Developers of inclusionary housing units of
low- and moderate-income persons and families shall enter into a written
agreement, binding on all successors-in-interest in accordance with
N.J.A.C. 5:93-9.3 et seq. of Resale/Rental Control, that not less
than 10% of the total units constructed shall be affordable to low-income
persons and families, and not less than 10% of the total units constructed
shall be affordable to moderate-income persons and families at the
time of sale, resale, rental or rerental regardless of the availability
of federal, state, county or Township subsidy programs.
The affordability of a low- or moderate-income
unit shall be a function of the rent or sales price which shall be
established so as to ensure that occupants do not pay a sum for shelter
costs greater than approximately 30% of gross annual income for rental
units or approximately 28% of gross annual income for sales units
in accordance with Council on Affordable Housing regulations as follows:
A. Shelter costs for rental units shall include gross rent, including an allowance for utilities, so as not to exceed 30% of the gross monthly income of the appropriate household size referenced in Subsection
D below. Those tenant-paid utilities that are included in the utility allowance shall be so stated in the lease. The allowance for utilities shall be consistent with the utility allowance approved by the U.S. Department of Housing and Urban Development for use in New Jersey. "Utility allowance" means those expenses that are in addition to the base rent, such as heat, electricity and cooking fuel, that are included in the thirty-percent utility allowance as outlined in the lease.
B. Shelter costs for sales units shall include principal,
interest, taxes, condominium fees and insurance.
C. The initial price of a low- and moderate-income owner-occupied
single-family housing unit shall be established so that after a down
payment of 5% (based on a mortgage loan equal to 95% of the purchase
price and a market rate of interest), the monthly principal, interest,
homeowner and private mortgage insurances, property taxes (property
taxes shall be based on the restricted value of low- and moderate-income
units) and condominium or homeowner fees do not exceed 28% of the
eligible gross monthly income. Master deeds of inclusionary developments
shall regulate condominium or homeowner association fees or special
assessments of low- and moderate-income purchasers at a specific percentage
of those paid by market purchasers. The percentage that shall be paid
by low- and moderate-income purchasers shall be at least 1/3 of the
condominium or homeowner association fees paid by market purchasers.
Once established within the master deed, the percentage shall not
be amended without prior approval from COAH. Price restrictions for
ownership units shall conform to N.J.A.C. 5:80-26.6, Price Restrictions
for Ownership Units.
D. Rental and sales costs shall be fixed for a unit depending
on bedroom number calculated on the following basis as to household
size:
(1) Efficiency units shall be affordable to one person
households;
(2) One-bedroom units shall be affordable to households
of 1 1/2 persons.;
(3) Two-bedroom units shall be affordable to households
of three persons; and
(4) Three-bedroom units shall be affordable to households
of 4.5 persons.
E. Bedroom distribution. The following bedroom distribution
shall apply to the total number of affordable units in each development
providing affordable housing units:
(1) Inclusionary developments that are not age restricted
shall be structured in conjunction with realistic market demands so
that:
(a)
The combination of efficiency and one-bedroom
units is at least 10% and no greater than 20% of the total low- and
moderate-income units.
(b)
At least 30% of all low- and moderate-income
units are two-bedroom units; and
(c)
At least 20% of all low- and moderate-income
units are three-bedroom units.
(d)
At least 1/3 of all units in each bedroom distribution
pursuant to N.J.A.C. 5:93-7.3 shall be affordable to low-income households.
(e)
In the event the Rules of the Council on Affordable
Housing shall provide for a bedroom mix different than the foregoing,
the requirements of COAH shall control and the foregoing shall be
deemed modified for all projects which have not received final site
plan or subdivision approval.
(2) Age-restricted low- and moderate-income units may
utilize a modified bedroom distribution. At a minimum, the number
of bedrooms may equal the number of age-restricted low- and moderate-income
units within the exclusionary development. The standard can be met
by creating all one-bedroom units or by creating a two-bedroom unit
for each efficiency unit. Applications to waive this standard shall
be made in accordance with N.J.A.C. 5:93-15, Waiver Provisions.
F. In the case of owner-occupied housing rehabilitation
assistance, affordability shall be based on unit occupancy by a low-
or moderate-income household.
G. Median income by household size will be established
by a regional weighted average of the uncapped Section 8 income limits
published by the U.S. Department of Housing and Urban Development
(HUD) in accordance with N.J.A.C. 5:93-7.4(b). To compute this regional
income limit, the HUD determination of median county income for a
family of four is multiplied by the households within the county.
The resulting product for each county within the housing region is
summed. The sum is divided by the estimated total households in each
housing region. This quotient represents the regional weighted average
of median income for a household of four. This regional weighted average
is adjusted by household size based on multipliers used by HUD to
adjust median income by household size. The maximum average rent and
sales price of low- and moderate-income units within each inclusionary
development shall be affordable to households earning no more than
70% of median income in accordance with N.J.A.C. 5:93-7.4(b). Moderate-income
sales units shall be available for at least two different prices and
low-income sales units to be available for at least two different
prices. In averaging the 57.5%, developers and/or municipal sponsors
of rental units may establish one rent for a low-income unit and one
rent for a moderate-income unit for each bedroom distribution.
H. For initial occupancy, priority shall be given to households that fall within the median income categories delineated in Subsection
G above.
I. Phasing of affordable units.
(1) Affordable housing units in ML Zoning Districts shall
be built, occupied and receive a certificate of occupancy in accordance
with the following schedule. For purposes of this section, a completed
unit is one which has received its certificate of occupancy.
|
Minimum Percentage of Low- and Moderate-Income
|
Percentage of Market Units Completed
|
---|
|
0
|
25
|
|
10
|
25 + 1 unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
100
|
(2) No initial occupancy of a low- or moderate-income
housing sales unit shall be permitted prior to issuance of a certificate
of occupancy, and no certificate of occupancy for initial occupancy
of a low- or moderate-income housing sales unit shall issue unless
there is a written determination by the authority that the unit is
to be controlled by a deed restriction and mortgage lien as adopted
by COAH.
(3) A certificate of reoccupancy for any occupancy of
a low- or moderate-income housing sales unit resulting from a resale
shall be required, and the Township shall not issue such certificate
unless there is a written determination by the authority that the
unit is to be controlled by the deed restriction and mortgage lien
required by the COAH.
(4) The certificate of reoccupancy shall not be required
where there is a written determination by the authority that controls
are allowed to expire or in that the repayment option is being exercised
pursuant to N.J.A.C. 5:93-9.4.
J. Sale/rental and resale/rerental controls. A developer
of a Mount Laurel development shall incorporate deed restrictions
on all dwelling units sold as units affordable to low- and moderate-income
households pursuant to N.J.A.C. 5:93-9.2, Council on Affordable Housing
Substantive Rules. Affordability controls shall remain in force for
30 years in accordance with N.J.A.C. 5:93-9.2(a), shall run with the
land and shall require all conveyances of newly constructed low- and
moderate-income sales units subject to this chapter and N.J.A.C. 5:91
and 5:93 to contain the deed restriction and mortgage lien requirements
adopted by COAH as contained in N.J.A.C. 5:93 Appendix E and upon
the resale/rerental of affordable units in accordance with N.J.A.C.
5:93-9.4 through 5:93-9.16.
K. Annual indexed increases while controls are in place:
sales and rentals.
(1) The price of an owner-occupied housing unit 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 authority be lower than the last recorded
purchase price.
(2) With the exception of rentals constructed pursuant
to low-income tax credit regulations, the rent of a low- or moderate-income
housing unit 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 tax credit regulations shall be indexed pursuant to
the regulations governing low-income tax credits.
L. Assisted living residences as defined in N.J.A.C.
5:93-1.3, Definitions, shall confirm to requirements contained in
N.J.A.C. 5:93-5.16, Assisted Living Residence. Assisted living residences
shall enter into an agreement with the authority and the authority
enter into an agreement with the New Jersey Department of Community
Affairs Housing Mortgage Finance Agency to administer and monitor
the low- and moderate-income apartments in an assisted living residence.
M. Eligible capital improvements prior to the expiration
of controls: sales units.
(1) Property owners of single-family owner-occupied housing
may apply to the authority for permission to increase the maximum
price for eligible capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household.
In no event shall the maximum price of an improved housing unit exceed
the limits of affordability for the larger household. Property owners
shall apply to the authority if an increase in the maximum sales price
is sought.
(2) At resale, all items of property which are permanently
affixed to the units and/or were included when the unit was initially
restricted (for example, refrigerator, range, washer, dryer, dishwasher,
wall-to-wall carpeting) shall be included in the maximum allowable
resale price. Other items of property may be sold to the purchaser
at a reasonable price that has been approved by the authority at the
time of signing the agreement to purchase. The purchase of central
air conditioning installed subsequent to the initial sale of the unit
and not included in the base price may be made a condition of the
unit resale, provided the price has been approved by the authority.
Unless otherwise permitted by COAH, the purchase of any property other
than central air conditioning shall not be made a condition of the
unit resale. The owner and the purchaser must personally certify at
the time of closing that no unapproved transfer of funds for the purpose
of selling and receiving property has taken place at resale.
N. Exempt sales. Sales exempted from resale/rerental
controls shall include 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.
O. Deed restrictions, notice of sale. All deed restrictions
governing low- and moderate-income housing units shall require the
owner to notify the authority and COAH by certified mail of any intent
to sell the unit at least 90 days prior to entering into an agreement
for the first nonexempt sale after controls have been in effect on
the housing unit for the period specified in N.J.A.C. 5:93-9.2.
P. Subsidy to ensure affordability prior to the expiration
of controls, sales units. If the use of median income data adopted
by COAH to index the cost of housing renders a unit unaffordable to
a low- or moderate-income household at the time of resale, a municipality
shall not lose credit for the housing unit, provided that adequate
controls on affordability remain in place but the municipality may
subsidize the housing unit to maintain affordability.
The sales and rentals of not more than 25% of
the affordable housing units constructed within ML Zoning Districts
within the Township may be age restricted to senior citizens aged
62 or older as defined by and in accordance with the Federal Fair
Housing Act 42 USC 3601 et seq. and N.J.A.C. 5:93-5.1 and N.J.A.C.
5:93-5.12. A request to age restrict housing units within a ML Zone
District may only be granted after the Planning Board or Board of
Adjustment has received the consent of the Township Committee. In
designing an age-restricted affordable housing project, the applicant
may propose constructing the senior citizen restricted affordable
units in the same building or buildings in order to maximize the potential
of preserving a more tranquil life-style for the senior citizen residents;
and to the foregoing extent, the requirement of integration of the
affordable units with conventional units is modified.
Low- and moderate-income inclusionary housing
shall be designed in accordance with the following provisions:
A. The low- and moderate-income housing units shall be
sited on the tract in locations at least as accessible to common open
space and community facilities as market-priced dwelling units. Rental
units may be concentrated for ownership and management reasons.
B. The exterior design of the low- and moderate-income
housing units shall be harmonious in scale, texture, and materials
with the market-priced units on the tract.
The authority shall provide for the marketing
of all low- and moderate-income housing units developed pursuant to
the provisions of this Part 6 in accordance with the provisions of
an Affirmative Marketing Plan as described below:
A. The Affirmative Marketing Plan is a regional marketing
strategy designed to attract buyers and/or renters of all minority
and minority groups, regardless of sex, age or number of children,
to housing units which are being marketed by a developer or sponsor
of affordable housing. It is a continuing program and covers the period
of deed restriction.
B. Information. The Affirmative Marketing Plan shall
include the information provided in N.J.A.C. 5:93-11.1(b).
C. Marketing program. The advertising component of the
marketing program shall be designed to reach all segments of the eligible
population within the East Central Housing Region (Monmouth, Ocean,
and Mercer Counties). It shall be used in advertising and publicizing
the availability of housing in accordance with the marketing program
requirements of N.J.A.C. 5:93-11.3.
(1) The marketing process for low- and moderate-income
units shall begin at least four months prior to expected occupancy.
(2) In implementing the marketing program, there shall
be at least one paid advertisement in a newspaper of general circulation
within the Housing Region during the first week of the marketing program.
Such advertisement shall include the items specified in N.J.A.C. 5:93-11.3(c).
(3) Applications for low- and moderate-income housing
shall be available in several locations, including, at a minimum,
the municipal administrative building(s), the municipal library and
at the developer's sales office. Applications shall be mailed to prospective
applicants upon request.
(4) If the cost of advertising low- and moderate-income
units are to be a developer's responsibility, the requirement shall
be a condition of the Township Planning Board or Board of Adjustment
approval.
D. Marketing for initial sales and/or rental; composition
of marketing pool.
(1) Households that apply for low- and moderate-income
housing shall be screened by the authority for preliminary income
eligibility by comparing their total income to the low- and moderate-income
limits adopted by COAH. Applicants shall be notified as to their eligibility
status.
(2) Having screened applicants for preliminary income
eligibility, the authority may analyze the income and household sizes
of applicants to determine which applicants have the assets and/or
income necessary to purchase or rent each available low- or moderate-income
unit.
(3) The authority shall interview each applicant and utilize
the procedures outlined in N.J.A.C. 5:93-9.1 to verify the applicant's
income and household size; determine the applicant's asset availability;
and review the applicant's credit history. Applicants shall be required
to submit income verification for each household member 18 years or
older. This process shall be utilized in establishing the final certified
applicant group.
(4) The process described in Subsection
D(1) through
(3) above may begin no sooner than one month after the advertising program outlined in N.J.A.C. 5:93-11.3 begins. Households shall be selected to proceed through the process described in Subsection
D(1) through
(3) above through a method of random selection. Households shall be certified for low- and moderate-income units using the procedures outlined in N.J.A.C. 5:93-9.1. The process described in Subsection
D(1) through
(3) shall be continued until all the low- and moderate-income units are occupied.
E. Continuing marketing activities.
(1) The types of activities to be undertaken after the
completion of initial occupancy of sales and rental units in order
to fill vacancies resulting from normal turnover shall include:
(a)
Ensuring a sufficient supply of income-eligible
applicants by continuing to implement the marketing plan throughout
the housing region, as outlined in N.J.A.C. 5:93-11.3. At a minimum,
the municipality shall maintain a current pool of at least five income-eligible
applicants for each low- and moderate-income unit.
(b)
Contacting each income-eligible applicant annually
to request updated information regarding income and family size.
(2) As units become available, the authority shall select
eligible applicants for the units, as described in N.J.A.C. 5:93-11.4(b)
through (d), until the units are occupied by low- and moderate-income
households.
F. Monitoring and reporting requirements.
(1) The Township shall collect information on each applicant
for low- and moderate-income housing on forms approved by COAH.
(2) The Township shall evaluate the results of its affirmative
marketing activities and file a report with COAH by August 30 of each
year. Such report shall include:
(a)
Monitoring forms approved by COAH;
(b)
An evaluation of the income and demographic
characteristics of each applicant of low- and moderate-income housing,
as well as the occupants of the units; and
(c)
An evaluation of any necessary adjustments in
the affirmative marketing program as a result of the evaluation in
(a) above.
(3) COAH or the Court shall review and assess the effectiveness
of the Township affirmative marketing program. If it is deemed that
the affirmative marketing program is not effective, the Township shall
be required to amend the program.