[HISTORY: Adopted by the Township Council
of the Township of Moorestown 10-7-2019 by Ord. No. 9-2019.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed
former Ch. 97, Affordable Housing, adopted 11-14-2005 by Ord. No.
29-2005, as amended.
This chapter is designed to implement the Township's adopted
housing element and fair share plan for low- and moderate-income housing
adopted pursuant to the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.) (the "Act"); the Uniform Housing Affordability Controls (N.J.A.C.
5:80-26.1 et seq.) ("UHAC"); extant regulations of the New Jersey
Council on Affordable Housing ("COAH"), and judicial decisions. This
chapter is designed to ensure that affordable housing created under
the Fair Housing Act is occupied by low- and moderate-income households
for the appropriate period of time. All words, phrases, and terms
not otherwise defined herein shall have the same meanings and usages
as in the Act and UHAC. This chapter provides rules for the establishment
and administration of affordability controls on each income restricted
dwelling unit for which the Township receives credit.
A.
Word usage. In interpreting this chapter, words in one tense shall
include other tenses or derivative forms; words in the singular shall
include the plural and in the plural, the singular; either gender
shall include the other; the word "shall" is mandatory; the word "may"
is permissive; the word "used" shall include "arranged," "designed,"
"constructed," "altered," "converted," "rented," "leased," or "intended
to be used"; the word "lot" includes the words "plot," and "premises."
B.
ACT
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT or AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE DWELLING UNIT
AFFORDABLE HOUSING PROGRAM
AFFORDABLE RENTAL CHARGES
AFFORDABLE UNIT
AGE-RESTRICTED DEVELOPMENT
ALTERNATIVE LIVING ARRANGEMENT
ASSISTED LIVING RESIDENCE OR FACILITY
CERTIFIED HOUSEHOLD
DCA
DEFICIENT HOUSING UNIT
DEVELOPMENT FEE
FAIR SHARE PLAN
HOUSEHOLD
HOUSING ELEMENT or HOUSING PLAN ELEMENT
INCLUSIONARY DEVELOPMENT
LOW-INCOME HOUSEHOLD
LOW-INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNIT
MEDIAN INCOME
MODERATE-INCOME HOUSEHOLD
MODERATE-INCOME UNIT
MUNICIPAL HOUSING LIAISON
NONEXEMPT SALE
QUALIFIED PURCHASER OR RENTER
(1)
(2)
(3)
RANDOM SELECTION PROCESS
REFERRAL LIST, AFFORDABLE HOUSING
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
UHAC
VERY-LOW-INCOME HOUSEHOLD
VERY-LOW-INCOME UNIT
WEATHERIZATION
Definitions. The following definitions shall have the meanings indicated:
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 responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:93 and N.J.A.C.
5:80-26.1 et seq.
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 restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a very-low-, low-
or moderate-income household as defined in N.J.S.A. 52:27D-304; 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 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.
A very-low-, low-, or moderate-income dwelling unit.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A monthly rent, including utilities charged to an eligible
very-low-, low- or moderate-income family which shall not exceed 30%
of their monthly gross income as calculated by N.J.A.C. 5:93-7.4(f).
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 residential development consisting of housing units 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 § 807(b)(2) of the Fair
Housing Act, 42 U.S.C. § 3607.
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 DCA; 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 NJ 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 very-low-income, low-income household or moderate-income
household.
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.
Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:93-8 and administered in Chapter 158 of the Code of the Township of Moorestown.
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.A.C. 5:93-5.
Persons, whether related or unrelated, living together in
a single dwelling unit, with common access to and common use of all
living and eating areas and all areas and facilities for the preparation
and serving of food within the dwelling unit.
The portion of the Township's Master Plan, required
by the Municipal Land Use Law in N.J.S.A. 40:55D-28b(3) and the Act,
that includes the information required by N.J.A.C. 5:93-5.1 and establishes
Moorestown's fair share obligation.
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 or 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 updated annually according to a formula 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.
A municipal employee annually appointed by resolution of
the governing body, responsible for the tracking and reporting of
affordable housing units to the appropriate authorities and parties
in addition to other affordable housing duties that may be assigned
by the Township Manager.
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 person who:
Submits an application for certification as a qualified purchaser
or renter to the management of the unit;
Whose gross aggregate family income at the time of the proposed
purchase or rental of an affordable unit is within very-low-, low-
or moderate-income levels, as defined herein; and
Who obtains certification as a qualified purchaser or renter
of an affordable unit from Moorestown Township's Administrative
Agent as set forth in this chapter.
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).
A register of eligible very-low-, low- and moderate-income
households for which suitable units are not yet available.
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by adopted/approved regional income limits.
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 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 the Urban Homeownership Recovery Program (UHORP)
or Market Oriented Neighborhood Investment (MONI) Program.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26-1, et seq.
A household with a total gross annual household income equal
to 30% or less of the 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 crawlspace),
siding to improve energy efficiency, replacement storm windows, replacement
storm doors, replacement windows and replacement doors, and is considered
a major system for rehabilitation.
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 Moorestown
pursuant to the municipality's most recently adopted Housing
Element and Fair Share Plan. All developers with sites identified
for affordable housing pursuant to the most recent Housing Element
and Fair Share Plan adopted by the Planning Board and Township Council
of Moorestown, according to their respective duties, shall provide
affordable housing units in accordance with the plan. All development
that falls within the time period of the present round of affordable
housing obligation shall construct units or pay a development fee
in accordance with this chapter.
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 very-low-, low- and moderate-income
housing units. All restricted units, including those funded with federal
low-income housing tax credits or other subsidy programs, shall include
the required bedroom distribution and income distribution, shall be
subject to affordability controls, and shall be affirmatively marketed
in accordance with UHAC, with the exception that instead of 10% of
all rental affordable units being affordable to households earning
35% of less of the regional median household income by household size,
13% of all rental affordable units shall be affordable to households
earning 30% or less of the regional median household income by household
size, and all other applicable laws.
C.
All new construction units shall be adaptable in conformance with
N.J.S.A. 52:27D-311a and -311b and all other applicable laws.
A.
In the event that the inclusionary set-aside percentage (15% or 20%,
as the case may be) of the total number of residential units does
not result in a full integer, the developer shall address the fractional
unit in the following manner:
(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 less than 0.5, the developer
may round the set-aside downward and construct the lesser whole number
of affordable units, but shall also make a payment in lieu of constructing
the fractional additional unit ("fractional payment in lieu"). The
fractional payment in lieu amount shall be calculated as the fractional
unit multiplied by the payment in lieu amount of $220,000, increased
annually by the urban consumer price index. For example, if seven
total units are developed at an inclusionary site, a 20% set-aside
would require 1.4 affordable units. The developer shall round up the
0.4 unit to one whole affordable unit and construct a total of two
affordable units or pay $88,000 to the affordable housing trust fund
in lieu of construction.
A.
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 is no greater
than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two-bedroom
units;
(3)
At least 20% of all low- and moderate-income units are three-bedroom
units; and
(4)
The remainder, if any, may be allocated at the discretion of the
developer.
B.
Age-restricted low- and moderate-income units may utilize a modified
bedroom distribution. At a minimum, the number of bedrooms shall equal
the number of age-restricted low- and moderate-income units within
the affordable development. The standard may be met by creating all
one-bedroom units or by creating a two-bedroom unit for each efficiency
unit.
C.
In determining the initial rents and initial sales prices for compliance
with the affordable average requirements for restricted units other
than age-restricted dwellings, 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 a 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;
(5)
A four-bedroom unit shall be affordable to a six-person household.
D.
For age-restricted affordable dwellings, the following standards
shall be used:
E.
In referring certified households to specific restricted units, to
the extent feasible and without causing an undue delay in occupying
the unit, the administrative agent shall strive to:
F.
Size of units. The minimum size of affordable housing units, which
is necessary to ensure the public health safety and welfare of its
occupants, shall be as indicated in the following table:
Table 97.1. Minimum Size of Affordable Housing Units
| |
---|---|
Type of Unit
|
Minimum Size
(gross square feet)
|
Efficiency
|
500
|
One-bedroom
|
600
|
Two-bedroom
|
750
|
Three-bedroom
|
900
|
(1)
In the event that a program providing funding for the construction
of units requires a different minimum habitable floor area for a unit,
such program requirements shall prevail.
G.
Certificates of occupancy. The following additional requirements
for the issuance of certificates of occupancy shall apply to inclusionary
developments:
(1)
Final site plan or subdivision approval for any inclusionary development
shall be contingent upon the affordable housing development meeting
the following phasing schedule for low- and moderate-income units,
whether developed in one stage or more stages. The initial issuance
of certificates of occupancy for market units shall be linked to the
issuance of certificates of occupancy for affordable units. Prior
to the issuance of the certificates of occupancy for market units,
certificates of occupancy for affordable units shall be required in
the following minimum ratios:
Table 97.2. Required Percentage of Affordable to Market Units
| |
---|---|
Percentage of Affordable Housing Units Completed
|
Percentage of Market Housing Units Completed
|
0%
|
25%
|
10%
|
25% + 1
|
50%
|
50%
|
75%
|
75%
|
100%
|
90%
|
(2)
Each unit of affordable housing shall require a certificate of occupancy,
which shall become void upon a change of owner or tenant.
(3)
No certificate of occupancy shall be issued for a low- and moderate-income
unit unless the provisions of N.J.A.C. 5:93-9.3, or superseding administrative
code, are met.
H.
Utilities and heating source. Tenant-paid utilities that are included
in the utility allowance shall be so stated in the lease and shall
be consistent with the utility allowance approved by the NJ Department
of Community Affairs for its Section 8 program. Affordable units shall
utilize the same type of heating source as market units within the
affordable development.
I.
Appearance and location. The facade of an affordable housing dwelling
shall be indistinguishable from those of market units in terms of
the use of exterior materials, windows, doors, reveal, roof pitch,
color, or other material. Affordable housing units shall be fully
integrated with market rate housing to the greatest extent feasible
and shall have access to open space and site amenities comparable
to that of market rate units, unless otherwise approved by the Municipal
Housing Liaison.
J.
Tenure. For inclusionary developments with a single housing type,
the affordable housing units shall have the same tenure as the market
housing units.
A.
The Township Council shall yearly appoint a Township Administrative
Agent to monitor sales and resales of affordable housing units pursuant
to N.J.A.C. 5:80-26.14. The Administrative Agent of the municipality
may also be the Municipal Housing Liaison, but is not required to
be.
B.
The Township Administrative Agent shall monitor the designated Administrative
Agent of the developer in the initial sales and rental transactions
for low- and moderate-income dwellings in accordance with N.J.A.C.
5:80-26.14, as it may be amended or superseded. The developer's
administrative agent shall have all of responsibilities as put forth
in this rule. After the initial sales and rental transactions, the
Township Administrative Agent shall monitor the activities of the
developer's or owner's Administrative Agent for any resales
or rerentals. If the person is the Township's Administrative
Agent, then he or she shall assume all of the duties and responsibilities
set forth in N.J.A.C. 5:80-26.14 following the initial renting, sales
and occupancy of low- and moderate-income dwellings. The affordability
controls set forth in this chapter shall be administered and enforced
by the Administrative Agent regardless of association. The primary
responsibility of the Administrative Agent shall be to ensure that
the restricted units are sold or rented, as applicable, only to low-
and moderate-income households in accordance with the Fair Housing
Act.
C.
The Township Council may establish a reasonable fee to program participants
for the administration of the affordability controls program.
D.
The Administrative Agent, whether the Township's representative,
developer's agent, or a delegated agent, shall have the responsibility
to income qualify low- and moderate-income households, to place income
eligible households in low- and moderate-income units upon initial
occupancy, to provide for the initial occupancy of low- and moderate-income
units with income-qualified households, to continue to qualify households
for reoccupancy of units as they become vacant during the period of
affordability controls, to assist with advertising and outreach to
low- and moderate-income households, and to enforce the terms of the
deed restriction and mortgage loan. All Administrative Agents shall
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.
E.
The Municipal Housing Liaison shall coordinate his or her activities
with the Township administrative agent to ensure the accurate tracking
of the progress of the occupancy of affordable housing in the municipality,
answer inquiries regarding affordable housing from the public or direct
same to the appropriate official or agency, and comply with the affordable
housing monitoring and reporting requirements of the state.
F.
In order to ensure an orderly transfer of control responsibility
from a municipality to an administrative agent, from one administrative
agent to another administrative agent, or other transfer, the requirements
as set forth in N.J.A.C. 5:80-26.17 shall apply as are necessary before
or during the transition. The Administrative Agent's enforcement
responsibility for implementing such practices and procedures shall
not be delegated or otherwise transferred to any other party, except
to a successor administrative agent.
G.
By accepting state funds for affordable housing purposes, or by submitting
to the jurisdiction of the NJ Department of Community Affairs or its
successor agency, the Township of Moorestown shall be deemed to have
delegated to the Administrative Agent the day-to-day responsibility
for implementing practices and procedures designated to ensure effective
compliance with the controls set forth in this chapter. The governing
body of the municipality, however, shall retain the ultimate responsibility
for ensuring effective compliance with the requirements as set forth
in UHAC and any settlement agreements pertaining to affordable housing
matters.
H.
The Township Administrative Agent shall keep records of the affirmative
marketing activities undertaken in accordance with the affirmative
marketing plan established by any developer's administrative
agent. The records shall include, but not be limited to, the following:
(1)
Electronic reporting of affordable housing activity; any required
paper forms.
(2)
Copies of any press releases, brochures, flyers, print advertisements
and application forms used in the affirmative marketing program.
(3)
The income and demographic characteristics of each household applying
for and occupying income-restricted housing.
(4)
An evaluation of any necessary adjustments required to the affirmative
marketing program as communicated by the Administrative Agent.
A.
The Municipal Housing Liaison shall complete and return to COAH,
its successor, or a court of competent jurisdiction all forms necessary
for monitoring requirements related to dwelling units in affordable
housing projects and 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 of Moorestown's approved housing program, as
well as to the expenditure of revenues and implementation of the approved
plan.
B.
The Township will provide annual reporting of its Affordable Housing
Trust Fund activity to the New Jersey Department of Community Affairs
(NJDCA), Council on Affordable Housing (COAH), or Local Government
Services (NJLGS), or other entity designated by the State of New Jersey,
with a copy provided to Fair Share Housing Center (FSHC) and posted
on the municipal website, using forms developed for this purpose by
the NJDCA, COAH, or 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. The schedule for the reporting of this
information shall be as set forth in the most recent settlement agreement
between the Township of Moorestown and FSHC.
C.
By July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the
Township will post on its municipal website, with a copy provided
to FSHC, a status report as to its implementation of its Plan and
an analysis of whether any unbuilt sites or unfulfilled mechanisms
continue to present a realistic opportunity. 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. Any interested party may by motion request a hearing
before the Court regarding these issues.
D.
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. The schedule for the
reporting of this information shall be as set forth in the most recent
settlement agreement between the Township of Moorestown and FSHC.
A.
The developer of low- and moderate-income housing units shall submit
to the Township Administrative Agent an Affordable Housing Plan that
describes of the means to be used to insure that the required low-
and moderate-income units are sold or rented only to low-and moderate-income
households for a period of not less than 30 years, that such units
meet bedroom distribution and phasing requirements, and comports with
the requirements of this chapter pertaining to the provisions, leasing,
selling and transferring units among eligible low- and moderate-income
households.
B.
The Affordable Housing Plan shall indicate how the developer will comply with the procedures of this chapter for selecting occupants of low- and moderate-income housing and the required affirmative marketing requirements. The requirements for affirmative marketing are found in § 97-19. Whenever a developer proposes a third-party operator or manager of affordable housing units, the Municipal Housing Liaison shall specifically approve such operator and manager.
C.
The following information shall promptly be provided to the Township
Administrative Agent by the developer or sponsor of any project containing
any affordable units' subject to the requirements of this chapter,
upon the later of either final municipal land use approval or issuance
of a grant contract by a governmental authority:
(1)
The total number of units in the project, and number of restricted
units, broken down by bedroom size, identifying which are low- and
which are moderate-income dwellings, and including street addresses
of restricted dwellings;
(2)
Floor plans of all affordable dwellings, including complete and accurate
identification of uses and dimensions of all rooms;
(3)
A project map identifying the locations of low- and moderate-income
and market dwellings;
(4)
A list of project principals or partners, together with a list of
all other affordable projects in which they have been involved over
the previous five years;
(5)
Projected construction schedule;
(6)
Proposed pricing for all units, including any purchaser options and
add-on items;
(7)
A list of all public funding sources and copies of grant or loan
agreements for those sources;
(8)
Condominium fees or homeowner association and any other maintenance
or other fees;
(9)
Estimated real property taxes for sale units;
(10)
Sewer, trash disposal and any other utility assessments;
(11)
Flood insurance requirement, if applicable;
(12)
A description of all HVAC systems;
(13)
Location of any common areas and elevators;
(14)
Proposed form of lease for any rental units;
(15)
The name of the person who will be responsible for official contact
with the Township Administrator for the duration of the project;
(16)
The name and qualifications of the developer's administrative
agent, if applicable; and
(17)
The state-approved planned real estate development public offering
statement and/or master deed where available or applicable.
D.
The developer shall submit the Affordable Housing Plan to the Township
Administrative Agent at least 45 days prior to the advertising of
the availability of the units. The agent will approve or modify the
plan within 30 working days of receipt of the plan or within such
time as additionally granted by the developer.
A.
The incomes of low- and moderate-income households occupying affordable
housing shall not exceed the income limits as of January 1 of the
current year.
B.
Median income determination. Income limits for all units for which
income limits are not already established through a federal program
exempted from the Uniform Housing Affordability Controls pursuant
to N.J.A.C. 5:80-26.1 shall be updated by the Administrative Agent
annually within 30 days of the publication of determinations of median
income by the U.S. Department of Housing and Urban Development (HUD)
as follows:
(1)
Regional income limits shall be established for the Region 5 based
on the median income by household size, which shall be established
by a regional weighted average of the uncapped Section 8 income limits
published by HUD. To compute this regional income limit, the HUD determination
of median county 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
households from the most recent decennial census in Region 5. 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 HUD determination
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. These 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 income limits calculated each year shall be the result of applying the percentages set forth in Subsection B(1) above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(3)
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 Subsection B(1) 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.
C.
Affordable housing purchase or rent. Very-low-income housing units
shall be reserved for households with a gross household income less
than or equal to 30% of the median regional income. Very-low-income
households shall be considered a subset of low-income units. Of the
number of very-low-income households, at least 50% shall be for family
households. Low-income housing units shall be reserved for households
with a gross household income less than or equal to 50% of the median
regional income. Moderate-income units shall be reserved for households
with a gross household income more than 50% but equal to or less than
80% of the median income.
D.
Assisted-living facilities. Income determination and eligibility
for assisted-living facilities shall also comply with the New Jersey
Housing and Mortgage Finance Agency's Assisted Living Underwriting
Guidelines and Financing Policy, dated May 28, 1996, as it may be
amended or superseded. The monthly fee for rent, meals, and basic
services for the affordable units in the assisted-living facility
shall not exceed 80% of household income. For the purposes of this
section, 62.5% of the fee shall be assumed to be for meals and basic
services and 37.5% of the fee for rent.
A.
The Administrative Agent shall secure all information from applicant
households necessary and appropriate to determine that restricted
dwellings are occupied by properly sized households with appropriate
very-low-, low- or moderate-income levels. No household may be referred
to a restricted dwelling, or may receive a commitment with respect
to a restricted dwelling, unless that household has received a signed
and dated certification, as set forth in this section, and has executed
the certificate in the form provided.
B.
The Administrative Agent shall use a random selection process to
select occupants of very-low-, low- and moderate-income housing.
C.
The Administrative Agent shall prepare a standard form of certification
and shall sign and date one for each household when certified. This
certification shall be known as a certificate of eligibility and shall
be a prerequisite for the purchase or rental of an income-restricted
dwelling. An initial certification shall be valid for no more than
180 days unless a valid contract for sale or lease has been executed
within that time period. In this event, certifications shall be valid
until such time as the contract for sale or lease is ruled invalid
and no occupancy has occurred. Certifications may be renewed in writing
at the request of a certified household for an additional period of
180 days at the discretion of the Administrator or Administrative
Agent.
D.
When reviewing an applicant household's income to determine eligibility, the Administrator or Administrative Agent shall compare the applicant household's total gross annual income to the regional very-low-, low- and moderate-income limits then in effect in accordance with § 97-9B. For the purposes of this section, income includes, but is not limited to, wages, salaries, tips, commissions, alimony, regularly scheduled overtime, pensions, social security, unemployment compensation, Temporary Assistance for Needy Families (TANF), verified regular child support, disability, net income from business or real estate, and income from assets such as savings, certificates of deposit, money market accounts, mutual funds, stocks, bonds and imputed income from non-income-producing assets, such as equity in real estate.
E.
Except as otherwise specifically stated in this section, the sources
of income considered by the Administrator or Administrative Agent
shall be the types of regular income reported to the Internal Revenue
Service and which is eligible to be used for mortgage loan approval.
Household annual gross income shall be calculated by projecting current
gross income over a twelve-month period.
F.
Assets not earning a verifiable income shall have an annual imputed
interest income using a current average annual savings interest rate.
Assets not earning income include, but are not limited to, present
real estate equity. Applicants owning real estate shall produce documentation
of a market value appraisal and outstanding mortgage debt. The difference
shall be treated as the monetary value of the asset and the imputed
interest added to income. If the applicant household owns a primary
residence with no mortgage on the property valued at or above the
regional asset limit, a certificate of eligibility shall be denied
by the Administrator or Administrative Agent, unless the applicant's
existing monthly housing costs (including principal, interest, taxes,
homeowner and private mortgage insurance, and condominium and homeowner
association fees as applicable) exceed 33% of the household's
eligible monthly income.
G.
Rent from real estate shall be considered income, after deduction
of any mortgage payments, real estate taxes, property owner's
insurance and reasonable property management expenses as reported
to the Internal Revenue Service. Other expenses are not deductible.
If actual rent is less than fair market rent, the Administrator or
Administrative Agent shall impute a fair market rent.
H.
Income does not include benefits, payments, rebates or credits received
under any of the following:
(1)
Federal or state low-income energy assistance programs;
(2)
Food stamps, payments received for foster care, relocation assistance
benefits;
(3)
Income of live-in attendants, scholarships, student loans, and personal
property, including but not limited to, automobiles; and
(4)
Lump-sum additions to assets such as inheritances, lottery winnings,
gifts, insurance settlements, and part-time income of persons enrolled
as full-time students.
(5)
Income, however, does include interest and other earnings from the
investment of any of the foregoing benefits, payments, rebates, or
credits.
I.
The Administrative Agent shall require each member of an applicant
household who is 18 years of age or older to provide documentation
to verify the member's income, including income received by adults
on behalf of minor children for their benefit. Household members 18
years of age or older who do not receive income must produce evidence
of current status. Income verification documentation may include,
but is not limited to, the following for each and every member of
a household who is 18 years of age or older:
(1)
Four consecutive pay stubs, not more than 120 days old, including
bonuses, overtime or tips, or a letter from the employer stating the
present annual income figure;
(2)
Copies of federal and state income tax returns for each of the preceding
three tax years;
(3)
A letter or appropriate reporting form verifying monthly benefits
such as social security, unemployment, TANF, disability or pension
income (monthly or annually);
(4)
A letter or appropriate reporting form verifying any other sources
of income claimed by the applicant, such as alimony or child support;
(5)
Income reports from banks or other financial institutions holding
or managing trust funds, money market accounts, certificates of deposit,
stocks or bonds; and
(6)
Evidence or reports of income from directly held assets such as real
estate or businesses.
(7)
Court ordered payments for alimony or child support to another household,
whether or not it is being paid regularly, shall be excluded from
income for purposes of determining income eligibility.
J.
At the discretion of the Administrative Agent, households may also
be required to produce documentation of household composition for
determining the correct dwelling size and applicable median income
guide.
K.
Tenant income eligibility. In addition to the foregoing requirements,
tenant income eligibility shall be in accordance with the median income
limits of N.J.A.C. 5:80-26.13. 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. 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. 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.
L.
The Administrative Agent shall certify a household as eligible for
a restricted rental unit when the household is a very-low-income,
low-income household or a moderate-income household, as applicable
to the unit, and the rent proposed for the unit does not exceed 35%
(40% for age-restricted units) of the household's eligible monthly
income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended
and supplemented; provided, however, that this limit may be exceeded
if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents proposed third-party assistance from an outside
source such as a family member in a form acceptable to the Administrative
Agent and the owner of the unit.
A.
If the household is found to be eligible for low- and moderate-income
housing, they shall be issued a certificate of eligibility and placed
on the affordable housing waiting list, except in the event that such
a certificate is withheld or removed in accordance with this section.
Eligible persons that live or work within Housing Region 5 shall have
preference over those that live or work in another housing region.
B.
Applicants shall be selected in the order in which their applications
are certified and in accordance with the provisions of this section.
C.
Households remaining on a waiting list shall update their application
no later than April 30 each year, including the most recent federal
income tax return of each member of the proposed household and such
other updated income and other information requested on the application.
D.
Households on the waiting list who have not submitted the required
information by May 15 each year shall be notified by certified mail,
mailed to the address on file that they have until June 30 of that
year to provide the information or they shall be removed from the
waiting list.
E.
Any household whose income or priority category has changed such
that the household has become eligible for a different category of
housing or priority list shall be placed on the appropriate list without
penalty or favor as of the date of the original application.
F.
Any household whose income has increased to the degree that it is
no longer eligible for low- or moderate-income housing shall be removed
from the waiting list.
G.
If the Township Administrative Agent or Administrative Agent has
reason to believe that the information on file is erroneous or incomplete,
he or she shall have the right to conduct an investigation and request
any additional information deemed necessary to obtain accurate household
information. If an applicant does not cooperate in such investigation
or refuses to reply with the requested additional information within
30 days of said request, the applicant shall be removed from the list.
H.
All applications shall be notarized and certified complete and accurate.
Anyone knowingly submitting incomplete, inaccurate, incorrect or false
information may be removed from eligibility for very-low-, low- and
moderate-income dwellings. All information submitted to the Township
Administrative Agent or Administrative Agent for the purposes of determining
applicant eligibility shall be strictly confidential and not considered
a public record.
I.
Prior to the time of availability of a very-low-, low- and moderate-income dwelling, the Township Administrative Agent or Administrative Agent shall notify by certified mail the top three households on the waiting list for the type of dwelling available, its location and the estimated date it will be available. If a purchaser or tenant cannot be found from the top three households on the waiting list, notice shall be sent to the fourth, fifth, etc., household until a purchaser or tenant is found. The household shall, within 14 calendar days of mailing, notify the Township Administrative Agent or Administrative Agent, in writing, of its intent to occupy the dwelling and, if selected, its intent to comply with the requirements of Subsection J, below, within 15 days. No selection by the Administrative Agent shall take place prior to the expiration of the fourteen-calendar-day notification period. Any household which fails to respond to the notice or chooses to reject a specific dwelling by informing the Administrative Agent in writing, shall retain its priority and shall be notified of available dwellings in the future, except that if a household chooses to reject a dwelling or fails to respond three times, it shall be removed from the list and must reapply and requalify if it wishes to be placed on the list at a new qualified priority.
J.
At the time of notice to a household of the availability of an appropriate
type of dwelling and if the household notifies the Administrative
Agent of its intent to occupy the dwelling and that household is selected
for occupancy, each household member shall update the records on file
and recertify the accuracy of the information as required herein.
Information shall be reviewed and the eligibility status reconfirmed.
The household selected shall only at that point proceed to make the
legal and financial arrangements to acquire or lease the dwelling.
K.
If a household selected for occupancy is unable to obtain financing, it shall lose its eligibility for that dwelling, after notice, but shall retain its priority status for a similar appropriate dwelling as other dwellings become available and as long as the household remains eligible. When notified of the availability of another dwelling, updating and recertifying data as outlined in Subsection J above is required.
L.
A certificate of eligibility may be withheld by the Township Administrative
Agent or Administrative Agent as a result of an applicant's inability
to demonstrate sufficient present assets for down payment or security
deposit purposes.
M.
A certificate of eligibility may be withheld by the Township Administrative
Agent or Administrative Agent as a result of an applicant's inability
to verify funds claimed as assets, household composition or other
facts represented.
N.
A certificate of eligibility shall be denied by the Township Administrative
Agent or Administrative Agent as a result of any willful and material
misstatement of fact made by the applicant in seeking eligibility.
A.
In establishing rents and sales prices of affordable housing units,
the administrative agent shall follow the procedures as set forth
in the Uniform Housing Affordability Controls.
B.
Required pricing stratification.
(1)
The maximum rent for affordable units within each affordable development
shall be affordable to households earning no more than 60% of median
income and the average rent for low- and moderate-income units shall
be affordable to households earning no more than 52% of median income.
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 units shall be affordable to households earning
no more than 30% of median income.
(2)
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. Each affordable development shall
achieve an affordability average of 55% for restricted-ownership units.
In achieving this affordability average, moderate-income ownership
units shall be available for at least three different prices for each
bedroom type, and low-income ownership units shall be available for
at least two different prices for each bedroom type.
C.
Initial pricing and annual increases of affordable dwellings.
(1)
Owner-occupied dwellings initial pricing. The initial purchase price
for all restricted-ownership units shall be calculated so that the
monthly carrying cost of the dwelling, 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; provided, however,
that the price shall be subject to the affordability average requirement
as noted above.
(2)
Rental dwellings initial pricing. The initial rent for a restricted
rental dwelling shall be calculated so as not to exceed 30% of the
eligible monthly income of the appropriate household size as determined
under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided,
however, that the rent shall be subject to the affordability average
requirement.
(3)
Owner-occupied dwellings annual increase. 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.
(4)
Rental dwellings annual increase. The rent of low- and moderate-income
units may be increased annually based on the percentage increase in
the Housing Consumer Price Index for the United States. This increase
shall not exceed 9% in any one year. Rents for units constructed pursuant
to low-income housing tax credit regulations shall be indexed pursuant
to the regulations governing low-income housing tax credits.
(5)
Utilities. Tenant-paid utilities that are included in the utility
allowance shall be so stated in the lease and shall be consistent
with the utility allowance approved by the NJ Department of Community
Affairs for its Section 8 program.
D.
Price restrictions for restricted-ownership units, homeowner association
fees and resale prices.
(1)
The initial purchase price for a restricted-ownership dwelling shall
be approved by the Township Administrative Agent.
(2)
The Township 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 homeowners and the market homeowners.
E.
The owners of restricted-ownership units may apply to the Township
Administrative Agent to increase the maximum sales price for the dwelling
on the basis of eligible capital improvements. Eligible capital improvements
shall be those that render the dwelling suitable for a larger household
or the addition of a bathroom.
A.
The affordability control period for a restricted-ownership dwelling
shall commence on the date the initial certified household takes title
to the dwelling.
B.
Each restricted-ownership dwelling shall remain subject to the requirements
of UHAC until the Township of Moorestown elects to release the dwelling
from such requirements pursuant to action taken in compliance with
N.J.A.C. 5:80-26.5(g). Prior to such municipal election, a restricted-ownership
dwelling shall remain subject to the requirements of N.J.A.C. 5-80-26.5,
for a period of at least 30 years, and for a period of at least 10
years or the sale and repayment of any loan proceeds for owner-occupied
units that were rehabilitated. Where a dwelling unit is entered into
an extension of expiring controls program, the time period for the
ownership restriction shall be at least 30 years from the date that
the existing or prior restriction would have expired.
C.
Each restricted-ownership dwelling shall remain in compliance with
and subject to the requirements of N.J.A.C. 5:80-26.5 for control
periods, N.J.A.C. 5:80-26.6 for price restrictions, N.J.A.C. 5:80-26.7
for buyer income eligibility, N.J.A.C. 5:80-26.8 for limitations on
indebtedness and subordination, N.J.A.C. 5:80-26.9 for capital improvements,
and N.J.A.C. 5:80-26.10 for maintenance.
D.
Limitations on indebtedness secured by restricted-ownership dwelling;
subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted-ownership
dwelling, the Township Administrative Agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section.
(2)
With the exception of original purchase money mortgages, during a
control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted-ownership
dwelling to exceed 95% of the maximum allowable resale price of that
dwelling, as such price is determined by the Township Administrative
Agent in accordance with N.J.A.C. 5:80-26.6(b).
E.
Capital improvements to restricted-ownership units.
(1)
The owners of restricted-ownership units may apply to the Township
Administrative Agent to increase the maximum sales price for the dwelling
on the basis of capital improvements made since the purchase of the
dwelling. Eligible capital improvements shall be those that render
the dwelling suitable for a larger household or that adds an additional
bathroom. In no event shall the maximum sales price of an improved
housing dwelling exceed the limits of affordability for the larger
household.
(2)
Upon the resale of a restricted-ownership dwelling, all items of
property that are permanently affixed to the dwelling or were included
when the dwelling 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 Township 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 dwelling and not included
in the base price may be made a condition of the dwelling resale provided
the price, which shall be subject to ten-year, straight-line depreciation,
has been approved by the Township Administrative Agent. Unless otherwise
approved by the Township Administrative Agent, the purchase of any
property other than central air conditioning shall not be made a condition
of the dwelling 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.
F.
Notice of resale, recapture covenant and 95/5 purchase options.
(1)
The owner of the property is required to notify the Township Administrative
Agent by certified mail of any intent to sell the property 90 calendar
days prior to entering into an agreement for the first nonexempt sale
of the property after the conclusion of the period of affordability
controls on restricted units in effect at the time the property was
first restricted as part of the Affordable Housing Program.
(2)
The municipal Construction Code Official shall inspect the available
affordable resale unit for construction and property maintenance code
violation(s). The Code Official shall submit in writing to the owner
and the Township Administrative Agent a listing of any violation(s).
The estimated cost of the repairs not completed by the owner prior
to resale shall be deducted from the resale price. The cost of repairs
not undertaken by the owner will be determined by an estimator(s)
and/or contractor(s) supplied by the Township Administrative Agent
and charged back to the seller.
(3)
Upon the first such nonexempt sale of the property, 95% of the difference between the actual sale price; and the regulated maximum sales price that would be applicable were the period of affordability controls on restricted units still in effect, shall be paid at closing to the Township of Moorestown and placed in the Affordable Housing Trust Fund; or, to the NJ Department of Community Affairs or NJ Housing and Mortgage Finance Agency, when acting as receiving agent for the municipality. Exempt sales shall be as listed in § 97-14.
(4)
Such nonexempt sale is subject to the options provided for in N.J.A.C.
5:80-26.20 (Option to buy 95/5 units), N.J.A.C. 5:80-26.21 (municipal
option on 95/5 units), N.J.A.C. 5:80-26.22 (state option on 95/5 units),
N.J.A.C. 5:80-26.23 (nonprofit option on 95/5 units), N.J.A.C. 5:80-26.24
(seller option on 95/5 units), N.J.A.C. 5:80-26.25 (municipal rejection
of repayment option on 95/5 units) and N.J.A.C. 5:80-26.26 (continued
application of options to create, rehabilitate or maintain 95/5 units)
of UHAC.
A.
Each restricted rental dwelling shall remain subject to the requirements
of UHAC until the Township of Moorestown elects to release the dwelling
from such requirement pursuant to action taken in compliance with
N.J.A.C. 5:80-26.11(e). Prior to such a municipal election, a restricted
rental dwelling shall remain subject to the requirements of N.J.A.C.
5:80-26.11, for a minimum of 30 years, and for a period of at least
10 years for the sale and repayment of any loan proceeds for renter-occupied
units that were rehabilitated and for affordable accessory apartments.
B.
Each restricted rental dwelling shall remain in compliance with and
subject to the requirements of N.J.A.C. 5:80-26.11 for control periods,
N.J.A.C. 5:80-26.12 for restrictions on rents, and N.J.A.C. 5:80-26.13
for tenant income eligibility.
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 Burlington. A copy of the filed document shall be
provided to the Township Administrative Agent within 30 days of the
receipt of a certificate of occupancy.
D.
A restricted rental dwelling shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
E.
Rent restrictions for rental units; leases.
(1)
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 dwelling shall be provided to the Township
Administrative Agent.
(2)
No additional fees or charges shall be added to the approved rent
without the express written approval of the Township Administrative
Agent.
(3)
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted dwelling
and shall be payable to the Township Administrative Agent to be applied
to the costs of administering the controls applicable to the dwelling
as set forth in this chapter.
The following barrier free accessibility and adaptability requirements
shall apply to all new construction:
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 Subcode, N.J.A.C.
5:23-7.
B.
All restricted townhouse dwellings and all restricted units in other
multistory buildings in which a restricted dwelling is attached to
at least one other dwelling 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 interior accessible route of travel shall not be required between
stories within an individual dwelling;
(5)
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
(6)
An accessible entranceway in accordance with N.J.S.A. 52:27D-311a
and the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that the
municipality has collected funds from the developer sufficient to
make 10% of the adaptable entrances in the development accessible:
(a)
Where a dwelling has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling, an accessible entrance shall be installed.
(b)
To this end, the developer of restricted units shall deposit
funds within the affordable housing trust fund of the Township of
Moorestown sufficient to install accessible entrances in 10% of the
affordable units that have been constructed with adaptable entrances.
(c)
The funds deposited under subsection B(6) above shall be used by the Township for the sole purpose of making the adaptable entrance of any affordable dwelling accessible when requested to do so by a person with a disability who occupies or intends to occupy the dwelling and requires an accessible entrance.
(7)
The developer of the restricted units shall submit a design plan
and cost estimate for the conversion from an adaptable to an accessible
entrance to the Construction Code Official.
(8)
Once the Construction Code 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 by
the developer shall be made into the municipality's affordable
housing trust fund by the Chief Financial Officer who shall ensure
that the funds are appropriately earmarked for accessibility purposes.
(9)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that physical or environmental conditions
of the site render it 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.
A.
The following transactions shall be deemed "nonsales" for purposes
of these regulations and the owner receiving title by virtue of any
of the following transactions shall be entitled to a statement of
exemption to the owner receiving title by virtue of any of the following
transactions:
(1)
Transfer of ownership of an affordable sales unit between husband
and wife;
(2)
Transfer of ownership of an affordable sales unit between former
spouses ordered as a result of a judicial decree of divorce (and not
including sales to third parties);
(3)
Transfer of ownership of an affordable unit between family members
as a result of inheritance;
(4)
Transfer of ownership of an affordable unit through an executor's
deed to a Class A beneficiary;
(5)
Transfer of ownership of an affordable unit through an order of the
Superior Court or other court, in a foreclosure proceeding or transfer
in lieu of foreclosure after a foreclosure proceeding has commenced.
B.
Except for the income level of the family acquiring title by an exempt transaction, the exempt transfer will not eliminate any restrictions set forth herein, including, but not limited to, the unit remaining the prime residence of the head of household and the requirement for resale to low- and moderate-income families as applicable and all such restrictions shall remain in effect following the exempt transfer except as stated in Subsection A(5).
C.
Should a mortgagee acquire title pursuant to Subsection A(5) it may resell the unit to any family, regardless of income, with the municipality having the right of first refusal. The sales price to the municipality is the amount necessary to cure the foreclosure. This includes all principal and interest due to the mortgagee and other lien holders, repayment of equity to the owner prior to foreclosure and the costs of foreclosure. If the municipality does not purchase the unit, the mortgagee may sell the unit without any of the restrictions set forth in this section. The amount of the sale above that which is necessary to cure the foreclosure shall be paid to the Township of Moorestown and placed in the affordable housing trust fund.
Initial and subsequent owners of affordable housing units shall
occupy the dwelling as their principal residence. Rental or subleasing
of the affordable housing unit is expressly forbidden.
A.
Nothing in these rules should be construed to limit the rights and
duties of the owner and tenant to maintain the dwelling in accordance
with all appropriate New Jersey State or municipal construction and
property maintenance codes.
B.
Notwithstanding anything to the contrary in this chapter, any member
of a household occupying a dwelling under this chapter and subject
to the regulations of the Township of Moorestown is subject to eviction
for any reasons allowed under applicable New Jersey law. The provisions
of this chapter are not intended to confer any additional rights or
obligations on property owners or tenants other than those mandated
by statute or required by the courts of the State of New Jersey or
the duly adopted regulations of any of its agencies.
A.
Purpose. The purpose of this section is to establish administrative
procedures to ensure a wide dissemination of knowledge of affordable
housing units as they become available to the very-low-, low- and
moderate-income population, and that the selection of tenants or homeowners,
as the case may be, meets the requirements of UHAC.
B.
An 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 that are being marketed
by a developer or sponsor of affordable housing. An Affirmative Marketing
Plan is also intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
C.
Affirmative marketing requirements. Within the overall framework
of the municipality's affirmative marketing program, all affordable
housing units in Moorestown Township shall be marketed in accordance
with the provisions in this section unless otherwise provided for
in N.J.A.C. 5:80-26-1. An Affirmative Marketing Plan shall be created
for each development that contains or will contain low- and moderate-income
units, including those that are part of the Township's prior
round Housing Element and its current Housing Element and those that
may be constructed in future developments not yet anticipated. This
Affirmative Marketing Plan shall also apply to any rehabilitated units
that are vacated and rerented during the applicable period of controls
for rehabilitated rental units when Moorestown is allocated a rehabilitation
component.
D.
Plan preparation. The Township Administrative Agent or other Administrative
Agent shall prepare an Affirmative Marketing Plan for each affordable
housing program, as applicable, comporting with N.J.A.C. 5:80-26.15.
The Township Administrative Agent shall review and approve any other
Administrative Agent's Plan for use in the municipality. Regardless
of the drafting agent, the Affirmative Marketing Plan is intended
to be used by developers of affordable housing restricted to low-
and moderate-income households located within the municipality. The
Administrative Agent responsible for specific affordable housing programs
or developments shall ensure that the affirmative marketing of all
affordable units is consistent with these provisions.
E.
Affirmative marketing implementation. The Affirmative Marketing Plan
includes regulations for qualification of income eligibility, price
and rent restrictions, bedroom distribution, affordability control
periods, and unit marketing in accordance to N.J.A.C. 5:80-26. All
newly created affordable units will comply with the thirty-year affordability
control required by UHAC, N.J.A.C. 5:80-26.5 and -26.11, except for
accessory apartments, which shall be for 10 years. This plan will
be adhered to by all private, nonprofit or municipal developers of
affordable housing units and will cover the period of deed restriction
or affordability controls on each affordable unit. The Affirmative
Marketing Plan for each affordable housing development shall meet
the following minimum requirements:
(1)
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 5, comprised
of Burlington, Camden and Gloucester Counties.
(2)
Although the Township has the ultimate responsibility for implementing
all aspects of Moorestown's affordable housing program, the Administrative
Agent designated by the Township Administrative Agent shall assure
that the affirmative marketing of all affordable units is consistent
with the Affirmative Marketing Plan for the municipality.
(3)
The Administrative Agent shall provide a list of counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit problems, mortgage qualification, rental lease requirements,
and landlord/tenant law.
(4)
The affirmative marketing process for available affordable units
shall begin at least four months prior to the expected date of occupancy.
Advertising and outreach shall take place during the first week of
the marketing program and each month thereafter until all of the affordable
units have been leased or sold.
(5)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township of Moorestown.
(6)
The Affirmative Marketing Plan for each affordable housing development
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)
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 Moorestown Town Hall and the Moorestown Library; and the developer's
rental office. Applications shall be mailed or emailed to prospective
applicants upon request, and the application form(s) shall be available
online on the municipal website.
(8)
The Township Administrative Agent shall develop, maintain and update
a list of community contact person(s) and/or organizations(s) in the
Region 5 Housing Area for the use of the Township and other Administrative
Agents. In addition, the list shall also include Fair Share Housing
Center, the New Jersey State Conference of the NAACP, the Latino Action
Network, the NAACP Southern Burlington County Branch, the NAACP Willingboro
Branch, Moorestown Ecumenical Neighborhood Development (MEND), Lutheran
Social Ministries (LSM) and the Burlington County Community Action
Program (BCCAP), which entities shall receive specific notice of all
available affordable housing units along with copies of application
forms. This list shall be updated periodically. The list shall contain
organizations that will aid in the affirmative marketing program with
particular emphasis on contacts with outreach to groups and individuals
that are least likely to apply for affordable housing within the region.
A representative sample of the organizations on the list not otherwise
requiring specific notice herein shall be contacted as part of the
affirmative marketing effort as approved by the Township Administrative
Agent.
(9)
The Affirmative Marketing Plan of a developer or operator of restricted
units shall be approved by the Township Administrative Agent prior
to implementation.
A.
Upon the occurrence of a breach of any of the regulations governing
the affordable dwelling by an owner, developer or tenant the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income dwelling and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the court to have violated any provision of the regulations
governing affordable housing units the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the court:
(a)
A fine of not more than $1,000 together with reasonable attorney
fees and the cost of the suit. Each and every day that the violation
continues or exists shall be considered a separate and specific violation
of these provisions and not as a continuing offense;
(b)
In the case of an owner who has rented his or her low- or moderate-income
dwelling in violation of the regulations governing affordable housing
units, payment into the Township of Moorestown's Affordable Housing
Trust Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented his or her low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation
costs, as determined by the court.
(2)
The municipality may file a court action in the Superior Court seeking
a judgment, which would result in the termination of the owner's
equity or other interest in the dwelling, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit. Such
judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the County Sheriff, at which time
the low- and moderate-income unit of the violating owner shall be
sold at a sale price which is not less than the amount necessary to
fully satisfy and pay off any first purchase money mortgage and prior
liens and the costs of the enforcement proceedings incurred by the
municipality, including attorney's fees. The violating owner
shall have the right to possession terminated as well as the title
conveyed pursuant to the Sheriff's sale.
C.
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien upon the dwelling and
any prior liens on the dwelling. The excess, if any, shall be applied
to reimburse the Township 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 Township
in full as aforesaid, the violating owner shall be personally responsible
for the deficiency, in addition to any and all costs incurred by the
Township in connection with collecting said deficiency. The remainder,
if any, up to a maximum of the amount the owner would be entitled
to if he or she were to sell the dwelling as permitted by N.J.S.A.
5:80-26.1 et seq., shall be placed in escrow by the Township for the
owner and shall be held in such escrow for a period of two years or
until such time as the owner shall make a claim with the Township
for the same. Failure of the owner to claim said sum within the two-year
period shall automatically result in a forfeiture of said remainder
to the municipality and paid into the Affordable Housing Trust Fund.
Any interest accrued or earned on the remainder while being held in
escrow shall belong to and shall be paid to the Moorestown Township
Affordable Housing Fund whether the remainder is paid to the owner
or forfeited to the Township. Any excess funds derived over and above
the sum due the owner shall be paid over to the Township's Affordable
Housing Trust Fund.
D.
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 very-low-, 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 dwelling. 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.
E.
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.
F.
Failure of the very-low-, 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.
G.
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.
H.
Right to cure. The Township may, at its option, advance and pay all
sums necessary to protect, preserve and retain the dwelling as an
affordable dwelling, subject to the terms of this chapter. All sums
so advanced and paid by the Township shall become a lien against said
dwelling and shall have a higher priority than any lien except the
first purchase money mortgage lien and liens by duly authorized government
agencies. Such sums may include but are not limited to insurance premiums,
taxes, assessments (public or private) and costs of repair necessary
to bring the dwelling up to any and all applicable local, state or
federal codes and liens which may be or become prior and senior to
any first purchase money mortgage as a lien on the dwelling or any
part thereof. If, in the event of a default or nonpayment by the owner
of an affordable dwelling, any first mortgagee or other creditor of
an owner of an affordable dwelling exercises its contractual or legal
remedies available, the owner shall notify the Administrative Agent
and the Township Solicitor of the Township, in writing, within 10
business days of notification by the first mortgagee or creditor and
no later than 10 business days after service of any summons and complaint,
and the Township shall have the option to purchase, redeem or cure
any default upon such terms and conditions as may be agreeable to
all parties in interest and/or to acquire the first purchase money
mortgage to the dwelling, thereby replacing the first mortgagee as
the first mortgagee of the dwelling. The Township shall have the same
priority of lien as was held by the first mortgagee at the time the
Township acquires such first purchase money mortgage and shall have
the right of subrogation with respect to any other claim or lien it
satisfies or acquires.
I.
Provisions for first purchase money mortgagees.
(1)
The terms and restrictions of this section shall be subordinate only
to a first purchase money mortgage lien on any affordable dwelling
and in no way shall impair the first mortgagee's ability to exercise
the contract remedies available to it in the event of default as set
forth in the first purchase money mortgage. The first mortgagee and/or
mortgage servicer shall serve written notice upon the Township within
10 business days after the first purchase money mortgage is two months
in arrears and again within 10 business days of the filing of a complaint
seeking foreclosure of the first purchase money mortgage held on an
affordable dwelling. However, a judgment of foreclosure upon the property
shall in no instance terminate the conditions and requirements of
this chapter maintaining the dwelling as an affordable, income-restricted
residence.
(2)
The Township of Moorestown or any instrumentality designated by the
Township shall have the right to purchase any mortgage which is in
default at any time prior to the entry of a foreclosure judgment or
within the redemption period thereafter. Notification of a default
and of the institution of a foreclosure action and of a Sheriff's
sale shall be served, in writing, upon the Township Clerk and Municipal
Attorney. The Township of Moorestown shall at all times be considered
a party in interest and shall have the right to be joined as a party
defendant and/or shall have the right to intervene in any foreclosure
action seeking foreclosure of a first mortgage and/or shall have the
right to redeem and acquire the owner's equity of redemption
or to acquire the dwelling from the owner upon such terms and conditions
as may be determined by the Township.
(3)
Surplus funds. In the event of a foreclosure sale by the holder of
the first purchase money mortgage, the owner shall be personally obligated
to pay to the Township any excess funds, but only to the extent that
such excess funds exceed the difference between what the owner could
have resold his dwelling for under this chapter at the time of the
foreclosure sale and the amount necessary to redeem and satisfy the
first purchase money mortgage debt, including costs of foreclosure
and costs of repairs necessary to bring the dwelling up to any and
all applicable local, state or federal codes. For the purposes of
this subsection, excess funds shall be the total paid to the Sheriff
in excess of the amount required to pay and satisfy the first purchase
money mortgage, including the costs of foreclosure, even if junior
creditors actually receive payment from said surplus funds to the
exclusion of the owner. Such excess funds shall be paid directly to
the Township of Moorestown and placed in the Affordable Housing Trust
Fund. The Township is hereby given a first priority lien, second only
to the first mortgagee for any taxes or public assessments by a duly
authorized governmental body up to the full amount of excess funds.
This obligation of the owner to pay this full amount to the Township
shall be deemed to be a personal obligation of the owner of record
at the time of the foreclosure sale, and the Township is hereby empowered
to enforce this obligation in any appropriate court of law or equity
as though the same were a personal contractual obligation of the owner.
Neither the first mortgagee nor the purchaser at the foreclosure sale
shall be responsible or liable to the Township for any portion of
this excess. The Township shall deposit any funds received in the
Affordable Housing Trust Fund and use it for the purposes as set forth
in the Housing Element and Fair Share Plan.