[Added 2-19-2007 by Ord. No. 6-07]
An Affordable Housing Buy-Down Ordinance is
hereby enacted for the purpose of providing additional opportunities
for low- and moderate-income housing in the Township of Washington,
County of Morris. The purpose of the program is to buy down the cost
of a previously owned or new market-rate unit and offer it in sound
condition at an affordable price to a low- or moderate-income household.
The Township of Washington received substantive certification from
the Council on Affordable Housing (COAH) of its Housing Element and
Fair Share Plan, including a ten-unit buy-down program, on January
10, 2007.
All buy-down units shall meet the following
conditions pursuant to N.J.A.C. 5:94-4.10 and in accordance with the
Township of Washington's Fair Share Plan.
A.
The Township of Washington may subsidize the cost
of a for-sale unit that will be purchased by a low- or moderate-income
buyer at an affordable sales price subject to the following:
(1)
The Township of Washington has demonstrated that there
are sufficient for-sale market-rate units within the municipality
on the multiple listing service for this program to be deemed viable
by COAH;
(2)
Eligible units may be new, pre-owned, or vacant;
(3)
The unit shall be certified to be in sound condition
as a result of an inspection performed by a licensed building inspector;
(4)
The minimum subsidy shall be $25,000 per unit, with
additional subsidy depending on the market prices in the Township
of Washington.
(5)
Funding for the program is being provided by development
fees and will be maintained in a separate interest-bearing account;
(6)
Sale prices shall conform to the standards in N.J.A.C.
5:94-7;
(7)
The Township of Washington is limited to ten (10)
units in its Fair Share Plan until the viability of the program is
documented. Upon completion of the total approved number of units,
the Township of Washington shall receive approval from COAH before
proceeding to buy down additional units;
(8)
The program is exempt from bedroom distribution requirements
pursuant to the Uniform Housing Affordability Controls set forth at
N.J.A.C. 5:80-26;
(9)
The program will be affirmatively marketed in accordance
with N.J.A.C. 5:94-7;
(10)
The Township of Washington has demonstrated
that the units will have the appropriate controls on affordability
in accordance with N.J.A.C. 5:94-7; and
(11)
The Township of Washington has demonstrated
the capability to administer the program in accordance with the Uniform
Housing Affordability Controls, N.J.A.C. 5:80-26. The Township of
Washington has designated the Municipal Housing Liaison and the Housing
Partnership for Morris County to administer the program The administrator
shall:
(a)
Maintain an up-to-date inventory of units that
meet the requirements of a buy down program;
(b)
Qualify and place income eligible households
in low- and moderate-income units upon initial occupancy;
(c)
Place income eligible households in low- and
moderate-income units as they become available during the term of
affordability controls;
(d)
Enforce the terms of the thirty-year deed restriction
and mortgage lien;
(e)
Set up a separate interest-bearing escrow account
for the buy down funds; and
(f)
Sponsor a home ownership counseling program
and post-purchase session for prospective purchasers.
B.
Because this buy-down program will be used in conjunction
with other programs identified in the Township's Fair Share Plan that
provide housing for mainly low-income households, buy down units are
exempt from the low-/moderate-income split pursuant to the Uniform
Housing Affordability Controls, N.J.A.C. 5:80-26, and shall all be
set aside for moderate-income households.
