[HISTORY: Adopted by the Township Committee of the Township of Readington 9-6-1988
by Ord. No. 248-88. Amendments noted where applicable.]
GENERAL REFERENCES
Affordable housing — See Ch. 137.
This ordinance may be cited as the "Housing Rehabilitation Program of
the Township of Readington" ("program").
Whereas the deteriorating quality of the low- to moderate-income housing
located within the borders has created a substantial hazard to the public
health and welfare, safety and the quality of life, it is the opinion of the
Township Committee that an ordinance should be adopted detailing a comprehensive
plan to effectuate a community developed housing rehabilitation program in
the Township of Readington. Included in such a plan are the guidelines for
eligibility, financing options, funding sources and program administration
procedures.
As used in this ordinance, the following terms shall have the meanings
indicated:
Consists of a real estate appraisal completed by a New Jersey licensed
real estate appraiser giving value to the property after rehabilitative construction
would be completed.
Consists of a real estate appraisal completed by a New Jersey licensed
real estate appraiser giving value to the property prior to any rehabilitative
construction.
A loan made to a qualified, eligible family unit, upon which no interest
is charged nor repayments made until the loan is called for repayment in full
under conditions triggering the same as shall be promulgated by the Housing
Rehabilitation Committee.
A family unit where the head of the family unit is 62 years of age
or older.
A sum of money given without obligation by the Housing Rehabilitation
Program Seed Fund and, subsequently, the Housing Rehabilitation Revolving
Loan Fund to eligible elderly household family units and low-income family
units to be used only for the specified rehabilitation project approved by
the Housing Rehabilitation Committee.
The fund set up to provide initial financing for operations, loans
and grants of the program.
The successor and eventual replacement fund to the Housing Rehabilitation
Program Seed Fund to provide moneys for program operations, loans and grants.
The median family income adjusted for family size, as determined
by the United States Department of Housing and Urban Development, which is
published by the New Jersey Housing and Mortgage Finance Agency.
A sum of money borrowed from and to be repaid to the Housing Rehabilitation
Program Fund with interest and principal repayment terms derived from a range
of 1% to 3% and one to 15 years, depending on the type of family unit applying
and other such criteria as may be adopted by the Housing Rehabilitation Committee
to be used only for the specified rehabilitation project approved by the Housing
Rehabilitation Committee.
A family unit whose gross income is 50% or less than the Hunterdon
County median income.
The Township of Readington's Housing Rehabilitation Program.
A family unit whose gross income is in the range between and including
51% to 80% of the Hunterdon County median income.
Any resident of the Township of Readington owning a one- or two-family
residence.
The target area for the Housing Rehabilitation Program is Readington
Township.
A.
Eligible family units for any kind of assistance under
the program are as follows:
(1)
A family unit qualifying as a low-income family unit
being the owner-occupant of a one-family or two-family dwelling within the
target area.
(2)
A family unit qualifying as a moderate-income family
unit being the owner-occupant of a one-family or two-family dwelling within
the target area.
(3)
A family unit qualifying as an elderly household being
the owner-occupant of a one-family or two-family dwelling within the target
area.
A.
Both grants and loans are available under the program
to finance the physical construction of approved family unit rehabilitation
projects. The maximum amounts of such loans and grants differentiated for
the various rehabilitation projects and family units are attached hereto and
made a part hereof as Appendix B.[1]
[1]
Editor's Note: Appendix B is on file in the office of the Township
Clerk, where it may be examined during normal business hours.
B.
All grants and/or loans will be appropriated and approved by the Housing Rehabilitation Committee, subject to appropriations as made by the Readington Township Committee as per § A282-7 herein. In the event that one category of improvement will cost more than maximum allowable loan or grant amount found in Appendix B, the Housing Rehabilitation Committee may increase the approved amount of individual improvement so long as it does not exceed $15,000.
C.
In the event that the maximum amount of $15,000 per family unit must be exceeded to meet the housing rehabilitation standards, as denoted in § A282-9, the Housing Rehabilitation Committee will apply its adopted criteria to determine if the amount of funds needed will exceed 75% of the replacement cost of the entire property.
(1)
If the amount exceeds 75% of the replacement cost, the
application will not be approved but may be modified to gain subsequent approval.
(2)
If the amount does not exceed 75% of the replacement
cost, the application will be approved.
(3)
The items necessary to make the above comparison are
an as-is appraisal of the property and an after-value appraisal.
D.
All applications for a grant and/or a loan must be submitted
to the Housing Rehabilitation Committee, and those applications shall be processed
chronologically in order of submission.
E.
The Housing Rehabilitation Committee, in the event that an eligible family unit is faced with an emergency problem which is threatening the health and safety of that eligible family unit, can make an immediate emergency grant to said eligible family unit as set forth in § A282-5, provided that family unit meets any conditions properly promulgated by the Housing Rehabilitation Committee. The Housing Rehabilitation Committee shall adopt criteria to indicate whether or not a family unit is facing an emergency problem.
F.
The Housing Rehabilitation Committee shall promulgate
whatever other conditions and requirements that in its discretion are felt
as being necessary to approve and provide loans and/or grants to eligible
family units.
G.
The Housing Rehabilitation Committee shall in its discretion
approve loans to certain family units with a deferred repayment schedule.
The Housing Rehabilitation Committee shall adopt criteria to determine which
family units would be qualified for deferred repayment loans and promulgate
requirements and conditions especially suited for deferred repayment loans.
H.
The Housing Rehabilitation Committee may approve a combination
grant/loan package for eligible elderly household or low-income family units
whose individual rehabilitation project's financial need exceeds the
maximum allowable grant of $7,500, making the total for the grant/loan package
$15,000. All other loan options will also be extended to such qualified instances,
provided that the additional conditions required for the other loan options
can be met.
I.
The Housing Rehabilitation Committee shall establish,
in conformity with this ordinance, the Housing Rehabilitation Revolving Loan
Fund. The Housing Rehabilitation Revolving Loan Fund shall be funded by any
and all repayments of loans made from the Housing Rehabilitation Program Seed
Fund. Once the Housing Rehabilitation Revolving Loan Fund is sufficiently
funded, it will be used to provide moneys for future rehabilitation projects
approved under this ordinance; eventually completely replacing the housing
Rehabilitation Program Seed Fund.
J.
All loans, grants and loan/grant packages made under
this ordinance shall comply with all applicable federal, state and local laws
as well as observing the requirements of the New Jersey Council on Affordable
Housing.
A.
The Readington Township Housing Rehabilitation Program
and the Housing Rehabilitation Program Seed Fund shall be funded, although
not limited to, by one or more of the following:
(1)
Readington Township Housing Trust Fund.
(2)
New Jersey Department of Community Neighborhood Preservation
Balanced Housing Program.
(3)
United States Department of Housing and Urban Development
Small Cities Community Development Block Grant Program.
(4)
Moneys appropriated by the Readington Township Committee
in its budget.
(5)
Bonding ordinance enacted by the Readington Township
Committee.
B.
The Township Committee shall make such modifications
as is necessary to this ordinance to comply with any regulations to qualify
the program to receive funding from any state or federal source.
Any improvement will qualify under the program as it is necessary to restore or bring up to the applicable property rehabilitation standards, as denoted in § A282-9, for any one- or two-family residence of an eligible family unit.
A.
Every eligible family unit that applies for and qualifies
for financial assistance under this program shall comply with the following
property rehabilitation standards, codes and ordinances:
(2)
Codes and ordinances.
(a)
The BOCA Existing Structures Code of 1987.
(b)
Standards for the Construction of Individual Subsurface
Sewage Disposal Systems, as promulgated by the New Jersey Department of Environmental
Protection, for a property with an individual sewage disposal unit.
(c)
Standards for the Construction of Public Noncommunity
and Nonpublic Water Systems, as promulgated by the New Jersey Department of
Environmental Protection, for buildings not connected to a public water supply
system.
(d)
Any other applicable codes or ordinances of the Township
of Readington, now or in the future being in existence.
A.
The entire program administration will be the sole responsibility
of the Housing Rehabilitation Committee. The Housing Rehabilitation Committee
will be composed of 5 members, each with joint and severable tasks. The members
of the Housing Rehabilitation Committee shall be selected and have their terms
of office determined by the Township Committee of the Township of Readington.
B.
The powers of the Housing Rehabilitation Committee are
as follows:
(1)
To approve or disapprove of each application based on
the criteria set forth in this program as well as any requirements or conditions
promulgated by the Committee in furtherance of this ordinance.
(2)
To manage, invest, control, make disbursements on, make
deposits thereto and keep records for the Housing Rehabilitation Program Seed
Fund and the Housing Rehabilitation Program Seed Fund and the Housing Rehabilitation
Revolving Loan Fund.
(3)
To inspect, control and give approval to any construction
paid for by loans or grants from this program to properties of approved eligible
family units.
(4)
To enforce repayment of any loans made under this program.
(5)
To be assisted by the Citizens Advisory Committee.
(6)
To increase, loan or grant any additional moneys required
to correct unforeseen defective conditions which arise after the construction
contracts for the individual rehabilitation projects have been executed and
construction is under way; including promulgating procedures to effectuate
such a correction.
(7)
To promulgate any regulations, requirements or conditions
necessary for implementation and operation of each and every part of the program.
(8)
To develop any forms necessary to process any applications,
loans, contracts inspections, completions, etc.
C.
The Citizens Advisory Committee shall be comprised of
no more than five township homeowners appointed by the Mayor of the Township
of Readington to assist the Housing Rehabilitation Committee in its duties
and operations.
The costs of improvements initiated or completed prior to the enactment
of this ordinance and prior to the approval of an application made hereunder
will not be eligible for inclusion in this program.
[Amended 12-28-1989 by Ord. No. 271-89]
The Policy Guidelines, Procedures Manual and Exhibits Sections of the
Housing Rehabilitation Program of Readington Township, New Jersey, as drawn
by Clarke & Caton, 342 West State Street, Trenton, New Jersey 08618, are
incorporated by specific reference to them and made a part of this ordinance
as if more fully set forth at length herein. Three copies of aforesaid documents
are on file with the Clerk of Readington Township.
