Borough of Pennington, NJ
Mercer County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Pennington 6-2-2003 by Ord. No. 2003-4. Amendments noted where applicable.]
GENERAL REFERENCES
Affordable housing development fees — See Ch. 98, Art. I.

§ 58-1 Purpose.

A. 
The purpose of this chapter is to comply with the Substantive Rules of the New Jersey Council on Affordable Housing (COAH) regarding the Borough of Pennington and its efforts to satisfy its Mt. Laurel II housing obligations.
B. 
This chapter of the Code of the Borough of Pennington sets forth regulations regarding low- and moderate-income housing units in the Borough of Pennington that are consistent with the provisions of N.J.A.C. 5:93 et seq. as effective on June 6, 1994, and as amended thereafter. These rules are pursuant to the Fair Housing Act of 1985 and the Borough of Pennington's constitutional obligation to provide for its fair share of low- and moderate-income housing.

§ 58-2 Definitions.

Any term pertaining to affordable housing referenced in this chapter is intended to have the meaning as defined in the New Jersey Fair Housing Act (N.J.S.A. 52:270-301 et seq.) or the Procedural Rules of the New Jersey Council on Affordable Housing (N.J.A.C. 5:91) or the Substantive Rules of the New Jersey Council on Affordable Housing (N.J.A.C. 5:92 or N.J.A.C. 5:93), as appropriate.

§ 58-3 Fair share for inclusionary developments.

A. 
The Borough of Pennington's new construction or inclusionary component shall be divided equally between low- and moderate-income households as per N.J.A.C. 5:93-2.20.
B. 
Except for inclusionary developments constructed pursuant to low-income tax credit regulations:
(1) 
At least 1/2 of all units within each inclusionary development shall be affordable to low-income households; and
(2) 
At least 1/2 of all rental units shall be affordable to low-income households; and
(3) 
At least 1/3 of all units in each bedroom distribution pursuant to N.J.A.C. 5:93-7.3 shall be affordable to low-income households.
C. 
Inclusionary developments that are not restricted to age-restricted housing units shall be structured in conjunction with realistic market demands so that:
(1) 
The combination of efficiency and one-bedroom units is at least 10% and no greater than 20% of the total low- and moderate-income units; and
(2) 
At least 30% of all low- and moderate-income units are two-bedroom units; and
(3) 
At least 20% of all low- and moderate-income units are three-bedroom units; and
(4) 
Low- and moderate-income units that are age-restricted may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development.
D. 
In conjunction with realistic market information, the following criteria shall be used in determining maximum rents and sale prices:
(1) 
Efficiency units shall be affordable to 1.0 person households;
(2) 
One-bedroom units shall be affordable to 1.5 person households;
(3) 
Two-bedroom units shall be affordable to 3.0 person households;
(4) 
Three-bedroom units shall be affordable to 4.5 person households;
(5) 
Median income by household size shall be established by a regional weighted average of the uncapped Section 8 income limits published by the federal Department of Housing and Urban Development (HUD) as per N.J.A.C. 5:93-7.4(b);
(6) 
The maximum average rent and sales price of low- and moderate-income units within each inclusionary development shall be affordable to households earning no more than 57.5% of median income. The moderate-income sales units shall be made available for at least three different prices and low-income sales units also shall be made available for at least two different prices;
(7) 
For both owner-occupied and rental units, the low- and moderate-income units shall utilize the same heating source as the market units within an inclusionary development;
(8) 
low-income units shall be reserved for households with a gross household income less than or equal to 50% of the median income approved by COAH; moderate-income units shall be reserved for households with a gross household income less than 80% of the median income approved by COAH as per N.J.A.C. 5:93-7.4; and
(9) 
The regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16 shall be applicable to all affordable units.
E. 
For rental units, the following conditions shall apply:
(1) 
Developers may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution; and
(2) 
Gross rents, including an allowance for tenant-paid utilities, shall be established so as not to exceed 30% of the gross monthly income of the appropriate household size as per N.J.A.C. 5:93-7.4(a). The tenant-paid utility allowance shall be consistent with the utility allowance approved by HUD for use in New Jersey.
F. 
For sale units, the following conditions shall apply:
(1) 
The initial price of a low- and moderate-income owner-occupied for-sale housing unit shall be established so that after a down payment of 5%, the monthly principal, interest, homeowner and private mortgage insurance, property taxes (based on the restricted value of the low- and moderate-income unit) and condominium or homeowner association fees do not exceed 28% of the eligible gross monthly income;
(2) 
Master deeds of inclusionary developments shall regulate condominium or homeowner association fees or special assessments of low- and moderate-income purchasers at 100% of those paid by market purchasers. This one-hundred-percent percentage is consistent with the requirement of N.J.A.C. 5:93-7.4. Once established within the master deed, the one-hundred-percent percentage shall not be amended without prior approval from COAH;
(3) 
The Borough of Pennington shall follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3;
(4) 
The Borough of Pennington shall require a certificate of reoccupancy for any occupancy of a low- or moderate-income sales unit resulting from a resale as per N.J.A.C. 5:93-9.3(c);
(5) 
Municipal, state, nonprofit and seller options regarding sale units shall be consistent with N.J.A.C. 5:93-9.5 through 5:93-9.8. Municipal rejection of repayment options for sale units shall be consistent with N.J.A.C. 5:93-9.9;
(6) 
The continued application of options to create, rehabilitate or maintain low- and moderate-income sale units shall be consistent with N.J.A.C. 5:93-9.10;
(7) 
Eligible capital improvements prior to the expiration of controls on sale units shall be consistent with N.J.A.C. 5:93-9.11; and
(8) 
The regulations detailed in N.J.A.C. 5:93-9.12 through 5:93-9.14 shall be applicable to low- and moderate-income units that are for sale units.
G. 
For inclusionary developments, the following conditions shall apply:
(1) 
Low- and moderate-income units within an inclusionary development shall be built in accordance with N.J.A.C. 5:93-5.6(d) as follows:
Minimum Percent of Low/Moderate
Income Units Completed
Percent of Market Housing
Units Completed
0%
25%
10%
25% + 1 unit
50%
50%
75%
75%
100%
90%
100%
(2) 
The design of an inclusionary development shall integrate the low- and moderate-income units with the market units in accordance with N.J.A.C. 5:93-5.6(f).
H. 
A Development Fees Ordinance (Ordinance No. 98-8) was approved by COAH and adopted by the Borough of Pennington on August 3, 1998, and appears as Chapter 98, Article I, Affordable Housing Development Fees.
I. 
To provide assurances that low- and moderate-income units are created with controls on affordability over time and that low- and moderate-income households occupy these units, the Borough of Pennington shall designate an administrative agency, to be named by resolution, which shall have the responsibility of ensuring the affordability of sales and rental units over time. The administrative agency shall be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
(1) 
In addition, the administrative agency shall be responsible for utilizing the verification and certification procedures outlined in N.J.A.C. 5:93-9.1(b) in placing households in low- and moderate-income units;
(2) 
Newly constructed low- and moderate-income sales units shall remain affordable to low- and moderate-income households for at least thirty (30) years, and the administrative agency shall require all conveyances of newly constructed units to contain the deed restriction and mortgage lien adopted by COAH and referred to as "Technical Appendix E" as found in N.J.A.C. 5:93; and
(3) 
Housing units created through the conversion of a nonresidential structure shall be considered a new housing unit and shall be subject to thirty-year controls on affordability. The administrative agency shall require COAH's appropriate deed restriction and mortgage lien.
J. 
The following durations of affordability controls shall apply to rehabilitated units:
(1) 
Rehabilitated owner-occupied single-family housing units that are improved to code standard will be subject to affordability controls for at least six years; and
(2) 
Rehabilitated renter-occupied housing units that are improved to code standard shall be subject to affordability controls for at least 10 years.
K. 
The following durations of affordability controls shall apply to rental units:
(1) 
Newly constructed low- and moderate-income rental units shall remain affordable to low- and moderate-income households for at least 30 years. The administrative agency shall require the deed restriction and lien and deed of easement referred to as "Technical Appendix H" as found in N.J.A.C. 5:93;
(2) 
Affordability controls on accessory apartments shall be for a period of at least 10 years, except if the apartment is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability shall extend for 30 years in accordance with N.J.A.C. 5:93-5.9; and
(3) 
Alternate living arrangements shall be controlled in a manner suitable to COAH, that provides assurances that such a facility will house low- and moderate-income households for at least 10 years, except that if the alternative living arrangement is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.15, then the controls on affordability shall extend for 30 years in accordance with N.J.A.C. 5:93-5.8.
L. 
Section 14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301 et seq., incorporates the need to eliminate unnecessary cost generating features from the Borough of Pennington's land use ordinances. Accordingly, the Borough of Pennington shall eliminate development standards that are not essential to protect the public welfare and to expedite or fast track municipal approvals/denials on inclusionary development applications. The Borough of Pennington shall adhere to the components of N.J.A.C. 5:93-10.1 through 5:93-10.3. The Borough of Pennington has a fair share obligation of 29 units, of which 20 is the new construction component. This chapter shall apply to all developments that contain proposed low- and moderate-income units that are listed below and any future developments that may occur:
(1) 
Pennington Point East.

§ 58-4 Affirmative marketing.

[Added 3-6-2006 by Ord. No. 2006-2]
A. 
The Borough of Pennington in the County of Mercer has a fair share obligation of 29 units, of which 20 provide new affordable housing opportunities. This section shall apply to all affordable accessory apartments and all developments that contain, or will contain, affordable units that are listed below and any future developments that may occur:
(1) 
Pennington Point East;
(2) 
MU-3 Zone (Capital Heath Systems site); and
(3) 
Affordable Housing Overlay Zone (former Landfill site).
B. 
The affirmative marketing plan shall be 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 the affordable units being marketed by a developer or sponsor of the units, the Borough and/or the designated administrative agency of affordable housing. The plan shall address the requirements of N.J.A.C. 5:94-7 and N.J.A.C. 5:80-26. In addition, the plan prohibits discrimination in the sale, rental, financing or other services related to housing on the basis of race, color, sex, affectional or sexual orientation, religion, handicap, age, familial status/size or national origin. The Borough of Pennington is in Housing Region IV consisting of Monmouth, Ocean and Mercer Counties.
C. 
The affirmative marketing plan is a continuing program and shall meet the following requirements:
(1) 
The affirmative marketing process for available affordable ownership units shall begin at least four months prior to the expected occupancy. The affirmative marketing of rental units shall take place at least one month prior to the expected occupancy. Advertising and outreach shall take place during the first week of the marketing program and each month thereafter until all available units have been leased or sold.
(2) 
All advertisements shall include the following:
(a) 
Street address (location) of the housing units;
(b) 
Directions to the housing units;
(c) 
Size of the units, as measured in bedrooms;
(d) 
Range of selling prices/rents;
(e) 
The maximum income permitted to qualify for the housing units;
(f) 
Application fees, if any; and
(g) 
Location of applications, including business hours and where/how applications may be obtained.
(3) 
In order to reach all the entire housing region, as required by the New Jersey Council on Affordable Housing (COAH), at least one display advertisement will be published in each the following newspapers of general circulation:
(a) 
The Trenton Times (Mercer County edition); and
(b) 
The Asbury Park Press (Monmouth County and Ocean County editions).
(4) 
All newspaper articles, advertisements and requests for applications for affordable housing also shall appear in the following newspapers:
(a) 
Pennington Post; and
(b) 
Hopewell Valley News.
(5) 
The following regional radio and/or cable television station(s) shall be used to advertise affordable housing units:
(a) 
Comcast Public Access.
(6) 
The primary marketing shall take the form of at least one press release and a paid advertisement with the above media outlets. Monthly advertising initiatives will continue until all affordable units are occupied. Additional advertising and publicity shall be on an "as needed" basis.
(7) 
Applications and copies of press releases and/or information packages will be made available at the following locations:
(a) 
Developer's sales/rental office on site;
(b) 
Pennington Borough Public Library;
(c) 
The main branches of the Monmouth County and Ocean County public libraries;
(d) 
Pennington Municipal Building;
(e) 
Pennington Senior Center;
(f) 
Mercer County Administration Building; and
(g) 
The Pennington Market.
(8) 
In effort to reach those households that are traditionally underserved by affordable housing opportunities, press releases and/or information packages shall be sent to each of the following agencies in Monmouth, Ocean and Mercer Counties:
(a) 
All public housing authorities within COAH Housing Region IV, including but not limited to:
Hightstown HA
131 Rogers Avenue
Hightstown, NJ 08520
Princeton HA
50 Clay Street
Princeton, NJ 08542
Trenton HA
875 New Willow Street
Trenton, NJ 08638
Hamilton Township HA
2090 Greenwood Avenue
PO Box 00150
Hamilton, NJ 08650
Red Bank HA
52 Evergreen Terrace
Red Bank, NJ 07701
Asbury Park HA
1000 1/2 3rd Avenue
Asbury Park, NJ 07712
Belmar HA
710 8th Avenue
Belmar, NJ 07719
Freehold HA
107 Throckmorton St.
Freehold, NJ 08723
Highlands HA
215 Shore Drive
Highlands, NJ 07732
Keansburg HA
1 Church Street
Keansburg, NJ 07734
Long Branch HA
Garfield Court
Long Branch, NJ 07740
Middletown HA
1 Oakdale Drive
Middletown, NJ 07748
Neptune HA
1810 Alberta Avenue
Neptune, NJ 07753
Dover HA
215 E Blackwell Street
Dover, NJ 07801
Lakewood HA
317 Sampson Avenue
Lakewood, NJ 08701
Berkeley HA
44 Frederick Drive
Bayville, NJ 08721
Brick HA
165 Chambers Bridge Road
Bricktown, NJ 07732
(b) 
County offices on aging within COAH Housing Region IV:
Mercer County Office on Aging
640 S. Broad Street
PO Box 8068
Trenton, NJ 08650-0068
Monmouth County Office on Aging
21 Main and Court Center
Freehold, NJ 07728
Ocean County Office of Senior Services
1027 Hooper Avenue, Building #2
PO Box 2191
Toms River, NJ 08754-2191
(c) 
County boards of social services within COAH Housing Region IV:
Mercer County Board of Social Services
200 Woolverton St., PO Box 1450
Trenton, NJ 08650-2099
Monmouth County Div. of Social Services
Kozloski Rd., PO Box 3000
Freehold, NJ 07728
Ocean County Board of Social Services
1027 Hooper Ave., PO Box 547
Toms River, NJ 08754-0547
(9) 
Applications also will be mailed to prospective applicants upon request.
D. 
The following is a description of the random selection method that will be used to select occupants of affordable housing in accordance with the procedures employed by the administrative agency:
(1) 
All households that wish to be considered for affordable housing will be asked a series of questions to assess their likelihood of being approved as a low- or moderate-income family.
(a) 
How many people comprise the household?
(b) 
Is the total household income above or below the moderate income limit for their family size?
(c) 
Does the household currently live in the COAH Housing Region IV?
(d) 
Do the heads of the household currently work in COAH Housing Region IV?
(2) 
If the applicant indicates that their total household income is below the moderate income limit for their family size, they will be eligible for placement in the applicant pool. Applicants will, of course, be required to provide written documentation to evidence this and other eligibility criteria at a later time.
(3) 
Once a sufficient number of applicants have been placed in the pool, the administrative agent will close the pool and no other applicants will be considered until the applicant pool is reopened by the administrative agent.
(4) 
All households in the applicant pool will then be notified of the location, date and time the random selection will take place. Each applicant will be assigned a number that will be used to identify them in the random selection process. This number will be provided to the applicant prior to the random selection.
(5) 
All numbers will be placed in a container and chosen at random. Using the order set by the random selection, the administrative agent will contact applicants that indicated that they lived or worked in COAH Housing Region IV. Once those applicants are exhausted, the administrative agent will contact applicants outside Region IV in the order in which they were chosen.
(6) 
As units become available, and in the order described above, the administrative agent will notify applicants in writing that they are among a group of applicants that are being considered for sale or rental of an affordable unit. Applicants will be given 14 days to complete a full application and submit it along with the requisite back-up documentation.
E. 
A waiting list of all eligible candidates will be maintained by the administrative agency in accordance with the provisions contained in N.J.A.C. 5:80-26 et seq.
F. 
The Borough of Pennington is ultimately responsible for administering the affirmative marketing plan. The Borough of Pennington has delegated this responsibility to the following administrative agencies: Community Grants and Planning, Inc. (previously Housing Services, Inc.) for administering the accessory apartment program; and the Housing Affordability Service of HMFA for administering the other affordable units that are part of the Borough's new construction component.
G. 
The administrative agencies shall have the responsibility to do the following:
(1) 
To income qualify low- and moderate-income households;
(2) 
To place income-eligible households in affordable units upon initial occupancy;
(3) 
To provide for the initial occupancy of affordable units with income-qualified households;
(4) 
To continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls;
(5) 
To assist with advertising and outreach to low- and moderate-income households, if so stated in the contract;
(6) 
To enforce the terms of the deed restriction and mortgage loan as per N.J.A.C. 5:80-26 et seq.; and
(7) 
Generally, to administer the Borough's affordable housing program, including administering and enforcing the affordability controls and this affirmative marketing plan, in accordance with the provisions of Chapter 58, entitled the "Affordable Housing Ordinance Provisions," of the Code of the Borough of Pennington, the regulations of the Council on Affordable Housing pursuant to N.J.A.C. 5:94 et seq., and the New Jersey Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq.
H. 
The Borough Administrator within the Borough of Pennington is the designated Municipal Housing Liaison who shall supervise the contracting administrative agencies and shall serve as a liaison to the contracting administrative agencies.
I. 
As appropriate, the administrative agencies will refer families to counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, responsibilities of homeownership, rental lease requirements and landlord/tenant law. A complete list of housing counseling providers will be provided to the family so that they may identify a counseling provider that is convenient to their current home and/or job. This list of housing counselors is maintained by the U.S. Department of Housing and Urban Development (http://www.hud.gov/local/nj/homeownership/hsgcounseling.cfm).
J. 
Households who live or work in the COAH Housing Region IV (Monmouth, Ocean, and Mercer Counties) will be given preference for the available affordable units. Applicants living outside the housing region shall have an equal opportunity for units after the regional applicants have been initially serviced. Pennington Borough intends to comply with N.J.A.C. 5:80-26 et seq.
K. 
All developers of affordable housing units shall be required to assist in the marketing of the affordable units in their respective developments in accordance with the preceding paragraphs. Specifically, the cost of advertising will be the responsibility of the developer where required as a condition of the Pennington Borough Planning Board and/or in a developer's agreement with the Borough of Pennington.
L. 
The administrative agencies shall comply with monitoring and reporting requirements as per N.J.A.C. 5:94-9.