[Added 1-20-2004 by Ord. No. 1-2004;
amended 9-7-2004 by Ord. No. 14-2004; 2-2-2009 by Ord. No.
2-2009; 12-6-2016 by Ord. No. 30-2016]
This article of the Byram Township Code sets forth regulations
regarding very-low-, low-, and moderate-income housing units in Byram
Township that are consistent with the provisions of N.J.A.C. 5:93-1
et seq., as effective on June 6, 1994. These rules are pursuant to
the Fair Housing Act of 1985 and Byram Township's constitutional obligation
to provide for its fair share of very-low-, low-, and moderate-income
housing.
A.
Purpose. The purpose of this section is to create the administrative
mechanisms needed for the execution of Byram Township's responsibility
to assist in the provision of affordable housing pursuant to the Fair
Housing Act of 1985.
B.
ADMINISTRATIVE AGENT
MUNICIPAL HOUSING LIAISON
Definitions. As used in this section, the following terms shall have
the meanings indicated:
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
Byram Township to ensure that the restricted units under administration
are affirmatively marketed and sold or rented, as applicable, only
to very low-, low-, and moderate-income households.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Byram Township.
C.
Establishment of position; compensation; powers and duties.
(1)
Establishment of position of Municipal Housing Liaison. There
is hereby established the position of Municipal Housing Liaison for
Byram Township.
(2)
Subject to the approval of the Council on Affordable Housing
(COAH), the Municipal Housing Liaison shall be appointed by the governing
body and may be a full- or part-time municipal employee.
(3)
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Byram Township, including the following responsibilities which may not be contracted out, exclusive of Subsection C(3)(f), which may be contracted out:
(a)
Serving as Byram Township's primary point of contact for all
inquiries from the state, affordable housing providers, administrative
agents, and interested households.
(b)
Monitoring the status of all restricted units in Byram Township's
Fair Share Plan.
(c)
Compiling, verifying, and submitting annual reports as required
by COAH.
(d)
Coordinating meetings with affordable housing providers and
administrative agents, as applicable.
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH.
(4)
Subject to approval by COAH, Byram Township may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing program of Byram Township, except for those responsibilities which may not be contracted out pursuant to Subsection C(3) above. If Byram Township contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.
(5)
Compensation. Compensation shall be fixed by the governing body
at the time of the appointment of the Municipal Housing Liaison.
(6)
Administrative powers and duties assigned to the Municipal Housing
Liaison. The following tasks are delegated specifically to an approved
administrative agent as part of a contract and will therefore be the
responsibility of the administrative agent:
(a)
Affirmative marketing.
[1]
Conducting an outreach process to ensure affirmative
marketing of affordable housing units in accordance with the Affirmative
Marketing Plan of Byram Township and the provisions of N.J.A.C. 5:80-26.15;
and
[2]
Providing counseling or contracting to provide
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.
(b)
Household certification.
[1]
Soliciting, scheduling, conducting and following
up on interviews with interested households;
[2]
Conducting interviews and obtaining sufficient
documentation of gross income and assets upon which to base a determination
of income eligibility for a very low-, low-, or moderate-income unit;
[3]
Providing written notification to each applicant
as to the determination of eligibility or noneligibility;
[4]
Requiring that all certified applicants for restricted
units execute a certificate substantially in the form, as applicable,
of either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
[5]
Creating and maintaining a referral list of eligible
applicant households living in the housing region and eligible applicant
households with members working in the housing region where the units
are located; and
[6]
Employing the random selection process as provided
in the Affirmative Marketing Plan of Byram Township when referring
households for certification to affordable units.
(c)
Affordability controls.
[1]
Furnishing to attorneys or closing agents forms
of deed restrictions and mortgages for recording at the time of conveyance
of title of each restricted unit;
[2]
Creating and maintaining a file on each restricted
unit for its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
[3]
Ensuring that the removal of the deed restrictions
and cancellation of the mortgage note are effectuated and properly
filed with the appropriate county's register of deeds or county clerk's
office after the termination of the affordability controls for each
restricted unit;
[4]
Communicating with lenders regarding foreclosures;
and
[5]
Ensuring the issuance of continuing certificates
of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(d)
Resale and rental.
[1]
Instituting and maintaining an effective means
of communicating information between owners and the administrative
agent regarding the availability of restricted units for resale or
rental; and
[2]
Instituting and maintaining an effective means
of communicating information to very low-, low-, and moderate-income
households regarding the availability of restricted units for resale
or rerental.
(e)
Processing request from unit owners.
[1]
Reviewing and approving requests from owners of
restricted units who wish to take out home equity loans or refinance
during the term of their ownership;
[2]
Reviewing and approving requests to increase sales
prices from owners of restricted units who wish to make capital improvements
to the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the cost of central air-conditioning systems; and
[3]
Processing requests and making determinations on
requests by owners of restricted units for hardship waivers.
(f)
Enforcement.
[1]
Securing annually lists of all affordable housing
units for which tax bills are mailed to absentee owners and notifying
all such owners that they must either move back to their unit or sell
it;
[2]
Securing from all developers and sponsors of restricted
units, at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
administrative agent;
[3]
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made;
[4]
Sending annual mailings to all owners of affordable
dwelling units, reminding them of the notices and requirements outlined
in N.J.A.C. 5:80-26.18(d)4;
[5]
Establishing a program for diverting unlawful rent
payments to the municipality's Affordable Housing Trust Fund or another
appropriate municipal fund approved by the DCA;
[6]
Creating and publishing a written operating manual,
as approved by COAH, setting forth procedures for administering such
affordability controls; and
[7]
Providing annual reports to COAH as required.
(g)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
A.
All residential inclusionary developments in the VC Village Center
District shall be required to set aside a mandatory 20% of the dwelling
units for the construction of very low-, low-, and moderate-income
housing in accordance with the provisions of this article.
B.
The developer shall provide that half of the very low-, low-, and
moderate-income units constructed be affordable by very-low- and low-income
households and that the remaining half be affordable by moderate-income
households.
C.
Subdivision and site plan approval shall be denied by the Board unless
the developer complies with the requirements to provide very low-,
low-, and moderate-income housing pursuant to the provisions of this
article. The Board may impose any reasonable conditions to ensure
such compliance.
A.
Byram Township's new construction or inclusionary component will
be divided equally between very-low-, low-, and moderate-income households
as per N.J.A.C. 5:93-2.20 and this article. At least 13% of the total
affordable units shall be affordable to very-low-income households
B.
Except for inclusionary developments constructed pursuant to low-income
tax credit regulations:
(1)
At least 1/2 of all units within each inclusionary development will
be affordable to very-low- and low-income households.
(2)
At least 1/2 of all rental units will be affordable to very-low-
and low-income households; and
(3)
At least 1/3 of all units in each bedroom distribution pursuant to
N.J.A.C. 5:93-7.3 will be affordable to very-low- and low-income households.
Inclusionary developments that are not restricted to senior
citizens will be structured in conjunction with realistic market demands
so that:
A.
The combination of efficiency and one-bedroom units is at least 10%
and no greater than 20% of the total very low-, low-, and moderate-income
units;
B.
At least 30% of all very low-, low-, and moderate-income units are
two-bedroom units;
C.
At least 20% of all very low-, low-, and moderate-income units are
three-bedroom units; and
D.
Very low-, low-, and moderate-income units restricted to senior citizens
may utilize a modified bedroom distribution. At a minimum, the number
of bedrooms will equal the number of senior citizen very low-, low-,
and moderate-income units within the inclusionary development.
A.
In conjunction with realistic market information, the following criteria
will be used in determining maximum rents and sale prices:
(1)
Efficiency units will be affordable to one-person households;
(2)
One-bedroom units will be affordable to 1.5-person households;
(3)
Two-bedroom units will be affordable to three-person households;
(4)
Three-bedroom units will be affordable to 4.5-person households;
(5)
Median income by household size will be established by a regional
weighted average of the uncapped Section 8 income limits published
by HUD as per N.J.A.C. 5:93-7.4(b);
(6)
The maximum sales price of very low-, low-, and moderate-income units
within each inclusionary development will be affordable to households
earning no more than 70% of median income. In averaging an affordability
range of 55% for sales units, moderate-income sales units must be
available for at least two different prices, and very-low-, low-income
sales units must be available for at least two different prices;
(7)
For both owner-occupied and rental units, the very low-, low-, and
moderate-income units will utilize the same heating source as market
units within an inclusionary development;
(8)
Very-low-income units will be reserved for households with a gross
household income less than or equal to 30% of the median income approved
by COAH; low-income units will be reserved for households with a gross
household income less than or equal to 50% of the median income approved
by COAH; moderate-income units will be reserved for households with
a gross household income less than 80% of the median income approved
by COAH as per N.J.A.C. 5:93-7.4(g) and this article;
(9)
The regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16, NJMFA,
U.H.A.C., and this article will be applicable for purchased and rental
units.
B.
For rental units, developers and/or municipal sponsors may:
(1)
Establish one rent for a very-low-, low-income unit and one for a
moderate-income unit for each bedroom distribution;
(2)
Gross rents, including an allowance for tenant-paid utilities, will
be established so as not to exceed 30% of the gross monthly income
of the appropriate household sale as per N.J.A.C. 5:93-7.4(f). The
tenant-paid utility allowance will be consistent with the utility
allowance approved by HUD for use in New Jersey; and
(3)
The maximum rents of very low-, low-, and moderate-income units within
each inclusionary development will be affordable to households earning
no more than 60% of median income. In averaging an affordability range
of 52% for rental units, developers and/or municipal sponsors of rental
units may establish one rent for a very-low-, low-income unit and
one rent for a moderate-income unit for each bedroom distribution.
C.
For-sale units:
(1)
The initial price of a very low-, low-, or moderate-income owner-occupied
single-family housing unit will be established so that after a downpayment
of 5%, the monthly principal, interest, homeowner and private mortgage
insurances, property taxes (based on the restricted value of the very
low-, low-, and moderate-income unit) and condominium or homeowner
fee do not exceed 28% of the eligible gross monthly income.
(2)
Master deeds of inclusionary developments will regulate condominium
or homeowners' association fees or special assessments of very low-,
low-, and moderate-income purchasers at 100% of those paid by market
purchasers. This percentage is consistent with the requirement of
N.J.A.C. 5:93-7.4(e). Once established within the master deed, this
percentage will not be amended without prior approval from COAH.
(3)
Byram Township will follow the general provisions concerning uniform
deed restriction liens and enforcement through certificates of occupancy
or reoccupancy on sale units as per N.J.A.C. 5:93-9.3 and applicable
COAH rules, UHAC rules, and this article.
(4)
Byram Township will require a certificate of reoccupancy for any
occupancy of a very low-, low-, or moderate-income sales unit resulting
from a resale as per N.J.A.C. 5:93-9.3(c).
(5)
Municipal, state, nonprofit and seller options regarding sale units
will be consistent with N.J.A.C. 5:93-9.5 through 5:93-9.8, UHAC rules,
and this article. Municipal rejection of repayment options for sale
units will be consistent with N.J.A.C. 5:93-9.9.
(6)
The continued application of options to create, rehabilitate or maintain
very low-, low-, and moderate-income sale units will be consistent
with N.J.A.C. 5:93-9.10.
(7)
Eligible capital improvements prior to the expiration of controls
on sale units will be consistent with N.J.A.C. 5:93-9.11, UHAC rules,
and this article.
(8)
The regulations detailed in N.J.A.C. 5:93-9.12 through 5:93-9.14
will be applicable to very low-, low-, and moderate-income units that
are for-sale units.
(9)
The regulations detailed in N.J.A.C. 5:93-9.12 through 5:93-9.14
will be applicable to very low-, low-, and moderate income units that
are for-sale units as revised to require 13% of all affordable units
to be affordable to very-low- and low-income households.
A.
In zoning for inclusionary developments the following is required:
Very low-, low-, and moderate-income units will be built in accordance
with N.J.A.C. 5:93-5.6(d).
|
Minimum Percentage of Very Low-, Low-, and Moderate-Income
Units Completed
|
Percentage of Market Housing Units Completed
| |
|---|---|---|
|
25
|
0
| |
|
25 + 1
|
10
| |
|
50
|
50
| |
|
75
|
75
| |
|
90
|
100
|
B.
A design of inclusionary developments that integrates very low-,
low-, and moderate-income units with market units is encouraged as
per N.J.A.C. 5:93-5.6(f).
A.
To provide assurances that very low-, low-, and moderate-income units
are created with controls on affordability over time and that very
low-, low-, and moderate-income households occupy these units, Byram
Township has designated the New Jersey Housing Affordability Service
(HAS), formally known as the "Affordable Housing Management Service
(AHMS)," with the responsibility of ensuring the affordability of
sales and rental units over time. The Housing Affordability Service
will be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
The developers of inclusionary sites shall be responsible for the
HAS fee.
B.
In addition, the Housing Affordability Service will be responsible
for utilizing the verification and certification procedures outlined
in N.J.A.C. 5:93-9.1(b) in placing households in very low-, low-,
and moderate-income units.
C.
Newly constructed very low-, low-, and moderate-income sales units
will remain affordable to very low-, low-, and moderate-income households
for at least 30 years.
D.
The Housing Affordability Service will require all conveyances of
newly constructed units to contain the deed restriction and mortgage
lien adopted by COAH and referred to as Technical Appendix E, as found
in N.J.A.C. 5:93.
E.
Housing units created through the conversion of a nonresidential
structure will be considered a new housing unit and will be subject
to thirty-year controls on affordability. The Housing Affordability
Service will require COAH's appropriate deed restriction and mortgage
lien.
A.
Rehabilitated owner-occupied single-family housing units that are
improved to code standard will be subject to affordability controls
for at least six years; and
B.
Rehabilitated renter-occupied housing units that are improved to
code standard will be subject to affordability controls for at least
10 years.
A.
Newly constructed very low-, low-, and moderate-income rental units
will remain affordable to very low-, low-, and moderate-income households
for at least 30 years. The Housing Affordability Service will require
the deed restriction and lien and deed of easement referred to as
Technical Appendix H, as found in N.J.A.C. 5:93.
B.
Affordability controls in accessory apartments will be for a period
of at least 10 years; except if the apartment is to receive a rental
bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on
affordability will extend for 30 years (N.J.A.C. 5:93-5.9).
C.
Alternative living arrangements will be controlled in a manner suitable
to COAH that provides assurances that such a facility will house very
low-, low-, and moderate-income households for at least 10 years;
except if the alternative living arrangement is to receive a rental
bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on
affordability will extend for 30 years (N.J.A.C. 5:93-5.9). Group
homes for the developmentally disabled that have received capital
funding from the New Jersey Division of Developmental Disabilities,
and where the terms of such grant are for 20 years and renewable at
the end of the initial term, shall be determined to have acceptable
affordability controls in accordance with COAH's requirements and
are eligible for rental bonus credits pursuant to COAH's regulations.
Section 14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301 et
seq., incorporates the need to eliminate unnecessary cost-generating
features from Byram Township's land use ordinances. Accordingly, Byram
Township will eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal
approvals/denials on inclusionary development applications. Byram
Township will adhere to the components of N.J.A.C. 5:93-10.1 through
5:93-10.3.
As adjusted pursuant to Settlement Agreement with the Fair Share
Housing Center dated September 7, 2016, Byram's rehabilitation share
is 13 units and Prior Round obligation is 33 units. Per the Kinsey
Report as revised July 2016 and as adjusted pursuant to the Settlement
Agreement dated September 7, 2016, Byram Township has a Third Round
Prospective Need of 182 units. Byram Township has a realistic development
potential ("RDP") in the Highlands Council Planning Area ("the Planning
Area") of one affordable housing unit. This article will apply to
all developments constructed in Byram Township that contain very low-,
low-, and moderate-income units and any future inclusionary developments
that may occur in the Township's Village Center District.
