Prior to the sale, resale, rental or rerental
of a low- or moderate-income unit, the Agency shall determine the
maximum sales price or rental charge that may be charged for that
size unit in each income category in accordance with the following:
A. Estimated maximum initial sales prices for units.
(1) As part of the preliminary site plan application submittal to the Planning Board by a developer for a development containing lower-income units, the developer shall also submit to the Agency information demonstrating the mortgage financing generally available to lower-income homebuyers and the developer's calculations as to the estimated maximum sales prices in accordance with Subsection
B below.
(2) The Agency shall review the developer's calculations
and shall determine the estimated maximum sales prices for applicable-sized
units in each income category in accordance with the financial terms
determined to be generally available and shall notify the Planning
Board and the developer of said estimated maximum sales prices prior
to final approval by the Planning Board. The delay of the Agency shall
not postpone or delay the Planning Board's decision as to the proposed
development.
B. Actual maximum initial sales prices for units.
(1) A base sales price shall be calculated such that the sum of the monthly payments for principal, interest, taxes, fire, theft and liability insurance and homeowner association fees, if any, shall not exceed 28% of the low- or moderate-income ceilings determined in accordance with §
195-10.
(2) In order to assure that low- and moderate-income units
are affordable by households whose income is less than the low- or
moderate-income ceilings, the maximum sales price that may be offered
for each such unit shall not exceed 90% of the base price for that
size unit in each income category.
(3) At least a minimum of 30 days prior to the developer's
anticipated need of building permits, with the exception of permits
for model units, the developer shall provide the Agency with information
demonstrating the financing that is generally available locally to
lower-income homebuyers and the developer's calculations as to maximum
initial sales prices. The interest rate used by the developer in calculating
the maximum sales price shall be the rate that the Agency determines
to be generally available locally for a ninety-percent, thirty-year,
fixed-rate mortgage.
(4) If the developer proposes to provide financing through
an adjustable rate mortgage (ARM) or establishes that ARM's are generally
available locally to lower-income purchasers, then the interest rate
to be used for calculating the maximum sales price shall be the greater
of either the current index of one-year Treasury Bills plus two points
or two points less than the best available fixed rate mortgage.
(5) The Agency shall use this information to determine
the maximum initial sales prices for the different-sized units in
each income category, as described above. The Agency shall certify
the actual maximum initial sales prices to the Planning Board, the
developer and the Construction Official in charge of issuing building
permits within 30 days of submission of complete information by the
developer. No building permits, except for complete models, including
models of non-lower-income units, foundation permits for units other
than models, permits for underground utilities and site development
work shall be issued until the maximum initial sales prices have been
certified by the Agency. These sales prices shall remain in effect
for a period of one year. However, the developer may request a modification
of the maximum sales prices at any time by applying to the Affordable
Housing Agency for recalculation of these prices based on changes
in any of the factors used to calculate the prices.
C. Maximum resale prices.
[Amended 5-21-2007 by Ord. No. 07-10]
(1) Prior to the resale of any low- or moderate-income
unit, the Agency shall determine the maximum sales price for the unit.
The price of low- and moderate-income units may be increased annually
based upon the percentage increase in the housing consumer price index
for the United States. This increase shall not exceed 9% in any one
year. The Agency is hereby authorized to use the COAH/HAS Sale Price
Calculator, as authorized and established by the New Jersey Department
of Community Affairs, Council on Affordable Housing, in determining
the maximum resale price for any given affordable housing unit.
(2) Low- or moderate-income affordable housing units.
(a)
The maximum resale price for low- or moderate-income
affordable housing units which have been designated as such as of
the effective date of this subsection shall be set pursuant to the
maximum resale prices established as of December 31, 2005, as follows:
|
Unit Size/Low-Moderate
|
Maximum Resale Price
|
---|
|
Two-bedroom low-income unit
|
$110,238
|
|
Three-bedroom low-income unit
|
$130,494
|
|
Two-bedroom moderate-income unit
|
$130,746
|
|
Three-bedroom moderate-income unit
|
$157,930
|
(b)
These prices shall be used for purposes of determining
the resale price using the COAH/HAS Sale Price Calculator.
(3) Any low- or moderate-income affordable housing units
constructed and sold after the effective date of this subsection shall
have resale prices set and determined by using the COAH/HAS Sale Price
Calculator, based upon the actual sales prices and dates of sale.
D. Maximum rental charges for units.
(1) A base rent shall be calculated such that the sum of the monthly rental payment, including utilities, does not exceed 30% of the low- or moderate-income ceilings determined in accordance with §
195-10.
(2) If the cost of all utilities is not included in the
monthly rental charge, the Agency shall calculate for each unit size
an estimated monthly charge for those utilities not included in the
rent. These charges shall be estimated utilizing estimating techniques
acceptable in the industry. This estimated charge shall be subtracted
from the maximum gross rent to determine the maximum rental charge
that may be charged for each low- and moderate-income unit.
(3) In order to assure that low- and moderate-income units
are affordable by households whose income is less than the low- or
moderate-income ceilings, the maximum gross rent that may be charged
for any such unit shall not exceed 90% of the base rent for that size
unit in each income category. Notwithstanding these requirements,
landlords shall have the option to set rents equal to 30% of the tenant's
gross household income, with the requirement that the average of all
rents charged for the same-size unit shall not exceed 90% of the base
rent charge for such size unit. The cost of any additional administrative
charges incurred by the Agency in the monitoring of such rental distribution
shall be the sole responsibility of such landlord.
(4) The developer shall calculate the maximum rental charge
for applicable-sized units in each income category and shall submit
said calculations to the Agency for review. The Agency shall determine,
based upon its review, maximum rental charges. These rental charges
shall remain in effect for a period of at least one year, except that
the developer may request a modification of these charges by applying
to the Agency for recalculation of the prices based on changes in
any of the factors used to calculate the rental charges.
(5) To the extent feasible, these criteria and procedures
should ensure that the new rental charges are consistent with the
affordability standards set forth in this Part 1.
(6) The Agency shall establish appropriate criteria and
procedures for allowing periodic rental charge increases.
E. Relationship between household size and unit size.
(1) For the purpose of determining maximum sales prices
and rental charges pursuant to this Part 1, the ceiling incomes of
the following household sizes shall be used to determine the maximum
prices for each of the following unit sizes:
|
Bedroom
|
Occupancy
(persons)
|
---|
|
Efficiency
|
1
|
|
1
|
2
|
|
2
|
3
|
|
3
|
5
|
|
4
|
6
|
(2) Any room other than a bathroom, kitchen, dining area
or living room and which was initially designed for regular sleeping
by regular members of the household shall be considered a bedroom
for purposes of calculating the maximum initial sales prices. No alterations
or improvements by owners after initial occupancy shall increase the
number of bedrooms unless the total area of habitable living space
is increased by an amount at least equal to the new area being claimed
as a new bedroom.
The Township of North Brunswick shall report
quarterly in writing to the Civic League of Greater New Brunswick
or its designee, commencing with December 31, 1985, providing the
following information with regard to any sites requiring set asides
of low- and moderate-income housing:
A. Itemization of all proposed developments which are subject to the provisions of this Part
1 and for which applications have been filed with or approved by the Planning Board. Information shall be provided on the location of the proposed site, the number of low- or moderate-income units, the number of market units, calculation of maximum sales prices per §
195-11, the distribution of lower-income units by bedroom number, the phasing schedule for completion of lower-income units in relation to completion of market units, the name of the developer and dates that Planning Board actions were taken or are anticipated to be taken.
B. A copy of the affirmative marketing plans provided
for each development, together with copies of advertisements and a
list of newspapers and community or governmental organizations or
agencies which received the advertisements.