[Added by Ord. No. 4-2019, 3-26-2019[1]]
[1]
Editor's Note: Ordinance No. 4-2019 repealed and replaced
former Art. VI, Requirements for Developments that Increase the Township's
Growth Share Obligation for Affordable Housing, adopted 12-6-2005
by Ord. No. 3924 and amended 12-9-2008 by Ord. No. 4104, 2-3-2009
by Ord. No. 4117 and 2-7-2017 by Ord. No. 3-2017.
(a)
Affordable housing obligation.
(1)
This article sets forth regulations regarding the low- and moderate-income
housing units in the Township of Teaneck consistent with the provisions
known as the "Substantive Rules of the New Jersey Council on Affordable
Housing," the Uniform Housing Affordability Controls (UHAC), N.J.A.C.
5:80-26.1 et seq., and the Township's constitutional obligation to
provide a fair share of affordable housing for low- and moderate-income
households. In addition, this article applies requirements for very-low-income
housing established in P.L. 2008, c. 46 (the "Roberts Bill"), N.J.S.A.
52:27D-329.1.
(2)
This article is intended to ensure that low- and moderate-income
units ("affordable units") are created with controls on affordability
over time and that low- and moderate-income households shall occupy
these units. This article shall apply except where inconsistent with
applicable law.
(3)
The Teaneck Township 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. The Fair Share Plan has been endorsed by the governing
body. The Fair Share Plan describes the ways Teaneck Township shall
address its fair share for low- and moderate-income housing as determined
by the Superior Court and documented in the Housing Element.
(4)
This article implements and incorporates the Fair Share Plan
and addresses the requirements of the Act and regulations thereunder,
as may be amended and supplemented.
(5)
The Township shall file monitoring reports with the Superior
Court and place the reports on its municipal website. Any plan evaluation
report of the Housing Element and Fair Share Plan and monitoring prepared
by the Special Master shall be available to the public at the Teaneck
Township Municipal Building, 818 Teaneck Road, Teaneck, New Jersey.
(b)
ACCESSORY APARTMENT
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
(1)
(2)
(3)
AGENCY
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
COMMISSIONER
CONSTRUCTION
COUNCIL
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
EQUALIZED ASSESSED VALUE
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN INCOME
MIXED-USE DEVELOPMENT
(1)
(2)
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
NONEXEMPT SALE
NONRESIDENTIAL DEVELOPMENT
(1)
(2)
(3)
NONRESIDENTIAL DEVELOPMENT FEE
RANDOM SELECTION PROCESS
RECREATIONAL FACILITIES AND COMMUNITY CENTER
REGIONAL ASSET LIMIT
REHABILITATION
RELATING TO THE PROVISION OF HOUSING
RENT
RESTRICTED UNIT
SPECIAL MASTER
SPENDING PLAN
TOWNSHIP
TREASURER
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
Definitions. The following terms when used in this article shall
have the meanings given in this subsection:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.1 et seq.
The entity responsible for the administration of affordable
units in accordance with this article and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household; in the case of an ownership unit, 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,
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.
A housing development all or a portion of which consists
of restricted units.
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act and/or
funded through an affordable housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where the unit is situated
are 62 years or older; or
At least 80% of the units are occupied by one person that is
55 years or older; or
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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternate living arrangements include, but are not limited
to, transitional facilities for the homeless; Class A, B, C, D, and
E boarding homes, as regulated by the New Jersey Department of Community
Affairs; residential health care facilities as regulated by the New
Jersey Department of Health; group homes for the developmentally disabled
and mentally ill as licensed and/or regulated by the New Jersey Department
of Human Services; and congregate living arrangements.
A facility licensed by the New Jersey Department of Health
to provide apartment-style housing and congregate dining and to ensure
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.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of,
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.).
The Commissioner of Community Affairs.
New construction and additions, but does not include alterations,
reconstruction, renovations, and repairs as those terms are defined
under the State Uniform Construction Code promulgated pursuant to
the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A.
52:27D-119 et seq.).
The Council on Affordable Housing, established pursuant to
P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.).
The State of New Jersey Department of Community Affairs.
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.
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.[1]
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.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5 and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
A development containing both affordable units and market-rate
units. 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.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
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.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by COAH or approved by the New Jersey Superior
Court.
Any development which includes both a nonresidential development
component and a residential development component, and shall include
developments for which:
There is a common developer for both the residential development
component and the nonresidential development component, provided that
for purposes of this definition, multiple persons and entities may
be considered a common developer if there is a contractual relationship
among them obligating each entity to develop at least a portion of
the residential or nonresidential development, or both, or otherwise
to contribute resources to the development; and
The residential and nonresidential developments are located
on the same lot or adjoining lots, including, but not limited to,
lots separated by a street, a river, or another geographical feature.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
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.
Any building or structure, or portion thereof, including, but
not limited to, any appurtenant improvements, which is designated
to a use group other than a residential use group according to the
State Uniform Construction Code promulgated to effectuate the State
Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119
et seq.), including any subsequent amendments or revisions thereto;
Hotels, motels, vacation time shares, and child-care facilities;
and
The entirety of all continuing care facilities within a continuing
care retirement community which is subject to the Continuing Care
Retirement Community Regulation and Financial Disclosure Act, P.L.
1986, c. 103 (N.J.S.A. 52:27D-330 et seq.).
The fee authorized to be imposed pursuant to Sections 32
through 38 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1 through 40:55D-8.7).
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).
Any indoor or outdoor buildings, spaces, structures, or improvements
intended for active or passive recreation, including, but not limited
to, ball fields, meeting halls, and classrooms, accommodating either
organized or informal activity, and "senior center" means any recreational
facility or community center with activities and services oriented
towards serving senior citizens.
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 approved regional income limits.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.1 et seq.
Shall be liberally construed to include the construction,
maintenance, or operation of housing, including, but not limited to,
the provision of services to such housing and the funding of any of
the above.
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.
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.
An expert appointed by a judge to make sure that judicial
orders are followed. A master's function is essentially investigative,
compiling evidence or documents to inform some future action by the
court.
A method of allocating funds collected and to be collected
pursuant to an approved municipal development fee ordinance or pursuant
to P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.1 et seq.), for the purpose
of meeting the housing needs of low- and moderate-income individuals.
The Township of Teaneck, Bergen County, New Jersey.
The Treasurer of the State of New Jersey.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
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.
(c)
Township-wide mandatory set-aside.
(1)
A multifamily or single-family development providing a minimum
of five new housing units created through any future development application,
municipal rezoning or zoning board action, use or density variance,
redevelopment plan, or rehabilitation plan is required to include
an affordable housing set-aside of 20% if the affordable units will
be for sale and 15% if the affordable units will be for rent. This
requirement does not give any developer the right to any such rezoning,
variance or other relief, or establish any obligation on the part
of Teaneck Township to grant such rezoning, variance or other relief.
No subdivision shall be permitted or approved for the purpose of avoiding
compliance with this requirement.
(2)
This requirement shall not apply to any sites or specific zones
otherwise identified in the Township's Settlement Agreement with Fair
Share Housing Center dated December 7, 2017, or in the Township's
Housing Element and Fair Share Plan, adopted by the Township Planning
Board and endorsed by the Township Council, for which density and
set-aside standards shall be governed by the specific standards set
forth therein.
(d)
New construction. The following general guidelines apply to all newly
constructed developments that contain low- and moderate-income housing
units, including any currently unanticipated future developments that
will provide low- and moderate-income housing units.
(1)
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units.
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%
|
(2)
Design. In inclusionary developments, to the extent possible,
low- and moderate-income units shall be integrated with the market
units.
(3)
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
(4)
Low/moderate split and bedroom distribution of affordable housing
units.
a.
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.
b.
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
c.
Within rental developments, of the total number of affordable
rental units, at least 13% shall be affordable to very-low-income
households.
d.
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
1.
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
2.
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
3.
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
4.
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
e.
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.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
(5)
Accessibility requirements.
a.
The first floor of all restricted 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.
b.
All restricted 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:
1.
An adaptable toilet and bathing facility on the first floor;
2.
An adaptable kitchen on the first floor;
3.
An interior accessible route of travel on the first floor;
4.
An interior accessible route of travel shall not be required
between stories within an individual unit;
5.
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
6.
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 the Township has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible.
[i]
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.
[ii]
To this end, the builder of restricted units shall
deposit funds within the Township's Affordable Housing Trust Fund
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[iii]
The funds deposited under Subsection (d)(5)b6[ii]
above shall be used by the Township for the sole purpose of making
the adaptable entrance of any 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.
[iv]
The developer of the restricted units shall submit
a design plan and cost estimate for the conversion from adaptable
to accessible entrances to the Construction Official of Teaneck Township.
[v]
Once the Construction Official has determined that
the design plan to convert the unit entrances from adaptable to accessible
meets 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 Teaneck Township's Affordable Housing Trust Fund
in care of the Municipal Treasurer who shall ensure that the funds
are deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
[vi]
Full compliance with the foregoing provisions
shall not be required where an entity can demonstrate that it is 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.
(6)
Maximum rents and sales prices.
a.
In establishing rents and sales prices of affordable housing
units, the administrative agent shall follow the procedures set forth
in UHAC and by the Superior Court, utilizing the regional income limits
established.
b.
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 low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
c.
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. At least 13% of all low-
and moderate-income rental units shall be affordable to households
earning no more than 30% of median income.
d.
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, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
e.
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
1.
A studio shall be affordable to a one-person household;
2.
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
3.
A two-bedroom unit shall be affordable to a three-person household;
4.
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
5.
A four-bedroom unit shall be affordable to a six-person household.
f.
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be used:
g.
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, does 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.
h.
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
household size 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.
i.
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. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price.
j.
The rent of low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the United States. 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.
k.
Tenant-paid utilities that are included in the utility allowance
shall be so stated in the lease and shall be consistent with the utility
allowance approved by DCA for its Section 8 program.
(e)
Condominium and homeowners' association fees. For any affordable
housing unit that is part of a condominium association and/or homeowners'
association, the master deed shall reflect that the association fee
assessed for each affordable housing unit shall be established at
100% of the market-rate fee.
(a)
Municipal Housing Liaison.
(1)
The position of Municipal Housing Liaison (MHL) for Teaneck
Township is established by this article. The MHL shall be appointed
by the Township Manager.
(2)
The MHL must be either a full-time or part-time employee of
Teaneck Township.
(3)
The Municipal Housing Liaison must meet the requirements for
qualifications, including initial and periodic training, as required
by state law or regulation.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Teaneck Township,
including the following responsibilities which may not be contracted
out to the administrative agent:
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 and affordability
controls;
c.
When applicable, supervising any contracting administrative
agent;
d.
Monitoring the status of all restricted units in Teaneck Township's
Fair Share Plan;
e.
Compiling, verifying and submitting annual reports as required
by the Superior Court;
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 Superior Court.
(b)
Administrative agent.
(1)
The Township shall designate by resolution of the Township Committee
one or more administrative agents to administer newly constructed
affordable units in accordance with state law or regulation and UHAC.
(2)
The administrative agent shall perform the duties and responsibilities
of an administrative agent as are set forth in UHAC, including those
set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof,
which includes:
a.
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by the Superior Court.
b.
Affirmative marketing and conducting an outreach process to
ensure affirmative marketing of affordable housing units in accordance
with the affirmative marketing plan of the Township and the provisions
of N.J.A.C. 5:80-26.15.
c.
Household certification:
1.
Soliciting, scheduling, conducting and following up on interviews
with interested households;
2.
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;
3.
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
4.
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.;
5.
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
6.
Employing the random selection process as provided in the affirmative
marketing plan of the Township when referring households for certification
to affordable units.
d.
Affordability controls:
1.
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;
2.
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;
3.
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;
4.
Communicating with lenders regarding foreclosure; and
5.
Ensuring the issuance of continuing certificates of occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
e.
Records retention.
f.
Resale and rerental:
1.
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
2.
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.
g.
Processing requests from unit owners:
1.
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;
2.
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
3.
Processing requests and making determinations on requests by
owners of restricted units for hardship waivers.
h.
Enforcement, though the ultimate responsibility for retaining
controls on the units rests with the municipality:
1.
Ensuring that all restricted units are identified as affordable
within the Tax Assessor's office and, upon notification to the administrative
agent of change in billing address, payment delinquency of two consecutive
billing cycles, transfer of title, or institution of a writ of foreclosure
on all affordable units, notifying all such owners that they must
either move back to their unit or sell it;
2.
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgment 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;
3.
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;
4.
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;
5.
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;
6.
Establishing a rent-to-equity program;
7.
Creating and publishing a written operating manual setting forth
procedures for administering such affordability controls; and
8.
Providing annual reports as required.
i.
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(c)
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including, but
not limited to, foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
(2)
After providing written notice of a violation to an owner, developer
or tenant of a low-or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
a.
The municipality may file a court action pursuant to N.J.S.A.
2A:58-11 alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
1.
A fine of not more than $500 or imprisonment for a period not
to exceed 90 days, or both. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense.
2.
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Teaneck Township Affordable Housing Trust
Fund of the gross amount of rent illegally collected.
3.
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation costs,
as determined by the court.
b.
The municipality may file a court action in the Superior Court
seeking a judgment which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
(3)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorneys' fees. The violating owner shall have the right
to possession terminated as well as the title conveyed pursuant to
the Sheriff's sale.
(4)
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event that
the proceeds from the Sheriff's sale are insufficient to reimburse
the municipality in full as aforesaid, the violating owner shall be
personally responsible for and to the extent of such deficiency, in
addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(5)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(6)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(7)
Failure of the low- and moderate-income unit to be either sold
at the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(8)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of the regulations governing
affordable housing units until such time as title is conveyed from
the owner.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(d)
The Township may contract with or authorize a consultant, authority,
government or any agency charged by the Township Council, which entity
shall have the responsibility of administering the affordable housing
program of the Township. If the Township 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.
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(e)
The cost for administering the affordable housing program for the Township of Teaneck, including affirmative marketing, household certification, affordability controls, resale and rentals, communicating with unit owners and enforcement, shall be the responsibility of developers or owners of affordable housing units in accordance with Appendix III, Fees and Charges for Certain Township Services, of Chapter 2 of this Code.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(a)
Adoption of an affirmative marketing plan.
(1)
Teaneck Township hereby adopts the within affirmative marketing
plan in compliance with N.J.A.C. 5:80-26.15, as may be amended and
supplemented.
(2)
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 also 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 all marketing
activities toward COAH Housing Region 1 and covers the period of deed
restriction.
(b)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 1
comprised of Bergen, Hudson, Passaic, and Sussex Counties.
(c)
The administrative agent designated by Teaneck Township shall ensure
the affirmative marketing of all affordable units consistent with
the affirmative marketing plan for the municipality.
(1)
All newspaper articles, announcements and requests for applications
for low- and moderate-income units will appear in the following newspapers/publications:
The Record, the Suburbanite, the Jewish Standard, the Teaneck Patch,
the Jewish Link and the Star Ledger.
(2)
The primary marketing will take the form of at least one press
release sent to the above publications and a paid display advertisement
in each of the above newspapers. Additional advertising and publicity
will be on an as-needed basis.
(3)
The advertisement will include:
a.
The street address and location of units.
b.
Directions to the housing units.
c.
The size, as measured in the number of bedrooms, of the housing
units.
d.
A range of prices/rents for the housing units.
e.
The maximum income permitted to qualify for the housing units.
f.
The location of applications for the housing units.
g.
The business hours when interested households may obtain an
application for a housing unit.
h.
The name of the rental manager and/or sales agent for the housing
units.
(4)
All newspaper articles, announcements and requests for applications
for low- and moderate-income housing will appear in publications circulated
within the housing region that are likely to be read by low- and moderate-income
households, such as neighborhood-oriented weekly newspapers, religious
publications and organizational newsletters.
(5)
Regional radio and/or cable television station(s) will also
be used.
(6)
Applications, brochure(s), sign(s) and/or poster(s) used as
part of the affirmative marketing program will be provided to specific
employment centers within the region and to the municipal clerks of
all municipalities in the region.
(7)
Applications for low- and moderate-income housing shall be available
in several convenient locations within the Township of Teaneck, including,
at a minimum, the Township Municipal Building, the Teaneck Public
Library, and the developer's sales/rental office. The following is
a listing of community contact persons and/or organizations in Teaneck
that will administer the program and will aid in the affirmative marketing
program with particular emphasis on contacts that will reach out to
groups that are least likely to apply for housing within the region:
Zoning Officer, County Housing Office and houses of worship.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(8)
Quarterly flyers and applications will be sent to each of the
following agencies for publication in their journals and for circulation
among their members: Board of Realtors in Bergen, Hudson, Passaic
and Sussex Counties.
(9)
Applications will be mailed to prospective applicants upon request.
Additionally, quarterly informational circulars and applications will
be sent to the chief administrative employees of each of the following
agencies in the counties in the Township of Teaneck's region: Welfare
or Social Service Board, Rental Assistance Office (local office of
DCA), Office on Aging, libraries and housing agency or authority.
(10)
The affirmative marketing program will meet the following requirements:
a.
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
b.
A random selection method will be used to select occupants of
low- and moderate-income housing.
c.
Low- and moderate-income households who live or work in the
housing region in which the Township of Teaneck is located shall be
given preference for sales and rental units constructed within the
Township of Teaneck. Applicants living outside the housing region
will have an equal opportunity for units after regional applicants
have been initially serviced.
d.
Low- and moderate-income households residing or working within
the Township of Teaneck shall be provided a preference for low- and
moderate-income units created within the Township of Teaneck that
respond to Teaneck's rehabilitation component.
e.
All developers of low- and moderate-income housing units will
be required to assist in the marketing of the affordable units in
their respective developments.
f.
The cost of advertising and administrating low- and moderate-income
units shall be the responsibility of the developer and/or owner of
low- and moderate-income housing units within the Township of Teaneck.
g.
The marketing program will commence at least 120 days before
the issuance of either temporary or permanent certificates of occupancy.
The marketing program will continue until all low- and moderate-income
housing units are initially occupied and for as long as affordable
units are deed restricted and occupancy or reoccupancy of units continues
to be necessary.
h.
Households that apply for low- and moderate-income housing shall
be screened for preliminary income eligibility by comparing their
total income to the low- and moderate-income limits pursuant to state
law and regulations. Applicants shall be notified as to their eligibility
status.
i.
Having screened applicants for preliminary income eligibility,
the Township may analyze the income and household sizes of applicants
to determine which applicants have the assets and/or income necessary
to purchase or rent each available low- or moderate-income unit.
j.
The Township shall conduct a process and interview each applicant
to verify the applicant's income and household size, determine the
applicant's asset availability, and review the applicant's credit
history. Applicants shall be required to submit income verification
for each household member 18 years or older. This process shall be
utilized in establishing the final certified applicant group.
k.
The process described in Subsection (c)(10)h through j above
may begin no sooner than one month after the advertising program begins.
Households shall be selected to proceed through the process described
in Subsection (c)(10)h through j above through a method of random
selection. Households shall be certified for low- and moderate-income
units. The process described in Subsection (c)(10)h through j shall
be continued until all the low- and moderate-income units are occupied.
l.
Continuing marketing activities shall be undertaken after the
completion of initial occupancy of sales and rental units in order
to fill vacancies resulting from normal turnover which shall include:
1.
Ensuring a sufficient supply of income-eligible applicants by
continuing to implement the marketing plan throughout the housing
region. At a minimum, the Township shall maintain a current pool of
at least five income-eligible applicants for each low- and moderate-income
unit.
2.
Contacting each income-eligible applicant annually to request
updated information regarding income and family size.
3.
As units become available, the municipal entity shall select
eligible applicants for the units until the units are occupied by
low- and moderate-income households.
(d)
In implementing the affirmative marketing plan, the administrative
agent 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 costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by Teaneck Township.
The following general guidelines 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.
(a)
Occupancy standards. In referring certified households to specific
restricted units, to the extent feasible, and without causing an undue
delay in occupying the unit, the administrative agent shall strive
to:
(b)
Selection of occupants of affordable housing units.
(c)
Control periods for restricted ownership units and enforcement mechanisms.
(1)
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 article until Teaneck Township elects to release the unit
from such requirements; however, and prior to such an election, 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, for at
least 30 years.
(2)
The affordability control period for a restricted ownership
unit shall commence on the date the initial certified household takes
title to the unit.
(3)
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 administrative agent 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.
(4)
At the time of the first sale of the unit, the purchaser shall
execute and deliver to the administrative agent 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 requirements of this article, 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.
(5)
The affordability controls set forth in this article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
(6)
A restricted ownership unit shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the unit meets all Code standards upon the first
transfer of title that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
(7)
Deeds of all real property that include restricted ownership
units shall contain deed restriction language. The deed restriction
shall have priority over all mortgages on the property, and the deed
restriction shall be filed by the developer or seller with the records
office of the County of Bergen. A copy of the filed document shall
be provided to the administrative agent within 30 days of the receipt
of a certificate of occupancy. The deed restriction shall be subject
to the approval of the administrative agent and shall be substantially
in the form set forth in Schedule B,[1] annexed hereto and made part of this article.
[1]
Editor's Note: Schedule B is included as an attachment to this chapter.
(d)
Price restrictions for restricted ownership units, homeowner association
fees and resale prices. 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:
(1)
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(2)
The administrative agent shall approve all resale prices, in
writing and in advance of the resale, to ensure compliance with the
foregoing standards.
(3)
The method used to determine the condominium association fee
amounts and special assessments shall be indistinguishable between
the low- and moderate-income unit owners and the market unit owners.
(4)
The owners of restricted ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
(e)
Buyer income eligibility.
(1)
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.
(2)
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 certified monthly income.
(f)
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine, in writing,
that the proposed indebtedness complies with the provisions of this
section.
(2)
With the exception of original purchase money mortgages, during
a control period 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 that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
(g)
Control periods for restricted rental units.
(1)
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 article until Teaneck Township elects to release the unit
from such requirements pursuant to action taken in compliance with
N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior
to such an election, 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,
for at least 30 years.
(2)
Deeds of all real property that include restricted rental units
shall contain deed restriction language. The deed restriction shall
have priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Bergen. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy. The deed restriction shall be subject to the approval
of the administrative agent and shall be substantially in the form
set forth in Schedule A,[2] annexed hereto and made part of this article.
[2]
Editor's Note: Schedule A is included as an attachment to this chapter.
(3)
A restricted rental unit shall remain subject to the affordability
controls of this article, despite the occurrence of any of the following
events:
(h)
Price restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental
units, except for units in an assisted living residence, 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 administrative agent.
(2)
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 administrative agent.
(3)
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 administrative agent to be applied
to the costs of administering the controls applicable to the unit
as set forth in this article.
(i)
Tenant income eligibility.
(1)
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:
a.
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of median
income.
b.
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
c.
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
(2)
The administrative agent shall certify a household as eligible
for a restricted rental unit when the household is a very-low-income,
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:
a.
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;
b.
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;
c.
The household is currently in substandard or overcrowded living
conditions;
d.
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
e.
The household documents proposed 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.
(3)
The applicant shall file documentation sufficient to establish
the existence of the circumstances in Subsection (i)(2)a through e
above with the administrative agent, who shall counsel the household
on budgeting.
(a)
Purpose. In Holmdel Builder's Association v. Holmdel Township, 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 COAH developing
rules as amended from time to time and/or in accordance with the enacted
legislation and/or in accordance with directives from the courts.
The purpose of this section is to establish standards for the collection,
maintenance and expenditure of development fees pursuant to the above.
Fees collected pursuant to this section shall be used for the sole
purpose of providing low- and moderate-income housing.
(b)
Development fees.
(1)
Residential development fees.
a.
Within all zone districts, unless invalidated by state statute
or court order, developers of residential housing, except for developers
of the types of development specifically exempted below, shall pay
a fee of 1 1/2% of the equalized assessed value for residential
development, provided that no increased density is permitted.
b.
When an increase in residential density has been permitted pursuant
to N.J.S.A. 40:55D-70d (known as a "d" variance) or pursuant to zoning
amendment or pursuant to the adoption of a redevelopment plan pursuant
to the New Jersey Local Redevelopment and Housing Law (N.J.S.A. 40A:12A-1
et seq.), developers shall be required to pay a residential development
fee of a maximum of 6% of the equalized assessed value for each additional
unit that may be realized.
c.
Affordable housing developments and residential developments
where the developer is providing for the construction of affordable
units elsewhere in the municipality shall be exempt from residential
development fees.
d.
Residential developments that have received preliminary or final
site plan approval prior to the adoption of a municipal residential
development fee shall be exempt from residential development fees,
unless the developer seeks a substantial change in the approval or
the developer has accepted responsibility to pay a residential development
fee. Where a site plan approval does not apply, a zoning and/or building
permit shall be synonymous with preliminary or final site plan approval
for this purpose. A development fee shall be based on the percentage
that applies on the date that a building permit is issued, regardless
of the time of collection of the fee.
e.
Owner-occupied residential structures demolished and replaced
as a result of a fire, flood, or natural disaster shall be exempt
from paying a residential development fee.
f.
Residential development fees shall be imposed and collected
when an existing structure undergoes a change to a more intense use.
The development fee shall be calculated on the increase in the equalized
assessed value of the improved structure.
g.
A developer of an addition to an existing single-family residential
unit which constitutes less than a 50% increase in the gross floor
area of the unit shall be exempt from the development fee.
(2)
Nonresidential development fees.
a.
Within all zoning districts, unless invalidated by state statute
or court order, nonresidential developers, except for developers of
the types of development specifically exempted, shall pay a nonresidential
development fee equal to 2.5% of the equalized assessed value of the
land and improvements for all new nonresidential construction.
b.
Nonresidential developers, except for developers of the types
of development specifically exempted, shall also pay a nonresidential
development fee equal to 2.5% of the increase in equalized assessed
value resulting from any additions to existing structures to be used
for nonresidential purposes.
c.
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. Whenever nonresidential development
is situated on real property that has been previously developed with
a building, structure, or other improvement, the nonresidential development
fee shall be equal to 2.5% of the equalized assessed value of the
land and improvements on the property where the nonresidential development
is situated at the time the final certificate of occupancy is issued,
less the equalized assessed value of the land and improvements on
the property where the nonresidential development is situated, as
determined by the Tax Assessor of the municipality at the time the
developer or owner, including any previous owners, first sought approval
for a construction permit, including, but not limited to, demolition
permits, pursuant to the State Uniform Construction Code, or approval
under the Municipal Land Use Law, P.L. 1975, c. 291 (N.J.S.A. 40:55D-1
et seq.). If the calculation required under this subsection results
in a negative number, the nonresidential development fee shall be
zero.
d.
The nonresidential portion of a mixed-use inclusionary or market-rate
development shall be subject to the 2.5% development fee, unless otherwise
exempted below.
e.
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within existing footprint,
reconstruction, renovations and repairs.
f.
All nonresidential construction of buildings or structures on
property used by churches, synagogues, mosques, and other houses of
worship, and property used for educational purposes, which is tax-exempt
pursuant to N.J.S.A. 54:4-3.6 shall be exempt from the imposition
of a nonresidential development fee pursuant to this section, provided
that the property continues to maintain its tax-exempt status under
that statute for a period of at least three years from the date of
issuance of the certificate of occupancy.
1.
In addition, the following shall be exempt from the imposition
of a nonresidential development fee:
[i]
Parking lots and parking structures, regardless
of whether the parking lot or parking structure is constructed in
conjunction with a nonresidential development, such as an office building,
or whether the parking lot is developed as an independent nonresidential
development;
[ii]
Any nonresidential development which is an amenity
to be made available to the public, including, but not limited to,
recreational facilities, community centers, and senior centers, which
is developed in conjunction with or funded by a nonresidential developer;
[iii]
Nonresidential construction resulting from a
relocation of or an on-site improvement to a nonprofit hospital or
a nursing home facility;
[iv]
Projects that are located within a specifically
delineated urban transit hub, as defined pursuant to Section 2 of
P.L. 2007, c. 346 (N.J.S.A. 34:1B-208);
[v]
Projects that are located within an eligible municipality,
as defined under Section 2 of P.L. 2007, c. 346 (N.J.S.A. 34:1B-208),
when a majority of the project is located within a one-half-mile radius
of the midpoint of a platform area for a light rail system; and
[vi]
Projects determined by the New Jersey Transit
Corporation to be consistent with a transit village plan developed
by a transit village designated by the Department of Transportation.
2.
Any exemption claimed by a developer shall be substantiated
by that developer.
g.
A developer of a nonresidential development exempted from the
nonresidential development fee shall be subject to it at such time
the basis for the exemption no longer applies and shall make the payment
of the nonresidential development fee, in that event, within three
years after that event or after the issuance of the final certificate
of occupancy of the nonresidential development, whichever is later.
h.
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Township of Teaneck as a lien against the
real property of the owner.
(3)
Collection procedures.
a.
Upon the granting of a preliminary, final or other applicable
approval for a development, the applicable approving authority shall
direct its staff to notify the Construction Official responsible for
the issuance of a building permit.
b.
For nonresidential developments only, the developer shall also
be provided with a copy of Form N-RDF, State of New Jersey Nonresidential
Development Certification/Exemption, to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
c.
The Construction Official responsible for the issuance of a
building permit shall notify the local Tax Assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
d.
Within 90 days of receipt of that notice, the Municipal Tax
Assessor, based on the plans filed, shall provide an estimate of the
equalized assessed value of the development.
e.
The Construction Official responsible for the issuance of a
final certificate of occupancy notifies the local Assessor of any
and all requests for the scheduling of a final inspection on property
which is subject to a development fee.
f.
Within 10 business days of a request for the scheduling of a
final inspection, the Municipal Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
of the development, calculate the development fee and thereafter notify
the developer of the amount of the fee.
g.
Should the Township of Teaneck fail to determine or notify the
developer of the amount of the development fee within 10 business
days of the request for final inspection, the developer may estimate
the amount due and pay that estimated amount consistent with the dispute
process set forth in Subsection b of Section 37 of P.L. 2008, c. 46
(N.J.S.A. 40:55D-8.6). Upon tender of the estimated nonresidential
development fee, provided the developer is in full compliance with
all other applicable laws, the municipality shall issue a final certificate
of occupancy for the subject property.
h.
A developer of a mixed-use development shall be required to
pay the statewide nonresidential development fee relating to the nonresidential
development component of a mixed-use development subject to the provisions
of P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.1 et seq.).
i.
Nonresidential construction which is connected with the relocation
of the facilities of a for-profit hospital shall be subject to the
fee authorized to be imposed under this section to the extent of the
increase in equalized assessed valuation in accordance with regulations
to be promulgated by the Director of the Division of Taxation, Department
of the Treasury.
j.
The payment of nonresidential development fees required pursuant
to Sections 32 through 38 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1
through 40:55D-8.7), shall be made prior to the issuance of a certificate
of occupancy for such development. A final certificate of occupancy
shall not be issued for any nonresidential development until such
time as the fee imposed pursuant to this section has been paid by
the developer. A nonresidential developer may deposit with the appropriate
entity the development fees as calculated by the municipality under
protest, and the local code enforcement official shall thereafter
issue the certificate of occupancy provided that the construction
is otherwise eligible for a certificate of occupancy.
(4)
Appeal of development fees.
a.
A developer may challenge residential development fees imposed
by filing a challenge with the County Board of Taxation. Pending a
review and determination by the Board, collected fees shall be placed
in an interest-bearing escrow account by the Township of Teaneck.
Appeals from a determination of the Board may be made to the Tax Court
in accordance with the provisions of the State Uniform Tax Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
b.
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by the Township of
Teaneck. Appeals from a determination of the Director may be made
to the Tax Court in accordance with the provisions of the State Uniform
Tax Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after
the date of such determination. Interest earned on amounts escrowed
shall be credited to the prevailing party.
(5)
Retention of fees. Any fees collected prior to the adoption
or amendment of this section shall be retained by the Township of
Teaneck.
(c)
Housing trust fund.
(1)
There is hereby created a separate interest-bearing housing
trust fund to be maintained by the Township's Chief Financial Officer
for the purpose of depositing development fees collected from residential
and nonresidential developers and proceeds from the sale of units
with extinguished controls.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(2)
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
a.
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
b.
Rental income from municipally operated units;
c.
Repayments from affordable housing program loans;
d.
Recapture funds;
e.
Proceeds from the sale of affordable units; and
f.
Any other funds collected in connection with the Township of
Teaneck's affordable housing program.
(3)
Use of funds.
a.
Money deposited in a Housing Trust Fund may be used for any
activity approved for addressing the Township of Teaneck's low- and
moderate-income housing obligation in accordance with the Teaneck
Housing Element and Fair Share Plan, spending plan or any directives
from the courts. Such activities may include, but are not necessarily
limited to, housing rehabilitation; new construction; the purchase
of land for low- and moderate-income housing; preservation or purchase
of housing for the purpose of maintaining or implementing affordability
controls, including the extension of controls; accessory apartment,
market to affordable, or regional housing partnership programs; conversion
of existing nonresidential buildings to create new affordable units;
extensions and/or improvements of roads and infrastructure to low-
and moderate-income housing sites; assistance designed to render units
to be more affordable to low- and moderate-income households; and
administrative costs necessary to implement the Township of Teaneck's
Housing Element. The expenditure of all money shall conform to a spending
plan approved by the courts.
b.
At least 30% of all development fees collected and interest
earned shall be used to provide affordability assistance to low- and
moderate-income households in affordable units included in the Municipal
Fair Share Plan. One-third of the affordability assistance portion
of development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of median income
by region.
1.
Affordability assistance programs may include downpayment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and special
assessments, and assistance with emergency repairs.
2.
Affordability assistance to households earning 30% or less of
median income may include buying down the cost of low- or moderate-income
units in the Municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income.
3.
Payments in lieu of constructing affordable units on site and
funds from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
(d)
The Township of Teaneck may contract with a private or public entity
to administer any part of its Housing Element and Fair Share Plan,
including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:80-26.1 et seq.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(e)
No more than 20% of all revenues collected from development fees
may be expended on administration, including, but not limited to,
salaries and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, a Housing Element
and Fair Share Plan, and/or an affirmative marketing program. In the
case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with the courts' monitoring requirements. Legal or other
fees related to litigation opposing affordable housing sites or objecting
to the Council's regulations and/or action are not eligible uses of
the Affordable Housing Trust Fund.
(f)
Funds shall not be expended to reimburse the Township of Teaneck
for housing activities carried out prior to the establishment of the
Affordable Housing Trust Fund.
(g)
Monitoring. The Township of Teaneck shall complete and return to
the courts all monitoring forms included in monitoring requirements
related to the collection of development fees from residential and
nonresidential developers, payments in lieu of constructing affordable
units on site, funds from the sale of units with extinguished controls,
barrier free escrow funds, rental income, repayments from affordable
housing program loans, and any other funds collected in connection
with the Township of Teaneck's housing program, as well as to the
expenditure of revenues and implementation of the plan certified by
the courts. All monitoring reports shall be completed on forms designed
by the courts.
(h)
This section is intended to be interpreted and applied consistent
with the Statewide Non-residential Development Fee Act (N.J.S.A. 40:55D-8.1
et seq.). In the event of any inconsistency, this section shall be
read so as to comply with the Act.