[Adopted by Ord. No. 1997-15 (Secs. 11A-1 through 11A-9 of the 1987 Revised General
Ordinances); amended in its entirety 4-24-2019 by Ord. No. 2019-18]
A.Â
This article is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
and that low- and moderate-income households shall occupy these units.
This article shall apply except where inconsistent with applicable
law.
B.Â
The Borough of Red Bank 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 adopted by the Planning
Board and endorsed by the governing body. The Fair Share Plan describes
how Red Bank Borough shall address its fair share for low- and moderate-income
housing as documented in the Housing Element and outlined in the terms
of the settlement agreement between the Borough and Fair Share Housing
Center (FSHC).
C.Â
This article implements the Borough's Fair Share Plan, addresses
the requirements of the Court and the terms of the settlement agreement,
and also implements a Borough-wide requirement that all new multifamily
residential development of five or more units shall have a mandatory
affordable housing set-aside for low- and moderate-income units, subject
to certain enumerated conditions.
D.Â
The Borough of Red Bank shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Court-approved Housing Element and Fair Share Plan:
(1)Â
Beginning on the one-year anniversary of the order granting compliance
and repose, and on every anniversary of that date through 2025, the
Borough agrees to provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs,
Council on Affordable Housing, or Local Government Services, or other
entity designated by the State of New Jersey, with a copy provided
to Fair Share Housing Center (FSHC) and posted on the municipal website,
using forms developed for this purpose by the New Jersey Department
of Community Affairs (NJDCA), Council on Affordable Housing (COAH),
or Local Government Services (NJLGS). The reporting shall include
an accounting of all Affordable Housing Trust Fund activity, including
the source and amount of funds collected and the amount and purpose
for which any funds have been expended.
(2)Â
Beginning on the one-year anniversary of the order granting compliance
and repose, and on every anniversary of that date through 2025, the
Borough agrees to provide annual reporting of the status of all affordable
housing activity within the municipality through posting on the municipal
website with a copy of such posting provided to Fair Share Housing
Center, using forms previously developed for this purpose by COAH
or any other forms endorsed by the Special Master and FSHC.
(3)Â
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Borough will post on its municipal website, with a copy provided to
FSHC, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether any mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the municipality, with
a copy to FSHC, regarding whether any sites no longer present a realistic
opportunity and should be replaced and whether any mechanisms to meet
unmet need should be revised or supplemented. Any interested party
may by motion request a hearing before the Court regarding these issues.
(4)Â
By March 1, 2020, and every third year thereafter, as required by
N.J.S.A. 52:27D-329.1, the Borough will post on its municipal website,
with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
The following terms, when used in this article, shall have the
meanings given in this section:
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.
The entity responsible for the administration of affordable
units in accordance with this article, N.J.A.C. 5:96, N.J.A.C. 5:97
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 as defined in N.J.A.C. 5:97-9; in the case of an ownership
unit, that the sales price for the unit conforms to the standards
set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented,
and, in the case of a rental unit, that the rent for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development, all or a portion of which consists
of restricted units.
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 structure that provides for-sale or rental dwelling units
for low- and moderate-income households within a residential use,
structure, supportive or special needs dwelling, or residential component
of a mixed-use development in accordance with the requirements of
the Borough of Red Bank's affordable housing ordinances and Housing
Element and Fair Share Plan.
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, credited
pursuant to N.J.A.C. 5:97-4, 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: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) 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 facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act of 1985.
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 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.
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.
Money paid for an individual, person, partnership, association,
company or corporation for the improvement of a property as permitted
in COAH rules and regulations pursuant to N.J.A.C. 5:93-8, Development
Fees.
The assessed value of a property divided by the current state
equalization ratio for the Borough, 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).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A development containing both affordable units and market-rate
units. Inclusionary development that has five or more units must have
a minimum twenty-percent set-aside of affordable units if it is for
sale and a minimum fifteen-percent set-aside for rentals. 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 determination issued by the Superior Court approving the
Borough's affordable housing plan to satisfy its fair share obligation.
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 the Department.
A structure or building that encompasses two or more different
land uses, which shall be a retail or commercial component and a residential
component, whereby any commercial use must be on the ground floor
of said building or structure and the upper levels of the structure
shall be the residential component and shall provide low- and moderate-income
units, for-sale or rental, in accordance with the requirements of
the Borough of Red Bank's affordable housing ordinances and Housing
Element and Fair Share Plan.
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.
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).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by the Department's adopted regional income limits published
annually by the Department.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
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.
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 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.
The Borough of Red Bank will use the following mechanisms to
satisfy its affordable housing obligations:
A.Â
Percentage of mandatory set-asides for all future residential developments.
(1)Â
If the Borough permits the construction of multifamily or single-family
attached residential development that is "approvable" and "developable,"
as defined at N.J.A.C. 5:93-1.3, at a gross residential density of
six units to the acre or more, and which consists of 11 or more new
residential units, the Borough shall require that an appropriate percentage
of the residential units be set aside for low- and moderate-income
households.
[Amended 9-23-2020 by Ord. No. 2020-18]
(2)Â
This requirement shall apply beginning with the effective date of
this article to any multifamily or single-family attached residential
development, including the residential portion of a mixed-use development,
which consists of 11 or more new residential units, whether permitted
by a zoning amendment, a variance granted by the Borough's Planning
or Zoning Board, or adoption of a redevelopment plan or amended redevelopment
plan in areas in need of redevelopment or rehabilitation.
[Amended 9-23-2020 by Ord. No. 2020-18]
(3)Â
An affordable set-aside shall be required in accordance with the
following:
|
Total Number of Units
|
Minimum Percentage of Affordable Units
|
|---|---|
|
10 and under
|
None
|
|
11 to 25
|
10%
|
|
26 to 150
|
15%
|
|
151 to 215
|
17.5%
|
|
216 and over
|
20%
|
(4)Â
Off-site affordable units and payment in lieu.
(a)Â
Developers of 10 units and under will be required to pay the
Borough's development fee. Developers of 11 units and above will be
required to provide at least 70% of the units required on site and
will have the option to satisfy the remaining obligation with either:
[1]Â
Off-site affordable units; or
[2]Â
A payment in lieu of such units in accordance with N.J.A.C.
5:93-8.10(c) and N.J.A.C. 5:97-6.4(c)3, provided that the Borough
will only accept a payment in lieu if at the time of application the
applicant can demonstrate that the payment in lieu will create an
equivalent number of new construction or gut rehabilitation affordable
units to those that would have been provided on site, which off-site
or payment in lieu units, when combined with the on-site units, shall
be consistent with the bedroom distribution, very-low-/low-/moderate-income
split and all other terms of the settlement agreement.
(5)Â
This requirement does not create any entitlement for a property owner
or applicant for a zoning amendment, variance, or adoption of a redevelopment
plan or amended redevelopment plan in areas in need of redevelopment
or rehabilitation, or for approval of any particular proposed project.
(6)Â
This requirement does not apply to any sites or specific zones otherwise
identified in the settlement agreement or Fair Share Plan, for which
density and set-aside standards shall be governed by the specific
standards set forth therein, though all other provisions of this article
shall be applicable to those sites unless otherwise specified.
(7)Â
A set-aside shall not apply to developments containing 10 or fewer
dwelling units.
(8)Â
All subdivision and site plan approvals of qualifying residential
developments shall be conditioned upon compliance with the provisions
of this section. Where a developer demolishes existing dwelling units
and builds new dwelling units on the same site, the provisions of
this section shall apply only if the net number of dwelling units
is 11 or more.
[Amended 9-23-2020 by Ord. No. 2020-18]
B.Â
Rehabilitation program.
(1)Â
The Borough of Red Bank and Fair Share Housing Center have agreed
upon a rehabilitation program of 129 units. The Borough will create
and administer both a rental and owner-occupied rehabilitation program
to satisfy its present need obligation of 129 units. A spending plan
will be prepared and adopted by the Borough that shall outline the
schedule and expenditures through 2025 to realize 129 rehabilitated
units. The spending plan will be funded through the Borough's existing
Developer Fee Ordinance and payments in lieu where appropriate. The
administrative agent shall be responsible for submitting the rehabilitation
program manuals and documenting each rehabilitation application and
documents thoroughly. Any renovation of deficient housing units to
be occupied by low- and moderate-income households will comply with
the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
(2)Â
All rehabilitated rental or owner-occupied units shall remain affordable
to low- and moderate-income households for a period of 10 years (the
control period). For owner-occupied units, the control period will
be enforced with a lien and for renter-occupied units the control
period will be enforced with a deed restriction.
(3)Â
The Borough of Red Bank shall dedicate an average of $10,000 for
each unit to be rehabilitated through this program, reflecting the
minimum hard cost of rehabilitation for each unit.
(4)Â
The Borough of Red Bank shall designate, subject to the approval
of the Court, one administrative agent to administer the rehabilitation
program in accordance with N.J.A.C. 5:91 and N.J.A.C. 5:93. The administrative
agent shall provide a rehabilitation manual for both rental and owner-occupant
rehabilitations. These manuals, when created, will be reviewed by
the governing body and adopted by resolution subject to approval of
the Court. Both rehabilitation manuals shall be available for public
inspection in the office of the Municipal Clerk and in the office
of the administrative agent.
(5)Â
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:93-9
and uniform housing affordability controls (UHAC), but shall be administered
in accordance with the following:
(a)Â
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is rerented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:93-9 and UHAC.
(b)Â
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:93-9 and UHAC.
(c)Â
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:93-9.
(d)Â
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:93-9 and UHAC, except that households
in owner-occupied units shall be exempt from the regional asset limit.
C.Â
First-time homebuyers program. The Borough will develop a first-time
homebuyer program to provide for an opportunity for homeownership
in the Borough to at least 50 low- and moderate-income households
by 2025. The program will be funded with development fees collected
by the Borough, and the properties involved will be deed restricted
for a thirty-year period (control period) to remain affordable to
low- or moderate-income households consistent with the Uniform Housing
Affordability Controls (UHAC) at N.J.A.C. 5:80-16.1 et seq. The maximum
loan amount to be dedicated to each unit shall be $10,000.
D.Â
Alternative living arrangements.
(1)Â
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
(2)Â
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
(3)Â
The service provider for the alternative living arrangement shall
act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
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.
A.Â
Affordable housing plan. The applicant for approval of an eleven-unit
or more residential or nonresidential development shall present the
planned method of affordable housing compliance based upon the full
build-out of the property for residential and/or nonresidential development.
The applicant shall demonstrate compliance by completing an affordable
housing plan form which shall be submitted at the time of application
filing.
B.Â
Phasing. Inclusionary developments shall be subject to the following
schedule:
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
Maximum Percentage of Market-Rate Units Completed
|
|---|---|
|
0
|
25
|
|
10
|
25 + 1 unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
90
|
C.Â
Fractional units. If the required set-aside of the total number of
units in a development results in a fraction or decimal, the developer
shall be required to round up and provide an additional affordable
unit on site if the fraction is 0.5 or greater. If the fraction is
less than 0.5, the developer shall be required to provide the affordable
housing development fee for the fractional units.
|
Examples:
|
|
A fifteen-unit development requiring an affordable housing set-aside
of 1.5 units is proposed. The development is required to provide two
affordable units.
|
|
A twelve-unit development requiring an affordable housing set-aside
of 1.2 units is proposed. The developer is required to provide one
affordable unit, and pay the affordable housing development fee for
two units.
|
D.Â
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
E.Â
Off-site construction. The standards for constructing affordable
units off site shall be in accordance with the Borough's recommendations,
provided that at least the same number of affordable units are provided,
at least half of the affordable units are available to families, and
not more than 25% are age-restricted, and the affordable units provided
are otherwise consistent with the terms of the settlement agreement.
F.Â
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
G.Â
Low/moderate split and bedroom distribution of affordable housing
units.
(1)Â
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.
(2)Â
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units, including
that 13% shall be very-low-income within each bedroom distribution.
If there is only one affordable unit it must be a low-income unit.
(3)Â
Thirteen percent of all affordable units approved or constructed
since July 17, 2008, in the Borough shall be designated as very-low-income
households at 30% of the median income, with at least 50% of all very-low-income
units being available to families. If an inclusionary development
proposes less than 10 total units, a payment in lieu of the cost of
subsidizing a very-low-income unit shall be deposited into the Borough's
Affordable Housing Trust Fund based on the difference in cost between
providing a very-low-income unit and the region's affordability average.
Very-low-income units shall be considered low-income units for the
purposes of evaluating compliance with the required low-/moderate-income
unit splits, bedroom distribution, and phasing requirements of this
article.
(4)Â
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)Â
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)Â
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)Â
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)Â
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(5)Â
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.
H.Â
Accessibility requirements.
(1)Â
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 and the standards in § 205-4H(2)(a) through (f).
(2)Â
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:
(a)Â
An adaptable toilet and bathing facility on the first floor;
(b)Â
An adaptable kitchen on the first floor;
(c)Â
An interior accessible route of travel on the first floor;
(d)Â
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;
(e)Â
If not all of the foregoing requirements in § 205-4H(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of § 205-4H(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)Â
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-31 la et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Borough of Red Bank has collected funds
from the developer sufficient to make 10% of the adaptable entrances
in the development accessible.
(3)Â
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.
(4)Â
To this end, the builder of restricted units shall deposit funds
within the Borough's Affordable Housing Trust Fund sufficient to install
accessible entrances in 10% of the affordable units that have been
constructed with adaptable entrances.
(5)Â
The funds deposited under § 205-4H(4) above shall be used by the Borough of Red Bank 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.
(6)Â
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 the Borough.
(7)Â
Once the Construction Official has determined that the design plan
to convert the unit entrances from adaptable to accessible meet the
requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and that
the cost estimate of such conversion is reasonable, payment shall
be made to the Borough's Affordable Housing Trust Fund where the funds
shall be deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
(8)Â
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is site impracticable to meet
the requirements. Determinations of site impracticability shall be
in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
I.Â
Maximum rents and sales prices.
(1)Â
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD and by the
Superior Court.
(2)Â
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.
(3)Â
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.
(a)Â
At least 13% of all low- and moderate-income dwelling units
shall be affordable to households earning no more than 30% of median
income.
(4)Â
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.
(5)Â
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:
(a)Â
A studio shall be affordable to a one-person household;
(b)Â
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)Â
A two-bedroom unit shall be affordable to a three-person household;
(d)Â
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)Â
A four-bedroom unit shall be affordable to a six-person household.
(6)Â
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted development, the following
standards shall be used:
(7)Â
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 homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)Â
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, including an allowance for tenant-paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(9)Â
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.
(10)Â
The rent of very-low-, low- and moderate-income units may be
increased annually based on the percentage increase in the Housing
Consumer Price Index for the Northeast Urban Area. This increase shall
not exceed 9% in any one year. Rent increases for units constructed
pursuant to low-income housing tax credit regulations shall be indexed
pursuant to the regulations governing low-income housing tax credits.
(11)Â
Utilities. 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 HUD for its Section 8 program.
