[Ord. #97-1080]
It is the purpose of this chapter to help in meeting Hopewell
Township's fair share housing obligation through provisions designed
to facilitate the voluntary rehabilitation of substandard housing
units occupied by low- and/or moderate-income households.
[Ord. #97-1080]
Definitions concerning housing rehabilitation not found below
are the same as those definitions that appear in the rules and regulations
adopted by the Council on Affordable Housing in N.J.A.C. 5:93 et seq.
As used in this plan:
Shall mean the person or persons applying for technical or
financial assistance for housing rehabilitation according to this
plan.
Shall mean the Council established by the New Jersey Fair
Housing Act, N.J.S.A. 52:27D-301 et seq., and also is known as COAH.
Shall mean a person hired or appointed by the township to
perform the duties as described in this plan.
Shall mean a qualified inspector hired or appointed by the
township to perform the duties described in this plan.
Shall mean a household with a gross household income equal
to 50% or less of the median gross household income for households
of the same size within the housing region in which the housing is
located as determined by the Council on Affordable Housing in N.J.A.C.
5:93 et seq. or subsequent rules and regulations.
Shall mean housing affordable according to Federal Department
of Housing and Urban Development or other recognized standards for
home ownership and rental cost and occupied or reserved for occupancy
by a low-income household.
Shall mean a household with a gross household income equal
to or more than 50% but less than 80% of the median gross household
income for households of the same size within the housing region in
which the housing is located as determined by the Council on Affordable
Housing in N.J.A.C. 5:93 et seq. or subsequent rules and regulations.
Shall mean housing affordable according to Federal Department
of Housing and Urban Development (HUD) or other recognized standards
of home ownership and rental cost and occupied or reserved for occupancy
by a moderate-income household.
Shall mean a previously substandard housing unit that has
undergone significant renovation to meet municipal or other applicable
housing code standards as provided in this plan.
Shall mean the procedures and provisions of this plan to
provide technical and/or financial assistance for the rehabilitation
of substandard housing units occupied by low or moderate-income households.
Shall mean the schedule of uncapped income limits published
by HUD that defines 50% and 80% of median income by household size.
Shall mean a housing unit with health and safety code violations
that require the repair or replacement of a major system. A major
system includes a roof, plumbing (including wells), heating, electricity,
sanitary plumbing (including septic systems) and/or a loan bearing
structural system.
Shall mean an allowance for utilities that is consistent
with the personal benefit expense allowance for utilities as defined
by HUD or a similar allowance approved by COAH.
[Ord. #97-1080]
Only owners of dwelling units within the Township of Hopewell
are eligible for the provisions made available through this plan.
Eligibility further is determined by the following criteria:
a.
The homeowner either must live in a low or moderate-income household
or must agree to rent the house to be rehabilitated to a low or moderate-income
household. Proof of the owner's or the prospective renter's
income will be required by the housing administrator.
b.
A dwelling unit proposed to be rehabilitated must be considered a
substandard housing unit according to this section.
c.
The rehabilitation, upon completion, will result in a safe and sound
dwelling unit and the satisfactory improvement of all deficient components
of the eligible unit to meet municipal or other applicable housing
code standards.
d.
The homeowner must agree, in writing, to comply with all of the requirements
set forth in this section.
[Ord. #97-1080]
a.
Housing Administrator. The township committee shall appoint or retain
the services of a housing administrator who will report directly to
the township committee. The housing administrator shall establish
specific, regular hours to meet with interested homeowners at a specified
location. The administrator's duties shall include:
1.
Affirmative marketing of the township's housing rehabilitation
program through one or more of the following methods:
(a)
Holding at least one public meeting, with a block advertisement
published in the official newspaper, to answer questions about the
program;
(b)
Providing a poster highlighting the main features of the program
to be hung on the community bulletin board;
(c)
Issuing periodic press and/or cablevision releases to the official
newspaper, to inform the public of news related to the program and
to promote interest in the program; and
(d)
Preparing information brochures and application packets for
distribution to interested homeowners.
2.
Developing necessary application and financial statement forms to
be used by homeowners interested in applying for this program. The
application will clearly say that any owner who uses the provisions
of this plan for rental rehabilitation purposes will agree to place
a deed restriction on his or her property. The application shall also
say that any homeowner who receives a loan under the provisions of
this plan will agree to place a lien, as specified in the rehabilitation
program, on his or her property. In addition, the application shall
require proof of ownership and general information on the property
to be rehabilitated. Proposals for rehabilitation also should include
a description and estimated cost of the work needed to improve the
house to meet the parameters of the rehabilitation program. The financial
statements form shall indicate that the financial information submitted
will be kept strictly confidential.
3.
Determining the eligibility of each applicant based on the requirements
of this plan.
4.
Maintaining a comprehensive file of all sources of financial assistance
from federal, state and county programs for the rehabilitation of
housing occupied by low and moderate-income households. The file on
each program shall include general information about the program,
application filing procedures and deadlines, the total appropriation
for the program, and funding specifications for individual projects.
5.
Preparing documents for use as applications for grants or loans to
eligible applicants form relevant federal, state or county programs
for the rehabilitation of housing occupied by low and moderate-income
households. In addition, when applicable, the housing administrator
will provide technical assistance to eligible applicants who must
apply directly to federal, state or county programs to fund housing
rehabilitation.
6.
Providing technical assistance to eligible applicants to apply to
the township for rehabilitation assistance.
7.
Monitoring and overseeing of the deed restrictions and lien placed
on properties that participate in the rehabilitation program.
8.
Preparing and presenting an annual report to the township committee
at the close of each fiscal year. The report shall compare the rehabilitation
program's objectives with the accomplishments of each year. The
report shall indicate the status, including any information available
from the inspection officer, of the condition of each unit that has
been or will be rehabilitated and shall include a full financial accounting
of the program. The report may also contain recommendations for improving
either the administrative or substantive elements of the program.
The report shall be forwarded to the Council on Affordable Housing.
b.
Staffing-Inspection Officer. The township committee shall designate
a qualified inspection officer who will report to the township committee.
The duties of the inspection officer shall include:
1.
Determining that the dwelling unit proposed for rehabilitation qualifies
as under the provisions of this section. The inspection officer's
evaluation of the dwelling unit deficiencies shall be reported in
writing to the housing administrator.
2.
Determining whether or not the proposed description and cost estimate
of work needed to rehabilitate the subject structure will meet the
parameters of the program. The inspection officer's report on
the description and cost of work shall be made in writing to the housing
administrator.
3.
Inspecting and, when completed, certifying that the rehabilitated
unit meets all municipal or other applicable housing code standards.
The certification shall bear the date of the inspection and shall
be indicated by a written report to the housing administrator.
c.
Staffing-Other.
1.
The township may enlist the assistance of interested volunteers to
serve as an "outreach committee" to carry out a variety of procedures
to market the township rehabilitation program. Example of the procedures
that may be employed include:
[Ord. #97-1080]
a.
The township has included in past annual budgets sufficient funds
to pay for the costs of administering the housing rehabilitation program.
The money expended for preparing and implementing the housing rehabilitation
program, according to the Fair Housing Act, shall be considered a
mandated expenditure exempt from the limitations on final appropriations
imposed pursuant to P.L. 1976, c.68 (C.40A:4-45.1 et seq.).
b.
The township treasurer has been authorized to establish and maintain
an interest bearing Fair Housing Trust account. The Fair Housing Trust
account hereby is continued and all funds therein that have previously
been or will hereafter be appropriated by the township committee for
the purposes of funding the township's fair housing obligation
hereby are declared to be valid and lawful appropriations of the township
for the purposes set forth herein.
c.
The township established development fees and an interest bearing
Housing Trust Fund account to receive development fees paid by residential
and nonresidential developers. Money in this account may be used for
any activity approved by COAH for addressing the township's low
and moderate-income housing obligation including housing rehabilitation.
d.
A minimum of $10,000 per unit shall be provided of which $8,000 shall
be allocated to the actual capital cost of rehabilitation and $2,000
shall be allocated to administrative costs. The actual capital costs
may be less than $8,000 if, at the end of each two-year period, the
rehabilitation averages at least $8,000 per unit. Costs associated
with any required cost estimates shall be paid as administrative costs
of the program and shall not be charged to applicants.
e.
Procedures for Application, Review and Approval.
1.
Interested homeowner will be able to secure information and application
packets from the housing administrator or by calling or visiting the
township clerk during office hours.
2.
An interested homeowner will submit a completed application to the
housing administrator.
3.
The housing administrator will review the application for completeness
and, once an application is complete, determine whether the applicant
either meets income eligibility requirements or has signed a binding
agreement stating his or her willingness to rent to a low or moderate-income
household.
4.
Upon a determination that an applicant interested in rehabilitation
is eligible, the inspection officer will inspect the property to rule
on whether it qualifies as "substandard" under the provisions of the
program and whether or not the proposed description and cost estimate
of work needed to improve the house will meet the parameters of the
housing rehabilitation program. The inspection officer's determination
will be submitted in writing to the housing administrator.
5.
If the inspection officer determines that a unit proposed for rehabilitation
qualifies as "substandard" but recommends an amended description and
cost estimate of the work necessary to rehabilitate the unit, the
applicant will be asked to revise the application to address, satisfactorily,
the comments of the inspection officer.
6.
If the inspection officer determines that a unit proposed for rehabilitation
qualifies as "substandard" and that the proposed description and cost
estimate of the work necessary to rehabilitate the unit is satisfactory,
the housing administrator will determine whether or not the applicant
is eligible for financial assistance to complete the work from a federal,
state or county program and whether there is a realistic chance of
the applicant receiving assistance from that program.
7.
If the housing administrator determines that an applicant is eligible
for financial assistance for rehabilitation from a federal, state
or county program and there is a realistic chance for the applicant
to receive such assistance, the housing administrator will offer as
much technical assistance as the applicant desires and as the housing
administrator can reasonably provide to prepare an application for
the relevant programs.
8.
When the housing administrator determines that an applicant is eligible
for financial assistance to complete the rehabilitation, the housing
administrator will forward the funding request to the township committee
for a case approval. The housing administrator shall be available
to discuss the application with the township committee at the time
of its formal consideration.
9.
If the township committee approves the application, the rehabilitation
may begin as soon as the applicant has signed all of the necessary
agreements.
10.
If the township committee denies the application for rehabilitation,
the specific reasons for rejection shall be given. The committee may
deny an application only if it can be shown that the applicant is
ineligible or that the proposed work plan is insufficient to bring
the building into conformance with the parameters of the housing rehabilitation
program.
[Ord. #97-1080]
Based on the appropriations described previously, loans will
be made available from the township to eligible applicants under the
terms specified below.
a.
Rental Dwelling Unit. The following terms will apply to loans made
for units that are owned be households who do not qualify as low or
moderate income but who will agree to rent the property to a low or
moderate-income household:
1.
The township will make a loan to the applicant for the total amount
of the cost of rehabilitation. Although the loan will be made to the
applicant, the proceeds of the loan will be paid to the individual(s)
or business(es) who sell the material and/or labor for the project.
2.
The interest rate will be fixed at an annual rate of 5%.
3.
Payments on the loan principle and interest will be deferred for
a ten-year period.
4.
Repayments of the loan principle and interest will become payable
in full at the end of the 10 years. Prior to the end of the loan's
ten-year life, the township's housing administrator will submit
a letter to the owner indicating the date that the loan principle
and interest will become due and when the township expects payment.
5.
The owner will be required to insure the property for 80% of the
value of the improvement on the property. If necessary, the township
will also lend money for the cost of this insurance. The insurance
policy shall acknowledge the township's lien on the property.
6.
The owner may not rent to a non-income-eligible household.
b.
Owner-Occupied Dwelling Units. The following terms will apply to
units that are owner-occupied by low or moderate-income households:
1.
The township will make a loan to the applicant for the total amount
of the cost of rehabilitation. Although the loan will be made to the
applicant, the proceeds of the loan will be paid to the individual(s)
or business(es) who sell the material and/or labor for the project.
Homeowners who contribute "sweat equity" will not receive financial
enumeration.
2.
The interest rate will be fixed at an annual rate of 0%.
3.
Deferred payments on principle will be made available to the applicant
as explained below.
4.
Repayment of the loan will not be required until the sale of the
property. At the time of sale, the unpaid principle plus accrued interest
shall be paid to the township.
5.
The owner will be required to insure the property for 80% of the
value of the improvement on the property. If necessary, the township
will also lend money for the cost of this insurance. The insurance
policy shall acknowledge the township's lien on the property.
6.
The township committee may waive repayment of loan principle upon
consideration of an applicant's income level under conditions
established by the township committee.
[Ord. #97-1080]
a.
Liens of Property. Homeowners who receive financial assistance under
the provisions of this plan shall be required to place a lien on the
units to be rehabilitated. The following shall apply to such liens:
1.
The township shall be specified as the lien holder.
2.
The lien shall specify that the value of the lien equals the unpaid
portion (principle and, when applicable, interest) of the monetary
benefits (including tax abatements) received by the applicant under
the housing rehabilitation program.
3.
A record of the lien will be kept on the property tax record, in
the county's tax files in the housing administrator's records
and with the insurance policy as required by this section.
4.
If a property under such a lien is sold prior to fulfillment of the
obligations specified in the lien, the applicant will be required
to repay the township for the value of the lien. If the applicant
has made payments on a loan received under the rehabilitation program,
those payments shall be deducted from the value of the lien to determine
the amount due the township.
5.
In the event of the death of an applicant, if the property is transferred
or sold to either a surviving family member or dependent of the applicant
and that family member or dependent lives in a low or moderate-income
household, the lien may be transferred with the property and the surviving
family member or dependent will be required to satisfy the lien under
the same conditions as the original applicant, including the same
opportunity for deferral.
6.
All properties will be checked for liens prior to the issuance of
a continuing certificate of occupancy. The issuing officer shall report
any suspected violations of the program to the housing administrator
for further investigation.
7.
The homeowner shall notify the housing administrator, in writing,
of the intent to sell a unit that has been rehabilitated under this
program, if such a unit is still under restrictions required by this
program.
b.
Length of Affordability.
1.
Homeowners who are owner-occupants and receive financial assistance
under the provisions of this chapter shall place a lien on the property
to specify that only a low or moderate-income household may occupy
the housing unit. The lien shall take effect as soon as an application
has been approved and money has been made available for the rehabilitation
project.
2.
Homeowners who utilize the provisions of this section and who rent
the designated unit to someone else shall agree to place a deed restriction
on his or her property. The deed restriction will state that only
a low or moderate-income household will occupy a dwelling that has
been rehabilitated under the provisions of this ordinance. The deed
restriction shall be recorded and a copy of the recorded deed shall
be forwarded to the housing administrator. The deed restriction shall
go into effect as soon as the rehabilitation has been completed and
shall apply for 10 years. Sale of the deed restricted property shall
not affect the deed restriction.
c.
Pricing. Homeowners who intend to rent to new tenants during the
applicable deed restricted period, must follow the rental cost guidelines
as given below, and as further determined in N.J.A.C. 5:92-1 et seq.
or applicable subsequent rules and regulations.
1.
Rents, including a utility allowance, shall be set so as not to exceed
30% of the gross monthly income of the appropriate household size.
Maximum rent shall be calculated as a percentage of the current uncapped
Section 8 income limit or other recognized standard adopted by COAH
that applies to the rental housing unit.
2.
The following criteria shall be considered in determining rents:
(a)
Efficiency units shall be affordable to one person households;
(b)
One-bedroom units shall be affordable to two-person households;
(c)
Two-bedroom units shall be affordable to three-person households;
(d)
Three-bedroom units shall be affordable to five-person households;
and
(e)
Four-bedroom units shall be affordable to seven-person households.
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Housing units that satisfy the criteria in items (a) through
(e) above shall be considered affordable. Median income by household
size shall be established by the current uncapped Section 8 income
limits published by HUD or other recognized standard adopted by COAH.
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d.
Annual Indexed Increases. Upon application by the homeowner to the
housing administrator and approval by the township committee, the
rents of affordable housing units may be increased. This increase
shall be based on the percentage increase in median income for each
housing region as determined from the current uncapped Section 8 income
limits, published by HUD or other recognized standard adopted by COAH.
[Ord. #97-1080]
The housing rehabilitation program will comply with all the
regulations of the Council on Affordable Housing and with the applicable
rules and regulations of any funding or other assistance programs
that are applied for and approved.
[Ord. #01-1191]
The attached Housing Rehabilitation Program "Policy and Procedural
Manual," prepared by Housing Services, Inc., and dated March, 2001,
is hereby approved and adopted by the Township of Hopewell.[1]
[1]
Editor's Note: The manual referred to herein may be found
on file in the office of the Township Clerk.
