[HISTORY: Adopted by the Township Committee of the Township of Harrison
6-18-2001 by Ord. No. 17-2001. Amendments noted where applicable.]
This chapter shall be known and may be cited as the "Affordable Housing
Ordinance of the Township of Harrison."
The purpose of this chapter is to establish a mechanism for assuring
that housing units designated for occupancy by low- and moderate-income households
remain affordable to and occupied by low- and moderate-income households.
The following terms, wherever used or referenced in this chapter, shall
have the following meanings unless a different meaning clearly appears from
the context:
- ADMINISTRATIVE AGENCY
- The entity designated by Harrison Township to ensure that housing units are restricted to, affordable to, and occupied by low- and moderate-income households.
- AFFORDABLE HOUSING PLAN
- An instrument to be recorded with the office of the Recorder, Gloucester County, New Jersey, constituting restrictive covenants running with the land with respect to the low- and moderate-income units described and identified in such instrument. The instrument shall set forth the terms, restrictions and provisions applicable to the low- and moderate-income units and shall be consistent with this chapter concerning use, occupancy, sale, resale, rental, rerental, sales price and rental determination, duration of restrictions, exempt transactions, hardship exemptions, foreclosure, violation, legal description of the specific low- and moderate-income units governed by the instrument, determination of eligible purchasers and owners, responsibilities of owners and improvements and creating the liens and rights of the Administrative Agency authorizing the Administrative Agency or, in the alternative, Harrison Township to enforce the restrictive covenants referred to herein. The terms, restrictions, and provisions of the instrument shall bind all purchasers and owners of any low- and moderate-income units, their heirs and assigns and all persons claiming by, through or under their heirs, assigns and administrators. If a single instrument is used to govern more than one low- and moderate-income unit, then the instrument must identify the location of each low- and moderate-income unit governed by the instrument, and the deed of each and every individual low- and moderate-income unit so governed must contain the recording information of the instrument applicable to such low- and moderate-income units.
- ASSESSMENTS
- Taxes, levies, charges or assessments both public and private, including those imposed by the association, as the applicable case may be, upon the low- and moderate-income units which are part of the association.
- COAH
- The Council on Affordable Housing.
- DEVELOPMENT FEES
- Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted by N.J.A.C. 5:93-8 et seq.
- EQUALIZED ASSESSED VALUE
- The value of a property determined by the Municipal Tax Assessor through a process designed to ensure that all property in the municipality is assessed at the same assessment ratio or ratios required by law. The Tax Assessor shall estimate the value of the property at the issuance of a building permit utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the Municipal Tax Assessor.
- FIRST-PURCHASE MONEY MORTGAGE
- The most senior mortgage lien to secure repayment of funds for the purchase of low- and moderate-income units.
- FIRST-PURCHASE MONEY MORTGAGEE
- The holder and/or assigns of the first-purchase money mortgage and which must also be an institutional lender or investor, licensed or regulated by a state or federal government. Other lenders, investors or persons may be holders of a first-purchase money mortgage; however, for the purposes of this chapter, such other lenders, investors, or persons shall not be first-purchase money mortgagees.
- FORECLOSURE
- A termination of all rights of the mortgagor or the mortgagor's assigns or grantees in a low- and moderate-income unit covered by a recorded mortgage through legal processes, or through a deed in lieu of foreclosure which has been executed and delivered prior to a judicially regulated sale.
- GROSS AGGREGATE HOUSEHOLD INCOME
- The total annual income from all sources of all members of the household or family, except income received by a family household member (other than the family head, spouse or foster children) who is under the age of 18 years or a full-time student of any age. Income includes but is not limited to compensation for employment services, interest, dividends, rent, pension benefits, government benefits, unemployment compensation, welfare payments, disability income, support payments and return-on-assets income as defined herein.
- HOUSEHOLD
- One or more persons living as a single nonprofit housekeeping unit, whether or not they are related by blood, marriage or otherwise.
- HOUSING TRUST FUND
- The interest-bearing account in which all development fees will be deposited pursuant to N.J.A.C. 5:93-8.15.
- IMPROVEMENT
- Additions within a low- and moderate-income unit, including materials, supplies, appliances or fixtures which become a permanent part of or affixed to such low- and moderate-income units.
- INCLUSIONARY DEVELOPMENT
- A development containing low- and moderate-income units. The term includes, but is not necessarily limited to, new construction, the conversion of a nonresidential structure to a residential structure, and the creation of new low- and moderate-income units through the substantial rehabilitation of a vacant residential structure.
- INCOME CEILING
- Eighty percent of the regional median income for moderate-income households and 50% of the regional median income for low-income households, with adjustments for household size.
- JUDGMENT OF REPOSE
- A judgment entered by the Superior Court approving a municipality's plan to satisfy its fair-share obligation.
- LOW-INCOME HOUSEHOLD
- A household with a gross aggregate household income which does not exceed 50% of the regional median income, with adjustments for household size.
- LOW-INCOME PURCHASER
- A low-income household purchasing either a low-income unit or a moderate-income unit, as the case may be.
- LOW-INCOME UNIT
- A unit which is affordable to a low-income household.
- MARKET UNIT
- Any residential unit within a development which is not designated as a low- and moderate-income unit.
- MODERATE-INCOME HOUSEHOLD
- A household with a gross aggregate household income which is greater than 50% of the regional median income, but which does not exceed 80% of said regional median income, with adjustments for household size.
- MODERATE-INCOME PURCHASER
- A moderate-income household purchasing a moderate-income unit.
- MODERATE-INCOME UNIT
- A unit which is affordable to a moderate-income household.
- NET FAMILY ASSETS
- The value of equity in real property, including gains from the sale of real property, savings and other forms of capital investment, but not including equity in a business or farm operation where that business or farm operation is the principal means of support of the household, amounts in an irrevocable trust fund or the value of personal property (e.g., car, furniture, etc.).
- OWNER
- The then current title holder of record of a low- or moderate-income unit. "Owner" shall refer to and mean the title holder of record as the same is reflected in the most recently dated and recorded deed for the particular low- and moderate-income unit. For purposes of the initial sale or rental of any low- or moderate-income unit, "owner" shall include the developer/owner of the land upon which the low- and moderate-income unit is to be constructed. Ownership of a low- and moderate-income unit shall be deemed to be acceptance and ratification of the provisions of this chapter and the Affordable Housing Plan. Where appropriate, the term "owner" shall also mean and refer to a person who owns a low- and moderate-income unit as a landlord or who occupies a low- and moderate-income unit as a tenant. "Owner" shall not include any cosigner or co-borrower on any purchase money mortgage unless such cosigner or co-borrower is also a named title holder of record of such low- and moderate-income unit.
- QUALIFIED PURCHASER
- A person who, pursuant to this chapter and the Affordable Housing Plan, submits an application for certification as a qualified purchaser to the Administrative Agency and whose gross aggregate household income at the time of proposed purchase of a low- and moderate-income unit is within low- and moderate-income levels, as these income levels are designated herein. Any person who submits false information in support of an application for certification and who subsequently received such certification and either title to a low- and moderate-income unit as owner or possession of a low- and moderate-income unit as tenant shall be deemed to have committed a substantial breach of the provisions of this chapter and the Affordable Housing Plan, and any right of ownership of such unit shall be subject to forfeiture pursuant to the provisions of § 67-11C of this chapter. A qualified purchaser shall not be permitted to own more than one low- and moderate-income unit at the same time.
- REGIONAL MEDIAN INCOME, BURLINGTON, CAMDEN AND GLOUCESTER
- The median household income shall mean and refer to the annual median income of the Gloucester, Camden and Burlington County housing region as determined by COAH.
- RETURN-ON-ASSETS INCOME
- When the household's total net family assets exceed $5,000, the gross aggregate household income shall include the dollar amount resulting from multiplying the value of the household's total net family assets by 10% after excluding the first $5,000 in assets.
A.
The Township hereby designates the Administrative Agency
with the responsibilities related to ensuring controls on affordability, pricing
low- and moderate-income households, affirmative marketing, and referring
income-qualified households to low- and moderate-income housing. The Administrative
Agency shall also work with the Township in completing monitoring forms required
by the court.
B.
The Township hereby designates the Township Clerk or
such other municipal official that may be appointed by the governing body
as its liaison to the Administrative Agency. The Clerk or other municipal
official shall be responsible for assisting the Administrative Agency in completing
its responsibilities.
C.
Administrative Agency responsibilities shall be:
(1)
To determine the maximum sale, resale, and rental charges
for low- or moderate-income units and to provide certification of the same
to the developer. Said sales and rental prices shall be adjusted annually
to reflect recalculations of the regional median income.
(2)
To prequalify prospective owners and renters based upon
income and household size and to issue a certificate as to income eligibility
status.
(3)
To establish selection procedures and criteria for determining
qualified purchasers and households.
(4)
To verify that an Affordable Housing Plan has been recorded
and the deeds of individual low- and moderate-income units reference such
Affordable Housing Plan.
(5)
To develop a formula for use in calculating the maximum resale price of low- and moderate-income units which is consistent with the provisions of § 67-20 of this chapter.
(6)
To determine whether the cost or value of the installation
of improvements or amenities within or as part of a low- or moderate-income
unit should be included in the calculation of the resale price or rental charge
for the unit and to establish guidelines whereby a homeowner can obtain a
determination in this regard prior to the time the improvements are made.
In no event may the maximum homeowner's housing cost exceed the maximum homeowner's
housing cost as defined herein.
(7)
To review and to approve or disapprove the Affordable
Housing Plan required of all developers of low- and moderate-income housing.
(8)
To review and approve or disapprove the developer's proposed
Affirmative Marketing Plan and to require developers to submit proofs of publication
in accordance with approved Affirmative Marketing Plans, and to monitor the
marketing practices of developers of low- and moderate-income units to ensure
that they comply with the affirmative marketing requirements of this chapter.
(9)
To report semiannually to the governing body and Township
Planning Board on the status of low- and moderate-income units, including
but not limited to such things as the Administrative Agency's actions in connection
with any statements of exemption and foreclosures upon any low- and moderate-income
units.
(10)
The Administrative Agency shall at all times maintain
a waiting list of qualified purchasers and shall provide said list to any
owner in the event of default proceedings.
D.
Fees.
(1)
Developers of low- and moderate-income housing shall
be responsible for reimbursing the Administrative Agency for its services
as provided in N.J.S.A. 52:27D-324 upon initial sale.
(2)
Owners of low- and moderate-income housing units shall
be responsible for reimbursing the Administrative Agency for its services
upon subsequent resales.
(3)
Owners of rental low- and moderate-income units shall
be responsible for reimbursing the Administrative Agency for its services
as provided in N.J.S.A. 52:27D-324 upon each rental and rerental.
A.
Wherever reference is made to low- or moderate-income housing in Chapter 225, Zoning, the standards, definitions and procedures set forth in this section shall apply.
B.
Except as otherwise expressly provided herein, no low-income
unit shall be offered for sale or rental except at prices that are affordable
by low-income households, and no moderate-income unit shall be offered for
sale or rental except at prices that are affordable by moderate-income households.
The provisions of this subsection shall apply equally to qualified low- and
moderate-income units or renters in terms of controls on sale, resale, rental,
or rerental of any low- and moderate-income unit.
C.
However, nothing contained in this chapter shall restrict
or preclude any household which was classified as low- or moderate-income
based upon its gross aggregate household income at the time it purchased or
leased a low- or moderate-income unit from continuing to own or lease said
unit after its income exceeds the income ceilings established in this chapter.
D.
Prospective purchasers of low- and moderate-income units
shall receive, prior to or simultaneously with the execution of the contract
to purchase a low- and moderate-income unit, a copy of the Affordable Housing
Plan and shall execute a disclosure statement which briefly summarizes the
salient features of the use, occupancy and resale restrictions applicable
to the low- and moderate-income unit. It shall be the developer's responsibility
to provide such for the initial sales and subsequent owner's responsibility
to provide the same for resales. The developer shall record the Affordable
Housing Plan prior to conveying any title to any individual low- and moderate-income
unit, and the deeds and leases of individual low- and moderate-income units
must reference such recorded Affordable Housing Plan.
E.
The bylaws of the homeowners' association shall provide
that the proportional relationship between the condominium fees initially
assessed against market units and lower income units upon initial sale shall
be held constant over time with changes in the assessments. Further, the public
offering statement for any market units in inclusionary developments shall
clearly disclose this proportional relationship to prospective purchasers.
Applications shall be accepted only if submitted on an application form
prepared and/or approved by the Administrative Agency. Applications shall
be completely filled out and notarized. Knowingly or intentionally making
any false statement on a form shall be grounds for disqualifying an applicant
even if the applicant is otherwise eligible. In placing households in low-
and moderate-income units, the following verification and certification procedures
shall be employed:
A.
Every household member 18 years of age or over who will
live in the affordable unit and receives income shall be required to provide
income documentation. This includes income received by adults on behalf of
minor children for their benefit. Household members 18 years of age or over
not receiving income must produce documentation of current status.
B.
Verification may include, but is not limited to, the
following:
(1)
Four consecutive pay stubs including overtime, bonuses,
or tips dated within 120 days of the interview date or a letter from an employer
stating present annual income figure as projected annually;
(2)
A copy of regular IRS Form 1040 (Tax computation form)
1040A, or 1040 EZ as applicable and state income tax returns filed for each
of the three years prior to the date of interview;
(3)
A letter or appropriate reporting form verifying benefits
such as social security, unemployment, welfare, disability or pension income
(monthly or annually);
(4)
A letter or appropriate reporting form verifying any
other sources of income claimed by the applicant such as alimony and child
support;
(5)
Reports that verify income from assets to be submitted
by banks or other financial institutions managing trust funds, money market
accounts, certificates of deposits, stocks or bonds;
(6)
Evidence or reports of income from assets such as real
estate or businesses that are directly held by any household member;
(7)
Evidence or reports that verify assets that do not earn
regular income such as non-income-producing real estate or savings that do
not earn interest; and
(8)
A notarized statement of explanation in such form as
to be satisfactory to the Administrative Agency.
C.
Generally, sources of annual income shall be based on
regular income reported to the IRS and which can be utilized for mortgage
approval. Household annual gross income shall be calculated by projecting
current gross income over a twelve-month period.
D.
Income includes but is not limited to wages, salaries,
tips, commissions, alimony, regularly scheduled overtime, pensions, social
security, unemployment compensation, AFDC, verified regular child support,
disability, net income from business or real estate, and income from assets
such as savings, CDs, money market, mutual funds, stocks and bonds and imputed
income from non-income-producing assets such as equity in real estate.
E.
Assets not earning a verifiable income shall have an
imputed interest income using a current average annual savings interest rate.
Assets not earning income include present real estate equity. Applicants owning
real estate must produce documentation of a market value appraisal and outstanding
mortgage debt. The difference will be treated as the monetary value of the
asset and the imputed interest added to income.
F.
Income from assets that have delayed earnings, such as
IRA's or annuity programs shall not be included in current income until such
payments are being received. However, these assets must be reported and verified.
G.
Net rent from real estate is considered income after
the monthly mortgage payment, including real estate taxes and insurance, is
deducted. Other expenses are not deductible. In addition, the equity in the
rented real estate is considered an asset and will have the imputed interest
income on the calculated value of equity added to income.
H.
Income does not include payments, rebates or credits
received under federal or state low-income home energy assistance programs,
food stamps, payments received for care of foster children, relocation assistance
benefits, income of live-in attendants, scholarships, student loans, personal
property such as automobiles, lump-sum additions to family assets such as
inheritances, one-time lottery winnings, and insurance settlements except
for additional income earned from these additions, and causal, sporadic or
irregular gifts and bonuses.
I.
Standard credit information services that provide conventional
credit and tenant reports may be utilized when certifying a household with
required written permission from the household. An unsatisfactory credit history
or credit information that demonstrates a disproportionate debt-to-income
ratio may result in a denial of certification. Court-ordered payments for
alimony or child support to another household shall be considered a regular
monthly debt whether or not it is being paid regularly.
J.
Households whose total gross annual income is measured
at 50% or below 50% of the authorized median income guideline shall be certified
as low-income households and referred to units designated for low-income households.
K.
Households whose total gross annual income is measured
above 50% but below 80% of the authorized median income shall be certified
as moderate-income households and referred to units designated for moderate-income
households.
L.
Generally, households will be referred to units where
predetermined total monthly housing costs correspond to the household's calculated
ability to pay using 28% of gross monthly income as a standard for home ownership
and 30% of gross monthly income as a standard for rental units.
M.
At the discretion of the Administrative Agency, households
may also be required to produce documentation of household composition for
determining the correct unit size and the applicable median income guide.
N.
Generally, households will be referred to available units
using the following standards for occupancy:
O.
Households may be considered for units other than as above, but in no case shall a household be referred to a unit that provides for more than one additional bedroom per household occupancy standard as stated in Subsection N above.
P.
A form for certification shall be prepared and signed
by the Administrative Agency. Only households receiving certification shall
be referred to affordable housing units.
Q.
Certified households who reject an opportunity for affordable
housing may remain on the referral list at their request and may be reinterviewed
for certification when their name appears on a listing for a subsequent unit.
R.
Certification shall be valid for no more than 120 days
unless a valid sales contract or lease has been executed within that time
period. In this event, certifications shall be valid until such time as the
sales contract or lease is ruled invalid and no occupancy has occurred. Certifications
may be renewed in writing at the request of a certified household for no more
than an additional period of 120 days at the discretion of the Administrative
Agency.
S.
Households who are denied certification may make a written
request for a redetermination. Households shall be required to produce additional
documentation to support their claim.
A.
The Administrative Agency shall adopt income eligibility
ceilings for low- and moderate-income units for various sized households consistent
with those adopted by COAH. No applicant with a household income in excess
of these ceilings shall be eligible to purchase or rent the low- and moderate-income
units.
B.
Upon annual adoption of adopted income standards by COAH,
the Administrative Agency shall modify its income-eligibility ceilings accordingly.
Unless otherwise permitted by court order or by COAH, the affordable
housing units provided through inclusionary development shall be divided equally
between low- and moderate-income households.
A.
At least half of all low- and moderate-income sales units
within each inclusionary development shall be affordable to low-income households.
B.
With the exception of affordable units constructed pursuant
to low-income tax credit regulations, at least half of all low- and moderate-income
rental units within each inclusionary development shall be affordable to low-income
households.
Affordable housing units shall have the following distribution of bedroom
types:
A.
Affordable units that are not restricted to senior citizens
shall be structured in conjunction with realistic market demands so that:
(1)
The combination of efficiency and one-bedroom units is
at least 10% and no greater than 20% of the total low- and moderate-income
units;
(2)
At least 30% of all low- and moderate-income units are
two-bedroom units; and
(3)
At least 20% of all low- and moderate-income units are
three-bedroom units.
B.
Low- and moderate-income units restricted to senior citizens
may utilize a modified bedroom distribution. At a minimum, the number of bedrooms
shall equal the number of senior citizen low- and moderate-income units within
the inclusionary development. The standard can be met by creating all one-bedroom
units or by creating a two-bedroom unit for each efficiency unit.
A.
The following criteria, in conjunction with realistic
market information, shall be used in determining maximum rents and sale prices:
B.
Median income by household size shall be established
by COAH.
C.
The maximum average price of affordable sales units shall
be affordable to households earning 57.5% of median income. In order to ensure
that low- and moderate-income units are affordable to a range of low- and
moderate-income households, the developer shall establish a range of stratified
selling prices for affordable sales units.
D.
The initial price of a low- and moderate-income owner-occupied
housing unit will be established so that after a down payment of 5%, the monthly
principal, interest, insurance, property taxes (property taxes shall be based
on the restricted value of low- and moderate-income units) and condominium
or homeowner fees do not exceed 28% of the eligible gross monthly income.
The master deeds of inclusionary developments shall specify that low- and
moderate-income homeowners shall pay 1/2 the condominium or homeowner fees
paid by purchasers of market housing units. This percentage, once established
within the master deed, shall not be amended without prior approval from COAH.
E.
In determining the sales price of affordable sales units
the following considerations shall govern:
(1)
Sixty or more days prior to the developer's anticipated
need of certificates of occupancy for low- and moderate-income units, the
developer shall provide the Administrative Agency with information demonstrating
the financing that is generally available locally to lower income home buyers
and the developer's calculation as to maximum initial sales prices. The interest
rate used by the developer in calculating the maximum sales price shall be
the rate that the Administrative Agency determines to be generally available
locally for a ninety-five-percent, thirty-year, fixed-rate mortgage.
(2)
The calculation to establish the purchase price of the
unit shall take into consideration the going interest rate for a thirty-year
fixed rate of interest as listed and available in Harrison Township and below-market-interest-rate
mortgages such as those provided through the New Jersey Housing and Mortgage
Finance the Administrative Agency. If the actual fixed rate of interest offered
by the developer shall be less than the local market rate, then that interest
rate shall be used for these calculations.
(3)
Property taxes shall be determined by applying the equalized
property tax rate in the Township of Harrison.
(4)
The developer shall use the best available assumptions
to determine the insurance and homeowners' association fees to be applied
to the units, subject to the approval of the Administrative Agency as to reasonableness
for use in this calculation.
F.
In averaging 57.5%, developers of rental units may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution. Gross rents, including an allowance for utilities, shall be established so as not to exceed 30% of the gross monthly income of the appropriate household size referenced in § 67-11A of this chapter. The utility allowance shall be derived from the utility allowance approved by HUD for use in New Jersey.
G.
Low-income housing units shall be reserved for households
with a gross household income less than or equal to 50% of the median income
approved by the COAH. Moderate-income housing units shall be reserved for
households with a gross household income less than 80% of the median income
approved by the COAH. For example, a household earning 48% of median income
may be placed in any low-income unit; however, a household earning 53% may
not qualify for a low-income unit. A household earning 67% of median may be
placed in any moderate-income housing unit. A household earning less than
50% of median may be placed in a moderate-income housing unit. Low- and moderate-income
units shall not be offered to households that are not income-eligible upon
initial sale without COAH approval pursuant to N.J.A.C. 5:93-9.16.
H.
Low- and moderate-income owner-occupied and rental units
shall utilize the same heating source as market units.
Rental charges shall remain in effect for a period of at least one year,
except that the landlord may request a modification of these charges by applying
to the Administrative Agency for recalculation of the rents based on changes
in the index for rentals adopted by COAH.
Affordable housing units shall be situated on the development tract
in locations no less desirable than market-priced dwelling units within the
development, and shall be equally accessible to common open space, community
facilities and shopping facilities.
In general, final site plan approval shall be contingent upon the development,
whether developed in one stage or in two or more stages, meeting the following
phasing scheduled:
|
Minimum Percentage of Low- or Moderate-Income Units Completed
|
Percentage of Market Housing Units Completed
|
|---|---|
|
0
|
25
|
|
10
|
25 + 1 unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
90
|
A.
No certificate of occupancy for a low- or moderate-income
unit shall be issued until the developer shall have submitted and have approved
by the Administrative Agency a deed restriction encompassing all the provisions
of these regulations.
B.
No certificate of occupancy shall be issued for the resale
of a low- or moderate-income unit unless the Administrative Agency shall certify
that the resale complies with the terms of these regulations.
C.
No low- and moderate-income unit may be occupied by an
initial purchaser or resale purchaser without a certificate of occupancy.
A.
Program definition. The Administrative Agency shall develop
and implement an affirmative marketing program for affordable housing units.
The Affirmative Marketing Plan is a regional marketing strategy designed to
attract buyers and/or renters of all majority and minority groups, regardless
of sex, age or number of children, to housing units which are being marketed
by the developer of affordable housing. It is a continuous program and covers
the period of the deed restriction.
B.
Advertising.
(1)
Advertising for affordable housing units shall begin
at least four months prior to expected occupancy. There shall be at least
one paid advertisement in Gloucester County Times and Courier Post during
the first week of the marketing program. The advertisement shall include:
(a)
The location of the units;
(b)
Directions to the housing units;
(c)
A range of prices for the housing units;
(d)
The size, as measured in bedrooms, of the housing units;
(e)
The maximum income permitted to qualify for the housing
units;
(f)
The location of applications for the housing units; and
(g)
The business hours when interested households may obtain
an application for a housing unit.
(2)
The Administrative Agency shall supplement newspaper
advertisements by:
(a)
Providing quarterly published materials to the Burlington,
Gloucester and Camden County Offices on Aging; Boards of Social Service; and
Boards of Realtors;
(b)
Providing quarterly published materials to mailing lists
of employers, public housing authorities, community development block programs
and nonprofit agencies that provide housing services within Burlington, Gloucester
and Camden Counties;
(c)
Posting advertisements in local businesses in and surrounding
Harrison Township; and
(d)
Mailing information about affordable housing to local
religious organizations.
(3)
The cost of all newspaper and radio advertising shall
be the developer's responsibility and shall be established at preliminary
approval.
C.
Applications. Applications for affordable housing shall
be available at the Municipal Building, the municipal library, and the developer's
sales office. Applications shall be mailed to prospective applicants upon
request.
D.
Random selection procedures. Applications for low- and
moderate-income units shall be reviewed as follows:
(1)
Households that apply for low- and moderate-income housing
shall be screened for preliminary income eligibility by comparing their total
income to the low- and moderate-income limits adopted by COAH. Applicants
shall be notified as to their eligibility status.
(2)
Having screened applicants for preliminary income eligibility,
the Administrative Agency may analyze the income and household sizes of applicants
to determine which applicants have the assets and/or income necessary to purchase
or rent each available low- or moderate-income unit.
(3)
The Administrative Agency shall interview each applicant
and utilize the procedures outlined to verify the applicant's income and household
size, determine the applicant's asset availability and review the applicant's
credit history. Applicants shall be required to submit income verification
for each household member 18 years or older. This process shall be utilized
in establishing the final certified applicant group.
(4)
The process described in Subsection D(1) through (3) above shall begin no sooner than one month after the initial advertisement outline in B(2) above. Households shall proceed through the process described in Subsection D(1) through (3) based on their ability to provide the information required pursuant to Subsection D(1) through (3) and pursuant to the occupancy selection procedures included in this chapter (§ 67-6). Households shall be certified for affordable units using the procedures outlined in § 67-6. The process described in Subsection D(1) through (3) shall be continued until all the low- and moderate-income units are occupied.
E.
Procedures following initial occupancy. Following the
initial sale or rental of affordable units, the Administrative Agency shall:
F.
Responsibilities.
(1)
The Administrative Agency is the agency under contract
with Harrison Township to administer the affirmative marketing program. The
Administrative Agency has the responsibility to income qualify low- and moderate-income
households in low- and moderate-income units upon initial occupancy; to provide
for the initial occupancy of low- and moderate-income units with income-qualified
households; to continue to qualify households for reoccupancy of units as
they become vacant during the period of affordability controls; to assist
with advertising and outreach to low- and moderate-income households; and
to enforce the terms of the deed restriction and mortgage loan. The Administrative
Agency shall also provide counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage qualification,
rental lease requirements, and landlord tenant law.
(2)
The Township Clerk shall be designated to attend an affirmative
marketing housing program approved by COAH and serve as the liaison to the
Administrative Agency.
(3)
All developers shall submit an Affirmative Marketing
Plan for marketing low- and moderate-income units that conforms to this subsection
of the chapter. The Affirmative Marketing Plan shall be subject to Administrative
Agency approval and shall be incorporated as a condition of approval of the
development application. The developer shall also be responsible for the following
unless such responsibilities are waived by the Administrative Agency:
(a)
Submissions of information as to financing terms readily
available to low- and moderate-income households for use by the Administrative
Agency in computing maximum sales prices.
(b)
Submission of an affordable housing plan and an Affirmative
Marketing Plan to the Administrative Agency for approval and submission of
proofs of publication to ensure compliance with said plan.
(c)
The marketing of all low- and moderate-income units in
accordance with the requirements of this chapter.
(d)
Submissions of quarterly reports to the Administrative
Agency detailing the number of low- and moderate-income households who have
signed leases or purchase agreements, as well as the number who have taken
occupancy of lower income units, including household size, number of bedrooms
in the unit, sales price and monthly carrying costs or, in the case of rental
units, the monthly rental charges and utilities included.
(4)
The developer's responsibilities hereunder shall expire
automatically with respect to for sale low- and moderate-income units upon
the date upon which the last low- and moderate-income unit within the particular
development is sold by the developer. With respect to rental low- and moderate-income
units, the developer's responsibilities shall be assumed by the landlord and
shall be performed by the landlord so long as such unit is a rental low- and
moderate-income unit and subject to the restrictions of this chapter.
(5)
The developer of affordable housing units shall be responsible
for returning all applicant and sales records for affordable units to the
Administrative Agency to aid in reporting to the court or COAH (whichever
has jurisdiction) and to aid in the evaluation of the affirmative marketing
program.
A.
Low- and moderate-income sales units shall not be offered
to non-income-eligible households at initial sale without approval from COAH.
Developers that petition for such approval must document efforts to sell housing
units to income eligible households and must demonstrate that the housing
units have been affirmatively marketed throughout the housing region. Developers
that seek such approval to sell low- and moderate-income sales units to non-income-eligible
households shall adhere to the procedures in N.J.A.C. 5:91-12 if seeking such
approval from COAH.
B.
In the event that COAH grants relief, low-income units
may be sold to a moderate-income buyer. A moderate-income unit may be sold
to a household whose income does not exceed 95% of median income.
C.
In no case shall the developer be able to receive more
than the maximum permitted sales price. In no case shall a sale pursuant to
this subsection eliminate the resale controls on the unit or permit any subsequent
seller to convey the unit except in full compliance with the terms of this
chapter. For example:
(1)
The relief granted shall apply only to the specific sale
or rental transaction for which its was issued.
(2)
The relief granted shall only exempt the specific transaction
from the restriction of selling or renting such low- and moderate-income unit
to only income-qualified purchasers. All other restrictions, requirements
and provisions of this chapter and the Affordable Housing Plan shall remain
in full force and effect, including but not limited to maximum sales prices
and rental charges which are established pursuant to this chapter.
D.
The restrictions of resale or rental to only qualified
purchasers shall apply to subsequent resales or rentals of the particular
low- and moderate-income unit.
A.
All resale transactions of affordable housing sales units
shall be administered by the Administrative Agency. From the date on which
the Administrative Agency receives a notice of intent to sell by the owner
of a low- and moderate-income unit, the Administrative Agency shall have the
exclusive right to purchase the unit at the maximum permitted sales price
or to refer prospective purchasers to that unit for a period of 90 days unless
waived in writing by the Administrative Agency. In the event that a contract
for the unit is executed within the ninety-day period set above and the prospective
buyer is unable to close, the period during which the Administrative Agency
shall have the exclusive right to market the unit is automatically extended
for a period of 21 days from the date it is notified of the buyer's inability
to close.
B.
In the event no contract has been entered into for the
unit at the end of the ninety-day period, the owner of the unit may seek approval
from the Administrative Agency to sell the unit to a non-income-eligible household.
Upon such a request, the Administrative Agency shall require the seller to
document all efforts to sell the unit to an income-eligible household. The
Administrative Agency shall require the seller to document the reasons for
any delay in selling the housing unit and the hardship to the seller in continuing
to offer the affordable unit to an income-eligible applicant. The inability
to sell the unit at the maximum permitted resale price shall not, in itself,
be considered an appropriate reason for allowing a housing unit to be sold
to a non-income-eligible household. If the Administrative Agency grants the
request, the housing unit may be sold as follows:
C.
Any subsequent sale shall be fully subject to the resale
restrictions contained in these regulations. The deed to the above-income
purchaser shall specifically contain a deed restriction establishing that
it is subject to all the affordability controls outlined in this chapter.
D.
In no event shall the seller receive more than the maximum
permitted resale price.
The resale price of the affordable housing unit shall be the base price
increased pursuant to Subsections A and B herein.
A.
Percentage increase in household income. The price approved
by the Administrative Agency at which the seller acquired the property shall
be the base price. The base price shall be multiplied by 100% plus the percentage
increase in the HUD uncapped median income by family size for Gloucester,
Camden and Burlington Counties from the time of acquisition of the property
to the date that notice of intent to sell is given to the Administrative Agency.
For example, if the base price is $30,000, the median income at the time of
the initial acquisition is $32,000 and the median income at the time of the
resale transaction the median income has increased 25% to $40,000, then the
resale price is as follows: $30,000 x 1.25 = $37,500
B.
Improvements. In addition, the seller shall be entitled
to add to the selling price of the unit the cost of an eligible capital improvement,
which pursuant to N.J.A.C. 5:93-9:11 renders the unit suitable for a larger
household. (For example, the addition of a bedroom would render a unit suitable
for a larger household). Upon the request of an owner of an affordable housing
unit, the Administrative Agency shall consider within 30 days whether to grant
prior approval of an improvement and to approve a specific dollar amount up
to the amount actually expended for that improvement.
A.
The following transactions shall be deemed nonsales for
the purpose of this chapter. The owner of the affordable unit shall be entitled
to a statement of exemption from the Administrative Agency upon application.
(1)
Transfer of an affordable housing unit between husband
and wife;
(2)
Transfer of ownership of an affordable housing unit between
former spouses as a result of a judicial decree, judgment or order of divorce,
but not including sales to third parties;
(3)
Transfer of ownership of an affordable housing unit as
a result of inheritance;
(4)
Transfer of ownership of an affordable housing unit through
an order of the Superior Court.
B.
A grant of exemption shall not eliminate the resale control
restriction set forth in these regulations. Any subsequent sale shall be subject
to all of the terms of these regulations.
No owner of an affordable housing sales unit may lease the unit to a
tenant without prior written approval of the Administrative Agency. Such approval
shall not be granted except when justified by particular and unusual circumstances.
An owner seeking such approval shall submit a written request to the Administrative
Agency setting forth the particular circumstances of the case including the
reasons for the request to rent, the proposed duration of the tenancy and
certification that the proposed tenant is a qualified low- or moderate-income
household. In the event the Administrative Agency approves the request, it
shall notify the owner of the unit. The owner shall rent the unit only to
a qualified low- or moderate-income tenant for the period approved by the
Administrative Agency at a rent affordable to a low- or moderate-income tenant,
whichever is applicable.
A.
Except as otherwise provided in these regulations, all
low- and moderate-income units subject to the provisions of this article shall
be subject to controls for a period of 30 years from the date of acquisition
of the unit by the initial purchaser. The form of the control shall be consistent
with the COAH restrictions as exhibited in Appendices E (Sales Units) and
H (Rental Units).
B.
All low- and moderate-income dwelling units shall be
covered by covenants to ensure that in all initial sales/rentals and in all
subsequent resales/re-rerentals, the units will continue to remain available
and affordable to the lower income households for which they were intended
for the period specified in this subsection in accordance with the requirements
and standards established by COAH.
No second mortgage shall be placed upon the property without the prior
written approval of the Administrative Agency. In determining whether to grant
an approval for the second mortgage, the Administrative Agency shall consider
the need for the second mortgage and the impact that the second mortgage shall
have upon the ability of the owner to maintain this unit as a low- and moderate-income
unit. Under no circumstances shall a foreclosure of a second mortgage constitute
grounds for eliminating the resale controls provided for in this regulation.
Prior written approval shall be denied unless second mortgages are specifically
authorized by COAH regulations and the application is consistent with those
regulations.
Items of personal property which are not permanently affixed to the
unit (e.g. refrigerator, freezer, washer, dryer) and which were not included
when the affordable housing unit was purchased may be the subject of separate
negotiations between the parties subsequent to the signing of the contract
for the purchaser of the house. Any agreed price for the purchase of any item
or items of personal property shall be reasonable considering the original
cost, nature, age and condition of the item. The price to be paid for items
of personal property shall not be used as a mechanism to avoid or circumvent
the limitations on the resale price of the unit itself. In no event shall
the right to purchase the unit be conditioned upon the buyer's willingness
to agree to purchase any item or items of personal property of the seller.
A.
Provisions for first-purchase money mortgagees.
(1)
The terms and restrictions of this chapter and the Affordable
Housing Plan shall be subordinate only to the first-purchase money mortgage
lien on any low- and moderate-income unit and in no way shall impair the first-purchase
money mortgagee's ability to exercise the contract remedies available to it
in the event of default as such remedies are set forth in the first-purchase
money mortgage documents for the unit.
(2)
So long as the first-purchase money mortgage is not sold
to the Federal National Mortgage Association or in the secondary mortgage
market, the first-purchase money mortgagee and/or mortgage servicer shall
serve written notice upon the Administrative Agency within 10 days after the
first-purchase money mortgage is three months in arrears and within 10 calendar
days of the filing of the complaint seeking foreclosure of the first-purchase
money mortgage held on a low- and moderate-income unit.
(3)
The obligation of the first-purchase money mortgagee
and/or servicer to notify the Administrative Agency shall cease automatically
and immediately upon the sale of the first-purchase money mortgage to the
Federal National Mortgage Association or in the secondary mortgage market,
unless the rules and regulations are amended so as to not prohibit or exclude
placing such obligation, in which case an instrument duly evidencing same
must be recorded with the office of the Recorder, Gloucester County, New Jersey,
and the Clerk of the Township of Harrison before any such obligation shall
exist.
(4)
Provided that the first-purchase money mortgagee is obligated
to give the Administrative Agency the above mentioned notices, the first-purchase
money mortgagee shall also serve written notice of any proposed foreclosure
sale upon the Administrative Agency at least 30 days prior to the first scheduled
date of such sale.
(5)
The first-purchase money mortgagee shall serve notice
upon the Administrative Agency within 30 days of the sale of the first-purchase
money mortgage to the Federal National Mortgage Association or in the secondary
mortgage market.
(6)
The Township of Harrison or any instrumentally designated
by the Township shall have the right to purchase any mortgage which is in
default at any time prior to the entry of a foreclosure judgment or within
the redemption period thereafter. Notification of a default and of the institution
of a foreclosure action and of a Sheriff's sale shall be served in writing
upon the Administrative Agency. The Township of Harrison shall at all times
be considered a party defendant and/or shall have the right to intervene in
any foreclosure action seeking foreclosure of a first mortgage and/or shall
have the right to redeem and acquire the owner's equity of redemption or to
acquire the unit from the owner upon such terms and conditions as may be determined
by the Administrative Agency.
(7)
In the event of foreclosure, the Administrative Agency
shall attempt to identify a qualified low- and moderate-income purchaser as
the case may be and shall give notice to the foreclosing party, and effort
shall be made within the confines of the applicable foreclosure laws to sell
the housing units to qualified low- and moderate-income households. If such
efforts are unsuccessful, the restrictive covenants shall remain in full force
and effect. In any case, the Township shall not lose credit for the low- and
moderate-income unit relating to which the foreclosure proceeding took place.
B.
Effect of foreclosure. Any low- and moderate-income unit
which is acquired by a first-purchase money mortgagee by deed in lieu of foreclosure
or by any purchaser at a mortgage foreclosure sale conducted by the holder
of the first-purchase money mortgage (including the first-purchase money mortgagee
but excepting the defaulting mortgagor) shall be permanently released from
the restrictions and covenants of this plan, and all resale restrictions shall
cease to be effective as to the first-purchase money mortgagee and all subsequent
purchasers and mortgagees of that particular unit (except for the defaulting
mortgagor, who shall be forever subject to the resale restrictions of this
plan with respect to the unit owned by him at the time of his default). The
Administrative Agency shall execute a document in recordable form evidencing
that such lower income unit has been forever released from the restrictions
of the chapter and the Affordable Housing Plan. Execution or foreclosure sales
by any other class of creditor or mortgagee shall not result in a release
of the unit from the provisions and restrictions of this chapter or the Affordable
Housing Unit.
C.
Excess funds. In the event of a foreclosure sale by the
holder of the first-purchase money mortgage, the owner shall be personally
obligated to pay the Administrative Agency any excess funds as the term "excess
funds" is used in the affordable housing agreement, included as part of the
Township's fair-share plan.
D.
Owner's equity.
(1)
Owner's equity shall be determined to be the difference
between the maximum resale price of the unit and the total of the assessments,
property taxes and other liens which may have been attached against the unit
prior to the foreclosure, provided that such total is less than the maximum
resale price.
(2)
If there are sums to which the owner is properly entitled,
such sums shall be turned over to the owner or placed in escrow by the Administrative
Agency for the owner for a maximum period of two years. Any interest accrued
or earned on such balance while being held in escrow shall belong to and shall
be paid to the Administrative Agency.
(3)
This provision is subject, however, to applicable laws
of the State of New Jersey governing the distribution and payment of proceeds
of foreclosure sales.
[Added 5-21-2007 by Ord. No. 20-2007]
The purpose of this article is to create the administrative mechanisms
needed for the execution of Harrison Township's responsibility to assist
in the provision of affordable housing pursuant to the Fair Housing Act of
1985.
As used in this article, the following terms shall have the meanings
indicated:
- ADMINISTRATIVE AGENT
- The entity responsible for administering the affordability controls of some or all units in the affordable housing program for Harrison Township to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households.
- MUNICIPAL HOUSING LIAISON
- The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for Harrison Township.
A.
Establishment of position of Municipal Housing Liaison.
There is hereby established the position of Municipal Housing Liaison for
Harrison Township.
B.
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.
C.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Harrison Township, including the following responsibilities which may not be contracted out, exclusive of Subsection C(6) which may be contracted out:
(1)
Serving as Harrison Township's primary point of
contact for all inquiries from the state, affordable housing providers, administrative
agents, and interested households;
(2)
Monitoring the status of all restricted units in Harrison
Township's fair share plan;
(3)
Compiling, verifying, and submitting annual reports as
required by COAH;
(4)
Coordinating meetings with affordable housing providers
and administrative agents, as applicable;
(5)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered or approved
by COAH;
(6)
If applicable, serving as the administrative agent for
some or all of the restricted units in Harrison Township.
D.
Subject to approval by COAH, Harrison 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 Harrison Township, except for those responsibilities which may not be contracted out pursuant to Subsection C above. If Harrison 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.
E.
Compensation. Compensation shall be fixed by the governing
body at the time of the appointment of the Municipal Housing Liaison.
