[Added 10-9-2003 by Ord. No. 2003-19]
In furtherance of the intent of this article,
all terms used herein shall have the definition and meaning as set
forth in the COAH Regulations and all provisions herein shall be interpreted
in a manner consistent with the COAH Regulations, including future
amendments thereto.
A.
Purpose. This section sets forth the requirements
applicable to low- and moderate-income housing units where required
to be provided as part of any development of Lots 9, 10 and 10.01
in Block 2.01 as the same appears on the current Tax Assessment Map
of the Township of South Hackensack. These provisions are intended
to implement and be consistent with the COAH Regulations contained
in N.J.A.C. 5:93-7.1 et seq., and any subsequent amendments thereto.
B.
C.
Bedroom distribution.
(1)
Inclusionary developments that are not restricted
to senior citizens shall be structured in conjunction with realistic
market demands so that:
(a)
The combination of efficiency or studio and
one-bedroom units is at least 10% and not greater than 20% of the
total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income
units are two-bedroom units; and
(c)
At least 20% of all low- and moderate-income
units are three bedroom units.
(2)
Low- and moderate-income units restricted to senior
citizens may utilize a modified bedroom distribution. At a minimum,
the number of bedrooms shall equal the number of senior citizen low-
and moderate-income units within the inclusionary development. The
standard can be met by creating all one-bedroom units or by creating
a two-bedroom unit for each efficiency or studio unit.
D.
Establishing rents and prices of units.
(1)
The initial sales price of a low- and moderate-income
owner-occupied housing unit shall be established so that, after a
down payment of 5%, the monthly principal, interest, property taxes,
insurance and condominium or homeowners’ association fees, if
any, do not exceed 28% of eligible gross monthly income for the appropriate
household size as set forth in a schedule adopted by COAH.
(2)
For rental units, the rents, including utilities,
are to be set so as not to exceed 30% of the of the eligible gross
monthly income for the appropriate household size as set forth in
a schedule adopted by COAH. The allowance for utilities shall be consistent
with the utility allowance approved by the United States Department
of Housing and Urban Development for use in New Jersey.
(3)
The following criteria shall be considered in determining
maximum rent levels and sales prices:
(5)
Median income by household size shall be determined
as established by COAH based on a regional weighted average of the
uncapped Section 8 income limits published by the United States Department
of Housing and Urban Development or other recognized standard that
applies to the housing unit.
(6)
The maximum rents of low- and moderate-income units
shall be affordable to households earning no more than 60% of median
income. The maximum average rent of low- and moderate-income units
shall be affordable to households earning 52.0% of median income.
In determining this average, one rent may be used for a low-income
unit and one rent may be used for a moderate-income unit for each
bedroom distribution.
(7)
The maximum sales prices of low- and moderate-income
units shall be affordable to households earning no more than 70% of
median income. The maximum average rent of low- and moderate-income
units shall be affordable to households earning 55.0% of median income.
In determining this average, low-income units must be available for
at least two different sales prices and moderate-income units must
be available for at least three different sales prices.
(8)
In an inclusionary development, the low- and moderate-income
units shall utilize the same heating type or source as the market
units.
(9)
If an inclusionary development involves a condominium
or homeowners association, the master deed shall provide no distinction
between the condominium or homeowners’ association fees or special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
(10)
Rent levels and sales prices may be adjusted
periodically based upon adoption by COAH of revised income limits.
E.
Phasing low- and moderate-income units. In accordance
with N.J.A.C. 5:93-5.6(d), low- and moderate-income housing units
within inclusionary developments shall be built in accordance with
the following schedule:
|
Minimum Percentage of Low and Moderate
Income
(units completed)
|
Maximum Percentage of Market
(housing units completed)
| |
|---|---|---|
|
0%
|
25%
| |
|
10%
|
25% + 1 unit
| |
|
50%
|
50%
| |
|
75%
|
75%
| |
|
100%
|
90%
|
A.
Purpose. This section is intended to implement the
provision of Subchapter 9 of the COAH Regulations, N.J.A.C. 5:93-9.17
and N.J.A.C. 5:80-26, which establish regulations designed to provide
assurance that low- and moderate-income housing units will remain
affordable over time.
B.
Administrative authority. Responsibility for administration
and enforcement of this section shall be vested with Madeline Corporation
which shall serve as “administrative agent” of the Township,
as that term is defined in N.J.A.C. 5:80-26.2. The Madeline Corporation
shall have responsibility of ensuring the affordability of sales and
rental units, including: affirmative marketing; income qualification
of low- and moderate-income households; placing income eligible households
in low- and moderate-income units upon initial occupancy; placing
income eligible households in low- and moderate-income units as they
become available during the period of affordability controls; and
enforcing the terms of deed restriction and mortgage loan and any
other responsibilities of the administrative agent as specified in
N.J.A.C. 5:80-26.14 (a). The sponsor, developer or owners shall be
responsible for the administrative fee.
C.
Length of affordability controls. All low- and moderate-income
units shall be subject to affordability controls for a period of not
less than 30 years consistent with N.J.A.C. 5:93-9.17 and N.J.A.C.
5:80-26.
D.
Form of affordability controls.
(1)
All conveyances of newly constructed low- and moderate-income
sales units shall be subject to a deed restriction and mortgage lien
in a form consistent with N.J.A.C. 5:80-26.5(c) of the Uniform Housing
Affordability Controls.
(2)
All low- and moderate-income rental units shall be
subject to appropriate deed restrictions consistent with N.J.A.C.
5:80-26.11(d) of the Uniform Housing Affordability Controls.
(3)
The developer shall be responsible for compliance
with deed restrictions and shall submit same to the Township of South
Hackensack for review and approval.
A.
Purpose. This section is intended to implement and
be consistent with Subchapter 11 of the COAH Regulations, N.J.A.C.
5:93-11. It applies to all new developments in South Hackensack that
contain proposed low- and moderate-income housing units, including
those listed below, and any future developments that may occur.
B.
Administration. The Madeline Corporation shall have
the responsibility of administering the affirmative marketing plan
as the “administrative agent.” The Township shall act
as the liaison to the Madeline Corporation. The Madeline Corporation,
also the “administrative agent,” will income qualify low-
and moderate-income households; place income eligible households in
low- and moderate-income households; place income eligible households
in low- and moderate-income units upon initial occupancy; continue
to qualify households for reoccupancy of units as they become vacant
during the period of affordability controls; assist with the advertising
and outreach to low- and moderate-income households; and enforce the
terms of the deed restriction and mortgage loan in accordance with
N.J.A.C. 5:93-9. The Bergen County Department of Community Development
will provide housing counselling services to low- and moderate-income
applicants on subjects such as budgeting, credit, mortgage qualification,
responsibilities of home ownership, rental lease requirements and
landlord-tenant law.
C.
Affirmative marketing plan. The developer shall be
required to prepare an affirmative marketing plan for the development
with low- and moderate-income units. The affirmative marketing plan
is a regional marketing strategy designed to attract buyers and or
renters, or all majority and minority groups, regardless of sex, age
or number of children, to housing units which are being marketed by
a developer/sponsor, municipality and/or designated administrative
agency of affordable housing. The affirmative marketing plan will
address the requirements of N.J.A.C. 5:93-11. In addition, the affirmative
marketing plan prohibits discrimination in the sale, rental, financing
or other services related to housing on the basis of race, color,
sex, religion, handicap, familial status/size or national origin.
The Township is in the COAH-established housing region consisting
of Bergen, Hudson, Passaic and Sussex Counties. The affirmative marketing
plan is a continuing program and will meet the following requirements.
(1)
All newspaper articles, announcements, advertisements
and requests for applications for low- and moderate-income units will
be submitted to the following newspapers: The Record, Hudson Dispatch,
Star-Ledger and Herald News.
(2)
The primary marketing will take the form of at least
one press release sent to the above newspapers and a paid advertisement
in each of the above newspapers. Additional advertising and publicity
will be done on an as-needed basis if necessary to identify a sufficient
pool of income eligible households.
(3)
Advertisements in newspapers will include at lease
the following information:
(a)
Name of housing development.
(b)
Name of sponsor/developer of the housing.
(c)
Street address and the housing.
(d)
Direction to the housing units.
(e)
Range of affordable selling prices/rents.
(f)
Size of bedroom type of units.
(g)
Applicable household income limits for the unit
types offered.
(h)
Location where applications for the units may
be requested and submitted, including business address, telephone
number, fax number, email address (if available) and Web site (if
available).
(4)
All newspapers articles, announcements, advertisements
and requests for applications for low- and moderate-income units will
be submitted to community-oriented weekly newspapers and appropriate
religious publications.
(5)
Applications, brochures, flyers and posters used as
part of the affirmative marketing program shall be distributed within
the region in several convenient locations, including, at minimum,
the municipal administration building, the municipal library, the
developer’s sales/rental office, senior center and local places
of worship, and the following offices in the housing region: municipal
clerks, housing authorities, offices on aging, county libraries, rental
assistance office, county welfare or social services board or agency
and community action agencies in the housing region.
(6)
Applications shall be mailed to prospective applicants
upon request.
(7)
Community organizations will be forwarded information
on the availability of units to aid in the affirmative marketing program,
with special emphasis on reaching out to households that are least
likely to apply for affordable housing within South Hackensack’s
housing region.
(8)
A random computer selection method, specifically a
lottery after an established publicly announced application deadline,
will be used to randomly select occupants.
(9)
The cost of advertising the availability of low- and
moderate-income units is the sponsor’s or developer’s
responsibility.
(10)
Households who live or work in the COAH-established
housing region (Bergen, Hudson, Passaic and Sussex Counties) may be
given preference for sales and rental units constructed within South
Hackensack. Applicants living outside the housing region will have
an equal opportunity for units after regional applicants have been
initially serviced. South Hackensack intends to comply with N.J.A.C.
5:93-11.17 on residency preferences.
(11)
Sponsors and developers of low- and moderate-income
housing may assist in the marketing of the affordable units.
(12)
The marketing process for available low- and
moderate-income units shall begin at least 120 days before the issuance
of either temporary or permanent certificates of occupancy. The marketing
program will continue until all low- and moderate-income housing units
are initially occupied and for as long as affordable units are deed
restricted and occupancy or reoccupancy of units continues to be necessary.
(13)
The Township and its administrative agent will
comply with the monitoring and reporting requirements of N.J.A.C.
5:93-11.6 and 5:93-12.1.
D.
Marketing for initial sales and rental. Marketing
for initial sales and/ or rents of low- and moderate-income units
shall be in accordance with N.J.A.C. 5:93-11.4 and N.J.A.C. 5:80-26.15,
which establish the procedures to be followed in screening applicants
and verifying incomes.
E.
Continuing marketing. Marketing activities to ensure
a pool of income-eligible applications shall continue following completion
of initial occupancy. Such activities shall be in accordance with
the provisions of N.J.A.C. 5:93-11.5.
[Added 12-9-2004 by Ord. No. 2004-24]
A.
Purpose. In Holmdel Builder's Association v. Holmdel
Township, 121 N.J. 550 (1990), the New Jersey Supreme Court determined
that mandatory development fees are authorized by the Fair Housing
Act of 1985, N.J.S.A. 52:270-301 et seq. and the State Constitution,
subject to the imposition of rules by COAH. The purpose of this section
is to establish standards for the collection, maintenance and expenditure
of development fees pursuant to COAH's adopted rules. Fees collected
pursuant to this section shall be used for the sole purpose of providing
low and moderate-income housing. This section shall be interpreted
within the framework of COAH's rules on development fees.
B.
Nonresidential development fees. Within a nonresidential
development zone, developers shall pay a fee of 2% of the equalized
assessed value of any eligible nonresidential activity.
[Amended 7-14-2005 by Ord. No. 2005-06]
C.
Eligible exaction, ineligible exaction and exemptions.
(1)
Developers of low- and moderate-income units shall
be exempt from paying development fees.
(2)
Developers of new nonresidential structures, except
as excluded herein, shall pay a development fee in the manner prescribed
herein.
(3)
Developers that expand an existing nonresidential
structure shall pay a development fee. The development fee shall be
calculated based on the increase in the equalized assessed value of
the improved structure.
(4)
Developers that have received preliminary or final
approval prior to the effective date of this section shall be exempt
from paying a development fee unless the developer seeks a substantial
change in the approval. Examples of a substantial change include a
substantial alteration in site layout or development intensity.
(5)
Developers of any church, library, school, college,
governmental facility, hospital for humans or nursing home shall be
exempt from paying a development fee.
D.
Collection of fees.
(1)
Developers shall pay 50% of the calculated development
fee to the Township of South Hackensack at the issuance of building
permits. The development fee shall be estimated by the Tax Assessor
prior to the issuance of building permits.
(2)
Developers shall pay the remaining fee to the Township
of South Hackensack at the issuance of certificates of occupancy.
At the issuance of certificates of occupancy, the Tax Assessor shall
calculate the equalized assessed value and the appropriate development
fee. The developer shall be responsible for paying the difference
between the fee calculated at the certificate of occupancy and the
amount paid at building permit.
E.
Housing trust fund.
(1)
There is hereby created an interest-bearing housing
trust fund with Interchange State Bank for the purposes of receiving
development fees from residential and nonresidential developers, which
fund shall be maintained by the Chief Financial Officer who shall
be responsible for the administration of the housing trust fund and
the authorization for any expenditures. All development fees paid
by developers pursuant to this section shall be deposited in this
fund. No money shall be expended from the housing trust fund unless
the expenditure conforms to a spending plan approved by the Superior
Court of COAH.
[Amended 7-13-2006 by Ord. No. 2006-14]
(2)
If the Superior Court or COAH determines that the
Township of South Hackensack is not in conformance with COAH's rules
on development fees, the Superior Court or COAH is authorized to direct
the manner in which all development fees collected pursuant to this
section shall be expended. Such authorization is pursuant to this
section; COAH's rules on development fees and the written authorization
from the governing body to the financial institution that is the depository
for the Township housing trust fund. The Township shall execute an
escrow agreement with COAH and the financial institution where the
housing trust fund is maintained to enable COAH to monitor disbursement
of collected development fees and direct the expenditure of development
fees, after proper notice, hearing and Court or COAH approval, if
the imposition, collection and/or expenditure of fees does not conform
with the Development Fee Ordinance, COAH rules or the Court or COAH
approved spending plan.
F.
Use of funds.
(1)
Money deposited in a housing trust fund may be used
for any activity approved by COAH for addressing the Township of South
Hackensack's low- and moderate-income housing obligation. Such activities
may include, but are not necessarily limited to, housing rehabilitation,
new construction, regional contribution agreements, the purchase of
land for low- and moderate-income housing sites, assistance designed
to render units to be more affordable to low- and moderate-income
people, and administrative costs necessary to implement the Township
of South Hackensack's housing element. The expenditure of all money
shall conform to a spending plan approved by COAH.
(2)
At least 30% of the revenues collected shall be devoted
to render units more affordable. Examples of such activities include,
but are not limited to, down payment assistance, low-interest loans
and rental assistance.
(3)
No more than 20% of the revenues collected from development
fees shall be expended on administration, including, but not limited
to, salaries and benefits for municipal employees or consultant fees
necessary to develop or implement a rehabilitation program, a new
construction program, a regional contribution agreement, a housing
element and an affirmative marketing program. Administrative funds
may be used for income qualification of households, monitoring the
turnover of sale and rental units and compliance with COAH monitoring
requirements. Development fees shall not be used to defray the costs
of existing staff.
G.
Monitoring. The Township shall complete and return
to COAH all monitoring forms related to the collection of development
fees, expenditures of revenues and implementation of the spending
plan certified by COAH. Quarterly financial reports and annual program
implementation and auditing reports shall be completed by the Township
on forms designed by COAH.
H.
Penalties.
(1)
In the event that any of the conditions set forth in Subsection H(2) below occur, COAH shall be authorized, on behalf of the Township, to direct the manner in which all development fees collected pursuant to this section shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of COAH upon the Township Clerk's receipt of written notification from COAH that such a condition has occurred. In furtherance of the foregoing, the Township shall, in establishing a bank account pursuant to Subsection F of this section, ensure that the Township has provided whatever express written authorization which may be required by the bank to permit COAH to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Township Clerk.
(2)
Occurrence of the following may result in COAH taking an action pursuant to Subsection H(1) above: failure to submit a spending plan within the time limits imposed by COAH; failure to meet deadlines for information required by COAH in its review of this section, the Township's housing element or spending plan; failure to address COAH's conditions for approval of a plan to spend development fees within the deadlines imposed by COAH; failure to address COAH's condition for substantive certification within the deadlines imposed by COAH; failure to submit accurate monitoring reports within the time limits imposed by COAH; failure to implement the spending plan for development fees within the time limits imposed by COAH, or within reasonable extensions granted by COAH; expenditure of development fees an activities not permitted by COAH; revocation of the Township's judgment of repose or substantive certification; or other good cause demonstrating that the revenues are not being used for the intended purpose.
