[Ord. No. 10-16 § 1]
a.
This section 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 section shall apply except where inconsistent with
applicable law.
b.
The Borough of Elmwood Park 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 the
Borough of Elmwood Park 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 section 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 Elmwood Park 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 Borough of Elmwood Park Municipal Building, Municipal
Clerk's Office, 182 Market Street, Elmwood Park, 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. 10-16 § 2]
The following terms when used in this section shall have the
meanings given in this subsection:
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.
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222
[N.J.S.A. 52:27D-301 et seq.]
Shall mean constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
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.
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.
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.
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.
Shall mean a housing development all or a portion of which
consists of restricted units.
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 100% affordable
development.
Shall mean any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
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.
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 62 years or older; or 2) at least 80%
of the units are occupied by one person that is 55 years or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
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.).
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 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.
Shall mean a household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
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.).
Shall mean the State of New Jersey Department of Community
Affairs.
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.
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.
Shall mean 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.
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.
Shall mean a household with a total gross annual household
income equal to 50% or less of the median household income.
Shall mean a restricted unit that is affordable to a low-income
household.
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.
Shall mean housing not restricted to low- and moderate-income
households that may sell or rent at any price.
Shall mean the median income by household size for the applicable
county, as adopted annually by COAH.
Shall mean a household with a total gross annual household
income in excess of 50% but less than 80% of the median household
income.
Shall mean a restricted unit that is affordable to a moderate-income
household.
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 arid the transfer of ownership by court order.
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).
Shall mean the maximum housing value in each housing region
affordable to a four-person household with an income at 80% of the
regional median as defined by COAH's adopted Regional Income Limits
published annually by COAH.
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.
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.
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.
Shall mean the Uniform Housing Affordability Controls set
forth in N.J.A.C. 5:80-26.1 et seq.
Shall mean a household with a total gross annual household
income equal to 30% or less of the median household income.
Shall mean a restricted unit that is affordable to a very
low-income household.
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. 10-16 § 3]
The Borough of Elmwood Park has determined that it will use
the following mechanisms to satisfy its affordable housing obligations:
a.
A Rehabilitation Program.
1.
The Borough of Elmwood Park's rehabilitation program shall be designed
to renovate deficient housing units occupied by low- and moderate-income
households such that, after rehabilitation, these units will comply
with the New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
2.
Both owner occupied and renter occupied units shall be eligible for
rehabilitation funds.
3.
All rehabilitated units shall remain affordable to low- and moderate-income
households for a period of 10 years (the control period). For owner
occupied units the control period will be enforced with a lien and
for renter occupied units the control period will be enforced with
a deed restriction.
4.
The Borough of Elmwood Park shall dedicate a minimum of $10,000 for
each unit to be rehabilitated through this program, reflecting the
minimum hard cost of rehabilitation for each unit.
5.
The Borough of Elmwood Park shall adopt a resolution committing to
fund any shortfall in the rehabilitation programs for the Borough
of Elmwood Park.
6.
The Borough of Elmwood Park shall designate, subject to the approval
of COAH, one or more Administrative Agents to administer the rehabilitation
program in accordance with N.J.A.C. 5:96 and N.J.A.C. 5:97. The Administrative
Agent(s) shall provide a rehabilitation manual for the owner occupancy
rehabilitation program and a rehabilitation manual for the rental
occupancy rehabilitation program to be adopted by resolution of the
Governing Body and subject to approval of COAH. Both rehabilitation
manuals shall be available for public inspection in the Office of
the Municipal Clerk and in the office(s) of the Administrative Agent(s).
7.
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is rerented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low-or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:97-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:97-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner occupied units shall be exempt from the regional asset limit.
[Ord. No. 10-16 § 4]
a.
Presumptive Densities and Set-Asides. To ensure the efficient use
of land through compact forms of development and to create realistic
opportunities for the construction of affordable housing, inclusionary
zoning permits minimum presumptive densities and presumptive maximum
affordable housing set-asides as follows:
1.
For Sale Developments.
(a)
Inclusionary zoning in Planning Area 1 permits residential development
at a presumptive maximum affordable housing set-aside of 25% of the
total number of units in the development.
2.
Rental Developments.
(a)
Inclusionary zoning permits a presumptive maximum affordable
housing set aside of 20% of the total number of units in the development
and the zoning provides for at least 10% of the affordable units to
be affordable to households earning 30% or less of the area median
income for the COAH region.
The zoning of the AH-1 and AH-2 Zone Districts provides for
a 15% set-aside for restricted units, to a maximum of 16 units in
the AH-1 Zone District and a maximum of eight units in the AH-2 Zone
District.
3.
Where an executed development agreement exists for affordable housing
on a specific site or sites, list the sites below and identify the
density and set-aside for each:
(a)
Elmwood Park River Drive Development, LLC (Block 1201 Lot 3.01)
has been approved to provide for a 15% set-aside for restricted units,
to a maximum of 16 restricted units, and a density of 40 units per
acre.
(b)
Elmwood Park River Drive Development, LLC (Block 1201 Lot 4.01)
has been approved to provide for a 15% set-aside for restricted units,
to a maximum of eight restricted units, and a density of 25 units
per acre and up to 18,000 square feet of commercial floor area.
b.
Phasing. In inclusionary developments the following schedule shall
be followed:
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|---|
25
|
0
|
25+1
|
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.
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 offsite, shall be in accordance
with N.J.A.C. 5:97-6.4.
e.
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
[Ord. No. 10-16 § 5]
The following general guidelines apply to all newly constructed
developments that contain low-and moderate-income housing units, including
any currently unanticipated future developments that will provide
low- and moderate-income housing units.
a.
Low-Moderate Split and Bedroom Distribution of Affordable Housing
Units.
1.
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
2.
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
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 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.
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 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-31 la 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 of Elmwood
Park has collected funds from the developer sufficient to make 10%
of the adaptable entrances in the development accessible:
(1)
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
(2)
To this end, the builder of restricted units shall deposit funds
within the Borough of Elmwood Park'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 paragraph (2) above shall be used
by the Borough of Elmwood Park for the sole purpose of making the
adaptable entrance of any affordable unit accessible when requested
to do so by a person with a disability who occupies or intends to
occupy the unit and requires an accessible entrance.
(4)
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the Borough of Elmwood Park.
(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 Elmwood Park's
affordable housing trust fund in care of the Municipal Treasurer 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 establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC and in COAH, utilizing the regional income limits established
by COAH.
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 10% 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
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:
7.
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
8.
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
9.
The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price, established by the Administrative Agent be lower than the last
recorded purchase price.
10.
The rent of low- and moderate-income units may be increased annually
based on the percentage increase in the Housing Consumer Price Index
for the United States. This increase shall not exceed 9% in any one
year. Rents for units constructed pursuant to low-income housing tax
credit regulations shall be indexed pursuant to the regulations governing
low-income housing tax credits.
11.
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by DCA for its Section 8 program.
[Ord. No. 10-16 § 7]
The following general guidelines apply to all newly constructed
developments that contain low- and moderate-income housing units,
including any currently unanticipated future developments that will
provide low- and moderate-income housing units.
a.
The Borough of Elmwood Park 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 1 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 Counties.
d.
The Administrative Agent designated by the Borough of Elmwood Park
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 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 Borough of Elmwood
Park.
[Ord. No. 10-16 § 7]
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:
b.
Additional provisions related to occupancy standards (if any) shall
be provided in the municipal Operating Manual.
[Ord. No. 10-16 § 8]
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 Elmwood Park 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 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. 10-16 § 9]
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.
[Ord. No. 10-16 § 10]
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 eighty 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, homeowner and private mortgage insurance
and condominium or homeowners' association fees, as applicable) does
not exceed 33% of the household's certified monthly income.
[Ord. No. 10-16 § 11]
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).
[Ord. No. 10-16 § 12]
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 Elmwood Park 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 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 Morris. A copy of the filed document shall be provided
to the Administrative Agent within 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:
[Ord. No. 10-16 § 13]
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 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.
[Ord. No. 10-16 § 14]
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,
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 paragraphs b1 through b5 above with
the Administrative Agent, who shall counsel the household on budgeting.
[Ord. No. 10-16 § 15]
a.
The position of Municipal Housing Liaison (MHL) for the Borough of
Elmwood Park is established by this section. The Borough Committee
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 the Borough
of Elmwood Park.
2.
The person appointed as the MHL must be reported to 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 Elmwood Park, 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 Elmwood Park's Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required
by COAH;
(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 COAH.
b.
The Borough of Elmwood Park shall designate by resolution of the
Borough Council, subject to the approval of COAH, one 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 COAH. 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).
d.
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, 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.
[Ord. No. 10-16 § 16]
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 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 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 the penalty provided for in Chapter 1, Section 1-5, 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 Borough of Elmwood Park 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 Sheriffs 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 Sheriffs sale. In the event that the proceeds
from the Sheriffs sale are insufficient to reimburse the municipality
in full as aforesaid, the violating owner shall be personally responsible
for and to the extent of such deficiency, in addition to any and all
costs incurred by the municipality in connection with collecting such
deficiency. In the event that a surplus remains after satisfying all
of the above, such surplus, if any, shall be placed in escrow by the
municipality for the owner and shall be held in such escrow for a
maximum period of two years or until such earlier time as the owner
shall make a claim with the municipality for such. Failure of the
owner to claim such balance within the two-year period shall automatically
result in a forfeiture of such balance to the municipality. Any interest
accrued or earned on such balance while being held in escrow shall
belong to and shall be paid to the municipality, whether such balance
shall be paid to the owner or forfeited to the municipality.
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 Sheriffs 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 Sheriffs sale shall not be entitled to any right of redemption.
f.
If there are no bidders at the Sheriffs 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 Sheriffs 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. 10-16 § 17]
Appeals from all decisions of an Administrative Agent designated
pursuant to this section shall be filed in writing with the Executive
Director of COAH.