Borough of Rockleigh, NJ
Bergen County
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Table of Contents
Table of Contents
[Ord. No. 2009-15 § 1]
a. 
This chapter is intended to assure that low- and moderate-income units ("affordable units") are created with controls on affordability over time and that low- and moderate-income households shall occupy these units. This chapter shall apply except where inconsistent with applicable law.
b. 
The Rockleigh Planning Board has adopted a Housing Element and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1 et seq. The Fair Share Plan has been endorsed by the Governing Body. The Fair Share Plan describes the ways Rockleigh shall address its fair share for low- and moderate-income housing as determined by the Council on Affordable Housing (COAH) and documented in the Housing Element.
c. 
This chapter implements and incorporates the Fair Share Plan and addresses the requirements of N.J.A.C. 5:97, as may be amended and supplemented.
d. 
The Borough of Rockleigh shall file monitoring reports with COAH in accordance with N.J.A.C. 5:96, tracking the status of the implementation of the Housing Element and Fair Share Plan. Any plan evaluation report of the Housing Element and Fair Share Plan and monitoring prepared by COAH in accordance with N.J.A.C. 5:96 shall be available to the public at the Rockleigh Municipal Building, Municipal Clerk's Office, 26 Rockleigh Road, Rockleigh, New Jersey, or from COAH at 101 South Broad Street, Trenton, New Jersey and on COAH's website, www.nj.gov/dca/affiliates/coah.
[Ord. No. 2009-15 § 2; Ord. No. 2016-7 § 1]
The following terms when used in this chapter shall have the meanings given in this section:
ACCESSORY APARTMENT
Shall mean 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
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.).
ADAPTABLE
Shall mean constructed in compliance with the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
Shall mean the entity responsible for the administration of affordable units in accordance with this section, 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
Shall mean 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
Shall mean the average percentage of median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households.
AFFORDABLE
Shall mean 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
Shall mean a housing development all or a portion of which consists of restricted units.
AFFORDABLE HOUSING DEVELOPMENT
Shall mean 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 (100%) percent affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Shall mean any mechanism in a municipal Fair Share Plan prepared or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
Shall mean 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.
AGENCY
Shall mean 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
Shall mean 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 sixty-two (62) years or older; or 2) at least eighty (80%) percent of the units are occupied by one (1) person that is fifty-five (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.
ALTERNATIVE LIVING ARRANGEMENT
Shall mean a structure in which households live in distinct bedrooms, yet share kitchen and plumbing facilities, central heat and common areas. Alternative living arrangements include, but are not limited to: transitional facilities for the homeless; Class A, B, C, D and E boarding homes as regulated by the State of New Jersey Department of Community Affairs; residential health care facilities as regulated by the New Jersey Department of Health; group homes for the developmentally disabled and mentally ill as licensed and/or regulated by the New Jersey Department of Human Services; and congregate living arrangements.
[Ord. No. 2016-7 § 1]
ASSISTED LIVING RESIDENCE
Shall mean 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 (4) or more adult persons unrelated to the proprietor and that offers units containing, at a minimum, one unfinished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.
CERTIFIED HOUSEHOLD
Shall mean a household that has been certified by an Administrative Agent as a low-income household or moderate-income household.
COAH
Shall mean 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.).
DCA
Shall mean the State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
Shall mean 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.
DEVELOPER
Shall mean 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
Shall mean the division of a parcel of land into two (2) 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.
INCLUSIONARY DEVELOPMENT
Shall mean 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.
LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household income equal to fifty (50%) percent or less of the median household income.
LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
Shall mean 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
Shall mean housing not restricted to low- and moderate-income households that may sell or rent at any price.
MEDIAN INCOME
Shall mean the median income by household size for the applicable county, as adopted annually by COAH.
MODERATE-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household income in excess of fifty (50%) percent but less than eighty (80%) percent of the median household income.
MODERATE-INCOME UNIT
Shall mean a restricted unit that is affordable to a moderate-income household.
NON-EXEMPT SALE
Shall mean 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
Shall mean 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).
REGIONAL ASSET LIMIT
Shall mean the maximum housing value in each housing region affordable to a four-person household with an income of eighty (80%) percent of the regional median as defined by COAH's adopted Regional Income Limits published annually by COAH.
REHABILITATION
Shall mean the repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
RENT
Shall mean 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
Shall mean 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
Shall mean the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.
VERY LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household income equal to thirty (30%) percent or less of the median household income.
VERY LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a very low-income household.
WEATHERIZATION
Shall mean 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.
[Ord. No. 2009-19 § 3; Ord. No. 2016-7 §§ 2-5]
The Borough of Rockleigh has determined that it will use the following mechanisms to satisfy its affordable housing obligations:
a. 
Accessory Apartment Program.
1. 
All accessory apartments shall meet the following conditions:
(a) 
Accessory apartments are permitted by the Zoning Ordinance for various zoning districts, provided the units are affordable to very low- and moderate-income households.
[Ord. No. 2016-7 § 2]
(b) 
Accessory apartments shall comply with all applicable statutes and regulations of the State of New Jersey in addition to all building codes.
(c) 
At the time of initial occupancy of the unit and for ten (10) years thereafter pursuant to N.J.A.C. 5:97-6.8c(1), the accessory apartment shall be rented only to a household which is either a very low or moderate-income household.
[Ord. No. 2016-7 § 3]
(d) 
Rents of accessory apartments shall be affordable to very low or moderate-income households as per COAH and UHAC regulations, or such other regulations as may be in force and in effect under applicable law.
[Ord. No. 2016-7 § 3]
(e) 
There shall be a recorded deed or declaration of covenants and restrictions applied to the property upon which the accessory apartment is located running with the land and limiting its subsequent rental or sale of the unit and the accessory apartment.
(f) 
The appropriate utility authority must certify that there is water and sewer infrastructure with sufficient capacity to serve the proposed accessory apartment. Where the proposed location is served by an individual well and/or septic system, the additional capacity necessitated by the new unit must meet the appropriate NJDEP standards.
(g) 
The Borough of Rockleigh accessory apartment program shall not restrict the number of bedrooms in any accessory apartment. In addition the Borough shall strive and use its best efforts so that an accessory apartment shall have either two (2) or three (3) bedrooms.
[Ord. No. 2016-7 § 3]
(h) 
No accessory apartment created as a result of this section or these regulations shall exceed the gross floor area of the existing principal dwelling on the lot.
(i) 
Municipal building permit fees shall be waived in all cases involving affordable accessory apartment development under this section. An annual license and inspection fee, if required, shall be paid by unit owners.
2. 
The maximum number of creditable accessory apartments shall be five (5) units as may be approved by the Superior Court of New Jersey in a Judgment of Repose.
[Ord. No. 2016-7 § 4]
3. 
The Borough of Rockleigh shall designate an administrative entity to administer the accessory apartment program that shall have the following responsibilities:
(a) 
The Administrative Agent shall administer the accessory apartment program, including advertising, income qualifying prospective renters, setting rents and annual rent increases, maintaining a waiting list, distributing the subsidy, securing certificates of occupancy, qualifying properties, handling application forms, filing deed restrictions and monitoring reports and affirmatively marketing the affordable accessory apartment program in accordance with the UHAC.
(b) 
The administrative entity shall only deny an application for an accessory apartment if the project is not in conformance with COAH's requirements and/or the provisions of this section. All denials shall be in writing with the reasons clearly stated.
(c) 
In accordance with COAH requirements, or any successor agency or entity, the Borough of Rockleigh shall provide at least thirty-five thousand ($35,000.00) dollars per unit to subsidize the creation of very-low income accessory apartment or twenty thousand ($20,000.00) dollars per unit to subsidize the creation of each moderate-income accessory apartment.
[Ord. No. 2016-7 § 5]
4. 
Property owners wishing to apply to create an accessory apartment shall submit to the administrative entity.
(a) 
A sketch of floor plan(s) showing the location, size and relationship of both the accessory apartment and the primary dwelling within the building or in another structure;
(b) 
Rough elevations showing the modifications of any exterior building facade to which changes are proposed; and
(c) 
A site development sketch showing the location of the existing dwelling and other existing buildings; all property lines; proposed addition, if any, along with the minimum building setback lines; the required parking spaces for both dwelling units; and any manmade conditions which might affect construction.
[Ord. No. 2009-15 § 11; Ord. No. 2016-7 §§ 6, 7]
The following general guidelines apply to all newly constructed developments that contain low- and moderate-income household 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 fifty (50%) percent of the restricted units within each bedroom distribution shall be low-income units.
3. 
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 twenty (20%) percent of the total low- and moderate-income units;
(b) 
At least thirty (30%) percent of all low- and moderate-income units shall be two-bedroom units;
(c) 
At least twenty (20%) percent 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.
4. 
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.
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 and N.J.A.C. 5:97-3.14.
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 (1) 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 and N.J.A.C. 5:97-3.14, or evidence that the Borough has collected funds from the developer sufficient to make ten (10%) percent 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 building of restricted units shall deposit funds within the Borough of Rockleigh's affordable housing unit trust fund sufficient to install accessible entrances in ten (10%) percent of the affordable units that have been constructed with adaptable entrances.
(3) 
The funds deposited under paragraph (1) above shall be used by Rockleigh for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with 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 of Rockleigh.
(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 N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion is reasonable, payment shall be made to the Borough of Rockleigh's affordable housing trust fund in care of the Chief Financial Officer who shall ensure that the funds are 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 and N.J.A.C. 5:97-3.14.
c. 
Maximum Rents and Sales Prices.
1. 
In estimating rents and sales prices of affordable units, the administrative agent shall follow the procedures set forth in UHAC or any successor agency or entity, utilizing the regional income limits established by COAH or any successor agency.
[Ord. No. 2016-07 § 6]
2. 
The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than sixty (60%) percent of median income, and the average rent for restricted low- and moderate-income units shall be affordable to households earning no more than fifty-two (52%) percent of median income.
3. 
The developers and/or municipal sponsors of restricted rental units shall establish at least one (1) rent for each bedroom type for both low- and moderate-income units.
(a) 
At least thirteen (13%) percent of all low- and moderate-income rental units shall be affordable to households earning no more than thirty (30%) percent of median income.
[Ord. No. 2016-07 § 7]
**Note: N.J.S.A. 52:27D-329.1 (P.L. 2008, c. 46) includes the requirement that all municipal fair share plans provide for the reservation of at least thirteen (13%) percent of the affordable units for very low-income households., i.e. households earning thirty (30%) percent or less of the median income. The new statute states that the requirement is not project-specific. Each municipality's version of this section must reflect the determinations made in the Fair Share Plan as to the percentage of units necessary for very low-income units in rental projects. Additional incentives to subsidize the creation of affordable housing available to very low-income households may be included in the zoning section of this Code or specified in a developer's or redeveloper's agreement.
4. 
The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than seventy (70%) percent of median income and each affordable development must achieve an affordability average of fifty-five (55%) percent for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three (3) different prices for each bedroom type, and low-income ownership units must be available for at least two (2) 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 (2) 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 ninety-five (95%) percent 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 twenty-eight (28%) percent 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 thirty (30%) percent of the eligibility 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 nine (9%) percent in any one (1) 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.
The following general guidelines apply to all developments that contain low- and moderate-income housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.
[Ord. No. 2009-15 § 5; Ord. No. 2016-7 § 8]
a. 
Rockleigh shall adopt by resolution an Affirmative Marketing Plan, subject to approval of COAH, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
b. 
The Affirmative Marketing Plan is a regional 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 familial 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 that region. It is a continuing program that directs all marketing activities toward COAH Housing Region 6 and covers the period of deed restriction.
c. 
The Affirmative Marketing Plan shall provide a regional preference for all households that live and/or work in COAH Housing Region 1 comprised of Bergen, Hudson, Passaic and Sussex.
[Ord. No. 2016-7 § 8]
d. 
The Administrative Agent designated by the Borough of Rockleigh shall assure the affirmative marketing of all affordable units consistent with the Affirmative Marketing Plan for the municipality.
e. 
In implementing the Affirmative Marketing Plan, the Administrative Agent shall provide a list of counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law.
f. 
The affirmative marketing process for available affordable units shall begin at least four (4) months prior to the expected date of occupancy.
g. 
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 Rockleigh.
[Ord. No. 2009-15 § 6]
a. 
In referring certified households to specific restricted units, to the extent feasible, and without causing an undue delay in occupying the unit, the Administrative Agent shall strive to:
1. 
Provide an occupant for each bedroom;
2. 
Provide children of different sex with separate bedrooms; and
3. 
Prevent more than two (2) persons from occupying a single bedroom.
b. 
Additional provisions related to occupancy standards (if any) shall be provided in the municipal Operating Manual.
[Ord. No. 2009-15 § 7]
a. 
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 section until the Borough of Rockleigh elects to release the unit from such requirements however, and prior to such an election, 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, for at least thirty (30) years.
b. 
The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.
c. 
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.
d. 
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 non-exempt sale after the unit's release from the requirements of this section, 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.
e. 
The affordability controls set forth in this section shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.
f. 
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.
[Ord. No. 2009-15 § 10]
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 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.
[Ord. No. 2009-15 § 11]
a. 
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 fifty (50%) percent of median income and moderate-income ownership units shall be reserved for households with a gross household income less than eighty (80%) percent of median income.
b. 
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, homeowner and private mortgage insurance and condominium or homeowner association fees, as applicable) does not exceed thirty-three (33%) percent of the household's certified monthly income.
[Ord. No. 2009-15 § 10]
a. 
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.
b. 
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 ninety-five (95%) percent 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).
[Ord. No. 2009-15 § 11]
a. 
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 section until the Borough of Rockleigh 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, as may be amended and supplemented, for at least thirty (30) years.
b. 
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 the County of Bergen. A copy of the filed document shall be provided to the Administrative Agent within thirty (30) days of the receipt of a Certificate of Occupancy.
c. 
A restricted rental unit shall remain subject to the affordability controls of this section, despite the occurrence of any of the following events:
1. 
Sublease or assignment of the lease of the unit;
2. 
Sale or other voluntary transfer of the ownership of the unit; or
3. 
The entry and enforcement of any judgment of foreclosure.
[Ord. No. 2009-15 § 12]
a. 
A written lease shall be required for all restricted rental units, except for units in an assisted living residence, 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 Administrative Agent.
b. 
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 Administrative Agent.
c. 
Application fees (including the charge for any credit check) shall not exceed five (5%) percent of the monthly rent of the applicable restricted unit and shall be payable to the Administrative Agent to be applied to the costs of administering the controls applicable to the unit as set forth in this section.
[Ord. No. 2009-15 § 13]
a. 
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:
1. 
Very low-income rental units shall be reserved for households with a gross household income less than or equal to thirty (30%) percent of median income.
2. 
Low-income rental units shall be reserved for households with a gross household income less than or equal to fifty (50%) percent of median income.
3. 
Moderate-income rental units, shall be reserved for households with a gross household income less than eighty (80%) percent of median income.
b. 
The Administrative Agent shall certify a household as eligible for a restricted rental unit when the household is a very low-income, low-income household or a moderate-income household, as applicable to the unit, and the rent provided for the unit does not exceed thirty-five (35%) percent (forty (40%) percent 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 his limit may be exceeded if one or more of the following circumstances exists:
1. 
The household currently pays more than thirty-five (35%) percent (forty (40%) percent for households eligible for age-restricted units) of its gross household income for rent, and the proposed rent will reduce its housing costs;
2. 
The household has consistently paid more than thirty-five (35%) percent (forty (40%) percent for households eligible for age-restricted units) of eligible monthly income for rent in the past and has proven its ability to pay;
3. 
The household is currently in substandard or overcrowded living conditions;
4. 
The household documents the existence of assets with which the household proposes to supplement the rent payments; or
5. 
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.
c. 
The applicant shall file documentation sufficient to establish the existence of the circumstances in paragraph b1 through 5 above with the Administrative Agent, who shall counsel the household on budgeting.
[Ord. No. 2009-15 § 14; adopted 12/29/09; Ord. No. 2016-7 §§ 9-11]
a. 
The position of Municipal Housing Liaison (MHL) for Rockleigh is established by this section. The Governing Body shall make the actual appointment of the MHL by means of a resolution.
1. 
The MHL must be either a full-time or part-time employee of Rockleigh.
2. 
The person appointed as the MHL must be reported by COAH for approval.
3. 
The MHL must meet all COAH requirements for qualifications, including initial and periodic training.
4. 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Rockleigh, including the following responsibilities which may not be contracted out to the Administrative Agent:
(a) 
Serving as the municipality's primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents and interested households;
(b) 
The implementation of the Affirmative Marketing Plan and affordability controls;
(c) 
When applicable, supervising any contracting Administrative Agent;
(d) 
Monitoring the status of all restricted units in the Borough of Rockleigh's Fair Share Plan;
(e) 
Compiling, verifying and submitting annual reports as required by the Court;
[Ord. No. 2016-7 § 9]
(f) 
Coordinating meetings with affordable housing providers and Administrative Agents, as applicable; and
(g) 
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Court.
[Ord. No. 2016-7 § 9]
b. 
The Borough of Rockleigh shall designate by resolution of the Governing Body, subject to the approval of COAH, one (1) or more Administrative Agents to administer newly constructed affordable units in accordance with N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC.
c. 
An Operating Manual shall be provided by the Administrative Agent(s) to be adopted by resolution of the Governing Body and subject to approval of the Court. The Operating Manuals shall be available for public inspection in the Office of the Municipal Clerk and in the office(s) of the Administrative Agent(s).
[Ord. No. 2016-7 § 10]
d. 
The Administrative Agent shall perform the duties and responsibilities of an administrative agent as are set forth in the 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, 16 and 18 thereof, which includes:
1. 
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH;
2. 
Affirmative Marketing;
3. 
Household Certification;
4. 
Affordability Controls;
5. 
Records retention;
6. 
Resale and rerental;
7. 
Processing requests from unit owners; and
8. 
Enforcement, though the ultimate responsibility for retaining controls on the units rests with the municipality.
9. 
The Administrative Agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder.
e. 
The Borough of Rockeigh has adopted a Housing Element and Fair Share Plan which has been endorsed by the Mayor and Council. The following reporting shall be required by the Borough in connection with the issuance of a Final Judgment of Compliance and Repose:
1. 
On the first anniversary of the entry of the Order granting Rockleigh a Final Judgment of Compliance and Repose in In the Matter of the Application of the Borough of Rockleigh, a Municipal Corporation of the State of New Jersey, Docket No. BER—5761-15, and every anniversary thereafter through the end of the Repose period, the Borough shall provide annual reporting of its Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs, Council On Affordable Housing or Local Government Services, or other entity designated by the State of New Jersey, with a copy provided to Fair Share Housing Center and posted on the municipal website, using forms developed for this purpose by the New Jersey Department of Community Affairs, Council On Affordable Housing or Local Government Services. The reporting shall include an accounting of all Affordable Housing Trust Fund activity, including the source and amount of funds collected and the amount and purpose for which any funds have been expended.
2. 
On the first anniversary of the entry of the Order granting Rockleigh a Final Judgment of Compliance and Repose in In the Matter of the Application of the Borough of Rockleigh, a Municipal Corporation of the State of New Jersey, Docket No. BER—5761-15, and every anniversary thereafter through the end of the Repose period, the Borough shall provide annual reporting of the status of all affordable housing activity within the Borough through posting on the municipal website, with copies provided to Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, and the Bergen County Chapter of the NAACP. Such reporting shall be by using forms previously developed for this purpose by the Council On Affordable Housing or any other forms endorsed by the Court-Appointed Special Master and Fair Share Housing Center.
3. 
For the midpoint realistic opportunity review due on July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the Borough shall post on its municipal website, with copies provided to Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, and the Bergen County Chapter of the NAACP, a status report as to its implementation of its Plan and an analysis of whether any unbuilt sites or unfulfilled mechanisms continue to present a realistic opportunity. Such posting shall invite any interested party to submit comments to the municipality, with copies provided to the above named groups and organizations, regarding whether any sites no longer present a realistic opportunity and should be replaced. Any interested party may by motion request a hearing before the Court regarding these issues.
4. 
For the review of very low income housing requirements required by N.J.S.A. 52:27D-329.1, within thirty (30) days of the third anniversary of the entry of the Order granting Rockleigh a Final Judgment of Compliance and Repose in In the Matter of the Application of the Borough of Rockleigh, a Municipal Corporation of the State of New Jersey, Docket No. BER—5761-15, and every third year thereafter, the Borough will post on its municipal website, with copies provided to Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, and the Bergen County Chapter of the NAACP, a status report as to its satisfaction of its very low income requirement, including the family very low income requirement referenced in the Housing Element and Fair Share Plan. Such posting shall invite any interested party to submit comments to the municipality, with copies provided to the above named groups and organizations, on the issue of whether the municipality has complied with its very low income housing obligation.
[Ord. No. 2009-15 § 15]
a. 
Upon the occurrence of a breach of any of the regulations governing the affordable unit by an owner, developer or tenant the municipality shall have all remedies provided at law or equity, including but not limited to foreclosure, tenant eviction, municipal fines, a requirement for household recertification, acceleration of all sums due under a mortgage, recoupment of any funds from a sale in the violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
b. 
After providing written notice of a violation to an owner, developer or tenant of a low- or moderate-income unit and advising the owner, developer or tenant of the penalties for such violations, the municipality may take the following action against the owner, developer or tenant for any violation that remains uncured for a period of sixty (60) days after service of the written notice:
1. 
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation, or violations, of the regulations governing the affordable housing unit. If the owner, developer or tenant is found by the court to have violated any provision of the regulations governing the affordable housing units the owner, developer or tenant shall be subject to one or more of the following penalties, at the discretion of the Court:
(a) 
A fine of not more than two thousand ($2,000.00) dollars or imprisonment for a period not to exceed ninety (90) days, or both. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense;
(b) 
In the case of an owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Borough of Rockleigh Affordable Housing Trust Fund of the gross amount of rent illegally collected;
(c) 
In the case of an owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment of an innocent tenant's reasonable relocation costs, as determined by the Court.
2. 
The municipality may file a Court action in the Superior Court seeking a judgment, which would result in the termination of the owner's equity or other interest in the unit, in the nature of a mortgage foreclosure. Any judgment shall be enforceable as if the same were a judgment of default of the First Purchase Money Mortgage and shall constitute a lien against the low- and moderate- income unit.
c. 
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 attorney's fees. The violating owner shall have the right to possession terminated as well as the title conveyed pursuant to the Sheriff's sale.
d. 
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 (2) 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.
e. 
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.
f. 
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.
g. 
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.
h. 
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.
[Ord. No. 2009-15 § 16; Ord. No. 2016-7 § 12]
Appeals from all decisions of an Administrative Agent designated pursuant to this section shall be filed in writing with the appropriate agency or party having jurisdiction.
[Ord. No. 07-09 § 1]
The purpose of this section is to create the administrative mechanisms needed for the execution of Rockleigh's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985.
[Ord. No. 07-09 § 2]
As used in this section:
ADMINISTRATIVE AGENT
Shall mean the entity responsible for administering the affordability controls of some or all units in the affordable housing program for Rockleigh to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households.
MUNICIPAL HOUSING LIAISON
Shall mean the employee charged by the Governing Body with the responsibility for oversight and administration of the affordable housing program for Rockleigh.
[Ord. No. 07-09 § 3; Ord. No. 2016-7 § 13]
a. 
Establishment of Position of Municipal Housing Liaison. There is hereby established the position of Municipal Housing Liaison for Rockleigh.
b. 
Subject to the approval of the Court, the Municipal Housing Liaison shall be appointed by the Governing Body and may be a full- or part-time municipal employee.
[Ord. No. 2016-7 § 13]
c. 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Rockleigh, including the following responsibilities which may not be contracted out, exclusive of paragraph c6 which may be contracted out:
1. 
Serving as Rockleigh's primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents, and interested households;
2. 
Monitoring the status of all restricted units in Rockleigh's Fair Share Plan;
3. 
Compiling, verifying, and submitting annual reports as required by the Court.
[Ord. No. 2016-7 § 13]
4. 
Coordinating meetings with affordable housing providers and Administrative Agents, as applicable;
5. 
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by the Court or any approved party or agency.
[Ord. No. 2016-7 § 13]
6. 
If applicable, serving as the Administrative Agent for some or all of the restricted units in Rockleigh as described in paragraph f below.
d. 
Subject to approval by the Court, Rockleigh may contract with or authorize a consultant, authority, government or any agency charged by the Council, which entity shall have the responsibility of administering the affordable housing program of Rockleigh, except for those responsibilities which may not be contracted out pursuant to paragraph c above. If Rockleigh contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting Administrative Agent.
[Ord. No. 2016-7 § 13]
e. 
Compensation. Compensation shall be fixed by the Governing Body at the time of the appointment of the Municipal Housing Liaison.
f. 
Administrative Powers and Duties Assigned to the Municipal Housing Liaison.
1. 
Affirmative Marketing.
(a) 
Conducting an outreach process to insure affirmative marketing of affordable housing units in accordance with the Affirmative Marketing Plan of Rockleigh and the provisions of N.J.A.C. 5:80-26.15; and
(b) 
Providing counseling or contracting to provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualifications, rental lease requirements, and landlord/tenant law.
2. 
Household Certification.
(a) 
Soliciting, scheduling, conducting and following-up on interviews with interested households;
(b) 
Conducting interviews and obtaining sufficient documentation of gross income and assets upon which to base a determination of income eligibility for a low- or moderate-income unit;
(c) 
Providing written notification to each applicant as to the determination of eligibility or noneligibility;
(d) 
Requiring that all certified applicants for restricted units execute a certificate substantially in the form, as applicable, of either the ownership or rental certificates set forth in Appendices J and K of N.J.A.C. 5:80-26.1 et seq.;
(e) 
Creating and maintaining a referral list of eligible applicant households living in the housing region and eligible applicant households with members working in the housing region where the units are located; and
(f) 
Employing the random selection process as provided in the Affirmative Marketing Plan of Rockleigh when referring households for certification to affordable units.
3. 
Affordability Controls.
(a) 
Furnishing to attorneys or closing agents forms of deed restrictions and mortgages for recording at the time of conveyance of title of each restricted unit;
(b) 
Creating and maintaining a file on each restricted unit for its control period, including the recorded deed with restrictions, recorded mortgage and note, as appropriate;
(c) 
Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are effectuated and properly filed with the appropriate County's Register of Deeds or County Clerk's Office after the termination of the affordability controls for each restricted unit;
(d) 
Communicating with lenders regarding foreclosure; and
(e) 
Ensuring the issuance of continuing certificates of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
4. 
Resale and Rental.
(a) 
Instituting and maintaining an effective means of communicating information between owners and the Administrative Agent regarding the availability of restricted units for resale or rental; and
(b) 
Instituting and maintaining an effective means of communicating information to low- and moderate-income households regarding the availability of restricted units for resale or rerental.
5. 
Processing Request from Unit Owners.
(a) 
Reviewing and approving requests from owners of restricted units who wish to take out home equity loans or refinance during the term of their ownership;
(b) 
Reviewing and approving requests to increase sales prices from owners of restricted units who wish to make capital improvements to the units that would affect the selling price, such authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms and the cost of central air-conditioning systems; and
(c) 
Processing requests and making determinations on requests by owners of restricted units for hardship waivers.
6. 
Enforcement.
(a) 
Securing annually lists of all affordable housing units for which tax bills are mailed to absentee owners and notifying all such owners that they must either move back to their unit or sell it;
(b) 
Securing from all developers and sponsors of restricted units, at the earliest point of contact in the processing of the project or development, written acknowledgment of the requirement that no restricted unit can be offered, or in any other way committed, to any person, other than a household duly certified to the unit by the Administrative Agent;
(c) 
The posting annually in all rental properties, including two-family homes, of a notice as to the maximum permitted rent together with the telephone number of the Administrative Agent where complaints of excess rent can be made;
(d) 
Sending annual mailings to all owners of affordable dwelling units, reminding them of the notices and requirements outlined in N.J.A.C. 5:80-26.18(d)4;
(e) 
Establishing a program for diverting unlawful rent payments to the municipality's affordable housing trust fund or other appropriate municipal fund approved by the DCA;
(f) 
Creating and publishing a written operating manual, as approved by COAH, setting forth procedures for administering such affordability controls; and
(g) 
Providing annual reports to COAH as required.
7. 
The Administrative Agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.