[Adopted 10-11-2005 by Ord. No. 2005-16]
This section of the Borough of New Providence Code sets forth regulations
regarding low- and moderate-income housing units in the Borough of New Providence
that are consistent with the provisions of N.J.A.C. 5:93 et seq., as effective
on June 6, 1994. These rules are pursuant to the Fair Housing Act of 1985
and the Borough of New Providence's constitutional obligation to provide
for its fair share of low- and moderate-income housing.
A.
The Borough of New Providence's new construction
or inclusionary component will be divided equally between low- and moderate-income
households as per N.J.A.C. 5:93-2.20; and
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
will be affordable to low-income households;
(2)
At least 1/2 of all rental units will 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 will be affordable to low-income households.
C.
Inclusionary developments that are not restricted to
senior citizens will 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;
(2)
At least 30% of all low- and moderate-income units are
two-bedroom units;
(3)
At least 20% of all low- and moderate-income units are
three-bedroom units; and
(4)
Low- and moderate-income units restricted to senior citizens
may utilize a modified bedroom distribution. At a minimum, the number of bedrooms
will equal the number of senior citizen low- and moderate-income units within
the inclusionary development.
In conjunction with realistic market information, the following criteria
will be used in determining maximum rents and sale prices:
A.
Efficiency units will be affordable to one-person household;
B.
One-bedroom units will be affordable to 1.5 person households;
C.
Two-bedroom units will be affordable to three-person
households; and
D.
Three-bedroom units will be affordable to 4.5 person
households.
E.
Median income by household size will be established by
a regional weighted average of the uncapped Section 8 income limits published
by HUD as per N.J.A.C. 5:93-7.4(b).
F.
The maximum sales prices of low- and moderate-income
units within each inclusionary development will be affordable to households
earning no more than 70% of median income. In averaging an affordability range
of 55% for sales units, the municipal ordinance will require moderate-income
sales units to be available for at least two different prices and low-income
sales units to be available for at least two different prices.
G.
For both owner-occupied and rental units, the low- and
moderate-income units will utilize the same heating source as market units
within an inclusionary development.
H.
Low-income units will be reserved for households with
a gross household income less or equal to 50% of the median income approved
by COAH; moderate-income units will 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. 5:93-9.16.
I.
The regulations outlined in N.J.A.C. 5:93-9.15 and 9.16
will be applicable for purchased and rental units.
For rental units, developers and/or municipal sponsors may:
A.
Establish one rent for a low-income unit and one for
a moderate-income unit for each bedroom distribution; and
B.
Gross rents, including an allowance for tenant-paid utilities,
will 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 will be consistent with the utility allowance approved by
HUD for use in New Jersey.
C.
The maximum rents of low- and moderate-income units within
each inclusionary development will be affordable to households earning no
more than 60% of median income. In averaging an affordability range of 52%
for rental units, developers and/or municipal sponsors of rental units may
establish one rent for a low-income unit and one rent for a moderate-income
unit for each bedroom distribution.
D.
Notwithstanding the provisions of Subsection C above,
the maximum average rent for low- and moderate-income units within new inclusionary
developments whose plans or amended plans received COAH substantive certification
on or before January 1, 2001, shall be affordable to households earning 57.5%
of median income. Developers and/or municipal sponsors of rental units shall
establish one rent for a low-income unit and one rent for a moderate-income
unit for each bedroom distribution.
A.
The initial price of a low- and moderate-income owner-occupied
single-family housing unit will 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 fee do not exceed 28% of the eligible gross
monthly income.
B.
Master deeds of inclusionary developments will regulate
condominium or homeowner association fees or special assessments of low- and
moderate-income purchasers at one-hundred-percent percentage of those paid
by market purchasers. This one-hundred-percent percentage is consistent with
the requirements of N.J.A.C.5:93-7.4(e). Once established within the master
deed, the one-hundred-percent percentage will not be amended without prior
approval from COAH.
C.
The Borough of New Providence will 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.
D.
The Borough of New Providence will 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).
E.
Municipal, state, nonprofit and seller options regarding
sale units will be consistent with N.J.A.C. 5:93-9.5-9.8. Municipal rejection
of repayment options for sale units will be consistent with N.J.A.C. 5:93-9.9.
F.
The continued application of options to create, rehabilitate
or maintain low- and moderate-income sale units will be consistent with N.J.A.C.
5:93-9.10.
G.
Eligible capital improvements prior to the expiration
of controls on sale units will be consistent with N.J.A.C. 5:93-9.11.
H.
The regulations detailed in N.J.A.C. 5:93-9.12-9.14 will
be applicable to low- and moderate-income units that are for-sale units.
In zoning for inclusionary developments the following is required:
A.
Low- and moderate-income units will be built in accordance
with N.J.A.C. 5:93-5.6(d).
|
Minimum % of Low-/Moderate-Income Units Completed
|
% of Market Housing Units Completed
| |
|---|---|---|
|
0
|
25
| |
|
10
|
25 + 1 unit
| |
|
50
|
75
| |
|
75
|
90
| |
|
100
|
90
| |
|
100
|
B.
A design of inclusionary developments that integrates
low- and moderate-income units with market units is encouraged as per N.J.A.C.
5:93-5.6(e).
A Development Fee Ordinance was adopted by the Borough of New Providence
on 9-13-1993. See Code Chapter 275-16 et seq., of Land Use Regulations of
the Borough of New Providence.
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 New Providence will designate
the Affordable Housing Board with the responsibility of ensuring the affordability
of sales and rental units over time.
A.
The Affordable Housing Board will be responsible for
those activities detailed in N.J.A.C. 5:93-9.1(a).
(1)
In addition, The Affordable Housing Board will 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
will remain affordable to low- and moderate-income households for at least
30 years.
(3)
The Affordable Housing Board will 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.
(4)
Housing units created through the conversion of a nonresidential
structure will be considered a new housing unit and will be subject to thirty-year
controls on affordability. The Affordable Housing Board will require COAH's
appropriate deed restriction and mortgage lien.
B.
Regarding 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 re improved
to code standard will be subject to affordability controls for at least 10
years.
C.
Regarding rental units:
(1)
Newly constructed low- and moderate-income rental units
will remain affordable to low- and moderate-income households for at least
30 years. The Affordable Housing Board will 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 in accessory apartments will 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
will extend for 30 years.
(3)
Alternative living arrangements will 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, 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 will extend for
30 years.
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
Borough of New Providence's land use ordinances. Accordingly, Borough
of New Providence will eliminate development standards that are not essential
to protect the public welfare and expedite or fast track municipal approvals/denials
on inclusionary development applications. Borough of New Providence will adhere
to the components of N.J.A.C. 5:93-10.1-10.3.
The Borough of New Providence had a fair share obligation of 151 units,
consisting of 17 rehabilitation units and 134 new construction units, which
fair share obligation has been adjusted and reduced by COAH to include a vacant
land adjustment that thereby reduced the New Providence Borough's new
construction obligation to a fifty-four-unit realistic development potential
(RDP). This article will apply to all developments that contain proposed low-
and moderate-income units that are listed above and any future developments
that may occur.
The affirmative marketing plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups, regardless
of sex, age or number of children, to housing units which are being marketed
by a developer/sponsor municipality and/or designated administrative agency
of affordable housing. The plan will address the requirements of N.J.A.C.
5:93-11. In addition, the plan prohibits discrimination in the sale, rental,
financing or other services related to housing on the basis of race, color,
sex, religion, handicap, age, familial status/size or national origin. The
Borough of New Providence is in the housing region consisting of Union, Essex,
Morris and Warren Counties. The affirmative marketing program is a continuing
program and will meet the following requirements:
A.
All newspaper articles, announcements and requests for
applications for low- and moderate-income units will appear in the following
daily regional newspaper: The Daily Record, The Courier News and The Star
Ledger.
B.
The primary marketing will take the form of at least
one press release sent to the above publications and a paid display advertisement
in the above newspapers. Additional advertising and publicity will be on an
as-needed basis.
C.
The advertisement will include a description of the:
street address of units; direction to housing units; number of bedrooms per
unit; range of price/rents; size of units; income information; and location
of applications, including business hours and where/how applications may be
obtained.
D.
All newspaper articles, announcements and requests for
applications for low- and moderate-income housing will appear in the following
neighborhood-oriented weekly newspaper within the region: all Independent
Press editions.
E.
The following regional radio and/or cable television
station(s) will be used: Comcast Cable local public access channels.
F.
The following is the location of applications, brochure(s),
sign(s) and/or poster(s) used as part of the affirmative marketing program,
including specific employment centers within the region: municipal administrative
buildings; municipal libraries; developer's sales offices; major employers
in region.
G.
The following is a listing of community contact person(s)
and/or organization(s) in Union, Essex, Morris and Warren Counties that will
aid in the affirmative marketing program with particular emphasis on contacts
that will reach out to groups that are least likely to apply for housing within
the region: Ms. Peggy Brodeur, New Providence Senior Citizen Center; New Providence
Church Coalition; and the Community Service Association of New Providence
and the county urban leagues.
H.
Quarterly flyers and applications will be sent to each
of the following agencies for publication in their journals and for circulation
among their members: Board of Realtors in Union, Essex, Morris and Warren
Counties.
I.
Applications will be mailed to prospective applicants
upon request.
J.
Additionally, quarterly informational circulars and applications
will be sent to the chief administrative employees of each of the following
agencies in the counties of: Union, Essex, Morris and Warren Counties: welfare
or social service boards; rental assistance offices (local office of DCA);
offices on aging; housing agencies or authorities; libraries; area community
action agencies.
The following is a description of the random selection method that will
be used to select occupants of low- and moderate-income housing:
|
Receipt and review of applications: All applications will be reviewed
for eligibility income and household size verified for eligibility and assigned,
if determined to be income-eligible, be assigned to the appropriate low- or
moderate-income group.
| |
|
As affordable units become available, applicants will be notified in
writing of the availability of units and will be requested to affirm their
interest in order to be included in a random selection process. Random letters
or numbers will be assigned to each application to assure impartiality and
confidentiality.
| |
|
The members of the Borough's Affordable Housing Committee shall
conduct a random selection utilizing the assigned confidential numbers or
letters, at a public meeting which shall be open to all applicants.
| |
|
Developers, sponsors and/or sellers shall be required to offer affordable
units in the order of their random selection by the Affordable Housing Board,
and at the rent or sale prices that comply with the Borough's Affordable
Housing Ordinance and Affirmative Marketing Plan.
|
The Affordable Housing Board of the Borough of New Providence shall
administer the affirmative marketing program. The Affordable Housing Board
has the responsibility to income qualify low- and moderate-income households;
to place income eligible households in low- and moderate-income units upon
initial occupancy; to provide for the initial occupancy of low- and moderate-income
units with income qualified households; to continue to qualify households
for reoccupancy of units as they become vacant during the period of affordability
controls; to assist with advertising and outreach to low- and moderate-income
households; and to enforce the terms of the deed restriction and mortgage
loan as per N.J.A.C. 5:93-9.1. Ms. Peggy Brodeur is the designated housing
officer to act as liaison to the Affordable Housing Board. The Affordable
Housing Board will 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. The following service providers
have agreed to perform the above services: The Urban League of Union County.
Households who live or work in the COAH-established housing region may
be given preference for sales and rental units constructed within that housing
region. Applicants living outside the housing region will have an equal opportunity
for units after regional applicants have been initially serviced. The Borough
of New Providence intends to comply with N.J.A.C. 5:93-11.7.
A.
All developers of low- and moderate-income housing units
will not be required to assist in the marketing of the affordable units in
their respective developments.
B.
The marketing program will commence at least 120 days
before the issuance of either temporary or permanent certificates of occupancy.
The marketing program will continue until all low- and moderate-income housing
units are initially occupied and for as long as affordable units are deed
restricted and occupancy or reoccupancy of units continues to be necessary.
The Affordable Housing Board will comply with monitoring and reporting
requirements as per N.J.A.C. 5:93-11.6 and 12.1.
The Borough of New Providence will undertake a rehabilitation program
to rehabilitate 17 substandard housing units occupied by low- and moderate-income
households. The Borough of New Providence has designated the Affordable Housing
Board to administer the rehabilitation program. The Affordable Housing Board
will prepare a marketing plan for the rehabilitation program. The rehabilitation
program will be consistent with N.J.A.C. 5:93-5.2(b) through 5.2(1).
The following sites have been designated to meet Borough of New Providence's
inclusionary component outlined in the housing element and fair share plan,
which was adopted by the Planning Board on 8-5-1998. The following zones are
applicable to the designated sites:
