[Ord. No. 10-16 § 2]
The following terms when used in this section shall have the
meanings given in this subsection:
ACCESSORY APARTMENT
Shall mean a self-contained residential dwelling unit with
a kitchen, sanitary facilities, sleeping quarters and a private entrance,
which is created within an existing home, or through the conversion
of an existing accessory structure on the same site, or by an addition
to an existing home or accessory building, or by the construction
of a new accessory structure on the same site.
ACT
Shall mean the Fair Housing Act of 1985, P.L. 1985, c. 222
[N.J.S.A. 52:27D-301 et seq.]
ADAPTABLE
Shall mean constructed in compliance with the technical design
standards of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
Shall mean the entity responsible for the administration
of affordable units in accordance with this section, N.J.A.C. 5:96,
N.J.A.C. 5:97 and N.J.A.C. 5:80-26.1 et seq.
AFFIRMATIVE MARKETING
Shall mean a regional marketing strategy designed to attract
buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
Shall mean the average percentage of median income at which
restricted units in an affordable housing development are affordable
to low- and moderate-income households.
AFFORDABLE
Shall mean, a sales price or rent within the means of a low-
or moderate-income household as defined in N.J.A.C. 5:97-9; in the
case of an ownership unit, that the sales price for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended
and supplemented, and, in the case of a rental unit, that the rent
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12,
as may be amended and supplemented.
AFFORDABLE DEVELOPMENT
Shall mean a housing development all or a portion of which
consists of restricted units.
AFFORDABLE HOUSING DEVELOPMENT
Shall mean a development included in the Housing Element
and Fair Share Plan, and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
development.
AFFORDABLE HOUSING PROGRAM(S)
Shall mean any mechanism in a municipal Fair Share Plan prepared
or implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
Shall mean a housing unit proposed or created pursuant to
the Act, credited pursuant to N.J.A.C. 5:97-4, and/or funded through
an affordable housing trust fund.
AGE-RESTRICTED UNIT
Shall mean a housing unit designed to meet the needs of,
and exclusively for, the residents of an age-restricted segment of
the population such that: 1) all the residents of the development
where the unit is situated are 62 years or older; or 2) at least 80%
of the units are occupied by one person that is 55 years or older;
or 3) the development has been designated by the Secretary of the
U.S. Department of Housing and Urban Development as "housing for older
persons" as defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. § 3607.
AGENCY
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.).
ASSISTED LIVING RESIDENCE
Shall mean a facility licensed by the New Jersey Department
of Health and Senior Services to provide apartment-style housing and
congregate dining and to assure that assisted living services are
available when needed for four 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
Shall mean a household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
COAH
Shall mean the Council on Affordable Housing, which is in,
but not of, the Department of Community Affairs of the State of New
Jersey, that was established under the New Jersey Fair Housing Act
(N.J.S.A. 52:27D-301 et seq.).
DCA
Shall mean the State of New Jersey Department of Community
Affairs.
DEFICIENT HOUSING UNIT
Shall mean a housing unit with health and safety code violations
that require the repair or replacement of a major system. A major
system includes weatherization, roofing, plumbing (including wells),
heating, electricity, sanitary plumbing (including septic systems),
lead paint abatement and/or load bearing structural systems.
DEVELOPER
Shall mean any person, partnership, association, company
or corporation that is the legal or beneficial owner or owners of
a lot or any land proposed to be included in a proposed development
including the holder of an option to contract or purchase, or other
person having an enforceable proprietary interest in such land.
DEVELOPMENT
Shall mean the division of a parcel of land into two or more
parcels, the construction, reconstruction, conversion, structural
alteration, relocation, or enlargement of any use or change in the
use of any building or other structure, or of any mining, excavation
or landfill, and any use or change in the use of any building or other
structure, or land or extension of use of land, for which permission
may be required pursuant to N.J.S.A. 40:55D-1 et seq.
INCLUSIONARY DEVELOPMENT
Shall mean a development containing both affordable units
and market rate units. This term includes, but is not necessarily
limited to: new construction, the conversion of a nonresidential structure
to residential and the creation of new affordable units through the
reconstruction of a vacant residential structure.
LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income equal to 50% or less of the median household income.
LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a low-income
household.
MAJOR SYSTEM
Shall mean the primary structural, mechanical, plumbing,
electrical, fire protection, or occupant service components of a building
which include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load bearing structural systems.
MARKET-RATE UNITS
Shall mean housing not restricted to low- and moderate-income
households that may sell or rent at any price.
MEDIAN INCOME
Shall mean the median income by household size for the applicable
county, as adopted annually by COAH.
MODERATE-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income in excess of 50% but less than 80% of the median household
income.
MODERATE-INCOME UNIT
Shall mean a restricted unit that is affordable to a moderate-income
household.
NON-EXEMPT SALE
Shall mean any sale or transfer of ownership other than the
transfer of ownership between husband and wife; the transfer of ownership
between former spouses ordered as a result of a judicial decree of
divorce or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class A
beneficiary arid the transfer of ownership by court order.
RANDOM SELECTION PROCESS
Shall mean a process by which currently income-eligible households
are selected for placement in affordable housing units such that no
preference is given to one applicant over another except for purposes
of matching household income and size with an appropriately priced
and sized affordable unit (e.g., by lottery).
REGIONAL ASSET LIMIT
Shall mean the maximum housing value in each housing region
affordable to a four-person household with an income at 80% of the
regional median as defined by COAH's adopted Regional Income Limits
published annually by COAH.
REHABILITATION
Shall mean the repair, renovation, alteration or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
RENT
Shall mean the gross monthly cost of a rental unit to the
tenant, including the rent paid to the landlord, as well as an allowance
for tenant-paid utilities computed in accordance with allowances published
by DCA for its Section 8 program. In assisted living residences, rent
does not include charges for food and services.
RESTRICTED UNIT
Shall mean a dwelling unit, whether a rental unit or ownership
unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
UHAC
Shall mean the Uniform Housing Affordability Controls set
forth in N.J.A.C. 5:80-26.1 et seq.
VERY LOW-INCOME HOUSEHOLD
Shall mean a household with a total gross annual household
income equal to 30% or less of the median household income.
VERY LOW-INCOME UNIT
Shall mean a restricted unit that is affordable to a very
low-income household.
WEATHERIZATION
Shall mean Building insulation (for attic, exterior walls
and crawl space), siding to improve energy efficiency, replacement
storm windows, replacement storm doors, replacement windows and replacement
doors, and is considered a major system for rehabilitation.
[Ord. No. 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 § 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:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one and one-half-
person household; and
(c)
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
7. The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowners'
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
8. The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
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 § 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 § 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.