[HISTORY: Adopted by the Mayor and Council
of the Borough of Hopatcong 9-17-2008 by Ord. No. 22-2008.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed
former Ch. 57, Affordable Housing, which included Art. I, Mandatory
Development Fees, adopted 7-20-2005 by Ord. No. 22-2005.
In Holmdel Builder's Association v. Holmdel,
121 N.J. 550 (1990), the New Jersey Supreme Court determined that
mandatory development fees are authorized by the Fair Housing Act
of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution,
subject to Council on Affordable Housing developing rules. The purpose
of this article is to establish standards for the collection, maintenance
and expenditure of development fees pursuant to COAH's rules. Fees
collected pursuant to this article shall be used for the sole purpose
of providing low- and moderate-income housing. This article shall
be interpreted within the framework of COAH's rules on development
fees.
A.
AFFORDABLE HOUSING DEVELOPMENT
COAH
DEVELOPMENT FEES
EQUALIZED ASSESSED VALUE
SUBSTANTIVE CERTIFICATION
As used in this article, the following terms shall
have the meaning indicated:
A development included in the Housing Element and Fair Share
Plan, and includes, but it not limited to, an inclusionary development,
a municipal construction project or a one-hundred-percent affordable
development.
The New Jersey Council on Affordable Housing.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in applicable statutes or COAH's rules.
The value of a property determined by the municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
Estimates at the time of issuance of a building permit may be obtained
utilizing estimates for construction cost. Final equalized assessed
value will be determined at a project's completion by the municipal
Tax Assessor.
A determination by COAH approving a municipality's Housing
Element and Fair Share Plan in accordance with the provisions of the
Fair Housing Act and the rules and criteria as set forth herein. A
grant of substantive certification may run for a period of 10 years
beginning on the date that a municipality files its Housing Element
and Fair Share Plan with the Council in accordance with N.J.S.A. 52:27D-313,
but shall not extend beyond December 31, 2019.
B.
All other definitions used in this article shall be
as set forth in N.J.S.A. 52:27D-304.
A.
Residential development fees.
(1)
Within all zoning districts, residential developers
shall pay a development fee of 1 1/2% (0.015) of the equalized
assessed value for residential development, provided no increased
density is permitted.
(2)
If a "d" variance is granted pursuant to N.J.S.A.
40:55D-70(d)(5), then the additional residential units realized (above
what is permitted by right under the existing zoning) will incur a
bonus development fee of 6% rather than the development fee of 1 1/2%.
However, if the zoning on a site has changed during the two-year period
preceding the filing of the "d" variance application, the density
for purposes of calculating the bonus development fee shall be the
highest density permitted by right during the two-year period preceding
the filing of the "d" variance application.
B.
Nonresidential development fees. All nonresidential
developers shall pay a fee of 2 1/2% (0.025) of the equalized
assessed value of the land and improvements for all new nonresidential
construction on an unimproved lot or lots; or 2 1/2% (0.025)
of the increase in equalized assessed value of the additions to existing
structures to be used for nonresidential purposes. If a "d" variance
is granted pursuant to N.J.S.A. 40:55D-70(d)(4), then the additional
floor area realized (above what is permitted by right under the existing
zoning) will incur a bonus development fee of 6% of the equalized
assessed value or the appraised value on the document utilized for
construction financing. However, if the zoning on a site has changed
during the two-year period preceding the filing of the "d" variance
application, the density for purposes of calculating the bonus development
fee shall be the highest density permitted by right during the two-year
period preceding the filing of the "d" variance application.
A.
Developers of low- and moderate-income units shall
be exempt from paying development fees.
B.
Expansion of existing residential structures shall
be exempt, unless the expansion increases the existing living space
by more than 50%.
C.
Exemptions for all nonresidential development shall
be as set forth in P.L. 2008, c.46.
Developers that are required to pay the development
fees as provided for in this article shall pay the fee in effect at
the time they apply for a final certificate of occupancy.
A.
There is hereby created an interest-bearing housing
trust fund in the name of Hopatcong Borough for the purpose of receiving
development fees from residential and nonresidential developers. All
development fees paid by developers pursuant to this article shall
be deposited in this fund. No money shall be expended from the housing
trust fund unless the expenditure conforms to a spending plan approved
by COAH.
B.
If COAH determines that the Borough of Hopatcong is
not in conformance with COAH's rules on development fees, COAH is
authorized to direct the manner in which all development fees collected
pursuant to this article shall be expended. Such authorization is
pursuant to this article, COAH's rules on development fees, and the
written authorization from the governing body to the bank in which
the housing trust fund is located.
A.
Money deposited in the housing trust fund may be used
for any activity approved by COAH for addressing the Borough of Hopatcong's
low- and moderate-income housing obligation. Such activities may include,
but are not necessarily limited to, housing rehabilitation, new construction,
regional contribution agreements, the purchase of land for low- and
moderate-income housing, assistance designed to render units to be
more affordable to low- and moderate-income people, and administrative
costs necessary to implement the Borough's housing element. The expenditure
of all money shall conform to a spending plan approved by COAH.
B.
At least 30% of the revenues collected shall be devoted
to low- and moderate-income households in affordable units included
in the municipal Fair Share Plan in accordance with the standards
set forth in N.J.A.C. 5:97-8.8. Examples of such activities include,
but are not limited to, down payment and closing assistance, low-interest
loans and rental assistance.
C.
No more than 20% of the revenues shall be expended
on administrative costs necessary to develop, revise, or implement
the housing plan element of the Borough Master Plan. Examples of eligible
administrative activities include personnel, consultant services,
space costs, consumable supplies, and rental or purchase of equipment
directly associated with plan development or plan implementation.
D.
Development fees shall not be expended to reimburse
the Borough of Hopatcong for housing activities that preceded substantive
certification.
The Borough shall complete and return to COAH
all monitoring forms related to the collection of development fees,
expenditures of revenues and implementation of the spending plan certified
by COAH. Quarterly financial reports and annual program implementation
and auditing reports shall be completed by the Borough on forms designed
by COAH.
A.
In the event that any of the conditions set forth in Subsection B below occur, COAH shall be authorized, on behalf of the Borough, to direct the manner in which all development fees collected pursuant to this article shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of COAH upon the Borough Clerk's receipt of written notification from COAH that such a condition has occurred. In furtherance of the foregoing, the Borough shall, in establishing a bank account, ensure that the Borough has provided whatever express written authorization may be required by the bank to permit COAH to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Borough Clerk.
B.
Occurrence of the following may result in COAH taking
an action pursuant to N.J.A.C. 5:91-15.1:
(1)
Failure to submit a spending plan within the time
limits imposed by COAH.
(2)
Failure to meet deadlines for information required
by COAH in its review of this article, the Borough's housing element
or spending plan.
(3)
Failure to address COAH's conditions for approval
of a plan to spend development fees within the deadlines imposed by
COAH.
(4)
Failure to address COAH's conditions for substantive
certification within the deadlines imposed by COAH.
(5)
Failure to submit accurate monitoring reports within
the time limits imposed by COAH.
(6)
Failure to implement the spending plan for development
fees within the time limits imposed by COAH, or within reasonable
extensions granted by COAH.
(7)
Expenditure of development fees on activities not
permitted by COAH.
(8)
Other good cause demonstrating that the revenues are
not being used for the intended purpose.
This article shall expire if:
A.
COAH dismisses or denies the Borough's petition for
substantive certification.
B.
The Borough's substantive certification is revoked.
C.
The substantive certification expires prior to the
Borough's filing an adopted housing element with COAH, petitioning
for substantive certification or receiving COAH's approval of this
article.
[Added 12-17-2008 by Ord. No. 26-2008]
[Amended 5-20-2020 by Ord. No. 9-2020]
The purpose of this article is to create the administrative mechanisms needed for the execution of the Borough of Hopatcong's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985 and to administer and enforce the short-term rental requirements of Chapter 189 of the Code of the Borough of Hopatcong.
As used in this article, the following terms
shall have the meanings indicated:
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Borough of Hopatcong to ensure that the restricted units under
administration are affirmatively marketed and sold or rented, as applicable,
only to low- and moderate-income households.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Borough of Hopatcong.
A.
Establishment of position of Municipal Housing Liaison.
There is hereby established the position of Municipal Housing Liaison
for the Borough of Hopatcong.
B.
Subject to the approval of the Council on Affordable
Housing (COAH), the Municipal Housing Liaison shall be appointed by
the governing body and may be a full- or part-time municipal employee.
C.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Hopatcong, including the following responsibilities, which may not be contracted out, exclusive of Subsection C(6) which may be contracted out:
(1)
Serving as the Borough of Hopatcong's primary point
of contact for all inquiries from the state, affordable housing providers,
administrative agents, and interested households;
(2)
Monitoring the status of all restricted units in the
Borough of Hopatcong's Fair Share Plan;
(3)
Compiling, verifying, and submitting annual reports
as required by COAH;
(4)
Coordinating meetings with affordable housing providers
and administrative agents, as applicable;
(5)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
D.
Subject to approval by COAH, the Borough of Hopatcong may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing program of the Borough of Hopatcong, except for those responsibilities which may not be contracted out pursuant to Subsection C above. If the Borough of Hopatcong contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.
E.
Compensation. Compensation shall be fixed by the governing
body at the time of the appointment of the Municipal Housing Liaison.
F.
Administrative powers and duties assigned to the Municipal
Housing Liaison.
(1)
Affirmative marketing:
(a)
Conducting an outreach process to ensure affirmative
marketing of affordable housing units in accordance with the Affirmative
Marketing Plan of the Borough of Hopatcong 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 living in the housing region and eligible
applicant households with members working in the housing region where
the units are located; and
(f)
Employing the random selection process as provided
in the Affirmative Marketing Plan of the Borough of Hopatcong when
referring households for certification to affordable units.
(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 appropriate county's register of deeds or county clerk's
office after the termination of the affordability controls for each
restricted unit;
(d)
Communicating with lenders regarding foreclosures;
and
(e)
Ensuring the issuance of continuing certificates
of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)
Resale and rental:
(a)
Instituting and maintaining an effective means
of communicating information between owners and the administrative
agent regarding the availability of restricted units for resale or
rental; and
(b)
Instituting and maintaining an effective means
of communicating information to low- and moderate-income households
regarding the availability of restricted units for resale or rerental.
(5)
Processing request from unit owners:
(a)
Reviewing and approving requests from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership;
(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 cost of central air-conditioning systems;
and
(c)
Processing requests and making determinations
on requests by owners of restricted units for hardship waivers.
(6)
Enforcement:
(a)
Securing annually lists 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 administrative agent;
(c)
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made;
(d)
Sending annual mailings to all owners of affordable
dwelling units, reminding them of the notices and requirements outlined
in N.J.A.C. 5:80-26.18(d)4;
(e)
Establishing a program for diverting unlawful
rent payments to the municipality's affordable housing trust fund
or other appropriate municipal fund approved by the DCA;
(f)
Creating and publishing a written operating
manual, as approved by COAH, setting forth procedures for administering
such affordability controls; and
(g)
Providing annual reports to COAH as required.
(7)
The administrative agent shall have authority to take
all actions necessary and appropriate to carry out its responsibilities
hereunder.
