Township of West Amwell, NJ Affordable Housing

Given the Township's fourteen-unit indigenous obligation and the COAH rules which require that a minimum of $10,000 per unit must be allocated, the total cost of a rehabilitation program would be $140,000. The Township may proceed with an application for funding from the Department of Community Affairs. If the funding is not available or forthcoming, the Township will bond for the rehabilitation component. The first year's bonding would need to be 1/3 of the rehabilitation component or approximately $47,000. In each subsequent year, 1/6 of the component would be funded, or approximately $23,000. The Township will supply a letter documenting the municipal bonding capacity. The Township will attempt to recover its funding by way of a housing trust fund.

With respect to the administrative mechanism of the rehabilitation program, West Amwell will either enter into an agreement with a participating government agency or in the alternative hire an outside firm.

A marketing program describing the outreach efforts to implement the program will be submitted. This will probably take the form of a community-wide mailing and publication in the local papers regarding the availability of the program.

Creation of accessory apartments.

West Amwell Township proposes to use accessory apartments as an optional mechanism for satisfying its affordable housing obligation. The COAH rules allow for up to 10 such units to be created. The accessory apartments can also be used to satisfy the Township's four-unit rental obligation. If non-age-restricted units are created, a total of four units would count as eight credits, given the two-for-one crediting. Two additional accessory apartments could be created which would bring the total credits to 10 units (four units at two credits per unit plus two units at one credit per unit equal 10 credits).

However, if the units are not forthcoming, the Township reserves its right to transfer units via a regional contribution agreement, or, in the alternative, bond the necessary monies for the accessory housing option.

Regional contribution agreements. The Fair Housing Act allows municipalities to transfer up to 1/2 of their fair share obligations to another municipality via a regional contribution agreement. The COAH rules require that at least $20,000 be transferred from the sending municipality to a receiving municipality for each unit transferred. Assuming the Township fully utilizes its regional contribution agreement limit, up to 15 units could be sent to a receiving municipality. Given the presumptive minimum cost of $20,000 per unit, the regional contribution agreement program would require at least $300,000 in funding. West Amwell may seek out and negotiate a receiving municipality within its housing region; a number of municipalities that already have project plans which can be funded in part by West Amwell. The money necessary to support the regional contribution agreement would be through development fees and initially by municipal bonding, if necessary.

The Township Clerk is hereby designated as the Housing Officer of the Township of West Amwell. The Township may designate such other persons or entities as it so chooses to undertake any or all of the duties and responsibilities of the Housing Officer, as the Township may see fit. The Housing Officer or other such designated person or entity shall have the following duties and responsibilities:

Implementing the marketing plan as set forth in Ordinance No. 96-2, as amended;

Verify income eligibility of all housing applications;

Verify unit eligibility for affordable housing purposes, including verification that deed restrictions have been recorded and that the housing unit conforms with Council on Affordable Housing guidelines, the Accessory Apartment Handbook and such other programs as may exist from time to time;

Administer the random tenant selection process as required by COAH regulations;

Maintain a list of income-eligible households for occupancy of affordable units; and

(6)

Maintain and update from time to time a list of employers to be contacted, agencies to assist in the marketing provision of affordable housing, and such other duties and responsibilities as the Township Committee, the Council on Affordable Housing, or such other agency having jurisdiction over provision of affordable housing may designate or require.

§ 109-212 Development fees; contribution to affordable housing program.

All housing within the R-1A Zone shall be part of the Township's affordable housing program, and contributions to the Township's affordable housing trust fund shall be made in accordance with the following formula: 1/2 of 1% of the equalized assessed valuation shall be contributed to the fund, or, in the alternative, in such amount as otherwise provided under the terms of any court-approved settlement agreement between the Township and Calton Homes, Inc.

Eligible exactions, ineligible exactions and exemptions. Development fees for the expansion of an existing structure shall be calculated based upon the increase in the equalized assessed value of the improved structure.

Collection of fees. The Housing Authority shall collect fees in accordance with the following:

Fifty percent of the estimated fee on any specific development shall be collected at the time of the issuance of the building permits. Therefore, the remaining portion shall be collected at the time of the issuance of a certificate of occupancy, unless otherwise provided by court order.

Within one month after the issuance of a certificate of occupancy, the final equalized assessed value of the particular development shall be determined by the Tax Assessor of the Township of West Amwell, and the Tax Assessor shall notify the Housing Authority of his/her determination, provided that in the event the Tax Assessor has not or cannot make a determination of the final equalized assessed value within one month after the issuance of a certificate of occupancy, the developer shall pay the 50% remainder of the estimated fee, subject to reconciliation at the time the final equalized assessed value is determined.

If the final equalized assessed value is greater than the estimated equalized assessed value, the developer shall, within 10 business days from receipt of notification from the Housing Authority, pay to the Housing Authority the difference between the development fees required to be paid by the developer and the estimated development fees actually paid by the developer.

The failure of the developer to make timely payments of the aforesaid deficiency shall entitle the Township of West Amwell to file, without notice to the developer, a lien against the subject development. In the event the Township of West Amwell files such lien, the Township of West Amwell may add to the aforesaid amount of the deficiency the amount of reasonable attorney fees to file and discharge such lien, together with any and all costs incurred to file and discharge said lien.

If the final equalized assessed value is less than the estimated assessed value, the Housing Authority, within 10 business days, shall refund the difference between the estimated development fees actually paid by the developer and the development fees required to be paid by the developer.

Housing trust fund. All development fees shall be deposited by the Chief Financial Officer of the Township of West Amwell into a separate designated interest-bearing "housing trust fund."

No money shall be expended from the "housing trust fund" unless the expenditure conforms to a spending plan approved by the Council on Affordable Housing (COAH).

The development fees placed in the "housing trust fund" shall be deemed "dedicated revenues" as such term is defined in N.J.S.A. 40A:4-36; and

In establishing the "Housing Trust Fund," the Housing Authority shall provide whatever express written authorization that may be required by the bank utilized by the Township of West Amwell in order to permit the Council (COAH) to itself direct the disbursement of development fees should it be determined by the Council (COAH) that there is not compliance by the Housing Authority and/or by the Township of West Amwell with the requirements specified in N.J.A.C. 5:93-8.17 of the "Substantive Rules" of the Council (COAH).

Spending plan.

Subject to the approval of the Township Committee, who shall adopt a "Resolution of Approval of Trust Fund Expenditure" to be forwarded to the Chief Financial Officer who shall issue the funds to be expended, the Housing Authority shall use the revenue collected from development fees for any activity approved by the Council (COAH) which addresses the "fair share" housing obligation of the Township of West Amwell, including, but not limited to, the following:

Rehabilitation of the units;

New construction of affordable units;

Regional contribution agreements;

Purchase of land for low- and moderate-income housing;

Improvement of land to be used for low- and moderate-income housing;

Extension and/or improvements of roads and infrastructure to low- and moderate-income housing sites;

(g)

Assistance designed to render housing units to be more affordable; and

(h)

Administration to the implementation of the "Housing Plan Element and Fair Share Plan" of the Township of West Amwell.

At least 30% of the revenues collected from the development fees shall be devoted to render housing units more affordable.

Examples of such activities include, but are not limited to, down payment assistance, low-interest loans, and rental assistance; and

The requirement may be waived in whole or in part when the Township of West Amwell demonstrates to the Council (COAH) the ability to address the requirement of affordability assistance from another source.

No more than 20% of the revenues collected from the development fees shall be expended on administration, including, but not limited to, the salaries and benefits for West Amwell Township employees or consultant fees necessary to develop or implement a rehabilitation program, a new construction program, a regional contribution agreement, a housing element, and/or 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 the monitoring requirements of the Council (COAH). Development fees shall not be used to defray the costs of existing staff.

Monitoring. The Housing Officer shall complete and return to the Council (COAH) all monitoring forms related to the collection of the development fees, the expenditures of the revenues, and the implementation of the spending plan (described in Subsection E above). Additionally, the Housing Officer shall file quarterly financial reports and annual program implementation and auditing reports with the Council (COAH) on forms designed by the Council (COAH).

§ 109-212.1 Uniform affordable housing productions based upon growth share.

[Added 10-19-2005 by Ord. No. 29-2005]

Residential development. Except as otherwise provided below, in those circumstances where a developer develops land for residential proposes and receives no right to increased density or other compensatory bonus, the developer shall reserve 11.11% of said units for low and moderate households provided that the developer secures the right to construct at least eight units. In the event 11.11% of the total units should result in a fraction equaling 0.5% or greater, the affordable housing obligation shall be rounded to the next higher number. Affordable housing shall be as defined under the FHA and COAH's regulations.

Nonresidential development. Except as otherwise provided below, in those circumstances where a developer develops land for nonresidential proposes and receives no right to an increased FAR or other compensatory bonus, the developer shall provide one non-age-restricted affordable unit for every 25 jobs projected to be created by the ordinance. The calculation of the number of jobs and employment opportunities shall be in accordance with Appendix E to N.J.A.C. 5:94-1 et seq., entitled "UCC Use Groups for Projecting and Implementing Nonresidential Components of Growth Share."

For all residential development the applicant shall satisfy its affordable housing production obligation(s) through on-site housing production in connection with the residential project, or one of the mechanisms permitted in COAH's rules. The other mechanisms permitted with COAH's rules, including the purchase of an existing market-rate home at another location in the community and its conversion to an affordable price-restricted home in accordance with COAH's criteria, regulations and policies; the funding of a regional contribution agreement (RCA); participation in gut rehabilitation and/or buy-down/write-down, buy-down/rent-down programs; and/or contributing to the Housing Trust Fund at a rate of 1%. Residential development equalized assessed value shall only be considered with West Amwell Township Committee's advance written permission for those instances when the Committee deems such a mechanism to be in the best interests of the Township. Evidence of the planned method of compliance shall be produced to the Planning or Zoning Board at the time of application filing and shall be a condition of all completeness determinations. Thereafter, evidence of satisfaction of affordable housing compliance shall be an automatic and essential and nonseverable condition of all approvals that must be satisfied prior to the issuance of the project's first building permit.

For all commercial development the applicant may satisfy its affordable housing production obligation(s) through the mechanisms permitted in COAH's rules including, with West Amwell Township Committee's advance written permission on-site housing production in connection with a residential component of the project; the purchase of an existing market-rate home at another location in the community and its conversion to an affordable price-restricted home in accordance with COAH's criteria, regulations and policies; the funding of a regional contribution agreement (RCA); participation in gut rehabilitation and/or buy-down/write-down, buy-down/rent-down programs; and/or contributing to the Housing Trust Fund at a rate of 2% of equalized accessed value for commercial development. Evidence of the planned method of compliance shall be produced to the Planning or Zoning Board at the time of application filing and shall be a condition of all completeness determinations. Thereafter, evidence of satisfaction of affordable housing compliance shall be an automatic condition of all approvals that must be satisfied prior to the issuance of the project's first building permit.

Compliance methods.

Affordable housing units may be provided within single-family detached buildings, duplex buildings or triplex buildings designed to resemble as nearly as possible the single-family homes otherwise being constructed within the development to accommodate the market units. Duplex and triplex buildings containing low and moderate-income housing units only shall be deemed to be permitted uses in the underlying zone when created for the purpose of meeting a growth share obligation on site.

The reconstruction or conversion of any existing dwelling or any existing agricultural structure into a building containing up to three dwellings, where all such dwelling units are deed restricted for affordability to and occupancy by low and moderate income households, shall be deemed to be a permitted use in any zone, provided all other requirements of this chapter are met.

In nonresidential zones, affordable housing units may be constructed within or converted from space above the first floor level in a nonresidential building or may be constructed in a separate building or buildings on the same site as the permitted nonresidential use or development, subject to site plan review by the Planning Board. A mixed-use building or residential building on a nonresidentially zoned site accommodating up to four housing units, where all such housing units are deed restricted for affordability to and occupancy by low- and moderate-income households, shall be deemed to be a permitted use in the NC, HC and LHC Zoning Districts in West Amwell Township, provided all other requirements of this chapter are met, including, but not limited to, the permitted density and impervious coverage limits.

Low- and moderate-income split and compliance with COAH's rules.

ASSISTED LIVING RESIDENCE

The affordable unit(s) to be produced pursuant to Subsections A, B, C, D and E (above) shall be available to a low-income individual or household should only one affordable unit be required. Thereafter, each of the units shall be split evenly between low- and moderate-income individuals and households except in the event of an odd number, in which event the unit shall be a low-income unit. All affordable units shall strictly comply with COAH's rules and policies including, but not limited to, phasing, bedroom distribution, controls on affordability, range of affordability, affirmative marketing, income qualification, etc. It shall be the developer's responsibility, at its cost and expense, to arrange for a COAH- and Township-approved qualification service to ensure full COAH compliance and file such certifications, reports and/or monitoring forms as may be required by COAH or the Court to verify COAH compliance of each affordable unit.

Exemption. Residential inclusionary projects constructed in the affordable housing districts identified in the Township's COAH and/or judicially approved second round Housing Element and Fair Share Plan shall be exempt from the requirements of this section. However, a nonresidential growth share responsibility in accordance with this section shall be attributable to all nonresidential uses constructed in mixed-use and/or nonresidential projects in the Township's existing affordable housing districts. Moreover, all growth share affordable units produced by virtue of this section shall be exempt from the payment of residential affordable housing development fees. However, market-rate residential and nonresidential development fees shall remain due and owing pursuant to the Township's COAH- and Court-approved Development Fee Ordinance, except for exempt residential inclusionary developments.

Right to greater set-aside if compensatory benefit. As to residential developers, nothing herein shall affect the Township's ability to generate more affordable housing than the one for eight standard set forth above in the event that the developer secures a density bonus or other compensatory benefit through zoning or through a use variance. As to nonresidential developers, nothing herein shall affect the Township's ability to generate more affordable housing than the one affordable unit for every 25 job standard set forth above in the event that the developer secures an increased FAR or other compensatory benefit through zoning or through a use variance.

§ 109-212.2 Affordable housing: Third Round obligations.

[Added 6-17-2009 by Ord. No. 18-2009]

This section addresses West Amwell's constitutional obligation to provide for its fair share of low- and moderate-income housing, consistent with the provisions of N.J.A.C. 5:97 et seq. and N.J.A.C. 5:80-26.1 as effective, and pursuant to the New Jersey Fair Housing Act of 1985. This section is also intended to provide assurances that low- and moderate-income units (the "affordable units") are created with controls on affordability over time and that low- and moderate-income people occupy these units. This section shall apply except where inconsistent with applicable law. The West Amwell Township Planning Board adopted the housing element pursuant to the MLUL at N.J.S.A. 40:55D-1 et seq. on November 18, 2008. A fair share plan consistent with this housing element was adopted by the Planning Board on November 18, 2008, and endorsed by the governing body on November 19, 2008. This fair share plan describes the methods by which West Amwell will address its Fair Share obligation as determined by the housing element. This section implements and incorporates that fair share plan and addresses the requirements of N.J.A.C. 5:97 et seq. West Amwell annually files a monitoring report with the Council delineating the status of its certified plan, and this report is available to the public at the Office of the Clerk, 150 Rocktown-Lambertville Road, Lambertville, New Jersey and from the Council on Affordable Housing at P.O. Box 813, Trenton, New Jersey 08625-0813.

Municipal fair share obligation. The fair share obligation in West Amwell consists of a four-unit rehabilitation obligation, a sixteen-unit prior-round obligation and a 52-unit growth share obligation that represents one affordable unit for every four market rate residential units receiving a certificate of occupancy subsequent to January 1, 2004, plus one affordable housing unit for every 16 jobs created through the expansion or creation of nonresidential development in accordance with the schedule determined by the New Jersey Council on Affordable Housing (COAH).

Definitions. "Definitions and rules of general applicability" is hereby created/amended and defines the following terms:

ADMINISTRATIVE AGENT

The entity responsible for administering the affordability controls of this section with respect to specific restricted units, as designated pursuant to N.J.A.C. 5:80-26.14.

AFFORDABILITY AVERAGE

An average of the percentage of median income at which restricted units in an affordable development are affordable to low- and moderate-income households.

AFFORDABLE

In the case of an ownership unit, that the sales price for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6 and, in the case of a rental unit, that the rent for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12.

AFFORDABLE DEVELOPMENT

A housing development all or a portion of which consists of restricted units.

AGENCY

The New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.) and in, but not of, the DCA.

AGE-RESTRICTED UNIT

A housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population where the head of the household is a minimum age of either 62 years, or 55 years and meets the provisions of the 42 U.S.C. §§ 3601 et seq., except that due to death, a remaining spouse of less than 55 years of age shall be permitted to continue to reside.

A facility licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor and offer, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.

BALANCED HOUSING

The Neighborhood Preservation Balanced Housing Program of the DCA as set forth at N.J.S.A. 52:27D-320 and N.J.A.C. 5:43.

CERTIFIED HOUSEHOLD

A household that has been certified by an administrative agent as a low-income household or moderate-income household.

COAH

The Council on Affordable Housing in, but not of, the DCA, established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).

DCA

The State of New Jersey Department of Community Affairs.

FAIR SHARE ROUND

Any one of three periods in time during which the Council established municipal obligations to provide affordable housing, and the first round was from 1987 to 1993 and the second period was from 1993 to 1997 and the third is for 1999 to 2018.

HAS

The Housing Affordability Service, formerly known as the "Affordable Housing Management Service," at the New Jersey Housing and Mortgage Finance Agency.

LOW-INCOME HOUSEHOLD

A household with a total gross annual household income equal to 50% or less of the median income.

LOW-INCOME UNIT

A restricted unit that is affordable to a low-income household.

MEDIAN INCOME

The median income by household size for an applicable county, as adopted annually by COAH.

MODERATE-INCOME HOUSEHOLD

A household with a total gross annual household income in excess of 50% but less than 80% of the median income.

MODERATE-INCOME UNIT

A restricted unit that is affordable to a moderate-income household.

MONI

The Agency's Market Oriented Neighborhood Investment Program, as it may be authorized from time to time by the Agency.

95/5 UNIT

A restricted ownership unit that is part of a housing element that received substantive certification from COAH pursuant to N.J.A.C. 5:93 before October 1, 2001.

NONEXEMPT SALE

Any sale or transfer of ownership other than the transfer of ownership between husband and wife; the transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or judicial separation, but not including sales to third parties; the transfer of ownership between family members as a result of inheritance; the transfer of ownership through an executor's deed to a class A beneficiary; and the transfer of ownership by court order.

RANDOM SELECTION PROCESS

A process by which currently income-eligible households are selected for placement in affordable housing units such that no preference is given to one applicant over another except for purposes of matching household income and size with an appropriately priced and sized affordable unit (e.g., by lottery).

REGIONAL ASSET LIMIT

The maximum housing value affordable to a four-person household with an income at or above 80% of the regional median as defined by the Council's annually adopted income limits.

RENT

The gross monthly cost of a rental unit to the tenant, including the rent paid to the landlord, as well as an allowance for tenant-paid utilities computed in accordance with allowances published by DCA for its Section 8 program. In assisted living residences, rent does not include charges for food and services.

RESTRICTED UNIT

A dwelling unit, whether a rental unit or ownership unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1, but does not include a market-rate unit financed under UHORP or MONI.

UHORP

The Agency's Urban Homeownership Recovery Program.

Affordable housing programs.

West Amwell has determined that it will use the following programs to satisfy its affordable housing obligation from the prior round and growth share: rehabilitation program, shared living bedrooms and accessory apartments.

The following general guidelines apply to all developments that contain low-and moderate-income units, and any future developments that may occur.

Rehabilitation. The rehabilitation program:

West Amwell's rehabilitation program is designed to renovate deficient housing units occupied by low- and moderate-income households and after rehabilitation, these units will comply with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.

West Amwell will designate an experienced administrative agent as the administrator of the rehabilitation program.

Both renter-occupied and owner-occupied units are eligible for rehabilitation funds.

Both renter-occupied and owner-occupied units must remain affordable to low- and moderate-income households for a period of 10 years. For owner-occupied units, this control period will be enforced with a lien, and for renter-occupied units, the control period will be enforced with a deed restriction.

West Amwell will dedicate a minimum of $10,000 per unit for units rehabilitated through this program.

(6)

West Amwell will create a rehabilitation manual for this rehabilitation program, which will be available for inspection at the Office of the Clerk, 150 Rocktown-Lambertville Road, Lambertville, New Jersey.

Phasing schedule for zoning.

West Amwell has not adopted inclusionary zoning.

In inclusionary zones, including zones subject to a growth share ordinance, the following schedule shall be followed:

	Percentage of Market Rate Units Completed	Minimum Percentage of Low- and Moderate-Income Units Completed
	25%	0%
	25% + 1	10%
	50%	50%
	75%	75%
	90%	100%

New construction.

Low/mod split and bedroom distribution of affordable housing units:

The fair share obligation shall be divided equally between low- and moderate-income households.

In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units.

Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:

[1]

The combined number of efficiency and one-bedroom units is 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;

[3]

At least 20% of all low- and moderate-income units are three-bedroom units; and

[4]

The remainder may be allocated at the discretion of the developer.

[5]

Age-restricted low- and moderate-income units may utilize a modified bedroom distribution, and at a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the affordable development.

Accessible townhouse units.

The first floor of all townhouse dwelling units and of all other multistory dwelling units for which credit is sought pursuant to P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.), on or after October 1, 2006, the effective date of P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.), and for which an application for a construction permit has not been declared complete by the enforcing agency pursuant to P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and which were included in a prior-round fair share plan or in a third-round fair share plan and for which credit continues to be sought shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7;

To receive Council credit for a townhouse unit or other multistory dwelling unit that is attached to at least one other dwelling unit, West Amwell shall ensure that:

[1]

Townhouses or other multistory dwelling units that are attached to at least one other dwelling unit for which credit is sought for low- or moderate-income housing 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 accessible route of travel;

[d]

An interior accessible route of travel shall not be required between stories;

[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 Subcode, N.J.A.C. 5:23-7, or evidence that West Amwell has collected funds from the development sufficient to make 10% of the adaptable entrances in the development accessible.

[2]

In the case of a unit or units which are 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.

The builder of the unit or units shall deposit funds, sufficient to adapt 10% of the affordable units in the projects which have not been constructed with accessible entrances, with West Amwell, for deposit into the municipal affordable housing trust fund;

The funds under Subsection F(2)(c) above shall be available for the use of West Amwell for the 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;

The developer of the affordable project subject to P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) shall submit the design with a cost estimate for conversion to West Amwell; and

Once West Amwell has determined that the plans to adapt the entrances of the townhouse or other multistory unit meet the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, the West Amwell Chief Financial Officer shall ensure that the funds are deposited into that fund.

(g)

Full compliance with this section shall not be required where an entity can demonstrate that it is site impracticable to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.

Maximum rents and sales prices.

West Amwell hereby establishes that the maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60% of median income, and the average rent for low- and moderate-income units shall be affordable to households earning no more than 52% of median income.

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.

The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70% of median income and each affordable development must achieve an affordability average of 55% for restricted ownership units, and in achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type.

At least 13% of the affordable housing in West Amwell must be affordable to households at 30% of median income.

Utilities.

Affordable units shall utilize the same type of heating source as market units within the affordable development.

Those 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.

Occupancy standards. Occupancy standards for affordable housing units are pursuant to N.J.A.C. 5:80-26.4:

In determining the initial rents and initial sales prices for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be used:

A studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one-and-one-half person household;

A two-bedroom unit shall be affordable to a three-person household;

A three-bedroom unit shall be affordable to a four-and-one-half person household; and

A four-bedroom unit shall be affordable to a six-person household.

For assisted living facilities, the following standards shall be used:

A studio shall be affordable to a one-person household;

A one-bedroom unit shall be affordable to a one-and-one-half person household;

A two-bedroom unit shall be affordable to a two-person household or to two one-person households.

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:

Provide an occupant for each unit bedroom;

Provide children of different sex with separate bedrooms; and

Prevent more than two persons from occupying a single bedroom.

Control periods for ownership units and enforcement mechanisms. Control periods for ownership units are pursuant to N.J.A.C. 5:80-26.5, and each restricted ownership unit shall remain subject to the requirements of this section until West Amwell elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, 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 for at least 30 years.

At the time of the first sale of the unit, the purchaser shall execute and deliver to the affirmative marketing pan a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first nonexempt sale after the unit's release from the requirements of this section, an amount equal to the difference between the unit's nonrestricted fair market value and its restricted price, and the recapture note shall be secured by a recapture lien evidenced by a duly recorded mortgage on the unit.

All conveyances of restricted ownership units shall be made by deeds and restrictive covenants pursuant to N.J.A.C. 5:80-26.1, and each purchaser of a 95/5 unit, in addition, shall execute a note and mortgage, incorporated herein by reference.

The affordability controls set forth in this section shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.

A restricted ownership unit shall be required to obtain a continuing certificate of occupancy or a certified statement from the Municipal Building Inspector 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).

Price restrictions for ownership units, homeowners' association fees, and resale prices. Price restrictions for ownership units are pursuant to N.J.A.C. 5:80-26.1, including;

The initial purchase price for a restricted ownership unit shall be approved by the administrative agent. The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying costs 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 homeowners' association fees do not exceed 28% of the eligible monthly income of an appropriate household size as determined under N.J.A.C. 5:80-26.4; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3.

The administrative agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.

The master deeds of affordable developments shall provide no distinction between the condominium or homeowners' association fees and special assessments paid by low- and moderate-income purchasers and those paid by market purchasers, although condominium units subject to a municipal ordinance adopted before October 1, 2001, which provides for condominium or homeowners' association fees and/or assessments different from those provided for in this subsection, shall have such fees and assessments governed by said ordinance.

The owners of 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 that add an additional bathroom.

Buyer income eligibility.

Buyer income eligibility for ownership units is pursuant to N.J.A.C. 5:80-26.1, 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% of median income.

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 unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowners' association fees, as applicable) does not exceed 33% of the household's eligible monthly income.

Control period for rental units. Each restricted rental unit shall remain subject to the requirements of this section until West Amwell elects to release the unit from such requirements; however, prior to such a municipal election, a restricted rental unit must remain subject to the requirements of this section for a period of at least 10 years.

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, and a copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.

A restricted rental unit shall remain subject to the affordability controls of this section, despite the occurrence of any of the following events:

Sublease or assignment of the lease of the unit;

Sale or other voluntary transfer of the ownership of the unit; or

The entry and enforcement of any judgment of foreclosure.

Price restrictions for rental units and rent increases; leases. The initial rent for a restricted rental unit shall be approved by the administrative agent and shall be calculated so as not to exceed 30% of the eligible monthly income of the appropriate household size as determined under N.J.A.C. 5:80-26.4; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3.

Rents may be increased annually based on the Housing Consumer Price Index for the United States, as published annually by COAH. Rents may not be increased more than once a year.

A written lease is required for all restricted rental units, except for units in an assisted living residence, and tenants are responsible for security deposits and the full amount of the rent as stated on the lease.

No additional fees or charges may be added to the approved rent (except, in the case of units in an assisted living residence, for the customary charges for food and services) without the express written approval of the administrative agent, and application fees (including the charge for any credit check) may not exceed 5% of the monthly rental of the applicable restricted unit and shall be payable to the administrative agent to be applied to the costs of administering the controls in this section as applicable to the unit.

Tenant income eligibility pursuant to N.J.A.C. 5:80-26.1. Pursuant to N.J.A.C. 5:80-26.13, tenant income eligibility shall be determined as follows:

Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income. Moderate-income rental units shall be reserved for households with a gross household income less than 80% of median income. Very-low-income rental units shall be reserved for households with a gross household income equal to or less than 30% of median income.

The administrative agent shall certify a household as eligible for a restricted rental unit when the household is a 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; provided, however, that this limit may be exceeded if one or more of the following circumstances exists:

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;

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;

The household is currently in substandard or overcrowded living conditions;

The household documents the existence of assets, with which the household proposes to supplement the rent payments; or

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.

The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsection N(2)(b) above with the administrative agent, who shall counsel the household on budgeting.

Municipal Housing Liaison.

COAH requires West Amwell to appoint a specific municipal employee to serve as a Municipal Housing Liaison responsible for administering its affordable housing program, including affordability controls and the affirmative marketing plan, and, where applicable, supervising any contracting administrative agent. West Amwell adopted an ordinance creating the position of Municipal Housing Liaison on June 7, 2006. West Amwell adopted a resolution on February 7, 2007, appointing a Municipal Housing Liaison. Subject to the approval of COAH, the Municipal Housing Liaison shall be appointed by the governing body and may be a full- or part-time municipal employee.

The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for West Amwell, including the following responsibilities which may not be contracted out, exclusive of Subsection O(2)(f) which may be contracted out:

Serving as West Amwell's primary point of contact for all inquiries from the State, affordable housing providers, administrative agents, and interested households;

Monitoring the status of all restricted units in West Amwell's fair share plan;

Compiling, verifying, and submitting annual reports as required by COAH;

Coordinating meetings with affordable housing providers and administrative agents, as applicable;

Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH;

If applicable, serving as the administrative agent for some or all of the restricted units in West Amwell as described in Subsection P below.

Subject to approval by COAH, West Amwell 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 West Amwell, except for those responsibilities which may not be contracted out as described above. West Amwell will contract with another entity to administer all of the affordable housing program, including the affordability controls and Affirmative Marketing Plan. The Municipal Housing Liaison shall supervise the contracting administrative agent.

The following administrative powers and duties are assigned to the Municipal Housing Liaison:

Providing annual reports to COAH as required.

Administrative agent for West Amwell's affordable housing units. The affordability controls set forth in this section shall be administered and enforced by the administrative agent. The primary responsibility of the administrative agent shall be to ensure that the restricted units under administration are sold or rented, as applicable, only to low- and moderate-income households.

The administrative agent shall create and shall publish in plain English, and in such other languages as may be appropriate to serving its client base, a written operating manual, as approved by COAH, setting forth procedures for administering such affordability controls, including procedures for long-term control of restricted units; for enforcing the covenants of N.J.A.C. 5:80-26.18 and for releasing restricted units promptly at the conclusion of applicable control periods. The administrative agent shall have authority to take all actions necessary and appropriate to carrying out its responsibilities hereunder. The operating manual shall have a separate and distinct chapter or section setting forth the process for identifying applicant households seeking certification to restricted units, for reviewing applicant household eligibility, and for certifying applicant households in accordance with the household certification and referral requirements set forth in N.J.A.C. 5:80-26.16.

The administrative agent shall establish and maintain a ready database of applicant households as a referral source for certifications to restricted units, and shall establish written procedures to ensure that selection among applicant households be via the database, and in accordance with a uniformly applied random selection process and all applicable state and federal laws relating to the confidentiality of applicant records.

The municipality in which restricted units are located shall select one or more administrative agents for those units. A municipality itself (through a designated municipal employee, department, board, agency or committee) may elect to serve as the administrative agent for some or all restricted units in the municipality, or the municipality may select HAS or an experienced private entity approved by the Division, the Agency or COAH to serve as administrative agent for some or all restricted units in the municipality. The foregoing approval by COAH or the Division is to be based on the private entity's demonstration of the ability to provide a continuing administrative responsibility for the length of the control period for the restricted units.

The administrative agent shall have the authority to discharge and release any or all instruments, as set forth in the appendixes of this section,[1] filed of record to establish affordability controls.

[1]

Editor's Note: Appendixes are on file in the Township offices.

Affirmative marketing. 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 or sponsor 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 the COAH housing region in which the municipality is located and covers the period of deed restriction. West Amwell shall provide a regional preference for people who live and/or work in Region 3: Middlesex, Somerset and Hunterdon Counties.

The administrative agent shall assure the affirmative marketing of affordable units.

If the municipality does not designate a municipal staff person, it shall contract with other experienced administrative agents approved by COAH to administer the affirmative marketing plan. Where a municipality contracts with another administrative agent to administer the affirmative marketing plan, the municipality shall appoint a municipal housing liaison who shall supervise the contracting administrative agent. In addition, where the contracting administrative agent is not responsible for the entire affirmative marketing plan, the municipality shall outline who or what municipal agent is responsible for the remaining portion of the affirmative marketing plan. The municipality has the ultimate responsibility for the proper administration of the affirmative marketing program, including initial sales and rentals and resales and rerentals.

In implementing the affirmative marketing plan, administrative agents shall designate an experienced staff person approved by COAH to 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.

The affirmative marketing plan shall describe the media to be used in advertising and publicizing the availability of housing. In developing the plan, the administrative agent shall consider the use of language translations.

The affirmative marketing process for available affordable units shall begin at least four months prior to expected occupancy.

(6)

Applications for affordable housing shall be available in several locations, including, at a minimum, the county administrative building and/or the county library for each county within the housing region; the municipal administrative building(s) and the municipal library in the municipality in which the units are located; and the developer's sales office. Applications shall be mailed to prospective applicants upon request.

(7)

COAH shall review and assess the effectiveness of West Amwell's affirmative marketing program.

Household certification and referral; related project information. No household may be referred to a restricted unit, or may receive a commitment with respect to a restricted unit, unless that household has received a signed and dated certification and has executed a certificate.

The sources of income considered by the administrative agent shall be the types of regular income reported to the Internal Revenue Service and which can be used for mortgage loan approval.

If the applicant household owns a primary residence with no mortgage on the property valued at or above the regional asset limit as published annually by COAH, a certificate of eligibility shall be denied unless the applicant's existing monthly housing costs exceed 38% of the household's eligible monthly income.

The administrative agent shall employ a random selection process when referring households for certification to affordable units.

Enforcement of affordable housing regulations.

By submitting to the jurisdiction of COAH, a municipality shall be deemed to have delegated to its administrative agent the day-to-day responsibility for implementing practices and procedures designed to ensure effective compliance with the controls set forth in this section. The municipality, however, shall retain the ultimate responsibility for ensuring effective compliance with this section.

Administrative agent practices and procedures shall include, but shall not necessarily be limited to, the following:

Securing from all developers and sponsors of restricted units, at the earliest point of contact in the processing of the project or development, written acknowldgement of the requirement that no restricted unit can be offered, or in any other way committed, to any person, other than a household duly certified to the unit by the administrative agent.

Requiring that all certified applicants for restricted units execute a certificate substantially in the form, as applicable, of either the ownership or rental certificates.

The posting annually in all rental properties, including two-family homes, of a notice as to the maximum permitted rent, together with the telephone number of the administrative agent where complaints of excess rent can be made.

If the unit is owner-occupied, that the unit may be resold only to a household that has been approved in advance and in writing by the administrative agent.

That no sale of the unit shall be lawful, unless approved in advance and in writing by the administrative agent, and that no sale shall be for a consideration greater than regulated maximum permitted resale price, as determined by the administrative agent.