[Added 2-26-2019 by Ord.
No. 2019-02]
The Borough shall use the following mechanisms to satisfy its
affordable housing obligations:
A.
Percentage of Mandatory Set Asides for All Future Residential Developments.
(1)
If the Borough permits the construction of multi-family residential
developments, the Borough shall require that an appropriate percentage
of the residential units be set aside for low and moderate-income
households. This requirement shall apply beginning with the effective
date of this ordinance to any multi-family development, including
the residential portion of a mixed-use development, which consists
of five or more new residential units, whether permitted by a zoning
amendment, a variance granted by the Borough's Planning or Zoning
Board, or adoption of a Redevelopment Plan or amended Redevelopment
Plan in areas in need of redevelopment or rehabilitation. For inclusionary
projects in which the low and moderate units are to be offered for
sale, the appropriate set-aside percentage shall be 20 percent; for
projects in which the low and moderate-income units are to be offered
for rent, the appropriate set-aside percentage shall be 15 percent.
This requirement does not create any entitlement for a property owner
or applicant for a zoning amendment, variance, or adoption of a Redevelopment
Plan or amended Redevelopment Plan in areas in need of redevelopment
or rehabilitation, or for approval of any particular proposed project.
(2)
This requirement does not apply to residential expansions, additions,
renovations, replacement, or any other type of residential development
that does not result in a net increase in the number of dwellings
of five or more.
(3)
Furthermore, this section shall not apply to developments containing
four or less dwelling units. All subdivision and site plan approvals
of qualifying residential developments shall be conditioned upon compliance
with the provisions of this section. Where a developer demolishes
existing dwelling units and builds new dwelling units on the same
site, the provisions of this section shall apply only if the net number
of dwelling units is five or more.
(4)
The above standards shall not apply in the Mixed-Use Affordable
Housing Overlay Zone ("MUAHOZ").
[Added 4-23-2019 by Ord.
No. 2019-08]
B.
Phasing. Inclusionary developments shall be subject to the following
schedule, except where an alternate phasing schedule has been incorporated
into a development or redevelopment agreement:
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
Maximum Percentage of Market-Rate Units Completed
|
|---|---|
|
0%
|
25%
|
|
10%
|
25% + 1 Unit
|
|
50%
|
50%
|
|
75%
|
75%
|
|
100%
|
90%
|
C.
Fractional Units. If 15% or 20% of the total number of units in a
development results in a fraction or decimal, the developer shall
be required to provide an additional affordable unit on site.
Example: an 8-unit development requiring an affordable housing
set-aside of 1.6 units is proposed. The developer is required to provide
two on-site affordable units.
[Amended 4-23-2019 by Ord. No. 2019-08]
D.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
E.
Off-site construction. The standards for constructing affordable
units off-site, shall be in accordance with the Borough's recommendations,
provided that at least the same number of affordable units are provided,
not more than 25% are age-restricted, standard phasing requirements
between market rate and affordable Certificates of Occupancy are adhered
to, and the affordable units provided are otherwise consistent with
the terms of the Settlement Agreement.
[Amended 4-23-2019 by Ord. No. 2019-08]
F.
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
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-income
unit.
(2)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
If there is only one affordable unit it must be a low-income unit.
(3)
The Borough Housing Element and Fair Share Plan requires that
13% of all affordable units approved or constructed since July 17,
2008 in the Borough shall be designated as very-low income households
at 30% of the median income, with at least 50% of all very-low income
units being available to families. While this requirement applies
to the entirety of the Borough's affordable housing percentage and
it may not be imposed on each project individually, its application
to each project will be evaluated on a case by case basis and may
be imposed as a requirement of a newly constructed development.
(4)
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% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% 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.
B.
Accessibility Requirements:
(1)
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 Sub-code, N.J.A.C.
5:23-7.
(2)
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 interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
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
(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 Sub-code, N.J.A.C.
5:23-7, or evidence that the Borough of Spring Lake has collected
funds from the developer enough to make 10% 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 Borough's Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]
The funds deposited under paragraph B. above shall
be used by the Borough of Spring Lake 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 Borough.
[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 Sub-code, N.J.A.C. 5:23-7,
and that the cost estimate of such conversion is reasonable, payment
shall be made to the Borough's affordable housing trust fund where
the funds shall be 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 Sub-code, N.J.A.C. 5:23-7.
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 regional income limits established by the New
Jersey Department of Community Affairs (DCA) or other agency as required
by the Court.
(2)
The maximum rent for restricted rental units within each affordable
development and the average rent for restricted low- and moderate-income
units shall be calculated in accordance with UHAC regulations.
(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.
(4)
The maximum sales price of restricted ownership units within
each affordable development shall be calculated in accordance with
UHAC regulations, and each affordable development must achieve an
affordability average shall be calculated in accordance with UHAC
regulations, 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% 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% 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 lower
than the last recorded purchase price.
(10)
The rent of 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
9% 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. 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.
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.
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 Ordinance until the Borough of Spring Lake 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.
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 Ordinance, an amount equal to the difference
between the unit's non-restricted 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 Ordinance 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.
G.
At the time of the first non-exempt sale following a 30-year interval
from the date of the issuance of the initial certificate of occupancy,
the Borough shall have the right of first refusal to purchase a restricted
ownership unit at the maximum restricted price in accordance with
UHAC regulations at N.J.A.C. 5:80-26.5. If the Borough does not exercise
its right to purchase the restricted unit, the unit may be sold at
fair market value and the proceeds retained by the owner, subject
to the owner's repayment of the recapture lien to the Borough as defined
in N.J.A.C. 5:80-26.5.
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% 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.
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% 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.
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% 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).
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 Ordinance until the Borough of Spring Lake 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 Monmouth. 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 Ordinance, 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 Ordinance.
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% of median
income.
(2)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(3)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% 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%
(40% 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% (40% 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% (40% 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.
C.
The applicant shall file documentation sufficient to establish the
existence of the circumstances in B (1) through (5) above with the
Administrative Agent, who shall counsel the household on budgeting.
A.
Affirmative marketing shall be established and maintained in accordance
with the Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.
B.
The affirmative marketing plan shall be a part of the Fair Share
Plan and shall be referenced by ordinance.
C.
The Borough 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.
D.
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 Housing Region 4 and covers the period of deed restriction.
E.
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in Housing Region 4.
F.
The Administrative Agent designated by the Borough shall assure the
affirmative marketing of all affordable units consistent with the
Affirmative Marketing Plan for the municipality.
G.
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.
H.
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
I.
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 Borough.
A.
The position of Municipal Housing Liaison (MHL) for the Borough of
Spring Lake is established by this ordinance. The Borough shall make
the actual appointment of the MHL by means of a resolution.
(1)
The MHL must be either a full-time or part-time employee of
Spring Lake.
(2)
The person appointed as the MHL must be reported to the Court
and thereafter posted on the Borough's website.
(3)
The MHL must meet all the 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 Borough
of Spring Lake, 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 Borough's
Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required;
(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 the Affordable Housing Professionals of New Jersey
(AHPNJ).
B.
The Borough shall designate by resolution of the Borough Committee,
subject to the approval of the Court, one or more Administrative Agents
to administer newly constructed affordable units in accordance with
N.J.A.C. 5:91, N.J.A.C. 5:93 and UHAC.
C.
An Operating Manual shall be provided by the Administrative Agent(s)
and 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, 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 the Affordable Housing Professionals of New Jersey
(AHPNJ).;
(2)
Affirmative Marketing;
(3)
Household Certification;
(4)
Affordability Controls;
(5)
Records retention;
(6)
Resale and re-rental;
(7)
Processing requests from unit owners; and
(8)
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality.
(9)
The Administrative Agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities, hereunder.
E.
The Administrative Agent shall also implement the rehabilitation
program, affordability assistance program, and any other affordable
housing programs required within the Spending Plan and adopted Housing
Plan Element and Fair Share Plan.
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 Borough 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 $10,000.00 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 Borough of Spring Lake 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 Borough 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 Borough,
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 Borough 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.
The Borough shall use revenues collected in the affordable housing
trust fund in accordance with N.J.A.C. 5:93-8.16.
The Borough shall submit a monitoring report to the Court as
set forth in its settlement agreement with Fair Share Housing Center.
A.
The Borough shall submit to the Court a spending plan for the development
fees collected by it prior to the expiration of its Judgment of Compliance.
Plans to spend development fees shall consist of the following information:
(1)
A municipality may use revenues collected from development fees
for any activity approved by the Council for addressing the municipal
fair share. Such activities include, but are not limited to: rehabilitation,
new construction, ECHO housing, purchase of land for low and moderate
income housing, improvement of land to be used for low and moderate
income housing, extensions and/or improvements of roads and infrastructure
to low and moderate income housing sites, assistance designed to render
units to be more affordable and administration of the implementation
of the housing element. The Borough shall also be permitted to use
development fee revenues to attract other funds such as, but not limited
to, available public subsidies and funds from private lending institutions.
(2)
Funds shall not be expended to reimburse municipalities for
past housing activities.
(3)
At least 30% of the revenues collected from development fees
shall be devoted to render units more affordable. Examples of such
activities include, but are not limited to, down payment assistance,
low interest loans, and rental assistance. Development fees collected
to finance a rehabilitation program or a new construction project
shall be exempt from this requirement. This requirement may be waived
in whole or in part when the municipality demonstrates the ability
to address the requirement of affordability assistance from another
source.
(4)
Municipalities may contract with a private or public entity to administer
the implementation of any part of its housing element, including the
requirement for affordability assistance.
(5)
No more than 20% of the revenues collected from development
fees shall be expended on administration, including, but not limited
to, salaries and benefits for municipal employees or consultant fees
necessary to develop or implement: a rehabilitation program; a new
construction program; an RCA; a housing element; and an affirmative
marketing program. Administrative funds may be used for: income qualification
of households; monitoring the turnover of sale and rental units; and
compliance with Council monitoring requirements. Development fees
shall not be used to defray the costs of existing staff. Development
fee administrative costs are calculated and may be expended at the
end of each year or upon receipt of the fees.
