[HISTORY: Adopted by the Township Committee of the Township of Washington
as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-18-1996 by Ord.
No. 5-96 (Sec. 12-6 of the Revised General Ordinances)]
It is the purpose of this article to meet Washington Township's fair
share housing obligation through provisions designed to result in the voluntary
rehabilitation of substandard low- and moderate-income housing units within
the township in one or more of the following ways:
A.
Through grants from the township's Housing Trust Fund
to eligible low- and moderate-income homeowners for rehabilitation of owner-occupied
housing through a program to be administered by the township and/or its agent.
B.
Through direct grants as may be available from the Morris
County Department of Community Development to eligible low- and moderate-income
homeowners for housing rehabilitation of owner-occupied housing.
As used herein, the terms which follow shall have the following meanings:
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:93-7.4.
The person applying for financial assistance for housing rehabilitation.
The Morris County Department of Community Development.
The person designated by the Township Committee to administer the
provisions of this article.
The fund established pursuant to the township's Development Fee Ordinance.
[1]Housing affordable according to Federal Department of Housing and
Urban Development or the standards included in N.J.A.C. 5:93-1 1 et seq. for
home ownership and rental costs, occupied or reserved for occupancy by households
with a gross household income equal to 50% or less of the median gross household
income for households of the same size within the housing region in which
the housing is located and which is subject to affordability controls promulgated
by the Council on Affordable Housing.
Housing affordable according to Federal Department of Housing and
Urban Development or the standards in N.J.A.C. 5:93-1 1 et seq. for home ownership
and rental costs, occupied or reserved for occupancy by households with a
gross household income in excess of 50% but less than 80% of the median gross
household income for households of the same size within the housing region
in which the housing is located and which is subject to the affordability
controls promulgated by the Council on Affordable Housing.
The restoration of a substandard housing unit to a decent, safe and
sanitary condition by eliminating the condition(s) making the unit substandard
and bringing the unit up to code standard.
A dwelling unit that is unsafe and/or unsanitary based upon one or
more of the following characteristics:
It is inhabited by 1.01 or more persons per room.
Absence of a private entranceway to the dwelling unit.
Absence of complete plumbing facilities and adequate kitchen facilities,
including a sink with piped water, a stove and a refrigerator.
Absence of central heat.
One or more major health and safety code violations, including one major
system deficiency in which any one of the following systems must be replaced
or extensively repaired: plumbing (including wells and sanitary plumbing),
heating, roof, electrical or major load-bearing structural systems.
A.
Only owners of houses or structures within the Township
of Washington are eligible for the financial assistance made available pursuant
to this article. The homeowner must either live in a low- or moderate-income
household (owner-occupied housing) or must agree to rent the house or other
dwelling unit to be rehabilitated to a low- or moderate-income household (rental
housing).
B.
All required forms must be completed by an applicant
for housing rehabilitation assistance in a timely fashion.
C.
The rehabilitation plan for the housing unit must, upon
completion, result in the elimination of all deficiencies and improve the
unit to code standards. The Construction Official will review the adequacy
of the plan before final approval and approve the rehabilitation upon completion.
D.
Any grant from the Housing Trust Fund shall be secured by a lien on the rehabilitated property subject to the terms and conditions set forth in Chapter 240, Housing Standards.
E.
The provisions of this article shall apply to all housing
units which receive assistance through the Housing Trust Fund. The applicant
shall agree, in writing, to comply with its terms.
Grants provided to eligible applicants under the housing program shall
be subject to the following terms and conditions:
A.
The maximum amount of assistance per applicant shall
be $15,000.
B.
Owner-occupied housing. Rehabilitation assistance for
owner-occupied housing shall be in the form of a non-interest-bearing, deferred-payment
loan with a term of six years, which is secured by a mortgage on the property.
Such loan shall convert to a full grant, and the lien shall be discharged
at the end of the six-year term, so long as the owner has not vacated the
premises or transferred title to the property prior to the expiration of said
term. An owner who conveys or vacates the property shall be required to repay
the loan in full at such time as the owner conveys title or ceases to occupy
the property unless said conveyance is to another low- or moderate-income
household at an affordable sales price. In the event of conveyance of the
dwelling unit to another low- or moderate-income household during said six-year
term, such conveyance shall be subject to the mortgage lien which shall remain
in effect for the balance of the six-year term.
C.
Rental housing. Rehabilitation assistance for rental
housing shall be in the form of a non-interest-bearing, deferred-payment loan
with a term of 10 years, which is secured by a mortgage on the property. Said
lien shall secure the full amount of the loan and shall require compliance
with the rental affordability controls set forth hereinafter. The deferred-payment
loan shall convert to a full grant, and the lien shall be discharged at the
expiration of said ten-year term. The full amount of the deferred-payment
loan shall be paid to the Housing Trust Fund upon any leasing or occupancy
of the housing unit by a non-lower-income household.
D.
Any applicant receiving assistance shall be subject to
and shall consent to the recording of a deed restriction and mortgage lien
on the real property in accordance herewith.
For rehabilitation assistance for owner-occupied single-family housing
units, the applicant shall consent to a deed restriction and mortgage lien
to be recorded, requiring that the dwelling unit be sold only to low- and
moderate-income households. This deed restrictions shall be a real covenant
running with the land and shall bind the applicant and all successors in interest
for a period of six years from the date of closing on the deferred-payment
loan. The deed restriction shall be termed the "sales affordability control"
and shall be in a form satisfactory to the Township Attorney and shall comply
with all the following requirements:
A.
Prior to a sale of an owner-occupied single-family housing
unit, the owner shall apply for a certificate of affordable housing from the
Housing Officer. The application shall include a copy of the proposed contract
of sale and an affidavit by the owner that the affordable sales restriction
will be adhered to. Upon request, the Housing Officer will assist the owner
in locating an income-eligible purchaser. Any prospective purchaser must submit
adequate proof of household income and household size. If the Housing Officer
or designee determines that the proposed sale will be in compliance with the
affordability control, then a certificate of affordable housing shall be issued.
B.
The sales price of a rehabilitated owner-occupied single-family
housing unit may increase annually based on the percentage increase in the
regional median income limit for the region as established by the Council
on Affordable Housing.
C.
Owners of rehabilitated owner-occupied single family
housing units may apply to the Housing Officer for permission to increase
the maximum sales prices for eligible capital improvements which render the
unit suitable for a larger household, provided that the maximum price of the
improved housing unit does not exceed the limits of affordability for the
larger household.
For rehabilitation assistance for rental housing, the applicant shall
consent to a deed restriction requiring that the dwelling unit may only be
leased to or otherwise occupied by a low- or moderate-income household at
a rental amount which does not exceed the affordable rent applicable to the
particular dwelling unit size. This deed restriction shall be a real covenant
running with the land and shall bind the applicant and all successors in interest
for a period of 10 years from the date of closing on the deferred-payment
loan. This deed restriction shall be termed the "rental affordability control,"
shall be in a form satisfactory to the Township Attorney and shall require
compliance with all of the following requirements:
A.
Prior to any change in occupancy of a housing unit subject
to a rental affordability control, the owner shall apply for a certificate
of affordable housing from the Housing Officer. The application shall include
a copy of the proposed lease and an affidavit by the owner that the affordable
rent restriction will be adhered to. Upon request, the Housing Officer will
assist the owner in locating an income-eligible tenant. Any prospective tenant
must submit adequate proof of household income and household size. If the
Housing Officer or designee determines that the proposed change in occupancy
will be in compliance with the rental affordability control, then a certificate
of affordable housing shall be issued.
B.
The permissible affordable rent may increase annually
based on the percentage increase in the housing consumer price index for the
United States, not to exceed 9% in any one year.
C.
An owner of property subject to a rental affordability
control may apply to the Housing Officer for permission to increase the affordable
rent for capital improvements which render the unit suitable for a larger
household, provided that such change does not result in the displacement of
existing low- or moderate-income occupants. The new rent shall not exceed
the affordable rent permitted for such larger household size.
The Washington Township Housing Rehabilitation Program shall be administered
by the Township of Washington unless the township enters into a separate agreement
with an appropriate outside agency, such as the Morris County Department of
Community Development, to assume some or all of the responsibilities noted
herein. The township shall designate an individual to serve as Housing Officer,
who may be an elected or appointed township official.
A.
The duties of the Housing Officer shall include:
(1)
Publicizing the rehabilitation program through a combination
of some, though not necessarily all, of the following: brochures; posters
in prominent locations; radio announcements; notices in municipal tax bills;
notices in municipal publications; informational meetings with welfare organizations,
urban action community groups, civic and religious leaders, senior citizen
groups and fraternal organizations; newspaper press releases; and providing
information and application packets to interested applicants.
(2)
Identifying eligible homeowners and marketing the program
to potential applicants.
(3)
Implementation of the program, including:
(a)
Application review and eligibility determinations.
(b)
Conducting client interviews and home inspections.
(c)
Preparation of home inspection reports.
(d)
Approval of construction contracts.
(e)
Preparation of contract and lien agreements.
(f)
Performance of ongoing and final inspections.
(g)
Maintenance of files and preparation of quarterly status
reports to the Washington Township Committee.
(4)
Administering the Housing Trust Fund and preparing periodic
status reports on the program and available funding to the Township Committee.
B.
The Washington Township Construction Official shall:
(1)
Determine or assist in determining the deficiency of
an applicant's unit under the provisions of this article.
(2)
Review and determine the adequacy of plans to rehabilitate
a housing unit in accordance with the rehabilitation program established herein.
(3)
Conduct initial and final inspections required in connection
herewith and issue certifications of rehabilitation upon completion of work
to the Housing Officer.
A.
Interested homeowners will be able to secure information
and application packets regarding the rehabilitation program from the Township
Clerk at the Municipal Building during regular business hours.
B.
Once an application has been completed and filed with
the Housing Officer, a determination shall be made as to income eligibility.
C.
Once a homeowner has been certified to be income-eligible,
a home inspection shall be conducted to determine the existence of a housing
deficiency requiring rehabilitation.
D.
Once the home and the applicant have been certified as
eligible, a home inspection report shall be prepared which shall include specifications
to be used to obtain construction estimates.
E.
It shall be incumbent upon the applicant to obtain at
least two written cost estimates for the rehabilitation work from qualified
contractors. A list of contractors will be supplied to applicants upon request.
F.
Cost estimates shall be reviewed by the Housing Officer,
and the lowest responsible bidder will be selected.
G.
The rehabilitation work may begin as soon as all necessary
agreements, including construction contract and lien documents, have been
executed.
H.
Written progress reports shall be maintained and payments
shall be made to the appropriate parties as work progresses. After construction
has been completed, the Construction Official shall conduct a final Inspection
to certify that the required property improvements are complete and issue
a final inspection report. Final payment for the rehabilitation work will
then be released and lien documents recorded.
