[HISTORY: Adopted by the Township Committee of the Township
of Riverside 4-16-2001 by Ord. No. 2001-3 (Ch. 4 of the 1995
Code). Amendments noted where applicable.]
This chapter shall be known and may be cited as the "Affordable
Housing Ordinance of the Township of Riverside."
This chapter of the Riverside Township Code sets forth regulations
regarding low- and moderate-income housing units in Riverside Township
that are consistent with the provisions of N.J.A.C. 5:93 et seq.,
as effective on June 6, 1994. These rules are pursuant to the Fair
Housing Act of 1985 and Riverside Township's constitutional obligation
to provide for its fair share of low- and moderate-income housing.
A.
Unless otherwise permitted by court order or by COAH, Riverside Township's
new construction or inclusionary component will be divided equally
between low- and moderate-income households as per N.J.A.C. 5:93-2.20.
B.
Except for inclusionary developments constructed pursuant to low-income
tax credit regulations:
(1)
At least 1/2 of all units within each inclusionary development will
be affordable to low-income households;
(2)
At least 1/2 of all rental units will be affordable to low-income
households; and
(3)
At least 1/3 of all units in each bedroom distribution, pursuant
to N.J.A.C. 5:93-7.3, will be affordable to low-income households.
C.
Inclusionary developments that are not restricted to senior citizens
will be structured in conjunction with realistic market demands so
that:
(1)
The combination of efficiency and one-bedroom units is at least 10%
and no greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two-bedroom
units;
(3)
At least 20% of all low- and moderate-income units are three-bedroom
units; and
(4)
Low- and moderate-income units restricted to senior citizens may
utilize a modified bedroom distribution. At a minimum, the number
of bedrooms will equal the number of senior citizen low- and moderate-income
units within the inclusionary development.
D.
In conjunction with realistic market information, the following criteria
will be used in determining maximum rents and sale prices:
(1)
Efficiency units will be affordable to one-person households;
(2)
One-bedroom units will be affordable to 1.5-person households;
(3)
Two-bedroom units will be affordable to three-person households;
(4)
Three-bedroom units will be affordable to 4.5-person households;
(5)
Median income by household size will be established by a regional
weighted average of the uncapped Section 8 income limits published
by HUD as per N.J.A.C. 5:93-7.4(b);
(6)
The maximum average rent and price of low- and moderate-income units
within each inclusionary development will be affordable to households
earning 57.5% of median income;
(7)
Moderate-income sales units will be available for at least three
different prices and low-income sales units will be available for
at least two different prices;
(8)
For both owner-occupied and rental units, the low- and moderate-income
units will utilize the same heating source as market units within
an inclusionary development;
(9)
Low-income units will be reserved for households with a gross household
income less than or equal to 50% of the median income approved by
COAH; moderate-income units will be reserved for households with a
gross household income less than 80% of the median income approved
by COAH as per N.J.A.C. 5:93-9.16; and
(10)
The regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16
will be applicable for purchased and rental units.
E.
For rental units, developers and/or municipal sponsors may:
(1)
Establish one rent for a low-income unit and one for a moderate-income
unit for each bedroom distribution; and
(2)
Gross rents, including an allowance for tenant-paid utilities, will
be established so as not to exceed 30% of the gross monthly income
of the appropriate household size as per N.J.A.C. 5:93-7.4(a). The
tenant-paid utility allowance will be consistent with the utility
allowance approved by HUD for use in New Jersey.
F.
For sale units:
(1)
The initial price of a low- and moderate-income owner-occupied single-family
housing unit will be established so that after a down payment of 5%,
the monthly principal, interest, homeowner and private mortgage insurances,
property taxes (based on the restricted value of the low- and moderate-income
unit) and condominium or homeowner fees do not exceed 28% of the eligible
gross monthly income;
(2)
Master deeds of inclusionary developments will regulate condominium
or homeowner association fees or special assessments of low- and moderate-income
purchasers at (state percent) percentage of those paid by market purchasers.
This (state percent) percentage is consistent with the requirement
of N.J.A.C. 5.93-7.4(e). Once established within the master deed,
the percentage will not be amended without prior approval from COAH;
(3)
The Township of Riverside will follow the general provisions concerning
uniform deed restriction liens and enforcement through certificates
of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3;
(4)
Riverside Township will require a certificate of reoccupancy for
any occupancy of a low- or moderate-income sales unit resulting from
a resale as per N.J.A.C. 5:93-9.3(c);
(5)
Municipal, state, nonprofit and seller options regarding sale units
will be consistent with N.J.A.C. 5:93-9.5 through 5:93-9.8. Municipal
rejection of repayment options for sale units will be consistent with
N.J.A.C. 5:93-9.9;
(6)
The continued application of options to create, rehabilitate or maintain
low- and moderate-income sale units will be consistent with N.J.A.C.
5:93-9.10;
(7)
Eligible capital improvements prior to the expiration of controls
on sale units will be consistent with N.J.A.C. 5:93-9.11; and
(8)
The regulations detailed in N.J.A.C. 5:93-9.12 through 5:93-9.14
will be applicable to low- and moderate-income units that are for
sale units.
G.
In zoning for inclusionary developments, the following is required:
(1)
Low- and moderate-income units will be built in accordance with N.J.A.C.
5:93-5.6(d):
|
Minimum Percentage of Low-/Moderate Income Units Completed
|
Percentage of Market Housing Units Completed
|
|---|---|
|
0
|
25
|
|
10
|
25+1 unit
|
|
50
|
50
|
|
75
|
75
|
|
100
|
90/100
|
(2)
A design of inclusionary developments that integrates low- and moderate-income
units with market units is encouraged as per N.J.A.C. 5:93-5.6(e).
I.
To provide assurances that low- and moderate-income units are created
with controls on affordability over time and that low- and moderate-income
households occupy these units, Riverside Township will designate the
Township Administrator or the Small Cities Coordinator with the responsibility
of ensuring the affordability of sales and rental units over time.
The Township Administrator or the Small Cities Coordinator will be
responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
In addition:
(1)
The Township Administrator or the Small Cities Coordinator will be
responsible for utilizing the verification and certification procedures
outlined in N.J.A.C. 5:93-9.1(b) in placing households in low- and
moderate-income units;
(2)
Newly constructed low- and moderate-income sales units will remain
affordable to low- and moderate-income households for at least 30
years. The Township Administrator or the Small Cities Coordinator
will require all conveyances of newly constructed units to contain
the deed restriction and mortgage lien adopted by COAH and referred
to as "Technical Appendix E," as found in N.J.A.C. 5:93; and
(3)
Housing units created through the conversion of a nonresidential
structure will be considered new housing units and will be subject
to thirty-year controls on affordability. The Township Administrator
or the Small Cities Coordinator will require COAH's appropriate deed
restriction and mortgage lien.
J.
Regarding rehabilitated units:
(1)
Rehabilitated owner-occupied single-family housing units that are
improved to code standard will be subject to affordability controls
for at least six years; and
(2)
Rehabilitated renter-occupied housing units that are improved to
code standard will be subject to affordability controls for at least
10 years.
K.
Regarding rental units:
(1)
Newly constructed low- and moderate-income rental units will remain
affordable to low- and moderate-income households for at least 30
years. The Township Administrator or the Small Cities Coordinator
will require the deed restriction and lien and deed of easement referred
to as "Technical Appendix H," as found in N.J.A.C. 5:93;
(2)
Affordability controls in accessory apartments will be for a period
of at least 10 years, except if the apartment is to receive a rental
bonus credit pursuant to N.J.A.C. 5:93-5.13 then the controls on affordability
will extend for 30 years; and
(3)
Alternative living arrangements will be controlled in a manner suitable
to COAH that provides assurances that such a facility will house low-
and moderate-income households for at least 10 years, except if the
alternative living arrangement is to receive a rental bonus credit
pursuant to N.J.A.C. 5:93-5.13 then the controls on affordability
will extend for 30 years.
L.
Section 14(b) of the Fair Housing Act, N.J.S.A. 52:27D-301 et seq.,
incorporates the need to eliminate unnecessary cost-generating features
from Riverside Township's land use ordinances. Accordingly, Riverside
Township will eliminate development standards that are not essential
to protect the public welfare and to expedite or fast track municipal
approvals/denials on inclusionary development applications. Riverside
Township will adhere to the components of N.J.A.C. 5:93-10.1 to 5:93-10.3.
A.
Program definition.
(1)
The Township of Riverside has a fair-share obligation of 51 units,
of which six are new construction (inclusionary). These affirmative
marketing provisions shall apply to all developments that contain
low- and moderate-income housing units.
(2)
The affirmative marketing plan is a regional marketing strategy designed
to attract income-eligible households of all majority and minority
groups, regardless of sex, age or number of children, for the purpose
of buying or renting affordable housing units. The plan shall address
the requirements of N.J.A.C. 5:93-11. In addition, the plan prohibits
discrimination in the sale, rental, financing, etc., on the basis
of race, color, sex, religion, handicap, age, familial status/size
or national origin. The Township of Riverside is in the housing region
consisting of Burlington, Camden and Gloucester Counties. The affirmative
marketing plan is a continuing program and shall meet the requirements
set forth below.
B.
Advertising.
(1)
All newspaper articles, announcements and requests for applicants
for low- and moderate-income housing shall appear in the following
daily regional newspaper(s): the Burlington County Times, Camden Courier
Post and Gloucester County Times.
(2)
The initial advertising of affordable housing must take the form
of at least one press release and one paid display advertisement in
each of the above newspapers(s). At a minimum, the paid display advertisement
shall include the following:
(a)
Street address of units.
(b)
Directions to housing units.
(c)
Number of bedrooms per unit.
(d)
Size of units.
(e)
Prices or rents of units.
(f)
Income range for qualifying households.
(g)
Location of applications.
(h)
Telephone number and office hours for obtaining information
and requesting applications.
(3)
Applications must be mailed to prospective applicants upon request.
(4)
Public service announcements shall be made through the use of the
following radio and/or cable television stations broadcasting throughout
the region: WWJZ (640.0) Mount Holly Radio Co., WGLS (89.7) Rowan
College of New Jersey, and WDBK (91.5) Camden County College.
(5)
Announcements, requests for applicants and newspaper articles may
be placed in the following neighborhood-oriented weekly newspapers,
religious publications and organizational newsletters within Burlington,
Camden and Gloucester counties as needed: Gazette (others), Catholic
Star Herald, Gloucester County Times.
(6)
Affordable housing applications, brochures, signs and/or announcements
regarding the availability of affordable housing units within the
Township of Riverside shall be forwarded to and posted at the following
three large-scale employers within the region: Wood River Industries,
Hoeganaes Corporation, Riverside Industrial Park.
(7)
The following is a listing of community and regional organizations
in Burlington, Camden and Gloucester Counties that will and in the
affirmative marketing program with particular emphasis on contacts
that will reach out to groups that are least likely to apply for affordable
housing within the region: Affordable Housing Coalition of Burlington
County; Burlington County Community Action Program (BOCAP); Tri-County
Community Action Agency; Camden County Council on Economic Opportunity.
(8)
Affordable housing applications, brochures, announcements and/or
posters will be forwarded to and posted at the following locations:
developer's sales office, municipal building and library, Burlington
County Library, Camden County Library, Gloucester County Library.
(9)
Quarterly informational circulars and applications shall be sent
to each of the following agencies for publication in their journals
and for circulating among their members: Board of Realtors in Burlington
County, Board of Realtors in Camden County, Board of Realtors in Gloucester
County.
(10)
Additional quarterly informational circulars and applications
shall be sent to the following nonprofit, religious, governmental,
fraternal, civic and community action agencies in Burlington, Camden,
and Gloucester Counties: Moorestown Ecumenical Neighborhood Development
Inc. (MEND); Jersey Counseling and Housing Development, Inc.; Lutheran
Social Ministries of New Jersey; Mount Holly 2000.
(11)
The following is a description of the random selection method
that will be used to select occupants of low- and moderate-income
housing:
(a)
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 adopted by COAH.
Applicants shall be notified as to their eligibility status.
(b)
Having screened applicants for preliminary income eligibility,
they will be analyzed as to 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.
(c)
Each applicant shall be interviewed 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.
(d)
The process described in Subsection B(11)(a) through (c) above shall begin no sooner than one month after the initial advertisement outline in Subsection B(2) above. Households shall proceed through the process described in Subsection B(11)(a) through (c) based on their ability to provide the information required pursuant to Subsection B(11)(a) through (c) and pursuant to the occupancy selection procedures. The process described in Subsection B(11)(a) through (c) shall be continued until all the low- and moderate-income units are occupied.
(12)
The Township Administrator or the Small Cities Coordinator when
appointed will be the person to administer the affordable housing
units. He shall have the responsibility to advertise, income-qualify
low- and moderate-income households; to place eligible households
in low- and moderate-income units upon initial occupancy; to continue
to qualify households for reoccupancy of units as they become vacant
and to enforce the terms of the deed restriction. He will provide
counseling services to low- and moderate-income applicants on subjects
such as budgeting, credit issues, mortgage qualifications, rental
lease requirements and landlord-tenant law. In addition, Riverside
Township will designate a housing officer to act as liaison between
COAH, the municipality and the Township Administrator or the Small
Cities Coordinator. The municipal liaison will be responsible for
tracking the progress of affordable housing, fielding inquiries regarding
affordable housing from the public, and COAH, complying with COAH
monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and
5:93-12.1.
(13)
Developers/builders/sponsors of low- and moderate-income housing
units may be required by the Township to assist in the advertising
of affordable units in their respective developments in accordance
with the preceding paragraphs. Such advertising must be coordinated
with the Administrator and is subject to the approval of the Township
Committee.
(14)
Riverside Township, in conjunction with the Administrator, may
delegate other specific tasks to a developer/builder/sponsor (such
as interviewing applicants, prescreening households, etc.), provided
that copies of all applications, income-verification documents, sales
records, etc., of the low- and moderate-income units are returned
to the Administrator for reporting purposes and to aid with future
resales.
(15)
Households who live or work in the housing region of Burlington,
Camden and Gloucester Counties may be given preference for the affordable
housing units within the municipality. Applicants living outside the
housing region shall have an equal opportunity for units after intraregional
applicants have been processed. Riverside Township intends to comply
with N.J.A.C. 5:93-11.7.
(16)
The affirmative marketing plan for new units shall commence
120 days before the issuance of either temporary or permanent certificates
of occupancy. Affirmative marketing shall continue until all low-
and moderate-income housing units are initially occupied. Affirmative
marketing for existing units shall continue on an "as needed" basis
for as long as affordable units are deed restricted.
A.
Purpose. The purpose of this section is to establish standards for
the collection, maintenance and expenditure of development fees in
accordance with the Supreme Court decision in Holmdel Builder's Ass'n
v. Holmdel Township, 121 NJ. 550 (1990), and pursuant to regulations
adopted by the New Jersey Council on Affordable Housing (COAH). Fees
collected pursuant to this section shall be used for the sole purpose
of providing low- and moderate-income housing.
B.
C.
Residential development fees.
(1)
Development fees for residential development shall be 0.005 of the
equalized assessed value of the development.
(2)
Fees exceeding those permitted in this section may be collected where
an agreement is entered into with the developer which offers a financial
incentive for paying higher fees. All agreements are subject to approval
by the court or COAH.
D.
Nonresidential development fees.
(1)
Development fees shall be 1% of the equalized assessed value for
nonresidential development.
(2)
Fees exceeding those permitted in this section may be collected where
there is an agreement with the developer that offers a financial incentive
for paying higher fees. Such agreements may include, but are not limited
to, a tax abatement, increased commercial/industrial square footage,
increased commercial/industrial lot coverage and/or increased commercial/industrial
impervious coverage in return for an increased fee. The fee negotiated
must bear a reasonable relationship to the additional commercial/industrial
consideration to be received. All agreements are subject to approval
by COAH.
E.
Eligible exactions, ineligible exactions, and exemptions.
(1)
Inclusionary developments shall be exempt from paying development
fees.
(2)
Developers that expand an existing nonresidential structure shall
pay a development fee as required in other sections of this chapter.
The development fee shall be calculated based on the increase in the
equalized assessed value of the improved structure.
(3)
Improvements and expansions to existing residential structures shall
be exempt from paying a development fee.
(4)
Developers that have received preliminary or final approval prior
to the effective date of this section shall be exempt from paying
a development fee unless the developer seeks a substantial change
in the approval.
(5)
Developers of churches, synagogues, public nonprofit uses or hospitals
shall be exempt from paying a development fee.
F.
Collection of fees.
(1)
Developers shall pay 50% of the calculated development fee at the
issuance of building permits. The development fee shall be estimated
by the tax assessor prior to the issuance of building permits.
(2)
Developers shall pay the remaining fee upon the issuance of certificates
of occupancy. Upon issuance of certificates of occupancy, the Tax
Assessor shall calculate the equalized assessed value and the appropriate
development fee. The developer shall be responsible for paying the
difference between the fee calculated at certificate of occupancy
and the amount paid at building permit.
(3)
Imposed and collected development fees that are challenged shall
be placed in an interest-bearing escrow account by the municipality.
If all or a portion of the contested fees are returned to the developer,
the accrued interest on the returned amount shall also be returned.
G.
Housing trust fund.
(1)
There is hereby created an interest-bearing housing trust fund in
Farmers and Mechanics Bank for the purpose of receiving development
fees from residential and nonresidential developers. All development
fees paid pursuant to this chapter shall be deposited in this fund.
No money shall be expended from the housing trust fund unless the
expenditure conforms to the municipality's spending plan approved
by COAH.
(2)
Should COAH determine that Riverside Township is in violation of any requirements as set forth at N.J.A.C. 5:93-8.17 and N.J.A.C. 5:93-8.18, the court or COAH, as applicable, is authorized to direct the manner in which all development fees collected pursuant to this chapter shall be expended, pursuant to written authorization from the governing body to the Farmers and Mechanics Bank, which shall be filed with the bank upon the establishment of the housing trust fund as provided in Subsection G(1) above.
H.
Use of funds.
(1)
Money deposited in a housing trust fund may be used for any activity
approved by COAH for addressing Riverside Township's low- and moderate-income
housing obligation. Such activities may include, but are not necessarily
limited to, housing rehabilitation; new construction; regional contribution
agreements; the purchase of land for low- and moderate-income housing;
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 people; and administrative
costs necessary to implement Riverside Township's housing element.
The expenditure of all money shall conform to the spending plan approved
by COAH.
(2)
At least 30% of the revenues collected, not targeted for housing
rehabilitation, a regional contribution agreement or a municipal construction
project, shall be devoted to render units more affordable. Examples
of such activities include, but are not limited to, down payment assistance;
low interest loans; and rental assistance.
(3)
No more than 20% of the revenues shall be expended on administrative
costs necessary to develop, revise or implement the housing element.
Examples of eligible administrative activities include personnel;
consultant services; space costs; consumable supplies; and rental
or purchase of equipment directly related to the development, revision
or implementation of the Township's housing element.
(4)
Development fees shall not be used to reimburse the Township for
housing activities that preceded substantive certification.
I.
Expiration. This section permitting the collection of development
fees shall expire as a result of any of the following:
(1)
COAH's dismissal or denial of a petition for substantive certification.
(2)
COAH's revocation of either substantive certification or its certification
of this chapter.
(3)
The expiration of the time defined by substantive certification unless
the Township has filed an adopted housing element with COAH, petitioned
for substantive certification, and received COAH's approval of its
development fee ordinance.
