[Added 11-27-2018 by Ord. No. 1626]
a. 
This section sets forth regulations regarding the low- and moderate-income housing units in the City consistent with the provisions known as the "Substantive Rules of the New Jersey Council on Affordable Housing," N.J.A.C. 5:93 et seq., and the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., except where modified by the terms of a settlement agreement between the City and Fair Share Housing Center ("FSHC") such that the statutory requirement to provide very-low-income units equal to 13% of affordable units approved and constructed after July 1, 2008, to be affordable to households at 30% of the regional median income, overrides the UHAC requirement that 10% of all low- and moderate-income units must be affordable at 35% of the regional median income, and the City's constitutional obligation to provide a fair share of affordable housing for low- and moderate-income households. In addition, this section applies requirements for very-low-income housing as established in P.L. 2008, c. 46 (the "Roberts Bill," codified at N.J.S.A. 52:27D-329.1).
b. 
This section is intended to assure that very-low-, low- and moderate-income units (affordable units) are created with controls on affordability over time and that very-low-, low- and moderate-income households shall occupy these units. This section shall apply except where inconsistent with applicable law.
c. 
The Sea Isle 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 plan has also been endorsed by the governing body. The Fair Share Plan describes the ways the City of Sea Isle City shall address its fair share for low- and moderate-income housing as determined by the Superior Court and documented in the Housing Element.
d. 
This section implements and incorporates the Fair Share Plan and addresses the requirements of N.J.A.C. 5:93, as may be amended and supplemented.
e. 
Annual monitoring reporting. On an annual basis beginning with the first anniversary of the entry of the judgment granting the City of Sea Isle City a judgment of compliance and repose, the City shall report on the status of all affordable housing activity within the municipality, including all activity in connection with the City's Affordable Housing Trust Fund, through an update of the COAH CTM system and posting on the municipal website, with a copy of such posting provided to the Fair Share Housing Center ("FSHC"), using forms previously developed for this purpose by COAH or any other forms endorsed by the Special Master and FSHC.
f. 
For the midpoint realistic opportunity review due on July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the City will post on its municipal website, with a copy provided to the Fair Share Housing Center, 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 and whether any mechanisms to meet unmet need should be revised or supplemented. Such posting shall invite any interested party to submit comments to the municipality, with a copy to the Fair Share Housing Center, regarding whether any sites no longer present a realistic opportunity and should be replaced and whether any mechanisms to meet unmet need should be revised or supplemented. Any interested party may, by motion, request a hearing before the court regarding these issues after reasonable attempts at mediation.
g. 
For the review of very-low-income housing requirements required by N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of this agreement, and every third year thereafter, the City will post on its municipal website, with a copy provided to the Fair Share Housing Center, a status report as to its satisfaction of its very-low-income requirements, including the family very-low-income requirements referenced herein. Such posting shall invite any interested party to submit comments to the municipality and Fair Share Housing Center on the issue of whether the municipality has complied with its very-low-income housing obligation under the terms of the settlement agreement between the City and FSHC.
As used herein, the following terms shall have the following meanings:
ACCESSORY APARTMENT
A self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site.
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity responsible for the administration of affordable units in accordance with this section, N.J.A.C. 5:91, N.J.A.C. 5:93 and N.J.A.C. 5:80-26.1 et seq.
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income household as defined in N.J.A.C. 5:93-7.4; in the case of an ownership unit, that the sales price for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented; and in the case of a rental unit, that the rent for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended and supplemented.
AFFORDABLE DEVELOPMENT
A housing development, all or a portion of which consists of restricted units.
AFFORDABLE HOUSING DEVELOPMENT
A development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal Fair Share Plan prepared or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act, credited pursuant to N.J.A.C. 5:93, and/or funded through an affordable housing trust fund.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population such that:
a. 
All the residents of the development where the unit is situated are 62 years or older; or
b. 
At least 80% of the units are occupied by one person that is 55 years or older; or
c. 
The development has been designated by the Secretary of the U.S. Department of Housing and Urban Development as "housing for older persons," as defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ALTERNATIVE LIVING ARRANGEMENT
A structure in which households live in distinct bedrooms yet share kitchen and plumbing facilities, central heat and common areas. "Alternative living arrangement" includes, but is not limited to: transitional facilities for the homeless, Class A, B, C, D, and E boarding homes as regulated by the 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.
ASSISTED LIVING RESIDENCE
A facility licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor and that offers units containing, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative agent as a low-income household or moderate-income household.
COAH
The 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
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that require the repair or replacement of a major system. A major system includes weatherization, roofing, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement and/or load-bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation that is the legal or beneficial owner or owners of a lot or any land proposed to be included in a proposed development, including the holder of an option to contract or purchase, or other person having an enforceable proprietary interest in such land.
DEVELOPMENT
The division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any use or change in the use of any building or other structure, or of any mining, excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to N.J.S.A. 40:55D-1 et seq.
FAIR SHARE PLAN
The plan that describes the mechanisms, strategies and the funding sources, if any, by which the City proposes to address its affordable housing obligation as established in the Housing Element, including the draft ordinances necessary to implement that plan, and addresses the requirements of N.J.A.C. 5:93-5.
HOUSING ELEMENT
The portion of the City's Master Plan, required by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3), and the Act, that includes the information required by N.J.A.C. 5:93-5.1 and establishes the City's fair share obligation.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market rate units. This term includes, but is not necessarily limited to, new construction, the conversion of a nonresidential structure to residential, and the creation of new affordable units through the reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal to 50% or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
The primary structural, mechanical, plumbing, electrical, fire protection, or occupant service components of a building, which include, but are not limited to, weatherization, roofing, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement or load-bearing structural systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable county, as adopted annually by COAH or approved by the N.J. Superior Court.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in excess of 50% but less than 80% of the median household income.
MODERATE-INCOME UNIT
A restricted unit that is affordable to a moderate-income household.
NONEXEMPT SALE
Any sale or transfer of ownership other than the transfer of ownership between husband and wife; the transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or judicial separation, but not including sales to third parties; the transfer of ownership between family members as a result of inheritance; the transfer of ownership through an executor's deed to a Class A beneficiary; and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
A process by which currently income-eligible households are selected for placement in affordable housing units such that no preference is given to one applicant over another except for purposes of matching household income and size with an appropriately priced and sized affordable unit (e.g., by lottery).
REGIONAL ASSET LIMIT
The maximum housing value in each housing region affordable to a four-person household with an income at 80% of the regional median as defined by adopted/approved regional income limits.
REHABILITATION
The repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6.
RENT
The gross monthly cost of a rental unit to the tenant, including the rent paid to the landlord, as well as an allowance for tenant-paid utilities computed in accordance with allowances published by DCA for its Section 8 program. In assisted living residences, rent does not include charges for food and services.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or ownership unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1, as may be amended and supplemented, but does not include a market-rate unit financed under UHORP or ONI.
SPECIAL MASTER
An expert appointed by a judge to make sure that judicial orders are followed. A master's function is essentially investigative, compiling evidence or documents to inform some future action by the court.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal to 30% or less of the median household income.
VERY-LOW-INCOME UNIT
A restricted unit that is affordable to a very-low-income household.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl space), siding to improve energy efficiency, replacement storm windows, replacement storm doors, replacement windows and replacement doors, and is considered a major system for rehabilitation.
The following requirements shall apply to all new or planned developments that contain low- and moderate-income housing units.
a. 
All affordable units created shall comply with COAH rules. It shall be the developer's responsibility to ensure full COAH compliance and to timely file such certifications, reports and/or monitoring forms as may be required to verify COAH compliance of each affordable unit.
b. 
Phasing. Final site plan or subdivision approval shall be contingent upon the affordable housing development meeting the following phasing schedule for low- and moderate-income units, whether developed in a single-phase development or in a multi-phase development:
Percentage of Market-Rate Units Completed
Minimum Percentage of Low- and Moderate-Income Units Completed
25%
0%
25% + 1 unit
10%
50%
50%
75%
75%
90%
100%
c. 
Design. In inclusionary developments, to the extent possible, low- and moderate-income units shall be integrated with the market units.
d. 
The affordable units shall comply with N.J.A.C. 5:97-9 and UHAC.
e. 
All affordable units shall meet or shall be improved to meet UCC requirements and shall be certified to be in standard condition prior to their conveyance or occupancy.
f. 
All new construction units shall be adaptable in conformance with P.L. 2005, c. 350, N.J.S.A. 52:27D-311a and b, and all other applicable law.
g. 
Utilities. Affordable units shall utilize the same type of heating source as market units within the affordable development.
h. 
Payment in lieu of construction providing the whole or fractional affordable units required shall be subject to the following:
1. 
Payments in lieu of constructing affordable units may represent fractional affordable units. The affordable housing requirement shall not be rounded.
2. 
The payment in lieu amount shall be as recommended by the Council on Affordable Housing formulas resulting in an amount of $182,859 per unit.
3. 
Payments in lieu of constructing affordable units shall be deposited into an Affordable Housing Trust Fund pursuant to N.J.A.C. 5:97-8.4 and subject to the provisions thereof.
4. 
Payments in lieu of constructing affordable housing shall not be permitted where affordable housing is not required. Zoning that does not require an affordable housing set-aside or permit a corresponding payment in lieu may be subject to a development fee ordinance pursuant to N.J.A.C. 5:97-8.3.
5. 
Payments in lieu and off-site construction. The standards for the collection of payments in lieu of constructing affordable units or standards for constructing affordable units off site shall be in accordance with N.J.A.C. 5:93-8.10(c).
i. 
Low/moderate split and bedroom distribution of affordable housing units.
1. 
The fair share obligation shall be divided equally between low- and moderate-income units; except that where there is an odd number of affordable housing units, the extra unit shall be a low-income unit.
2. 
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units.
3. 
Within rental developments, of the total number of affordable rental units, at least 13% shall be affordable to very-low-income households.
4. 
Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:
(a) 
The combined number of efficiency and one-bedroom units shall be no greater than 20% of the total low- and moderate-income units;
(b) 
At least 30% of all low- and moderate-income units shall be two-bedroom units;
(c) 
At least 20% of all low- and moderate-income units shall be three-bedroom units; and
(d) 
The remaining units may be allocated among two- and three-bedroom units at the discretion of the developer.
5. 
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.
j. 
Accessibility requirements.
1. 
The first floor of all new restricted townhouse dwelling units and all restricted multistory dwelling units attached to at least one other dwelling unit shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
2. 
All restricted townhouse dwelling units and all restricted multistory dwelling units attached to at least one other dwelling unit shall have the following features:
(a) 
An adaptable toilet and bathing facility on the first floor;
(b) 
An adaptable kitchen on the first floor;
(c) 
An interior accessible route of travel on the first floor;
(d) 
An interior accessible route of travel shall not be required between stories within an individual unit;
(e) 
An adaptable room that can be used as a bedroom, with a door or the casing for the installation of a door, on the first floor; and
(f) 
An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that the City has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible:
(1) 
Where a unit has been constructed with an adaptable entrance, upon the request of a disabled person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be installed.
(2) 
To this end, the builder of restricted units shall deposit funds within the City of Sea Isle City's Affordable Housing Trust Fund sufficient to install accessible entrances in 10% of the affordable units that have been constructed with adaptable entrances.
(3) 
The funds deposited under Subsection j2(f)(2) herein shall be used by the City of Sea Isle City for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
(4) 
The developer of the restricted units shall submit a design plan and cost estimate for the conversion from adaptable to accessible entrances to the Construction Official of the City of Sea Isle City.
(5) 
Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meet the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to the City of Sea Isle City's Affordable Housing Trust Fund in care of the City's 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.
k. 
Maximum rents and sales prices.
1. 
In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC and by the Superior Court, utilizing the regional income limits established.
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 low- and moderate-income 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.
(a) 
At least 13% of all low- and moderate-income rental units shall be affordable to households earning no more than 30% of median 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 prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type.
5. 
In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be met:
(a) 
A studio or efficiency unit 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 met:
(a) 
A studio or efficiency unit shall be affordable to a one-person household;
(b) 
A one-bedroom unit shall be affordable to a one-and-one-half-person household; and
(c) 
A two-bedroom unit shall be affordable to a two-person household or to two one-person households.
7. 
The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying cost of the unit, including principal and interest (based on a mortgage loan equal to 95% of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees, does 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 gross rent, including an allowance for utilities, for a restricted rental unit shall be calculated so as not to exceed 30% of the eligible monthly income of the appropriate household size as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
9. 
The price of owner-occupied low- and moderate-income units may increase annually based on the percentage increase in the regional median income limit for each housing region. In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
10. 
The rent of very-low-, low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the Northeast Urban Area, upon its publication for the prior calendar year. This increase shall not exceed 9% in any one year. Rents for units constructed pursuant to low-income housing tax credit regulations shall be indexed pursuant to the regulations governing low-income housing tax credits.
11. 
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.
For any affordable housing unit that is part of a condominium association and/or homeowners' association, the master deed shall reflect that the association fee assessed for each affordable housing unit shall be established at 100% of the market-rate fee.
The requirements of this section apply to all developments that contain affordable housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.
a. 
The City of Sea Isle City shall adopt by resolution an affirmative marketing plan, subject to approval of the Superior Court, 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 6, comprised of Atlantic, Cape May, Cumberland, and Salem Counties.
d. 
The administrative agent designated by the City of Sea Isle City shall assure the affirmative marketing of all affordable units is consistent with the affirmative marketing plan for the City of Sea Isle City.
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 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 the City of Sea Isle City.
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; and
2. 
Provide separate bedrooms for parents and children; and
3. 
Provide children of different sex with separate bedrooms; and
4. 
Prevent more than two persons from occupying a single bedroom.
b. 
Additional provisions related to occupancy standards (if any) shall be provided in the Municipal Operating Manual.
a. 
The administrative agent shall use a random selection process to select occupants of low- and moderate-income housing.
b. 
A waiting list of all eligible candidates will be maintained in accordance with the provisions of N.J.A.C. 5:80-26 et seq.
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 City of Sea Isle elects to release the unit from such requirements; however, 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 30 years.
b. 
Rehabilitated owner-occupied single-family housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years.
c. 
The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.
d. 
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.
e. 
A restricted ownership unit shall be required to obtain a continuing certificate of occupancy or a certified statement from the Construction Official stating that the unit meets all code standards upon the first transfer of title that follows the expiration of the applicable minimum control period provided under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
Price restrictions for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, including:
a. 
The initial purchase price for a restricted ownership unit shall be approved by the administrative agent.
b. 
The administrative agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.
c. 
The method used to determine the condominium association fee amounts and special assessments shall be indistinguishable between the low- and moderate-income unit owners and the market unit owners.
d. 
The owners of restricted ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom.
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 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.
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, homeowners' and private mortgage insurance and condominium or homeowners' association fees, as applicable) does not exceed 33% of the household's certified monthly income.
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 95% of the maximum allowable resale price of that unit, as such price is determined by the administrative agent in accordance with N.J.A.C. 5:80-26.6(b).
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 City of Sea Isle elects to release the unit from such requirements; however, 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 30 years.
b. 
Rehabilitated renter-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years.
c. 
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 Cape May. A copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.
d. 
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.
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 sevices) without the express written approval of the administrative agent.
c. 
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 administrative agent to be applied to the costs of administering the controls applicable to the unit as set forth in this section.
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 30% of median income.
2. 
Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income.
3. 
Moderate-income rental units shall be reserved for households with a gross household income less than 80% 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 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:
1. 
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;
2. 
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;
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 Subsection b1 through 5 above with the administrative agent, who shall counsel the household on budgeting.
Each housing unit created through the conversion of a nonresidential structure shall be considered a new housing unit and shall be subject to the affordability controls for a new housing unit.
a. 
Specifications for the administration of affordable units in the City, including income eligibility criteria, sale prices, and rental prices, shall be established and governed by the Affordable Housing Administrator in accordance with COAH rules.
b. 
Any conveyance of a newly constructed low- or moderate-income unit shall contain the restrictive affordability controls that are set forth in N.J.A.C. 5:97.
a. 
The City of Sea Isle City is ultimately responsible for administering the affordable housing program, including affordability controls and the affirmative marketing plan in accordance with N.J.A.C. 5:93 et seq. and the UHAC pursuant to N.J.A.C. 5:80-26 et seq.
b. 
The position of Municipal Housing Liaison for the City of Sea Isle City is hereby established. The City of Sea Isle City shall, by duly adopted resolution, appoint the Municipal Housing Liaison, subject to approval by the Superior Court.
c. 
The Municipal Housing Liaison must be either a full-time or part-time employee of the City of Sea Isle City.
d. 
The Municipal Housing Liaison must meet the requirements for qualifications, including initial and periodic training found in N.J.A.C. 5:93.
e. 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the City of Sea Isle City, including the following responsibilities which may not be contracted out to the administrative agent:
1. 
Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
2. 
The implementation of the affirmative marketing plan and affordability controls;
3. 
When applicable, supervising any contracting administrative agent;
4. 
Monitoring the status of all restricted units in the City of Sea Isle City's Fair Share Plan;
5. 
Compiling, verifying and submitting annual reports as required by the Superior Court;
6. 
Coordinating meetings with affordable housing providers and administrative agents, as applicable; and
7. 
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Superior Court.
a. 
The City shall designate by resolution of the City Committee, subject to the approval of the Superior Court, one or more administrative agents to administer newly constructed affordable units in accordance with N.J.A.C. 5:93 and UHAC.
b. 
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 Superior 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).
c. 
The administrative agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC and which are described in full detail in the operating manual, including those set forth in N.J.A.C. 5:80-26.14, 5:80-26.16 and 5:80-26.18 thereof, which includes:
1. 
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by the Superior Court;
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, although the ultimate responsibility for retaining controls on the units rests with the municipality.
9. 
The administrative agent shall, as delegated by the City Committee, have the authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder.
a. 
Upon the occurrence of a breach of any of the regulations governing the affordable unit by an owner, developer or tenant, the City of Sea Isle City shall have all remedies provided at law or equity, including, but not limited to, foreclosure, tenant eviction, municipal fines, a requirement for household recertification, acceleration of all sums due under a mortgage, recoupment of any funds from a sale in violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
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 City of Sea Isle City may take the following action against the owner, developer or tenant for any violation that remains uncured for a period of 60 days after service of the written notice:
1. 
The City of Sea Isle City may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation, or violations, of the regulations governing the affordable housing unit. If the owner, developer or tenant is found by the court to have violated any provision of the regulations governing affordable housing units, the owner, developer or tenant shall be subject to one or more of the following penalties, at the discretion of the court:
(a) 
A fine of not more than $500 or imprisonment for a period not to exceed 90 days, or both. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense.
(b) 
In the case of an owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the City of Sea Isle City 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 City of Sea Isle City 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 City of Sea Isle City, 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 City of Sea Isle City, 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.
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 City of Sea Isle City 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 City of Sea Isle 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 City of Sea Isle City 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 City of Sea Isle City 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 City of Sea Isle City 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 City of Sea Isle City. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the City of Sea Isle City, whether such balance shall be paid to the owner or forfeited to the City of Sea Isle City.
e. 
Foreclosure by the City of Sea Isle City 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 City of Sea Isle 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 City of Sea Isle City shall obligate the owner to accept an offer to purchase from any qualified purchaser which may be referred to the owner by the City of Sea Isle City, 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 governing affordable housing units until such time as title is conveyed from the owner.
a. 
Appeals from all decisions of an administrative agent designated pursuant to this section shall be filed in writing with the City.
b. 
Procedure on appeal.
1. 
Any appeal from the decision of an administrative agent shall be filed within 30 calendar days of the date of the decision being appealed. Such appeal shall be in writing and state the grounds for the appeal.
2. 
Such appeal shall be heard by a hearing committee which shall consist of the Business Administrator, City Chief Financial Officer, and the Director of the Department of Community Services. The Business Administrator shall act as Chairperson of the hearing committee. A hearing before the committee shall be scheduled promptly and concluded within 30 calendar days from the filing of the notice of appeal, unless additional time is required for good cause. The decision of the hearing committee shall be in writing and filed with the City Clerk and a copy provided to the appellant.
3. 
If the appellant is still aggrieved by the decision of the hearing committee, a further appeal may be taken to City Council. Any such appeal shall be in writing, stating the grounds of the appeal, and filed with the City Clerk within 15 calendar days of the decision by the hearing committee. The President of City Council shall then schedule the matter for a hearing before City Council. Such appeal shall be heard as promptly as possible, and City Council shall then render its decision by resolution.
4. 
In lieu of an appeal hearing before the full City Council, City Council may:
(a) 
Appoint a subcommittee of Council to hear and determine the appeal; or
(b) 
Refer the matter to a hearing officer to conduct a hearing, at the conclusion of which the hearing officer shall render his/her decision in writing to the City Council with a copy to the appellant. City Council shall, within 30 calendar days thereafter, either accept, reject or modify the initial decision of the hearing officer.
c. 
The decision of City Council, whether made by the full Council or by a subcommittee thereof, on the initial decision of the hearing officer shall constitute a final decision on the appeal.
a. 
Consistent with the May 11, 2018, Master Plan Housing Element and Fair Share Plan and Settlement Agreement, dated November 14, 2017, with fair share housing as approved by the Special Master and the Superior Court of New Jersey December 1, 2017:
Change
General Location
Block and Lot
R-2 to R-3
44th Street to 45th Street south along Central Avenue
Block 44.03, Lots, 1, 2, 3, 4, 5, 13, 14, 15, 16, 17, and 18
R-2 to R-3
58th Street to 59th Street along Landis Avenue
Block 58.02, Lots 1281, 1282, 1283, 1284, 1285.01, 1285.02, 1286.01, 1286.02, 1287.01, 1287.02, 1288.01 and 1288.02
R-2 to R-3
85th Street and Landis Avenue
Block 86.03, Lot 29
C-2 to R-3
85th Street between Landis Avenue and Pleasure Avenue
Block 86.02, Lots 14.02 and 15
R-2: Add Overlay Inclusionary Zone
JFK Boulevard north along Sounds Avenue to 36th Street
Block 37.07, Lots 1, 1.01, 2, 3, 4, 5, 5.01, 6.01, 6.02, 6.03, 6.04, 7, 7.01, 8, 9.01, 9.02, 9.03, 9.04, 10, 10.01, 11, 12, 13, 13.01, 13.02, 14, 15.01, 15.02, 16, 17, 18 and 19
C-3: Add Overlay Inclusionary Zone
JFK Boulevard north along Sounds Avenue to 36th Street
Block 38.06, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22
Block 38.07, Lots 1, 2, 3, 4.01, 4.02, 5.01, 5.02, 6.01, 6.02, 7, 8, 9, and 10.01.
Block 39.06, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22
Block 39.07, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10
Block 40.07, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10
C-3: Add Overlay Inclusionary Zone
Park Boulevard and 43rd Place
Block 42.06, Lots 1, 2, 3.01, 3.02, 4, 5.01, 5.02, 6, 7.01, 7.02, 8, 9, 10, 11.01, 11.02, 12, 13, 15, 16, 17.01, 17.02, 18, 19.01, 19.02, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39 and 40
Block 42.05, Lots 1, 2.01, 2.02, 3, 4.01, 4.02, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 and 43
Block 43.05, Lots 1.01, 1.02, 1.03, 2.01, 2.02, 2.03, 3.01, 3.02, 3.03, 4.01, 4.02, and 4.03.
Block 43.04, Lots 1, 2, 17.01, 18.01, 19.01 and 20.01
Block 41.04, Lots 1, 2, 3.01 and 3.02
R-2
[Amended 6-22-2021 by Ord. No. 1669]
84th Street to 89th Street south along the bay
Block 85.04, Lots 24.01, 24.02, 25, 26.01, 26.02
Block 88.03, Lots 1.02, 2, 2.01, 4.01, 4.02, 4.03, 4.04, 4.05, 5, and 5.01
Block 89.03, Lots 26, 27, 28, 29, 30.01, 30.02, 31.01, and 31.02
C-2: Add Overlay Inclusionary Zone
59th Street to 61st Street north along Landis Avenue
Block 59.03, Lots 14.01, 14.02, 15.01, 15.02, 29.01, 29.02, 30.01, and 30.02
Block 60.03, Lots 17 and 26.10
Block 61.03, Lot 26.09
b. 
The Zoning Map of the City of Sea Isle City, New Jersey, is hereby amended to conform to the above changes.
[Added 11-27-2018 by Ord. No. 1627]
a. 
The New Jersey Council on Affordable Housing ("COAH") has promulgated rules, set forth at N.J.A.C. 5:93 and 5:91, concerning the substantive and procedural requirements for obtaining substantive certification of the City's Housing Elements and Fair Share Plan; and
b. 
On March 10, 2015, the Supreme Court transferred responsibility to review and approve housing elements and fair share plans from COAH to designated Mt. Laurel trial judges within the Superior Court; and
c. 
On July 7, 2015, the City submitted a declaratory judgment action to New Jersey Superior Court; and
d. 
On November 14, 2017, the City entered into a settlement agreement with the Fair Share Housing Center resolving the determination of the City's prior-round, present, and third-round obligation and setting forth the City's preliminary compliance plan; and
e. 
On December 1, 2017, the New Jersey Superior Court approved the settlement agreement between the City and the Fair Share Housing Center; and
f. 
Conditions of the court-approved settlement agreement require the City to update its affordable housing ordinances to be in compliance with current rules and to implement a City-wide mandatory affordable housing set-aside requirement for multiple-unit residential or mixed residential-commercial developments.
The City of Sea Isle City adds a mandatory affordable housing set-aside on future multifamily development of five or more units in the City, as follows:
a. 
All multifamily development of five or more units in the City, other than such development permitted by the City's zoning as of the date of November 14, 2017, developed through Planning Board approval, Zoning Board approval, redevelopment or rehabilitation plan, shall require that an appropriate percentage of the residential units be set aside for low- and moderate-income households.
b. 
This requirement shall not apply to residential expansions, additions, renovations, replacement, or any other type of residential development that does not result in a net increase in the number of dwellings of five or more.
c. 
For inclusionary projects in which the low- and moderate-income units are to be offered for sale, the set-aside percentage shall be 20%; for projects in which the low- and moderate-income units are to be offered for rent, the set-aside percentage should be 15%.
d. 
The developer shall provide that half of the low- and moderate-income units constructed be affordable by low-income households and that the remaining half be affordable by moderate-income households. At least 13% of all restricted units shall be very-low-income units (affordable to a household earning 30% or less of median income). The very-low-income units shall be counted as part of the required number of low-income units within the development.
e. 
All such affordable units, including the required bedroom distribution, shall be governed by controls on affordability and affirmatively marketed in conformance with the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., or any successor regulation, City ordinances, and all other applicable law.
f. 
Subdivision and site plan approval shall be denied by the Board unless the developer complies with the requirements to provide low- and moderate-income housing pursuant to the provisions of this section. A property shall not be permitted to be subdivided so as to avoid meeting this requirement. The Board may impose any reasonable conditions to ensure such compliance.
g. 
Nothing in this section precludes the City from imposing an affordable housing set-aside in a development not required to have a set-aside pursuant to this section, consistent with N.J.S.A. 52:27D-311(h) and other applicable law.
h. 
This requirement does not create any entitlement for a property owner or applicant for a zoning amendment, variance, or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation or for approval of any particular proposed project.
i. 
This requirement does not apply to any sites or specific zones otherwise identified in the Fair Share Plan, for which density and set-aside standards shall be governed by the specific standards set forth therein.
a. 
Developers unable to provide the 16.6% affordable housing units on site will have the option of providing the units as family affordable housing units elsewhere in the municipality. In a case when fractional units would be required, a payment-in-lieu of providing the fractional affordable units will be permitted.
[Amended 8-25-2020 by Ord. No. 1656]
b. 
The payment-in-lieu amount shall be as recommended by the Council on Affordable Housing formulas, which in the past has resulted in an amount of $182,859 per unit. This would require any developer who chooses not to, or is not able to, provide all or part of the required affordable units to make a payment to the City in the amount of $182,859 per unit, to be deposited into the City's Affordable Housing Trust Fund. The affordable housing requirement shall not be rounded.
c. 
Any fees collected herein shall be part of the City's Affordable Housing Trust Fund and will be available for assistance with affordable housing programs, in accordance with the spending plan.
[Added 11-27-2018 by Ord. No. 1627]
The procedural history is set forth in Subsection 26-43.2 of this chapter and incorporated by reference. In addition, the conditions of the court-approved settlement agreement require the City to update its ordinances to create an overlay affecting portions of the C-3 Marine Commercial/Industrial District and a portion of the C-2 Neighborhood Business District that permits inclusionary zoning. The rules that follow shall pertain to all inclusionary developments, in addition to standards for the distribution of low- and moderate-income units, bedroom distribution, and establishing the rents and prices of low- and moderate-income units set forth elsewhere in this chapter.
a. 
This section establishes a new Inclusionary Zoning Overlay District (IZ) to assist in meeting Sea Isle City's affordable housing obligation. The district provides incentives to, but does not mandate, developers to incorporate affordable housing into developments within the district.
b. 
The regulations herein apply to all developments within the district which seek to develop otherwise than as permitted by the particular zone as of the date of November 14, 2017.
c. 
The Inclusionary Zoning Overlay District (IZ) requirements and/or incentive provisions apply in addition to the underlying zoning district regulations. Where these requirements conflict with the underlying district regulations or other provisions, the requirements of this section shall be controlling.
d. 
The Inclusionary Zoning Overlay District (IZ) overlays on portions of the commercial zoning districts C-2 Neighborhood Business District and C-3 Marine Commercial/Industrial District, as shown on the Zoning Map.
a. 
For all mixed-use/residential development, any developer seeking five units or more shall set aside 16.6% of the units (one affordable unit for every five market-rate units by the developer) for development as affordable housing units. The developer shall be permitted an increase in density from the allocation of four upper-story residential units per each 5,000-square-foot lot, as permitted as of November 14, 2017, to an increased density allowing six upper-story residential units per each 5,000-square-foot lot.
b. 
Developers providing affordable units will receive tax relief in the form of a lower equalized assessed valuation (EAV) of the on-site affordable units in accord with the market valuation of the affordable units.
a. 
Developers unable to provide the 16.6% affordable housing units on site will have the option of providing the units as family affordable housing units elsewhere in the municipality. In a case when fractional units would be required, a payment-in-lieu of providing the fractional affordable units will be permitted.
[Amended 8-25-2020 by Ord. No. 1656]
b. 
The payment-in-lieu amount shall be as recommended by the Council on Affordable Housing formulas, which in the past has resulted in an amount of $182,859 per unit. This would require any developer who chooses not to, or is not able to, provide all or part of the required affordable units to make a payment to the City in the amount of $182,859 per unit, to be deposited into the City's Affordable Housing Trust Fund. The affordable housing requirement shall not be rounded.
c. 
Any fees collected herein shall be part of the City's Affordable Housing Trust Fund and will be available for assistance with affordable housing programs, in accordance with the spending plan.
All bulk requirements set forth in the specific zoning district in which the development lies shall be applicable in the inclusionary housing overlay.
[Added 11-27-2018 by Ord. No. 1628]
a. 
In Holmdel Builder's Association v. Holmdel City, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject to the adoption of rules by the Council on Affordable Housing (COAH).
b. 
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), COAH was authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that were under the jurisdiction of COAH, and that are now before a court of competent jurisdiction and have a court-approved spending plan, may retain fees collected from nonresidential development.
c. 
This section establishes standards for the collection, maintenance, and expenditure of development fees that are consistent with COAH's regulations and policies developed in response to P.L. 2008, c. 46, Sections 8 and 32-38 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7). Fees collected pursuant to this section shall be used for the sole purpose of providing low- and moderate-income housing in accordance with a court-approved spending plan.
a. 
This section shall not become effective until approved by the court pursuant to N.J.A.C. 5:96-5.1.
b. 
The City of Sea Isle City shall not spend development fees until the court has approved a plan for spending such fees in conformance with N.J.A.C. 5:97-8.10 and N.J.A.C. 5:96-5.3.
c. 
This section shall be interpreted within the framework of COAH's last-adopted rules on development fees, codified at N.J.A.C. 5:97-8, as same may be interpreted and applied by the court.
a. 
Imposed fees.
1. 
Within all zoning districts, nonresidential developers, except for developers of the types of development specifically exempted below, shall pay a fee equal to 2 1/2% of the equalized assessed value of the land and improvements, for all new nonresidential construction on an unimproved lot or lots.
2. 
Nonresidential developers, except for developers of the types of development specifically exempted, shall also pay a fee equal to 2 1/2% of the increase in equalized assessed value resulting from any additions to existing structures to be used for nonresidential purposes.
3. 
Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 2 1/2% shall be calculated on the difference between the equalized assessed value of the preexisting land and improvement and the equalized assessed value of the newly improved structure, i.e., land and improvement, at the time the final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the nonresidential development fee shall be zero.
b. 
Eligible exactions, ineligible exactions and exemptions for nonresidential development.
1. 
The nonresidential portion of a mixed-use inclusionary or market-rate development shall be subject to the 2 1/2% development fee, unless otherwise exempted below.
2. 
The 2 1/2% fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs.
3. 
Nonresidential developments shall be exempt from the payment of nonresidential development fees in accordance with the exemptions required pursuant to P.L. 2008, c. 46, as specified in the Form N-RDF, State of New Jersey Non-Residential Development Certification/Exemption Form. Any exemption claimed by a developer shall be substantiated by that developer.
4. 
A developer of a nonresidential development exempted from the nonresidential development fee pursuant to P.L. 2008, c. 46, shall be subject to it at such time as the basis for the exemption no longer applies and shall make the payment of the nonresidential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy of the nonresidential development, whichever is later.
5. 
If a property, which was exempted from the collection of a nonresidential development fee thereafter, ceases to be exempt from property taxation, the owner of the property shall remit the fees required pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid nonresidential development fees under these circumstances may be enforceable by Sea Isle City as a lien against the real property of the owner.
6. 
Developers that have received final approval prior to the adoption of a municipal development fee ordinance shall be exempt from paying a development fee, unless the developer seeks a substantial change in the approval.
7. 
Exempted from these provisions shall be approvals for the following classes of development:
(a) 
Utility facilities.
(b) 
Educational and cultural facilities.
(c) 
Quasi-public uses, including clubs, lodges and similar uses.
(d) 
Public uses.
(e) 
Hospital uses.
a. 
Upon the granting of a preliminary, final or other applicable approval for a development, the applicable approving authority shall direct its staff to notify the Construction Official responsible for the issuance of a building permit.
b. 
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF, State of New Jersey Non-Residential Development Certification/Exemption, to be completed as per the instructions provided. The developer of a nonresidential development shall complete Form N-RDF as per the instructions provided. The Construction Official shall verify the information submitted by the nonresidential developer as per the instructions provided in the Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided in Form N-RDF.
c. 
The Construction Official responsible for the issuance of a building permit shall notify the local tax assessor of the issuance of the first building permit for a development which is subject to a development fee.
d. 
Within 90 days of receipt of that notice, the Municipal Tax Assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development.
e. 
The Construction Official responsible for the issuance of a final certificate of occupancy notifies the Local Assessor of all requests for the scheduling of a final inspection on property which is subject to a development fee.
f. 
Within 10 business days of a request for the scheduling of a final inspection, the Municipal Assessor shall confirm or modify the previously estimated equalized assessed value of the improvements of the development, calculate the development fee, and thereafter notify the developer of the amount of the fee.
g. 
Should Sea Isle City fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of Section 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
h. 
50% of the development fee shall be collected at the time of issuance of the building permit. The remaining portion shall be collected at the issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at building permit and that determined at issuance of certificate of occupancy.
i. 
Appeal of development fees.
1. 
A developer may challenge residential development fees imposed by filing a challenge with the County Board of Taxation. Pending a review and determination by the Board, collected fees shall be placed in an interest-bearing escrow account by Sea Isle City. Appeals from a determination of the Board may be made to the tax court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
2. 
A developer may challenge nonresidential development fees imposed by filing a challenge with the Director of the Division of Taxation. Pending a review and determination by the Director, which shall be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest-bearing escrow account by Sea Isle City. Appeals from a determination of the Director may be made to the tax court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
a. 
There is hereby created a separate, interest-bearing housing trust fund to be maintained by the Sea Isle City Chief Financial Officer for depositing development fees collected from nonresidential developers and proceeds from the sale of units with extinguished controls.
b. 
The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identifiable by source and amount:
1. 
Payments in lieu of on-site construction of affordable units, except that payments in lieu of construction shall be separately identifiable from other payments in lieu of construction as a subaccount within the Affordable Housing Trust Fund;
2. 
Developer-contributed funds to make 10% of the adaptable entrances in a townhouse or other multistory attached development accessible;
3. 
Rental income from municipally operated units;
4. 
Repayments from affordable housing program loans;
5. 
Recapture funds;
6. 
Proceeds from the sale of affordable units; and
7. 
Any other funds collected in connection with Sea Isle City's affordable housing program.
c. 
Within seven days from the opening of the trust fund account, Sea Isle City shall provide the court with written authorization, in the form of a three-party escrow agreement between the municipality, the bank, and the court, to permit the court to direct the disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b).
d. 
All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by the court.
a. 
The expenditure of all funds shall conform to a spending plan approved by the court. Funds deposited in the housing trust fund may be used for any activity approved by the court to address Sea Isle City's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to: preservation or purchase of housing for the purpose of maintaining or implementing affordability controls, rehabilitation, new construction of affordable housing units and related costs, accessory apartment, marketing to affordable or regional housing partnership programs, conversion of existing nonresidential buildings to create new affordable units, green building strategies designed to be cost-saving and in accordance with accepted national or state standards, purchase of land for affordable housing, improvement of land to be used for affordable housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through 5:97-8.9 and specified in the approved spending plan.
b. 
Funds shall not be expended to reimburse Sea Isle City for past housing activities.
c. 
At least 30% of all development fees collected and interest earned shall be used to provide affordability assistance to low- and moderate-income households in affordable units included in the Municipal Fair Share Plan. 1/3 of the affordability assistance portion of development fees collected shall be used to provide affordability assistance to those households earning 30% or less of median income by region.
1. 
Affordability assistance programs may include downpayment assistance, security deposit assistance, low-interest loans, rental assistance, assistance with homeowners' association or condominium fees and special assessments, and assistance with emergency repairs.
2. 
Affordability assistance to households earning 30% or less of median income may include buying down the cost of low- or moderate-income units in the Municipal Fair Share Plan to make them affordable to households earning 30% or less of median income.
3. 
Payments in lieu of constructing affordable units on site and funds from the sale of units with extinguished controls shall be exempt from the affordability assistance requirement.
4. 
Sea Isle City may contract with a private or public entity to administer any part of its Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:96-18.
5. 
No more than 20% of all revenues collected from development fees may be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to develop or implement a new construction program, a Housing Element and Fair Share Plan, and/or an affirmative marketing program. In the case of a rehabilitation program, no more than 20% of the revenues collected from development fees shall be expended for such administrative expenses. Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units, and compliance with the court's monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council's regulations and/or action are not eligible uses of the Affordable Housing Trust Fund.
Sea Isle City shall complete and return to the New Jersey Department of Community Affairs (NJDCA), Local Government Services, all monitoring forms included in monitoring requirements related to the collection of development fees from nonresidential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier-free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with Sea Isle City's housing program, as well as to the expenditure of revenues and implementation of the plan certified by the court. All monitoring reports shall be completed on forms designed by NJDCA or a successor entity for that purpose.
a. 
The ability for the City of Sea Isle City to impose, collect and expend development fees shall expire with the expiration of the repose period covered by its impending judgment of compliance and repose unless the City of Sea Isle City has first filed an adopted Housing Element and Fair Share Plan with the court or with a designated state administrative agency, has petitioned for a judgment of compliance and repose from the court or for substantive certification or its equivalent from a state administrative agency authorized to approve and administer municipal affordable housing compliance, and has received approval of its Development Fee Ordinance from the entity that will be reviewing and approving the Housing Element and Fair Share Plan.
b. 
If the City of Sea Isle City fails to renew its ability to impose and collect development fees prior to the expiration of its judgment of compliance and repose, it may be subject to forfeiture of any or all funds remaining within its Affordable Housing Trust Fund. Any funds so forfeited shall be deposited into the New Jersey Affordable Housing Trust Fund established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320).