As used in this section, the following terms
shall have the meanings indicated:
ACT
The Fair Housing Act of 1985, c. 222 (N.J.S.A. 52:27D-301
et seq.).
AFFIRMATIVE MARKETING PLAN
A regional marketing strategy prepared by a developer of
affordable units in accordance with the requirements of this section
which is 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 or sponsor
of the affordable housing. It is a continuing program and covers the
period of deed restriction.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:93-7.4.
AFFORDABLE HOUSING AGENCY
The entity designated by the City of Clifton to monitor the
construction and/or rehabilitation of low- and moderate-income housing
units. The Affordable Housing Agency may be the Mayor and Council
itself, a group of people appointed by the Mayor and Council, a member
or members of the City staff, an independent consultant or other entity
under contract to the City of Clifton or any combination of the preceding.
AFFORDABLE HOUSING DOCUMENT
A legal instrument which sets forth the terms, restrictions
and provisions of the Affordable Housing Ordinance which are applicable
to the subject affordable unit(s) and which constitute the restrictive
covenants running with the land with respect to the subject affordable
units.
AFFORDABLE UNIT
A housing unit in the City, the sale or rental of which is
established in accordance with this section and which shall be sold
or rented to a low- or moderate-income household in accordance with
this section.
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.).
ALTERNATIVE LIVING ARRANGEMENT
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas.
ASSESSMENTS
Levies, charges or assessments, both public and private,
including those imposed by a homeowners' association upon the unit
which is part of the homeowners' association.
CERTIFIED HOUSEHOLD
A household determined to be eligible for low- or moderate
income housing by the Affordable Housing Agency after the Affordable
Housing Agency has verified the applicant's gross household income.
Moreover, once certified, any increase or decrease in the gross household
income of the household shall not affect the rights and obligations
of the household as specified in this section. However, any household
which submits false information in support of an application for certification
as a qualified household and which subsequently receives such certification
and either a title to an affordable unit as owner or possession of
an affordable unit as tenant shall be deemed to have committed a substantial
breach of provisions of this section, and the applicable affordable
housing document and any rights of ownership or occupancy of such
unit shall be subject to forfeiture pursuant to the provisions of
this section.
CONVERSION
The conversion of existing commercial, industrial or residential
structures for low- and moderate-income housing purposes.
COUNCIL
The New Jersey Council on Affordable Housing established
under the Act and which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
considerations in the state.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in N.J.A.C. 5:93-8 and in accordance with the applicable provisions
of this section.
EXEMPT SALES
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.
FAIR MARKET VALUE
The unrestricted price of a low- or moderate-income housing
unit if sold at a current real estate market rate.
FIRST MORTGAGE
The most senior mortgage securing a loan for the purchase
or refinancing of a unit.
FIRST MORTGAGEE
The most senior mortgage holder who has loaned funds for
the purchase or refinancing of a unit or the assigns of such most
senior mortgage holder. Such mortgagee must be an institutional lender
or investor, licensed or regulated by a state or federal government,
or an agency thereof.
FORECLOSURE
A termination of all rights of the mortgagor or the mortgagor's
assigns or grantees in a unit covered by a recorded mortgage through
legal processes, or through a deed in lieu of foreclosure which has
been executed prior to a judicially regulated sale.
GROSS HOUSEHOLD INCOME
The total annual income for every household member 18 years
of age or over who will live in the affordable unit and receives income,
including income received by adults on behalf of minor children for
their benefit, and subject to the following:
(a)
Generally, sources of annual income shall be
based on regular income reported to the Internal Revenue Service (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.
(b)
Income includes, but is not limited to, wages,
salaries, tips, commissions, alimony, regular scheduled overtime,
pensions, social security, unemployment compensation, AFDC, verified
child support, disability, net income from business or real estate
and income from assets such as savings, certificates of deposit (CD's),
money market mutual funds, stocks and bonds and imputed income from
non-income-producing assets such as equity in real estate.
(c)
Income from assets that have delayed earnings,
such as individual retirement accounts (IRA's) or annuity programs,
shall not be included in current income until such payments have been
received. However, these assets must be reported and verified.
(d)
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 rental real estate is considered an asset and will
have the imputed interest income on the calculated value of equity
added to income.
(e)
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 inheritance, one-time lottery winnings and
insurance settlements, except for additional income earned from these
additions, and casual, sporadic or irregular gifts and bonuses.
HOUSING REGION
The northeastern region as designed by the New Jersey Council
on Affordable Housing, including the counties of Bergen, Hudson, Passaic
and Sussex in the State of New Jersey.
IMPROVEMENTS
Additions within a unit, including materials, supplies, appliances
or fixtures, which become a permanent part of the unit or are affixed
to the unit.
INDIGENOUS NEED
Substandard (deficient) housing units within the City of
Clifton which are occupied by low- and moderate-income households.
LOW-INCOME HOUSEHOLD
A household whose gross household income is no greater than
50% of the median regional income for households of the same size
within the housing region.
LOW-INCOME UNIT
A housing unit which is affordable to a low-income household
in accordance with the requirements of this section and the Substantive
Rules and Regulations of the New Jersey Council on Affordable Housing.
MARKET RATE UNIT
A housing unit, within an inclusionary development, not restricted
to low- and moderate-income households, that may sell at any price
determined by a willing seller and a willing buyer.
MASTER DEED
The master deed and the declaration of restrictive and protective
covenants for a housing development, including any by-laws and rules
and regulations, and any amendments thereto, which are to be recorded
in the Office of the Register of Passaic County.
MEDIAN REGIONAL INCOME
The most recent "uncapped" schedule of United States Department
of Housing and Urban Development Section 8 income limits for Passaic
County, with adjustments for household size, as published by the New
Jersey Council on Affordable Housing.
MODERATE-INCOME HOUSEHOLD
A household whose gross household income is in excess of
50%, but less than 80%, of the median regional income for households
of the same size within the housing region.
OWNER
The current titleholder of record of a dwelling unit as indicated
on the most recently dated and recorded deed for the unit. For purposes
of the initial sale of a unit, the owner may be the developer. Ownership
of a unit shall be deemed to be acceptable upon ratification of all
the provisions of any affordable housing plans for the development
in which the unit is located.
REHABILITATED UNIT
A previously substandard housing unit which has undergone
significant renovation to meet the housing code standards of the City
of Clifton and the applicable provisions of this section.
REHABILITATION MARKETING PLAN
The marketing plan prepared in accordance with the requirements
of this section by the Affordable Housing Agency for the purpose of
advertising the City of Clifton Rehabilitation Program.
REPAYMENT CLAUSE
The obligation of a seller exercising a repayment option
to pay 95% of the price differential to the City of Clifton at closing
for one unit of affordable housing in the municipal housing plan.
REPAYMENT OPTION
The option of a seller of a low- or moderate-income unit
to sell a unit at fair market value, subject to compliance with the
terms of the repayment clause and other applicable provisions of this
section.
SENIOR CITIZEN HOUSEHOLD
A household in which the primary wage earner is over 62 years
of age, or a household in which there is no primary wage earner and
in which at least one member of the principal household unit is over
62 years of age.
SET ASIDE
The percentage of housing units devoted to low- and moderate-income
households within an inclusionary development.
STATEMENT OF EXEMPTION
A certification by the Affordable Housing Agency declaring
that, in accordance with the applicable provisions of this section,
the resale of an affordable unit is exempt from the requirement that
the resale of the unit must be to a certified low- or moderate-income
household.
SUBSTANDARD HOUSING UNIT
A housing unit with health and safety code violations that
requires the repair or replacement of a major system. A major system
includes a roof, plumbing (including wells), heating, electricity,
sanitary plumbing (including septic systems) and/or a load-bearing
structural system.
TOTAL MONTHLY HOUSING COST
The total of the following monthly payments associated with
the cost of the housing: mortgage payment (principal, interest, private
mortgage insurance); applicable assessments by a homeowners' association;
real estate taxes; and fire, theft and liability insurance. For rental
units, total monthly housing costs also shall include utility costs
consistent with the utility allowance approved by the Department of
Housing and Urban Development (HUD) for New Jersey.