[HISTORY: Adopted by the Mayor and Council
of the Borough of Mendham 7-27-2020 by Ord. No. 06-2020.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance repealed former Ch. 60, Affordable
Housing, comprised of Art. I, Affirmative Marketing, adopted 7-15-1996
by Ord. No. 5-96.
A.Â
This chapter is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
and that low- and moderate-income households shall occupy these units.
This chapter is also intended to ensure that any site that benefits
from a rezoning, variance or redevelopment plan approved by the Borough
that results in multifamily residential development of five dwelling
units or more produces affordable housing at a set-aside rate of 20%.
This chapter shall apply except where inconsistent with applicable
law.
B.Â
The Borough of Mendham Planning Board shall adopt a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. (hereinafter "Fair Share Plan"). The Fair Share Plan
shall subsequently be endorsed by the governing body. The Fair Share
Plan shall describe how Mendham Borough shall address its fair share
of low- and moderate-income housing as documented in the Fair Share
Plan itself, the Settlement Agreement entered into between the Borough
and Fair Share Housing Center ("FSHC") on December 26, 2019, last
signed January 2, 2020 (hereinafter "FSHC Settlement Agreement"),
and the court order approving same, which was entered by the Court
on January 24, 2020, after a properly noticed fairness hearing.
C.Â
The Borough of Mendham shall track the status of the implementation
of the Fair Share Plan.
The following terms when used in this chapter shall have the
meanings given in this section:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.), as has been subsequently amended.
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.[1]
The entity responsible for the administration of affordable
units in accordance with this chapter, applicable COAH regulations
and the Uniform Housing Affordability Controls (UHAC) (N.J.A.C. 5:80-26.1
et seq.).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; in the case of an ownership unit,
that the sales price for the unit conforms to the standards set forth
in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in
the case of a rental unit, that the rent for the unit conforms to
the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development, all or a portion of which consists
of restricted units.
A development included in the Borough's Fair Share Plan,
and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in the Borough's Fair Share Plan prepared
or implemented to address the Borough's fair share obligation.
A housing unit proposed or created pursuant to the Act,[2] credited pursuant to applicable COAH regulations, the
FSHC Settlement Agreement, or an order of the Court.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
The development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The New Jersey Council on Affordable Housing.
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
A development containing both affordable units and market-rate
units. Inclusionary developments must have a 20% set aside of affordable
units if the development has five or more units and is a for-sale
project, or a 15% set-aside if the development is a rental project.
This term includes, but is not necessarily limited to: new construction,
the conversion of a nonresidential structure to residential and the
creation of new affordable units through the reconstruction of a vacant
residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by the Department.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class
A beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by the Department's adopted Regional Income Limits
published annually by the Department.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
The Borough of Mendham will use the following mechanisms to
satisfy its affordable housing obligations:
A.Â
A rehabilitation program.
(1)Â
The Borough of Mendham and FSHC have agreed that the Borough's
indigenous need rehabilitation obligation is nine units. The Borough
shall continue to sponsor a local rehabilitation program sufficient
to satisfy its present need obligation of nine units and continue
to participate in Morris County's Rehabilitation Program. The
Borough shall establish a rehabilitation program manual. In the event
the Borough satisfies its rehabilitation obligation, it will continue
to implement its rehabilitation program, and any additional units
that are rehabilitated may be credited towards any future affordable
housing obligations, if permitted by applicable law and regulations.
The Borough will continue its rehabilitation program to update and
renovate deficient housing units occupied by low- and moderate-income
households such that, after rehabilitation, these units will comply
with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
The Borough will continue to rehabilitate housing units to improve
its housing stock and to continue to provide indigenous need affordable
units.
(2)Â
All rehabilitated rental and owner-occupied units shall remain affordable
to low- and moderate-income households for a period of 10 years (the
control period). For owner-occupied units the control period will
be enforced with a lien, and for renter-occupied units the control
period will be enforced with a deed restriction.
(3)Â
The Borough of Mendham shall dedicate an average of $10,000 for each
unit to be rehabilitated through this program, reflecting the minimum
hard cost of rehabilitation for each unit.
(4)Â
The Borough of Mendham will continue to administer the Rehabilitation
Program in accordance with N.J.A.C. 5:93 et seq.
(5)Â
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9
and UHAC requirements, but shall be administered in accordance with
the following:
(a)Â
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(b)Â
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(c)Â
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9 or the standards issued by a New
Jersey administrative agency with proper authority to issue such standards.
(d)Â
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
B.Â
Percentage of mandatory set-asides for all future residential developments.
(1)Â
If the Borough or a Borough Planning Board or Zoning Board of Adjustment
permits the construction of multifamily or single-family attached
residential development that is "approvable" and "developable," as
defined at N.J.A.C. 5:93-1.3, the Borough or the Borough's Planning
Board or Zoning Board of Adjustment shall require that 20% of the
residential units be set aside for low- and moderate-income households.
This requirement shall apply beginning with the effective date of
this chapter to any multifamily or single-family attached residential
development, including the residential portion of a mixed-use project,
which consists of five or more new residential units, whether permitted
by a zoning amendment, a variance granted by the Borough's Planning
Board or Zoning Board of Adjustment, or adoption of a redevelopment
plan or amended redevelopment plan in areas in need of redevelopment
or rehabilitation. For any such development for which the Borough's
land use ordinances (e.g., zoning or an adopted redevelopment plan)
already permitted residential development as of the effective date
of this chapter, this requirement shall only apply if the Borough
or the Borough's Zoning Board of Adjustment permits an increase
in approvable and developable gross residential density to at least
twice the permitted approvable and developable gross residential density
as of the effective date of this chapter. Nothing in this subsection
precludes the Borough or the Borough's Zoning Board of Adjustment
from imposing an affordable housing set-aside in a development not
required to have a set-aside pursuant to this subsection consistent
with N.J.S.A. 52:27D-311(h) and other applicable law. This requirement
does not create any entitlement for a property owner or applicant
for a zoning amendment, variance, or adoption of a redevelopment plan
or amended redevelopment plan in areas in need of redevelopment or
rehabilitation, or for approval of any particular proposed project.
This requirement does not apply to any sites or specific zones otherwise
identified in the Borough's Settlement Agreement with FSHC dated
December 28, 2019, or in the Borough's Housing Element and Fair
Share Plan, for which density and set-aside standards shall be governed
by the specific standards set forth therein.
(2)Â
Furthermore, this section shall not apply to developments containing
four or less dwelling units. All subdivision and site plan approvals
of qualifying residential developments shall be conditioned upon compliance
with the provisions of this section. Where a developer demolishes
existing dwelling units and builds new dwelling units on the same
site, the provisions of this section shall apply only if the net number
of dwelling units is five or more.
C.Â
Phasing. Inclusionary developments shall be subject to the following
schedule, except where an alternate phasing schedule has been incorporated
into a development or redevelopment agreement:
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
Maximum Percentage of Market-Rate Units Completed
|
|---|---|
|
0%
|
25%
|
|
10%
|
25% + 1 unit
|
|
50%
|
50%
|
|
75%
|
75%
|
|
100%
|
90%
|
D.Â
Fractional units. If 15% or 20% of the total number of units in a
development results in a fraction or decimal, the developer shall
be required to provide an additional affordable unit on site.
(1)Â
Example: An eight-unit development requiring an affordable housing
set-aside of 1.6 units is proposed. The developer is required to provide
two on-site affordable units.
E.Â
Integration of affordable units. In inclusionary developments, to
the extent possible, low- and moderate-income units shall be integrated
with the market-rate units.
F.Â
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
G.Â
Common elements and facilities. In inclusionary development, low-
and moderate-income units shall have access to all of the same common
elements and facilities as the market units.
H.Â
Alternative living arrangements.
(1)Â
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
(2)Â
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
(3)Â
The service provider for the alternative living arrangement shall
act as the Administrative Agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
A.Â
Low/moderate split and bedroom distribution of affordable housing
units:
(1)Â
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units the extra unit shall be a low-income unit.
(2)Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units. If there
is only one affordable unit it must be a low-income unit.
(3)Â
Thirteen percent of all affordable units in the Borough, with the
exception of units constructed as of July 1, 2008, and units subject
to preliminary or final site plan approval as of July 1, 2008, shall
be designated as very-low-income households at 30% of the median income,
with at least 50% of all very-low-income units being available to
families. Very-low-income units shall be considered low-income units
for the purposes of evaluating compliance with the required low-/moderate-income
unit splits, bedroom distribution, and phasing requirements of this
chapter.
(4)Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units;
(c)Â
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(d)Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(5)Â
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.Â
Accessibility requirements:
(2)Â
All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)Â
An adaptable toilet and bathing facility on the first floor;
(b)Â
An adaptable kitchen on the first floor;
(c)Â
An interior accessible route of travel on the first floor;
(d)Â
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)Â
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
(f)Â
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.), and the Barrier Free Subcode, N.J.A.C.
5:23-7,[2] or evidence that the Borough of Mendham has collected
funds from the developer sufficient to make 10% of the adaptable entrances
in the development accessible:
[1]Â
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]Â
To this end, the builder of restricted units shall deposit funds
within the Borough's Affordable Housing Trust Fund sufficient
to install accessible entrances in 10% of the affordable units that
have been constructed with adaptable entrances.
[3]Â
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Borough of Mendham for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]Â
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the Borough.
[5]Â
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7,[3] and that the cost estimate of such conversion is reasonable,
payment shall be made to the Borough's Affordable Housing Trust
Fund and appropriately earmarked.
[3]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[6]Â
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.[4]
[4]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
[2]
Editor's Note: See now N.J.A.C. 5:23-3.14(b).
C.Â
Maximum rents and sales prices:
(1)Â
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC utilizing the regional income limits published by HUD which includes
the regional weighted average of uncapped Section 8 income limits
and using calculation procedures approved by the Court. Income limits
for all units that are part of the Borough's Housing Element
and Fair Share Plan and for which income limits are not already established
through a federal program exempted from the UHAC pursuant to N.J.A.C.
5:80-26.1 shall be updated by the Borough annually within 30 days
of the publication of determinations of median income by the Department
of Housing and Urban Development ("HUD") as follows:
(a)Â
Regional income limits shall be established for the region that
the Borough is located within based on the median income by household
size, which shall be established by a regional weighted average of
the uncapped Section 8 income limits published by HUD. To compute
this regional income limit, the HUD determination of median county
income for a family of four is multiplied by the estimated households
within the county according to the most recent decennial census. The
resulting product for each county within the housing region is summed.
The sum is divided by the estimated total households from the most
recent decennial census in the Borough's housing region. This
quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80% of the regional weighted average
median income for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income for a
family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than those for the
previous year.
(b)Â
The income limits are the result of applying the percentages set forth in Subsection C(1)(a) above to HUD's determination of median income for the fiscal year 2019, and shall be utilized until the Borough updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)Â
The Regional Asset Limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)(3) shall be calculated by the Borough annually by taking the percentage increase of the income limits calculated pursuant to Subsection C(1)(a) above over the previous year's income limits, and applying the same percentage increase to the Regional Asset Limit from the prior year. In no event shall the Regional Asset Limit be less than that for the previous year.
(d)Â
In establishing sale prices and rents of affordable housing
units, the Borough's administrative agent shall follow the procedures
set forth in UHAC, utilizing the regional income limits established
pursuant to the process defined above:
[1]Â
The resale prices of owner-occupied low- and moderate-income
units may increase annually based on the percentage increase in the
regional median income limit for each housing region determined pursuant
to the above methodology. In no event shall the maximum resale price
established by the administrative agent be lower than the last recorded
purchase price.
[2]Â
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban Area, upon its
publication for the prior calendar year. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
(2)Â
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3)Â
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units.
(a)Â
At least 13% of all low- and moderate-income dwelling units
shall be affordable to households earning no more than 30% of median
income.
(4)Â
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, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, 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.
(5)Â
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(a)Â
A studio shall be affordable to a one-person household;
(b)Â
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)Â
A two-bedroom unit shall be affordable to a three-person household;
(d)Â
A three-bedroom unit shall be affordable to a four-and-one-half-person
household;
(e)Â
A four-bedroom unit shall be affordable to a six-person household.
(6)Â
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
(7)Â
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost 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 homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)Â
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)Â
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the administrative agent be lower than the last
recorded purchase price.
(10)Â
The rent of very-low-, low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the United States. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
(11)Â
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by DCA for its Section 8 program.
(12)Â
The costs of determining maximum rents and sales prices for affordable
units shall be the responsibility of the developer, sponsor, or owner,
unless otherwise determined or agreed to by the Borough.
[Added 4-26-2021 by Ord.
No. 05-2021]
A.Â
The Borough of Mendham shall adopt by resolution an Affirmative Marketing
Plan, subject to approval of the Court, compliant with N.J.A.C. 5:80-26.15,
as may be amended and supplemented. The initial Affirmative Marketing
Plan shall include the following community and regional organizations:
Fair Share Housing Center, the New Jersey State Conference of the
NAACP, the Latino Action Network, Morris County NAACP, Newark NAACP,
East Orange NAACP, Housing Partnership for Morris County, Community
Access Unlimited, Inc., Northwest New Jersey Community Action Program,
Inc. (NORWESCAP), Homeless Solutions of Morristown, and the Supportive
Housing Association.
B.Â
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, sponsor or owner 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 Housing Region 4 and covers the period of deed restriction.
C.Â
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 4.
D.Â
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals.
E.Â
The Administrative Agent designated by the Borough of Mendham shall
assure the affirmative marketing of all affordable units consistent
with the Affirmative Marketing Plan for the municipality.
F.Â
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
G.Â
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the Administrative Agent shall consider
the use of language translations where appropriate.
H.Â
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
I.Â
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request. In addition to other affirmative marketing strategies,
the Administrative Agent shall provide specific notice of the availability
of affordable housing units in the Borough of Mendham, and copies
of the application forms, to the following entities: Fair Share Housing
Center, the New Jersey State Conference of the NAACP, the Latino Action
Network, Morris County NAACP, Newark NAACP, East Orange NAACP, Housing
Partnership for Morris County, Community Access Unlimited, Inc., Northwest
New Jersey Community Action Program, Inc. (NORWESCAP), Homeless Solutions
of Morristown, and the Supportive Housing Association.
J.Â
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Borough.
A.Â
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:
B.Â
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal operating manual.
A.Â
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this chapter until the Borough of Mendham elects to release the
unit from such requirements, however, and prior to such an election,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented, for at
least 30 years.
B.Â
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
C.Â
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Administrative Agent shall determine
the restricted price for the unit and shall also determine the nonrestricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value.
D.Â
At the time of the first sale of the unit, the purchaser shall execute
and deliver to the Administrative Agent a recapture note obligating
the purchaser (as well as the purchaser's heirs, successors and
assigns) to repay, upon the first nonexempt sale after the unit's
release from the requirements of this chapter, an amount equal to
the difference between the unit's nonrestricted fair market value
and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
E.Â
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.Â
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all code standards upon the first
transfer of title that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.Â
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B.Â
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C.Â
The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income unit owners and the market unit owners. The master
deeds shall also not contain any distinction between the condominium
or homeowners' association fees and special assessments paid
by low- and moderate-income purchasers and those paid by market purchasers.
D.Â
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
A.Â
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income, and moderate-income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
Very-low-income units shall be reserved for households with a gross
household income of less than 30% of median income.
B.Â
Notwithstanding the foregoing, the Administrative Agent may, upon
approval by the Borough Council, and subject to the Court's approval,
permit a moderate-income purchaser to buy a low-income unit if, and
only if, the Administrative Agent can demonstrate that there is an
insufficient number of eligible low-income purchasers in the housing
region to permit prompt occupancy of the unit and all other reasonable
efforts to attract a low-income purchaser, including pricing and financing
incentives, have failed. Any such low-income unit that is sold to
a moderate-income household shall retain the required pricing and
pricing restrictions for a low-income unit.
C.Â
A certified household that purchases a restricted ownership unit must occupy it as the certified household's principal residence and shall not lease the unit; provided, however, that the Administrative Agent may permit the owner of a restricted ownership unit, upon application and a showing of hardship, to lease the restricted unit to another certified household for a period not to exceed one year. Violations of this provision shall be subject to the applicable enforcement provisions of § 60-16 of this chapter.
D.Â
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowners' association fees, as applicable)
does not exceed 33% of the household's certified monthly income.
E.Â
The costs of certifying buyer's income eligibility to purchase
an affordable unit shall be the responsibility of the developer, sponsor,
or owner, unless otherwise determined or agreed to by the Borough.
[Added 4-26-2021 by Ord.
No. 05-2021]
A.Â
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the Administrative Agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section.
B.Â
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the Administrative Agent in accordance
with N.J.A.C. 5:80-26.6(b).
A.Â
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the unit on the basis
of capital improvements made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
B.Â
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to ten-year, straight-line depreciation, has been approved by the
Administrative Agent. Unless otherwise approved by the Administrative
Agent, the purchase of any property other than central air conditioning
shall not be made a condition of the unit resale. The owner and the
purchaser must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
A.Â
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter until the Borough of Mendham elects to release the
unit from such requirements pursuant to action taken in compliance
with N.J.A.C. 5:80-26.1 et seq., as may be amended and supplemented,
and prior to such an election, a restricted rental unit must remain
subject to the requirements of N.J.A.C. 5:80-26.1 et seq., as may
be amended and supplemented, for at least 30 years.
B.Â
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Morris. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a certificate
of occupancy.
C.Â
A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
A.Â
A written lease shall be required for all restricted rental units,
except for units in an assisted living residence, and tenants shall
be responsible for security deposits and the full amount of the rent
as stated on the lease. A copy of the current lease for each restricted
rental unit shall be provided to the Administrative Agent.
B.Â
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
C.Â
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the Administrative Agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this chapter.
D.Â
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
A.Â
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)Â
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of median income.
(2)Â
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of median income.
(3)Â
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of median income.
B.Â
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)Â
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)Â
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)Â
The household is currently in substandard or overcrowded living conditions;
(4)Â
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)Â
The household documents proposed third-party assistance from an outside
source such as a family member in a form acceptable to the Administrative
Agent and the owner of the unit.
D.Â
The costs of certifying tenant income eligibility to rent an affordable
unit shall be the responsibility of the developer, sponsor, or owner,
unless otherwise determined or agreed to by the Borough.
[Added 4-26-2021 by Ord.
No. 05-2021]
A.Â
The position of Municipal Housing Liaison (MHL) for the Borough of
Mendham is established by this chapter. The Borough shall make the
actual appointment of the MHL by means of a resolution.
(1)Â
The MHL must be either a full-time or part-time employee of the Borough
of Mendham.
(2)Â
The person appointed as the MHL must be reported to the Court and
thereafter posted on the Borough's website.
(3)Â
The MHL must meet all the requirements for qualifications, including
initial and periodic training, if such training is made available
by COAH or the DCA.
(4)Â
The MHL shall be responsible for oversight and administration of
the affordable housing program for the Borough of Mendham, including
the following responsibilities which may not be contracted out to
the Administrative Agent:
(a)Â
Serving as the municipality's primary point of contact
for all inquiries from the state, affordable housing providers, Administrative
Agents and interested households;
(b)Â
The implementation of the Affirmative Marketing Plan and affordability
controls;
(c)Â
When applicable, supervising any contracting Administrative
Agent;
(d)Â
Monitoring the status of all restricted units in the Borough's
Fair Share Plan;
(e)Â
Compiling, verifying and submitting annual reports as required;
(f)Â
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable; and
(g)Â
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Affordable Housing Professionals of New Jersey
(AHPNJ), if such continuing education opportunities are made available
by COAH or the DCA.
B.Â
The Borough shall hire an Administrative Agent to administer affordable
units in the Borough and costs of such administration shall be reimbursed
to the Borough by the developer, sponsor or owner, unless otherwise
determined or agreed to by the Borough. Affordable units existing
at the time of adoption of this chapter are exempt from this requirement.
[Amended 4-26-2021 by Ord. No. 05-2021]
C.Â
An Operating Manual shall be provided by the Administrative Agent(s)
to be adopted by resolution of the governing body. The Operating Manual
shall be available for public inspection in the office of the Municipal
Clerk and in the office(s) of the Administrative Agent(s).
D.Â
The Administrative Agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC, including those
set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof,
and shall have authority to take all actions necessary and appropriate
to carry out its responsibilities, which includes:
(1)Â
Attending continuing education opportunities on affordability controls,
compliance monitoring, and affirmative marketing as offered or approved
by the Affordable Housing Professionals of New Jersey (AHPNJ).
(2)Â
Affirmative marketing:
(a)Â
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Borough of Mendham and the provisions of N.J.A.C. 5:80-26.15;
and
(b)Â
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.
(3)Â
Household certification:
(a)Â
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)Â
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;
(c)Â
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(d)Â
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 Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
(e)Â
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;
(f)Â
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Borough of Mendham when referring households
for certification to affordable units; and
(g)Â
Notifying the following entities of the availability of affordable
housing units in the Borough of Mendham: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Supportive Housing Association, and the Central Jersey Housing
Resource Center.
(4)Â
Affordability controls:
(a)Â
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;
(b)Â
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;
(c)Â
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Morris
County Register of Deeds or Morris County Clerk's office after
the termination of the affordability controls for each restricted
unit;
(d)Â
Communicating with lenders regarding foreclosures; and
(e)Â
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
(5)Â
Resale and rerental:
(a)Â
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or rerental;
(b)Â
Instituting and maintaining an effective means of communicating
information to low- (or very-low-) and moderate-income households
regarding the availability of restricted units for resale or rerental.
(6)Â
Records retention;
(7)Â
Processing requests from unit owners:
(a)Â
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
(b)Â
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 depreciated cost of central air-conditioning
systems;
(c)Â
Notifying the municipality of an owner's intent to sell
a restricted unit;
(d)Â
Making determinations on requests by owners of restricted units
for hardship waivers.
(8)Â
Enforcement, though the ultimate responsibility for retaining controls
on the units rests with the municipality.
(a)Â
Securing annually from the municipality a list 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;
(b)Â
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;
(c)Â
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the Administrative Agent where complaints of excess
rent or other charges can be made;
(d)Â
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;
(e)Â
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund;
(f)Â
Creating and publishing a written operating manual for each
affordable housing program administered by the Administrative Agent,
to be approved by the Borough Council and the Court, setting forth
procedures for administering the affordability controls.
(9)Â
Additional responsibilities:
(a)Â
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)Â
The Administrative Agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
(c)Â
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
E.Â
The cost of administering affordable units in the Borough including
affirmative marketing, establishing rents and sales prices, establishing
buyer and tenant income eligibility and rental and resale shall be
the responsibility of the developer, sponsor, or owner, unless otherwise
determined or agreed to by the Borough.
[Added 4-26-2021 by Ord.
No. 05-2021]
A.Â
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
B.Â
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)Â
The municipality may file a Court action pursuant to N.J.S.A. 2A:58-11
alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the Court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the Court:
(a)Â
A fine of not more than $10,000 or imprisonment for a period
not to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)Â
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Borough of Mendham Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)Â
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
(2)Â
The municipality may file a Court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
C.Â
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
D.Â
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the Court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
E.Â
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
F.Â
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
G.Â
Failure of the low- and moderate-income unit to be either sold at
the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
H.Â
The owner shall remain fully obligated, responsible and liable for
complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
A.Â
Beginning one year after the entry of the Borough's Round 3
Judgment of Compliance and Repose, the Borough will provide annual
reporting through July 1, 2025, of the status of all affordable housing
activity and of its Affordable Housing Trust Fund activity within
the Borough through posting on the municipal website with a copy of
such posting provided to Fair Share Housing Center, using forms previously
developed for this purpose by the Council on Affordable Housing or
any other forms endorsed by the Special Master and Fair Share Housing
Center. In addition to the foregoing, the Borough may also post such
activity on the Council on Affordable Housing Tracking and Monitoring
(CTM) System and/or file a copy of its report with COAH or its successor
agency at the state level. The reporting shall include an accounting
of all Affordable Housing Trust Fund activity, including the source
and amount of funds collected and the amount and purpose for which
any funds have been expended.
B.Â
The Fair Housing Act includes two provisions regarding action to
be taken by the Borough during its ten-year repose period. The Borough
will comply with those provisions as follows:
(1)Â
For the midpoint realistic opportunity review due on July 1, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Borough will post
on its municipal website, with a copy provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether the mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the Borough, with a copy
to Fair Share Housing Center, regarding whether any sites no longer
present a realistic opportunity and should be replaced and whether
the mechanisms to meet unmet need should be revised or supplemented.
Any interested party may by motion request a hearing before the Court
regarding these issues.
(2)Â
For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the entry of the Borough's Judgement of Compliance and Repose,
and every third year thereafter, the Borough will post on its municipal
website, with a copy provided to Fair Share Housing Center, a status
report as to its satisfaction of its very-low-income requirements,
including the family very-low-income requirements referenced herein.
Such posting shall invite any interested party to submit comments
to the Borough and Fair Share Housing Center on the issue of whether
the Borough has complied with its very-low-income housing obligation
under the terms of this settlement.
(3)Â
In addition to the foregoing postings, the Borough may also elect
to file copies of its reports with COAH or its successor agency at
the state level.
Appeals from all decisions of an Administrative Agent designated
pursuant to this chapter shall be filed with the Superior Court of
New Jersey, Morris County.
