[Ord. No. 14-06 § Preamble]
The Zoning Ordinance of the Borough of Matawan is hereby amended
to include provisions addressing Matawan's constitutional obligation
to provide for its fair share of low- and moderate-income housing,
consistent with N.J.A.C. 5:97-1, et seq., as may be amended and supplemented,
and N.J.A.C. 5:80-26.1, et seq., as may be amended and supplemented,
and pursuant to the New Jersey Fair Housing Act of 1985 and the Rules
of the New Jersey Council on Affordable Housing (COAH). This Ordinance
is intended to provide assurances 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 Ordinance shall apply except where inconsistent with applicable
law.
The Borough of Matawan shall file annual monitoring reports
regarding the status of any affordable housing developments in the
Borough with COAH or its successor agencies as required by N.J.A.C.
5:96 et seq. Any report filed by Matawan with COAH and any report
prepared by COAH in response shall be available to the public at Matawan
Borough Hall, Borough Clerk's Office, 201 Main Street, Matawan, New
Jersey, 07747, at the COAH offices at P.O. Box 813, 101 South Broad
Street, Trenton, New Jersey 08625-0813 and on COAH's website.
[Ord. No. 14-06 § 1]
The Borough of Matawan has a fair share obligation consisting
of a 141 unit prior round obligation and a 14 unit rehabilitation
obligation, as of the year 2000. The Borough's third round obligation
and 2010 rehabilitation obligation have yet to be determined.
[Ord. No. 14-06 § 2]
The following terms when used in this article shall have the
meanings given in this section:
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 Sub Code, N.J.A.C. 5:23-7.
Shall mean the entity responsible for the administration
of affordable units in accordance with this article, N.J.A.C. 5:96,
N.J.A.C. 5:97 and UHAC (N.J.A.C. 5:80-26).
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
new restricted units in an affordable housing development are affordable
to low- and moderate-income households.
Shall mean a sales price or rent level that is within the
means of a low- or moderate income household as defined in N.J.A.C.
5:97-9 and in the case of an ownership unit, that the sales price
for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6,
as may be amended and supplemented, and, in the case of a rental unit,
that the rent for the unit conforms to the standards set forth in
N.J.A.C. 5:80-26.12, as may be amended and supplemented.
Shall mean a housing development of which all or a portion
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
housing 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 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 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 of age or older; or 2) at least
80% of the units are occupied by one person that is 55 years of age
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 a facility that is 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 State of New Jersey Council on Affordable
Housing.
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-l, et seq.
Shall mean a development containing both affordable units
and market rate units. This term includes, but is not limited to:
new construction, the conversion of a nonresidential structure to
residential use and the creation of new affordable units through the
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
housing region, 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 and the transfer of ownership by 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 an 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, et seq.
Shall mean a household with a total gross annual household
income equal to 30% or less of the median household income for the
applicable housing region.
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 purposes of the rehabilitation
program.
[Ord. No. 14-06 § 3]
a.
Matawan has or will establish the following programs to address its
rehabilitation obligation and a portion of its prior round obligation:
2.
Inclusionary residential development of a portion of Block 120, Lot
5.01.
3.
In addition to the foregoing, any property in the Borough of Matawan
that is currently zoned for nonresidential uses and is subsequently
rezoned for residential purposes or receives a use variance to permit
residential development shall provide an affordable housing set-aside
of 15% if the affordable units will be for rent and 20% if the affordable
units will be for sale.
[Ord. No. 14-06 § 4]
a.
The following general guidelines shall apply to all developments,
existing and proposed, that contain low- and moderate-income housing
units, including any currently unanticipated future developments that
will provide low- and moderate-income housing units.
1.
Matawan'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. The rehabilitation program
shall include an owner occupancy rehabilitation program and a renter
occupancy rehabilitation program.
2.
Matawan will designate an Administrative Agent to administer its
entire rehabilitation program.
3.
Both owner occupied and renter occupied units shall be eligible for
rehabilitation funds.
4.
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 shall be enforced with a lien, and, for
renter-occupied units, the control period shall be enforced with a
deed restriction.
5.
Matawan shall dedicate a minimum of $10,000 for the hard costs associated
with each unit to be rehabilitated through the rehabilitation program,
and shall reserve sufficient additional funds to cover required administrative
costs associated with the program.
6.
The Borough of Matawan shall adopt a resolution committing to fund
any shortfall in the rehabilitation program.
7.
The Administrative Agent shall provide a rehabilitation manual for
the rehabilitation program to be adopted by resolution of the Governing
Body. The manual shall be continuously available for public inspection
in the Office of the Borough Clerk and in the office of the Administrative
Agent.
8.
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and UHAC, but shall be administered in accordance with the following:
(a)
Upon the initial rental of a vacant unit subsequent to rehabilitation,
or if a renter-occupied unit is re-rented 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 to be 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 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. 14-06 § 5]
Matawan has prepared and adopted zoning regulations governing
a new inclusionary residential zone. The inclusionary residential
zone provides for a 15% set-aside of restricted rental units or a
20% set-aside of restricted ownership units.
In all inclusionary developments constructed in the Borough
of Matawan, 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
|
[Ord. No. 14-06 § 6]
a.
New Construction.
1.
Low/Moderate Split and Bedroom Distribution of Affordable Housing
Units:
(a)
The fair share obligation shall be divided equally between low-
and moderate- income units, except that where there is an odd number
of affordable housing units, the extra unit shall be a low-income
unit. At least 10% of all restricted rental 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.
(b)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units.
(c)
Affordable developments that are not age-restricted shall be
structured in conjunction with realistic market demands such that:
(1)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units shall be
two bedroom units;
(3)
At least 20% of all low- and moderate-income units shall be
three bedroom units; and
(4)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(d)
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.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
2.
Accessibility Requirements:
(a)
The first floor of all restricted townhouse dwelling units and
all restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Sub Code, N.J.A.C.
5:23-7 and N.J.A.C. 5:97-3.14.
(b)
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:
(1)
An adaptable toilet and bathing facility on the first floor;
(2)
An adaptable kitchen on the first floor;
(3)
An interior accessible route of travel on the first floor;
(4)
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;
(5)
An interior accessible route of travel between stories within
an individual unit, except that if all of the terms of paragraphs
(b)(1) through (b)(4) above have been satisfied, an interior accessible
route of travel shall not be required between stories within an individual
unit; and
(6)
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 Sub Code, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14, or
evidence that Matawan has collected funds from the developer sufficient
to make 10% of the adaptable entrances in the development accessible:
[a]
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.
[b]
To this end, the builder of restricted units shall
deposit funds within the Borough of Matawan's Affordable Housing Trust
Fund sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[c]
The funds deposited under paragraph (6)[b] above
shall be used by the Borough of Matawan for the sole purpose of making
the adaptable entrance of an affordable unit accessible when requested
to do so by a person with a disability who occupies or intends to
occupy the unit and requires an accessible entrance.
[d]
The developer of the restricted units shall submit
a design plan and cost estimate for the conversion of adaptable to
accessible entrances to the Construction Official of the Borough of
Matawan.
[e]
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 Sub Code, 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's Affordable Housing
Trust Fund in care of the Borough Treasurer who shall ensure that
the funds are deposited into the Affordable Housing Trust Fund and
appropriately earmarked.
[f]
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 Sub Code, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14.
4.
Maximum Rents and Sales Prices:
(a)
In establishing rents and sales prices of affordable housing
units, the Administrative Agent shall follow the procedures set forth
in UHAC, utilizing the regional income limits established by COAH.
(b)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(c)
The developers and/or municipal sponsors of restricted rental
units shall establish at least one rent for each bedroom type for
both low-income and moderate-income units, provided that at least
10% of all low- and moderate-income rental units shall be affordable
to very low-income households.
(d)
The maximum sales price of restricted ownership units within
each affordable development shall be affordable to households earning
no more than 70% of median income, and each affordable development
must achieve an affordability average of 55% for restricted ownership
units; in achieving this affordability average, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(e)
In determining the initial sales prices and rent levels for
compliance with the affordability average requirements for restricted
units other than assisted living facilities and age restricted developments,
the following standards shall be used:
(1)
A studio shall be affordable to a one-person household;
(2)
A one-bedroom unit shall be affordable to one and one-half person
household;
(3)
A two-bedroom unit shall be affordable to a three-person household;
(4)
A three-bedroom unit shall be affordable to a four and one-half
person household; and
(5)
A four-bedroom unit shall be affordable to a six-person household.
(f)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age restricted developments, the following
standards shall be used:
(g)
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 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.
(h)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(i)
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.
(j)
The rent of low- and moderate-income units may be increased
annually based on the permitted 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.
[Ord. No. 14-06 § 7]
a.
Utilities.
1.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
2.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by DCA for its Section 8 program.
[Ord. No. 14-06 § 8]
a.
In referring certified households to specific restricted units, the
Administrative Agent shall, to the extent feasible and without causing
an undue delay in the occupancy of a unit, strive to:
[Ord. No. 14-06 § 9]
a.
Control Periods for Restricted Ownership Units and Enforcement Mechanisms.
1.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this article for a period of at least 30 years, until Matawan takes
action to release the unit from such requirements; prior to such action,
a restricted ownership unit must remain subject to the requirements
of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
2.
The affordability control period for a restricted ownership unit
shall commence on the date the initial certified household takes title
to the unit.
3.
Prior to the issuance of the initial Certificate of Occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Administrative Agent shall determine
the restricted price for the unit and shall also determine the non-restricted,
fair market value of the unit based on either an appraisal or the
unit's equalized assessed value without the restrictions in place.
4.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the 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 restrictions set forth in this article, an amount
equal to the difference between the unit's non-restricted fair market
value and its restricted price, and the recapture note shall be secured
by a recapture lien evidenced by a duly recorded mortgage on the unit.
5.
The affordability controls set forth in this article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
6.
A restricted ownership unit shall be required to obtain a Continuing
Certificate of Occupancy or a certified statement from the Construction
Official stating that the unit meets all Code standards upon the first
transfer of title following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
[Ord. No. 14-06 § 10]
a.
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:
1.
The initial purchase price for a restricted ownership unit shall
be approved by the Administrative Agent.
2.
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
3.
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.
4.
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 anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See subsection 34-110.14.
[Ord. No. 14-06 § 11]
a.
Buyer Income Eligibility.
1.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
2.
Notwithstanding the foregoing, however, the Administrative Agent
may, subject to COAH's approval, permit moderate-income purchasers
to buy low-income units in housing markets determined by COAH to have
an insufficient number of eligible low-income purchasers to permit
prompt occupancy of the units. All such low-income units to be sold
to moderate income households shall retain the required pricing restrictions
for low-income units.
3.
A certified household that purchases a restricted ownership unit
must occupy it as the certified household's principal residence and
shall not lease the unit; provided, however, that the Administrative
Agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to a certified
household for a period not to exceed one year.
4.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
[Ord. No. 14-06 § 12]
a.
Limitations on Indebtedness Secure by Ownership Unit; Subordination.
1.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Administrative Agent
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Administrative Agent
shall issue such determination prior to the owner incurring such indebtedness.
2.
With the exception of First Purchase Money Mortgages, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Administrative Agent in accordance with N.J.A.C. 5:80-26.6(b).
[Ord. No. 14-06 § 13]
a.
Capital Improvements to Ownership Units.
1.
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 made since the purchase of the unit. Eligible
capital improvements shall be those that render the unit suitable
for a larger household or that add an additional bathroom. In no event
shall the maximum sales price of an improved housing unit exceed the
limits of affordability for the larger household.
2.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Administrative
Agent at the time of the signing of the agreement to purchase. The
purchase of central air conditioning installed subsequent to the initial
sale of the unit and not included in the base price may be made a
condition of the unit resale provided the price, which shall be subject
to 10-year, straight-line depreciation, has been approved by the Administrative
Agent. Unless otherwise approved by the Administrative Agent, the
purchase of any property other than central air conditioning shall
not be made a condition of the unit resale. The owner and the purchaser
must personally certify at the time of closing that no unapproved
transfer of funds for the purpose of selling and receiving property
has taken place at the time of or as a condition of resale.
[Ord. No. 14-06 § 14]
a.
Control Periods for Restricted Rental Units.
1.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to such controls
and to the requirements of this article for a period of at least 30
years from the date the unit is initially occupied by a certified
household. The control period on a restricted unit shall terminate
only at such time as the municipality opts to release the unit from
the restrictions in accordance with N.J.A.C. 5:80-26.ll(e), except
that a low- or moderate-income household residing in a restricted
rental unit at the termination of the control period shall be permitted
to continue to reside in the unit for an indefinite period after the
termination of the control period at the restricted rent level provided
for by N.J.A.C. 5:80-26.1 et seq., and the control period shall be
deemed to have been automatically extended on that unit until the
termination of such residency, provided that the occupant household
continues to earn a gross annual income of less than 80% of the median
income for the applicable COAH housing region. If at any time following
the termination of the control period, the occupant household income
is found to exceed 80% of the regional median income, the rental rate
restriction shall expire at the later of the next scheduled lease
renewal or 60 days. Nothing herein shall preclude the owner and the
Borough from mutually agreeing to extend the control period on some
or all of the low- and moderate-income units in the development. During
the entire period that a restricted rental unit is subject to controls,
it shall comply with and remain subject to the requirements of N.J.A.C.
5:80-26.1, as may be amended and supplemented.
2.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Monmouth. A copy of the filed document shall be provided
to the Administrative Agent within 30 days of the receipt of a Certificate
of Occupancy.
3.
A restricted rental unit shall remain subject to the affordability
controls of this article despite the occurrence of any of the following
events:
[Ord. No. 14-06 § 15]
a.
Rent Restrictions for Rental Units; Leases.
1.
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.
2.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Administrative Agent.
3.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the Administrative Agent to be applied to
the costs of administering the controls applicable to the unit as
set forth in this article.
[Ord. No. 14-06 § 16]
a.
Tenant Income Eligibility.
1.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(a)
Very low-income rental units shall be reserved tor households
with a gross household income less than or equal to 30% of median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
2.
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 thirty-five
(35%) (forty percent (40%) percent for age-restricted units) of the
household's eligible monthly income as determined pursuant to N.J.A.C.
5:80-26.16, as may be amended and supplemented; provided, however,
that this limit may be exceeded if one or more of the following circumstances
exists:
(a)
The household currently pays more than 35% (40% for households
eligible for age-restricted units) of its gross household income for
rent, and the proposed rent will reduce its housing costs;
(b)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
The household documents 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.
3.
The applicant shall file documentation sufficient to establish the
existence of the circumstances in paragraphs 1(a) through 2(e) above
with the Administrative Agent, who shall counsel the household on
budgeting.
[Ord. No. 14-06 § 17]
a.
Municipal Housing Liaison.
1.
COAH requires Matawan to appoint a specific municipal employee to
serve as a Municipal Housing Liaison responsible for administering
the affordable housing program, including affordability controls,
the Affirmative Marketing Plan, monitoring and reporting, and, where
applicable, supervising any contracted Administrative Agent. Matawan
has adopted an ordinance creating the position of Municipal Housing
Liaison. Matawan has, by resolution appointed a Municipal Housing
Liaison. The Municipal Housing Liaison is appointed by the Governing
Body and may be a full- or part-time municipal employee. The Municipal
Housing Liaison shall be approved by COAH and shall be duly qualified
before assuming the duties of Municipal Housing Liaison.
2.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Matawan,
including the following responsibilities which may not be contracted
out to the Administrative Agent:
(a)
Serving as Matawan's primary point of contact for all inquiries
from the State, affordable housing providers, Administrative Agents
and interested households;
(b)
Monitoring the status of all restricted units in the Borough
of Matawan;
(c)
Compiling, verifying and submitting annual monitoring reports
as required by COAH;
(d)
Coordinating meetings with affordable housing providers and
Administrative Agents, as needed; and
(e)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by COAH.
3.
Subject to the approval of the COAH, the Borough of Matawan shall
designate one or more Administrative Agent(s) to administer newly
constructed affordable units in accordance with N.J.A.C. 5:96, N.J.A.C.
5:97 and UHAC. An Operating Manual shall be provided by the Administrative
Agent(s) to be adopted by resolution of the Governing Body and subject
to approval by the COAH. The Operating Manuals shall be available
for public inspection in the Office of the Borough Clerk and in the
office(s) of the Administrative Agent(s). The Municipal Housing Liaison
shall supervise the contracting Administrative Agent(s).
[Ord. No. 14-06 § 18]
a.
The Administrative Agent shall perform the duties and responsibilities
of an Administrative Agent as set forth in UHAC, including those set
forth in Sections 5:80-26.14, 16 and 18 thereof, which includes:
1.
Affirmative Marketing:
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Borough of Matawan and the provisions of N.J.A.C. 5:80-26.15;
and
(b)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
2.
Household Certification:
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
Conducting interviews and obtaining sufficient documentation
of gross income and assets upon which to base a determination of income
eligibility for a low- or moderate income unit;
(c)
Providing written notification to each applicant as to the determination
of eligibility or non-eligibility;
(d)
Requiring that all certified applicants for restricted units
execute a certificate substantially in the form, as applicable, of
either the ownership or rental certificates set forth in Appendices
J and K of N.J.A.C. 5:80-26.1 et seq.;
(e)
Creating and maintaining a referral list of eligible applicant
households living in the housing region and eligible applicant households
with members working in the housing region where the units are located;
and
(f)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Borough of Matawan when referring households
for certification to affordable units.
3.
Affordability Controls:
(a)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(b)
Creating and maintaining a file on each restricted unit for
its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Monmouth
County Register of Deeds or Monmouth County Clerk's office after the
termination of the affordability controls for each restricted unit;
(d)
Communicating with lenders regarding foreclosures; and
(e)
Ensuring the issuance of Continuing Certificates of Occupancy
or certifications pursuant to N.J.A.C. 5:80-26.10.
4.
Resales and Re-Rentals:
(a)
Instituting and maintaining an effective means of communicating
information between owners and the Administrative Agent regarding
the availability of restricted units for resale or re-rental; and
(b)
Instituting and maintaining an effective means of communicating
information to low- and moderate-income households regarding the availability
of restricted units for resale or re-rental.
5.
Processing Requests from Unit Owners:
(a)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this article;
(b)
Reviewing and approving requests to increase sales prices from
owners of restricted units who wish to make capital improvements to
the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air conditioning
systems;
(c)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(d)
Making determinations on requests by owners of restricted units
for hardship waivers.
6.
Enforcement:
(a)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it.
(b)
Securing from all developers and sponsors of restricted units,
at the earliest point of contact in the processing of the project
or development, written acknowledgement of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
Administrative Agent;
(c)
The posting annually in all rental properties, including two-family
homes, of a notice as to the maximum permitted rent together with
the telephone number of the Administrative Agent where complaints
of excess rent or other charges can be made;
(d)
Sending annual mailings to all owners of affordable dwelling
units reminding them of the notices and requirements outlined in N.J.A.C.
5:80-26.18(d)4;
(e)
Establishing a program for diverting unlawful rent payments
to the municipality's Affordable Housing Trust Fund or other appropriate
municipal fund approved by the DCA; and
(f)
Creating and publishing a written operating manual, as approved
by COAH, setting forth procedures for administering the affordability
controls.
7.
Additional Responsibilities:
(a)
The Administrative Agent shall have the authority to take all
actions necessary and appropriate to carry out its responsibilities,
hereunder.
(b)
The Administrative Agent shall prepare monitoring reports for
submission to the Municipal Housing Liaison in time for their submission
by the Municipal Housing Liaison to COAH, as required by COAH.
(c)
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing as offered or approved by COAH.
[Ord. No. 14-06 § 19]
a.
Affirmative Marketing Requirements.
1.
The Borough of Matawan shall adopt by resolution an Affirmative Marketing
Plan that is compliant with N.J.A.C. 5:80-26.15, as may be amended
and supplemented, and that is subject to approval by COAH.
2.
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 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 marketing activities throughout
COAH Housing Region 4 and is required to be followed throughout the
period of restriction.
3.
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 4,
comprised of Monmouth, Ocean and Mercer Counties.
4.
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and re-rentals. The Administrative Agent designated by
the Borough of Matawan shall implement the Affirmative Marketing Plan
to assure the affirmative marketing of all affordable units.
5.
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.
6.
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the Administrative Agent shall consider
the use of language translations where appropriate.
7.
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
8.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
the municipal building and the municipal library in the municipality
in which the units are located; and the developer's rental office.
Applications shall be mailed to prospective applicants upon request.
9.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
[Ord. No. 14-06 § 20]
a.
Enforcement of Regulations.
1.
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an Owner, Developer or Tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
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.
2.
After providing written notice of a violation to an owner, developer
or tenant of a low or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action(s) against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(a)
The municipality may file an action in Court 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
adjudged by the Court to have violated any provision of the regulations
governing affordable housing units the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the Court:
(1)
A fine of not more than $500 per day or imprisonment
for a period not to exceed 90 days, or both, provided that each and
every day that the violation continues or exists shall be considered
a separate and specific violation of these provisions and not a continuation
of the initial offense;
(2)
In the case of an owner who has rented a low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment into the Borough of Matawan Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(3)
In the case of an owner who has rented a low- or
moderate-income unit in violation of the regulations governing affordable
housing units, payment of an innocent tenant's reasonable relocation
costs, as determined by the Court.
(b)
The municipality may file an action in Superior Court seeking
a judgment that would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any such 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- or moderate-income unit.
(1)
The judgment shall be enforceable, at the option
of the municipality, by means of an execution sale by the Sheriff,
at which time the low- or 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 his right to possession terminated as well as his title
conveyed pursuant to the Sheriffs' sale.
(2)
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- or 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 the full 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.
(3)
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- or 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.
(4)
If there are no bidders at the Sheriff's sale,
or if insufficient amounts are bid to satisfy the First Purchase Money
Mortgage and any prior liens, the municipality may acquire title to
the low- or 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-
or 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.
(5)
Failure of the low- or moderate-income unit to
be either sold at the Sheriff's sale or acquired by the municipality
shall obligate the owner to accept an offer to purchase from any qualified
purchaser which may be referred to the owner by the municipality,
with such offer to purchase being equal to the maximum resale price
of the low- or moderate income unit as permitted by the regulations
governing affordable housing units.
(6)
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. 14-06 § 21]
Appeals from all decisions of an Administrative Agent appointed
pursuant to this article shall be filed in writing with the Executive
Director of COAH and the Commissioner of the Department of Community
Affairs of the State of New Jersey.
