[HISTORY: Adopted by the Mayor and Council of the Borough
of Wenonah 11-17-2016 by Ord. No.
2016-11. Amendments noted where applicable.]
A.
Purpose. The purpose of this Article is to ensure that the implementation
and administration of the Borough of Wenonah's affordability housing
program meets the requirements for restricting affordable housing
to income qualified persons, that the programs are operated in a manner
consistent with the Fair Housing Act and extant rules of the Council
on Affordable Housing, and that the administration of the program
is conducted in an impartial and equitable manner.
B.
ADAPTABLE
ADMINISTRATIVE AGENT
AFFIRMATIVE MARKETING
AFFORDABILITY AVERAGE
AFFORDABLE
AFFORDABLE DEVELOPMENT
AFFORDABLE DWELLING OR UNIT
AFFORDABLE HOUSING DEVELOPMENT
AFFORDABLE HOUSING PROGRAM(S)
AGE-RESTRICTED DWELLING
AGENCY
CERTIFIED HOUSEHOLD
COAH
DCA
DEFICIENT HOUSING UNIT
DEVELOPER
DEVELOPMENT
DEVELOPMENT FEE
DWELLING
EQUALIZED ASSESSED VALUE
FAIR HOUSING ACT OR ACT
FAMILY
GREEN BUILDING STRATEGIES
GROSS AGGREGATE HOUSEHOLD INCOME
HOUSEHOLD
INCLUSIONARY DEVELOPMENT
INCOME
JUDGMENT OF REPOSE
LOW INCOME HOUSEHOLD
LOW INCOME UNIT
MAJOR SYSTEM
MARKET-RATE UNIT
MEDIAN INCOME
MODERATE INCOME HOUSEHOLD
MODERATE INCOME UNIT
MUNICIPAL HOUSING LIAISON
NON-EXEMPT SALE
OWNER
RANDOM SELECTION PROCESS
REGIONAL ASSET LIMIT
REHABILITATION
RENT
RESTRICTED UNIT
ROOM
SUBSTANTIAL CHANGE
SUBSTANTIVE CERTIFICATION
TANF
UHAC
UNIT
VERY LOW INCOME HOUSEHOLD
VERY LOW INCOME UNIT
WEATHERIZATION
Definitions. The following terms shall have the meanings indicated
unless a different meaning clearly is intended from the context:
Construction in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for administering the affordability
controls of this Article pursuant to N.J.A.C. 5:80-26.14 and N.J.S.A.
52:27D-301 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 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 dwelling 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 dwelling, that the rent for the dwelling
conforms to the standards set forth in N.J.A.C. 5:80-26.12, as may
be amended and supplemented.
A housing development all or a portion of which consists
of restricted units.
A dwelling proposed or created pursuant to the Fair Housing
Act, credited pursuant to N.J.S.A. 52:27D-307(c), and/or funded through
an affordable housing trust fund.
A development included in the Housing Element and Fair Share
Plan, or as otherwise identified by the Borough of Wenonah, and includes,
but is not limited to, an inclusionary development, a municipal construction
project or a 100% affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) the development
has been designated by the Secretary of the U.S. Department of Housing
and Urban Development as "housing for older persons" as defined in
Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.).
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act (N.J.S.A. 52:27D-301 et seq.) which has
primary jurisdiction for the administration of housing obligations
in accordance with sound regional planning consideration in the State.
The State of New Jersey Department of Community Affairs.
A housing dwelling with health and safety code violations
that require the repair or replacement of a major system. A major
system includes weatherization, roofing, plumbing (including wells),
heating, electricity, Borough sanitary plumbing (including septic
systems), lead paint abatement and/or load bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or of any
land proposed to be included in a development, including the holder
of an option or contract to purchase, or other person having an enforceable
proprietary interest in such land.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
Money paid by a developer for the improvement of property
as set forth in this Article and as permitted under N.J.S.A. 52:27D-329.2.
A room or series of connected rooms designed for permanent
human habitation containing living, cooking, sleeping and sanitary
facilities for one household.
The assessed value of a property divided by the current average
ratio of assessed value to true value for the municipality in which
the property is situated (the "equalization ratio") as determined
in accordance with Sections 1, 5 and 6 of P.L. 1973 c. 123 (N.J.S.A.
54:1-35a through -35c). Equalized assessed value may be estimated
at the time of building permit by the tax assessor utilizing estimates
for construction costs. Final "equalized assessed value" will be determined
at project completion by the Municipal Tax Assessor.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
See HOUSEHOLD.
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
The combined income, as defined herein, of all members of
a household or family.
All persons living as a single, nonprofit housekeeping dwelling,
whether or not the same are related by blood, marriage or otherwise.
A development containing both affordable dwellings and market
rate dwellings. This term includes, but is not necessarily limited
to: new construction, the conversion of a non-residential structure
to residential use and the creation of new affordable units through
the reconstruction of a vacant residential structure.
Income from all sources, including but 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.
An order issued by the Superior Court approving a municipality's
plan to satisfy its fair share housing obligation for very low, low
and moderate income housing.
A household with a total gross annual household income that
is equal to or less than 50% of the median gross household income
for households of the same size within the applicable housing region.
A restricted dwelling 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.
A dwelling not restricted to low- and moderate-income households
that may sell or rent at any price.
The median gross household income by household size for the
applicable housing region.
A household with a total gross annual household income of
more than 50% but less than 80% of the median gross household income
for households of the same size within the applicable housing.
A restricted dwelling that is affordable to a moderate income
household.
A municipal employee responsible for coordinating the municipality's
response to meeting its affordable housing obligation and who may
or may not be the designated Administrative Agent.
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.
The entity or family holding title to a dwelling unit.
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
dwelling (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median.
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 dwelling 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 UHORP or MONI.
A living room, dining room, recreation room, kitchen or bedroom.
Closets, bathrooms, cellars and attics shall be excluded, except where
portions of cellars and attics have been improved to meet housing
and building code requirements for rooms.
Any increase in an approved structure's bulk or floor area
where the result exceeds any of the requirements of the zoning district
in which it is located, and where any changes exceed the limitations
necessary to qualify as an insubstantial change. An "insubstantial
change" means a revision to a preliminary or final plat which does
not violate any requirements of the Borough's ordinances, does not
alter the amount of lower-income housing or other forms of participating
in the lower-income housing program as set forth in the approved development
and does not have changes which exceed any of the following: setback
in any yard of five feet; seven feet in building height; 1% in the
approved floor area ratio; 1% in the approved lot coverage (building,
paving and other coverages); five feet in building spacing; three
parking spaces; one loading space; five feet in driveway locations;
and 1% of the area of the approved site disturbance. A substitution
of similar landscaping material, lighting fixture and signage is not
a substantial change, provided that there is no change in approved
quantities and/or dimensions.
A determination by COAH approving a municipality's housing
element and fair share plan in accordance with the provisions of the
Fair Housing Act, N.J.S.A. 52:27D-301 et seq., and the rules and criteria
as set forth by COAH. A grant of substantive certification shall be
valid for a period of six years in accordance with the terms and conditions
contained in the substantive certification, or as otherwise determined
by a court of competent jurisdiction.
Temporary Assistance for Needy Families, a supplemental income
program within the U.S. Department of Health and Human Services administered
by the State of New Jersey.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
See DWELLING.
A household with a total gross annual household income equal
to 30% or less of the median gross household income for households
of the same size within the applicable housing.
A restricted dwelling that is affordable to a very low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
C.
The Borough Council shall appoint a Municipal Housing Liaison and
Administrative Agent or Agents of the Borough by resolution. The Borough
Council may also approve by resolution project specific administrative
agents proposed by the developers of low and moderate income housing
in its initial sales and rental of new dwellings. The Municipal Housing
Liaison shall be a municipal employee. Furthermore, the Municipal
Housing Liaison shall meet any criteria and training requirements
established by rule or order and shall be approved as appropriate.
The Municipal Housing Liaison may also be the Administrative Agent
provided such person is qualified to hold the position pursuant to
the requirements of N.J.A.C. 5:80-26.14(e). Nothing within this Article
shall be construed to affect the appointment or term of any prior
established Municipal Housing Liaison or Administrative Agent position.
D.
The Municipal Housing Liaison shall have the following duties:
(1)
Coordinate the activities of the Administrative Agent(s), Borough
Solicitor, Borough Planner, Borough Engineer, service contractors
and others to ensure compliance with the affordable housing obligation
of the Borough of Wenonah.
(2)
Act as the main point of contact between the Borough of Wenonah and
COAH, or its successor; affordable housing providers; the Administrative
Agent(s) and interested households.
(3)
Provide educational materials for the public; receive requests from
the public concerning the affordable housing program, and direct inquiries
to the appropriate official or service provider.
(4)
The Municipal Housing Liaison shall complete and return to COAH or
its successor all forms necessary for monitoring requirements related
to dwelling units in affordable housing projects and the collection
of development fees from residential and non-residential 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 Borough of Wenonah's
approved housing program, as well as to the expenditure of revenues
and implementation of the approved plan. In this activity, the Municipal
Housing Liaison shall have the assistance of the Administrative Agent(s).
(5)
The Municipal Housing Liaison shall keep records of the affirmative marketing activities undertaken in accordance with the affirmative marketing plan established by the Administrative Agent and any developer's administrative agent pursuant to Article II of this chapter. The records shall include, but not be limited to, the following:
(a)
Electronic reporting of affordable housing activity; any required
paper forms;
(b)
Copies of any press releases, brochures, flyers, print advertisements
and application forms used in the affirmative marketing program.
(c)
The income and demographic characteristics of each household
applying for and occupying income-restricted housing.
(d)
An evaluation of any necessary adjustments required to the affirmative
marketing program as communicated by the Administrative Agent.
(6)
Institute and maintain an effective means of communicating information
between owners and the Administrative Agent regarding the availability
of restricted dwellings for resale or rental.
(7)
Coordinate meetings with affordable housing providers and Administrative
Agents, as applicable.
(8)
Attend continuing educational opportunities on affordability controls,
compliance monitoring and affirmative marketing as offered or approved
by COAH or its successor agency.
(9)
Other duties as directed by the Borough Council and/or as required
for Municipal Housing Liaisons.
E.
The Borough Council shall designate by resolution and may contract
with same; one or more Administrative Agents to administer newly constructed
affordable units in accordance with N.J.S.A. 52:27D-301 et seq. and
N.J.A.C. 5:80-26.1, et seq., subject to the approval of COAH to the
degree the agency requires such approval. Each Administrative Agent
shall have the following duties:
(1)
To ensure as his or her primary responsibility that the restricted
dwellings under administration are sold or rented, as applicable,
only to very low, low- and moderate-income households in accordance
with the affordability controls as required in N.J.A.C. 5:80-26.1
et seq.
(3)
To create and maintain operating manuals for each program in the
Borough's housing element and fair share plan;
(4)
To solicit, schedule, conduct and follow up on interviews with interested
households;
(5)
Conduct interviews and obtain sufficient documentation of gross income
and assets upon which to base a determination of income eligibility
for a low or moderate income dwelling;
(6)
Provide written notification to each applicant as to the determination
of eligibility or non-eligibility;
(7)
Create and maintain a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the dwellings are located;
(8)
Except as otherwise permitted by law, to employ a random selection
process when referring households for certification to occupy affordable
dwellings;
(9)
Furnish to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted dwelling;
(10)
Create and maintain a file on each restricted dwelling for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(11)
To institute and maintain an effective means of communicating information
to the Municipal Housing Liaison and low and moderate income households
regarding the availability of restricted dwellings for resale or rerental;
(12)
Review and approve requests from owners of restricted dwellings who
wish to take out home equity loans or refinance during the term of
their ownership;
(13)
Review and approve requests to increase sales prices from owners
of restricted dwellings who wish to make capital improvements to the
dwellings that would affect the selling price (such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the cost of central air-conditioning systems);
(14)
Provide or direct qualified low and moderate income applicants to
counseling services on subjects such as budgeting, credit issues,
mortgage qualifications, lease requirements and landlord/tenant law;
and shall develop and maintain and update a list of entities and lenders
willing and able to perform such services.
(15)
Process requests and make determinations on requests by owners of
restricted dwellings for hardship waivers;
(16)
To communicate with lenders regarding foreclosures;
(17)
To ensure the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10 for affordable housing
units in the program;
(18)
To notify the Municipal Housing Liaison of an owner's intent to sell
a restricted dwelling;
(19)
To ensure that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Gloucester
County Register of Deeds after the termination of the affordability
controls for each restricted dwelling;
(20)
To assist the Municipal Housing Liaison in completing monitoring
reports to be submitted to COAH as required; and
(21)
Such other responsibilities as may be necessary to carry out the
provisions of this Article as directed by the Municipal Housing Liaison.
F.
The Administrative Agent shall create an operating manual for each
affordable housing program operated by the municipality that implements
the requirements of the Uniform Housing Affordability Controls rules
and regulations (N.J.A.C. 5:80-26.1, et seq.) subject to the approval
of COAH to the degree the agency requires such approval. Such program
manual shall be reviewed and adopted by the Borough Council, and shall
be a public record and available for review in the Office of the Borough
Clerk and in the office(s) of the Administrative Agent(s).
G.
The Administrative Agent of the Borough shall monitor any Borough
Council 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. The developer shall assume
all costs for the affirmative marketing and initial sales and rental
transactions associated with the low and moderate income housing development,
including the cost of review and oversight by the Borough's Administrative
Agent. The developer's administrative agent shall have all of responsibilities
as put forth in this Article and shall follow the same procedures
for affirmative marketing, qualifying individuals and households and
recording of property instruments as described herein for the Borough's
Administrative Agent. The Borough's Administrative Agent shall charge
a reasonable fee to developers, owners or sellers to cover the costs
of his or her oversight and administration of the affordability controls
program. Copies of all instruments to be recorded shall be provided
to the Borough's Administrative Agent for review and approval prior
to recording and shall be provided to both the Borough's Administrative
Agent and Municipal Housing Liaison after recording.
H.
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.
I.
The Borough of Wenonah 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 Article. The Borough of Wenonah, however, shall
retain the ultimate responsibility for ensuring effective compliance
with the requirements as set forth in N.J.A.C. 5:80-26.1, et seq.
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 Administrative Agent.
D.
When reviewing an applicant household's income to determine eligibility,
the 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, as adopted by COAH or successor agency. For
the purposes of this chapter, income includes, but is not limited
to, wages, salaries, tips, commissions, alimony, regularly scheduled
overtime, pensions, social security, unemployment compensation, 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 chapter, the sources
of income considered by the 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 must 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 as published annually by COAH or successor agency,
a certificate of eligibility shall be denied by the 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
38% 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 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 documentation
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.
Withholding of a certificate of eligibility.
(1)
A certificate of eligibility may be withheld by the Administrative
Agent as a result of an applicant's inability to demonstrate sufficient
present assets for down payment or security deposit purposes.
(2)
A certificate of eligibility may be withheld by the Administrative
Agent as a result of an applicant's inability to verify funds claimed
as assets, household composition or other facts represented.
(3)
A certificate of eligibility shall be denied by the Administrative
Agent as a result of any willful and material misstatement of fact
made by the applicant in seeking eligibility.
L.
The following information shall promptly be provided to the Borough's
Municipal Housing Liaison and Administrative Agent by the developer
or sponsor of any project containing any affordable units subject
to the requirements of this Article, upon the latter 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 Borough's Administrative Agent for the duration of the project;
(16)
The name and qualifications of the developer's administrative agent;
and
(17)
The State-approved Planned Real Estate Development public offering
statement and/or master deed where available or applicable.
M.
Waiting list procedures.
(1)
Households remaining on a waiting list shall update the 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.
(2)
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.
(3)
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.
(4)
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.
(5)
If the 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.
(6)
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 Administrative
Agent of the purposes of determining applicant eligibility shall be
strictly confidential and not considered a public record.
(7)
Prior to the time of availability of a very low, low and moderate income dwelling, the 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 days of mailing, notify the Administrative Agent, in writing, of its intent to occupy the dwelling and, if selected, its intent to comply with the requirements of Subsection M(8), below, within 15 days. 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 re-qualify if it wishes to be placed on the list at a new qualified priority.
(8)
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.
(9)
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 M(8) above is required.
A.
Both the buyer and seller of low and moderate income dwellings, including the initial seller, shall comply with N.J.A.C. 5:80-26.5, Control Periods of Ownership Units; N.J.A.C. 5:80-26.6, Price Restrictions for Ownership Units; N.J.A.C. 5:80-26.7, Buyer Income Eligibility for Ownership Units; N.J.A.C. 5:80-26.8, Limitations on Indebtedness Secured by Ownership Unit; Subordination; N.J.A.C. 5:80-26.9, Capital Improvements to Ownership Units; and N.J.A.C. 5:80-26.10, Maintenance of Restricted Ownership Units, as they may be amended or superseded, and more particularly described in Section 3A-4I, herein.
B.
Deed restrictions, restrictive covenants, form of release, payment
of recapture amounts, certificates of eligibility, mortgage notes
and other property documents for affordable housing shall be as required
in N.J.A.C. 5:80-26.1 et seq., as it may be amended or superseded.
C.
No person may buy a restricted dwelling who has not received a Certificate of Eligibility from the Administrative Agent, or the developer's administrative agent for the initial sale, pursuant to the procedures in Section 3A-2.
D.
Deed provisions on sale of rental dwellings. A deed conveying title
from an owner of a rental dwelling occupied by very low, low and moderate
income families shall include a clause which shall read, "The rental
dwelling(s) located in the premises conveyed herein are subject to
the terms, conditions, restrictions, limitations and provisions as
set forth in an ordinance of the Borough of Wenonah codified as it
may be amended and supplemented."
E.
Exempt transactions. The following transfer of ownership of a dwelling
shall be deemed "non-sales" for the purposes of this Article:
(1)
Between husband and wife.
(2)
Between former spouses ordered as a result of a judicial decree of
divorce (and not including sales to third parties).
(3)
To an heir as a result of inheritance.
(4)
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.
(5)
Statement of exemption. To permit the transfer of title under this
subsection or to permit the sale, resale or lease of an affordable
dwelling, the Administrative Agent shall issue a statement of exemption
in recordable form to the person receiving title to the dwelling.
A copy of the statement of exemption shall be given, at the time of
closing, to the seller of the dwelling. The statement of exemption
issued pursuant to this subsection shall exempt only the specific
sale, transfer, resale or rental transaction for which it was issued.
It shall not exempt the transaction for the low-income/moderate-income
resale/re-rental price restrictions set forth in this Article.
(6)
The restrictions of resale or rerental to a purchaser in accordance with this Article shall apply to all subsequent resales or rerentals of affordable dwellings unless a new statement of exemption is issued pursuant to this Subsection E specifically for a subsequent resale or rerental transaction. All other terms, provisions and restrictions of this Article shall remain in full force and effect. Such purchaser, however, shall take title and possession to the affordable dwelling, subject to the terms, restrictions, conditions and provisions of this Article, including those addressing use, occupancy, improvement and resale as though such purchaser were, in fact, a qualified very low, low and moderate income purchaser.
(7)
Where title is acquired pursuant to Subsection E(1) through E(4) of this section, the cost basis for subsequent resale shall be fixed at the same price as the last preceding nonexempt sale. That price may be adjusted in accordance with the procedures of this Article through application of the appropriate Consumer Price Index changes since the date of that nonexempt sale.
(8)
Nothing herein shall preclude the Borough of Wenonah from purchasing
the affordable dwelling and holding, renting or conveying it to a
qualified very low, low and moderate income purchaser if such option
is exercised prior to the owner accepting a bona fide offer to purchase
such dwelling.
(9)
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership dwelling and upon each successive sale during
the period of restricted ownership, the Administrative Agent shall
determine the restricted price for the dwelling and shall also determine
the non-restricted, fair market value of the dwelling based on either
an appraisal or the dwelling's equalized assessed value without the
restrictions in place.
(10)
At the time of the initial sale of the dwelling, the initial purchaser
shall execute and deliver to the Administrative Agent a recapture
note obligating the purchaser (as well as the purchaser's heirs, successors
and assigns) to repay, upon the first nonexempt sale after the dwelling's
release from the restrictions set forth in this Ordinance, an amount
equal to the difference between the dwelling's nonrestricted fair
market value and its restricted price, and the recapture note shall
be secured by a recapture lien evidenced by a duly recorded mortgage
on the dwelling.
(11)
The affordability controls set forth in this Article shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
(12)
A restricted ownership dwelling shall be required to obtain a continuing
certificate of occupancy or a certified statement from the Construction
Official stating that the dwelling meets all code standards upon the
first transfer of title that follows the expiration of the applicable
minimum control period provided under N.J.A.C. 5:80-26.5(a).
A.
Affordability average; bedroom distribution.
(1)
In each affordable development, at least 50% of the restricted dwellings
within each bedroom distribution shall be low-income dwellings, including
very low income dwellings and the remainder may be moderate-income
dwellings.
(2)
At least 13% of all affordable rental units shall be very low income
units (affordable to households earning 30% or less of median income).
The very low income units shall be counted as part of the required
number of low income units within the development.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one bedroom units is no
greater than 20% of the total low and moderate-income units;
(b)
At least 30% of all low and moderate-income units are two-bedroom
units;
(c)
At least 20% of all low and moderate-income units are three-bedroom
units; and
(d)
The remainder, if any, may be allocated at the discretion of
the developer.
(e)
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 dwelling for each efficiency
dwelling.
(4)
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC, utilizing the regional income limits established by COAH or
successor agency.
(5)
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.
(6)
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.
B.
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 as noted in Subsection A(5) and A(6) above and the utility allowance in Subsection B(5), below.
(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.
C.
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 Administrative Agent.
(2)
The Administrative Agent shall approve all resale prices, in writing
and in advance of the resale, to assure compliance with the foregoing
standards.
(3)
The method used to determine the condominium association fee amounts
and special assessments shall be indistinguishable between the low-
and moderate-income homeowners and the market homeowners.
D.
The owners of restricted ownership units may apply to the 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.
E.
Occupancy standards.
(1)
In determining the initial rents and initial sales prices for compliance
with the affordable average requirements for restricted units other
than assisted living facilities, the following standards shall be
used:
(a)
A studio shall be affordable to a one person household;
(b)
A one-bedroom dwelling shall be affordable to a 1 1/2 person
household;
(c)
A two-bedroom dwelling shall be affordable to a three person
household;
(d)
A three-bedroom dwelling shall be affordable to a 4 1/2
person household;
(e)
A four-bedroom dwelling shall be affordable to a six person
household.
(2)
In referring certified households to specific restricted units, to
the extent feasible and without causing an undue delay in occupying
the dwelling, the administrative agent shall strive to:
F.
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.
G.
Appearance. 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.
H.
Tenure. For inclusionary developments with a single housing type,
the affordable housing units shall have the same tenure as the market
housing units.
I.
Ownership unit affordability controls.
(1)
The affordability control period for a restricted ownership dwelling
shall commence on the date the initial certified household takes title
to the dwelling.
(2)
Each restricted ownership dwelling shall remain subject to the requirements
of the Uniform Housing Affordability Controls (N.J.A.C. 5:80-26.1
et seq.) until the Borough of Wenonah 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.
(3)
The affordability control period for a restricted ownership dwelling
shall commence on the date the initial certified household takes title
to the dwelling.
(4)
Each restricted ownership dwelling shall remain in compliance with
and subject to the requirements of the Uniform Housing Affordability
Controls, 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.
J.
Limitations on indebtedness secured by ownership dwelling; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership dwelling, the 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 Administrative Agent
in accordance with N.J.A.C. 5:80-26.6(b).
K.
Capital improvements to ownership units.
(1)
The owners of restricted ownership units may apply to the Administrative
Agent to increase the maximum sales price for the 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 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 Administrative Agent. Unless otherwise approved
by the Administrative Agent, the purchase of any property other than
central air conditioning shall not be made a condition of the 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.
L.
Notice of resale, recapture covenant and 95/5 purchase options.
(1)
The owner of the property is required to notify the Administrative
Agent and COAH or successor agency by certified mail of any intent
to sell the property 90 days prior to entering into an agreement for
the first non-exempt 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)
Upon the first such non-exempt sale of the property, 95% of the difference
between, (i), the actual sale price; and (ii), 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 NJ Department of Community Affairs, acting as receiving agent
for the local municipality.
(3)
Such non-exempt 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 (Non-Profit 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.
M.
Rental dwelling affordability controls.
(1)
Each restricted rental dwelling shall remain subject to the requirements
of the Uniform Housing Affordability Controls until the Borough of
Wenonah 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.
(2)
Each restricted rental dwelling shall remain in compliance with and
subject to the requirements of the Uniform Housing Affordability Controls,
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.
(3)
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 Gloucester. A copy of the filed document shall be
provided to the Administrative Agent within 30 days of the receipt
of a certificate of occupancy.
(4)
A restricted rental dwelling shall remain subject to the affordability
controls of this Ordinance, despite the occurrence of any of the following
events:
N.
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 Administrative
Agent.
(2)
No additional fees or charges shall be added to the approved rent
without the express written approval of the Administrative Agent.
(3)
Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable restricted dwelling and shall be payable to the Administrative Agent to be applied to the costs of administering the controls applicable to the dwelling as set forth in this Chapter 3A (Ordinance No. 2016-11).
O.
Phasing. A phasing schedule for inclusionary developments shall be
submitted at the time of application for development conforming to
the minimum ratios of market to affordable dwellings in the following
table:
Table 1. Required Phasing
| |
---|---|
Percentage of Market Dwellings Completed
|
Minimum Percentage of Very Low, Low and Moderate Income Dwellings
that Must Be Completed
|
25%
|
0%
|
25% + 1 dwelling
|
10%
|
50% + 1 dwelling
|
50%
|
75% + 1 dwelling
|
75%
|
90% + 1 dwelling
|
100%
|
Where the phasing schedule and bedroom distribution result in
a fraction, the number shall be rounded to the next highest whole
number.
|
P.
Accessibility requirements. The following barrier free accessibility
and adaptability requirements shall apply to all new construction:
(1)
The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
(2)
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:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual dwelling;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway in accordance with N.J.S.A. 52:27D-311a,
et seq. 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:
[1]
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.
[2]
To this end, the builder of restricted units shall deposit funds
within the Affordable Housing Trust Fund of the Borough of Wenonah
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under paragraph [2] above shall be used
by the Borough 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.
(g)
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.
(h)
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
shall be made into the municipality's Affordable Housing Trust Fund
by the Chief Financial Officer who shall ensure that the funds are
deposited into the Affordable Housing Trust Fund and appropriately
earmarked.
(3)
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.
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 or imprisonment for a period
not to exceed 90 days, or both. 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 Borough of Wenonah'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.
(3)
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 Borough 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 Borough in full as aforesaid,
the violating owner shall be personally responsible for the deficiency,
in addition to any and all costs incurred by the Borough 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 Borough 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 Borough 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 Borough 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 Borough's Affordable Housing Fund whether the remainder
is paid to the owner or forfeited to the Borough. Any excess funds
derived over and above the sum due the owner shall be paid over to
the Borough'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 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 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.
Wenonah's right to cure. The Borough 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 Article. All
sums so advanced and paid by the Borough 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 Borough Solicitor of the Borough, in writing, within
10 days of notification by the first mortgagee or creditor and no
later than 10 days after service of any summons and complaint, and
the Borough 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 Borough shall have the same priority
of lien as was held by the first mortgagee at the time the Borough
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 Borough within
10 days after the first purchase money mortgage is two months in arrears
and again within 10 calendar 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 Article
maintaining the dwelling as an affordable, income-restricted residence.
(2)
The obligation of the first mortgagee and servicer to notify the
Borough shall cease automatically and immediately upon the sale of
the first purchase money mortgage to the Federal National Mortgage
Association or in the secondary mortgage market, unless the rules
and regulations or guidelines of the Federal National Mortgage Association
are amended so as to not prohibit or exclude placing such obligation
upon the holder of the mortgage or its service representative, in
which case, an instrument duly evidencing the same shall be recorded
with the Register of Deeds, Gloucester County, New Jersey, before
any such obligation shall exist. Provided that the first mortgagee
is obligated to give the Borough the above-mentioned notices, the
first mortgagee shall also serve written notice of any proposed foreclosure
sale upon the Borough at least 30 days prior to the first scheduled
date of such sale. The first mortgagee shall serve notice upon the
Borough within 30 days of the sale of the first purchase money mortgage
to the Federal National Mortgage Association or in the secondary mortgage
market.
(3)
The Borough of Wenonah or any instrumentality designated by the Borough
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 Borough Clerk and Corporate Counsel.
The Borough of Wenonah 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 Borough.
(4)
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 Borough 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 Article 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. The Borough 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
Borough shall be deemed to be a personal obligation of the owner of
record at the time of the foreclosure sale, and the Borough 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 Borough for
any portion of this excess. The Borough 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.
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 codes.
B.
Notwithstanding anything to the contrary in this Article, any member
of a household occupying a dwelling under this Article and subject
to the regulations of the Borough of Wenonah is subject to eviction
for any reasons allowed under applicable New Jersey law. The provisions
of this Article 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 Council on Affordable Housing.
A.
The purpose of the Affirmative Marketing Ordinance is to establish
administrative procedures to ensure a wide dissemination of knowledge
of affordable housing units as they become available to the low and
moderate income population, and that the selection of tenants or homeowners,
as the case may be, meets the requirements of the Uniform Housing
Affordability Controls, "UHAC" (N.J.A.C. 5:80-26-1 et seq.).
B.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital,
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer or sponsor of affordable housing. The Affirmative Marketing
Plan is also intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
Any Affirmative Marketing Plan for use in the Borough of Wenonah shall
provide a regional preference for all households that live and work
in COAH Housing Region 5.
A.
Affirmative marketing requirements. Within the overall framework
of the Borough's affirmative marketing program, all affordable housing
units in the Borough of Wenonah shall be marketed in accordance with
the provisions herein unless otherwise provided for in N.J.A.C. 5:80-26.-1,
et seq., as they may be amended or superseded. 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
Borough's prior round Fair Share Plan and its current Fair Share Plan
and those that may be constructed in future developments not yet anticipated
by the Fair Share Plan. 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 should
the Borough be allocated a rehabilitation component.
B.
Plan preparation. The 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, for review and approval by the
Municipal Housing Liaison for conformance with this Ordinance. Alternatively,
the Administrative Agent of the Borough may oversee the work of a
developer's administrative agent provided that the latter agent has
been approved by the Borough of Wenonah in accordance with the procedures
herein. Regardless of the drafting agent, the Affirmative Marketing
Plan is intended to be used by all developers of affordable housing
restricted to low- and moderate-income households located within the
Borough of Wenonah. The Administrative Agent designated by the Borough
for specific affordable housing programs shall ensure that the affirmative
marketing of all affordable units is consistent with the Affirmative
Marketing Plan for the municipality.
A.
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 5:80-26-11. This plan will be adhered to by all private, non-profit
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 COAH Housing Region 5,
comprised of Burlington, Camden and Gloucester Counties.
(2)
Although the Borough has the ultimate responsibility for implementing
all aspects of Wenonah's affordable housing program, the Administrative
Agent designated by the Borough shall assure that the affirmative
marketing of all affordable units is consistent with the Affirmative
Marketing Plan for the municipality.
(3)
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
(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 Borough of Wenonah.
(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 municipal administration building and the municipal library in
the municipality in which the units are located; and the developer's
rental office. Applications shall be mailed to prospective applicants
upon request.
(8)
Applications shall be mailed by the Administrative Agent and Municipal
Housing Liaison to prospective applicants upon request. Also, applications
shall be available at the developer's sales/rental office and shall
be mailed to prospective applicants upon request.
(9)
The Administrative Agent shall develop, maintain and update a list
of community contact person(s) and/or organizations(s) in Burlington,
Camden and Gloucester Counties that will aid in the affirmative marketing
program with particular emphasis on contacts that will reach out to
groups that are least likely to apply for housing within the region.
Should any section, clause, sentence, phrase or provision of
this Ordinance be declared unconstitutional or invalid by a Court
of competent jurisdiction, such decision shall not affect the remaining
portions of this Ordinance.
All prior Ordinances or parts of Ordinances inconsistent with
this Ordinance are hereby repealed to the extent of such inconsistencies.
This Ordinance shall take effect immediately upon final passage
and publication in accordance with law.