[Adopted 12-17-1986 by Ord. No. 1747]
WHEREAS, a housing study has demonstrated that a significant portion
of existing multifamily housing in the Town of West New York is substandard
and in need of improvement;
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WHEREAS, it is beneficial for the Town of West New York to encourage
and promote improvement of existing substandard multifamily housing so that
the same will result in affordable housing for low- and moderate-income residents;
and
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WHEREAS, it is in the best interest of the public health and welfare
of the citizens of the Town of West New York that any improvement on or replacement
of any existing multifamily housing in the Town of West New York be subject
to a mandatory set aside of 20% of the total dwelling units in the building,
10% for low-income and 10% for moderate-income dwelling units, pursuant to
the procedures hereinafter set forth;
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Now therefore, be it ordained by the Mayor and Board of Commissioners
of the Town of West New York, County of Hudson, State of New Jersey, as follows:
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As used in this article, the following terms shall have the meanings
indicated:
IMPROVEMENT
Any capital improvements to a multifamily dwelling having a cost
for materials and labor in excess of $10,000 for the entire building.
LOW-INCOME DWELLING UNIT and MODERATE-INCOME DWELLING UNIT
Any allocated space in a multifamily structure which is to be sold
as a self-contained residential unit containing a separate bathroom, kitchen
and sleeping quarters for the housing of a family earning the income levels
as defined in the definition of low-income, moderate-income and affordable
housing.
On or after the date of this article, any application for development
or improvement of any existing multifamily dwelling, as hereinafter defined,
within the Town of West New York shall be rejected by the Construction Code
Official and any other municipal approval authority unless said application
shall allocate 10% of the total dwelling units for low-income and 10% of the
total dwelling units applied for as moderate-income dwelling units.
The Housing Trust Council shall be allocated to the Department of Public
Affairs. Each member shall serve without compensation. Its expenses shall
be budgeted and paid for by the Town of West New York. The Housing Trust Council
shall review all applications for development or improvement of existing multifamily
housing to assure completeness and compliance with this article and make recommendation
to the approving agency. In addition, the Housing Trust Council shall review
all applications for transfer or sale of any LI or MI dwelling unit, and it
shall also review and approve the continued qualification of that unit for
LI or MI designation. The Housing Trust Council shall also have the right
to review financial statements of applicants for initial occupancy of any
LI or MI unit and for continued occupancy by any resident based on submission
of supportive financial data by said resident as required by the Council.
Any applicant for occupancy of an LI or MI unit who has been a resident
of the Town of West New York for a minimum of three years prior to his or
her application shall be given a preference by the developer and the Housing
Trust Council for preemptive occupancy preference for the indigenous poor
of the Town of West New York so that they may continue to reside in the town.
This article shall not apply to the Housing Authority of the Town of
West New York. This article shall also not apply to any housing development
which is preempted by federal or state law, but this article shall apply to
any such housing development which at a future time ceases to be preempted
by federal or state law.
[Adopted 4-15-1987 by Ord. No. 1772;
amended in its entirety 5-1-1987 by Ord. No. 1777]
WHEREAS, the Board of Commissioners has previously taken notice of and
documented the emergency in the availability of decent, safe and sanitary
low- and moderate-income housing within the Town of West New York; and
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WHEREAS, the Board of Commissioners has previously determined that the
emergency exists and continues to grow more severe in the Town of West New
York as a result of the elimination of a substantial portion of the existing
rental housing stock and the insufficient new construction of affordable rental
housing, which have caused a substantial and increasing shortage of rental
housing affordable by families of low and moderate income, and
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WHEREAS, the conversion of rental units to condominium ownership has
seriously exacerbated the crisis and heightened the emergency by further reducing
the supply of rental housing affordable to individuals and families of low
and moderate income; and
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WHEREAS, the Town of West New York has determined that condominium units
are not affordable to individuals and families of low and moderate income;
and
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WHEREAS, the Town of West New York has an affirmative responsibility
imposed by the Constitution and laws of the State of New Jersey to provide
for the health, safety and welfare of its citizens, especially with regard
to assuring that all citizens, including those with low and moderate incomes,
can find safe, sanitary and decent shelter and to prevent the displacement
and subsequent homelessness of its citizens; and
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WHEREAS, the Supreme Court of the State of New Jersey has held that
every municipality has a constitutional obligation to provide a realistic
opportunity for a fair share of its region's present and prospective
needs for low- and moderate-income families, pursuant to the doctrine of South
Burlington N.A.A.C.P. v. Mt. Laurel Tp., 67 N.J. 151 (1975) and South Burlington
N.A.A.C.P. v. Mt. Laurel Tp., 92 N.J. 158 (1983), and the Fair Housing Act
N.J.S.A. 52:27D-311 et seq.; and
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WHEREAS, many of the communities surrounding the Town of West New York
have declared housing emergencies and are undergoing a severe shortage of
rental housing affordable to individuals and families of low and moderate
income; and
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WHEREAS, the Town of West New York has a substantial number of dwelling
units occupied by families and individuals with low and moderate incomes;
and
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WHEREAS, the courts of the State of New Jersey have acknowledged that,
despite the constitutional and statutory obligations imposed upon them, many
communities in the state have failed to accept their fair share of affordable
housing, which severely worsens the plight of low- and moderate-income individuals
and families in the Town of New York in search of affordable housing or in
fear of displacement; and
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WHEREAS, the Board of Commissioners of the Town of West New York has
determined that the preservation of existing housing units subject to rent
controls as rental units is the most effective and only practical means of
preserving existing affordable rental housing units, and
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WHEREAS, the Town of West New York has determined that restrictions
on the conversion of rental housing units to condominium or cooperative ownership
are necessary to effectuate the obligations, duties and responsibilities set
forth above; and
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WHEREAS, the Town of New York has determined that no other means are
feasible at the present time to discharge and obey the constitutional and
statutory obligations, duties and responsibilities imposed upon it; and
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WHEREAS, the Board of Commissioners finds that the town has a paramount
obligation to ameliorate the plight of individuals and families of low and
moderate income in danger of displacement and homelessness or desperately
in need of safe, decent, sanitary and affordable housing and further finds
that pronouncements of the State Legislature and of the New Jersey Supreme
Court and of other New Jersey courts all support the governing body's
determination; and
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WHEREAS, the Board of Commissioners finds that an alternative affordable
dwelling unit purchase program, which gives the converter a fair return on
its property, while giving the maximum number of persons of low and moderate
income a reasonable possibility of purchase, is necessary to effectuate the
purposes of this article; and
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WHEREAS, the Board of Commissioners finds that the restrictions enacted
in this article must remain in effect as long as an emergency continues to
exist in the availability of low- and moderate-income housing and as long
as our less affluent citizens are threatened with the loss of their homes
and cannot find decent, safe and sanitary housing which they can afford to
occupy;
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Now therefore, be it ordained by the Board of Commissioners of the Town
of West New York, County of Hudson, State of New Jersey, as follows:
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The short name of this article shall be the "Affordable Housing Preservation
Ordinance."
Units in the following structures are not subject to any provisions
of this article:
A. Dwelling units not subject to Chapter
312, Rent Control, as amended and as may be amended in the future.
B. Newly constructed buildings, built from the ground up,
whether dwelling units are to be initially rented or sold, in which no dwelling
units have been rented and occupied prior to the effective date of this article.
C. Uninhabitable buildings which are completely vacant prior
to July 1, 1985, provided that no form of coercion or harassment was used
in rendering such building uninhabitable.
D. Buildings participating in an affordable home ownership program pursuant to §
221-13 below.
E. Buildings with one or more dwelling units occupied by
tenants, being converted to condominium ownership, in which the 90 days'
notice to tenants in occupancy required by N.J.S.A. 2A:18-61.8 has expired
as of the effective date of this article; or in the case where a building
being converted to condominium ownership is completely vacant, when a master
deed has been recorded pursuant to the Condominium Act, N.J.S.A. 46:8B-1 et
seq. prior to the effective date of this article; or in the case where a building
being converted to cooperative ownership is completely vacant when the ownership
of the building has been transferred to a cooperative corporation prior to
the effective date of this article.
Commencing with the effective date of this article:
A. No notice of intent to convert and no full plan of conversion,
as provided in N.J.S.A. 2A:18-61.8, shall be served on any tenant of a dwelling
unit subject to this article, and the Clerk of the Town of West New York shall
not accept for filing any notice of intent to convert and full plan of conversion,
as provided in N.J.S.A. 2A:18-61.8.
B. No original sale of or contract of original sale for
a condominium unit or shares in a cooperative corporation shall be concluded
or entered into in the Town of West New York.
C. No notice of eviction pursuant to N.J.S.A. 2A:18-61.2,
Subdivision g, shall be served on any tenant of any dwelling unit subject
to this article.
A violation of any provision of this article shall be punishable by
a fine of not more than $1,000 and imprisonment for not more than 90 days,
or both. A violation respecting more than one dwelling unit shall be considered
a separate violation as to each such dwelling unit.
As used in this article, the following terms shall have the meanings
indicated:
BALLOON BALANCE OF A BLANKET ENCUMBRANCE
The unpaid balance of a blanket encumbrance which will become payable
at some future date, which will not be totally amortized (down to zero balance)
by regular monthly or other periodic payments.
BLANKET ENCUMBRANCE
A mortgage, judgment or any other lien or encumbrance which encumbers
more than one dwelling unit being converted to a condominium or cooperative
form of ownership and which is not to be discharged at or before the closing
of a sale of such a dwelling unit.
CONVERTER
The owner (or representative of the owner) of property containing
dwelling units covered by this article, who proposes to or takes any action
for the purpose of effecting a conversion of such property and/or dwelling
units from any other form of ownership into a cooperative or condominium form
of ownership.
COOPERATIVE and COOPERATIVE CORPORATION
A cooperative housing association or corporation which entitles the
holder of a membership interest therein to possess and occupy a unit of dwelling
space owned and leased by said association or corporation.
CPI
The consumer price index (all items; base year 1967-100) for the
region of the United States of which West New York is a part, published periodically
by the United States Department of Labor, Bureau of Labor Statistics.
DIVISION
The Division of Housing and Urban Renewal of the New Jersey State
Department of Community Affairs.
DWELLING UNIT
Any dwelling unit used for residential purposes, including both rental,
cooperatively owned and condominium units.
EQUALIZED ASSESSED VALUATION
The value of the residential portion of real property, calculated
by dividing the assessed value of the property, for municipal tax purposes,
by the equalization ratio published by the Director of the Division of Taxation
of the State of New Jersey, and multiplying the result by the fraction of
the square footage of the floor area of the building and the area of the adjacent
lot used for residential purposes, including corridors, storage space, stairwells
and other such uses required in residential space, over the total square footage
of the floor area of the building and the area of the adjacent lot with areas
used in common being allocated according to the same proportion.
LOW INCOME
A household earning 50% or less of the median income for the West
New York, New Jersey, PMSA (Hudson County), as adjusted for household size
and as promulgated by the New Jersey Department of Community Affairs and updated
from time to time.
MAINTENANCE COSTS
Includes real estate taxes, utility expenses and actual expenses
for repairs, upkeep and maintenance respecting a dwelling unit, but shall
not include principal or interest payments on any blanket encumbrance or other
mortgage or encumbrance.
MAYOR
The Mayor of the Town of West New York.
MODERATE INCOME
A household earning 50% to 80% of the median income for the West
New York, New Jersey, PMSA (Hudson County), as adjusted for household size
and as promulgated by the New Jersey Department of Community Affairs and updated
from time to time.
ORIGINAL SALE
The first sale by the converter of a condominium unit or shares in
a cooperative.
PREVAILING INTEREST RATE
The interest rate at which a mortgage loan, to finance the highest
permissible percentage of the purchase price of a dwelling unit undergoing
conversion, may be obtained by a qualified borrower from a bank, savings bank,
savings and loan association or other financial institution authorized to
make such a loan in the Town of West New York. For the purpose of computations
made pursuant to this article, the Rent Control Board shall determine the
prevailing interest rate at any given time, either by regulation or adjudication
in particular cases.
PROPORTIONATE SHARE OF A BLANKET ENCUMBRANCE
That portion of the principal and interest of a blanket encumbrance
which is required to be paid by the owner of any particular dwelling unit.
If the application for registration or the public offering statement filed
with, and accepted by, the Division, in connection with the converting of
any such unit, sets out any such proportionate share, then such share, so
set out, shall apply to any calculations to be made hereunder; otherwise,
the proportionate share of any dwelling unit shall be a percentage of the
total amount to be paid respecting a blanket encumbrance, which is the same
percentage as the price being charged by the converter for the dwelling unit
in question bears to the total price being charged by the converter for all
dwelling units encumbered by such blanket encumbrance.
UNINHABITABLE BUILDING
A structure which is completely vacant and unfit for human habitation
as defined by the statutes, codes and ordinances in full force and effect
in the State of New Jersey, County of Hudson and Town of West New York.