7.2. Pursuant to N.J.A.C. 5:99, the administrative agent shall have the authority to discharge and release any or all instruments, as set forth at the appendices of this article, filed of record to establish affordability controls.
A. 
The Borough of Leonia shall adopt by resolution an affirmative marketing plan that is compliant with N.J.A.C. 5:80-26.16, 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 intended to target those potentially eligible persons who are least likely to apply for affordable units in that region. It is a continuing program that directs marketing activities toward COAH Housing Region 1 and is required to be followed throughout the period of restriction.
C. 
The affirmative marketing plan shall provide a regional preference for all households that live and/or work in COAH Housing Region 1, comprised of Bergen, Hudson, Passaic and Sussex. Subordinate to the regional preference, a preference for very-low-, low-, and moderate-income households that reside or work in New Jersey;
D. 
The Borough has the ultimate responsibility for adopting the affirmative marketing plan and for the proper administration of the Affirmative Marketing Program, including initial sales and rentals and re-sales and re-rentals. The Borough's administrative agent designated by the Borough of Leonia, or any administrative agent appointed by a specific developer, shall implement the affirmative marketing plan to assure the affirmative marketing of all affordable units.
E. 
In implementing the affirmative marketing plan, the Borough's administrative agent, or any administrative agent appointed by a specific developer, 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 plan shall describe the media to be used in advertising and publicizing the availability of housing. In implementing the affirmative marketing plan, the Borough's administrative agent, or any administrative agent appointed by a specific developer, shall consider the use of language translations where appropriate.
G. 
The affirmative marketing process for available affordable units shall begin at least 120 days prior to the expected date of occupancy.
H. 
Applications for affordable housing shall be available in several locations, including, at a minimum, the County Administration Building and/or the County Library for each county within the housing region; and the municipal building in which the units are located; and the developer's rental office. Applications shall be mailed to prospective applicants upon request.
I. 
The costs of advertising and affirmative marketing of the affordable units shall be the responsibility of the developer, sponsor or owner.
A. 
By accepting state funds for affordable housing purposes, or by seeking or receiving a compliance certification, a municipality shall be deemed to have delegated to its administrative agent the day-to-day responsibility for implementing practices and procedures designed to ensure effective compliance with the controls set forth in this article. However, the municipality, through the Municipal Housing Liaison designated and approved pursuant to N.J.A.C. 5:99, shall retain the ultimate responsibility for ensuring effective compliance with this article. Upon the occurrence of a breach of any of the regulations governing an affordable unit by an owner, developer, or tenant, the Borough 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, recoupment 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 Borough 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 Borough 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 Superior 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 $2,000 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 very-low-, low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Borough of Leonia Affordable Housing Trust Fund of the gross amount of rent illegally collected;
(c) 
In the case of an owner who has rented a very-low-, 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 Borough 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 Borough, 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 Borough, 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 Borough 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 Borough 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 Borough 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 Borough 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 Borough 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 Borough. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the Borough, whether such balance shall be paid to the owner or forfeited to the Borough.
(c) 
Foreclosure by the Borough 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 very-low-, 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 Borough may acquire title to the very-low-, 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 very-low, 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.
Failure of the very-low-, low- and moderate-income unit to be either sold at the Sheriff's sale or acquired by the Borough shall obligate the owner to accept an offer to purchase from any qualified purchaser which may be referred to the owner by the Borough, with such offer to purchase being equal to the maximum resale price of the very-low-, low- and moderate-income unit as permitted by the regulations governing affordable housing units.
(e) 
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.
(3) 
The owner of a development containing affordable rental units subject to this article or the assigned management company thereof shall:
(a) 
Send to all current tenants in all restricted rental units an annual mailing containing a notice as to the maximum permitted rent, together with the telephone number, mailing address, and email address of the administrative agent to whom complaints of excess rent can be issued;
(b) 
Promptly provide to the administrative agent, upon the latter of either final municipal land use approval or issuance of a grant contract by a governmental authority, as well as upon receipt of the certificate of occupancy:
[1] 
The total number of units in the project and the number of affordable units, broken down by bedroom count, identifying which are very-low-income, low-income, and moderate-income units, and including street addresses of affordable units;
[2] 
Floor plans of all affordable units, including complete and accurate identification of all rooms and the dimensions thereof;
[3] 
A project map identifying the location of affordable units and market-rate units;
[4] 
A list of project principals or partners, together with a list of all other affordable projects in which they have been involved over the previous five years;
[5] 
A projected construction schedule;
[6] 
Proposed pricing for all units, including any purchaser options and add-on items;
[7] 
A list of all public funding sources and copies of grant or loan agreements for those sources;
[8] 
Condominium or homeowner association fees and any other applicable fees;
[9] 
Estimated real property taxes for for-sale units;
[10] 
Sewer, water, trash disposal, and any other utility assessments;
[11] 
Flood insurance requirement, if applicable;
[12] 
A description of all HVAC systems;
[13] 
The location of any common areas and elevators;
[14] 
A proposed form of lease for any rental units;
[15] 
The name of the person who will be responsible for official contact with the administrative agent for the duration of the project, which must be updated if the contact changes; and
[16] 
The state-approved planned real estate development public offering statement and/or master deed, where applicable.
(4) 
It is the responsibility of the Municipal Housing Liaison and the administrative agent(s) to ensure that affordable housing units are administered properly. All affordable units must be occupied within a reasonable amount of time and be re-leased within a reasonable amount of time upon the vacating of the unit by a tenant. If an administrative agent or Municipal Housing Liaison becomes aware of or suspects that a developer or landlord has not complied with these regulations, it shall report this activity to the Division. If a developer or landlord or property manager has been found to have intentionally violated any terms of these regulations, including by keeping a unit vacant, the developer or property manager shall be fined up to the amount required to construct a comparable affordable unit of the same size and the deed restriction period will be extended for the length of the time the unit was out of compliance, in addition to the remedies provided for in this section. For the purposes of this subsection, a reasonable amount of time shall presumptively be 60 days, unless a longer period of time is required due to demonstrable market conditions and/or failure of the Municipal Housing Liaison or the administrative agent to refer a certified tenant.
A. 
The administrative agent shall secure all information from applicant households necessary and appropriate to determine that restricted units are occupied by properly sized households of low or moderate income. No household may be referred to a restricted unit or receive a commitment with respect to a restricted unit unless that household has received a signed and dated certification and has executed a certificate in the form set forth at Appendix J or K within N.J.A.C. 5:80-26.1 et seq.
B. 
The administrative agent shall prepare a standard form of certification and shall sign and date one such certification for each household when certified. An initial certification is valid for no more than 180 days unless a valid contract for sale or lease has been executed within that time period. In such event, the certification is valid until such time as the contract for sale or lease is ruled invalid and no occupancy has occurred. Certifications may be renewed in writing at the request of a certified household for an additional period of 180 days at the discretion of the administrative agent. The administrative agent must provide applicant households a minimum of 10 business days from the date of initial request for information to produce documentation necessary for certification. The administrative agent shall transmit notice to each applicant household as to whether certification has been granted or denied, including the reason(s) for denying certification, if any, no later than five business days after determining the household's eligibility.
(1) 
When reviewing an applicant household's income to determine eligibility, the administrative agent shall compare the applicant household's annual income to the regional low- and moderate-income limits calculated pursuant to N.J.A.C. 5:80-26.3. For the purposes of this article, the administrative agent shall determine household income in accordance with the procedure for calculating annual income at the time of initial occupancy and assistance, stipulated at 24 CFR 5.609, as it may be updated from time to time, and described in Chapter 5 of HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs, which is available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh/4350.3.
(2) 
Household income is calculated by projecting current gross income over a twelve-month period.
(3) 
The administrative agent shall deny the certificate of eligibility if the applicant household meets income eligibility requirements but possesses net household assets valued at an amount greater than the net asset limit, defined as the estimated median home equity held by New Jersey homeowners as determined annually by the United States Census Bureau's Survey of Income and Program Participation and published by the Census Bureau in "State-Level Wealth, Asset Ownership & Debt of Households Tables" in the "Wealth and Asset Ownership Data Tables" series, available at https://www.census.gov/topics/income-poverty/wealth/data/tables.html. Administrative agents shall determine household net assets in accordance with the procedure for calculating "net family assets" stipulated at 24 CFR 5.603(b), as it may be updated from time to time. The estimated net value of an applicant's primary residence shall be excluded from the calculation of net total assets if any of the following apply:
(a) 
The applicant's existing monthly housing costs (including principal, interest, taxes, homeowner and private mortgage insurance, and condominium or homeowner association fees, as applicable) exceed 38% of the household's eligible monthly income;
(b) 
The applicant is receiving assistance for the residence pursuant to 24 CFR 982.620 or pursuant to the homeownership option at 24 CFR 982;
(c) 
The applicant jointly owns the residence with an owner-occupant who is not part of the applicant household and with whom the applicant does not reside;
(d) 
The residence is a restricted ownership unit subject to the requirements of this article or a unit that, prior to December 20, 2004, received substantive certification from COAH, was part of a judgment of compliance from a court of competent jurisdiction, or became subject to a grant agreement or other contract with either the state or a political subdivision thereof, including any 95/5 unit;
(e) 
Any member of the applicant household is a victim of domestic violence, dating violence, sexual assault, or stalking, as defined at 24 CFR 5.2003; or
(f) 
The applicant demonstrates that the residence is not suitable for occupancy, according to any of the criteria listed at 24 CFR 5.618(a)(2)(i) through (v).
C. 
The administrative agent shall require each member of an applicant household who is 18 years of age or older, except full-time students under the age of 26 and those under the age of 26 participating in a registered apprenticeship program, to provide documentation to verify the member's income, including income received by adults on behalf of minor children for their benefit. Household members 18 years of age or older who do not receive income or who qualify for the full-time student or apprenticeship exemption must produce documentation as to their current status.
D. 
Income verification documentation may include, but is not limited to, the acceptable forms of verification identified at Appendix 3 of HUD Handbook 4350.3 REV-1, available online at https://www.hud.gov/sites/documents/4350a3HSGH.PDF, for each and every member of a household who is 18 years of age or older, except full-time students under the age of 26 and those under the age of 26 in a registered apprenticeship program.
E. 
Court-ordered payments for alimony or child support to another household, whether or not it is being paid regularly, shall be excluded from income for purposes of determining income eligibility.
F. 
The administrative agent may deem ineligible an applicant who is unable to demonstrate sufficient present assets for down payment or security deposit purposes, subject to development phasing that may provide an opportunity for future savings.
G. 
The administrative agent may deem ineligible an applicant who is unable to verify funds claimed as assets, household composition, or other facts represented in the application.
H. 
The administrative agent shall deny a certificate of eligibility to an applicant who makes any willful or material misstatement of fact in seeking eligibility.
I. 
The administrative agent shall screen households that apply for low- and moderate-income housing for preliminary income eligibility by comparing their total gross annual income to the regional low- and moderate-income limits calculated for that year. In lieu of calculating household income, the administrative agent, at their discretion, may accept a household income determination made within the previous 12 months to assess eligibility for the Temporary Assistance for Needy Families (TANF) block grant, Medicaid, the Supplemental Nutrition Assistance Program (SNAP) benefit, the Earned Income Tax Credit (EITC), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Supplemental Security Income, public housing, Section 8, or low-income housing tax credits (LIHTC). Additionally, the administrative agent shall accept household income determinations made within the previous 180 days by another administrative agent or by the Department or the Agency.
J. 
The administrative agent shall accept self-certification from any member of an applicant household claiming to be a victim of domestic violence, dating violence, sexual assault, or stalking for purposes of the exception to the homeownership restriction. In such case, the administrative agent must comply with the confidentiality requirements and restrictions on requesting documentation pursuant to 24 CFR 5.2007.
K. 
The administrative agent shall employ a random selection process when referring households to affordable units. With approval from the Division, supportive housing units may be exempted from the random selection process. The administrative agent may elect to conduct the random selection prior to or after households are certified for eligibility.
(1) 
If conducting the random selection prior to household certification, the administrative agent shall select households from the entire applicant pool, without regard for income, household size, or other distinguishing factors.
(2) 
If conducting the random selection following household certification, the administrative agent shall notify all applicants of their eligibility or ineligibility in advance of the random selection and may conduct either one random selection from the entire applicant pool or separate random selections from each subgroup of the applicant pool. Each eligible household will be assigned to an applicable subgroup(s) as follows:
(a) 
Whether the household is seeking for-sale units, rental units, or both;
(b) 
The number of bedrooms the household qualifies for;
(c) 
The household income level;
(d) 
The unit type applicable to the household (that is, family, age-restricted, or supportive);
(e) 
Whether the household is seeking an accessible unit;
(f) 
For supportive housing applicants only, whether any member of the household belongs to the eligible population; and
(g) 
Any of the occupancy preferences allowed pursuant to Subsection K(3) below.
(3) 
A municipality may elect to adopt any or all of the four occupancy preferences at Subsection K(3)(a), (b), (c) and (d) below. If it does so, the municipality shall adopt its desired occupancy preference(s) prior to the usage of the occupancy preference(s) in any random selection process. All other occupancy preferences, including preferences for residents of the municipality, are prohibited:
(a) 
A preference of up to 50% of the restricted units in a particular project for very-low-, low-, and moderate-income veterans who served in time of war or other emergency, pursuant to N.J.S.A. 52:27D-311(j);
(b) 
A preference for very-low-, low-, and moderate-income households that reside or work in the housing region;
(c) 
Subordinate to the regional preference, a preference for very-low-, low-, and moderate-income households that reside or work in New Jersey; and
(d) 
With respect to existing restricted units undergoing approved rehabilitation for the purpose of preservation or to restricted units newly created to replace existing restricted units undergoing demolition, a preference for the very-low-, low-, and moderate-income households that are displaced by the rehabilitation or demolition and replacement.
L. 
Developers and property management entities shall not discriminate against any person as prohibited by Federal Fair Housing laws or by the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 through 10:5-50. Administrative agents and Municipal Housing Liaisons shall report property managers to the Division, which shall refer such matters to the Office of the Attorney General if they receive any complaints that developers or property managers are discriminating against applicants or residents.
M. 
In certifying and referring households, the administrative agent shall comply with all provisions of the Fair Chance in Housing Act, N.J.S.A. 46:8-52 through 46:8-64.
N. 
Upon being referred to an available unit, an applicant must be provided with a minimum of five business days to accept or reject the administrative agent's offer.
A. 
Each 95/5 unit is subject to an option permitting purchase of the unit at the maximum allowable restricted sale price at the time of the first authorized non-exempt sale after controls on affordability have been in effect on the unit for the period specified at N.J.A.C. 5:80-26.6. The option to buy is available to the municipality in which the unit is located, DCA, the Agency, and approved nonprofit entities.
B. 
The owner of a 95/5 unit shall notify the administrative agent and Municipal Housing Liaison by certified mail and by email of any intent to sell the unit 90 days prior to entering into an agreement for the first authorized non-exempt sale after controls have been in effect on the housing unit for the period specified at N.J.A.C. 5:80-26.6.
C. 
Upon receipt of a notice specified at Subsection B above, the option to buy the unit at the maximum allowable restricted sale price or any mutually agreed upon sale price that does not exceed the maximum allowable restricted sale price will be available for 90 days. The administrative agent shall notify the Municipal Housing Liaison and the Division that the unit is for sale. The municipality shall have the right of first refusal to purchase the unit. If the municipality exercises this option, it may enter into a contract of sale for the unit. If the municipality does not exercise this option within 90 days, the first of the other entities giving notice to the seller of its intent to purchase during the ninety-day period may purchase the unit. If the option to purchase the unit at the maximum allowable restricted sale price is not exercised by one of the above entities by a written offer to purchase the housing unit within 90 days of receipt of notice of the intent to sell, the owner may proceed to sell the housing unit pursuant to N.J.A.C. 5:80-26.25. If the owner does not sell the unit within one year of the date of the delivery of the notice of intent to sell, the option to buy the unit will be restored and the owner will be required to submit a new notice of intent to sell 90 days prior to any future proposed date of sale.
D. 
Any option to buy a housing unit at the maximum allowable restricted sale price must be exercised by certified mail and by email and will be deemed to have been exercised upon transmission of the email.
E. 
Any municipality that elects to purchase a 95/5 unit may:
(1) 
Convey or rent the unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the maximum allowable restricted sale price or rent, provided the unit is controlled by a deed restriction; or
(2) 
Convey the unit at fair market value.
F. 
Municipalities that purchase low-income 95/5 units shall maintain such units as low-income housing units.
G. 
Municipalities that purchase 95/5 units and convey them at a fair market value shall:
(1) 
Notify the Division and the Dispute Resolution Program of any proposed sale and sale price at least 90 days before closing;
(2) 
Notify the Division and the Dispute Resolution Program of the price differential; and
(3) 
Deposit the price differential in an interest-bearing housing trust fund devoted solely to the creation, rehabilitation, or maintenance of low- and moderate-income housing.
H. 
Money deposited in housing trust funds may not be expended until the municipality submits and the Division or the Dispute Resolution Program approves a spending plan in accordance with the applicable rules in effect at the time of the proposed expenditure. Money deposited in housing trust funds is subject to the applicable Division rules in effect at the time of deposit.
I. 
Failure of a unit owner to comply with the notice requirements does not affect the rights and remedies available to the municipality, the Division, or the Agency, nor does the failure of the municipality, the Division, or the Agency to take any affirmative action with respect to such failure of a unit owner operate as a waiver of any such rights and remedies.
J. 
Nonprofit entities may apply to the Municipal Housing Liaison at any time for the right to purchase 95/5 units subsequent to the period of controls on affordability, provided the unit remains controlled by a deed restriction approved as part of the compliance certification.
K. 
Nonprofit entities that have been designated by the Division are eligible to purchase low- or moderate-income units for the sole purpose of conveying or renting the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the allowable restricted sale price or rental amount. Low-income units must be made available to low-income purchasers or tenants and the housing unit must be regulated by the deed restriction and lien approved as part of the compliance certification. The terms of the controls on affordability are the same as those required at N.J.A.C. 5:80-26.6.
L. 
An eligible seller of a 95/5 unit that has been controlled for the period established at N.J.A.C. 5:80-26.6 who has provided the requisite notice of an intent to sell may proceed with the sale if no eligible entity exercises its option to purchase within 90 days.
M. 
Subject to N.J.A.C. 5:80-26.1 et seq., the seller may:
(1) 
Sell to a certified household at a price not to exceed the maximum permitted sale price in accordance with existing rules, provided that the unit is regulated by the deed restriction and lien approved as part of a compliance certification, for a period of at least 30 years; or
(2) 
Exercise the repayment option and sell to any purchaser at market price, provided that 95% of the price differential is paid to the administrative agent, as an instrumentality of the municipality, at closing.
N. 
If the sale will be to a qualified low- or moderate-income household, the administrative agent shall certify the income qualifications of the purchaser and shall ensure that the housing unit is regulated by the deed restriction and lien required as part of a compliance certification.
O. 
The administrative agent shall examine any contract of sale containing a repayment option to determine if the proposed sale price bears a reasonable relationship to the housing unit's fair market value. In making this determination, the administrative agent may rely on comparable sales data or an appraisal. The administrative agent shall not approve any contract of sale where there is a determination that the sale price does not bear a reasonable relationship to fair market value. The administrative agent shall make such a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.
P. 
The administrative agent shall adopt an appeal procedure by which a seller may submit written documentation requesting the administrative agent to recompute the repayment obligation if the seller believes an error has been made, or to reconsider a determination that a sale price does not bear a reasonable relationship to fair market value. A repayment obligation determination made as a result of an owner's appeal is a final determination of the administrative agent appealable pursuant to N.J.A.C. 5:80-26.20.
Q. 
The repayment will occur at the date of closing and transfer of title for the first non-exempt transaction after the expiration of controls on affordability.
R. 
The administrative agent shall deposit all repayment proceeds in a housing trust fund, which funds may be used as specified at N.J.S.A. 52:27D-329.2. Money deposited in housing trust funds may not be expended until the municipality submits and the Division or the Dispute Resolution Program approves a spending plan. See N.J.S.A. 52:27D-329.2.
S. 
A municipality has the right to determine that the most desirable means of promoting an adequate supply of low- and moderate-income housing is to prohibit the exercise of the repayment option and maintain controls on lower-income housing units sold within the municipality beyond the period required at N.J.A.C. 5:80-26.6. Such determination must be made by resolution of the municipal governing body and will be effective upon filing with the Dispute Resolution Program. The resolution must specify the time period for which the repayment option is not applicable. During such period, no seller in the municipality may utilize the repayment option permitted at N.J.A.C. 5:80-26.25. Municipalities that exercise this option above shall:
(1) 
Provide public notice in a newspaper of general circulation;
(2) 
Notify the administrative agent and the Division of its governing body's action;
(3) 
Extend the control period not less than 30 years or, if the original control period and extended control period, in combination, total at least 60 years, not less than 20 years; and
(4) 
Take at least one of the following actions:
(a) 
Purchase the affordable units; or
(b) 
Contribute at least $10,000 per unit from the municipal Affordable Housing Trust Fund to support the preservation of the units.
T. 
The administrative agent shall ensure that the deed restriction on all affected housing units reflects the extended period of controls.
U. 
The deed restriction governing 95/5 housing units must allow municipalities, DCA, the Agency, nonprofit entities, and sellers of low- and moderate-income units to again exercise all the same options as provided in this article when a housing unit has been maintained as a low- or moderate-income unit after affordability controls have been in effect for the period specified at N.J.A.C. 5:80-26.6.
Appeals from all decisions of an administrative agent appointed pursuant to this article must be filed in writing with the Municipal Housing Liaison for the jurisdiction. A decision by the Municipal Housing Liaison may be appealed to the Division. A written decision of the Division Director upholding, modifying, or reversing an administrative agent's decision is a final administrative action.