Township of Montville, NJ
Morris County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Township Committee of the Township of Montville 8-13-2019 by Ord. No. 2019-28.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Fee schedule — See Ch. 169.
Land use — See Ch. 230.
[1]
Editor's Note: This ordinance also repealed former Ch. 73, which consisted of Art. I, Rules and Regulations, adopted by Ord. No. 1308, as amended; and Art. II, Municipal Housing Liaison, adopted 2-24-2009 by Ord. No. 2009-07.
A. 
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 shall apply except where inconsistent with applicable law.
B. 
The Township of Montville Planning Board has adopted 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 was subsequently endorsed by the governing body. The Fair Share Plan describes how the Township of Montville 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 Township and Fair Share Housing Center ("FSHC") on December 21, 2018 (hereinafter "FSHC settlement agreement"), and the Court Order approving same, which was entered by the Court on April 4, 2019 after a properly noticed fairness hearing.
C. 
The Township of Montville shall track the status of the implementation of the Fair Share Plan.
The Township of Montville shall comply with the following monitoring and reporting requirements regarding the status of the implementation of its Court-approved Housing Element and Fair Share Plan:
A. 
Beginning one year after the entry of the Township's Round 3 Judgment of Compliance and Repose, and on every anniversary of that date through 2025, the Township agrees to provide annual reporting of its Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs, Council on Affordable Housing, or Local Government Services, or other entity designated by the State of New Jersey, with a copy provided to Fair Share Housing Center (FSHC) and posted on the municipal website, using forms developed for this purpose by the New Jersey Department of Community Affairs (NJDCA), Council on Affordable Housing (COAH), or Local Government Services (NJLGS). 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. 
Beginning one year after the entry of the Township's Round 3 Judgment of Compliance and Repose, and on every anniversary of that date through 2025, the Township agrees to provide annual reporting of the status of all affordable housing activity within the municipality 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 COAH, or any other forms endorsed by the Court Appointed Special Master and FSHC.
C. 
The Fair Housing Act includes two provisions regarding action to be taken by the Township during its ten-year repose period. The Township will comply with those provisions as follows:
(1) 
For the midpoint realistic opportunity review due on July 2, 2020, as required pursuant to N.J.S.A. 52:27D-313, the Township 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 Township, 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) 
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 Township's Judgement of Compliance and Repose, and every third year thereafter, the Township 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 Township and Fair Share Housing Center on the issue of whether the Township has complied with its very-low-income housing obligation under the terms of this settlement.
(3) 
In addition to the foregoing postings, the Township may also elect to file copies of its reports with COAH or its successor agency at the state level.
The following terms when used in this chapter shall have the meanings given in this section:
ACT
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.
ADAPTABLE
Constructed in compliance with the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
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.)
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households.
AFFORDABLE
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.
AFFORDABLE DEVELOPMENT
A housing development all or a portion of which consists of restricted units.
AFFORDABLE HOUSING AGREEMENT
The written agreement between the owner of an affordable housing unit and the Township that imposes covenants, conditions, and restrictions on residential units to ensure that those housing units remain affordable to households of low- and moderate-income for a specified period of time.
AFFORDABLE HOUSING DEVELOPMENT
A development included in the Township's Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in the Township's Fair Share Plan prepared or implemented to address the Township's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act, credited pursuant to applicable COAH regulations, the FSHC settlement agreement, or an order of the Court.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population, whether that unit be located in a development wherein all the residents of the development are 62 years or older, or wherein at least 80% of the units are occupied by one person that is 55 years or older, or wherein 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.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
ASSISTED LIVING RESIDENCE
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.
CERTIFIED HOUSEHOLD
A household that has been certified by an Administrative Agent as a low-income household or moderate-income household.
COAH
The New Jersey Council on Affordable Housing.
DCA
The State of New Jersey Department of Community Affairs.
DECLARATION OF COVENANTS AND RESTRICTIONS
The document which is recorded with the deed to an affordable housing unit in the County Recording Office in order to effectuate the affordable housing agreement for the unit.
DEFICIENT HOUSING UNIT
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.
DEVELOPER
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.
DEVELOPMENT
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.
FORECLOSURE
The termination through legal processes of all rights of the mortgagor's heirs, successors, assigns or grantees in a unit covered by a recorded mortgage.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market rate units. Inclusionary developments must have a minimum 20% set-aside of affordable units if the development has five or more units and is a for-sale project, or a minimum 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.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal to 50% or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
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.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable county, as adopted annually by the Department.
MHC
The Montville Housing Committee.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in excess of 50% but less than 80% of the median household income.
MODERATE-INCOME UNIT
A restricted unit that is affordable to a moderate-income household.
MONTVILLE HOUSING COMMITTEE
The entity designated by the Township of Montville for the purpose of oversight of the affordable housing program within the Township, mediating appeals to decisions made by the Municipal Housing Liaison and/or Administrative Agent, assisting developers, and performing such other actions as may be designated by the Township Committee.
MUNICIPAL HOUSING LIAISON
The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for Montville.
NONEXEMPT SALE
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.
RANDOM SELECTION PROCESS
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).
REGIONAL ASSET LIMIT
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.
REHABILITATION
The repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
RENT
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.
REPAYMENT CLAUSE
The obligation of a seller exercising a repayment option to pay 95% of the price differential to Montville Township at closing for use in the municipal housing plan of Montville Township.
RESTRICTED UNIT
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 COMMITTEE
The Montville Housing Committee.
THE DEPARTMENT
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.).
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.
UTILITIES
The actual, or estimated, costs to provide each affordable housing apartment with water, sewers, electric, natural gas, and oil.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal to 30% or less of the median household income.
VERY-LOW-INCOME UNIT
A restricted unit that is affordable to a very-low-income household.
WEATHERIZATION
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.
A. 
The provisions of this chapter shall apply to all affordable housing developments and affordable housing units that currently exist and that are proposed to be created within the Township of Montville pursuant to the Township's most recently adopted Housing Element and Fair Share Plan.
B. 
Moreover, this chapter shall apply to all developments that contain low- and moderate-income housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.
C. 
Existing affordable housing developments in the AH-1, AH-2 and AH-4 Zones shall also be subject to Chapter 230, Article XX, of the Montville Township Code. In the event of a conflict between Chapter 230, Article XX, and this chapter, Chapter 230, Article XX, shall govern.
In inclusionary developments the following schedule shall be followed:
Maximum Percentage of Market-Rate Units Completed
Minimum Percentage of Low- and Moderate-Income Units Completed
25%
0%
25% + 1
10%
50%
50%
75%
75%
90%
100%
A. 
Low/moderate split and bedroom distribution of affordable housing units:
(1) 
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. At least 13% of all restricted rental units shall be very-low-income units (affordable to a household earning 30% or less of regional median income by household size). The very-low-income units shall be counted as part of the required number of low-income units within the development. At least 50% of the very-low-income units must be available to families.
(2) 
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be very-low- or low-income units.
(3) 
Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:
(a) 
The combined number of efficiency and one-bedroom units shall be no greater than 20% of the total low- and moderate-income units;
(b) 
At least 30% of all low- and moderate-income units shall be two-bedroom units;
(c) 
At least 20% of all low- and moderate-income units shall be three-bedroom units; and
(d) 
The remaining units may be allocated among two- and three-bedroom units at the discretion of the developer.
(4) 
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. This standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit.
B. 
Accessibility requirements:
(1) 
The first floor of all restricted rental townhouse dwelling units and all restricted units in all other multistory buildings shall be subject to the technical design standards of the Barrier Free SubCode, N.J.A.C. 5:23-7 and the following:
(2) 
All restricted rental 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) 
An adaptable toilet and bathing facility on the first floor; and
(b) 
An adaptable kitchen on the first floor; and
(c) 
An interior accessible route of travel on the first floor; and
(d) 
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; and
(e) 
If all of the foregoing requirements in Subsection B(2)(a) through (d) cannot be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f) 
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, or evidence that Montville has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible:
[1] 
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] 
To this end, the builder of restricted units shall deposit funds within the Township of Montville's Affordable Housing Trust Fund sufficient to install accessible entrances in 10% of the affordable units that have been constructed with adaptable entrances.
[3] 
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township of Montville for the sole purpose of making the adaptable entrance of an 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] 
The developer of the restricted units shall submit a design plan and cost estimate to the Construction Official of the Township of Montville for the conversion of adaptable to accessible entrances.
[5] 
Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meet the requirements of the Barrier Free SubCode, N.J.A.C. 5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to the Township's Affordable Housing Trust Fund in care of the Township Treasurer who shall ensure that the funds are deposited into the Affordable Housing Trust Fund and appropriately earmarked.
(g) 
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.
C. 
Design:
(1) 
In inclusionary developments, low- and moderate-income units shall be integrated with the market units to the extent possible.
(2) 
In inclusionary developments, low- and moderate-income units shall have access to all of the same common elements and facilities as the market units.
D. 
Maximum rents and sales prices:
(1) 
In establishing rents and sales prices of affordable housing units, the Administrative Agent shall follow the procedures set forth in UHAC, utilizing the most recently published regional weighted average of the uncapped Section 8 income limits published by HUD.
(2) 
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 rental units shall be affordable to households earning no more than 52% of median income.
(3) 
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, provided that at least 13% of all low- and moderate-income rental units shall be affordable to very-low-income households, which very-low-income units shall be part of the low-income requirement.
(4) 
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, at least three different sales prices must be available for each bedroom type associated with moderate-income ownership units, and at least two different sales prices must be made available for each bedroom type associated with low-income ownership units.
(5) 
In determining the initial sales prices and rent levels for compliance with the affordability average requirements for restricted units other than assisted living facilities and age-restricted developments, the following standards shall be used:
(a) 
A studio shall be affordable to a one-person household;
(b) 
A one-bedroom unit shall be affordable to a one-and-one-half-person household;
(c) 
A two-bedroom unit shall be affordable to a three-person household;
(d) 
A three-bedroom unit shall be affordable to a four-and-one-half-person household; and
(e) 
A four-bedroom unit shall be affordable to a six-person household.
(6) 
In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units in assisted living facilities and age-restricted developments, the following standards shall be used:
(a) 
A studio shall be affordable to a one-person household;
(b) 
A one-bedroom unit shall be affordable to a one-and-one-half-person household; and
(c) 
A two-bedroom unit shall be affordable to a two-person household or to two one-person households.
(7) 
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 homeowner 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) 
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 size household, including an allowance for tenant paid utilities, 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) 
Income limits for all units that are part of the Township's Housing Element and Fair Share Plan, and for which income limits are not already established through a federal program exempted from the Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1, shall be updated by the Township annually within 30 days of the publication of determinations of median income by HUD as follows:
(a) 
The income limit for a moderate-income unit for a household of four shall be 80% of the HUD determination of the median income for COAH Region 2 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 median income for COAH Region 2 for a family of four. The income limit for a very-low-income unit for a household of four shall be 30% of the HUD determination of the median income for COAH Region 2 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 the previous year.
(b) 
The income limits are based on carrying out the process in Subsection D(9)(a) based on HUD determination of median income for the current fiscal year, and shall be utilized by the Township until new income limits are available.
(10) 
In establishing sale prices and rents of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC, utilizing the regional income limits established by the Council:
(a) 
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 determined pursuant to Subsection D(9). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
(b) 
The rents of very-low-, low- and moderate-income units may be increased annually based on the permitted percentage increase in the Housing Consumer Price Index for the Northern New Jersey 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.
A. 
Affordable units shall utilize the same type of heating source as market units within an inclusionary development.
B. 
Tenant-paid utilities included in the utility allowance shall be set forth in the lease and shall be consistent with the utility allowance approved by the NJDCA for its Section 8 program.
A. 
In referring certified households to specific restricted units, the Administrative Agent shall, to the extent feasible and without causing an undue delay in the occupancy of a unit, strive to:
(1) 
Provide an occupant for each bedroom;
(2) 
Provide children of different sexes with separate bedrooms;
(3) 
Provide separate bedrooms for parents and children; and
(4) 
Prevent more than two persons from occupying a single bedroom.
B. 
The Administrative Agent and/or the Municipal Housing Liaison retains the right to refuse a larger unit to a family of inappropriate size when a waiting list exists which contains an appropriately sized family. For example, a certified family of one can be denied an offering of a three-bedroom unit when a certified family of four or five is available on a waiting list.
A. 
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 for a period of at least 30 years, until affordability controls are extended for an additional 30 years via an amended affordable housing agreement, or until Montville takes action to release the unit from such requirements in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented; prior to such action, 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. Upon expiration and non-extension of affordability controls, a recapture amount shall be due pursuant to N.J.A.C. 5:80-26.5(c).
B. 
The affordability control period for a restricted ownership unit shall be set forth in an affordable housing agreement (AHA), as set forth in § 73-17, and commence on the date the initial certified household takes title to the unit.
C. 
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 Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, 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 without the restrictions in place.
D. 
At the time of the initial sale of the unit, the initial purchaser shall execute and deliver to the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, 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 restrictions set forth in 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. 
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. 
A restricted ownership unit shall be required to obtain a fire prevention certification upon the first transfer of title following the removal of the restrictions 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. 
The initial purchase price for a restricted ownership unit shall be approved by the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer.
B. 
The Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.
C. 
The master deeds of inclusionary developments shall provide no distinction between the condominium or homeowner association fees and special assessments paid by low- and moderate-income purchasers and those paid by market purchasers, unless the master deed for the inclusionary project was executed prior to the enactment of UHAC.
D. 
The owners of restricted ownership units may apply to the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom.
A. 
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.
B. 
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 homeowner association fees, as applicable) does not exceed 33% of the household's eligible monthly income.
A. 
Prior to incurring any indebtedness to be secured by a restricted ownership unit, the owner shall apply to the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, for a determination in writing that the proposed indebtedness complies with the provisions of this section, and the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, shall issue such determination prior to the owner incurring such indebtedness.
B. 
With the exception of first purchase money mortgages, 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 the unit, as such price is determined by the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, in accordance with N.J.A.C. 5:80-26.6(b).
A. 
The owners of restricted ownership units may apply to the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, 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. 
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 Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, 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 Township's Administrative Agent, or an Administrative Agent appointed by a particular developer. Unless otherwise approved by the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, 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. 
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 for a period of at least 30 years, until affordability controls are extended for an additional 30 years via an amended affordable housing agreement, or until Montville takes action to release the unit from such requirements in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented. Prior to such action, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
B. 
The affordability control period for a restricted rental unit shall be set forth in an affordable housing agreement (AHA), as set forth in § 73-17. The AHA shall have priority over all mortgages on the property.
C. 
A restricted rental unit shall remain subject to the affordability controls of this chapter despite the occurrence of any of the following events:
(1) 
Sublease or assignment of the lease of the unit;
(2) 
Sale or other voluntary transfer of the ownership of the unit; or
(3) 
The entry and enforcement of any judgment of foreclosure on the property containing the unit.
A. 
A written lease shall be required for all restricted rental units 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 Township's Administrative Agent, or an Administrative Agent appointed by a particular developer.
B. 
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 Township's Administrative Agent, or an Administrative Agent appointed by a particular developer.
C. 
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 developer and/or landlord or to the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer. If the fees are paid to the Township's Administrative Agent or an Administrative Agent appointed by a particular developer they are to be applied to the costs of administering the controls applicable to the unit as set forth in this chapter.
D. 
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.
E. 
Changes in rent level.
(1) 
Rent levels may be changed annually at the renewal of each lease.
(2) 
Rent levels may not be changed for individual apartments unless rents have been changed for all apartments of the same classification, or unless a change in occupancy or income has occurred.
(3) 
The price of a rental housing unit may increase annually based on the percentage increase in median income for each housing region as determined from the most recently published regional weighted average of the uncapped Section 8 income limits published by HUD.
A. 
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) 
Very-low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of the regional median household income by household size.
(2) 
Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of the regional median household income by household size.
(3) 
Moderate-income rental units shall be reserved for households with a gross household income less than 80% of the regional median household income by household size.
B. 
The Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, shall certify a household as eligible for a restricted rental unit when the household is a very-low-income household, 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) 
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) 
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) 
The household is currently in substandard or overcrowded living conditions;
(4) 
The household documents the existence of assets with which the household proposes to supplement the rent payments; or
(5) 
The household documents reliable anticipated 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.
C. 
The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsection A(1) through Subsection B(5) above with the Township's Administrative Agent, or an Administrative Agent appointed by a particular developer, as outlined in § 73-22.
A. 
Restrictions on affordability and occupancy.
(1) 
Each affordable housing unit shall be restricted by an affordable housing agreement (AHA) signed by the owner or tenant and the Township which shall provide for covenants, conditions and restrictions so that such affordable housing units remain affordable to low- and moderate-income eligible households for at least 30 years from the date restrictions initially encumbered the unit.
(2) 
The AHA must be submitted to the Administrative Agent and/or Municipal Housing Liaison for execution by the Township prior to closing.
(3) 
The AHA provides for requirements to owners and occupants and establishes procedures for ensuring that the restricted residential units remain affordable to, and occupied by, families that meet income eligibility requirements.
(4) 
The AHA also provides that all affordable housing units remain the primary residence of the occupant family of record unless otherwise approved by the MHC.
B. 
Restrictions on sale or lease.
(1) 
The agreement, when executed, constitutes an encumbrance to the conveyance of title for the property identified therein. The original AHA shall be kept with the Township and a Declaration of Covenants and Restrictions shall be recorded with the property deed in the County Recording Office at the time restrictions are initially imposed on the unit.
(2) 
The agreement shall contain an expiration date at which time the unit shall no longer be subject to the covenants, conditions and restrictions.
C. 
Deeds.
(1) 
Any master deed that includes affordable housing units shall reference the affordable housing unit, the AHA, and the declaration of covenants and restrictions.
(2) 
A copy of the recorded deed and AHA for each unit shall be filed with the MHL.
D. 
Certificate of occupancy. No certificate of occupancy shall be issued for an affordable housing unit unless the Administrative Agent and/or Municipal Housing Liaison has certified that the sale or rental complies with the terms of this agreement and these regulations and has executed the AHA for that unit.
A. 
A committee, to be known as the "Montville Housing Committee," is hereby established, consisting of seven citizens of the Township to be appointed by the Township Committee, to serve without compensation. The terms of the members shall be three years, provided that the initial terms shall be staggered as follows: three members for one year, three members for two years and one member for three years.
B. 
Officers; experts and staff.
(1) 
The Committee shall elect a Chairperson and a Vice Chairperson from among its members, to serve for terms of one year. The Board may also appoint a Secretary, who may or may not be a member of the Board, and such other officers as it may determine.
(2) 
Subject to the approval of the Township Administrator, the Committee may employ or contract for and fix the compensation of such experts and staff as it deems necessary. Obligations for the foregoing shall not exceed the amounts agreed upon and appropriated for the Committee's use by the Township Committee.
C. 
The Committee shall have the following duties and powers:
(1) 
Mediate appeals to decisions made by the Administrative Agent and/or Municipal Housing Liaison. The MHC may recommend to the Township Committee that occupancy be disapproved for any or all affordable sale or rental units in instances where eligibility is in question.
(2) 
Provide assistance to developers by holding meetings with developers to insure that there is compliance with the ordinances, and provide the developers, owners or tenant associations any data which the MHC may deem to be helpful in accomplishing this purpose.
(3) 
Review annual set-aside occupancy reports prepared and filed by the developer, association or any party in interest, as may be required by its practices and procedures or as contained in its rules and regulations.
(4) 
Promulgate rules and regulations, subject to approval by the Township Committee and implementation in ordinance form.
(5) 
File periodic reports with the Township Committee concerning the discharge of its responsibilities and immediately report noncompliance with affordability control standards and procedures for such action as the Township Committee may deem appropriate.
(6) 
Perform such other actions as may be designated by the Township Committee.
D. 
Rules and regulations. The Committee shall be authorized to adopt bylaws and other rules and procedures, subject to the prior approval of the Township Committee, by resolution or ordinance, as may be appropriate.
E. 
Penalty. Any person, firm, corporation, partnership or association violating the provisions of any subsection of this section, or any rule, regulation or order promulgated pursuant thereto, shall be subject to such penalties as are provided for in Chapter 1, Article III, General Penalty.
A. 
The position of Municipal Housing Liaison (MHL) for the Township of Montville is established by this chapter. The Township shall make the actual appointment of the MHL by means of a resolution.
(1) 
The MHL must be either a full-time or part-time employee of Montville.
(2) 
The person appointed as the MHL must be reported to the Court and thereafter posted on the Township's website.
(3) 
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) 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township of Montville, including the following responsibilities which may not be contracted out to the Administrative Agent, or the Administrative Agent appointed by a specific developer:
(a) 
Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, Administrative Agents and interested households;
(b) 
The implementation of the Affirmative Marketing Plan (except for new developments, which are marketed by an Administrative Agent hired by the developer) and affordability controls;
(c) 
When applicable, supervising any contracting Administrative Agent;
(d) 
Monitoring the status of all restricted units in the Township's Fair Share Plan;
(e) 
Compiling, verifying and submitting annual reports as required;
(f) 
Coordinating meetings with affordable housing providers and Administrative Agents, as applicable; and
(g) 
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.
(h) 
If applicable, serving as the Administrative Agent for some or all of the restricted units in the Township of Montville as described in § 73-20 below.
(5) 
The Municipal Housing Liaison shall have oversight responsibilities for the certification procedures followed by the Administrative Agent and the certification of applicants, including the following:
(a) 
The MHL and/or MHC may intervene to correct or stop certification procedures which are not in compliance with these rules and regulations.
(b) 
The MHL shall have the right to alter or rescind certifications, or to direct the developer to review and correctly certify any applicants that the MHL finds were improperly classified.
A. 
Subject to the approval of the Court, the Township of Montville shall designate one or more Administrative Agent(s) to administer and to affirmatively market the affordable units constructed in the Township in accordance with UHAC and this chapter. An Administrative Agent may be either an independent entity serving under contract to and reporting to the Township, or reporting to a specific individual developer.
B. 
An operating manual for each affordable housing program shall be provided by the Administrative Agent(s) to be adopted by resolution of the governing body and may be subject to approval of the Court appointed Special Master or the Court. The operating manual(s) shall be available for public inspection in the office of the Township Clerk, in the office of the Municipal Housing Liaison, and in the office(s) of the Administrative Agent(s). The Municipal Housing Liaison shall supervise the work of the Administrative Agent(s).
C. 
The Township Administrative Agent shall monitor and work with any individual Administrative Agents appointed by individual developers. The Administrative Agent(s) shall perform the duties and responsibilities of an Administrative Agent as set forth in UHAC, including those set forth in Sections 5:80-26.14, 16 and 18 thereof, which includes:
(1) 
Affirmative marketing:
(a) 
Conducting an outreach process to affirmatively market affordable housing units in accordance with the Affirmative Marketing Plan of the Township of Montville and the provisions of N.J.A.C. 5:80-26.15; and
(b) 
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.
(2) 
Household certification:
(a) 
Soliciting, scheduling, conducting and following up on interviews with interested households;
(b) 
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) 
Providing written notification to each applicant as to the determination of eligibility or noneligibility;
(d) 
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) 
Creating and maintaining a referral list of eligible applicant households;
(f) 
For initial occupancy of affordable units, employing a random selection process as provided in the Affirmative Marketing Plan of the Township of Montville when referring households for certification to affordable units; and
(3) 
Affordability controls:
(a) 
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) 
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) 
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; and
(d) 
Communicating with lenders regarding foreclosures.
(4) 
Resales and rerentals:
(a) 
Instituting and maintaining an effective means of communicating information between owners and the Township's Administrative Agent, or any Administrative Agent appointed by a specific developer, regarding the availability of restricted units for resale or rerental; and
(b) 
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.
(5) 
Processing requests from unit owners:
(a) 
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) 
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; and
(c) 
Notifying the municipality of an owner's intent to sell a restricted unit.
(6) 
Enforcement:
(a) 
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) 
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 Township's Administrative Agent, or any Administrative Agent appointed by a specific developer; and
(c) 
Creating and publishing a written operating manual for each affordable housing program administered by the Township's Administrative Agent, or any Administrative Agent appointed by a specific developer, to be approved by the Township Council and the Court, setting forth procedures for administering the affordability controls.
(7) 
Public information:
(a) 
Providing sufficient staff to answer questions from applicants and interested parties regarding all phases of the marketing plan, the list, sale and rental of affordable housing units, amenities, and pertinent laws and regulations.
(b) 
Providing sample floor plans and information to applicants regarding the development in general, affordable housing units specifically, and approximate costs.
(c) 
Providing information to applicants regarding any developer-sponsored mortgage programs, government mortgage programs and commercially available mortgages. The Administrative Agent shall explain all deed restrictions and covenants, and their effect of the sale or rental of any affordable housing units.
(d) 
Ensuring availability for inspection and providing a copy of its affordable housing agreement (AHA), prospectus, public offering or their equivalents to all applicants as required by law. The Administrative Agent shall submit the AHA for execution on behalf of the Township prior to initial certificate of occupancy.
(8) 
Additional responsibilities:
(a) 
The Township's Administrative Agent shall have the authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.
(b) 
The Township's 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. The Township's Administrative Agent will be responsible for collecting monitoring information from any Administrative Agents appointed by specific developers.
(c) 
The Township's Administrative Agent, or any Administrative Agent appointed by a specific developer, shall attend continuing education sessions on affordability controls, compliance monitoring, and affirmative marketing at least annually and more often as needed.
A. 
The Township of Montville shall adopt by resolution an Affirmative Marketing Plan, that is compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
B. 
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 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 marketing activities toward Housing Region 2 and is required to be followed throughout the period of restriction.
C. 
The Township 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. The Township's Administrative Agent designated by the Township of Montville, or any Administrative Agent appointed by a specific developer, shall implement the Affirmative Marketing Plan to assure the affirmative marketing of all affordable units.
D. 
In implementing the Affirmative Marketing Plan, the Township's Administrative Agent, or any Administrative Agent appointed by a specific developer, 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.
E. 
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 Township's Administrative Agent, or any Administrative Agent appointed by a specific developer, shall consider the use of language translations where appropriate.
F. 
The affirmative marketing process for available affordable units shall begin at least four months (120 days) prior to the expected date of occupancy.
G. 
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.
H. 
The following entities shall be notified of the availability of affordable housing units in the Township of Montville: Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, the Morris County Chapter of the 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.
I. 
The costs of advertising and affirmative marketing of the affordable units shall be the responsibility of the developer, sponsor or owner.
A. 
Responsibility.
(1) 
The Administrative Agent appointed by a specific developer shall be responsible for certifying applicants as eligible for affordable housing units until all of the affordable housing units at the development have been filled.
(2) 
After all affordable housing units in a development have been filled, the Township Administrative Agent will be responsible for certifying additional applicants for resale. It shall be the responsibility of the Administrative Agent appointed by a specific developer to certify additional applicants for rerental.
B. 
Verification of information.
(1) 
Identity. The Administrative Agent will first substantiate that the application for certification of eligibility was submitted by the individual named on the waiting list, and to whom the application number was assigned to make certain that the individual registered with the Housing Office was the applicant. This is also to avoid duplicate applications being submitted by one person using other people's applications, or submission of multiple applications for one affordable housing unit by separate individuals within the same family unit who will all reside in the same affordable housing unit.
(2) 
Eligibility.
(a) 
The Administrative Agent may request any additional information from the applicant beyond that which is included in the application for certification of eligibility, which is deemed by the Administrative Agent to be necessary to determine whether the applicant meets the eligibility criteria for certification.
(b) 
The Administrative Agent shall allow an applicant at least 14 days to comply with a request for additional information and, if necessary, shall grant an additional seven-day extension.
(c) 
If information is not received after the 21 days, the Administrative Agent will send a "letter of intent to deny" to the applicant as described in § 73-22D(2)(g) below.
C. 
Fees.
(1) 
Application. There shall be an application fee, which is set forth in Chapter 169, Fee Schedule, for precertification for the Montville Township resale list which shall be good for a one-year period from the date of certification. The fee shall be paid by the applicant.
(2) 
Certification administration.
(a) 
There shall be a resale certification fee, which is set forth in Chapter 169, Fee Schedule, payable to the Township of Montville for administrative expenses of certification of an applicant for a unit to be resold or rerented by the Housing Office. Such fee is to cover costs of the certification process, monitoring the price controls during occupancy for resale units, monitoring income each year in rental units, and other administrative salaries and costs associated with the oversight of affordable housing.
(b) 
The MHC shall review the fee structure annually or more frequently if it's deemed necessary. The MHC shall recommend changes in the fee structure to the Township Committee.
(c) 
Payment and collection of the administrative fee shall be a precondition of execution of the affordable housing agreement by the Municipal Housing Liaison.
D. 
Certification process.
(1) 
Waiting list of certified applicants.
(a) 
The Administrative Agent shall interview a sufficient number of applicants from the list in order to certify the lesser of 125 applicants or all of the those on the list. The MHC may establish a smaller number at its discretion.
(b) 
After all of the then available affordable housing units have been filled, the Administrative Agent shall maintain a list of certified applicants for each category of income level and unit size equal to not less than 150% of the number of affordable housing units in that classification remaining to be marketed in the entire development.
(c) 
For example, if there are 20 one-bedroom low-income units yet to be built in the development, then the development shall maintain an inventory of certified applicants for that classification of at least 30 names.
(d) 
This list must be kept current until all units have been marketed.
(e) 
In the case of rental units, the Administrative Agent, upon exhausting names certified from the list, may then request a secondary list from the Municipal Housing Liaison. Said list will be a computer-generated listing compiled from the existing waiting list. Said list shall be priority numbered based on the date of application and submitted by the MHL. This list shall be the official "secondary" priority list utilized for renting purposes only.
(2) 
Documentation of income.
(a) 
Adequate documentation of low- or moderate-income status, as required to be disclosed in the application for certification of eligibility, must be presented to and reviewed by the Administrative Agent.
(b) 
Every occupant 18 years of age or over, who will live in the unit and receives income, shall be required to provide income documentation.
(c) 
Such documentation must include: copies of federal and state tax returns for the prior three years, including W-2s, 1099s and all attached schedules, an income statement, a statement of assets and liabilities, gains from sale or disposition of property and any other income-related information necessary to present a complete, accurate and true statement of the income of the applicant.
(d) 
Income shall be figured on the basis of gross receipts, with no adjustments allowed. For the purposes of this article, all income realized or unrealized, taxable or tax exempt, shall be considered.
(e) 
Income shall be attributed to assets for which no other accountable income is given, such as real estate and stock holdings, at 5.25% of the net value. Assets of depreciable personal property, such as vehicles, furnishings and jewelry, shall be exempt from valuation.
(f) 
The applicant shall be given at least 14 calendar days to provide the necessary supporting documents. The fourteen-day period shall begin on the date of the certification interview at which the information was requested, or from the date the applicant receives the formal application and request if such request is sent by mail.
(g) 
If the applicant does not provide the income documentation within the 14 days provided above, then the Administrative Agent shall notify the applicant of the intent to deny the application for failure to provide the requested information. The notice of intent to deny shall be sent by certified mail, return receipt requested.
[1] 
The applicant shall be given at least 10 days from delivery of the letter to provide the outstanding information.
[2] 
The letter of intent to deny shall state explicitly what additional information is needed to comply and the date by which the information is to be provided.
[3] 
The letter shall state that the failure to comply will result in a denial of the application.
[4] 
If the applicant does not provide the outstanding information within the 10 days allowed, the Administrative Agent shall send a letter of denial per § 73-22D(5) below.
[5] 
The Administrative Agent shall have the discretion to extend the ten-day period. If extensions are granted, the Administrative Agent shall notify the applicants in writing by first class mail.
(3) 
Certified applicants will be listed in the same order as designated on the list separated by income classification and bedroom size. Certified applicants will be offered units as they are available in the order established in this section.
(4) 
Notification to certified applicants.
(a) 
The Administrative Agent shall notify all certified applicants of their eligibility by certified mail, return receipt requested.
(b) 
The notification shall state the name and address of the applicant and of all persons who will be occupying the unit; whether the applicant qualifies for a low-income or moderate-income unit; the size of the unit; and the basis of the classification.
(c) 
The applicant must be advised the number of days he/she has to accept or reject the offer of a unit and instructions on how to proceed.
(d) 
The applicant shall be advised of his appeal rights to the MHC if he/she disagrees with the certification classification of income or unit size and shall be given instructions on how to initiate the appeal.
(5) 
Notification of denial.
(a) 
The Administrative Agent shall notify the applicant in writing by certified mail, return receipt requested, that he/she has been denied and the explicit basis for the denial.
(b) 
The notice of denial shall advise the applicant of his/her appeal rights to the MHC if he/she disagrees with the decision and shall be given instructions on how to execute those appeal rights.
E. 
Duration of certification.
(1) 
A certification of eligibility shall be valid for 12 months from the date of the certification.
(2) 
If at the end of 12 months additional units remain to be marketed, all remaining certified applicants will be contacted by the Administrative Agent to determine their continued interest in obtaining affordable housing in the development. Applicants who indicated a continued interest shall be asked to submit updated documentation to the Administrative Agent to recertify their eligibility.
F. 
Revocation.
(1) 
A certification may be revoked by the Administrative Agent upon evidence of the following:
(a) 
False, misleading or incomplete statements or information on the application for certification of eligibility or at the interview;
(b) 
A change in the household income of the applicant prior to the purchase or rental of the unit such that the income level of the applicant would no longer meet the eligibility criteria for which he/she was certified;
(c) 
Failure of the applicant to secure mortgage financing within 60 days of submission of a mortgage application;
(d) 
Adjudicated criminality on the part of any member of the household;
(e) 
Poor credit history.
(2) 
Notification.
(a) 
The Administrative Agent shall notify the applicant in writing by certified mail return receipt requested of the revocation of his/her certification noting the specific reasons for the action.
(b) 
The applicant shall be advised of his/her appeal rights to the MHC if he/she disagrees with the revocation of his/her certification, and shall be given instructions on how to initiate the appeal.
(c) 
If the Administrative Agent has initiated the revocation of certification, or questions the ineligibility of an applicant, the Administrative Agent shall notify the applicant of its intent to revoke the certification in writing by certified mail return receipt requested. The applicant will be instructed to appear before a hearing of the MHC at a regularly scheduled meeting, or a special meeting called for the purpose, such hearing to occur not less than 30 days from the date of the letter of intent to revoke.
(d) 
Waiver of his/her rights to a hearing or failure to appear shall constitute acceptance of the revocation by the applicant, and forfeiture to any future rights of appeal.
(3) 
Appeal. The applicant shall follow the appeal procedures outlined in § 73-22J of this article.
G. 
Review by the MHL/MHC.
(1) 
Rights of the Municipal Housing Liaison.
(a) 
In all cases, the MHL and the MHC retain the right to review all records and files kept by the Administrative Agent related to affordable housing and the certification of applicants.
(b) 
Where the MHL believes that continuation of a procedural error will result in further errors or an irreversible harm, then the MHL may instruct the Administrative Agent to halt the action immediately, for a period not to exceed 31 days.
[1] 
The MHL shall notify the Administrative Agent, the MHC and the Township Committee in writing of his/her action.
[2] 
The MHL shall attempt to mediate the problem with the Administrative Agent. If successful, the MHL shall notify the MHC and Township Committee of the outcome.
(2) 
Rights of the MHC.
(a) 
Where the MHL has found that the Administrative Agent has made procedural errors in the certification process that are not sufficient in his/her discretion to immediately halt the activity, the MHL shall notify the MHC of the problem and recommend corrective action.
(b) 
Upon review of the MHL's findings and recommendations, the MHC shall notify the Administrative Agent in writing advising him/her of the problem and direct the Administrative Agent to discontinue the action and institute whatever corrections are required. The Administrative Agent may request a meeting with the MHC to discuss any areas of disagreement.
(3) 
Hearing.
(a) 
If the issue cannot be resolved between the MHL and the Administrative Agent, then the MHC shall hold a hearing at its next regular meeting, or at a special meeting called for the purpose.
(b) 
The MHC shall hear testimony on the record from the MHL, the Administrative Agent and any other interested parties regarding the certification procedural errors.
(c) 
The decision of the MHC shall be considered final. The Administrative Agent may appeal the decision of the MHC to the Township Committee.
H. 
Acceptance of units.
(1) 
Only individuals who are certified as eligible under this article shall be permitted to purchase or rent affordable housing units.
(2) 
An applicant who has been certified as eligible for housing will be called in for an interview by the Administrative Agent to explain financing alternative, to explain the provisions of the affordable housing agreement, and to sign contracts.
(a) 
This interview shall constitute a formal offer for sale or rental of an affordable housing unit.
(b) 
The applicant will have seven days from the date of the formal offer to advise the Administrative Agent of his/her intent to accept or reject a unit.
(c) 
The applicant will be afforded reasonable opportunity to secure financing through the Administrative Agent, a government sponsored program or commercial lender.
(d) 
The applicant for a for-sale unit will have up to 60 days from his/her mortgage commitment date to close on the unit. The applicant for a rental unit will have up to 21 days from the date of formal offer on a rental unit to sign the lease agreement. At the discretion of the Administrative Agent with the prior approval of the MHC, the Administrative Agent may extend the period for a maximum of 60 days. After this period, approval will be required in writing from the MHC.
(3) 
Any applicant who refused to accept a unit in a timely fashion or cannot secure financing will be dropped from the certification list.
I. 
Certified tenants in rental units.
(1) 
Lease terms shall be for one year.
(2) 
Tenants shall be income certified by the Administrative Agent at the expiration of their leases yearly. Full financial documentation shall be required.
J. 
Appeals by applicants.
(1) 
If an applicant contests a decision by the Administrative Agent regarding the unit size, income classification, denial or revocation of certification, then the applicant shall have the right to appeal such decision to the MHC.
(a) 
If the applicant wishes to exercise his/her right to appeal, he/she must notify the Administrative Agent and the MHL in writing within five business days from receipt of written notification from the Administrative Agent.
(b) 
The letter of appeal must present the applicant's reasons for believing why the action taken by the Administrative Agent was inappropriate and what the applicant believes should have been the proper action.
(2) 
The MHL, at his/her discretion, may attempt to mediate the conflict between the applicant and the Administrative Agent. If a satisfactory conclusion cannot be reached, the MHL shall schedule a hearing of the dispute at the next regularly scheduled meeting of the MHC, or at a special meeting called for the purpose.
(3) 
The MHC shall conduct a hearing of the dispute at which it will accept evidence on the record verbally or in writing from the applicant, the Administrative Agent and any other interested parties. The decision of the MHC shall be final.
(4) 
The Administrative Agent or the applicant shall have the right to appeal the decision of the MHC directly to the Township Committee. Appeal to the Township Committee must be made in writing to the Township Clerk within five business days of the date of the MHC decision.
A. 
Notice of intent.
(1) 
Upon decision to sell or vacate an affordable unit, the current owner/occupant shall submit an offer to sell or vacate to the Administrative Agent within 90 days of the intended date to sell or vacate.
(2) 
The offer to sell or vacate shall list the name, address and telephone number of the owner; the date the unit was purchased; the price of the unit or rent level; location of the unit; a statement of compliance with the price affordability controls; and copies of cost statements of any improvements previously approved by the MHC.
(3) 
The offer to sell or vacate shall be available at the office of the MHL.
B. 
Certification of purchaser/tenant.
(1) 
Upon receipt of an offer to sell or vacate, the Municipal Housing Liaison or Administrative Agent, as appropriate, shall certify an eligible applicant as per the certification procedures outline above.
(2) 
Wherever possible, when units are resold or rerented they should retain their original classification for low or moderate income.
(3) 
The last sale price of the unit shall form the basis for the resale price.
(4) 
The MHL shall approve each resale or rerental in writing.
C. 
Inability to certify a purchaser.
(1) 
In the event the MHL is unable to certify an appropriate purchaser, the current owner shall take steps to market the unit in an appropriate fashion, including proper advertising, for a period of 60 days. If, after the owner has demonstrated an inability to market the unit, with due diligence, to a qualified purchaser, then the MHC may, at its discretion, grant the owner an exemption so that he/she may sell the unit to the alternate income level, or under market conditions to a nonqualified purchaser.
(2) 
Alternatively, the municipality may have the option to purchase the unit for the maximum price permitted.
(3) 
In all cases, resale controls shall remain in effect even if the unit was sold to the municipality or to a market purchaser.
D. 
Exempt transaction.
(1) 
The following title transactions shall be deemed nonsales and the Township shall provide the owner receiving title with written confirmation of the exemption to those restrictions that determine occupancy of the unit:
(a) 
Transfer of ownership between spouses;
(b) 
Transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or separation;
(c) 
Transfer of ownership between family members by will or intestate succession, subject to income eligibility for occupancy;
(d) 
Transfer of ownership through an executor's deed to any person, subject to income eligibility for occupancy;
(e) 
Transfer of ownership by court order.
(2) 
An exempt transfer of ownership does not terminate the resale restrictions or existing liens on the property. All liens must be satisfied in full prior to subsequent resale, and all subsequent resale prices must be calculated using the resale price index in compliance with the terms of the affordable housing agreement and the rules and regulations specified herein.
A. 
Mortgage restriction. Any mortgage for an affordable housing unit shall contain a provision requiring the holder of it to notify the Township in the event of the institution of a foreclosure action. The Township shall have the right to intervene at all times in any foreclosure action.
B. 
All foreclosures shall be governed in connection with resale controls in accordance with the provision of N.J.A.C. 5:93-9 et seq.
A. 
Notice.
(1) 
Upon a violation of any of the provisions of the affordable housing agreement by the owner of an affordable housing unit, the Township may give written notice to the owner specifying the nature of the violation and requiring a correction within a reasonable period of time.
(2) 
The owner shall be obligated to notify the Township that the violation has been corrected within the reasonable time period or that additional time is requested.
(3) 
If the owner does not forward written notification, as required, or correct the violation within the time specified, the Township may declare a default of the affordable housing agreement.
B. 
Forfeiture of interest.
(1) 
The interest of any owner may, at the option of the Township, be subject to forfeiture in the event of substantial breach of any of the terms, restrictions and provisions of the affordable housing agreement which remains uncured for the period of 60 days after service of the written notice of violation upon the owner.
(2) 
The notice of violation shall specify the particular infraction and shall advise the owner that his or her right to continued ownership may be subject to forfeiture if such infraction is not abated within 60 days of receipt of the notice.
C. 
Enforcement.
(1) 
The provisions of this section may be enforced by the Township by court action seeking a judgment which would result in the termination of the owner's equity or other interest in the unit. Any judgment shall be enforceable as if same were a judgment of default of the purchase money mortgage and shall constitute a lien against the particular affordable housing unit.
(2) 
A court judgment of default shall obligate the owner to accept the first offer to purchase from any certified applicant, who has been referred to the owner by the Township, with such offer to purchase being no more than the maximum permitted resale price as permitted by the terms of the affordable housing agreement and these regulations.
(3) 
The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions of the affordable housing agreement until such time as title is conveyed to a new owner.