Township of Jackson, NJ Article XIII Affordable Housing

[Added 4-26-1993 by Ord. No. 15-93; amended 3-17-1994 by Ord. No. 6-94; 4-6-2004 by Ord. No. 13-04; 9-12-2006 by Ord. No. 21-06; 11-21-2017 by Ord. No. 23-17]

§ 244-222 Intent.

A. It is the intent of this article to regulate the development and management of low- and moderate-income housing units constructed in compliance with the Housing Element of the Master Plan of the Township of Jackson.

B. Applicability. The provisions of this article shall apply:

(1) To all affordable housing developments and affordable housing units that currently exist within Jackson Township;

(2) To all affordable housing developments and affordable housing units that are proposed to be created pursuant to the Jackson Township Housing Plan Element and Fair Share Plan;

(3) To all unanticipated future developments that will provide affordable housing for low- and moderate-income households; and

(4) To any property in Jackson Township that is currently zoned for nonresidential uses and that is subsequently rezoned for multifamily residential purposes, and to all approvals for multifamily residential development granted by the Jackson Planning Board or Zoning Board of Adjustment, including approvals of use or density variances, site plans, or subdivisions, and redevelopment projects subject to a redevelopment plan adopted by the Township governing body governing the development and redevelopment of designated areas in need of rehabilitation or areas in need of redevelopment in the Township, including substantial revisions to previously approved developments, where such rezoning, approval or revision results in or increases the number of residential units by five or more units.

§ 244-223 Definitions.

As used in this article, the following terms shall have the meanings indicated:

AFFORDABLE

A sales price or rent level that is within the means of a low- or moderate-income household as defined within N.J.A.C. 5:93-7.4, and, 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 ADMINISTRATOR (AH ADMINISTRATOR)

The entity responsible for administering the affordability controls of some or all units in the affordable housing program for the Township of Jackson to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, to only low- and moderate-income households.

AFFORDABLE HOUSING DEVELOPMENT

A development included in or approved pursuant to the Housing Element and Fair Share Plan or otherwise intended to address the Township's fair share obligation, and includes, but is not limited to, an inclusionary development, a municipal construction project or a one-hundred-percent affordable housing development.

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 wherein the unit is situated are 62 years of age or older; or

B. At least 80% of the units are occupied by one person who is 55 years of age 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.

DEVELOPER'S AFFORDABLE HOUSING PLAN

A plan submitted by the developer and approved by the affordable housing administrator which shall identify the manner in which the developer plans to develop, price, market and restrict the low- and moderate-income dwelling units in accordance with this article.

EXEMPT SALES

Includes the transfer of ownership between husband and wife and transfers of ownership between former spouses as a result of a judicial decree of divorce or a 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 a transfer of ownership by court order.

FAIR MARKET VALUE

The unrestricted price of a low- or moderate-income housing unit if sold at a current real estate market rate.

INCLUSIONARY DEVELOPMENT

A residential housing development in which a percentage of the housing units are reserved for low- and moderate-income households. This term includes, but is not limited to: new construction, the conversion of a nonresidential structure to residential use and the creation of new affordable units through the gut rehabilitation or reconstruction of a vacant residential structure.

LOW-INCOME HOUSING

Housing affordable according to Council on Affordable Housing (COAH) standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household 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 house is located and subject to affordability controls.

MODERATE-INCOME HOUSING

Housing affordable according to Council on Affordable Housing (COAH) standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income of more than 50% but less than 80% of the median gross household income for households of the same size within the housing region in which the house is located and subject to affordability control.

MUNICIPAL HOUSING LIAISON

The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for the Township of Jackson.

PRICE DIFFERENTIAL

The difference between the controlled unit sale price and the fair market value as determined at the date of the proposed contract of sale after reasonable real estate broker fees have been paid.

REPAYMENT CLAUSE

Obligation of a seller exercising the repayment option to pay 95% of the price differential to a municipality at closing for use within the municipal housing plan.

REPAYMENT OPTION

The option of a seller of a low- or moderate-income unit to sell a unit pursuant to N.J.A.C. 5:92-12.7 at a fair market value subject to compliance with the terms of the repayment clause.

SET-ASIDE

The percentage of housing units devoted to low- and moderate-income households within an inclusionary development.

UNIT COMPLETION

The receipt of any temporary or final certificate of occupancy.

VERY-LOW-INCOME HOUSING

Housing affordable according to the Council on Affordable Housing (COAH) standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income of 30% or less of the median gross household income for households of the same size within the housing region in which the house is located and subject to affordability controls.

§ 244-224 Affordable housing sites.

A. Low- and moderate-income housing required.

(1) Developers of the affordable housing (AH) sites, as designated on the Zoning Map of the Township of Jackson, Ocean County, New Jersey, shall be required to set aside the number of affordable units specified in any existing valid approval and in accordance with the Housing Element and Fair Share Plan.

(2) In addition to the set-aside requirements above, the developers of affordable housing (AH) sites shall be subject to the requirements of the underlying zoning of the respective site set forth in Article X.

B. Fee required. Prior to the issuance of a certificate of occupancy for an affordable housing unit, the developer of affordable housing sites shall pay a fee to the Township to offset the costs of the services of the affordable housing (AH) administrator. Said fee shall be the prevailing fees charged by the Affordable Housing Management Service of the New Jersey Department of Community Affairs for such services.

C. Administration of affordable housing program.

(1) Jackson Township is ultimately responsible for administering the affordable housing program, including affordability controls and the affirmative marketing plan in accordance with the regulations of the Council on Affordable Housing pursuant to N.J.A.C. 5:93 et seq. and the New Jersey Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq.

(2) Establishment of Municipal Housing Liaison position and compensation; powers and duties.

(a) Establishment of position of Municipal Housing Liaison. There is hereby established the position of Municipal Housing Liaison for the Township of Jackson.

(b) Subject to the approval of the Council on Affordable Housing (COAH) or the court, the Municipal Housing Liaison shall be appointed by the governing body and may be a full- or part-time municipal employee.

(c) The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township of Jackson, including the following responsibilities which may not be contracted out, exclusive of Subsection C(2)(c)[6], which may be contracted out:

[1] Serving as the Township of Jackson's primary point of contact for all inquiries from the state, affordable housing providers, affordable housing administrators, and interested households.

[2] Monitoring the status of all restricted units in the Township of Jackson's Fair Share Plan;

[3] Compiling, verifying, and submitting annual reports as required by COAH or the court;

[4] Coordinating meetings with affordable housing providers and affordable housing administrators, as applicable;

[5] Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH or the court;

[6] If applicable, serving as the affordable housing administrator for some or all of the restricted units in the Township of Jackson as described in Subsection C(3) below.

(d) Jackson Township will contract with or authorize a consultant, authority, government, or any other agency charged by the governing body, which entity shall have the responsibility for administering the affordable housing program of the Township of Jackson, except for those responsibilities that may not be contracted out pursuant to Subsection C(2)(c) above. If the Township of Jackson contracts with one or more affordable housing administrator(s) to administer some or all of the affordable housing program, including the affordability controls and/or the affirmative marketing plan, the Municipal Housing Liaison shall supervise the contracting affordable housing administrator.

(e) Compensation. Compensation shall be fixed by the governing body at the time of the appointment of the Municipal Housing Liaison.

(3) Affordable housing administrator (AH administrator). The Township of Jackson intends to contract with an affordable housing administrator to administer the sale and rental of all new affordable housing. The AH administrator will oversee and administer income qualification of low- and moderate-income households; place income-eligible households in low- and moderate-income units upon initial occupancy; place income-eligible households in low- and moderate-income units as they become available during the period of affordability controls and enforce the terms of the required deed restrictions and mortgage loans. The AH administrator will specifically administer and implement:

(a) An administrative plan and program, and related monitoring and reporting requirements as outlined in N.J.A.C. 5:80-26.15 et seq. and N.J.A.C. 5:93 et seq.

(b) A plan for certifying and verifying the income of low- and moderate-income households per N.J.A.C. 5:80-26.16.

(c) Procedures to assure that low- and moderate-income units are initially sold or rented to eligible households and are thereafter similarly resold and rerented during the period while there are affordability controls as per N.J.A.C. 5:80-26 et seq.

(d) The requirement that all newly constructed low- and moderate-income sale or rental units contain deed restrictions with appropriate mortgage liens as set forth in the appendixes in N.J.A.C. 5:80-26 et seq.

(e) The several sales/purchase options authorized under N.J.A.C. 5:80-26 et seq., except that the Township retains the right to determine by resolution whether or not to prohibit, as authorized under N.J.A.C. 5:80-26 et seq., the exercise of the repayment option.

(f) The regulations determining:

[1] Whether installed capital improvements will authorize an increase in the maximum sales price; and

[2] Which items of property may be included in the sales price as per N.J.A.C. 5:80-26.9.

(4) Jackson Township may delegate the administration of duties named in § 244-225E to the Department of Community Affairs Affordable Housing Management Service (AHMS), a nonprofit organization or another qualified entity. Such delegation must be approved by the Jackson Township Committee.

§ 244-225 Low- and moderate-income housing requirements.

A. Building permits. No building permit(s) shall be issued for any development within an affordable housing (AH) site without the submission and approval of a developer's affordable housing plan by the AH administrator.

B. Bedroom distribution.

(1) Non-age-restricted AH sites. Affordable housing units within AH sites that are not restricted to senior citizens shall have the following distribution of bedroom types:

(a) At a minimum, 30% of all low- and moderate-income units shall be two-bedroom units;

(b) At a minimum, 20% of low- and moderate-income units shall be three-bedroom units; and

(c) No more than 20% of all low- and moderate-income units may be one-bedroom and efficiency units.

(d) The remainder, if any, may be allocated as two-bedroom or three-bedroom units at the discretion of the developer.

(2) Age-restricted AH sites. Low- and moderate-income units restricted to senior citizens may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of senior citizen low- and moderate-income units within the inclusionary development. The standards can be met by creating all one-bedroom units or by creating a two-bedroom unit for each efficiency unit.

C. Unit location.

(1) Affordable housing units shall be situated on the development tract in locations no less desirable than market-priced dwelling units within the development and shall be equally accessible to common open space, community facilities and shopping facilities.

(2) Rental units may be concentrated for ownership and management unit reasons.

(3) The exterior design of the low- and moderate-income housing units shall be harmonious in scale, texture, and materials with the market-priced units on the tract.

(4) Deed restrictions. Developers of housing units for low- and moderate-income households shall enter into a written agreement, binding on all successors-in-interest, in accordance with current COAH regulations or court requirements for resale/rental control, at the time of sale, resale, rental or rerental, regardless of the availability of federal, state, county or Township subsidy programs.

(5) In inclusionary developments, to the extent possible, low- and moderate-income units shall be integrated with the market units.

D. Phasing. Approval of the developer's affordable housing plan shall be contingent upon the development, whether developed in one stage or in two or more stages, meeting the following phasing schedule:

Minimum Percentage of Low- and Moderate-Income Units Completed	Percentage of Marketing Housing Units Completed
0%	25%
10%	25%, plus 1 unit
50%	50%
75%	75%
100%	90%
—	100%

E. Occupancy selection.

(1) The AH administrator shall designate an application period during which applications to purchase or rent affordable housing units will be accepted.

(2) Applications shall be accepted only if submitted on an application form prepared and/or approved by the AH administrator. Applications shall be completely filled out and notarized. Knowingly or intentionally making any false statement on a form shall be grounds for disqualifying an applicant even if the applicant is otherwise eligible. The following information shall be required:

(a) A copy of IRS Form 1040A or 1040EZ (tax computation form) for each of the three years prior to the date of the application.

(b) A letter from all employers stating present annual income or four consecutive pay stubs dated within 120 days of the interview date.

(c) A letter or appropriate reporting form verifying benefits, including but not limited to social security or pension.

(d) A letter or appropriate reporting form verifying any other sources of income claimed by the applicant household.

(e) Reports that verify income from assets to be submitted by banks or other financial institutions managing trust funds, money market accounts, stocks or bonds.

(f) Reports that verify assets that do not earn regular income, such as real estate and savings with delayed earnings provisions.

(3) The AH administrator shall determine whether the applicant meets the income and other requirements established in these regulations. The review process for a prospective purchaser shall involve a credit background report; to be an eligible applicant, the applicant shall have an acceptable credit history such that there is a realistic possibility that he will be approved for a mortgage.

(4) The AH administrator will determine which eligible applicants shall be offered the opportunity to purchase or rent affordable housing units. Selection from among the eligible applicants shall be on a random basis, subject only to that size of household priority schedule established in Subsection E(6) below.

(5) In the event that an application is determined by the AH administrator to be ineligible for a low- or moderate-income unit, the applicant may request reconsideration by the AH administrator. Such request shall be made in writing within 10 days of receipt of notice of ineligibility by the applicant. The AH administrator shall make a new eligibility determination and provide the applicant with specific findings as to the basis for such eligibility determination.

(6) Occupancy standards.

(a) In referring certified households to specific restricted units, the administrative agent shall, to the extent feasible and without causing an undue delay in the occupancy of a unit, strive to:

[1] Provide an occupant for each bedroom;

[2] Provide children of different sexes with separate bedrooms;

[3] Provide separate bedrooms for parents and children; and

[4] Prevent more than two persons from occupying a single bedroom.

(7) Waiting list. The AH administrator may establish a waiting list for the remaining eligible applicants. After all the units are occupied, the AH administrator may choose to accept new applications. If an applicant is deemed eligible, the applicant shall be placed on the waiting list at the bottom of the particular priority classification for which the applicant qualifies. The AH administrator shall periodically recertify the applicants on the waiting list to ensure that the list remains current and that the applicants are still qualified for the units to which they applied.

F. Control periods for restricted ownership units and enforcement mechanisms.

(1) 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 article for a period of at least 30 years, until Jackson Township takes action to release the unit from such requirements; prior to such action, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.

(2) The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.

(3) 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 AH administrator 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 without the restrictions in place.

(4) At the time of the initial sale of the unit, the initial purchaser shall execute and deliver to the AH administrator 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 restrictions set forth in this article, 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.

(5) The affordability controls set forth in this article shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.

(6) 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 following the removal of the restrictions provided under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.

G. Price restrictions for restricted ownership units, homeowners' association fees and resale prices.

(1) 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 AH administrator;

(b) The AH administrator shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards;

(c) The master deeds of inclusionary developments shall provide no distinction between the condominium or homeowners' association fees and special assessments paid by low- and moderate-income purchasers and those paid by market purchasers; and

(d) The owners of restricted ownership units may apply to the AH administrator to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom.

H. Buyer income eligibility.

(1) Buyer income eligibility for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such that low-income ownership units shall be reserved for households with a gross household income less than or equal to 50% of median income and moderate-income ownership units shall be reserved for households with a gross household income less than 80% of median income.

(2) Notwithstanding the foregoing, however, the AH administrator may, upon approval by the Township Committee, and subject to the court's approval, permit moderate-income purchasers to buy low-income units in housing markets if the AH administrator determines that there is an insufficient number of eligible low-income purchasers to permit prompt occupancy of the units. All such low-income units to be sold to moderate-income households shall retain the required pricing and pricing restrictions for low-income units.

(3) A certified household that purchases a restricted ownership unit must occupy it as the certified household's principal residence and shall not lease the unit; provided, however, that the AH administrator may permit the owner of a restricted ownership unit, upon application and a showing of hardship, to lease the restricted unit to another certified household for a period not to exceed one year.

(4) The AH administrator 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, homeowner and private mortgage insurance and condominium or homeowners' association fees, as applicable) does not exceed 33% of the household's eligible monthly income.

I. Limitations on indebtedness secured by ownership unit, subordination.

(1) Prior to incurring any indebtedness to be secured by a restricted ownership unit, the owner shall apply to the AH administrator for a determination in writing that the proposed indebtedness complies with the provisions of this section, and the AH administrator shall issue such determination prior to the owner incurring such indebtedness.

(2) With the exception of first purchase money mortgages, 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 the unit, as such price is determined by the AH administrator in accordance with N.J.A.C. 5:80-26.6(b).

J. Capital improvements to ownership units.

(1) The owners of restricted ownership units may apply to the AH administrator to increase the maximum sales price for the unit on the basis of capital improvements made since the purchase of the unit. Eligible capital improvements shall be those that render the unit suitable for a larger household or that add an additional bathroom. In no event shall the maximum sales price of an improved housing unit exceed the limits of affordability for the larger household.

(2) Upon the resale of a restricted ownership unit, all items of property that are permanently affixed to the unit or were included when the unit was initially restricted (e.g., refrigerator, range, washer, dryer, dishwasher, wall-to-wall carpeting) shall be included in the maximum allowable resale price. Other items may be sold to the purchaser at a reasonable price that has been approved by the AH administrator at the time of the signing of the agreement to purchase. The purchase of central air conditioning installed subsequent to the initial sale of the unit and not included in the base price may be made a condition of the unit resale provided the price, which shall be subject to ten-year, straight-line depreciation, has been approved by the AH administrator. Unless otherwise approved by the AH administrator, the purchase of any property other than central air conditioning shall not be made a condition of the unit resale. The owner and the purchaser must personally certify at the time of closing that no unapproved transfer of funds for the purpose of selling and receiving property has taken place at the time of or as a condition of resale.

K. Control periods for restricted rental units.

(1) 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 article for a period of at least 30 years, until Jackson Township takes action to release the unit from such requirements. Prior to such action, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.

(2) Deeds of all real property that include restricted rental units shall contain deed restriction language. 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 Ocean County. A copy of the filed document shall be provided to the AH administrator within 30 days of the receipt of a certificate of occupancy.

(3) A restricted rental unit shall remain subject to the affordability controls of this article despite the occurrence of any of the following events:

(a) Sublease or assignment of the lease of the unit;

(b) Sale or other voluntary transfer of the ownership of the unit; or

(c) The entry and enforcement of any judgment of foreclosure on the property containing the unit.

L. Rent restrictions for rental units; leases.

(1) A written lease shall be required for all restricted rental units, and tenants shall be responsible for security deposits and the full amount of the rent as stated on the lease. A copy of the current lease for each restricted rental unit shall be provided to the AH administrator.

(2) No additional fees or charges shall be added to the approved rent (except, in the case of units in an assisted living residence, to cover the customary charges for food and services) without the express written approval of the AH administrator.

(3) Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable restricted unit and shall be payable to the AH administrator to be applied to the costs of administering the controls applicable to the unit as set forth in this article.

(4) No rent control ordinance or other pricing restriction shall be applicable to either the market units or the affordable units in any development in which at least 15% of the total number of dwelling units are restricted rental units in compliance with this article.

M. Tenant income eligibility.

(1) 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:

(a) Very-low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of median income;

(b) Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income; and

(c) Moderate-income rental units shall be reserved for households with a gross household income less than 80% of median income.

(2) The AH administrator shall certify a household as eligible for a restricted rental unit when the household is a very-low-income household, 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:

(a) 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;

(b) 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;

(c) The household is currently in substandard or overcrowded living conditions;

(d) The household documents the existence of assets with which the household proposes to supplement the rent payments; or

(e) The household documents reliable anticipated third-party assistance from an outside source such as a family member in a form acceptable to the AH administrator and the owner of the unit.

(3) The applicant shall file documentation sufficient to establish the existence of the circumstances enumerated in this subsection with the AH administrator, who shall counsel the household on budgeting.

N. Maximum rents and sales prices.

(1) In establishing rents and sales prices of affordable housing units, the AH administrator shall follow the procedures set forth in UHAC, utilizing the regional income limits established by COAH or a successor entity.

(2) 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 rental units shall be affordable to households earning no more than 52% of median income.

(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, provided that at least 10% of all low- and moderate-income rental units shall be affordable to very-low-income households earning 30% or less of the regional median household income.

(4) 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 sales prices for each bedroom type, and low-income ownership units must be available for at least two different sales prices for each bedroom type.

(5) In determining the initial sales prices and rent levels for compliance with the affordability average requirements for restricted units other than assisted living facilities and age-restricted developments, 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 sales prices and rents for compliance with the affordability average requirements for restricted units in assisted living facilities and age-restricted developments, 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 homeowners' association fees do not exceed 28% of the eligible monthly income of the appropriate size household as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(8) 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 size household, including an allowance for tenant-paid utilities, as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.

(9) Income limits for all units that are part of the Township's 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 Township annually within 30 days of the publication of determinations of median income by HUD as follows:

(a) The income limit for a moderate-income unit for a household of four shall be 80% of the HUD determination of the median income for the Monmouth-Ocean, NJ HUD Metro FMR Area 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 median income for the Monmouth-Ocean, NJ HUD Metro FMR Area for a family of four. The income limit for a very-low-income unit for a household of four shall be 30% of the HUD determination of the median income for the Monmouth-Ocean, NJ HUD Metro FMR Area 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 the previous year.

(b) The income limits are based on carrying out the process in Subsection N(9)(a) based on HUD determination of median income for the current fiscal year and shall be utilized by the Township until new income limits are available.

(10) 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 by the Council:

(a) 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 determined pursuant to Subsection N(9). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.

(b) The rents of very-low-, low- and moderate-income units may be increased annually based on the permitted percentage increase in the housing consumer price index for the southern New Jersey 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.

O. Requirements for affordable housing. Developments which include affordable housing units shall be subject to the following provisions:

(1) In accordance with N.J.S.A. 52:27D-329.1 (P.L. 2008, C. 46), at least 13% of the affordable units provided within the Township shall be reserved for very-low-income households, i.e., households earning 30% or less of the median income, and of that amount at least 50% shall be reserved for very-low-income families (i.e., non-age-restricted and not reserved for special needs populations). For developments with eight or more affordable housing units on site, at least 13% of all low- and moderate-income units shall be affordable to households earning no more than 30% of median income. A minimum of 50% of these units shall be reserved for very-low-income families.

(2) Age restriction. The sales and rentals of not more than 25% of the affordable housing units constructed within the Township may be age-restricted to senior citizens as defined by and in accordance with the Federal Fair Housing Act and as regulated by N.J.A.C. 5:92-14, provided that no more than 25% of the total affordable housing units constructed within the Township shall be age-restricted. A request to age restrict housing units may only be granted after the Planning Board or Board of Adjustment has received the consent of the Township Committee. In designing its project, the applicant may propose constructing the senior-citizen-restricted affordable units in the same building or buildings in order to maximize the potential of preserving a more-tranquil lifestyle for the senior citizen resident; and to the foregoing extent, the requirement of integration of the affordable units with conventional units is modified.

(3) Low/moderate split and bedroom distribution of affordable housing units.

(a) 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.

(b) In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units.

(4) Utilities.

(a) Affordable units shall utilize the same type of heating source as market units within an inclusionary development.

(b) Tenant-paid utilities included in the utility allowance shall be set forth in the lease and shall be consistent with the utility allowance approved by the DCA for its Section 8 program.

(5) Accessibility requirements.

(a) The first floor of all restricted townhouse dwelling units and all restricted units in all other multistory buildings shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7, and the following:

[1] 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; and

[b] An adaptable kitchen on the first floor; and

[c] An interior accessible route of travel on the first floor; and

[d] 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

[e] If not all of the foregoing requirements in this subsection can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the foregoing requirements in this subsection have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; 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 Jackson Township has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible:

[i] 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.

[ii] To this end, the builder of restricted units shall deposit funds within the Jackson Township Affordable Housing Trust Fund sufficient to install accessible entrances in 10% of the affordable units that have been constructed with adaptable entrances.

[iii] The funds deposited under the terms of this subsection shall be used by Jackson Township for the sole purpose of making the adaptable entrance of an 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.

[iv] The developer of the restricted units shall submit a design plan and cost estimate to the Construction Official of Jackson Township for the conversion of adaptable to accessible entrances.

[v] Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meets 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 Jackson Township Affordable Housing Trust Fund.

[2] 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.

P. Alternative living arrangements.

(1) The administration of an alternative living arrangement shall be in compliance with N.J.A.C. 5:93-5.8 and the UHAC, with the following exceptions:

(a) Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that the units or bedrooms may be affirmatively marketed by the provider in accordance with an alternative plan approved by the court;

(b) Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).

(2) With the exception of units established with capital funding through a twenty-year operating contract with the Department of Human Services, Division of Developmental Disabilities, alternative living arrangements shall have at least thirty-year controls on affordability in accordance with the UHAC, unless an alternative commitment is approved by the court.

(3) The service provider for the alternative living arrangement shall act as the administrative agent for the purposes of administering the affirmative marketing and affordability requirements for the alternative living arrangement.

Q. Enforcement of affordable housing regulations.

(1) 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.

(2) 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:

(a) 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:

[1] Pursuant to N.J.S.A. 40:49-5, a fine of not more than $2,000 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.

[2] 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 Jackson Township Affordable Housing Trust Fund of the gross amount of rent illegally collected.

[3] 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.

(b) 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.

(3) 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.

(4) 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.

(5) 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.

(6) 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.

(7) 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.

(8) 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.

§ 244-226 (Reserved)