[Adopted 4-20-2020 by Ord. No. 09-2020[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III,
Municipal Housing Liaison, adopted 7-20-2009 by Ord. No. 21-2009.
A.
The Township shall appoint a specific municipal employee to serve
as a Municipal Housing Liaison responsible for overseeing the Township's
Affordable Housing Program, including overseeing the administration
of affordability controls on the affordable units and the affirmative
marketing of available affordable units in accordance with the Township's
Affirmative Marketing Plan; fulfilling monitoring and reporting requirements;
and supervising Administrative Agent(s). The Township of Readington
shall adopt this article which creates the position of Municipal Housing
Liaison and the Township of Readington shall adopt a resolution which
appoints the person to fulfill the position of Municipal Housing Liaison.
The Municipal Housing Liaison shall be appointed by the governing
body and may be a full or part time municipal employee. The Municipal
Housing Liaison shall be approved by the Court and shall be duly qualified
through a training program sponsored by Affordable Housing Professionals
of New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The Municipal Housing Liaison shall be responsible for oversight
and administration of the Affordable Housing Program for the Township
of Readington, including the following responsibilities, which may
not be contracted out to the Administrative Agent:
(1)
Serving as Readington Township's primary point of contact for all
inquiries from the State, affordable housing providers, Administrative
Agents and interested households;
(2)
Monitoring the status of all restricted units in Readington Township's
Fair Share Plan;
(3)
Compiling, verifying, submitting and posting all monitoring reports
as required by the Court and by this article;
(4)
Coordinating meetings with affordable housing providers and Administrative
Agents, as needed; and
(5)
Attending continuing education opportunities on affordability controls,
compliance monitoring and affirmative marketing at least annually
and more often as needed.
C.
Subject to the approval of the Court, the Township shall designate
one or more Administrative Agent(s) to administer and to affirmatively
market the affordable units constructed in the Township in accordance
with UHAC and this article. An operating manual for each Affordable
Housing Program shall be provided by the Administrative Agent(s) to
be adopted by resolution of the governing body and subject to approval
of the Court. The operating manual(s) shall be available for public
inspection in the office of the Township Clerk, in the office of the
Municipal Housing Liaison, and in the office(s) of the Administrative
Agent(s). The Municipal Housing Liaison shall supervise the work of
the Administrative Agent(s).
D.
Compensation. Compensation shall be fixed by the governing body at
the time of the appointment of the Municipal Housing Liaison.
The Township shall designate one or more Administrative Agents
to implement the terms of this article, subject to Court approval.
The Township may act as Administrative Agent for some or all restricted
units within the Township; in that case, the Township shall designate
the Municipal Housing Liaison to serve on its behalf. Otherwise, the
Township may designate an independent entity to serve as Administrative
Agent, which entity shall serve under contract and shall report to
the municipality. All Administrative Agents shall be properly qualified
to serve in this capacity. The fees of the Administrative Agent shall
be paid by the owners of the affordable units for which the services
of the Administrative Agent are required. The Administrative Agent
shall perform the duties and responsibilities of an Administrative
Agent as set forth in UHAC, including those set forth in Sections
5:80-26.14, 16 and 18 thereof, which includes:
A.
Affirmative marketing:
(1)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township and the provisions of N.J.A.C. 5:80-26.15; and
(2)
Providing counseling or contracting to provide counseling services
to low- and moderate-income applicants on subjects such as budgeting,
credit issues, mortgage qualification, rental lease requirements,
and landlord/tenant law.
B.
Household certification:
(1)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(2)
Conducting interviews and obtaining sufficient documentation of gross
income and assets upon which to base a determination of income eligibility
for a low- or moderate-income unit;
(3)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(4)
Requiring that all certified applicants for restricted units execute
a certificate substantially in the form, as applicable, of either
the ownership or rental certificates set forth in Appendices J and
K of N.J.A.C. 5:80-26.1 et seq.;
(5)
Creating and maintaining a referral list of eligible applicant households
living in the housing region and eligible applicant households with
members working in the housing region where the units are located;
(6)
Employing a random selection process as provided in the Affirmative
Marketing Plan of the Township when referring households for certification
to affordable units; and
(7)
Notifying the following entities of the availability of affordable
housing units in the Township: Fair Share Housing Center, the New
Jersey State Conference of the NAACP, including the New Brunswick,
Plainfield Area, Perth Amboy and Metuchen/Edison branches, the Latino
Action Network, NORWSCAP, the Supportive Housing Association, and
the Central Jersey Housing Resource Center.
C.
Affordability controls:
(1)
Furnishing to attorneys or closing agents forms of deed restrictions
and mortgages for recording at the time of conveyance of title of
each restricted unit;
(2)
Creating and maintaining a file on each restricted unit for its control
period, including the recorded deed with restrictions, recorded mortgage
and note, as appropriate;
(3)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Hunterdon
County Register of Deeds or Hunterdon County Clerk's office after
the termination of the affordability controls for each restricted
unit;
(4)
Communicating with lenders regarding foreclosures; and
(5)
Ensuring the issuance of continuing certificates of occupancy or
certifications pursuant to N.J.A.C. 5:80-26.10.
D.
Resales and rerentals:
(1)
Instituting and maintaining an effective means of communicating information
between owners and the Administrative Agent regarding the availability
of restricted units for resale or rerental; and
(2)
Instituting and maintaining an effective means of communicating information
to low- (or very-low-) and moderate-income households regarding the
availability of restricted units for resale or rerental.
E.
Processing requests from unit owners:
(1)
Reviewing and approving requests for determination from owners of
restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this article;
(2)
Reviewing and approving requests to increase sales prices from owners
of restricted units who wish to make capital improvements to the units
that would affect the selling price, such authorizations to be limited
to those improvements resulting in additional bedrooms or bathrooms
and the depreciated cost of central air conditioning systems;
(3)
Notifying the municipality of an owner's intent to sell a restricted
unit; and
(4)
Making determinations on requests by owners of restricted units for
hardship waivers.
F.
Enforcement:
(1)
Securing annually from the municipality a list of all affordable
housing units for which tax bills are mailed to absentee owners, and
notifying all such owners that they must either move back to their
unit or sell it;
(2)
Securing from all developers and sponsors of restricted units, at
the earliest point of contact in the processing of the project or
development, written acknowledgement of the requirement that no restricted
unit can be offered, or in any other way committed, to any person,
other than a household duly certified to the unit by the Administrative
Agent;
(3)
Posting annually, in all rental properties (including two-family
homes), a notice as to the maximum permitted rent together with the
telephone number of the Administrative Agent where complaints of excess
rent or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling units,
reminding them of the notices and requirements outlined in N.J.A.C.
5:80-26.18(d)4;
(5)
Establishing a program for diverting unlawful rent payments to the
municipality's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each Affordable
Housing Program administered by the Administrative Agent, to be approved
by the governing body and the Court, setting forth procedures for
administering the affordability controls.
G.
Additional responsibilities:
(1)
The Administrative Agent shall have the authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
(2)
The Administrative Agent shall prepare monitoring reports for submission
to the Municipal Housing Liaison in time to meet the Court-approved
monitoring and reporting requirements in accordance with the deadlines
set forth in this article.
(3)
The Administrative Agent shall attend continuing education sessions
on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.
The Township shall adopt by resolution an Affirmative Marketing Plan,
subject to approval of the Court, which is compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
B.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
It is a continuing program that directs marketing activities toward
Housing Region 3 and is required to be followed throughout the period
of restriction.
C.
The Affirmative Marketing Plan shall provide a regional preference
for all households that live and/or work in Housing Region 3, comprised
of Hunterdon, Middlesex, and Somerset Counties.
D.
The municipality has the ultimate responsibility for adopting the
Affirmative Marketing Plan and for the proper administration of the
Affirmative Marketing Program, including initial sales and rentals
and resales and rerentals. The Administrative Agent designated by
the Township shall implement the Affirmative Marketing Plan to assure
the affirmative marketing of all affordable units.
E.
In implementing the Affirmative Marketing Plan, the Administrative
Agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
F.
The Affirmative Marketing Plan shall describe the media to be used
in advertising and publicizing the availability of housing. In implementing
the Affirmative Marketing Plan, the Administrative Agent shall consider
the use of language translations where appropriate.
G.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
H.
Applications for affordable housing shall be available in several
locations, including, at a minimum, the County Administration Building
and/or the County Library for each county within the housing region;
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.
I.
In addition to other affirmative marketing strategies, the Administrative
Agent shall provide specific notice of the availability of affordable
housing units in Township, and copies of the application forms, to
the following entities: Fair Share Housing Center, the New Jersey
State Conference of the NAACP, including the New Brunswick, Plainfield
Area, Perth Amboy and Metuchen/Edison branches, the Latino Action
Network, NORWSCAP, the Supportive Housing Association, and the Central
Jersey Housing Resource Center.
J.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
A.
Upon the occurrence of a breach of any of the regulations governing
an affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, a requirement for household
recertification, acceleration of all sums due under a mortgage, recuperation
of any funds from a sale in violation of the regulations, injunctive
relief to prevent further violation of the regulations, entry on the
premises, and specific performance.
B.
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action(s) against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(1)
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11
alleging a violation or violations of the regulations governing the
affordable housing unit. If the owner, developer or tenant is adjudged
by the Court to have violated any provision of the regulations governing
affordable housing units the owner, developer or tenant shall be subject
to one or more of the following penalties, at the discretion of the
Court:
(a)
A fine of not more than $500 per day or imprisonment for a period
not to exceed 90 days, or both, provided that each and every day that
the violation continues or exists shall be considered a separate and
specific violation of these provisions and not a continuation of the
initial offense;
(b)
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment into the Readington Township Affordable Housing Trust
Fund of the gross amount of rent illegally collected;
(c)
In the case of an owner who has rented a low- or moderate-income
unit in violation of the regulations governing affordable housing
units, payment of an innocent tenant's reasonable relocation costs,
as determined by the Court.
(2)
The municipality may file a court action in the Superior Court seeking
a judgment that would result in the termination of the owner's equity
or other interest in the unit, in the nature of a mortgage foreclosure.
Any such judgment shall be enforceable as if the same were a judgment
of default of the first purchase money mortgage and shall constitute
a lien against the low- or moderate-income unit.
(a)
The judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have his right
to possession terminated as well as his title conveyed pursuant to
the Sheriff's sale.
(b)
The proceeds of the Sheriff's sale shall first be applied to
satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event that
the proceeds from the Sheriff's sale are insufficient to reimburse
the municipality in full as aforesaid, the violating owner shall be
personally responsible for the full extent of such deficiency, in
addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(c)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(d)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(e)
Failure of the low- and moderate-income unit to be either sold
at the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(f)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
