[HISTORY: Adopted by the City Council of the City of Hoboken 10-17-2012 by Ord. No. Z-208. Amendments noted where applicable.]
Council on Affordable Housing — See Ch. 7.
Housing Authority — See Ch. 38.
Land use procedures — See Ch. 44.
Minimum standards for dwellings — See Ch. 95.
Maintenance of hotels and multiple dwellings — See Ch. 120.
Rental housing — See Ch. 154.
Rent control — See Ch. 155.
Rooming houses — See Ch. 158.
Zoning — See Ch. 196.
The following terms, when used in this chapter, shall have the meanings given in this section:
- 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.
- ADMINISTRATIVE AGENT
- The entity responsible for the administration of affordable units in accordance with this chapter, as defined and with the responsibilities specified at N.J.A.C. 5:96, N.J.A.C. 5:97 and N.J.A.C. 5:80-26.1 et seq., as may be amended and supplemented.
- AFFIRMATIVE MARKETING
- A regional marketing strategy designed to attract buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
- AFFORDABILITY AVERAGE
- 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.
- AFFORDABLE DEVELOPMENT
- A housing development, all or a portion of which consists of restricted units.
- AFFORDABLE HOUSING
- Housing restricted to income-eligible low- and moderate-income households.
- AFFORDABLE HOUSING DEVELOPMENT
- 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 one-hundred-percent affordable development.
- AFFORDABLE HOUSING PROGRAM(S)
- Any mechanism in a municipal fair share plan prepared or implemented to address a municipality's fair share housing obligation.
- AFFORDABLE UNIT
- 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.
- The New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
- AGE-RESTRICTED UNIT
- A housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population such that:
- A. All the residents of the development where the unit is situated are 62 years or older; or
- B. At least 80% of the units are occupied by one person that is 55 years or older; or
- C. The development has been designated by the Secretary of the United States 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.
- ASSISTED LIVING RESIDENCE
- 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.
- BOARD OF JURISDICTION
- The Planning Board of the City of Hoboken, the Board of Adjustment of the City of Hoboken, or the City Council of the City of Hoboken, as applicable.
- CERTIFIED HOUSEHOLD
- 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.), or successor agency.
- The State of New Jersey Department of Community Affairs.
- DEFICIENT HOUSING UNIT
- 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.
- HOUSING REGION
- A geographic area, determined by COAH, of no less than two and no more than four contiguous, whole counties, which exhibits significant social, economic, and income similarities and which constitutes, to the greatest extent practicable, a Primary Metropolitan Statistical Area (PMSA), as last defined by the United States Census Bureau.
- INCLUSIONARY DEVELOPMENT
- 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.
- Development on vacant or underutilized property between existing buildings.
- LOW-INCOME HOUSEHOLD
- A household with a total gross annual household income equal to 50% or less of the median household income for the housing region.
- LOW-INCOME UNIT
- A restricted unit that is affordable to a low-income household.
- MAJOR SYSTEM
- 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.
- MARKET-RATE UNITS
- Housing not restricted to low- and moderate-income households that may sell or rent at any price.
- MEDIAN INCOME
- The median income by household size for the applicable county, as adopted annually by COAH.
- MODERATE-INCOME HOUSEHOLD
- A household with a total gross annual household income in excess of 50% but less than 80% of the median household income for the housing region.
- MODERATE-INCOME UNIT
- A restricted unit that is affordable to a moderate-income household.
- NONEXEMPT SALE
- 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.
- RANDOM SELECTION PROCESS
- 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).
- REDEVELOPMENT PLAN
- A plan adopted by the City Council of the City of Hoboken for the redevelopment or rehabilitation of all or any part of a redevelopment area, or area in need of rehabilitation, pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.
- REGIONAL ASSET LIMIT
- 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 COAH's adopted Regional Income Limits published annually by COAH.
- 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.
- RESTRICTED UNIT
- 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 the UHORP or MONI programs of the Agency.
- SUBSTANTIAL REHABILITATION
- Any rehabilitation of a vacant structure or any rehabilitation that involves the replacement of two or more major systems.
- TOTAL DEVELOPMENT COST
- The expenses that a developer can reasonably expect to incur in order to develop an affordable housing development, which include "hard costs" such as land acquisition, site improvements, and new construction or rehabilitation, and "soft costs" consisting of all other costs and fees, such as professional services and financing fees.
- The Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.
- VERY-LOW-INCOME HOUSEHOLD
- A household with a total gross annual household income equal to 30% or less of the median household income.
- VERY-LOW-INCOME UNIT
- A restricted unit that is affordable to a very-low-income household.
- WATERFRONT DISTRICT
- Any district or subdistrict so designated by the Zoning Ordinance of the City of Hoboken.
- 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.
Applicability; types of development: all development of property in the City of Hoboken subject to approval by either the Planning Board or Zoning Board of Adjustment for site plan or conditional use approval for residential development subject to the exemptions listed below in Subsection B (The City recognizes that many applicants elect to bifurcate applications before the Zoning Board of Adjustment and first seek only variance relief and return at a later date for site plan approval. Precise residential unit counts are not necessarily known until a site plan application is filed. It is therefore necessary to apply this chapter to site plan approvals, subject to the exclusions in Subsection B.); for variance relief pursuant to any section of N.J.S.A. 40:55D-70d involving an increase in residential density; or for an approval in conjunction with a redevelopment plan adopted pursuant to the Local Redevelopment and Housing Law that includes residential uses. All such development shall include housing affordable to low- and moderate-income individuals and families in accordance with the standards of this chapter, with the exception of the exemptions enumerated in Subsection B.
The following shall be exempt from the provisions of this chapter:
The first 10 units of substantial rehabilitation projects where variance relief pursuant to N.J.S.A. 40:55D-70d is required.
Applications exclusively for development of 10 residential units or fewer, whether before the Planning Board or Zoning Board of Adjustment.
Any project which is to be undertaken by a nonprofit corporation for the purpose of developing, through new construction or substantial rehabilitation, residential property in which all of the units in the project are for low- and/or moderate-income families, but only upon application to and a written finding by the Board that the project is providing an affordable housing benefit in the spirit of and comparable to the benefit provided through this chapter. Such development would be 100% affordable and not an inclusionary development, therefore not necessitating a set-aside.
Development under an adopted redevelopment plan in effect as of the effective date of this chapter, unless amended subsequently to increase the density or floor area ratio.
Any application before the Planning Board for a permitted use. This subsection does not serve as a blanket exemption for any site plan. Site plan applications submitted in conjunction with an application for a permitted use before the Planning Board shall be exempt. Applications for site plan approval submitted in conjunction with either a variance or bifurcated variance application pursuant to N.J.S.A. 40:55D-70d, which either increase permitted residential density or permit residential development where none is permitted, are not subject to this exemption. Applications submitted pursuant to a redevelopment plan which include a residential component which requires a site plan approval and are not subject to the exemption listed in Subsection B(3) above shall not qualify for an exemption.
Each development subject to this chapter shall contain the following percentage of units to be provided for affordable housing:
Ten percent where all affordable units provided pursuant to this chapter are located on site, whether rental, "for sale," fee simple, condominium or cooperative.
One off-site unit must be provided in lieu of each on-site unit required by Subsection C(1) hereof where some or all affordable units provided pursuant to this chapter are located off site as permitted by this chapter, with the exception of development located in the Waterfront District. One and five-tenths off-site units must be provided in lieu of each on-site unit required by Subsection C(1) hereof for development in the Waterfront District.
In all calculations of a developer's affordable housing set-aside responsibility under this chapter, any unit reserved for the superintendent of the residential development shall not be credited towards satisfaction of the affordable housing obligation.
Rounding. When any calculation of the percentage of affordable units required to be provided results in a fractional unit of 1/2 or more, the fraction shall be rounded up to the next whole unit. When a calculation results in a faction of less than 1/2, the fraction shall be rounded down to the previous whole unit.
Any residential or mixed-use development receiving Urban Transit Hub Tax Credit financing pursuant to N.J.S.A. 34:1B-207 et seq. shall set side 20% of the total units in the development as affordable units.
Plan of compliance.
Each development subject to this chapter shall prepare and submit to the Board of jurisdiction a plan of compliance with the terms and conditions hereof, which plan shall include:
A description of the development, which may be given by reference to other documents submitted to the Board.
A statement of the number of proposed residential units in the development.
A statement setting forth the number of affordable units required to be provided, specifying the number of low-income and moderate-income units, and the number of efficiency, one-bedroom, two-bedroom, and three-bedroom (or larger) units to be provided in each category.
A statement setting forth the anticipated purchase or rental prices of the affordable housing units to be provided.
A sworn affidavit by the developer that the project is not part of any larger development and has not been artificially subdivided, separated or developed apart from that larger development through the manipulation of the design or implementation schedule in order to evade the provisions of this chapter.
A fiscal statement demonstrating that the number of proposed market-rate residential units is necessary to subsidize the proposed number of low- and moderate-income units. The statement shall demonstrate a rational nexus between any proposed density bonus or compensatory benefit and the number of affordable housing units provided on or off site.
No preliminary or minor site plan, subdivision or bifurcated use variance approval shall be granted until and unless the plan of compliance has been approved by the Board of jurisdiction.
It is the intent of this chapter to prevent evasion of its requirements by the artificial subdivision, separation, construction or rehabilitation of a project into smaller developments through the manipulation of the design or implementation schedule. The Board, therefore, shall review each project to determine whether the project has been artificially subdivided, separated, constructed or rehabilitated through the manipulation of the design or implementation schedule in order to evade the provisions of this chapter. If the Board so finds, it shall disapprove the plan.
Any developer engaged in a project subject to the provisions of this chapter may apply to the Board of jurisdiction to provide the affordable housing required by the application of this chapter in a structure or structures located apart from the development triggering the provisions of this chapter but within the City of Hoboken. Such approval is within the sole discretion of the Board of jurisdiction and may be granted where:
The affordable housing units to be provided off site are of comparable or superior size and quality to those that would have otherwise been provided.
The environmental conditions of the neighborhood in which the affordable units are to be located are suitable for residential development.
Approval would not tend to increase the concentration of low- or moderate-income households within any part of the City of Hoboken.
The Board of jurisdiction should give substantial weight to the policy of favoring integrated development over separate developments for low- and moderate-income households and higher-income households.
Provision of on-site or off-site affordable housing units shall take place simultaneously with the balance of the development triggering the affordable housing requirement and shall be governed by the following phasing schedule:
In inclusionary developments, low- and moderate-income units shall be integrated with and interspersed among the market-rate units but may be concentrated for financing or property management reasons at the discretion of the Board of jurisdiction, e.g., for rental affordable units satisfying the set-aside required for a development of market-rate condominium units.
A schedule setting forth the phasing of the actual number of total units and affordable units, by income category and unit size, for each development shall be incorporated into the resolution of approval for any development subject to the provisions of this chapter.
Low- and moderate-income units shall utilize the same type of heating source as market-rate units within the affordable development.
Affordable housing units provided under this chapter shall comply with the standards of this section.
Occupancy standards for determining rents and sales prices. 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 studio shall be affordable to a one-person household;
A one-bedroom unit shall be affordable to a one-and-one-half-person household;
A two-bedroom unit shall be affordable to a three-person household;
A three-bedroom unit shall be affordable to a four-and-one-half-person household; and
A four-bedroom unit shall be affordable to a six-person household.
Occupancy standards for determining rents in assisted living facilities. 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:
Bedroom distribution of affordable housing units.
The bedroom distributions of affordable units in non-age-restricted developments shall be structured, in conjunction with realistic market demands, such that:
The combined number of efficiency and one-bedroom units shall be no greater than 20% of the total low- and moderate-income units;
At least 30% of all low- and moderate-income units shall be two-bedroom units;
At least 20% of all low- and moderate-income units shall be three-bedroom units; and
The remaining units may be allocated among two- and three-bedroom units at the discretion of the developer.
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.
Very low/low/moderate split.
[Added 8-7-2019 by Ord. No. B-175]
The affordable units shall be divided equally between low- and moderate-income units, except that where there is an odd number of affordable housing unit, the extra unit shall be a low-income unit. At least 13% of the restricted rental units shall be very-low-income units (affordable to a household earning 30% or less of regional median income by household size). The very-low-income units shall be counted as part of the required number of low-income units within the development.
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be very-low- or low-income units. If there is only one affordable unit, it must be a low-income unit.
Editor's Note: This ordinance also redesignated former Subsection C as Subsection D.
Marketing of affordable housing units. Marketing of affordable housing units provided under this chapter shall be undertaken subject to the following provisions:
[Amended 8-7-2019 by Ord. No. B-175]
Marketing shall take place in accordance with the provisions of a marketing plan, as provided herein.
The City of Hoboken shall adopt, by resolution, an affirmative marketing plan, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented. Such affirmative marketing plan shall be included as part of an eventual petition to COAH for substantive certification or as part of a declaratory judgement action filed in Superior Court.
The affirmative marketing plan shall recognize that the City of Hoboken is an urban aid municipality. The affirmative marketing plan shall contain a residency preference for all new units which are intended to satisfy the City's rehabilitation obligation, which is an indigenous requirement. The affirmative marketing plan is a 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 family 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 the City. It is a continuing program that directs all marketing activities toward the City with regard to new construction which satisfies the rehabilitation obligation and covers the period of deed restriction. This residency preference is subject to compliance with any federal or state regulations concerning marketing where certain subsidies or other incentives are provided.
The affirmative marketing plan shall also have a residency preference for new units which are not a part of and exceed the rehabilitation obligation. This residency preference, however, must not result in an affirmative marketing plan which violates any federal or state statute by resulting in a discriminatory or disparate impact to minority groups. The City is required to re-evaluate this section at least every 10 years simultaneous with the re-examination of the municipal Master Plan by the City Planning Board pursuant to N.J.S.A. 40:55D-89.
There shall also be a residency preference in the leasing and sale of affordable housing units. The affordable housing waiting list maintained by the administrative agent or other appropriate municipal official shall further be required to prioritize residents of the City of Hoboken over nonresidents pursuant to the limitations expressed above.
The administrative agent designated by the City of Hoboken shall assure the affirmative marketing of all affordable units developed pursuant to this chapter, consistent with the affirmative marketing plan for the municipality.
In implementing the affirmative marketing plan, the administrative agent shall provide a list of housing counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law.
The affirmative marketing process for available affordable units shall begin at least four months prior to the expected date of occupancy of the units.
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 the City of Hoboken.
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 chapter until the City of Hoboken elects to release the unit from such requirements. Prior to such an election, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1 et seq. and this chapter, as may be amended and supplemented, for a minimum of 40 years.
The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.
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.
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 chapter, 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.
The affordability controls set forth in this chapter shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.
All conveyances of restricted ownership units pursuant to this chapter shall be made by deeds and restrictive covenants substantially in the form prescribed in N.J.A.C. 5:80-26 appendices. The deed restriction shall have priority over all mortgages on the property. The deed restriction shall be filed by the developer or seller with the records, office of the County of Hudson. A copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.
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.
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:
The initial purchase price for a restricted ownership unit shall be approved by the administrative agent.
[Amended 8-7-2019 by Ord. No. B-175]
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.
The administrative agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.
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.
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.
[Amended 8-7-2019 by Ord. No. B-175]
Buyer income eligibility for restrictive ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented. 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 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.
The income limits shall be as set forth in Chart "A" annexed hereto and made a part hereof on the chart prepared by the Affordable Housing Professionals of New Jersey April 2018, titled "2018 Affordable Housing Regional Income Limits by Household Size," which shall be utilized until Hoboken updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
Editor's Note: Said chart is on file in the City offices.
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 municipality annually by taking the percentage increase of the income limits calculated pursuant to Subsection A 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.
In establishing sales prices 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:
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.
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, homeowners' and private mortgage insurance and condominium or homeowners' association fees, as applicable) does not exceed 33% of the household's certified monthly income.
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.
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).
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 chapter until the City of Hoboken 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 et seq. and this chapter, as may be amended and supplemented, for minimum of 40 years.
Deeds of all real property that include restricted rental units shall contain deed restriction language substantially in the form set forth in N.J.A.C. 5:80-26 appendices. 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 Hudson. A copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.
A restricted rental unit shall remain subject to the affordability controls of this chapter despite the occurrence of any of the following events:
[Amended 8-7-2019 by Ord. No. B-175]
In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in the UHAC utilizing the regional income limits established by the New Jersey Department of Community Affairs (DCA) or other agency as may be required by a court.
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.
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 dwelling units shall be affordable to households earning no more than 30% of median income.
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 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.
In establishing rents of affordable housing units, the administrative agent shall follow the procedures set forth in the UHAC, utilizing the regional income limits established pursuant to the process defined above:
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 5% 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.
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:
Very-low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of median income.
Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income.
Moderate-income rental units shall be reserved for households with a gross household income less than 80% of median income.
The administrative agent shall certify a household as eligible for a restricted rental unit when the household is a very-low-income household, a 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:
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;
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;
The household is currently in substandard or overcrowded living conditions;
The household documents the existence of assets with which the household proposes to supplement the rent payments; or
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.
The position of Municipal Housing Liaison (MHL) for the City of Hoboken is established by this chapter and shall be appointed through a resolution adopted by the City Council. In the event of a petition for substantive certification, the City of Hoboken shall confirm the appointment of the MHL to COAH by means of a letter from the Mayor to COAH.
The MHL must be either a full-time or part-time employee of the City of Hoboken.
In the event of a petition for substantive certification, the person appointed as the MHL must be reported to COAH for approval.
The MHL must comply with all COAH requirements.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the City of Hoboken, including the following responsibilities which may not be contracted out to the administrative agent:
Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
The implementation of the affirmative marketing plan and affordability controls;
When applicable, supervising any contracting administrative agent;
Monitoring the status of all restricted units in the City of Hoboken's Fair Share Plan;
Compiling, verifying and submitting annual reports as required by COAH;
Coordinating meetings with affordable housing providers and administrative agents, as applicable; and
Attending continuing education opportunities on affordability controls and compliance monitoring.
The City of Hoboken shall designate by resolution of the City Council one or more administrative agents to administer newly constructed or substantially rehabilitated affordable units in accordance with N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC (N.J.A.C. 5:80-26). All administrative agents must be approved by COAH in the event of a petition for substantive certification.
An Operating Manual shall be prepared and provided by the administrative agent(s) to be adopted by resolution of the City Council. The Operating Manual(s) shall be available for public inspection in the office of the Municipal Clerk and in the office(s) of the administrative agent(s). The Operating Manual shall be subject to review and approval by COAH in the event of a petition for substantive certification.
The administrative agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC and which are described in full detail in the Operating Manual, 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:
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing;
Resale and rerental;
Processing requests from unit owners; and
Enforcement, though the ultimate responsibility for retaining controls on the units rests with the municipality.
The administrative agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.
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 violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
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:
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 fine of not more than $2,500 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.
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 City of Hoboken Affordable Housing Trust Fund of the gross amount of rent illegally collected.
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.
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.
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.
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.
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.
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.
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.
The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions governing affordable housing units until such time as title is conveyed from the owner.
All redevelopment plans providing for residential development, prepared and adopted or amended pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., after the effective date of this chapter, shall include inclusionary affordable housing development standards and requirements identical to the standards and requirements of this chapter.
This chapter shall take effect upon passage and publication as provided by law but shall not be applicable to applications for residential development pending before the Board of jurisdiction on the effective date of this chapter.
If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.
The Affordable Housing Ordinance added to the City Code 5-18-1988 by Ord. No. P-6, §§ 196-68 through 196-81, is hereby repealed prospectively. It shall remain in full force and effect for all applications for residential development pending before the Board of jurisdiction on the effective date of this chapter seeking a use variance to allow residential development in a zoning district or redevelopment plan where such uses are not currently permitted or seeking an increase in residential density or floor area ratio (FAR). This chapter shall further remain applicable to all applications having received approval under its terms.
All ordinances or parts of ordinances inconsistent herewith are repealed as to such inconsistencies.