[HISTORY: Adopted by the Township Committee of the Township
of Mendham 8-24-1999 by Ord. No. 15-1999 (Ch. XXVI of the 1998 Revised
General Ordinances). Amendments noted where applicable.]
The provisions of this chapter shall govern the development,
construction, sale, and resale of limited income housing in the Township.
Any affordable housing constructed within the Township of Mendham
after August 24, 1999 shall be developed in conformance with the current
rules and regulations of the New Jersey Council on Affordable Housing,
including but not limited to the phasing of construction, bedroom
distribution requirements, initial pricing and/or rental requirements,
occupancy eligibility, affirmative marketing, and long-term affordability
controls.
For the purposes of this chapter, the following terms shall
have the meanings set forth in this section unless different meanings
are clearly indicated by the context in which they are used. All terms
defined in N.J.A.C. 5:93-1.3 are hereby incorporated by reference
as if set forth herein in their entirety.
A residential dwelling that is sold or rented at a rate within
the means of a low or moderate-income household as defined by the
New Jersey Council on Affordable Housing. "Affordable housing" is
the same as "limited-income housing" as defined in Chapter XII (General
Definitions) of the Land Use Ordinance.
The New Jersey Council on Affordable Housing.
The Morris S. Frank Housing Corporation, a nonprofit corporation
of the State of New Jersey.[1]
Housing affordable according to New Jersey Council on Affordable
Housing regulations, to a household with a total gross annual income
equal to 50% or less of the median gross household income for households
of the same size within the housing region in which the housing is
located as adopted by COAH, and which is subject to affordability
controls consistent with COAH regulations.
Housing affordable according to New Jersey Council on Affordable
Housing regulations, to a household with a total gross annual income
in excess of 50% but less than 80% of the median gross household income
for households of the same size within the housing region in affordability
controls consistent with COAH regulations.
[1]
Editor's Note: The Morris S. Frank Housing Corporation has
been replaced by the Housing Partnership.
A.
General. The sale and resale of all affordable housing shall be undertaken in accordance with the requirements of this chapter and COAH regulations. These regulations are intended to implement the requirements of N.J.A.C. 5:93-11. Marketing for the sale and resale of all affordable housing shall be based upon a regional marketing strategy (within the housing region designated in Subsection B) designed to attract prospective home buyers of all groups regardless of sex, age or number of children, who live or work within the housing region, to available affordable housing units in the Township of Mendham. The developer of affordable housing units shall have the primary role in developing the initial affirmative marketing plan, subject to the review and approval of and monitoring by the Housing Corporation,[1] for the sale of units in the developer's project,
and the developer shall undertake the initial marketing and sale of
affordable housing consistent with the aforesaid plan, this chapter
and COAH regulations. Thereafter, the Housing Corporation shall administer
all re-sales of affordable housing consistent with the affirmative
marketing requirement of this chapter and COAH regulations.
[1]
Editor's Note: The Morris S. Frank Housing Corporation has
been replaced by the Housing Partnership.
B.
Housing region. The Township of Mendham is located within Region
2, as determined by COAH, which includes Essex, Morris, Union and
Warren Counties.
C.
Discrimination in the sale, rental, financing or other services related
to the housing on the basis of race, color, sex, religion, handicap,
familial status/size, age or national origin is prohibited. The Township
of Mendham shall comply with monitoring and reporting requirements
in accordance with N.J.A.C. 5:93-11.6 and 12.1.
D.
Affirmative marketing requirements.
(1)
All newspaper articles, announcements and requests for applications
for affordable housing shall appear in the following daily regional
newspapers: Star Ledger and Daily Record.
[Amended 5-12-2014 by Ord. No. 6-2014]
(2)
All newspaper articles, announcements and requests for applications
for affordable housing shall appear in the following daily local or
neighborhood-oriented newspapers/publications, religious publications
and/or organizational newsletters within the region: Daily Record
and Observer Tribune.
(3)
Regional radio and/or cable television station(s) will be used as
necessary.
(4)
Initial marketing shall take the form of at least one press release
sent to the above newspapers and a paid display advertisement in each.
Additional advertising shall be on an as-needed basis.
(5)
Each newspaper advertisement shall include a description of the following:
(6)
Applications shall be mailed to prospective applicants upon request.
In addition, the following are the locations where applications, brochures,
signs or other forms of advertisement/marketing may be found:
(7)
The following is a listing of community contacts in the housing region
that will aid in the affirmative marketing program with particular
emphasis on contacts that will reach out to groups that are the least
likely to apply for housing within the region:
(8)
Flyers and applications shall be sent on an as-needed basis to each
of the following agencies for publication in their journals and for
circulation among their members: Board of Realtors in Essex, Morris,
Union and Warren Counties.
(10)
The marketing program shall commence at least 120 days before the
first issuance of a certificate of occupancy, whether temporary or
permanent. The program shall continue until all low- and moderate-income
housing units are initially occupied and for as long as affordable
units are provided or assured through deed restrictions and as occupancy
or reoccupancy of units continues to be necessary in satisfaction
of the Township's affordable housing obligation.
(11)
Residency preference. The Township of Mendham shall comply with N.J.A.C.
5:93-11.7. There shall be no local residency preference in marketing
affordable housing. However, an occupancy preference may be given
to income-eligible households that live or work within the COAH-determined
housing region within which Mendham Township is situated.
[Amended 12-10-2018 by Ord. No. 23-2018]
A.
Income limits for all units that are part of the Townships'
Housing Element and Fair Share Plan and for which income limits are
not already established through a federal program exempted from the
Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1
shall be updated by the Townships' Affordable Housing Coordinator
(sometimes hereinafter referred to as the "administrative agent")
annually within 60 days of the publication of determinations of median
income by HUD as follows:
(1)
Regional income limits shall be established for the region that the
Township is located within based on the median income by household
size, which shall be established by a regional weighted average of
the uncapped Section 8 income limits published by HUD. To compute
this regional income limit, the HUD determination of median county
income for a family of four is multiplied by the estimated households
within the county according to the most recent decennial census. The
resulting product for each county within the housing region is summed.
The sum is divided by the estimated total households from the most
recent decennial census in the Township's housing region. This
quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80% of the regional weighted average
median income for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income for a
family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than those for the
previous year.
(2)
The income limits derived from applying the percentages set forth in Subsection A(1) above to HUD's determination of median income for FY 2017 shall be utilized until the municipality updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(3)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Affordable Housing Coordinator annually by taking the percentage increase of the income limits calculated pursuant to Subsection A(1) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
B.
In establishing sale prices and rents of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the regional income limits established pursuant to
the process defined above:
(1)
The resale prices of owner-occupied low- and moderate-income units may increase annually based on the percentage increase in the regional median income limit for each housing region determined pursuant to Subsection A above. In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
(2)
The rent levels 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, upon its publication
for the prior calendar year. This increase shall not exceed 9% in
any one year. Rents for units constructed pursuant to low-income housing
tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
[Amended 12-10-2018 by Ord. No. 23-2018]
The resale pricing for affordable housing units offered for resale in accordance with Chapter 75 shall have such resale prices set and configured by the administrative agent in accordance with the guidelines established by the Affordable Housing Professionals of New Jersey.
[Added 2-28-2017 by Ord.
No. 1-2017]
Upon sale of the unit, the seller shall pay a fee of 1.25% to
the Housing Partnership upon sale of the affordable housing unit.
[Added 2-28-2017 by Ord.
No. 1-2017]
A.
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.
B.
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:
(1)
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:
(a)
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;
(b)
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 Township of Mendham Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
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.
(2)
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 loan, and shall constitute a lien against
the low- and moderate-income unit.
(a)
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 all 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.
(b)
The proceeds of the Sheriff's sale shall first be applied
to satisfy the 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.
(c)
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.
(d)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the lien and any prior liens, the municipality
may acquire title to the low- and moderate-income unit by satisfying
the mortgage and any prior liens and crediting the violating owner
with an amount equal to the difference between the current 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.
(e)
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.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
