The following words and terms, when used in this article, shall
have the meanings given in this section:
ACCESSORY APARTMENT
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.
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
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 article, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
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.
AFFORDABLE
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 HOUSING DEVELOPMENT
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 Monmouth Beach's affordable housing ordinances and
Housing Element and Fair Share Plan.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share 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.
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; 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.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
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.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The New Jersey Council on Affordable Housing established
under the Fair Housing Act of 1985.
CONSTRUCTION
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.).
DCA
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.
DEPARTMENT
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.).
DEVELOPER
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.
DEVELOPMENT
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.
DEVELOPMENT FEE
Money paid for an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH rules and regulations pursuant to N.J.A.C. 5:93-8, Development
Fees.
EQUALIZED ASSESSED VALUE
The assessed value of a property divided by the current State
equalization ratio for the Borough. Estimates at the time of building
permit may be obtained by the Borough Tax Assessor utilizing estimates
for construction cost. Final equalized assessed value shall be determined
at project completion by the Borough Assessor.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market
rate units. Inclusionary developments that have five or more units
must have a minimum of 20% set aside for affordable units if it is
for sale and a minimum of 15% 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.
JUDGMENT OF COMPLIANCE
A determination issued by the Superior Court approving the
Borough's affordable housing plan to satisfy its fair share obligation.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the median household income.
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 the Department.
MIXED-USE DEVELOPMENT
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 Monmouth Beach's affordable housing ordinances and
Housing Element and Fair Share Plan.
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.
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.
NONRESIDENTIAL DEVELOPMENT
A.
Any building or structure, or portion thereof, including but
not limited to any appurtenant improvements, which is designated to
a use group other than a residential use group according to the State
Uniform Construction Code promulgated to effectuate the State Uniform
Construction Code Act, P.L. 1975. c. (N.J.S.A. 52:27D-119 et seq.),
including any subsequent amendments or revisions thereto;
B.
Hotels, motels, vacation timeshares, and child-care facilities;
and
C.
The entirety of all continuing care facilities within a continuing
care retirement community which is subject to the Continuing Care
Retirement Community Regulation and Financial Disclosure Act, P.L.
1986, c. 103 (N.J.S.A. 52:27D-330 et seq.).
RANDOM SELECTION PROCESS
A process by which current 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).
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 the Department's adopted regional income limits published
annually by the Department.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
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 UHORP or MONI.
UHAC
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.
WEATHERIZATION
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 Monmouth Beach will use the following mechanisms
to satisfy its affordable housing obligations:
A. Percentage of mandatory set asides for all future residential developments.
1. If the Borough permits the construction of multifamily residential
developments, the Borough shall require that an appropriate percentage
of the residential units be set aside for low- and moderate-income
households. This requirement shall apply beginning with the effective
date of this article to any multifamily development, including the
residential portion of a mixed-use development, which consists of
five 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. For inclusionary
projects in which the low and moderate units are to be offered for
sale, the appropriate set-aside percentage is 20%; for projects in
which the low- and moderate-income units are to be offered for rent,
the appropriate set-aside percentage is 15%. 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.
2. This requirement does not apply to residential expansions, additions,
renovations, replacement, or any other type of residential development
that does not result in a net increase in the number of dwellings
of five or more.
3. Furthermore, this section shall not apply to developments containing
four or fewer dwelling units. 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 five or more.
B. Phasing. Inclusionary developments shall be subject to the following
schedule, except where an alternate phasing schedule has been incorporated
into a development or redevelopment agreement:
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. Fractional Units. If 20% of the total number of units in a development
results in a fraction or decimal, the developer shall be required
to provide an additional affordable unit on site. Example: An eight-unit
development requiring an affordable housing set-aside of 1.6 units
is proposed. The developer is required to provide two on-site affordable
units.
D. Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
E. 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. Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
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. Low/moderate split and bedroom distribution of affordable housing
units.
1. 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. In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units. If there
is only one affordable unit, it must be a low-income unit.
3. The Borough Housing Element and Fair Share Plan requires that 13%
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. While this requirement applies
to the entirety of the Borough's affordable housing percentage and
it may not be imposed on each project individually, its application
to each project will be evaluated on a case-by-case basis and may
be imposed as a requirement of a newly constructed development.
4. Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
a.
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
b.
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
c.
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
d.
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
B. Accessibility requirements:
1. 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.
2. 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.
An adaptable toilet and bathing facility on the first floor;
b.
An adaptable kitchen on the first floor;
c.
An interior accessible route of travel on the first floor;
d.
An interior accessible route of travel shall not be required
between stories within an individual unit;
e.
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
f.
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Borough of Monmouth Beach has collected
funds from the developer sufficient to make 10% of the adaptable entrances
in the development accessible;
(1)
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.
(2)
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.
(3)
The funds deposited under Subsection
B, above, shall be used by the Borough of Monmouth Beach 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.
(4)
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.
(5)
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.
(6)
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.
C. Maximum rents and sales prices.
1. In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC utilizing the regional income limits established by the New Jersey
Department of Community Affairs (DCA) or other agency as required
by the Court.
2. The maximum rent for restricted rental units within each affordable
development and the average rent for restricted low- and moderate-income
units shall be calculated in accordance with UHAC regulations.
3. 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.
4. The maximum sales price of restricted ownership units within each
affordable development shall be calculated in accordance with UHAC
regulations, and each affordable development must achieve an affordability
average which shall be calculated in accordance with UHAC regulations.
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. 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.
A studio shall be affordable to a one-person household;
b.
A one-bedroom unit shall be affordable to a one-and-one-half
person household;
c.
A two-bedroom unit shall be affordable to a three-person household;
d.
A three-bedroom unit shall be affordable to a four-and-one-half
person household; and
e.
A four-bedroom unit shall be affordable to a six-person household.
6. 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:
a.
A studio shall be affordable to a one-person household;
b.
A one-bedroom unit shall be affordable to a one-and-one-half
person household; and
c.
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
7. The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees 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. The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
9. 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.
The rent of low- and moderate-income units may be increased
annually based on the percentage increase in the Housing Consumer
Price Index for the United States. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low- income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
11.
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 DCA for its Section 8 program.
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:
A. The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
B. The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
C. 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.
D. 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.
The Borough shall use revenues collected in the affordable housing
trust fund in accordance with N.J.A.C. 5:93-8.16.
The Borough shall submit a monitoring report to the Court as
set forth in its settlement agreement with Fair Share Housing Center.
The Borough shall submit to the Court a spending plan for the
development fees collected by it prior to the expiration of its judgment
of compliance. Plans to spend development fees shall consist of the
following information:
A. A projection of revenues anticipated from imposing
fees on development, based on historic activity;
B. A description of the administrative mechanism that
the Borough will use to collect and distribute revenues;
C. A description of the anticipated use of all development
fees pursuant to N.J.A.C. 5:93-8.16;
D. A schedule for the expenditure of all development
fees and payments in lieu of constructing affordable housing units
on site;
E. A schedule for the creation or rehabilitation of housing
units;
F. In the event the Borough envisions being responsible
for public sector or nonprofit construction of housing, a pro-forma
statement of the anticipated costs and revenues associated with the
development; and
G. The manner through which the Borough will address
any expected or unexpected shortfall if the anticipated revenues from
development fees are not sufficient to implement the plan.