[1]
Editor's Note: Former § 29-1, Affordable Housing,
added 10-24-2019 by Ord. No. 2019-15, as amended, was repealed by
Ord. No. 2020-22.
[Added 11-12-2020 by Ord.
No. 2020-22]
The Township of Chatham shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of the Court-approved settlement agreement:
a.
Beginning on December 13, 2019, and on every anniversary of that
date through December 13, 2025, the Township agrees to provide annual
reporting of its Affordable Housing Trust Fund activity to the New
Jersey Department of Community Affairs, Council on Affordable Housing,
or Local Government Services, or other entity designated by the State
of New Jersey, with a copy provided to FSHC and posted on the municipal
website, using forms developed for this purpose by the New Jersey
Department of Community Affairs ("NJDCA"), Council on Affordable Housing
("COAH"), or Local Government Services ("NJLGS"). The reporting shall
include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
b.
Beginning on December 13, 2019, and on every anniversary of that
date through February 1, 2025, the Township of Chatham agrees to provide
annual reporting of the status of all affordable housing activity
within the municipality through posting on the municipal website with
a copy of such posting provided to FSHC, using forms previously developed
for this purpose by COAH or any other forms endorsed by the Special
Master and FSHC.
c.
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Township of Chatham will post on its municipal website, with a copy
provided to FSHC, a status report as to its implementation of its
Housing Element and Fair Share Plan and an analysis of whether any
unbuilt sites or unfulfilled mechanisms continue to present a realistic
opportunity and whether any mechanisms to meet unmet need should be
revised or supplemented. Such posting shall invite any interested
party to submit comments to the municipality, with a copy to FSHC,
regarding whether any sites no longer present a realistic opportunity
and should be replaced and whether any mechanisms to meet unmet need
should be revised or supplemented. Any interested party may, by motion,
request a hearing before the Court regarding these issues.
d.
By December 13, 2020, and every third year thereafter, as required
by N.J.S.A. 52:27D-329.1, the Township will post on its municipal
website, with a copy provided to FSHC, a status report as to its satisfaction
of its very-low-income requirements, including its family very-low-income
requirements. Such posting shall invite any interested party to submit
comments to the municipality and FSHC on the issue of whether the
municipality has complied with its very-low-income and family very-low-income
housing obligations.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
All definitions contained in N.J.A.C. 5:96-1.1 et seq., as may be
amended by the decision in In re Adoption of N.J.A.C. 5:96 and 5:97
by NJ Council on Affordable Housing, 221 NJ 1 (2015) ("Mount Laurel
IV") or a court of competent jurisdiction, Procedural Rules of the
New Jersey Council on Affordable Housing, and N.J.A.C. 5:97-1.1. et
seq., as may be amended by the decision in Mount Laurel IV or a court
of competent jurisdiction, Substantive Rules of the New Jersey Council
on Affordable Housing, are hereby incorporated and adopted as if set
forth in full herein. For convenience, the following definitions are
provided for reference purposes. In the event of any conflict or amendment
to the New Jersey Administrative Code ("N.J.A.C."), the definitions
and rules duly promulgated pursuant to the Administrative Procedures
Act[1] shall govern this chapter.
[1]
Editor's Note: See N.J.S.A. 52:14B-1 et seq.
b.
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AFFORDABLE UNIT
AGE-RESTRICTED UNIT
1.
2.
3.
AGENCY
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED-LIVING RESIDENCE
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNITS
MEDIAN INCOME
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
NONEXEMPT SALE
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
SETTLEMENT AGREEMENTS
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
The following terms when used in this chapter shall have the meanings
given in this subsection:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity designated by the Township to administer affordable
units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C.
5:80-26).
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which new restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent level that is within the means of a
low- or moderate-income household, as defined within N.J.A.C. 5:93-7.4,
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.
A development included in or approved pursuant to the Housing
Element and Fair Share Plan or otherwise intended to address the Township's
fair share obligation and includes, but is not limited to, an inclusionary
development, a municipal construction project or a 100% affordable
housing development.
Any mechanism in a municipal fair share plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act and
approved for crediting by the Court and/or funded through an affordable
housing trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development wherein the unit is situated
are 62 years of age or older; or
At least 80% of the units are occupied by one person who is
55 years of age or older; or
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.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
A structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to, transitional facilities for the homeless; Class A, B, C, D and
E boarding homes as regulated by the State of New Jersey Department
of Community Affairs; residential health-care facilities as regulated
by the New Jersey Department of Health; group homes for the developmentally
disabled and mentally ill as licensed and/or regulated by the New
Jersey Department of Human Services; and congregate living arrangements.
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.
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
The Council on Affordable Housing, as established by the
New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
The State of New Jersey Department of Community Affairs.
A housing unit with health and safety code violations that
requires 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.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
included in a proposed development, including the holder of an option
to contract to purchase or other person having an enforceable proprietary
interest in such land.
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.
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 gut rehabilitation
or reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the regional median household income by household
size.
A restricted unit that is affordable to a low-income household.
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 and load-bearing structural
systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable housing
region, as adopted annually by COAH or a successor entity approved
by the Court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the regional median household income
by household size.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a Class A
beneficiary and the transfer of ownership by court order.
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).
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 duly adopted regional income limits published annually
by COAH or a successor entity.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
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.
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 amended and supplemented, but does not include a market-rate unit
financed under UHORP or MONI.
The settlement agreement between the Township of Chatham
and Fair Share Housing Center, Inc., dated December 13, 2018, and
the July 23, 2020, amended settlement agreement In the Matter of the
Application of the Township of Chatham, County of Morris, Docket No.
MRS-1659-15.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26 et seq.
A household with a total gross annual household income equal
to 30% or less of the regional median household income by household
size.
A restricted unit that is affordable to a very-low-income
household.
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 a rehabilitation
program.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Chatham pursuant
to the Township's most recently adopted Housing Element and Fair Share
Plan.
b.
Moreover, this chapter shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
c.
This chapter specifically applies to the Township of Chatham's third
round affordable housing obligations identified in the settlement
agreements, which sets forth the following affordable housing obligations.
|
Component of Third Round Obligation
|
Kinsey
|
Court
|
|---|---|---|
|
Rehabilitation share
|
63
|
6
|
|
Prior round obligation (pursuant to N.J.A.C. 5:93)
|
83
|
83
|
|
Third round (1999-2025)
|
387
|
387
|
d.
This chapter applies to the Township of Chatham's third round affordable
housing compliance mechanisms that are identified in the settlement
agreements, which sets forth the following affordable housing compliance
techniques:
3.
Third round prospective share.
(a)
One hundred percent affordable housing project (24 units) located
on Block 48.16, Lot 117.27 (aka Skate Park or Arbor Green at Chatham).
(b)
At least 59 and up to 62 units at the 100% municipally sponsored
multifamily rental development at 522 Southern Boulevard, Block 128,
Lot 2.
(c)
Up to one four-bedroom group home at 482 River Road, Block 62,
Lot 71.
(d)
Up to one four-bedroom group home at 490 River Road, Block 62.
Lot 70.
(e)
Up to one four-bedroom group home on Hillside Avenue, Block
67, Lots 17 and 17.01, which is to be subdivided.
(f)
Extension of affordability controls at Vernon Grove Condominium
for 72 family for-sale units.
(g)
The creation of a mandatory set-aside ordinance for single-family
and multifamily development at a gross density of six units per acre
or more that requires a 20% set-aside for affordable housing units
for both sale and rental developments.
(h)
R-12 Inclusionary Overlay Zone permitting family rental or for-sale
units on Block 128, Lot 9, at 12 units per acre with a 15% set-aside
for rental development and 20% set-aside for for-sale development.
[Added 11-12-2020 by Ord.
No. 2020-22]
The Township of Chatham has determined that it will use the
following mechanisms to satisfy its affordable housing obligations:
a.
A rehabilitation program.
1.
The Township of Chatham'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.
The Township of Chatham will address its rehabilitation requirement
of six units through its participation in the Morris County Homeowner
Rehabilitation Program.
4.
The program is maintained by the Morris County Division of Community
Development. The program is funded through the U.S. Department of
Housing and Urban Development (HUD). This program is a cooperative
effort of the federal government through the Morris County Board of
Chosen Freeholders and 37 municipalities to meet housing and neighborhood
needs throughout the county. The Housing Rehabilitation Program is
only one of the many activities receiving funding through this annual
grant. Funds are to be used for major repairs or conditions related
to health or safety. Examples of work: roof replacement, furnace replacement,
upgrade electrical, construct new well or septic, sewer or water hook-ups,
provide handicapped access; and type of assistance: no interest, no
payment six-year or ten-year forgivable loan (term is dependent on
amount of assistance).
5.
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.
6.
The Township of Chatham shall dedicate a minimum of $10,000 from
its Housing Trust Fund for each unit to be rehabilitated through this
program, reflecting the minimum hard cost of rehabilitation for each
unit.
7.
The Township of Chatham shall designate, subject to the approval
of COAH, the Morris County Division of Community Development to administer
the rehabilitation program in accordance with N.J.A.C. 5:96 and 5:97.
The county 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 county.
8.
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.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
The administration of an alternative living arrangement shall be
in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
b.
With the exception of units established with capital funding through
a twenty-year operating contract with the Department of Human Services,
Division of Developmental Disabilities, alternative living arrangements
shall have at least thirty-year controls on affordability in accordance
with UHAC, unless an alternative commitment is approved by the Court.
c.
The service provider for the alternative living arrangement shall
act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
Paragraph 8 of the December 13, 2018, settlement agreement requires the Township of Chatham to adopt a Township-wide ordinance that requires any new single-family or multifamily residential development in the Township, whether rental or for-sale, of six units or more to include a set-aside for very-low-, low- and moderate-income households of not less than 20%. Consistent with those requirements, this section hereby requires that any new multifamily or single-family attached residential development resulting in six or more new residential units, permitted by zoning, through variance, or through adoption of a redevelopment plan, at a gross density of six units or greater per acre shall include a mandatory 20% set-aside of affordable housing units. Such developments include any residential portion of a mixed-use development, part of a redevelopment plan, or areas in need of redevelopment or rehabilitation. Nothing in this § 29-1.6a shall preclude the Township from requiring an affordable housing set-aside in a development not required to have a set-aside pursuant to this subsection consistent with N.J.S.A. 52:27D-311(h) and other applicable law. A property shall not be permitted to be subdivided so as to avoid meeting this requirement.
b.
This Township-wide mandatory set-aside requirement does not supersede the effects or requirements of any inclusionary overlay zoning districts. This Township-wide mandatory set-aside requirement does not preclude the Township from imposing an affordable housing set-aside, consistent with N.J.S.A. 52:27D-311(h) and other applicable law, in a development not required by § 29-1.6a above to have a set-aside. This Township-wide mandatory set-aside requirement does not create any entitlement for a property owner or applicant for a zoning amendment, variance or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation, or for approval of any particular proposed project. No property shall be permitted to be subdivided so as to avoid meeting the requirements of § 29-1.6a, above.
c.
In the event that the inclusionary set-aside of the total number
of residential units does not result in a full integer, the developer
may choose one of two options of addressing the fractional unit:
1.
The developer shall round the set-aside upward to construct a whole
additional affordable unit; or
2.
If the set-aside includes a fractional unit equal to 0.49 or less,
the developer may round the set-aside downward and construct the lesser
whole number of affordable units, but must also make a payment in
lieu of constructing the fractional additional unit ("fractional payment
in lieu").
(a)
The fractional payment-in-lieu dollar amount shall be calculated
as the fractional unit multiplied by the estimated payment in lieu
to construct an affordable unit.
3.
For example: If seven total units are developed at an inclusionary
site, a 20% set-aside would require 1.4 affordable units. Per the
requirements above:
(a)
The developer shall round up the 0.4 unit to one whole affordable
unit so as to construct a total of two affordable housing units; or
(b)
The developer shall round the set aside downward so as to construct
only one affordable unit and shall pay into the Township's Affordable
Housing Trust Fund a fractional in-lieu payment equal to the cost
to construct an affordable unit multiplied by 0.4 unit.
[Added 11-12-2020 by Ord.
No. 2020-22]
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.
At least 13% of all restricted units within each bedroom distribution
shall be very-low-income units (affordable to a household earning
30% or less of regional median income by household size). The very-low-income
units shall be counted as part of the required number of low-income
units within the development.
2.
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or 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.
This 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 the following.
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;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
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
(e)
If not all of the foregoing requirements in § 29-1.7b2(a) through (d) above can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of § 29-1.7b2(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.), and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that Chatham 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 Township of Chatham'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 § 29-1.7b2 above shall be used by the Township of Chatham 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.
(4)
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Township
of Chatham for the conversion of adaptable to accessible entrances.
(5)
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Township's Affordable Housing Trust Fund in care of
the Township 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.
d.
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, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD. To calculate
this regional income limit, the HUD determination of median income
for a family of four is multiplied by the estimated households within
the county according to the most recent decennial census. The resulting
product for each county within the housing region is summed. The sum
is divided by the estimated total household from the most recent decennial
census in the Township's housing region. This quotient represents
the regional weighted average of median income for a household of
four. The income limit for a moderate-income unit for a household
of four shall be 80% of the regional weighted average median income
for a family of four. The income limit for a low-income unit for a
household of four shall be 50% of the regional weighted average median
income for a family of four. The income limit for a very-low-income
unit for a household of four shall be 30% of the regional weighted
average median income for a family of four. The income limits shall
be adjusted by household size based on multipliers used by HUD to
adjust median income by household size. In no event shall the income
limits be less than those for the previous year.
2.
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to § 29-1.7d1 above over the previous year's income limits and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
3.
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.
4.
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 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households, which very-low-income units shall be part of the low-income
requirement.
5.
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.
6.
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:
(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.
7.
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:
8.
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.
9.
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.
10.
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.
11.
The rents of very-low-, low- and moderate-income units may be increased
annually based on the permitted percentage increase in the Housing
Consumer Price Index for the Northeast Urban Area. 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.
[Added 11-12-2020 by Ord.
No. 2020-22]
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%, plus 1
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
b.
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 the NJDCA for its Section 8 program.
[Added 11-12-2020 by Ord.
No. 2020-22]
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:
[Added 11-12-2020 by Ord.
No. 2020-22]
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 chapter for a period of at least 30 years, until Chatham 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.
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 without the restrictions in place.
d.
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 nonexempt sale after the unit's
release from the restrictions set forth in this chapter, 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 chapter 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 following the removal of the restrictions provided
under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented.
[Added 11-12-2020 by Ord.
No. 2020-22]
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 master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers.
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 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 § 29-1.13 below.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income, and moderate-income ownership units shall be reserved for
households with a gross household income less than 80% of median income.
b.
Notwithstanding the foregoing, the administrative agent may, upon
approval by the Committee of the Township of Chatham, and subject
to the Court's approval, permit a moderate-income purchaser to buy
a low-income unit if and only if the administrative agent can demonstrate
that there is an insufficient number of eligible low-income purchasers
in the housing region to permit prompt occupancy of the unit and all
other reasonable efforts to attract a low-income purchaser, including
pricing and financing incentives, have failed. Any such low-income
unit that is sold to a moderate-income household shall retain the
required pricing and pricing restrictions for a low-income unit.
c.
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 another
certified household for a period not to exceed one year.
d.
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.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
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.
b.
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).
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
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.
b.
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 ten-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.
[Added 11-12-2020 by Ord.
No. 2020-22]
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 chapter for a period of at least 30 years, until the Township
of Chatham takes action to release the unit from such requirements.
Prior to such action, 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.
b.
Restricted rental units created as part of developments receiving
9% low-income housing tax credits must comply with a control period
of not less than a thirty-year compliance period, plus a fifteen-year
extended use period. Restricted rental units created as part of developments
receiving 4% tax credits must comply with a control period of not
less than a thirty-year compliance period. Both compliance periods
continue in effect until the Township of Chatham takes action to release
the units from such requirements.
c.
Deeds of all real property that include restricted rental units shall
contain deed restriction language. The deed restriction shall have
priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the Records Office
of the County of 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.
d.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
A written lease shall be required for all restricted rental units,
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 chapter.
d.
No rent-control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
[Added 11-12-2020 by Ord.
No. 2020-22]
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 the regional
median household income by household size.
2.
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
household income by household size.
3.
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median household
income by household size.
b.
The administrative agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income household,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
1.
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
2.
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
3.
The household is currently in substandard or overcrowded living conditions;
4.
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
5.
The household documents reliable anticipated 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.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
The Township of Chatham shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison responsible for overseeing
the Township's Affordable Housing Program, including overseeing the
administration of affordability controls on the affordable units and
the affirmative marketing of available affordable units in accordance
with the Township's Affirmative Marketing Plan; fulfilling monitoring
and reporting requirements; and supervising administrative agent(s).
Chatham Township shall adopt an Ordinance creating the position of
Municipal Housing Liaison and a resolution appointing the person to
fulfill the position of Municipal Housing Liaison. The Municipal Housing
Liaison shall be appointed by the governing body and may be a full-
or part-time municipal employee. The Municipal Housing Liaison shall
be approved by the Court and shall be duly qualified through a training
program sponsored by Affordable Housing Professionals of New Jersey
before assuming the duties of Municipal Housing Liaison.
b.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the Affordable Housing Program for the Township
of Chatham, including the following responsibilities which may not
be contracted out to the administrative agent:
1.
Serving as the Township of Chatham's primary point of contact for
all inquiries from the state, affordable housing providers, administrative
agents and interested households;
2.
Monitoring the status of all restricted units in the Township of
Chatham's Fair Share Plan;
3.
Compiling, verifying, submitting and posting all monitoring reports
as required by the Court and by this chapter;
4.
Coordinating meetings with affordable housing providers and administrative
agents, as needed; and
5.
Attending continuing-education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed.
c.
Subject to the approval of the Court, the Township of Chatham shall
designate one or more administrative agent(s) to administer and to
affirmatively market the affordable units constructed in the Township
in accordance with UHAC and this chapter. An operating manual for
each affordable housing program shall be provided by the administrative
agent(s) to be adopted by resolution of the governing body and subject
to approval of the Court. The operating manual(s) shall be available
for public inspection in the office of the Township Clerk, in the
office of the Municipal Housing Liaison, and in the office(s) of the
administrative agent(s). The Municipal Housing Liaison shall supervise
the work of the administrative agent(s).
[Added 11-12-2020 by Ord.
No. 2020-22]
An administrative agent shall be an independent entity serving
under contract to and reporting to the municipality. The fees of the
administrative agent shall be paid by the owners of the affordable
units for which the services of the administrative agent are required.
The administrative agent shall perform the duties and responsibilities
of an administrative agent as set forth in UHAC, including those set
forth in N.J.A.C. 5:80-26.14, 5:80-16 and 5:80-18 thereof, which includes:
a.
Affirmative marketing.
1.
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township of Chatham and the provisions of N.J.A.C. 5:80-26.15;
and
2.
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.
b.
Household certification.
1.
Soliciting, scheduling, conducting and following up on interviews
with interested households;
2.
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;
3.
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
4.
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 Appendixes J and
K of N.J.A.C. 5:80-26.1 et seq.;
5.
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;
6.
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township of Chatham when referring households
for certification to affordable units; and
7.
Notifying the following entities of the availability of affordable
housing units in the Township of Chatham: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Morris County Chapter of the NAACP, Newark NAACP, East Orange
NAACP, Housing Partnership for Morris County, Community Access Unlimited,
Inc., NORWESCAP, Homeless Solutions of Morristown, and the Supportive
Housing Association.
c.
Affordability controls.
1.
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;
2.
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;
3.
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Morris
County Register of Deeds or Morris County Clerk's office after the
termination of the affordability controls for each restricted unit;
4.
Communicating with lenders regarding foreclosures; and
5.
Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
d.
Resales and rerentals.
1.
Instituting and maintaining an effective means of communicating information
between owners and the administrative agent regarding the availability
of restricted units for resale or rerental; and
2.
Instituting and maintaining an effective means of communicating information
to low- (or very-low-) and moderate-income households regarding the
availability of restricted units for resale or rerental.
e.
Processing requests from unit owners.
1.
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 chapter;
2.
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;
3.
Notifying the municipality of an owner's intent to sell a restricted
unit; and
4.
Making determinations on requests by owners of restricted units for
hardship waivers.
f.
Enforcement.
1.
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;
2.
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;
3.
Posting annually, in all rental properties (including two-family
homes), 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;
4.
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;
5.
Establishing a program for diverting unlawful rent payments to the
municipality's Affordable Housing Trust Fund; and
6.
Creating and publishing a written operating manual for each affordable
housing program administered by the administrative agent, to be approved
by the Township Council and the Court, setting forth procedures for
administering the affordability controls.
g.
Additional responsibilities.
1.
The administrative agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
2.
The administrative agent shall prepare monitoring reports for submission
to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this chapter.
3.
The administrative agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
The Township of Chatham shall adopt, by resolution, an Affirmative
Marketing Plan, subject to approval of the Court, that is 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 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 toward
Housing Region 2 and is required to be followed throughout the period
of restriction.
c.
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 2, comprised
of Morris, Monmouth and Ocean Counties.
d.
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 rerentals. The administrative agent designated by
the Township of Chatham shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
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 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.
g.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
h.
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;
and the municipal administration building in the municipality in which
the units are located; and the developer's rental office. Applications
shall be mailed to prospective applicants upon request.
i.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
j.
The affirmative marketing plan shall specifically notify the following
community and regional organizations in advertisement for affordable
housing:
1.
Fair Share Housing Center, Cherry Hill.
2.
NJ State Conference of the NAACP, Trenton.
3.
Latino Action Network, Freehold.
4.
The Morris County Chapter of the NAACP, Morristown.
5.
Newark NAACP, Newark.
6.
East Orange NAACP, East Orange.
7.
Housing Partnership for Morris County, Dover.
8.
Community Access Unlimited, Inc., Elizabeth.
9.
NORWESCAP, Phillipsburg.
10.
Homeless Solutions of Morristown, Cedar Knolls.
11.
Supportive Housing Association, Cranford.
[Added 11-12-2020 by Ord.
No. 2020-22]
a.
Upon the occurrence of a breach of any of the regulations governing
an 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.
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(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:
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 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:
(a)
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;
(b)
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 Township of Chatham Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
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.
2.
The municipality may file a court action in the 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.
(a)
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-
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 his right
to possession terminated as well as his title conveyed pursuant to
the Sheriff's sale.
(b)
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event that
the proceeds from the Sheriff's sale are insufficient to reimburse
the municipality in full as aforesaid, the violating owner shall be
personally responsible for 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.
(c)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(e)
Failure of the low- and moderate-income unit to be either sold
at the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate- income unit as permitted by the regulations governing
affordable housing units.
(f)
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.
[Added 11-12-2020 by Ord.
No. 2020-22]
Appeals from all decisions of an administrative agent appointed
pursuant to this chapter shall be filed, in writing, with the Court.
[Added 12-19-2019 by Ord.
No. 2019-22]
a.
In Holmdel Builder's Association v. Holmdel Township, 121 N.J. 550(1990),
the New Jersey Supreme Court determined that mandatory development
fees are authorized by the Fair Housing Act of 1985 ("Act"), N.J.S.A.
52:27D-301 et seq., and the State Constitution, subject to the Council
on Affordable Housing's ("COAH's") adoption of rules.
b.
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and
the Statewide Non-residential Development Fee Act (N.J.S.A. 40:55D-8.1
through 8.7), COAH is authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that are under the jurisdiction of
the Council or court of competent jurisdiction and have a COAH-approved
spending plan may retain fees collected from nonresidential development.
c.
In Re Adoption of N.J.A.C. 5:96 and 5:97 by COAH, 221 N.J. 1(2015)
("Mount Laurel IV"), the Supreme Court remanded COAH's duties to the
Superior Court. As a result, affordable housing development fee collections
and expenditures from municipal affordable housing trust funds to
implement municipal Third Round Fair Share Plans through July 7, 2025,
are under the Court's jurisdiction and are subject to approval by
the Court.
d.
This article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, §§ 8 and 32-38.
Fees collected pursuant to this article shall be used for the sole
purpose of providing low- and moderate-income housing. This article
shall be interpreted within the framework of COAH's rules on development
fees, codified at N.J.A.C. 5:93-8.[1]
[1]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
As used in this section, the following terms shall have the
meanings indicated:
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.
The New Jersey Council on Affordable Housing established
under the Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the state.
The legal or beneficial owner or owners of a lot or of any
land proposed to be included in a proposed development, including
the holder of an option or contract to purchase, or other person having
an enforceable proprietary interest in such land.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C 5:93-8.3.[1]
The assessed value of a property divided by the current average
ratio of assessed-to-true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c.123 (N.J.S.A. 54:1-35a through c).
Any reconstruction, addition, or other improvement of a structure,
the cost of which exceeds 50% of the equalized assessed value of the
structure before the start of construction of the improvement.
A determination by COAH approving a municipality's housing
element and fair-share plan in accordance with the provision of the
Fair Housing Act (N.J.S.A. 52:27D-301 et seq.) and the rules and criteria
as set forth herein.
[1]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
a.
Residential development fees.
1.
Imposed fees.
[Amended 12-16-2021 by Ord. No. 2021-31]
(a)
Within the Township of Chatham, residential developers, except
for developers of the types of development specifically exempted below,
shall pay a fee of 1.5% of the equalized assessed value for residential
development, provided no increased density is permitted.
(b)
When an increase in residential density pursuant to N.J.S.A.
40:55D-70d(6) (known as a "d" variance) has been permitted, developers
shall be required to pay a development fee of 6% of the equalized
assessed value for each additional unit that may be realized. However,
if the zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the base density for the
purposes of calculating the bonus development fee shall be the highest
density permitted by right during the two-year period preceding the
filing of the variance application. Example: If an approval allows
four units to be constructed on a site that was zoned for two units,
the fees could equal 1.5% of the equalized assessed value on the first
two units; and the specified higher percentage up to 6% of the equalized
assessed value for the two additional units, provided zoning on the
site has not changed during the two-year period preceding the filing
of such a variance application.
2.
Eligible exactions, ineligible exactions and exemptions for residential
development:
(a)
Affordable housing developments and developments where the developer
has made a payment in lieu of on-site construction of affordable units
shall be exempt from development fees.
(b)
Developments that have received preliminary or final site plan
approval prior to the adoption of a municipal development fee ordinance
shall be exempt from development fees, unless the developer seeks
a substantial change in the approval. Where a site plan approval does
not apply, a zoning and/or building permit shall be synonymous with
preliminary or final site plan approval for this purpose. The fee
percentage shall be vested on the date that the building permit is
issued.
(c)
Except as provided in Subsection 29-2.3a2(d) below, development fees shall be imposed and collected on new residential construction or when an existing residential structure undergoes a substantial improvement as defined in Section 29-2.2 above, is demolished and replaced, or is expanded where the size of the change, replacement, or expansion is greater than 2,500 square feet. The development fee shall be calculated on the increase in the equalized assessed value of the new or improved structure.
(d)
Developers of residential structures demolished and replaced
as a result of fire, or natural disaster, or other catastrophic events
shall be exempt from paying a development fee.
b.
Nonresidential development fees.
1.
Imposed fees.
(a)
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted,
shall pay a fee equal to 2.5% of the equalized assessed value of the
land and improvements, for all new nonresidential construction on
an unimproved lot or lots.
(b)
Nonresidential developers, except for developers of the types
of development specifically exempted, shall also pay a fee equal to
2.5% of the increase in equalized assessed value resulting from any
additions to existing structures to be used for nonresidential purposes.
(c)
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement,
at the time a final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
2.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development.
(a)
The nonresidential portion of a mixed-use inclusionary or market-rate
development shall be subject to the development fee of 2.5% unless
otherwise exempted below.
(b)
The fee of 2.5% shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within existing
footprint, reconstruction, renovations and repairs.
(c)
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46, as specified in the Form N-RDF
"State of New Jersey Non-Residential Development Certification/Exemption."
Any exemption claimed by a developer shall be substantiated by that
developer.
(d)
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to P.L. 2008, c. 46, shall
be subject to it at such time the basis for the exemption no longer
applies, and shall make the payment of the nonresidential development
fee, in that event, within three years after that event or after the
issuance of the final certificate of occupancy of the nonresidential
development, whichever is later.
(e)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Township as a lien against the real property
of the owner.
The following development types are exempt from development
fees:
a.
Nonprofit and public education buildings.
b.
Houses of worship.
c.
Public amenities (recreational, community, or senior centers).
d.
Parking lots and structures.
e.
Nonprofit hospital relocation or improvement.
f.
State, county and local government buildings.
g.
Transit hubs, transit villages, and light-rail hubs.
h.
Commercial farm buildings and Use Group U structures.
i.
Developments with a general development plan approval, or executed
developer's or redeveloper's agreement, prior to July 17, 2008, with
a fee or affordable housing requirement the equivalent of at least
1% of equalized assessed value.
a.
Upon the granting of a preliminary, final or other applicable approval,
for a development, the applicable approving authority (Planning or
Zoning Board) shall direct its staff to notify the construction official
responsible for the issuance of a building permit.
b.
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF "State of New Jersey Non-Residential
Development Certification/Exemption" to be completed as per the instructions
provided. The Developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The construction official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Township Tax
Assessor shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
c.
The construction official responsible for the issuance of a building
permit shall notify the Township Tax Assessor that he has prepared
to be issued the first building permit for a development, at which
time an amount of 50% of the total fee is due at the issuance of the
first building permit. The remaining amount owed will be paid at the
issuance of a final certificate of occupancy.
d.
Within 30 days of receipt of that notice, the Township Tax Assessor,
based on the plans filed, shall provide an estimate of the equalized
assessed value of the development and the fee is calculated as cited
above.
e.
The construction official responsible for the issuance of a final
certificate of occupancy notifies the Township Tax Assessor of any
and all requests for the scheduling of a final inspection on property.
f.
Within 10 business days of a request for the scheduling of a final
inspection, the Township Tax Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
of the development; calculate the development fee; and thereafter
notify the developer of the remaining amount of the fee due.
g.
Should the Township fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of Section 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
h.
50% of the development fee shall be collected at the time of issuance
of the building permit. The remaining portion shall be collected at
the issuance of the certificate of occupancy. The developer shall
be responsible for paying the difference between the fee calculated
at building permit and that determined at issuance of certificate
of occupancy.
i.
Appeal of development fees.
1.
A developer may challenge residential development fees imposed by
filing a challenge with the County Board of Taxation. Pending a review
and determination by the Board, collected fees shall be placed in
an interest-bearing escrow account by the Township. Appeals from a
determination of the Board may be made to the Tax Court in accordance
with the provisions of the State Tax Uniform Procedure Law, N.J.S.A.
54:48-1 et seq., within 90 days after the date of such determination.
Interest earned on amounts escrowed shall be credited to the prevailing
party.
2.
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by the Township. Appeals
from a determination of the Director may be made to the Tax Court
in accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
a.
There is hereby created a separate, interest-bearing housing trust
fund to be maintained by the Chief Financial Officer for the purpose
of depositing development fees collected from residential and nonresidential
developers and proceeds from the sale of units with extinguished controls.
b.
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
1.
Payments in lieu of on-site construction of affordable units;
2.
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
3.
Rental income from municipally operated units;
4.
Repayments from affordable housing program loans;
5.
Recapture funds;
6.
Proceeds from the sale of affordable units; and
7.
Any other funds collected in connection with the Township's affordable
housing program.
c.
The Township previously provided COAH with written authorization,
in the form of a three-party escrow agreement between the Township,
a bank, and COAH, to permit COAH to direct the disbursement of the
funds as provided for in N.J.A.C. 5:93-8.[1] The Superior Court shall now have jurisdiction to direct
the disbursement of the Township's trust funds.
[1]
Editor's Note: N.J.A.C. 5:93 expired 10-16-2016.
d.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH or a court
of competent jurisdiction.
a.
The Township shall not spend development fees until COAH or a court
of competent jurisdiction has approved a plan for spending such fees.
Thereafter, the expenditure of all funds shall conform to the spending
plan approved by COAH or a court of competent jurisdiction. Funds
deposited in the housing trust fund may be used for any activity approved
by COAH or a court of competent jurisdiction to address the Township's
fair share obligation and may be set up as a grant or revolving loan
program. Such activities include, but are not limited to, preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable,
or regional housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or state standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:93-8 and specified
in the approved spending plan.
b.
Funds shall not be expended to reimburse the Township for past housing
activities.
c.
At least 30% of all development fees collected and interest earned
shall be used to provide affordability assistance to low- and moderate-income
households in affordable units included in the municipal Fair Share
Plan. One-third of the affordability assistance portion of development
fees collected shall be used to provide affordability assistance to
those households earning 30% or less of median income by region.
1.
Affordability assistance programs may include down-payment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and special
assessments, and assistance with emergency repairs.
2.
Affordability assistance to households earning 30% or less of median
income may include buying down the cost of low- or moderate-income
units in the municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income.
3.
Payments in lieu of constructing affordable units on site and funds
from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
e.
No more than 20% of all revenues collected from development fees
may be expended on administration, including, but not limited to,
salaries and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, a Housing Element
and Fair Share Plan, and/or an affirmative marketing program. In the
case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements as set forth in the
Court-approved Settlement Agreement with FSHC, dated December 13,
2018. Legal or other fees related to litigation opposing affordable
housing sites or objecting to the Council's regulations and/or action
are not eligible uses of the affordable housing trust fund.
On or about December 13 of each year through 2025, the Township
shall provide annual reporting of trust fund activity to the DCA,
COAH, or NJLGS, or other entity designated by the State of New Jersey,
with a copy provided to Fair Share Housing Center and posted on the
municipal website. This reporting shall include an accounting of all
housing trust fund activity, including the collection of development
fees from residential and nonresidential developers, payments in lieu
of constructing affordable units on site, funds from the sale of units
with extinguished controls, barrier-free escrow funds, rental income,
repayments from affordable housing program loans, and any other funds
collected in connection with the Township's housing program, as well
as to the expenditure of revenues and implementation of the plan approved
by COAH or a court of competent jurisdiction. All monitoring reports
shall be completed on forms designed by COAH or other entity designated
by the State of New Jersey.
The ability for the Township to impose, collect and expend development
fees shall expire with its Court-issued Judgment of Compliance and
Repose unless the Township has 1) filed an adopted Housing Element
and Fair Share Plan with COAH, a court of competent jurisdiction or
other entity designated by the State of New Jersey; 2) has petitioned
for substantive certification or filed a declaratory judgment action;
and 3) has received COAH's or a court of competent jurisdiction's
approval of its development fee ordinance. If the Township fails to
renew its ability to impose and collect development fees prior to
the expiration of its judgment of Compliance and Repose, it may be
subject to forfeiture of any or all funds remaining within its municipal
trust fund. Any funds so forfeited shall be deposited into the "New
Jersey Affordable Housing Trust Fund" established pursuant to Section
20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The Township shall
not impose a residential development fee on a development that receives
preliminary or final site plan approval after the expiration of its
judgment of compliance; nor shall the Township retroactively impose
a development fee on such a development. The Township shall not expend
development fees after the expiration of its judgment of compliance.
