[Adopted 12-13-2018 by Ord. No. 20-2018[1]]
[1]
Editor's Note: This article also repealed former Art.
II, Fair Share with Affirmative Marketing Plan, adopted 8-23-2007
by Ord. No. 16-2007.
This article of the City Code sets forth regulations regarding
the City's affordable housing obligation consistent with the
provisions of the Court-approved settlement agreement and subsequent
adoption of a housing element and fair share plan conforming with
the terms of this agreement to satisfy its obligation under the Mount
Laurel Doctrine and Fair Housing Act of 1985, N.J.S.A. 52:27D-301
et. seq., for the prior round (1987-1999) and third round (1999-2025)
to provide a fair share of affordable housing for very-low, low- and
moderate-income households. These regulations are also intended to
provide assurances that very-low, low- and moderate-income units (the
"affordable units") are created with controls on affordability over
time and that qualifying households occupy these units. These regulations
shall apply except where inconsistent with applicable law or with
any prior round Court-approved settlements and settlement agreements.
A.
Thirteen percent of all affordable units, excepting those units that were constructed or granted preliminary or final site plan approval prior to July 2008 and those which are subject to Subsection F of this section, shall be very-low-income units, with half of the very-low-income units being available to families.
B.
At least 50% of the affordable units addressing the City's prospective
need shall be affordable to very-low-income and low-income households,
with the remainder affordable to moderate-income households.
C.
At least 25% of the City's prospective need shall be met through
rental units including at least half in rental units available to
families.
D.
At least half of the units addressing the City's prospective
need in total must be available to families.
E.
A maximum of 25% of all affordable units developed or planned to
meet the City's cumulative prior round and third round fair share
obligation shall be age-restricted.
F.
Unless the FSHC settlement agreement shall be modified or amended,
with the exception of affordable units which shall be constructed
as planned pursuant to the Bay Avenue settlement agreement for which
10% of affordable rental units are required to be at 35% of median
income; for all other affordable project units, 13% of affordable
rental units in such projects shall be required to be at 30% of median
income.
A.
Affordable housing developments which are not limited to age-restricted
households shall be structured in conjunction with realistic market
demands so that:
B.
Affordable housing developments that are limited to age-restricted
households shall at a minimum have a total number of bedrooms equal
to the number of age-restricted affordable units within the affordable
housing development. The standard may be met by creating all one-bedroom
units or by creating a two-bedroom unit for each efficiency unit.
A.
In conjunction with realistic market information, the following shall
be used to determine maximum rents and sales prices of the affordable
units:
(1)
Efficiency units shall be affordable to one-person households.
(2)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household.
(3)
A two-bedroom unit shall be affordable to a three-person household.
(4)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household.
(5)
A four-bedroom unit shall be affordable to a six-person household.
B.
For assisted-living facilities, the following standards shall be
used:
C.
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:
Median income by household size shall be established using a
regional weighted average of the uncapped Section 8 income limits
published by HUD and computed as set forth in Paragraph 11(a) of the
Fair Share Housing Center settlement agreement dated April 26, 2018.
A.
The maximum rent of affordable units within each affordable housing
development shall be affordable to households earning no more than
60% of median income. The average rent for low- and moderate-income
units shall be affordable to households earning no more than 52% of
median income. Restricted rental units shall establish at least one
rent for each bedroom type for all low- and moderate-income units
provided at least 13% of all low- and moderate-income units are affordable
to households earning no more than 30% of median income.
B.
Low- and moderate-income units shall utilize the same heating source
as market units within an inclusionary development.
C.
Gross rents including an allowance for utilities shall be established
for the various size affordable units at a rate not to exceed 30%
of the gross monthly income of the appropriate household size as set
forth in § 69-16A above. The allowance for utilities shall
be consistent with the utility allowance approved by the New Jersey
Department of Community Affairs (DCA) for use in its Section 8 program.
D.
No affordable rental units included in the Somers Point settlement
agreements shall be subject to a rent control ordinance which may
be adopted or in place in the City of Somers Point during the time
period in which such agreements are effective.
A.
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. Each affordable development must achieve
an affordability average of 55% for restricted ownership units. 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.
B.
Low- and moderate-income units shall utilize the same heating source
as market units within an inclusionary development.
C.
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 homeowner
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.
If an affordable housing unit is part of a condominium association
or homeowners' association, the master deed shall reflect that
the assessed affordable homeowners' fee be established at 100%
of the market rate fee. This percentage assessment shall be recorded
in the master deed.
A.
Very-low-income housing units shall be reserved for households with
a gross household income of 30% or less the regional weighted average
medium income as set forth and published by HUD.
B.
Low-income housing units shall be reserved for households with a
gross household income of 50% or less of the regional weighted average
medium income as set forth and published by HUD.
C.
Moderate-income housing units shall be reserved for households with
a gross household income in excess of 50% but less than 80% of the
regional weighted average median income as set forth and published
by HUD.
Upon resale of an affordable unit, a certificate of re-occupancy
shall be required in accordance with N.J.A.C. 5:80-26.10.
Unless otherwise approved by COAH or the Superior Court, final
site plan or subdivision approval shall be contingent upon the affordable
housing development meeting the following phasing schedule for low-
and moderate-income units whether developed in one stage or in two
or more stages:
|
Minimum Percentage of Affordable Units Completed
|
Percentage of Market Housing Units Completed
|
|---|---|
|
0
|
25
|
|
10
|
25 + 1 unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
90
|
Any conveyance of a newly constructed low- or moderate-income
sales unit shall contain the restrictive covenants and liens that
are set forth in N.J.A.C. 5:80-26 et seq.
A.
The City is ultimately responsible for monitoring the affordable
housing program, including affordability controls and the affirmative
marketing plan in accordance with the regulations of the Council on
Affordable Housing pursuant to N.J.A.C. 5:94 et seq.[1] and the New Jersey Uniform Housing Affordability Controls
pursuant to N.J.A.C. 5:80-26 et seq.
[1]
Editor's Note: N.J.A.C. 5:94-1.1 et seq. expired 9-11-2016.
B.
The City has delegated to the municipal housing liaison the responsibility
for monitoring the affordable housing program including administrating
and enforcing the affordability controls and the affirmative marketing
plan of the City of Somers Point in accordance with the provisions
of this article, the regulations of the Council on Affordable Housing
pursuant to N.J.A.C. 5:94 et seq., and the New Jersey Uniform Housing
Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq. The City
of Somers Point shall by resolution appoint the City administrator
as the municipal housing liaison to monitor the affordable housing
program.
C.
Subject to COAH or Court approval, the City may contract with one
or more administrative agents to administer all of the affordability
controls and/or the affirmative marketing plan in accordance with
this article, the regulations of the Council on Affordable Housing
pursuant to N.J.A.C. 5:94 et seq., and the New Jersey Uniform Housing
Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq. The municipal
housing liaison shall monitor the contracting administrative agent(s).
D.
The City has entered into a Court-approved shared services agreement
with the Atlantic County Improvement Authority, an experienced affordable
housing administrator to be the administrator of the sale and rental
of all new affordable housing and rehabilitation. The experienced
affordable housing administrative agent will oversee and administer
the income qualification of low- and moderate-income households; placing
income-eligible households in low- and moderate-income units as they
become available during the period of affordability controls and enforcing
the terms of the required deed restrictions and mortgage loans. The
experienced affordable housing administrative agent will administer
and implement:
(1)
An administrative plan and program, and related monitoring and reporting
requirements as outlined in N.J.A.C. 5:80-26.15 et seq. and the land
use ordinances of the City of Somers Point after review by the City
Planning Board and City Council.
(2)
A plan for certifying and verifying the income of low- and moderate-income
households as per N.J.A.C. 5:80-26.16.
(3)
Procedures to assure that low- and moderate-income units are initially
sold or rented to eligible households and are thereafter similarly
resold and re-rented during the period while there are affordability
controls as per N.J.A.C. 5:80-26 et seq.
(4)
The requirement that all newly constructed low- and moderate-income
sales or rental units contain deed restrictions with appropriate mortgage
liens as set forth in appendices in N.J.A.C. 5:80-26 et seq.
(5)
The several sales/purchase options authorized under N.J.A.C. 5.80-26
et seq., except that the City retains the right to determine by resolution
whether or not to prohibit, as authorized under N.J.A.C.5:80-26 et
seq., the exercise of the repayment option.
(6)
The regulations determining whether installed capital improvements
will authorize an increase in the maximum sales price; and which items
of property may be included in the sales price as per N.J.A.C. 5:80-26.9.
E.
The developers/owners of any inclusionary site shall be responsible
for the experienced affordable housing administrator's administrative
fee, affirmative marketing and advertising and such shall be a condition
of Planning Board or Zoning Board of Adjustment approval. Subsequent
to the initial sale or the initial rental of an affordable unit, the
seller of an affordable sale unit or the owner of an affordable rental
unit shall be responsible for the experienced affordable housing administrator's
administrative fee, affirmative marketing and advertising and such
shall be a condition of any affordable housing deed restriction governing
the unit.
F.
The City of Somers Point reserves the right to replace the administrative
agent(s) with another experienced affordable housing agency authorized
by COAH to carry out the administrative processes outlined above.
A.
Newly constructed low- and moderate-income rental units shall remain
affordable to low- and moderate-income households for a period of
30 years.
B.
Newly constructed low- and moderate-income for-sale units shall remain
affordable to low- and moderate-income households for a period of
30 years.
C.
Rehabilitated owner-occupied single-family housing units that are
improved to code standard shall be subject to affordability controls
for 10 years.
D.
Rehabilitated renter-occupied housing units that are improved to
code standard shall be subject to affordability controls for at least
10 years.
F.
Affordability controls on accessory apartments shall be for a minimum
period of 10 years.
G.
Affordability controls for units in alternative living arrangements
shall be for a period of 30 years or such other lesser period as may
be applicable to special needs and/or group homes.
H.
Affordability controls on buy-down units shall be for a period of
30 years.
A.
The administrative agent shall use a random selection process to
select occupants of low- and moderate-income housing.
B.
A waiting list of all eligible candidates will be maintained in accordance
with the provisions contained in N.J.A.C. 5:80-26 et seq.
C.
Households who live or work in COAH's Housing Region 6 consisting
of Atlantic, Cape May, Cumberland, and Salem Counties shall be given
preference for sales and rental units constructed within this housing
region. Applicants living outside this housing region will have an
equal opportunity for units after regional applicants have been initially
serviced.
A.
In accordance with the regulations of COAH pursuant to N.J.A.C. 5:94
et seq.[1] and the New Jersey Uniform Housing Affordability Controls
pursuant to N.J.A.C. 5:80-26 et seq., the regulations below shall
serve as the City of Somers Point's affirmative marketing plan.
[1]
Editor's Note: N.J.A.C. 5:94-1.1 et seq. expired 9-11-2016.
B.
All affordable housing units shall be marketed in accordance with
the provisions therein.
C.
The City has a first round, second round, and a third round obligation;
all of which have been approved by orders of the New Jersey Superior
Court following the statutory fairness hearings. This section shall
apply to all developments that contain proposed low- and moderate-income
units and any future developments that may occur.
D.
In implementing the marketing program, the administrative agent shall
undertake all of the following strategies:
(1)
Publication of one advertisement in a newspaper of general circulation
within the housing region.
(2)
Broadcast of one advertisement by a radio or television station broadcasting
throughout the housing region.
(3)
At least one additional regional marketing strategy using one of
the other sources listed below.
E.
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. The City is in the housing region
consisting of Atlantic, Cape May, Cumberland, and Salem Counties.
The affirmative marketing program is a continuing program and shall
meet the following requirements:
(2)
The primary marketing shall take the form of at least one press release
sent to the above publications and a paid display advertisement in
the above newspapers. Additional advertising and publicity shall be
on an as-needed basis. The advertisement shall include a description
of the:
(a)
Location of the units;
(b)
Direction to the units;
(c)
Range of prices for the units;
(d)
Size, as measured in bedrooms, of units;
(e)
Maximum income permitted to qualify for the units;
(f)
Location of applications;
(g)
Business hours when interested households may obtain an application;
and
(h)
Application fees, if any.
(3)
The following regional cable television station shall be used: Comcast
Access Channel TV.
(5)
The following is a listing of community contact person(s) and/or
organizations(s) in Atlantic, Cape May, Cumberland, and Salem Counties
that will aid in the affirmative marketing program with particular
emphasis on contracts that will reach out to groups that are least
likely to apply for housing within the region:
(a)
Atlantic County Department of Family and Community Development.
(b)
Atlantic County Improvement Authority.
(c)
New Covenant Community Church.
(d)
Calvary Bible Church.
(e)
St. Joseph's Roman Catholic Church.
(f)
Grace Lutheran Church.
(g)
Christ Episcopal Church.
(h)
Atlantic City Mission of Diocese of New Jersey.
(i)
United Methodist Church.
(j)
Holy Trinity Greek Orthodox Church.
(k)
Beth Israel Reform Congregation.
(l)
NJ State Mental Health Association.
(m)
Fair Housing Council of Atlantic County.
(n)
Family Service Association of Atlantic County.
(o)
The ARC of Atlantic County.
(p)
Homes Now, Inc.
(q)
The Affordable Homes Group.
(r)
Affordable Homes of Millville Ecumenical.
(s)
Cumberland Empowerment Zone Corporation.
(t)
Rural Opportunities, Inc., NJ Division.
(u)
Tri-County Community Action Partnership.
(v)
Housing Services Corp. of the Diocese of Camden.
(w)
The Latino Action Network,
(x)
The Cape May County, Mainland/Pleasantville, and Atlantic City
Branches of the NAACP.
(y)
The New Jersey State Conference of the NAACP.
(6)
Quarterly flyers and applications.
(a)
Quarterly flyers and applications shall be sent to each of the
following agencies for publication in their journals and for circulation
among their members:
(b)
Applications shall be mailed to prospective applicants upon
request.
(c)
Quarterly informational circulars and applications shall be
sent to the chief administrative employees of each of the following
agencies in the counties of Atlantic, Cape May, Cumberland, and Salem:
(d)
Quarterly informational circulars and applications shall be
sent to the chief administrative employees of each of the following
major employers:
(7)
A random selection method to select occupants of low- and moderate-income
housing will be used in conformance with N.J.A.C. 5:80-26.16(1).
(a)
The experienced affordable housing administrative agent has
the responsibility to income-qualify low- and moderate-income households;
to place income-eligible households in low- and moderate-income units
upon initial occupancy; to provide for the initial occupancy of low-
and moderate-income units with income-qualified households; to continue
to qualify households for re-occupancy of units as they become vacant
during the period of affordability controls; to assist with outreach
to low- and moderate-income households; and to enforce the terms of
the deed restriction and mortgage loan as per N.J.A.C 5:80-26. The
municipal housing liaison will act as liaison to any experienced affordable
housing administrative agency that may be contracted by the City in
the future. The experienced affordable housing administrative agent
shall provide counseling services to low- and moderate-income applicants
on subject such as budgeting, credit issues, mortgage qualifications,
rental lease requirements and landlord/tenant law.
(b)
All developers of low- and moderate-income housing units shall
be required to assist in the marketing of the affordable units in
their respective developments.
(c)
The marketing program shall commence at least 120 days before
the issuance of either temporary or permanent certificates of occupancy.
The marketing program shall continue until all low-income housing
units are initially occupied and for as long as affordable units are
deed restricted and occupancy or re-occupancy of units continues to
be necessary.
(d)
The municipal housing liaison of the City of Somers Point will
comply with monitoring and reporting requirements as per N.J.A.C.
5:80-26 and the FSHC settlement agreement.
