[Adopted by Ord. No. 1308 as Ch. 2.112 of the 1998 Code]
A. Short title. The provisions of this article will be known as the "Rules and Regulations of the Montville Housing Committee."
B. Severability clause. If any part of this article shall be held invalid, the holding shall not affect the validity of remaining parts of these rules. If a part of these rules is held invalid in one or more of their applications, the rules shall remain in effect in all valid applications that are severable from the invalid application.
(1) These rules and regulations have been developed by the Montville Housing Committee pursuant to the powers granted to it under the Code of the Township of Montville.
(2) These rules and regulations have been presented to, and approved by, the Township Committee of the Township of Montville.
- The Fair Housing Act of 1985, L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.).
- AFFIRMATIVE MARKETING PLAN
- The plan for marketing the affordable housing units as set forth in § 73-6 of these rules and regulations.
- A sales price or rent within the means of a low- or moderate-income household as defined below.
- AFFORDABLE HOUSING
- Residential units that have been restricted for occupancy by households whose total gross annual income is measured at less than 80% of the median income level established by geographic region and family size by COAH.
- AFFORDABLE HOUSING AGREEMENT
- The written agreement between the owner of an affordable housing unit and the Township that imposes covenants, conditions, and restrictions on residential units to ensure that those housing units remain affordable to households of low and moderate income for a specified period of time and is recorded with the deed to the unit in the County Recording Office.
- ALLOCATED HOUSING COSTS
- The total of monthly payments associated with an owner-occupied affordable housing unit, including principal, interest, real estate taxes, private mortgage insurance, homeowners' insurance and association fees and assessments. "Allocated housing costs" shall also refer to the monthly rental charge for an affordable housing unit plus estimated costs of utilities, association fees and assessments and homeowners' insurance.
- The affirmative marketing plan as defined in these rules and regulations.
- Any family who seeks to own or lease affordable housing. It may refer to a family on the waiting list or in the process of certification.
- APPLICATION FOR CERTIFICATION OF ELIGIBILITY
- The formal application package sent to families who are on the waiting lists maintained by the MHC plus any additional support documents needed to determine if an applicant is eligible for affordable housing.
- CERTIFICATE OF ELIGIBILITY
- The document issued by the developer or the MHC to an applicant who has submitted an application for certification of eligibility and has been determined to be eligible.
- An applicant has been determined to be eligible for affordable housing or the process of making such determination.
- The New Jersey Council on Affordable Housing.
- Where used within the context of these regulations means the Montville Housing Committee.
- The owner/developer or contractor who is building and selling, or otherwise making available, affordable housing in Montville Township under the provisions of these regulations. As used in the context of these regulations, the "developer" may mean any successors, tenant or condominium associations that assume responsibilities from the developer, or any firm or individual hired or appointed by the developer for the purposes of certifying applicants for eligibility and/or maintaining affordability controls.
- The designated employee of the Township of Montville appointed to the position of Housing Director by the Township Committee or the Township Administrator. In the absence of a specified individual, the Chairman of the Montville Housing Committee shall assume the responsibilities and authority of the Director.
- EMPLOYED IN MONTVILLE
- A family residing outside the Township, which family includes a person of 18 years or older who is employed on a regular full-time basis within the Township of Montville, and has been so for at least 60 days.
- The same as "household."
- The termination through legal processes of all rights of the mortgagor's heirs, successors, assigns or grantees in a unit covered by a recorded mortgage.
- GROSS ANNUAL INCOME
- The total amount of a household's income from all sources, including but not limited to salary, wages, interest, dividends, alimony, pensions, social security, unemployment, business and capital gains, tips and welfare benefits. Generally, gross annual income will be based on income reported to the Internal Revenue Service whether taxable or not.
- GROSS MONTHLY INCOME
- Gross annual income divided by 12.
- The person or persons occupying a housing unit.
- IMMEDIATE FAMILY
- A brother, sister, child, or parent.
- LOW INCOME
- A gross household income of less than or equal to 50% of the HUD median gross household income for households of the same size within the housing region in which the housing is located, and is subject to affordability controls.
- LOW-INCOME HOUSING
- Housing affordable to a family qualified as "low income."
- MEDIAN INCOME
- The applicable median income level established by family size and geographic area using the income guideline approved for use by COAH.
- Where used within the context of these regulations means the Montville Housing Committee.
- MODERATE INCOME
- A gross household income greater than 50% but less than 80% of the HUD median gross household income for households of the same size within the housing region in which the housing is located, and is subject to affordability controls.
- MODERATE-INCOME HOUSING
- Housing affordable to a family qualified as "moderate income."
- MONTVILLE HOUSING COMMITTEE
- The entity designated by the Township of Montville for the purpose of monitoring the occupancy, resale and rental restrictions of low- and moderate-income housing units and the oversight of marketing plans, certification of applicants and implementation of the affordable housing program within the Township. The "Committee" and "MHC" means the Montville Housing Committee.
- The title holder of record as same is reflected in the most recently dated and recorded deed for the particular affordable housing unit.
- A system of selecting applicants.
- A certified household who has signed a contract to purchase an affordable housing unit subject to a mortgage commitment, closing and acceptance of the conditions and restrictions of the affordable housing agreement.
- REPAYMENT CLAUSE
- The obligation of a seller exercising a repayment option to pay 95% of the price differential to Montville Township at closing for use in the municipal housing plan of Montville Township.
- When used in conjunction with the waiting list or to define an applicant of preference for selection of affordable housing units means any person who lives in Montville Township, is employed in Montville Township on a full-time basis (more than 20 hours per week) or has an immediate family member who lives in Montville Township.
- A person whose household who has been certified for an affordable housing unit for rent subject to the signing of a lease and the payment of any required security deposit.
- TOTAL MONTHLY HOUSING COSTS
- See "allocated housing costs."
- The actual, or estimated, costs to provide each affordable housing apartment with water, sewers, electric, natural gas, and oil.
A. General. Listed below are general areas of responsibilities of the MHC. Each is discussed in detail in specific sections of the regulations.
B. Waiting lists.
(1) The MHC shall maintain lists of individuals who have expressed interest in securing affordable housing in Montville Township. The MHC shall provide an application form by which such individuals may be added to the waiting list.
(3) When all affordable housing units within the Township have been marketed, the MHC shall mail a form annually to each applicant asking if he/she wishes to be retained on the waiting list, and requesting updated family and income data. Only those applicants who sign and return the form each year will be retained on the waiting list. Applicants will be retained on the waiting lists according to development desired; date of initial submission of application; and income and family size. This list will be used to provide a source of applicants for certification as needed.
C. Monitor affordability control compliance. The Committee is responsible for monitoring affordability control compliance, including but not limited to approval of the affirmative marketing program and all associated forms and documents, the affordable housing agreement, maximum sale and rental prices, maximum resale prices, certification of applicants, dispute resolution and use of deed restrictions and disposition covenants.
D. Approval of certification of eligibility.
(1) The MHC shall have oversight responsibilities for the certification procedures followed by the developer and the certification of applicants.
(2) The MHC and/or the Director may intervene to correct or stop certification procedures which are not in compliance with these rules and regulations.
(3) The MHC shall have the right to alter or rescind certifications, or to direct the developer to review and correctly certify any applicants that the Committee finds were improperly classified.
(4) The MHC shall hear appeals of applicants regarding their certification. The Committee shall attempt to assist the applicant and the developer to reach an agreement independently.
E. Assist developers.
(1) The MHC shall hold meetings with developers, to insure that there is compliance with the ordinances, and will provide the developers, owners or tenant associations any data which the MHC may deem to be helpful in accomplishing this purpose.
(2) The MHC will assist developers to develop forms and documents required for the marketing plan and certification of eligibility.
(3) The MHC will provide developers names of applicants on the resident and nonresident waiting lists for direct mail contact as part of the initial marketing and subsequent resale processes.
F. Priority list. The MHC shall oversee the process which established priority lists conducted by each developer and shall certify the ranking of applications received.
A. General. Each developer shall market its affordable housing units, accept applications and certify applicants in the manner prescribed in this article and in the ordinances of the Township. It will remain the responsibility of anyone interested in obtaining affordable housing to apply for any developments of interest to him/her.
B. Affirmative marketing plan.
(1) The developer shall develop an affirmative marketing plan covering the pre-marketing, marketing, certification of applicants, sale or rental of its affordable housing units, and affordability controls.
(2) The developer shall submit the affirmative marketing plan to the MHC for review and approval.
(3) Requests for amending the affirmative marketing plan must be submitted in writing to the MHC for review and approval.
(1) The developer shall be responsible for certifying all applicants until all affordable housing units in the development have been filled.
(2) The developer may use outside individuals or firms to provide certification services.
(a) Any such individual or firm shall comply with all rules and regulations that apply to the developer, and shall act as an agent of the developer.
(b) The developer will be held accountable for all actions of the individuals or firms in the certification process.
(c) Reference to the developer shall include the developer's agents.
D. Public information.
(1) Staffing. The developer shall provide sufficient staff to answer questions from applicants and interested parties regarding all phases of the marketing plan, the priority list, sale and rental of affordable housing units, amenities, and pertinent laws and regulations.
(2) Floor plans. The developer shall provide sample floor plans and information to applicants regarding the development in general, affordable housing units specifically, and approximate costs.
(a) The developer shall provide information to applicants regarding any developer-sponsored mortgage programs, government mortgage programs and commercially available mortgages.
(b) The developer shall explain all deed restrictions and covenants, and their effect of the sale or rental of any affordable housing units.
(4) Affordable housing agreement.
(a) The developer shall have available for inspection and shall provide a copy of its affordable housing agreement, prospectus, public offering or their equivalents to all applicants as required by law.
(b) The developer shall submit the affordable housing agreement for execution on behalf of the Township prior to closing or renting each affordable housing unit.
B. Nonresidents. If affordable housing units become available for which there are no certified or certifiable applicants who are residents, then such units will be offered to certified individuals from the MHC's nonresident list. Certification of nonresidents will be through the priority listing process as described in § 73-9.
A. Marketing to residents.
(1) The marketing of affordable housing units to residents shall be considered Phase I marketing.
(2) The developer shall present an acceptable plan to notify all applicants classified as residents of the availability of affordable housing units, together with details of the development and criteria for qualification.
(3) The plan shall designate the newspapers, newsletters, magazines, businesses, civic organizations and religious denominations most likely to reach the inhabitants of Morris County.
(4) The plan shall include a copy of all forms, applications, notices and notification letters and form letters to be sent to applicants.
(5) Notice of availability of affordable housing units shall be provided not less than 30 days, nor more than 60 days, prior to the priority listing.
(6) Any direct mail to residents must be by first class.
(7) Pre-numbered application packets must be sent to all names on the resident waiting list, which will be provided by the MHC.
(8) An acceptable plan for informing senior citizens of the availability of affordable housing units in the AH-4 District must be provided by the developer of that site.
B. Marketing to nonresidents.
(1) The marketing of affordable housing units to nonresidents shall be considered Phase II marketing.
(2) The Phase II affirmative marketing plan must detail procedures to inform lower income persons of all races and ethnic groups in Region 2, as defined by COAH.
(3) The plan shall include advertisements in newspapers, periodicals and other media aimed at African American and Hispanic populations within the geographic region designated by COAH which includes Montville Township.
(4) The plan shall include copies of all forms, applications, notices and notification letters and form letters to be sent to applicants.
(5) Notice of availability of affordable housing units shall be provided not less than 30 days, nor more than 60 days, prior to the priority listing.
(6) Any direct mail to nonresidents must be by first class.
(7) Application packets must be sent to all names on the nonresident waiting list.
(8) An acceptable plan for informing senior citizens of the availability of affordable housing units in the AH-4 District must be provided by the developer of that site.
C. Submission, approval and continuation of AMP.
(1) The developer shall submit an affirmative marketing program to the MHC at least 90 days prior to the initial marketing of affordable housing units.
(2) The MHC shall review, offer advice and approve the affirmative marketing program prior to its implementation.
(3) The affirmative marketing program shall be initiated not less than 30 days, nor more than 60 days, prior to the priority listing.
(4) The affirmative marketing program shall continue until all affordable housing units are under contract of sale or lease.
(5) Once the marketing plan is implemented, the developer will provide to the MHC certified copies of advertisements and notices with carriers and dates run. Advertising shall be printed in periodicals not more than 60 days prior to the priority listing.
D. Elements of the affirmative marketing plan.
(1) Narrative description of how the affirmative marketing program will be implemented and how it addresses the purposes of the plan.
(2) Copy of all notices and advertisements to be used in Phase I and Phase II marketing.
(3) Schedule of all advertising and marketing activities for Phase I marketing. A schedule of advertising and marketing activities shall be submitted for Phase II marketing as requested by the MHC should the second phase be implemented.
(4) Copy of application for certification of eligibility and all associated forms.
(5) Narrative description of the certification process:
(a) Who will perform the interviews and determine eligibility.
(b) Where will the certification interviews be conducted.
(c) Who will be the lead contact person,
(d) The developer or certifying agent shall present evidence satisfactory to the MHC that those people who will conduct the certification of eligibility interview are sufficiently familiar with the MHC rules and regulations, know the requirements for certification and the procedures to follow to determine eligibility.
E. Elements of the notices and advertisements.
(1) Location of the development;
(2) Number of affordable housing units available in the current development phase, as well as total number of affordable housing units in the entire development;
(3) Date units will be available;
(4) Income criteria by family size;
(5) Instructions on how to be added to the waiting list and secure applications;
(6) Sales prices or rental costs;
(7) Estimated down payment required;
(8) Estimates of other fees, taxes and costs;
(9) Information on application procedures and the priority listing process;
(10) Phone number of developer where additional information may be obtained.
A. Restrictions on affordability and occupancy.
(1) Each affordable housing unit shall be restricted by an affordable housing agreement (AHA) signed by the owner or tenant and the Township which shall provide for covenants, conditions and restrictions so that such affordable housing units remain affordable to low- and moderate-income eligible households for 30 years from the date restrictions initially encumbered the unit.
(2) The AHA must be submitted to the MHC for approval by the Committee and the Township Attorney.
(3) The AHA provides for requirements to owners and occupants and establishes procedures for ensuring that the restricted residential units remain affordable to, and occupied by, families that meet income eligibility requirements.
(4) The AHA also provides that all affordable housing units remain the primary residence of the occupant family of record unless otherwise approved by the MHC.
(5) The AHA shall address resale of units, pricing of resale units, recertification of tenants and removal or reclassification of tenants for noneligibility.
B. Restrictions on sale or lease. The agreement, when executed, constitutes an encumbrance to the conveyance of title for the property identified therein and shall be recorded with the property deed at the time restrictions are initially imposed on the unit. The agreement shall contain an expiration date at which time the unit shall no longer be subject to the covenants, conditions and restrictions.
(1) Any master deed that includes affordable housing units shall reference the affordable housing unit and the affordable housing agreement.
(2) A copy of the recorded deed and AHA for each unit shall be filed with the MHC.
D. Certificate of occupancy. No certificate of occupancy shall be issued for an affordable housing unit unless the Housing Director shall certify that the sale or rental complies with the terms of this agreement and these regulations and has executed the AHA for that unit.
A. Distribution of application for certification of eligibility.
(2) The mailing envelope for the packet shall clearly indicate that it contains dated material to apply for affordable housing.
B. Return of application for certification of eligibility.
(1) The completed application for certification of eligibility shall be mailed or delivered in a sealed envelope to the office of the Director, by the date and time indicated in the application instructions.
(2) It is the applicant's sole responsibility to make certain that the application for certification of eligibility is delivered on time, and in a proper manner. The MHC will assume no responsibility for any application that is delivered late, delivered in an unacceptable fashion as described in this article, or delayed or lost in the mail.
(3) The return envelope containing the application for certification of eligibility is to be addressed to the MHC as indicated in the application instructions.
(4) The return envelope shall bear the application number in the lower left corner of the addressed side of the envelope.
(5) The return envelope shall be no larger than a standard #10 business envelope.
C. Disclosure. The developer shall advise all applicants of their rights to secure a copy of any public offering statement, prospectus, affordable housing agreement or their equivalent.
D. Confidentiality. The applicant shall be advised that all information and material provided as part of the application and certification process shall be kept confidential and shall be used by the developer, mortgage lenders and Township agencies and departments only as needed to determine the applicant's eligibility for certification for affordable housing. Information will not be disclosed to any other parties without the written permission of the applicant.
(1) Qualifications must be listed defining residency.
(a) Anyone who lives in Montville Township;
(b) Anyone who is employed in Montville Township on a full time basis (more than 20 hours per week) but lives elsewhere;
(c) Anyone who has a parent, child, brother or sister who lives in Montville Township.
(2) There shall be a means of identifying which one of the above qualifications apply.
(1) Maximum limits shall be listed in table form for low and moderate income by family size.
(2) The application shall provide a sample listing of those items that are includable as income such as:
(a) Earned income such as wages, salaries, commission, fees, tips, etc.;
(b) Social security;
(c) Trusts, insurance, annuities, and pensions;
(d) Interest and dividends;
(e) Rental income;
(f) Capital gains;
(g) Tax exempt income;
(h) Income attributed to the net value of non-income-producing assets;
(i) Alimony and child support.
G. Instructions for completion and return of application.
(1) Required information;
(2) When and where to return application;
(3) Description of envelope and how it is to be marked;
(4) Phone number and available times when the applicant can call the developer with questions.
H. Occupant(s) information.
(1) Name of the principal occupant/applicant;
(2) Names of all other persons who will occupy the unit;
(3) Current addresses of all occupants;
(4) Social security numbers of all occupants;
(5) Ages of all occupants;
(6) Relationship of all occupants to the applicant;
(7) Total income of each occupant over 18 years of age;
(8) Type of unit requested;
(9) Need for handicapped access for any occupant;
(10) Signature of applicant and spouse, if married.
I. Income statements of each occupant over 18 years of age.
J. Guidelines for family size and size of unit.
K. Unique application number.
L. Description of development.
(1) Name of development;
(3) Name, address and phone number of developer;
(4) Name, address and phone number of developer's agent;
(5) Total number of affordable housing units in the development with a breakdown by classification and size;
(6) Number of affordable housing units available in the current phase of development with a breakdown by classification and size.
M. Table of estimated costs.
(1) Costs shall be listed by unit size and classification, as applicable;
(2) Purchase price;
(3) Down payment at 5%;
(4) Mortgage amount;
(5) Interest rate assumed for a thirty-year fixed rate conventional mortgage;
(6) Monthly cost for mortgage or rent;
(7) Property taxes;
(8) Homeowners' insurance;
(10) Association fees.
N. Items needed for certification interview.
(1) Tax returns of all occupants for the last three years;
(2) Proof of residency; or
(3) Proof of employment; or
(4) Proof of relationship to a person who lives in Montville;
(5) Current bank statements;
(6) Certified appraisal and proof of mortgage amount of all owned real estate;
O. Brief description of priority listing process.
(5) No need to be present;
(6) Priority list for this development only;
P. Certification of accuracy of all information.
(1) The applicant shall sign a statement certifying that all information provided in the application is accurate and true to the best of the applicant's knowledge and that the applicant realizes that willfully providing false or misleading statements may subject him/her to sanctions as provided by law.
(2) The applicant shall also sign the necessary release forms to allow the developer to request verification of information contained in the application, including but not limited to credit history and criminal and driving records.
(3) Willful misrepresentation of facts, criminal record or poor credit history are each grounds for denial of certification.
Q. Duplicate applications. Statement that there are no duplicate applications submitted by any occupants listed and that submission of duplicate applications will disqualify the similar applications drawn first in the lottery process.
(1) The first-come-first-served format priority list is to allow everyone on their respective waiting lists to be notified in a similar and equitable manner that affordable housing units will be offered.
(2) The first-come-first-served format priority list will provide ample and equal opportunity for all who are interested to apply without placing senior citizens, handicapped and those who must work at a disadvantage.
(3) This format provides for ranking of applicants in a nonbiased manner.
B. Waiting lists.
(1) All applicants whose names are registered with the MHC on either the resident or nonresident waiting lists more than 10 days prior to the priority list will be eligible to participate in the respective priority listings.
(2) Names added to the resident list within 10 days of a resident priority list will be ineligible for that priority listing.
(3) The MHC shall provide the developer with its complete list of applicants who are on the appropriate active waiting list(s).
(4) Names of additional applicants who apply after the transmittal of the waiting list, but more than 10 days before the priority listing, will be forwarded to the developer.
(5) Names added to the resident waiting list within 10 days of the priority listing or after the priority listing will be eligible for participation in any subsequent nonresident priority listing for that development.
(1) The priority listing will be held not less than 30 days nor more than 60 days from the date the applications were initially mailed out to the bulk of the applicants on the waiting list.
(2) On a date certain established for the purpose, interested persons will be required to submit their applications in the manner prescribed below.
D. Certification of applicants.
(1) The certification of applicants as eligible by income to purchase or rent affordable housing shall be the responsibility of the owner/developer. Applications shall be pre-numbered and distributed as noted within these regulations. Said applications shall be accepted and given priority on a first-come-first-served basis, except that only applications from Montville Township residents, as defined herein, will be accepted for the initial 15 days of the marketing period for each phase of development.
(a) Preliminary applications must be returned in person to a designated official of the MHC at the Township Municipal Building, 195 Changebridge Road, Montville, on the date specified on the application form. The MHC official shall date stamp and number all applications in the order in which they are turned in, and keep a log of all applications. In the event that more than one completed application is received at essentially the same time, then the application which bears the lowest number as entered by the developer/owner on application envelope will receive priority.
(b) All applications will be maintained on a waiting list by income and appropriate bedroom size, to be turned over to the owner/developer as needed to complete and fill remaining units per certification process.
(c) Once the list of residents interested in obtaining affordable housing units has been certified by the Director, the developer shall take possession and responsibility for proceeding with meeting with those persons so as to determine eligibility. Developer/owner shall proceed in the order previously established by the MHC on a first-come-first-served basis to review of qualifications for eligibility.
(2) A list of the application and priority numbering in order received shall be posted at the office of the MHC for public inspection for two weeks following the priority listing. Information concerning the identity of the applicants shall not be considered public information.
E. Nonresident priority listing.
(1) If the number of applications for certification of eligibility submitted produces less than 125% of the total number of affordable housing units to be offered at the development, then the Director shall direct that Phase II of the marketing plan be initiated within 15 days.
(2) The developer shall follow the same guidelines and procedures for the nonresident priority listing and certification as described for the resident priority listing and certification in this article.
(1) The developer, or an individual or firm hired for the purpose, shall be responsible for certifying applicants as eligible for affordable housing units until all of the affordable housing units at the development have been filled.
(2) After all affordable housing units in a development have been filled, the MHC will be responsible for certifying additional applicants.
B. Verification of information.
(a) The developer will first substantiate that the application for certification of eligibility was submitted by the individual named on the waiting list, and to whom the application number was assigned to make certain that the individual registered with the MHC was the applicant. This is also to avoid duplicate applications being submitted by one person using other people's applications, or submission of multiple applications for one affordable housing unit by separate individuals within the same family unit who will all reside in the same affordable housing unit.
(a) The developer may request any additional information from the applicant beyond that which is included in the application for certification of eligibility, which is deemed by the developer to be necessary to determine whether the applicant meets the eligibility criteria for certification.
(b) The developer shall allow an applicant at least 14 days to comply with a request for additional information and, if necessary, shall grant an additional seven-day extension.
(1) Application. There shall be an application fee, which is set forth in Chapter 169, Fee Schedule, for precertification for the Montville Township resale list which shall be good for a one-year period from the date of certification. The fee shall be paid by the applicant. Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
(2) Deposits. Upon certification, the developer may require a nonbinding deposit which does not exceed $250. Said deposit shall be fully refundable in the event that the applicant does not qualify for a mortgage, no unit is available, or the applicant refuses an available unit.
(3) Certification administration.
(a) There shall be a resale certification fee, which is set forth in Chapter 169, Fee Schedule, payable to the Township of Montville for administrative expenses of certification of an applicant for a unit to be resold or rerented by the MHC. Such fee is to cover costs of the certification process, monitoring the price controls during occupancy for resale units, monitoring income each year in rental units, and other administrative salaries and costs associated with the oversight of affordable housing. Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
(b) The MHC shall review the fee structure annually, or more frequently if it's deemed necessary. The MHC shall recommend changes in the fee structure to the Township Committee.
(c) The certification administration fee shall be charged to the owner of a condominium-type unit as a cost of sale, and to the owner/developer or landlord, as appropriate, for rental units.
(d) Payment and collection of the administrative fee shall be a precondition of execution of the affordable housing agreement by the Director.
D. Certification process.
(1) Waiting list of certified applicants.
(a) The developer shall interview a sufficient number of applicants from the priority list in order to certify the lesser of 125 applicants or all of the those on the priority list. The MHC may establish a smaller number at its discretion.
(b) After all of the then available affordable housing units have been filled, the developer shall maintain a list of certified applicants for each category of income level and unit size equal to not less than 150% of the number of affordable housing units in that classification remaining to be marketed in the entire development.
(c) For example, if there are 20 one-bedroom low-income units yet to be built in the development, then the development shall maintain an inventory of certified applicants for that classification of at least 30 names.
(d) This list must be kept current until all units have been marketed.
(2) Documentation of income.
(a) Adequate documentation of low- or moderate-income status, as required to be disclosed in the application for certification of eligibility, must be presented to and reviewed by the developer.
(b) Every occupant 18 years of age or over, who will live in the unit and receives income, shall be required to provide income documentation.
(c) Such documentation must include: copies of federal and state tax returns for the prior two years, including W-2s, 1099s and all attached schedules, an income statement, a statement of assets and liabilities, gains from sale or disposition of property and any other income-related information necessary to present a complete, accurate and true statement of the income of the applicant.
(d) Income shall be figured on the basis of gross receipts, with no adjustments allowed. For the purposes of this article, all income realized or unrealized, taxable or tax exempt, shall be considered.
(e) Income shall be attributed to assets for which no other accountable income is given, such as real estate and stock holdings, at 5.25% of the net value. Assets of depreciable personal property, such as vehicles, furnishings and jewelry, shall be exempt from valuation.
(f) The applicant shall be given at least 14 calendar days to provide the necessary supporting documents. The fourteen-day period shall begin on the date of the certification interview at which the information was requested, or from the date the applicant receives the formal application and request if such request is sent by mail.
(g) If the applicant does not provide the income documentation within the 14 days provided above, then the developer shall notify the applicant of the intent to deny the application for failure to provide the requested information. The notice of intent to deny shall be sent by certified mail, return receipt requested.
 The applicant shall be given at least 10 days from delivery of the letter to provide the outstanding information.
 The letter of intent to deny shall state explicitly what additional information is needed to comply and the date by which the information is to be provided.
 The letter shall state that the failure to comply will result in a denial of the application.
 The developer shall have the discretion to extend the ten-day period. If extensions are granted, the developer shall notify the applicants in writing by first class mail.
(3) Certified applicants will be listed in the same order as designated on the priority list separated by income classification and bedroom size. Certified applicants will be offered units as they are available in the order established in this section.
(4) Notification to certified applicants.
(a) The developer shall notify all certified applicants of their eligibility by certified mail, return receipt requested.
(b) The notification shall state the name and address of the applicant and of all persons who will be occupying the unit; whether the applicant qualifies for a low-income or moderate-income unit; the size of the unit; and the basis of the classification.
(c) The applicant must be advised the number of days he/she has to accept or reject the offer of a unit and instructions on how to proceed.
(d) The applicant shall be advised of his appeal rights to the MHC if he/she disagrees with the certification classification of income or unit size and shall be given instructions on how to initiate the appeal.
(5) Notification of denial.
(a) The developer shall notify the applicant in writing by certified mail, return receipt requested, that he/she has been denied and the explicit basis for the denial.
(b) The notice of denial shall advise the applicant of his/her appeal rights to the MHC if he/she disagrees with the decision and shall be given instructions on how to execute those appeal rights.
E. Duration of certification.
(1) A certification of eligibility shall be valid for 12 months from the date of the certification.
(2) If at the end of 12 months additional units remain to be marketed, all remaining certified applicants will be contacted by the MHC to determine their continued interest in obtaining affordable housing in the development. Applicants who indicated a continued interest shall be asked to submit updated documentation to the developer to recertify their eligibility.
(1) A certification may be revoked by the developer or the MHC upon evidence of the following:
(a) False, misleading or incomplete statements or information on the application for certification of eligibility or at the interview;
(b) A change in the household income of the applicant prior to the purchase or rental of the unit such that the income level of the applicant would no longer meet the eligibility criteria for which he/she was certified;
(c) Failure of the applicant to secure mortgage financing within 60 days of submission of a mortgage application;
(d) Adjudicated criminality on the part of any member of the household;
(e) Poor credit history.
(a) The developer shall notify the applicant in writing by certified mail return receipt requested of the revocation of his/her certification noting the specific reasons for the action.
(b) The applicant shall be advised of his/her appeal rights to the MHC if he/she disagrees with the revocation of his/her certification, and shall be given instructions on how to initiate the appeal.
(c) If the MHC has initiated the revocation of certification, or questions the ineligibility of an applicant, the MHC shall notify the applicant of its intent to revoke the certification in writing by certified mail return receipt requested. The applicant will be instructed to appear before a hearing of the MHC at a regularly scheduled meeting, or a special meeting called for the purpose, such hearing to occur not less than 14 days from the date of the letter of intent to revoke.
(d) Waiver of his/her rights to a hearing or failure to appear shall constitute acceptance of the revocation by the applicant, and forfeiture to any future rights of appeal.
G. Review by the MHC.
(1) Rights of the Director.
(a) In all cases, the Director and the MHC retain the right to review all records and files kept by the developer related to affordable housing and the certification of applicants.
(b) Where the Director believes that continuation of a procedural error will result in further errors or an irreversible harm, then the Director may instruct the developer to halt the action immediately, for a period not to exceed 31 days.
 The Director shall notify the developer, the MHC and the Township Committee in writing of his/her action.
 The Director shall attempt to mediate the problem with the developer. If successful, the Director shall notify the MHC and Township Committee of the outcome.
(2) Rights of the MHC.
(a) Where the Director has found that the developer has made procedural errors in the certification process that are not sufficient in his/her discretion to immediately halt the activity, the Director shall notify the MHC of the problem and recommend corrective action.
(b) Upon review of the Director's findings and recommendations, the MHC shall notify the developer in writing advising him of the problem and direct the developer to discontinue the action and institute whatever corrections are required. The developer may request a meeting with the MHC to discuss any areas of disagreement.
(a) If the issue cannot be resolved between the Director and the developer, then the MHC shall hold a hearing at its next regular meeting, or at a special meeting called for the purpose.
(b) The MHC shall hear testimony on the record from the Director, the developer and any other interested parties regarding the certification procedural errors.
(c) The decision of the MHC shall be considered final. The developer may appeal the decision of the MHC to the Township Committee.
H. Use of prior certification.
(1) Any applicants with a valid certification of eligibility from any developer can submit such along with his completed application in lieu of the necessary documentation to any other developer offering affordable housing units.
(2) Such previous certified applicant must still apply for housing in the development through the priority listing process for that development.
(3) Such applicant shall be ranked according to his/her priority listing drawing number for the subject development and will be given no preference based on his/her standing in any previous priority listings.
(4) The application may still be subject to full review by the developer, and the developer may require submission of supporting documentation if there is some irregularity, and the developer may deny the application for cause.
I. Acceptance of units.
(1) Only individuals who are certified as eligible under this article shall be permitted to purchase or rent affordable housing units.
(2) An applicant who has been certified as eligible for housing will be called in for an interview by the developer to explain financing alternative, to explain the provisions of the affordable housing agreement, and to sign contracts.
(a) This interview shall constitute a formal offer for sale or rental of an affordable housing unit.
(b) The applicant will have 15 days from the date of the formal offer to advise the developer of his/her intent to accept or reject a unit.
(c) The applicant will be afforded reasonable opportunity to secure financing through the developer, a government sponsored program or commercial lender.
(d) The applicant will have up to 60 days from his mortgage commitment date, or from the date of formal offer on a rental unit, to close on the unit or sign the lease agreement. At the discretion of the developer with the prior approval of the MHC, the developer may extend the period for a maximum of 60 days. After this period, approval will be required in writing from the MHC.
(3) Any applicant who refused to accept a unit in a timely fashion or cannot secure financing will be dropped from the certification list.
J. Appeals by applicants.
(1) If an applicant contests a decision by the developer regarding the unit size, income classification, denial or revocation of certification, then the applicant shall have the right to appeal such decision to the MHC.
(a) If the applicant wishes to exercise his/her right to appeal, he/she must notify the developer and the Director in writing within five business days from receipt of written notification from the developer.
(b) The letter of appeal must present the applicant's reasons for believing why the action taken by the developer was inappropriate and what the applicant believes should have been the proper action.
(2) The Director, at his discretion, may attempt to mediate the conflict between the applicant and the developer. If a satisfactory conclusion cannot be reached, the Director shall schedule a hearing of the dispute at the next regularly scheduled meeting of the MHC, or at a special meeting called for the purpose.
(3) The MHC shall conduct a hearing of the dispute at which it will accept evidence on the record verbally or in writing from the applicant, the developer and any other interested parties. The decision of the MHC shall be final.
(4) The developer or the applicant shall have the right to appeal the decision of the MHC directly to the Township Committee. Appeal to the Township Committee must be made in writing to the Township Clerk within five business days of the date of the MHC decision.
A. Median income. Household income at the time of certification shall be classified as low or moderate as computed, published and adjusted for household size in the Morris County region by the New Jersey Council on Affordable Housing, or such successor agency designated by the MHC. The MHC shall make such figures available to any interested party.
C. Moderate income. To be eligible for certification for moderate income, the total household income must be less than 80% but greater than 50% of the annual median-family income determined in Subsection A above.
A. Overall distribution.
(1) For each size unit, there shall be an equal distribution of units between low income and moderate income within each development. Where an odd number of units exists, the additional unit shall be assigned to the low-income category.
A. Because of the limited availability of affordable units, the developer and/or the MHC will limit sale or rental of any affordable unit to families of appropriate size and makeup by sex and relationship. For example a single parent and child may be assigned a two-bedroom unit, while a husband and wife will be assigned a one-bedroom unit.
B. Generally, applicants will be referred to available units using the following standard for occupancy as designated by COAH:
(1) A maximum of two persons per bedroom;
(2) Children of the same sex in the same room;
(3) Unrelated adults or persons of the opposite sex other than husband and wife in separate bedrooms;
(4) Children not in the same bedroom with parents.
C. The developer and/or the MHC retain the right to refuse a larger unit to a family of inappropriate size, or makeup, when a waiting list exists which contains an appropriately sized family. For example, a certified family of one can be denied an offering of a three-bedroom unit when a certified family of four or five is available on a waiting list. In all cases the MHC retains the right to review offerings for appropriate family size as part of its oversight authority.
E. If there are insufficient certified applicants for a certain size unit and there are applications pending from the priority list that have not been certified, then the developer shall identify those applications, in priority list order, that would be appropriate for the available size units and certify eligible applicants for that unit.
A. Affordability ranges. In order to ensure that units are affordable to a cross section of income-eligible families, the developer shall establish a range of stratified selling prices for the low- and moderate-income units such that they are affordable to the target family sizes listed below.
(1) Units shall be categorized by low and moderate income.
(2) For purposes of establishing price levels, 50% of the one-bedroom units in both low- and moderate-income categories shall be priced for single person occupancy, and 50% for families of two people.
(3) In a development in which there are efficiency units offered as part of the affordable housing units, then the number of one-bedroom units priced for single persons in Subsection B of this section shall be reduced one for one within the income category.
(4) For purposes of establishing price levels, 25% of the two-bedroom units in both low- and moderate-income categories shall be priced for occupancy by two people, and 75% by families of three people.
(5) For purposes of establishing price levels, 25% of the three-bedroom units in both low- and moderate-income categories shall be priced for occupancy by four people, and 75% by families of five people.
B. Allocated housing costs.
(1) For the purposes of establishing price levels, the developer shall consider that the amount of income that a family will spend for housing shall be calculated as 28% of the ninetieth percentile of the target family size for the unit, except as noted below.
(2) Allocated housing costs shall cover principal and interest, property taxes, homeowners' insurance, and association fees and assessments.
C. Determination of sales price components.
(1) Debt service.
(a) Debt service shall be composed of monthly payments for principal and interest.
(b) The developer shall determine the allocated housing costs for each size unit and income classification being marketed, keeping in mind the pricing requirements of Subsection B of this section above.
(c) The mortgage amount shall assume a 5% down payment.
(d) The interest rate used in the calculation shall be a rate that is available from at least two commercial lenders in Morris County in the business of making mortgage loans to the general public.
(e) The developer shall submit the names of the lenders used and the mortgage rates to the MHC for review and approval.
(2) Fixed charges.
(a) Fixed charges shall be composed of monthly payments for property taxes, homeowners' insurance, and association fees and assessments.
(b) Property taxes shall be calculated and provided by the Tax Assessor of the Township of Montville.
(c) Association assessments and fees can be refigured annually to reflect the proportionate increase in maintenance costs. The association shall provide the MHC with an annual schedule of maintenance fees, from which this increase can be calculated. It will be the responsibility of the association to communicate the increase, as approved by the MHC, to the owners of the units.
(d) An estimate of the cost of a homeowners' policy appropriate for the type of unit being offered shall be calculated using a reasonable level of personal property coverage and at least $100,000 of personal liability and at least $1,000 of medical payments. The developer shall provide the MHC with the criteria used to estimate the figures.
D. Calculation procedures. The following example will serve as the methodology for pricing units for sale. The example prices a one-bedroom moderate-income unit for both a single person and two people. An interest rate of 9.5% is assumed for the mortgage calculation. All figures used in this example are illustrative only and are not be construed as estimates of actual costs.
Allocated housing costs
Less association fees
Mortgage amount (9.5%)
Down payment (5%)
E. Approval by MHC.
(1) The developer shall calculate sales prices for each size unit for both low- and moderate-income levels, subject to review and approval by the MHC.
(2) The MHC shall review the price stabilization plan and sales price scale prepared by the developer according to Township ordinance, and shall approve them for each phase of development construction.
(3) Sales prices will be refigured for each phase of development with current interest rates and current fixed charges.
F. Owner's responsibility. All contract negotiations, mortgage approvals, closing costs, legal fees and final closing arrangements will be the responsibility of the purchaser and his/her legal representatives as he/she may select. Costs that must be paid at the time of closing may include realty transfer fee, attorney's fees, points required by the mortgage lender, payment for personal property included in the agreement to purchase, inspection fees, and prepayments for taxes and insurance. An estimate of the total amount of these costs shall be included in the agreement to purchase. A copy of the signed affordable housing agreement shall be sent to the MHC for a determination that the proposed deed transaction is valid.
(1) The developer shall submit a plan for resale to ensure that the units remain affordable to low- and moderate-income households for at least 30 years.
(2) The maximum resale price for which an owner may sell the unit shall be limited to the purchase price increased by, or plus the following:
(a) The percentage change of the HUD median income between the time of purchase and the time of sale that was used to calculate the purchase price, or other recognized standard adopted by the MHC.
(b) Capital improvements previously approved by the MHC as described below.
(3) However in no event shall the maximum resale price established by the MHC be lower than the last recorded purchase price.
(5) The last recorded purchase price will always be the base price at the time of resale.
(a) Costs of permanent improvements shall not exceed 10% of the selling price.
(b) Permanent improvements shall not include replacement of any existing capital item.
(c) The owner should seek approval of the MHC before any capital improvement or monetary outlay is made to determine if the outlay may be recouped at the time of sale.
 The request for determination should be made in writing to the Director.
 A written response from the MHC approving or denying the proposed expense shall be provided to the owner from the Director.
A. Marketing plan, priority listing and certification.
(1) The developer shall prepare a marketing plan similar to the plan discussed in § 73-6 above with appropriate changes made in it to reflect rental units instead of units for sale. Except for those particular areas specific to sale units, the marketing plan procedure for sale units shall be followed for rental units, and is incorporated herein in its entirety.
(2) Rent levels for low and moderate incomes and for each apartment size shall be included in the marketing plan and in the application for certification of eligibility.
(a) The developer, upon exhausting names certified from the priority list, may then request a secondary list from the MHC. Said list will be a computer-generated listing compiled from the existing resident waiting list as referenced in § 73-3B above. Said list shall be priority numbered through computer sorting and shall contain the sealed signature of the MHC Housing Director. This list shall be the official "secondary" priority list utilized for renting purposes only.
(b) Should a complaint be filed as to deviation from compliance with the order of names supplied on the secondary list, the developer shall be required to submit to the MHC Director no later than 30 days from the date of the request of the Director to supply documentation supporting compliance with priority listing and procedures provided for herein (i.e., proof of mailings, legal affidavits).
(a) Lease terms shall be for one year.
(b) Tenants shall be income certified by the developer at the expiration of their leases if there are still units to be marketed within the development.
(c) Tenants shall be income certified by the MHC at the expiration of their leases if all of the units have been marketed within the development.
(d) Any reference to the developer in the recertification process after which time the MHC has assumed responsibility for recertification shall apply to the MHC.
B. Rent levels.
(1) Allocated housing costs.
(a) The developer shall assume that 30% of the family's gross monthly income will be available for housing related expenses, based on the ninetieth percentile of the ceiling income of the target family size for low and moderate incomes as denoted in § 73-14B.
(b) Housing expenses are to be inclusive of rent, all services and maintenance fees, utilities, and association assessments and fees. Any charges paid directly by the tenant shall reduce the rent level.
(2) Changes in rent level.
(a) Rent levels may be changed annually at the renewal of each lease.
(b) Rent levels may not be changed for individual apartments unless rents have been changed for all apartments of the same classification, or unless a change in occupancy or income has occurred.
(c) The price of a rental housing unit may increase annually based on the percentage increase in median income for each housing region as determined from the uncapped § 73-8 income limits, published by HUD as defined in N.J.A.C. 5:92-1.3, or other recognized standard adopted by the MHC.
C. Duration of eligibility.
(1) Low income.
(a) A tenant shall cease to remain qualified for low-income affordable housing if his/her total household income exceeds 125% of the appropriate low-income level.
(b) A tenant who ceases to qualify for low income, but still qualifies for moderate income, may continue to occupy the unit, but will pay the rent level for that unit as it would be priced for a moderate-income family of the same size.
(2) Moderate income.
(a) A tenant shall cease to remain qualified for moderate-income affordable housing if his/her total household income exceeds 125% of the appropriate moderate-income level.
(b) The developer may charge the tenant the rent payable for a market value unit of the same number of bedrooms within the development until the tenant vacates the unit.
(c) When the unit is vacated, it will revert to the affordable income level at which it was originally leased.
(3) Annual certification reviews.
(a) Review and recertification of a tenant's income level and qualification shall be conducted no more than 90 days nor less than 60 days prior to the end of the year's lease.
(b) The tenant shall be notified within 10 business days of the findings of the review.
 Notification of findings shall explain any changes in status and the effect it will have.
 The notification shall also explain the tenant's rights and the process of appeal.
(4) Rights of appeal.
(a) The tenant shall have the right to appeal the decision of the developer or the Director regarding a change in eligibility status to the MHC.
(b) The tenant shall have the right to appeal the decision of the MHC to the Township Committee.
A. Notice of intent.
(1) Upon decision to sell or vacate an affordable unit, the current owner/occupant shall submit an offer to sell or vacate to the MHC within 90 days of the intended date to sell or vacate.
(2) The offer to sell or vacate shall list the name, address and telephone number of the owner; the date the unit was purchased; the price of the unit or rent level; location of the unit; a statement of compliance with the price affordability controls; and copies of cost statements of any improvements previously approved by the MHC.
(3) The offer to sell or vacate shall be available at the office of the Housing Director.
B. Certification of purchaser/tenant.
(1) Upon receipt of an offer to sell or vacate, the MHC or the developer, as appropriate, shall certify an eligible applicant as per the certification procedures outline above.
(2) Wherever possible, when units are resold or rerented they should retain their original classification for low or moderate income.
(3) The last sale price of the unit shall form the basis for the resale price.
(4) The MHC shall approve each resale or rerental in writing.
C. Inability to certify a purchaser.
(1) In the event the MHC is unable to certify an appropriate purchaser, the current owner shall take steps to market the unit in an appropriate fashion, including proper advertising, for a period of 60 days. If, after the owner has demonstrated an inability to market the unit, with due diligence, to a qualified purchaser, then the MHC may, at its discretion, grant the owner an exemption so that he/she may sell the unit to the alternate income level, or under market conditions to a nonqualified purchaser.
(2) Alternatively, the municipality may have the option to purchase the unit for the maximum price permitted.
(3) In all cases, resale controls shall remain in effect even if the unit was sold to the municipality or to a market purchaser.
D. Exempt transaction.
(1) The following title transactions shall be deemed nonsales and the Township shall provide the owner receiving title with written confirmation of the exemption to those restrictions that determine occupancy of the unit:
(a) Transfer of ownership between husband and wife;
(b) Transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or separation;
(c) Transfer of ownership between family members by will or intestate succession;
(d) Transfer of ownership through an executor's deed to any person;
(e) Transfer of ownership by court order.
(2) An exempt transfer of ownership does not terminate the resale restrictions or existing liens on the property. All liens must be satisfied in full prior to subsequent resale, and all subsequent resale prices must be calculated using the resale price index in compliance with the terms of the affordable housing agreement and the rules and regulations specified herein.
A. At the end of the period within which affordability controls are effective on sale units (30 years as per ordinance), the municipality retains the right to recapture the public investment in affordable housing; except that homeowners living in affordable housing units at the expiration of affordability controls on that unit are entitled to receive 1% of the increment between the restricted price and the actual sales price for every year the household has owned and lived in the housing unit.
B. Any moneys recaptured by the municipality shall be invested in a housing trust fund to maintain its existing housing stock and to subsidize future housing activity.
(1) The MHC shall develop and maintain a comprehensive recordkeeping system to oversee affordable housing in Montville Township. Such recordkeeping shall include:
(a) A log indicating the disposition of all applications for affordable housing;
(b) A waiting list of applicants who have expressed interest in affordable housing divided into resident and nonresident categories.
(2) The MHC shall maintain a file on each development that contains affordable housing units.
(3) The MHC shall maintain a file on each unit of affordable housing, including size of unit, improvements, names of occupants and family size of occupants, income level of occupants, characteristics of household.
B. Government financing programs. The MHC shall maintain a file on government subsidy programs available for affordable housing units, and make recommendations to the Township Committee in connection therewith.
C. Annual reports of the developer.
(1) The developer, or its successor, tenant or condominium association, or any other party of interest, shall file annual affordable housing occupancy reports by January 31 of each year, covering the period from January 1 through December 31 of the previous year.
(2) Content of the report.
(a) Total number of affordable housing units;
(b) Total number of affordable housing units occupied as of December 31 of the year in question;
(c) Total number of affordable housing units sold or leased during the year in question;
(d) Total number of affordable housing units currently available for sale or rent;
(e) Name, address and phone number of contact person responsible for completion of the report.
D. Reporting requirements during certification process.
(1) The developer will advise the MHC of the status of all applicants during the certification process. Such listing shall be updated on a regular basis in intervals not to exceed every 60 days.
(2) The report shall list all pending applications and shall identify all actions taken on applications regarding certification, intent to deny certification, denial or revocation of certification, refusal of an applicant to accept a unit or the inability of the applicant to secure financing, and contracts closed for sale or lease.
(3) Copies of letters of denial or revocation shall be sent to the Director at the same time they are sent to the applicant.
(4) The developer shall notify the Director any time a unit becomes vacant or if the developer is notified that a unit will become vacant during the marketing phase.
A. Mortgage restriction. Any mortgage for an affordable housing unit shall contain a provision requiring the holder of it to notify the Township in the event of the institution of a foreclosure action. The Township shall have the right to intervene at all times in any foreclosure action.
B. All foreclosures shall be governed in connection with resale controls in accordance with the provision of N.J.A.C. 5:93-9 et seq.
(1) Upon a violation of any of the provisions of the affordable housing agreement by the owner of an affordable housing unit, the Township may give written notice to the owner specifying the nature of the violation and requiring a correction within a reasonable period of time.
(2) The owner shall be obligated to notify the Township that the violation has been corrected within the reasonable time period or that additional time is requested.
(3) If the owner does not forward written notification, as required, or correct the violation within the time specified, the Township may declare a default of the affordable housing agreement.
B. Forfeiture of interest.
(1) The interest of any owner may, at the option of the Township, be subject to forfeiture in the event of substantial breach of any of the terms, restrictions and provisions of the affordable housing agreement which remains uncured for the period of 60 days after service of the written notice of violation upon the owner.
(2) The notice of violation shall specify the particular infraction and shall advise the owner that his or her right to continued ownership may be subject to forfeiture if such infraction is not abated within 60 days of receipt of the notice.
(1) The provisions of this section may be enforced by the Township by court action seeking a judgment which would result in the termination of the owner's equity or other interest in the unit. Any judgment shall be enforceable as if same were a judgment of default of the purchase money mortgage and shall constitute a lien against the particular affordable housing unit.
(2) A court judgment of default shall obligate the owner to accept the first offer to purchase from any certified applicant, who has been referred to the owner by the Township, with such offer to purchase being no more than the maximum permitted resale price as permitted by the terms of the affordable housing agreement and these regulations.
(3) The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions of the affordable housing agreement until such time as title is conveyed to a new owner.
[Adopted 2-24-2009 by Ord. No. 2009-07]
- ADMINISTRATIVE AGENT
- The entity responsible for administering the affordability controls of some or all units in the affordable housing program for the Township of Montville to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households.
- MUNICIPAL HOUSING LIAISON
- The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for the Township of Montville.
A. Serving as the Township of Montville's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents, and interested households;
B. Monitoring the status of all restricted units in the Township of Montville's Fair Share Plan;
C. Compiling, verifying, and submitting annual reports as required by COAH;
D. Coordinating meetings with affordable housing providers and administrative agents, as applicable;
E. Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH;
A. Affirmative marketing.
(1) Conducting an outreach process to insure affirmative marketing of affordable housing units in accordance with the affirmative marketing plan of the Township of Montville and the provisions of N.J.A.C. 5:80-26.15; and
(2) Providing counseling or contracting to provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law.
B. Household certification.
(1) Soliciting, scheduling, conducting and following up on interviews with interested households;
(2) Conducting interviews and obtaining sufficient documentation of gross income and assets upon which to base a determination of income eligibility for a low- or moderate-income unit;
(3) Providing written notification to each applicant as to the determination of eligibility or noneligibility;
(4) Requiring that all certified applicants for restricted units execute a certificate substantially in the form, as applicable, of either the ownership or rental certificates set forth in Appendixes J and K of N.J.A.C. 5:80-26.1 et seq.;
(5) Creating and maintaining a referral list of eligible applicant households living in the housing region and eligible applicant households with members working in the housing region where the units are located; and
(6) Employing the random selection process as provided in the affirmative marketing plan of the Township of Montville when referring households for certification to affordable units.
C. Affordability controls.
(1) Furnishing to attorneys or closing agents forms of deed restrictions and mortgages for recording at the time of conveyance of title of each restricted unit;
(2) Creating and maintaining a file on each restricted unit for its control period, including the recorded deed with restrictions, recorded mortgage and note, as appropriate;
(3) Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are effectuated and properly filed with the appropriate county's register of deeds or county clerk's office after the termination of the affordability controls for each restricted unit;
(4) Communicating with lenders regarding foreclosures; and
(5) Ensuring the issuance of continuing certificates of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
D. Resale and rental.
(1) Instituting and maintaining an effective means of communicating information between owners and the administrative agent regarding the availability of restricted units for resale or rental; and
(2) Instituting and maintaining an effective means of communicating information to low- and moderate-income households regarding the availability of restricted units for resale or rerental.
E. Processing request from unit owners.
(1) Reviewing and approving requests from owners of restricted units who wish to take out home equity loans or refinance during the term of their ownership;
(2) Reviewing and approving requests to increase sales prices from owners of restricted units who wish to make capital improvements to the units that would affect the selling price, such authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms and the cost of central air conditioning systems; and
(3) Processing requests and making determinations on requests by owners of restricted units for hardship waivers.
(1) Securing annually lists of all affordable housing units for which tax bills are mailed to absentee owners and notifying all such owners that they must either move back to their unit or sell it;
(2) Securing from all developers and sponsors of restricted units, at the earliest point of contact in the processing of the project or development, written acknowledgement of the requirement that no restricted unit can be offered, or in any other way committed, to any person, other than a household duly certified to the unit by the administrative agent;
(3) The posting annually in all rental properties, including two-family homes, of a notice as to the maximum permitted rent together with the telephone number of the administrative agent where complaints of excess rent can be made;
(4) Sending annual mailings to all owners of affordable dwelling units, reminding them of the notices and requirements outlined in N.J.A.C. 5:80-26.18(d)4;
(5) Establishing a program for diverting unlawful rent payments to the municipality's affordable housing trust fund or other appropriate municipal fund approved by the DCA;
(6) Establishing a rent-to-equity program;
(7) Creating and publishing a written operating manual, as approved by COAH, setting forth procedures for administering such affordability controls; and
(8) Providing annual reports to COAH as required.
G. The administrative agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.