[Added 3-18-2008 by Ord.
No. 142A-2008; amended 11-16-2009 by Ord. No. 194-2009; repealed and replaced 9-4-2018 by Ord. No. 359-2018]
A.
This article is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This article shall apply except where inconsistent with
applicable law.
B.
The City of Cape May 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. The Fair Share Plan has been endorsed by the governing
body. The Fair Share Plan describes the ways The City of Cape May
shall address its fair share for low- and moderate-income housing
as approved by the Court and documented in the Housing Element.
C.
This article implements and incorporates the Fair Share Plan and
addresses the requirements of N.J.A.C. 5:93-1, et seq., as amended
and supplemented, N.J.A.C. 5:80-26.1 et seq as amended and supplemented
and the New Jersey Fair Housing Act of 1985.
D.
Beginning on July 2, 2015, and on every anniversary of that date
through July 2, 2025, the City agrees to provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Council on Affordable
Housing (COAH), or Local Government Services (NJLGS). The reporting
shall include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
E.
Beginning on July 2, 2015, and on every anniversary of that date
through July 2, 2025, the City agrees to provide annual reporting
of the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to Fair Share Housing Center, using forms previously developed
for this purpose by COAH or any other forms endorsed by the Special
Master and FSHC. Any plan evaluation report of the Housing Element
and Fair Share Plan and monitoring prepared by COAH in accordance
with N.J.A.C. 5:96 shall be available to the public at the City of
Cape May Municipal Building, Municipal Clerk's Office, 643 Washington
Avenue, Cape May City, New Jersey, 08204.
F.
By (DATE), as required pursuant to N.J.S.A. 52:27D-313, the City
will post on its municipal website, with a copy provided to FSHC,
a status report as to its implementation of its Plan and an analysis
of whether any unbuilt sites or unfulfilled mechanisms continue to
present a realistic opportunity and whether any mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the municipality, with
a copy to FSHC, regarding whether any sites no longer present a realistic
opportunity and should be replaced an whether any mechanisms to meet
unmet need should be revised or supplemented. Any interested party
may by motion request a hearing before the Court regarding these issues.
G.
By (DATE), and every third year thereafter, as required by N.J.S.A.
52:27D-329.1, the City will post on its municipal website, with a
copy provided to FSHC, a status reports as to its satisfaction of
its very low income requirements, including its family very low income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very low income and family very
low income housing obligations.
The following terms when used in this article shall have the
meanings given in this section:
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.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this article, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; in the case of an ownership
unit, that the sales price for the unit conforms to the standards
set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented,
and, in the case of a rental unit, that the rent for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development all or a portion of which consists
of restricted units.
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100 percent affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing
trust fund.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80 percent of the
units are occupied by one person that is 55 years or older; or 3)
the development has been designated by the Secretary of the U.S. Department
of Housing and Urban Development as "housing for older persons" as
defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
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
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of,
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.).
The State of New Jersey Department of Community Affairs.
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.
Any person, partnership, association, 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.
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.
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.
A household with a total gross annual household income equal
to 50 percent or less of the median household income.
A restricted unit that is affordable to a low-income household.
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.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH.
A household with a total gross annual household income in
excess of 50 percent but less than 80 percent of the median household
income.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses 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.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80 percent of the regional
median as defined by COAH's adopted Regional Income Limits published
annually by COAH.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
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. In assisted living residences, rent does
not include charges for food and services.
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 Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30 percent or less of the median household income.
A restricted unit that is affordable to a very low-income
household.
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.
The City of Cape May has determined that it will use the following
mechanisms to satisfy its affordable housing obligations:
A.
A rehabilitation program.
(1)
The City of Cape May's rehabilitation program shall be designed
to 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.
(2)
Both owner occupied and renter occupied units shall be eligible for
rehabilitation funds.
(3)
All rehabilitated 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.
(4)
The City of Cape May shall dedicate a minimum of $10,000 for each
unit to be rehabilitated through this program, reflecting the minimum
hard cost of rehabilitation for each unit.
(5)
The City of Cape May shall adopt a resolution committing to fund
any shortfall in the rehabilitation programs for the City of Cape
May.
(6)
The City of Cape May shall designate, subject to the approval of
the Court, one or more Administrative Agents to administer the rehabilitation
program in accordance with N.J.A.C. 5:96 and N.J.A.C. 5:97. The Administrative
Agent(s) shall provide a rehabilitation manual for the owner occupancy
rehabilitation program and a rehabilitation manual for the rental
occupancy rehabilitation program to be adopted by resolution of the
governing body and subject to approval of the Court. Both rehabilitation
manuals shall be available for public inspection in the Office of
the Municipal Clerk and in the office(s) of the Administrative Agent(s).
(7)
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(a)
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. 5:97-9 and UHAC.
(b)
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. 5:97-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner occupied units shall be exempt from the regional asset limit.
B.
An accessory apartment program.
(1)
All accessory apartments shall meet the following conditions:
(a)
Accessory apartments are permitted by the Zoning Ordinance for
various zoning districts, provided the units are affordable to low-
and moderate-income households. Accessory apartments may be developed
as low-income or moderate-income units (accessory apartments may be
limited to only low- or only moderate-income units as determined in
the Fair Share Plan).
(b)
Accessory apartments shall comply with all applicable statutes
and regulations of the State of New Jersey in addition to all building
codes.
(c)
At the time of initial occupancy of the unit and for at least
10 years thereafter, the accessory apartment shall be rented only
to a household which is either a low- or moderate-income household.
(d)
Rents of accessory apartments shall be affordable to low- or
moderate-income households as per COAH and UHAC regulations.
(e)
There shall be a recorded deed or declaration of covenants and
restrictions applied to the property upon which the accessory apartment
is located running with the land and limiting its subsequent rental
or sale of the unit and the accessory apartment.
(f)
The appropriate utility authority must certify that there is
water and sewer infrastructure with sufficient capacity to serve the
proposed accessory apartment. Where the proposed location is served
by an individual well and/or septic system, the additional capacity
necessitated by the new unit must meet the appropriate NJDEP standards.
(g)
The City of Cape May accessory apartment program shall not restrict
the number of bedrooms in any accessory apartment.
(h)
No accessory apartment created as a result of this article or
these regulations shall exceed the gross floor area of the existing
principal dwelling on the lot.
(2)
The maximum number of creditable accessory apartments shall be equal
to no more than 12 or an amount equal to 10 percent of the City of
Cape May's fair share obligation, whichever is greater. Of the
12 accessory apartments, there will be six low-income units of which
two will be deed restricted for very low income households
(3)
The City of Cape May shall designate an administrative entity to
administer the accessory apartment program that shall have the following
responsibilities:
(a)
The Administrative Agent shall administer the accessory apartment
program, including advertising, income qualifying prospective renters,
setting rents and annual rent increases, maintaining a waiting list,
distributing the subsidy, securing certificates of occupancy, qualifying
properties, handling application forms, filing deed restrictions and
monitoring reports and affirmatively marketing the affordable accessory
apartment program in accordance with the UHAC.
(b)
The administrative entity shall only deny an application for
an accessory apartment if the project is not in conformance with COAH's
requirements and/or the provisions of this section/article. All denials
shall be in writing with the reasons clearly stated.
(c)
In accordance with the requirements of the Settlement Agreement
as approved by the Court, The City of Cape May shall provide at least
$30,000 per unit to subsidize the creation of a very low-income accessory
apartment, $25,000 per unit to subsidize the creation of each low-income
accessory apartment or $20,000 per unit to subsidize the creation
of each moderate-income accessory apartment. Subsidy may be used to
fund actual construction costs and/or to provide compensation for
reduced rental rates.
(4)
Property owners wishing to apply to create an accessory apartment
shall submit to the administrative entity:
(a)
A sketch of floor plan(s) showing the location, size and relationship
of both the accessory apartment and the primary dwelling within the
building or in another structure;
(b)
Rough elevations showing the modifications of any exterior building
facade to which changes are proposed; and
(c)
A site development sketch showing the location of the existing
dwelling and other existing buildings; all property lines; proposed
addition, if any, along with the minimum building setback lines; the
required parking spaces for both dwelling units; and any man-made
conditions which might affect construction.
C.
A market to affordable program.
(1)
A market to affordable program is established to permit the purchase
or subsidization of units through a written agreement with the property
owner and sold or rented to low- and moderate-income households. Subject
to the provisions of paragraph (2)(c) below, the market to affordable
programs may produce both low- and moderate-income units (the program
may be limited to only low- or only moderate-income units as per the
Fair Share Plan).
(2)
The following provisions shall apply to market to affordable programs:
(a)
At the time they are offered for sale or rental, eligible units
may be new, pre-owned or vacant.
(b)
The units shall be certified to be in sound condition as a result
of an inspection performed by a licensed building inspector.
(c)
The municipality will provide a minimum of $25,000 per unit
to subsidize each moderate-income unit and/or $30,000 per unit to
subsidize the each low-income unit, with additional subsidy depending
on the market prices or rents in a municipality.
(d)
The maximum number of creditable market to affordable units
shall be equal to no more than 10 for sale units and 10 rental units
or a combined total of 10 percent of the fair share obligation, whichever
is greater.
(3)
The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(a)
Bedroom distribution (N.J.A.C. 5:80-26.3(b) and (c));
(b)
Low/moderate income split (N.J.A.C. 5:80-26.3(a)); and
(c)
Affordability average (N.J.A.C. 5:80-26.3(d) and (e)); however:
[1]
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60 percent of median income and
the maximum rent for a low-income unit shall be affordable to households
earning no more than 44 percent of median income; and
[2]
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70 percent of median
income and the maximum sales price for a low-income unit shall be
affordable to households earning no more than 40 percent of median
income.
A.
Applicability.
(1)
This subsection of the Cape May Development Regulations sets forth
mechanisms by which developers shall provide for a fair share of affordable
housing based on the unmet need that is associated with the City of
Cape May's fair share obligations as specified in the Settlement
Agreement approved by the Court.
B.
Exemptions. Residential developments that received preliminary or
final approval from the Planning Board and/or Board of Adjustment,
as applicable, prior to the effective date of Ordinance No. 174-2009
(May 20, 2009) are hereby exempt from the provisions of this section.
C.
Residential unmet need provisions.
(1)
Residential development in any of residential zoning districts in
Cape May which results in the construction of five or more new market-rate
dwelling units shall be permitted a presumptive density increase of
40 percent over the permitted density in the existing zoning with
a presumptive maximum affordable housing set-aside of 20 percent of
the total number of units in the development. For example:
|
Permitted Market Rate Units Under Existing Zoning
|
Additional Lots With 40 Percent Density Increase (1)
|
Total
Maximum Number of Lots (1)
|
20 Percent Affordable Set-Aside Requirement Based on Total Maximum
Number of Lots
|
|---|---|---|---|
|
4
|
None
|
4
| |
|
5
|
2
|
7
|
1.4 (2)
|
|
10
|
4
|
14
|
2.8 (2)
|
|
25
|
10
|
35
|
7.0
|
|
Notes:
|
|
(1) If the 40% density increase lot calculation or the total
number of maximum lot calculation results in a fractional number -
that number can be rounded up to the nearest whole number at 0.5 or
greater and rounded down to the nearest whole number at 0.4 or less.
|
|
(2) Fractional Affordable Share - See Section 59-43 E
|
(2)
As an alternative to fulfilling the affordable housing requirement on site set forth in Section 59-43 C(1), developers of residential units required to construct an affordable housing unit may elect to construct an affordable housing unit elsewhere in Cape May or purchase an existing residential unit elsewhere in Cape May which shall comply with applicable COAH Rules at N.J.A.C. 5:93-1 et seq. Under this alternative if the required number of affordable units is provided off site those affordable units are to be deducted from the total maximum number of units after the 40 percent density increase is applied.
(3)
For any inclusionary development of five or more housing units which
results in a fractional affordable share the developer shall make
a payment in lieu of constructing the fractional affordable unit.
The fractional share amount shall be established by multiplying the
resulting fraction by the amount established in N.J.A.C. 5:97-6.4
(c) 3 for COAH Housing Region 6.
(6)
The area known as the "Sewell Point Tract", which is comprised of
numerous parcels and is the area totally encompassed in the Planned
Residential Conservation (PRC) Zoning District. As an additional mechanism
to meet unmet need, the City will require that 20 percent of any residential
units developed on the PRC Zoning District be affordable in accordance
with this Section.
(7)
13% of all units, excepting those units that were constructed or
granted preliminary or final site plan approval prior to July 1, 2008,
to be very low income units, with half of the very low income units
being available to families. The City will comply with those requirements
by requiring two very-low-income accessory apartments as specified
above and by requiring that very low income units constitute 13 percent
of affordable units developed on any site in the City via inclusionary
zoning and/or overlay zoning requirements.
(8)
The City shall meet its Third Round
Prospective Need in accordance with the following standards:
a.
Third Round bonuses will be applied in accordance with N.J.A.C. 5:93-5.15(d).
b.
At least 50 percent of the units addressing the Third Round Prospective
Need shall be affordable to very-low-income and low-income households
with the remainder affordable to moderate-income households.
c.
At least twenty-five percent of the Third Round Prospective Need
shall be met through rental units, including at least half in rental
units available to families.
d.
At least half of the units addressing the Third Round Prospective
Need in total must be available to families.
e.
An age-restricted cap of 25% is required and no waiver of that requirement
is permitted. This shall be understood to mean that in no circumstance
may the municipality claim credit toward its fair share obligation
for age-restricted units that exceed 25% of all units developed or
planned to meet its cumulative prior round and third round fair share
obligation.
D.
General provisions for constructing affordable units in inclusionary
developments.
(1)
Affordable housing units being constructed on site or off site shall meet the requirements of the Cape May affordable housing regulations in Chapter 59, Article VI and shall be in conformance with COAH's Rules at N.J.A.C. 5:93-1 et seq. and the Uniform Housing Affordability Controls at N.J.A.C. 5:80-26.1 et seq. as revised, including, but not limited to, requirements regarding phasing schedules, controls on affordability, very low/low/moderate income split, heating source, maximum rent and/or sales prices, affordability average, bedroom distribution, and affirmative marketing with the exception that in lieu of 10 percent of affordable units in rental projects being required to be at 35 percent of median income, 13 percent of affordable units in such projects shall be required to be at 30 percent of median income.
(2)
To the greatest extent possible, affordable housing units being provided
within an inclusionary development shall be distributed throughout
the inclusionary development and shall be located within buildings
designed to be architecturally similar to the market-rate units otherwise
being constructed within the development. To that end, architectural
detailing (such as the selection of exterior materials, doors, windows,
roof pitch, etc.) of the buildings containing the affordable housing
units shall be similar to and compatible with that of the market-rate
units.
(3)
For developments in which one affordable housing unit is required under this section, that unit shall be affordable to a low-income household and shall be in conformance with the affordable housing regulations in Subsection D(1) above.
(5)
In developments where a density bonus lot is permitted per Section 59-43 C(1) and affordable housing units are constructed on site or off site, the zoning regulations in the applicable zoning district shall be relaxed as follows:
(a)
The zoning ordinance for the zone in which the affordable housing
units are to be constructed shall be relaxed so as to permit such
additional units with as little deviation from the lot size, lot width
and lot frontage bulk regulations as possible. The minimum lot size
requirement for each zone shall equal the subject lot size divided
by total lots permitted with density increase. Minimum lot width and
lot frontage shall be reduced proportionally to the lot size requirement.
For example: Lot size (100,000 SF) divided by total lots (15)
permitted with density increase provision equals the minimum lot size
of 6,666.7 SF. The proposed tract encompasses an entire city block.
Total tract depth is 200' so lots on each side would have a 100'
lot depth. Minimum lot width and lot frontage would be determined
by using 500' width (total block frontage on one side) x 2 sides
of block = 1000' divided by total lots (15) permitted = 66.7
FT.
(b)
For projects that span more than one zoning district, the affordable
housing units may be concentrated in the district that allows the
higher level of density.
(c)
Floor area ratio, lot coverage, building height and set back
requirements must be satisfied subject the granting of variance relief.
(d)
The Planning Board shall have jurisdiction over all plans submitted
which utilize the compensatory benefit provisions of this section
subject to the Board of Adjustment's jurisdiction with respect
to variances requested under N.J.S.A. 40:55D-70(d), in which case
the Board of Adjustment shall also have jurisdiction to approve the
compensatory benefit plan.
E.
Affordable housing density incentive.
(1)
For the purposes of addressing unmet need the City has established
a higher density incentive in which developers of residential housing
units are provided enhanced incentives to afford them the opportunity
to construct additional affordable housing units to compensate for
the Round 2 and Round 3 unmet need.
(2)
The affordable housing density incentive shall be permitted for any
residential development with a total lot area equal to or greater
than 2 acres.
(3)
In lieu of the requirements for the set aside and density bonus as set forth in Subsection C(1), a developer shall have the option of selecting a set aside requirement of a 15 percent set-aside for rental housing and a 20 percent set-aside for for-sale housing and a density bonus of 50 percent for any residential development regardless of the number of units. On site or off site affordable units may be provided.
For example:
|
Permitted Market Rate Units Under Existing Zoning
|
Additional Lots With 50 Percent Density Increase (1)
|
Total Maximum Number of Lots (1)
|
15 Percent Affordable Set-Aside Rental Housing Requirement Based
on Total Maximum Number of Lots
|
20 Percent Affordable Set-Aside For-Sale Housing Requirement
Based on Total Maximum Number of Lots
|
|---|---|---|---|---|
|
5
|
3
|
8
|
1.2 (2)
|
1.6 (2)
|
|
10
|
5
|
15
|
2.25 (2)
|
3.0 (2)
|
|
20
|
10
|
30
|
4.5 (2)
|
6.0 (2)
|
|
36
|
18
|
54
|
8.1 (2)
|
10.8 (2)
|
|
Notes:
|
|
(1) If the density increase lot calculation or the total number
of maximum lot calculation results in a fractional number - that number
can be rounded up to the nearest whole number at 0.5 or greater and
rounded down to the nearest whole number at 0.4 or less.
|
|
(2) Fractional Affordable Share - See Section 59-43 E.
|
(4)
Residential units shall be permitted in the C-5 district under the
affordable housing density incentive only and calculation of the number
of permitted market rate residential units allowed for C-5 district
shall be consistent with the R-3 district bulk and area requirements.
F.
Payment in lieu provisions.
(1)
Any payment in lieu for the required fractional share of an affordable
housing unit shall be derived from calculations for payments in lieu
of constructing affordable housing as published in N.J.A.C. 5:97-6.4
(c) 3 for COAH Region 6 as may be amended from time to time. Payment
in lieu is only permitted for fractional shares.
(2)
All payments in lieu of constructing affordable housing shall be deposited by Cape May into the Round 3 Cape May Affordable Housing Trust Fund in accordance with Section 59-76. These funds shall be used by Cape May in accordance with regulations established by COAH to create new affordable housing opportunities within the physical boundaries of Cape May.
The following general guidelines apply to all newly constructed
developments that contain low-and moderate-income housing units, including
any currently unanticipated future developments that will provide
low- and moderate-income housing units.
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-and/or very-low
income unit. At least 13 percent of all restricted rental units shall
be very low income units (affordable to a household earning 30 percent
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.
(2)
In each affordable development, at least 50 percent of the restricted
units within each bedroom distribution shall be very low or low-income
units.
(3)
Affordable developments that are not age-restricted 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 percent of the total low- and moderate-income
units;
(b)
At least 30 percent of all low- and moderate-income units shall
be two bedroom units;
(c)
At least 20 percent 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.
(4)
Affordable developments that are age-restricted 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.
The 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)
All new construction units shall be adaptable in conformance with
P.L. 2005, C.350/N.J.S.A. 52:27D-311a and N.J.S.A. 52:27D-311b and
all other applicable law.
(2)
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 and the following:
(3)
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;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(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 not all of the foregoing requirements in 3.a) through 3.d)
can be satisfied, then An interior accessible route of travel shall
not be required between stories within an individual unit, but if
all of the terms of paragraphs 3(a) through 3(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 the City of Cape May has collected funds
from the developer sufficient to make 10 percent 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
within the City of Cape May's affordable housing trust fund sufficient
to install accessible entrances in 10 percent of the affordable units
that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B above shall be used by the City of Cape May for the sole purpose of making the adaptable entrance of any 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 for the conversion from adaptable to accessible
entrances to the Construction Official of the City of Cape May.
[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 City of Cape May's affordable housing trust fund
in care of the Municipal Treasurer who shall ensure that the funds
are deposited into the affordable housing trust fund and appropriately
earmarked.
[6]
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 and N.J.A.C.
5:97-3.14.
C.
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, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and the calculation
procedures set forth below in § 59-46(C).
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60 percent of median income, and the average rent for restricted low-
and moderate-income units shall be affordable to households earning
no more than 52 percent 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 percent of all
low- and moderate-income rental units shall be affordable to very
low-income households, 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 percent of median income, and each affordable development
must achieve an affordability average of 55 percent for restricted
ownership units; in achieving this affordability average, moderate-income
ownership units must be available for at least three different prices
for each bedroom type, and low-income ownership units must be available
for at least two different prices for each bedroom type.
(5)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, 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 rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(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 percent
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 percent of the eligible
monthly income of the appropriate size household as determined under
N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided,
however, that the price shall be subject to the affordability average
requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30 percent of the eligible monthly income of the
appropriate household size as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the rent
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the administrative agent be Cape May than the
last recorded purchase price.
(10)
The rent of very low, low- and moderate-income units may be
increased annually based on the percentage increase in the Housing
Consumer Price Index for the United States. This increase shall not
exceed nine percent in any one year. Rents for units constructed pursuant
to low- income housing tax credit regulations shall be indexed pursuant
to the regulations governing low- income housing tax credits.
(11)
Utilities. Affordable units shall utilize the same type of heating
source as market units within an inclusionary development. Tenant-paid
utilities that are included in the utility allowance shall be so stated
in the lease and shall be consistent with the utility allowance approved
by DCA for its Section 8 program.
|
The following general guidelines apply to all developments that
contain low-and moderate-income housing units, including any currently
unanticipated future developments that will provide low- and moderate-income
housing units.
|
A.
The City of Cape May shall adopt by resolution an affirmative marketing
plan, subject to approval of the Court, compliant with N.J.A.C. 5:80-26.15,
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 also 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 all marketing activities
toward COAH Housing Region 6 and covers the period of deed restriction.
C.
The Administrative Agent designated by the City of Cape May shall
assure the affirmative marketing of all affordable units consistent
with the affirmative marketing plan for the municipality.
D.
In implementing the affirmative marketing plan, the Administrative
Agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
E.
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
F.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the City of Cape May.
G.
The City shall add to the list of community and regional organizations
in its affirmative marketing plan, pursuant to N.J.A.C. 5:80-26.15(f)(5),
Fair Share Housing Center, the New Jersey State Conference of the
NAACP, the Latino Action Network, and the Cape May County, Mainland/Pleasantville,
and Atlantic City Branches of the NAACP, and shall, as part of its
regional affirmative marketing strategies during its implementation
of the affirmative marketing plan, provide notice to those organizations
of all available affordable housing units. The City shall also require
any other entities, including developers or persons or companies retained
to do affirmative marketing, to comply with this paragraph.
A.
In referring certified households to specific restricted units, to
the extent feasible, and without causing an undue delay in occupying
the unit, the Administrative Agent shall strive to:
B.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
C.
All units shall include the required
bedroom distribution, be governed by controls on affordability and
affirmatively marketed in conformance with the Uniform Housing Affordability
Controls, N.J.A.C. 5:80-26.1 et seq. or any successor regulation,
with the exception that in lieu of 10 percent of affordable units
in rental projects being required to be at 35 percent of median income,
13 percent of affordable units in such projects shall be required
to be at 30 percent of median income, and all other applicable law.
The City as part of its HEFSP shall adopt and/or update appropriate
implementing ordinances in conformance with standard ordinances and
guidelines developed by COAH to ensure that this provision is satisfied.
Income limits for all units that are part of the Plan required by
this Agreement 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 City
annually within 30 days of the publication of determinations of median
income by HUD as follows:
1.
Regional income limits shall be established for the region that the
City is located within Region 6 based on the median income by household
size, which shall be established by a regional weighted average of
the uncapped Section 8 income limits published by HUD. To compute
this regional income limit, the HUD determination of median county
income for a family of four is multiplied by the estimated households
within the county according to the most recent decennial Census. The
resulting product for each county within the housing region is summed.
The sum is divided by the estimated total households from the most
recent decennial Census in the City's housing region. This quotient
represents the regional weighted average of median income for a household
of four. The income limit for a moderate-income unit for a household
of four shall be 80 percent of the regional weighted average median
income for a family of four. The income limit for a low-income unit
for a household of four shall be 50 percent of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very low income unit for a household of four
shall be 30 percent of the regional weighted average median income
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 those for the
previous year.
2.
The income limits are the result of applying the percentages set
forth in paragraph 1 above to HUD's determination of median income
for FY 2017, and shall be utilized until the City updates the income
limits after HUD has published revised determinations of median income
for the next fiscal year.
3.
The Regional Asset Limit used in determining an applicant's
eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3
shall be calculated by the City annually by taking the percentage
increase of the income limits calculated pursuant to paragraph 1 above
over the previous year's income limits, and applying the same
percentage increase to the Regional Asset Limit from the prior year.
In no event shall the Regional Asset Limit be less than that for the
previous year.
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this article until the City of Cape May elects to release the unit
from such requirements however, and prior to such an election, a restricted
ownership unit must remain subject to the requirements of N.J.A.C.
5:80-26.1, as may be amended and supplemented, for at least 30 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 administrative agent 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 first sale of the unit, the purchaser shall execute
and deliver to the Administrative Agent 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 requirements of this article, an amount equal to
the difference between the unit's nonrestricted 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 article 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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(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 Administrative Agent.
B.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.
The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners.
D.
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of 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 low-income ownership units
shall be reserved for households with a gross household income less
than or equal to 50 percent of median income and moderate-income ownership
units shall be reserved for households with a gross household income
less than 80 percent of median income.
i.
Notwithstanding the foregoing, however, the Administrative Agent
may, upon approval by the Township Council, and subject to the Court's
approval, permit moderate-income purchasers to buy low-income units
in housing markets if the Administrative Agent determines that there
is an insufficient number of eligible low-income purchasers to permit
prompt occupancy of the units. All such low-income units to be sold
to moderate-income households shall retain the required pricing and
pricing restrictions for low-income units.
ii.
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
B.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is 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 33 percent of the household's certified monthly income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section, and the Administrative Agent shall issue such determination
prior to the owner incurring such indebtedness.
B.
With the exception of original
purchase money mortgages, during a control period 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 percent of the
maximum allowable resale price of that unit, as such price is determined
by the administrative agent in accordance with N.J.A.C. 5:80-26.6(b).
1.
Capital Improvements to Ownership Units
(a)
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit based on capital
improvements made since the purchase of the unit. Eligible capital
improvements shall be those that render the unit suitable for a larger
household or that add an additional bathroom. In no event shall the
maximum sales price of an improved housing unit 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 (e.g., refrigerator, range,
washer, dryer, dishwasher, wall-to-wall carpeting) shall be 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
Administrative Agent 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 10-year, straight-line depreciation, has been
approved by the Administrative Agent. Unless otherwise approved by
the Administrative Agent, 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 selling and
receiving property has taken place at the time of or as a condition
of resale.
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this article until the City of Cape May elects to release the unit
from such requirements pursuant to action taken in compliance with
N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior
to such an election, a restricted rental unit must remain subject
to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented,
for at least 30 years.
B.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Cape May. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
C.
A restricted rental unit shall remain subject to the affordability
controls of this article, despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the Administrative Agent.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
C.
Application fees (including the charge for any credit check) shall
not exceed five percent of the monthly rent of the applicable restricted
unit and shall be payable to the Administrative Agent to be applied
to the costs of administering the controls applicable to the unit
as set forth in this article.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very low-income rental units shall be reserved for households with
a gross household income less than or equal to 30 percent of median
income.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50 percent of median income.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80 percent of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35
percent (40 percent for age-restricted units) of the household's
eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16,
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 percent (40 percent 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 percent (40 percent
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 proposed 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.
A.
The position of Municipal Housing Liaison (MHL) for City of Cape
May is established by this article. The City of Cape May governing
body shall make the actual appointment of the MHL by means of a resolution.[1]
(1)
The MHL must be either a full-time or part-time employee of the City
of Cape May.
(2)
The person appointed as the MHL must be reported to Court for approval.
(3)
The MHL must meet all COAH requirements for qualifications, including
initial and periodic training.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the City
of Cape May, including the following responsibilities which may not
be contracted out to the Administrative Agent:
(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 City of
Cape May's Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required
by the Settlement Agreement;
(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 DCA or another designated entity.
[1]
Editor's Note: Ordinance No. 175-2009, adopted April
22, 2009, originally established the position of Municipal Housing
Liaison.
B.
The City of Cape May shall designate by resolution of the City council,
subject to the approval of the Court, one or more Administrative Agents
to administer newly constructed affordable units in accordance with
UHAC.
C.
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body and subject to approval
of the Court. The Operating Manuals shall be available for public
inspection in the Office of the Municipal Clerk and in the office(s)
of the Administrative Agent(s).
D.
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC and which are
described in full detail in the Operating Manual, including those
set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes:
(1)
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by DCA or another designated entity;
(2)
Affirmative marketing;
(3)
Household certification;
(4)
Affordability controls;
(5)
Records retention;
(6)
Resale and re-rental;
(7)
Processing requests from unit owners;
(8)
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality; and
(9)
The Administrative Agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the 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 municipality
may take the following action 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 municipality 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
found by the 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 $500 or imprisonment for a period not
to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the City of Cape May Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented his or her 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 municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any 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- and moderate-income unit.
C.
Such judgment shall be enforceable, at the option of the municipality,
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 municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
D.
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 municipality 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 municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality 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 municipality 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 municipality 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
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
E.
Foreclosure by the municipality 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 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.
F.
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 municipality may acquire title to the 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 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.
G.
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
H.
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.
Appeals from all decisions of an Administrative Agent designated
pursuant to this article shall be filed in writing with the Executive
Director of NJ HMFA.
