[HISTORY: Adopted by the Township Committee
of the Township of Montville 8-13-2019 by Ord. No. 2019-28.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 73,
which consisted of Art. I, Rules and Regulations, adopted by Ord. No. 1308, as amended;
and Art. II, Municipal Housing Liaison, adopted 2-24-2009 by Ord. No. 2009-07.
A.
This chapter is intended to assure that low- and moderate-income
units ("affordable units") are created with controls on affordability
and that low- and moderate-income households shall occupy these units.
This chapter shall apply except where inconsistent with applicable
law.
B.
The Township of Montville Planning Board has adopted a Housing Element
and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1, et seq. (hereinafter "Fair Share Plan"). The Fair Share
Plan was subsequently endorsed by the governing body. The Fair Share
Plan describes how the Township of Montville shall address its fair
share of low- and moderate-income housing as documented in the Fair
Share Plan itself, the settlement agreement entered into between the
Township and Fair Share Housing Center ("FSHC") on December 21, 2018
(hereinafter "FSHC settlement agreement"), and the Court Order approving
same, which was entered by the Court on April 4, 2019 after a properly
noticed fairness hearing.
C.
The Township of Montville shall track the status of the implementation
of the Fair Share Plan.
The Township of Montville shall comply with the following monitoring
and reporting requirements regarding the status of the implementation
of its Court-approved Housing Element and Fair Share Plan:
A.
Beginning one year after the entry of the Township's Round 3
Judgment of Compliance and Repose, and on every anniversary of that
date through 2025, the Township agrees to provide annual reporting
of its Affordable Housing Trust Fund activity to the New Jersey Department
of Community Affairs, Council on Affordable Housing, or Local Government
Services, or other entity designated by the State of New Jersey, with
a copy provided to Fair Share Housing Center (FSHC) and posted on
the municipal website, using forms developed for this purpose by the
New Jersey Department of Community Affairs (NJDCA), Council on Affordable
Housing (COAH), or Local Government Services (NJLGS). The reporting
shall include an accounting of all Affordable Housing Trust Fund activity,
including the source and amount of funds collected and the amount
and purpose for which any funds have been expended.
B.
Beginning one year after the entry of the Township's Round 3
Judgment of Compliance and Repose, and on every anniversary of that
date through 2025, the Township agrees to provide annual reporting
of the status of all affordable housing activity within the municipality
through posting on the municipal website with a copy of such posting
provided to Fair Share Housing Center, using forms previously developed
for this purpose by COAH, or any other forms endorsed by the Court
Appointed Special Master and FSHC.
C.
The Fair Housing Act includes two provisions regarding action to
be taken by the Township during its ten-year repose period. The Township
will comply with those provisions as follows:
(1)
For the midpoint realistic opportunity review due on July 2, 2020,
as required pursuant to N.J.S.A. 52:27D-313, the Township will post
on its municipal website, with a copy provided to Fair Share Housing
Center, a status report as to its implementation of its Plan and an
analysis of whether any unbuilt sites or unfulfilled mechanisms continue
to present a realistic opportunity and whether the mechanisms to meet
unmet need should be revised or supplemented. Such posting shall invite
any interested party to submit comments to the Township, with a copy
to Fair Share Housing Center, regarding whether any sites no longer
present a realistic opportunity and should be replaced and whether
the mechanisms to meet unmet need should be revised or supplemented.
Any interested party may by motion request a hearing before the Court
regarding these issues.
(2)
For the review of very-low-income housing requirements required by
N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of
the entry of the Township's Judgement of Compliance and Repose,
and every third year thereafter, the Township will post on its municipal
website, with a copy provided to Fair Share Housing Center, a status
report as to its satisfaction of its very-low-income requirements,
including the family very-low-income requirements referenced herein.
Such posting shall invite any interested party to submit comments
to the Township and Fair Share Housing Center on the issue of whether
the Township has complied with its very-low-income housing obligation
under the terms of this settlement.
(3)
In addition to the foregoing postings, the Township may also elect
to file copies of its reports with COAH or its successor agency at
the state level.
The following terms when used in this chapter shall have the
meanings given in this section:
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.) as has been subsequently amended.
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this chapter, applicable COAH regulations
and the Uniform Housing Affordability Controls (UHAC) (N.J.A.C. 5:80-26.1
et seq.)
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined by COAH in its applicable regulations or an equivalent
controlling New Jersey state agency; in the case of an ownership unit,
that the sales price for the unit conforms to the standards set forth
in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in
the case of a rental unit, that the rent for the unit conforms to
the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development all or a portion of which consists
of restricted units.
The written agreement between the owner of an affordable
housing unit and the Township that imposes covenants, conditions,
and restrictions on residential units to ensure that those housing
units remain affordable to households of low- and moderate-income
for a specified period of time.
A development included in the Township's Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a 100% affordable development.
Any mechanism in the Township's Fair Share Plan prepared
or implemented to address the Township's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to applicable COAH regulations, the FSHC settlement agreement,
or an order of the Court.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population,
whether that unit be located in a development wherein all the residents
of the development are 62 years or older, or wherein at least 80%
of the units are occupied by one person that is 55 years or older,
or wherein 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 facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The New Jersey Council on Affordable Housing.
The State of New Jersey Department of Community Affairs.
The document which is recorded with the deed to an affordable
housing unit in the County Recording Office in order to effectuate
the affordable housing agreement for the unit.
A housing unit 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, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development, including the holder
of an option to contract or 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.
The termination through legal processes of all rights of
the mortgagor's heirs, successors, assigns or grantees in a unit
covered by a recorded mortgage.
A development containing both affordable units and market
rate units. Inclusionary developments must have a minimum 20% set-aside
of affordable units if the development has five or more units and
is a for-sale project, or a minimum 15% set-aside if the development
is a rental project. This term includes, but is not necessarily limited
to, new construction, the conversion of a nonresidential structure
to residential and the creation of new affordable units through the
reconstruction of a vacant residential structure.
A household with a total gross annual household income equal
to 50% or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by the Department.
The Montville Housing Committee.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
A restricted unit that is affordable to a moderate-income
household.
The entity designated by the Township of Montville for the
purpose of oversight of the affordable housing program within the
Township, mediating appeals to decisions made by the Municipal Housing
Liaison and/or Administrative Agent, assisting developers, and performing
such other actions as may be designated by the Township Committee.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for Montville.
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class
A beneficiary and the transfer of ownership by court order.
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by the Department's adopted regional income limits
published annually by the Department.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
The obligation of a seller exercising a repayment option
to pay 95% of the price differential to Montville Township at closing
for use in the municipal housing plan of Montville Township.
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.
The Montville Housing Committee.
The Department of Community Affairs of the State of New Jersey,
that was established under the New Jersey Fair Housing Act (N.J.S.A.
52:27D-301 et seq.).
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
The actual, or estimated, costs to provide each affordable
housing apartment with water, sewers, electric, natural gas, and oil.
A household with a total gross annual household income equal
to 30% or less of the median household income.
A restricted unit that is affordable to a very-low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
A.
The provisions of this chapter shall apply to all affordable housing
developments and affordable housing units that currently exist and
that are proposed to be created within the Township of Montville pursuant
to the Township's most recently adopted Housing Element and Fair
Share Plan.
B.
Moreover, this chapter shall apply to all developments that contain
low- and moderate-income housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
In inclusionary developments the following schedule shall be
followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25%
|
0%
|
|
25% + 1
|
10%
|
|
50%
|
50%
|
|
75%
|
75%
|
|
90%
|
100%
|
A.
Low/moderate split and bedroom distribution of affordable housing
units:
(1)
The fair share obligation shall be divided equally between low- and
moderate-income units, except that where there is an odd number of
affordable housing units, the extra unit shall be a low-income unit.
At least 13% of all restricted rental units shall be very-low-income
units (affordable to a household earning 30% or less of regional median
income by household size). The very-low-income units shall be counted
as part of the required number of low-income units within the development.
At least 50% of the very-low-income units must be available to families.
(2)
In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be very-low- or low-income
units.
(3)
Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(4)
Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
This standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
B.
Accessibility requirements:
(1)
The first floor of all restricted rental townhouse dwelling units
and all restricted units in all other multistory buildings shall be
subject to the technical design standards of the Barrier Free SubCode,
N.J.A.C. 5:23-7 and the following:
(2)
All restricted rental townhouse dwelling units and all restricted
units in other multistory buildings in which a restricted dwelling
unit is attached to at least one other dwelling unit shall have the
following features:
(a)
An adaptable toilet and bathing facility on the first floor;
and
(b)
An adaptable kitchen on the first floor; and
(c)
An interior accessible route of travel on the first floor; and
(d)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(e)
If all of the foregoing requirements in Subsection B(2)(a) through (d) cannot be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit, but if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a, et seq.) and the Barrier Free SubCode, N.J.A.C.
5:23-7, or evidence that Montville has collected funds from the developer
sufficient to make 10% of the adaptable entrances in the development
accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Township of Montville's Affordable Housing Trust Fund
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection B(2)(f)[2] above shall be used by the Township of Montville for the sole purpose of making the adaptable entrance of an affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate to the Construction Official of the Township
of Montville for the conversion of adaptable to accessible entrances.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meet
the requirements of the Barrier Free SubCode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Township's Affordable Housing Trust Fund in care
of the Township Treasurer who shall ensure that the funds are deposited
into the Affordable Housing Trust Fund and appropriately earmarked.
(g)
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is "site impracticable" to
meet the requirements. Determinations of site impracticability shall
be in compliance with the Barrier Free SubCode, N.J.A.C. 5:23-7.
D.
Maximum rents and sales prices:
(1)
In establishing rents and sales prices of affordable housing units,
the Administrative Agent shall follow the procedures set forth in
UHAC, utilizing the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD.
(2)
The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted rental units
shall be affordable to households earning no more than 52% of median
income.
(3)
The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units, provided that at least 13% of all low-
and moderate-income rental units shall be affordable to very-low-income
households, which very-low-income units shall be part of the low-income
requirement.
(4)
The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, at least three different
sales prices must be available for each bedroom type associated with
moderate-income ownership units, and at least two different sales
prices must be made available for each bedroom type associated with
low-income ownership units.
(5)
In determining the initial sales prices and rent levels for compliance
with the affordability average requirements for restricted units other
than assisted living facilities and age-restricted developments, the
following standards shall be used:
(a)
A studio shall be affordable to a one-person household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units in
assisted living facilities and age-restricted developments, the following
standards shall be used:
(7)
The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8)
The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
size household, including an allowance for tenant paid utilities,
as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented;
provided, however, that the rent shall be subject to the affordability
average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
(9)
Income limits for all units that are part of the Township's
Housing Element and Fair Share Plan, and for which income limits are
not already established through a federal program exempted from the
Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1,
shall be updated by the Township annually within 30 days of the publication
of determinations of median income by HUD as follows:
(a)
The income limit for a moderate-income unit for a household
of four shall be 80% of the HUD determination of the median income
for COAH Region 2 for a family of four. The income limit for a low-income
unit for a household of four shall be 50% of the HUD determination
of the median income for COAH Region 2 for a family of four. The income
limit for a very-low-income unit for a household of four shall be
30% of the HUD determination of the median income for COAH Region
2 for a family of four. These income limits shall be adjusted by household
size based on multipliers used by HUD to adjust median income by household
size. In no event shall the income limits be less than the previous
year.
(10)
In establishing sale prices and rents of affordable housing units,
the administrative agent shall follow the procedures set forth in
UHAC, utilizing the regional income limits established by the Council:
(a)
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 determined pursuant to Subsection D(9). In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price.
(b)
The rents of very-low-, low- and moderate-income units may be
increased annually based on the permitted percentage increase in the
Housing Consumer Price Index for the Northern New Jersey Area, upon
its publication for the prior calendar year. 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.
A.
Affordable units shall utilize the same type of heating source as
market units within an inclusionary development.
B.
Tenant-paid utilities included in the utility allowance shall be
set forth in the lease and shall be consistent with the utility allowance
approved by the NJDCA for its Section 8 program.
A.
In referring certified households to specific restricted units, the
Administrative Agent shall, to the extent feasible and without causing
an undue delay in the occupancy of a unit, strive to:
B.
The Administrative Agent and/or the Municipal Housing Liaison retains
the right to refuse a larger unit to a family of inappropriate size
when a waiting list exists which contains an appropriately sized family.
For example, a certified family of one can be denied an offering of
a three-bedroom unit when a certified family of four or five is available
on a waiting list.
A.
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each
restricted ownership unit shall remain subject to the requirements
of this chapter for a period of at least 30 years, until affordability
controls are extended for an additional 30 years via an amended affordable
housing agreement, or until Montville takes action to release the
unit from such requirements in compliance with N.J.A.C. 5:80-26.1,
as may be amended and supplemented; prior to such action, a restricted
ownership unit must remain subject to the requirements of N.J.A.C.
5:80-26.1, as may be amended and supplemented. Upon expiration and
non-extension of affordability controls, a recapture amount shall
be due pursuant to N.J.A.C. 5:80-26.5(c).
B.
The affordability control period for a restricted ownership unit shall be set forth in an affordable housing agreement (AHA), as set forth in § 73-17, and commence on the date the initial certified household takes title to the unit.
C.
Prior to the issuance of the initial certificate of occupancy for
a restricted ownership unit and upon each successive sale during the
period of restricted ownership, the Township's Administrative
Agent, or an Administrative Agent appointed by a particular developer,
shall determine the restricted price for the unit and shall also determine
the nonrestricted, fair market value of the unit based on either an
appraisal or the unit's equalized assessed value without the
restrictions in place.
D.
At the time of the initial sale of the unit, the initial purchaser
shall execute and deliver to the Township's Administrative Agent,
or an Administrative Agent appointed by a particular developer, a
recapture note obligating the purchaser (as well as the purchaser's
heirs, successors and assigns) to repay, upon the first nonexempt
sale after the unit's release from the restrictions set forth
in this chapter, an amount equal to the difference between the unit's
nonrestricted fair market value and its restricted price, and the
recapture note shall be secured by a recapture lien evidenced by a
duly recorded mortgage on the unit.
E.
The affordability controls set forth in this chapter shall remain
in effect despite the entry and enforcement of any judgment of foreclosure
with respect to restricted ownership units.
F.
A restricted ownership unit shall be required to obtain a fire prevention
certification upon the first transfer of title following the removal
of the restrictions provided under N.J.A.C. 5:80-26.5(a), as may be
amended and supplemented.
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
including:
A.
The initial purchase price for a restricted ownership unit shall
be approved by the Township's Administrative Agent, or an Administrative
Agent appointed by a particular developer.
B.
The Township's Administrative Agent, or an Administrative Agent
appointed by a particular developer, shall approve all resale prices,
in writing and in advance of the resale, to assure compliance with
the foregoing standards.
C.
The master deeds of inclusionary developments shall provide no distinction
between the condominium or homeowner association fees and special
assessments paid by low- and moderate-income purchasers and those
paid by market purchasers, unless the master deed for the inclusionary
project was executed prior to the enactment of UHAC.
D.
The owners of restricted ownership units may apply to the Township's
Administrative Agent, or an Administrative Agent appointed by a particular
developer, to increase the maximum sales price for the unit on the
basis of anticipated capital improvements. Eligible capital improvements
shall be those that render the unit suitable for a larger household
or the addition of a bathroom.
A.
Buyer income eligibility for restricted ownership units shall be
in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented,
such that low-income ownership units shall be reserved for households
with a gross household income less than or equal to 50% of median
income and moderate-income ownership units shall be reserved for households
with a gross household income less than 80% of median income.
B.
The Administrative Agent shall certify a household as eligible for
a restricted ownership unit when the household is a low-income household
or a moderate-income household, as applicable to the unit, and the
estimated monthly housing cost for the particular unit (including
principal, interest, taxes, homeowner and private mortgage insurance
and condominium or homeowner association fees, as applicable) does
not exceed 33% of the household's eligible monthly income.
A.
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the owner shall apply to the Township's Administrative
Agent, or an Administrative Agent appointed by a particular developer,
for a determination in writing that the proposed indebtedness complies
with the provisions of this section, and the Township's Administrative
Agent, or an Administrative Agent appointed by a particular developer,
shall issue such determination prior to the owner incurring such indebtedness.
B.
With the exception of first purchase money mortgages, neither an
owner nor a lender shall at any time cause or permit the total indebtedness
secured by a restricted ownership unit to exceed 95% of the maximum
allowable resale price of the unit, as such price is determined by
the Township's Administrative Agent, or an Administrative Agent
appointed by a particular developer, in accordance with N.J.A.C. 5:80-26.6(b).
A.
The owners of restricted ownership units may apply to the Township's
Administrative Agent, or an Administrative Agent appointed by a particular
developer, to increase the maximum sales price for the unit on the
basis of capital improvements made since the purchase of the unit.
Eligible capital improvements shall be those that render the unit
suitable for a larger household or that add an additional bathroom.
In no event shall the maximum sales price of an improved housing unit
exceed the limits of affordability for the larger household.
B.
Upon the resale of a restricted ownership unit, all items of property
that are permanently affixed to the unit or were included when the
unit was initially restricted (for example, refrigerator, range, washer,
dryer, dishwasher, wall-to-wall carpeting) shall be included in the
maximum allowable resale price. Other items may be sold to the purchaser
at a reasonable price that has been approved by the Township's
Administrative Agent, or an Administrative Agent appointed by a particular
developer, at the time of the signing of the agreement to purchase.
The purchase of central air conditioning installed subsequent to the
initial sale of the unit and not included in the base price may be
made a condition of the unit resale provided the price, which shall
be subject to ten-year, straight-line depreciation, has been approved
by the Township's Administrative Agent, or an Administrative
Agent appointed by a particular developer. Unless otherwise approved
by the Township's Administrative Agent, or an Administrative
Agent appointed by a particular developer, the purchase of any property
other than central air conditioning shall not be made a condition
of the unit resale. The owner and the purchaser must personally certify
at the time of closing that no unapproved transfer of funds for the
purpose of selling and receiving property has taken place at the time
of or as a condition of resale.
A.
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and
each restricted rental unit shall remain subject to the requirements
of this chapter for a period of at least 30 years, until affordability
controls are extended for an additional 30 years via an amended affordable
housing agreement, or until Montville takes action to release the
unit from such requirements in compliance with N.J.A.C. 5:80-26.1,
as may be amended and supplemented. Prior to such action, a restricted
rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1,
as may be amended and supplemented.
B.
The affordability control period for a restricted rental unit shall be set forth in an affordable housing agreement (AHA), as set forth in § 73-17. The AHA shall have priority over all mortgages on the property.
C.
A restricted rental unit shall remain subject to the affordability
controls of this chapter despite the occurrence of any of the following
events:
A.
A written lease shall be required for all restricted rental units
and tenants shall be responsible for security deposits and the full
amount of the rent as stated on the lease. A copy of the current lease
for each restricted rental unit shall be provided to the Township's
Administrative Agent, or an Administrative Agent appointed by a particular
developer.
B.
No additional fees or charges shall be added to the approved rent
(except, in the case of units in an assisted living residence, to
cover the customary charges for food and services) without the express
written approval of the Township's Administrative Agent, or an
Administrative Agent appointed by a particular developer.
C.
Application fees (including the charge for any credit check) shall
not exceed 5% of the monthly rent of the applicable restricted unit
and shall be payable to the developer and/or landlord or to the Township's
Administrative Agent, or an Administrative Agent appointed by a particular
developer. If the fees are paid to the Township's Administrative
Agent or an Administrative Agent appointed by a particular developer
they are to be applied to the costs of administering the controls
applicable to the unit as set forth in this chapter.
D.
No rent control ordinance or other pricing restriction shall be applicable
to either the market units or the affordable units in any development
in which at least 15% of the total number of dwelling units are restricted
rental units in compliance with this chapter.
E.
Changes in rent level.
(1)
Rent levels may be changed annually at the renewal of each lease.
(2)
Rent levels may not be changed for individual apartments unless rents
have been changed for all apartments of the same classification, or
unless a change in occupancy or income has occurred.
(3)
The price of a rental housing unit may increase annually based on
the percentage increase in median income for each housing region as
determined from the most recently published regional weighted average
of the uncapped Section 8 income limits published by HUD.
A.
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13,
as may be amended and supplemented, and shall be determined as follows:
(1)
Very-low-income rental units shall be reserved for households with
a gross household income less than or equal to 30% of the regional
median household income by household size.
(2)
Low-income rental units shall be reserved for households with a gross
household income less than or equal to 50% of the regional median
household income by household size.
(3)
Moderate-income rental units shall be reserved for households with
a gross household income less than 80% of the regional median household
income by household size.
B.
The Township's Administrative Agent, or an Administrative Agent
appointed by a particular developer, shall certify a household as
eligible for a restricted rental unit when the household is a very-low-income
household, low-income household or a moderate-income household, as
applicable to the unit, and the rent proposed for the unit does not
exceed 35% (40% for age-restricted units) of the household's
eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16,
as may be amended and supplemented; provided, however, that this limit
may be exceeded if one or more of the following circumstances exists:
(1)
The household currently pays more than 35% (40% for households eligible
for age-restricted units) of its gross household income for rent,
and the proposed rent will reduce its housing costs;
(2)
The household has consistently paid more than 35% (40% for households
eligible for age-restricted units) of eligible monthly income for
rent in the past and has proven its ability to pay;
(3)
The household is currently in substandard or overcrowded living conditions;
(4)
The household documents the existence of assets with which the household
proposes to supplement the rent payments; or
(5)
The household documents reliable anticipated third-party assistance
from an outside source such as a family member in a form acceptable
to the Administrative Agent and the owner of the unit.
A.
Restrictions on affordability and occupancy.
(1)
Each affordable housing unit shall be restricted by an affordable
housing agreement (AHA) signed by the owner or tenant and the Township
which shall provide for covenants, conditions and restrictions so
that such affordable housing units remain affordable to low- and moderate-income
eligible households for at least 30 years from the date restrictions
initially encumbered the unit.
(2)
The AHA must be submitted to the Administrative Agent and/or Municipal
Housing Liaison for execution by the Township prior to closing.
(3)
The AHA provides for requirements to owners and occupants and establishes
procedures for ensuring that the restricted residential units remain
affordable to, and occupied by, families that meet income eligibility
requirements.
(4)
The AHA also provides that all affordable housing units remain the
primary residence of the occupant family of record unless otherwise
approved by the MHC.
B.
Restrictions on sale or lease.
(1)
The agreement, when executed, constitutes an encumbrance to the conveyance
of title for the property identified therein. The original AHA shall
be kept with the Township and a Declaration of Covenants and Restrictions
shall be recorded with the property deed in the County Recording Office
at the time restrictions are initially imposed on the unit.
(2)
The agreement shall contain an expiration date at which time the
unit shall no longer be subject to the covenants, conditions and restrictions.
D.
Certificate of occupancy. No certificate of occupancy shall be issued
for an affordable housing unit unless the Administrative Agent and/or
Municipal Housing Liaison has certified that the sale or rental complies
with the terms of this agreement and these regulations and has executed
the AHA for that unit.
A.
A committee, to be known as the "Montville Housing Committee," is
hereby established, consisting of seven citizens of the Township to
be appointed by the Township Committee, to serve without compensation.
The terms of the members shall be three years, provided that the initial
terms shall be staggered as follows: three members for one year, three
members for two years and one member for three years.
B.
Officers; experts and staff.
(1)
The Committee shall elect a Chairperson and a Vice Chairperson from
among its members, to serve for terms of one year. The Board may also
appoint a Secretary, who may or may not be a member of the Board,
and such other officers as it may determine.
(2)
Subject to the approval of the Township Administrator, the Committee
may employ or contract for and fix the compensation of such experts
and staff as it deems necessary. Obligations for the foregoing shall
not exceed the amounts agreed upon and appropriated for the Committee's
use by the Township Committee.
C.
The Committee shall have the following duties and powers:
(1)
Mediate appeals to decisions made by the Administrative Agent and/or
Municipal Housing Liaison. The MHC may recommend to the Township Committee
that occupancy be disapproved for any or all affordable sale or rental
units in instances where eligibility is in question.
(2)
Provide assistance to developers by holding meetings with developers
to insure that there is compliance with the ordinances, and provide
the developers, owners or tenant associations any data which the MHC
may deem to be helpful in accomplishing this purpose.
(3)
Review annual set-aside occupancy reports prepared and filed by the
developer, association or any party in interest, as may be required
by its practices and procedures or as contained in its rules and regulations.
(4)
Promulgate rules and regulations, subject to approval by the Township
Committee and implementation in ordinance form.
(5)
File periodic reports with the Township Committee concerning the
discharge of its responsibilities and immediately report noncompliance
with affordability control standards and procedures for such action
as the Township Committee may deem appropriate.
(6)
Perform such other actions as may be designated by the Township Committee.
D.
Rules and regulations. The Committee shall be authorized to adopt
bylaws and other rules and procedures, subject to the prior approval
of the Township Committee, by resolution or ordinance, as may be appropriate.
A.
The position of Municipal Housing Liaison (MHL) for the Township
of Montville is established by this chapter. The Township shall make
the actual appointment of the MHL by means of a resolution.
(1)
The MHL must be either a full-time or part-time employee of Montville.
(2)
The person appointed as the MHL must be reported to the Court and
thereafter posted on the Township's website.
(3)
The MHL must meet all the requirements for qualifications, including
initial and periodic training, if such training is made available
by COAH or the DCA.
(4)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for the Township
of Montville, including the following responsibilities which may not
be contracted out to the Administrative Agent, or the Administrative
Agent appointed by a specific developer:
(a)
Serving as the municipality's primary point of contact
for all inquiries from the state, affordable housing providers, Administrative
Agents and interested households;
(b)
The implementation of the Affirmative Marketing Plan (except
for new developments, which are marketed by an Administrative Agent
hired by the developer) and affordability controls;
(c)
When applicable, supervising any contracting Administrative
Agent;
(d)
Monitoring the status of all restricted units in the Township's
Fair Share Plan;
(e)
Compiling, verifying and submitting annual reports as required;
(f)
Coordinating meetings with affordable housing providers and
Administrative Agents, as applicable; and
(g)
Attending continuing education opportunities on affordability
controls, compliance monitoring and affirmative marketing as offered
or approved by the Affordable Housing Professionals of New Jersey
(AHPNJ), if such continuing education opportunities are made available
by COAH or the DCA.
(5)
The Municipal Housing Liaison shall have oversight responsibilities
for the certification procedures followed by the Administrative Agent
and the certification of applicants, including the following:
(a)
The MHL and/or MHC may intervene to correct or stop certification
procedures which are not in compliance with these rules and regulations.
(b)
The MHL shall have the right to alter or rescind certifications,
or to direct the developer to review and correctly certify any applicants
that the MHL finds were improperly classified.
A.
Subject to the approval of the Court, the Township of Montville shall
designate one or more Administrative Agent(s) to administer and to
affirmatively market the affordable units constructed in the Township
in accordance with UHAC and this chapter. An Administrative Agent
may be either an independent entity serving under contract to and
reporting to the Township, or reporting to a specific individual developer.
B.
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 may be subject to approval of the Court
appointed Special Master or 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).
C.
The Township Administrative Agent shall monitor and work with any
individual Administrative Agents appointed by individual developers.
The Administrative Agent(s) 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:
(1)
Affirmative marketing:
(a)
Conducting an outreach process to affirmatively market affordable
housing units in accordance with the Affirmative Marketing Plan of
the Township of Montville and the provisions of N.J.A.C. 5:80-26.15;
and
(b)
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.
(2)
Household certification:
(a)
Soliciting, scheduling, conducting and following up on interviews
with interested households;
(b)
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;
(c)
Providing written notification to each applicant as to the determination
of eligibility or noneligibility;
(d)
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.;
(e)
Creating and maintaining a referral list of eligible applicant
households;
(f)
For initial occupancy of affordable units, employing a random
selection process as provided in the Affirmative Marketing Plan of
the Township of Montville when referring households for certification
to affordable units; and
(3)
Affordability controls:
(a)
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;
(b)
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;
(c)
Ensuring that the removal of the deed restrictions and cancellation
of the mortgage note are effectuated and properly filed with the Morris
County Register of Deeds or Morris County Clerk's office after
the termination of the affordability controls for each restricted
unit; and
(d)
Communicating with lenders regarding foreclosures.
(4)
Resales and rerentals:
(a)
Instituting and maintaining an effective means of communicating
information between owners and the Township's Administrative
Agent, or any Administrative Agent appointed by a specific developer,
regarding the availability of restricted units for resale or rerental;
and
(b)
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.
(5)
Processing requests from unit owners:
(a)
Reviewing and approving requests for determination from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership that the amount of indebtedness
to be incurred will not violate the terms of this chapter;
(b)
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; and
(c)
Notifying the municipality of an owner's intent to sell
a restricted unit.
(6)
Enforcement:
(a)
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;
(b)
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
Township's Administrative Agent, or any Administrative Agent
appointed by a specific developer; and
(c)
Creating and publishing a written operating manual for each
affordable housing program administered by the Township's Administrative
Agent, or any Administrative Agent appointed by a specific developer,
to be approved by the Township Council and the Court, setting forth
procedures for administering the affordability controls.
(7)
Public information:
(a)
Providing sufficient staff to answer questions from applicants
and interested parties regarding all phases of the marketing plan,
the list, sale and rental of affordable housing units, amenities,
and pertinent laws and regulations.
(b)
Providing sample floor plans and information to applicants regarding
the development in general, affordable housing units specifically,
and approximate costs.
(c)
Providing information to applicants regarding any developer-sponsored
mortgage programs, government mortgage programs and commercially available
mortgages. The Administrative Agent shall explain all deed restrictions
and covenants, and their effect of the sale or rental of any affordable
housing units.
(d)
Ensuring availability for inspection and providing a copy of
its affordable housing agreement (AHA), prospectus, public offering
or their equivalents to all applicants as required by law. The Administrative
Agent shall submit the AHA for execution on behalf of the Township
prior to initial certificate of occupancy.
(8)
Additional responsibilities:
(a)
The Township's Administrative Agent shall have the authority
to take all actions necessary and appropriate to carry out its responsibilities
hereunder.
(b)
The Township's Administrative Agent shall prepare monitoring
reports for submission to the Municipal Housing Liaison in time to
meet the Court-approved monitoring and reporting requirements in accordance
with the deadlines set forth in this chapter. The Township's
Administrative Agent will be responsible for collecting monitoring
information from any Administrative Agents appointed by specific developers.
(c)
The Township's Administrative Agent, or any Administrative
Agent appointed by a specific developer, shall attend continuing education
sessions on affordability controls, compliance monitoring, and affirmative
marketing at least annually and more often as needed.
A.
The Township of Montville shall adopt by resolution an Affirmative
Marketing Plan, that is compliant with N.J.A.C. 5:80-26.15, as may
be amended and supplemented.
B.
The Affirmative Marketing Plan is a regional marketing strategy designed
to attract buyers and/or renters of all majority and minority groups,
regardless of race, creed, color, national origin, ancestry, marital
or familial status, gender, affectional or sexual orientation, disability,
age or number of children to housing units which are being marketed
by a developer, sponsor or owner of affordable housing. The Affirmative
Marketing Plan is intended to target those potentially eligible persons
who are least likely to apply for affordable units in that region.
It is a continuing program that directs marketing activities toward
Housing Region 2 and is required to be followed throughout the period
of restriction.
C.
The Township 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 Township's Administrative Agent designated
by the Township of Montville, or any Administrative Agent appointed
by a specific developer, shall implement the Affirmative Marketing
Plan to assure the affirmative marketing of all affordable units.
D.
In implementing the Affirmative Marketing Plan, the Township's
Administrative Agent, or any Administrative Agent appointed by a specific
developer, 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.
E.
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 Township's Administrative
Agent, or any Administrative Agent appointed by a specific developer,
shall consider the use of language translations where appropriate.
F.
The affirmative marketing process for available affordable units
shall begin at least four months (120 days) prior to the expected
date of occupancy.
G.
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.
H.
The following entities shall be notified of the availability of affordable
housing units in the Township of Montville: Fair Share Housing Center,
the New Jersey State Conference of the NAACP, the Latino Action Network,
the Morris County Chapter of the NAACP, Newark NAACP, East Orange
NAACP, Housing Partnership for Morris County, Community Access Unlimited,
Inc., Northwest New Jersey Community Action Program, Inc. (NORWESCAP),
Homeless Solutions of Morristown, and the Supportive Housing Association.
I.
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner.
A.
Responsibility.
(1)
The Administrative Agent appointed by a specific developer shall
be responsible for certifying applicants as eligible for affordable
housing units until all of the affordable housing units at the development
have been filled.
(2)
After all affordable housing units in a development have been filled,
the Township Administrative Agent will be responsible for certifying
additional applicants for resale. It shall be the responsibility of
the Administrative Agent appointed by a specific developer to certify
additional applicants for rerental.
B.
Verification of information.
(1)
Identity. The Administrative Agent will first substantiate that the
application for certification of eligibility was submitted by the
individual named on the waiting list, and to whom the application
number was assigned to make certain that the individual registered
with the Housing Office was the applicant. This is also to avoid duplicate
applications being submitted by one person using other people's
applications, or submission of multiple applications for one affordable
housing unit by separate individuals within the same family unit who
will all reside in the same affordable housing unit.
(2)
Eligibility.
(a)
The Administrative Agent may request any additional information
from the applicant beyond that which is included in the application
for certification of eligibility, which is deemed by the Administrative
Agent to be necessary to determine whether the applicant meets the
eligibility criteria for certification.
(b)
The Administrative Agent shall allow an applicant at least 14
days to comply with a request for additional information and, if necessary,
shall grant an additional seven-day extension.
(c)
If information is not received after the 21 days, the Administrative Agent will send a "letter of intent to deny" to the applicant as described in § 73-22D(2)(g) below.
C.
Fees.
(1)
Application. There shall be an application fee, which is set forth in Chapter 169, Fee Schedule, for precertification for the Montville Township resale list which shall be good for a one-year period from the date of certification. The fee shall be paid by the applicant.
(2)
Certification administration.
(a)
There shall be a resale certification fee, which is set forth in Chapter 169, Fee Schedule, payable to the Township of Montville for administrative expenses of certification of an applicant for a unit to be resold or rerented by the Housing Office. Such fee is to cover costs of the certification process, monitoring the price controls during occupancy for resale units, monitoring income each year in rental units, and other administrative salaries and costs associated with the oversight of affordable housing.
(b)
The MHC shall review the fee structure annually or more frequently
if it's deemed necessary. The MHC shall recommend changes in
the fee structure to the Township Committee.
(c)
Payment and collection of the administrative fee shall be a
precondition of execution of the affordable housing agreement by the
Municipal Housing Liaison.
D.
Certification process.
(1)
Waiting list of certified applicants.
(a)
The Administrative Agent shall interview a sufficient number
of applicants from the list in order to certify the lesser of 125
applicants or all of the those on the list. The MHC may establish
a smaller number at its discretion.
(b)
After all of the then available affordable housing units have
been filled, the Administrative Agent shall maintain a list of certified
applicants for each category of income level and unit size equal to
not less than 150% of the number of affordable housing units in that
classification remaining to be marketed in the entire development.
(c)
For example, if there are 20 one-bedroom low-income units yet
to be built in the development, then the development shall maintain
an inventory of certified applicants for that classification of at
least 30 names.
(d)
This list must be kept current until all units have been marketed.
(e)
In the case of rental units, the Administrative Agent, upon
exhausting names certified from the list, may then request a secondary
list from the Municipal Housing Liaison. Said list will be a computer-generated
listing compiled from the existing waiting list. Said list shall be
priority numbered based on the date of application and submitted by
the MHL. This list shall be the official "secondary" priority list
utilized for renting purposes only.
(2)
Documentation of income.
(a)
Adequate documentation of low- or moderate-income status, as
required to be disclosed in the application for certification of eligibility,
must be presented to and reviewed by the Administrative Agent.
(b)
Every occupant 18 years of age or over, who will live in the
unit and receives income, shall be required to provide income documentation.
(c)
Such documentation must include: copies of federal and state
tax returns for the prior three years, including W-2s, 1099s and all
attached schedules, an income statement, a statement of assets and
liabilities, gains from sale or disposition of property and any other
income-related information necessary to present a complete, accurate
and true statement of the income of the applicant.
(d)
Income shall be figured on the basis of gross receipts, with
no adjustments allowed. For the purposes of this article, all income
realized or unrealized, taxable or tax exempt, shall be considered.
(e)
Income shall be attributed to assets for which no other accountable
income is given, such as real estate and stock holdings, at 5.25%
of the net value. Assets of depreciable personal property, such as
vehicles, furnishings and jewelry, shall be exempt from valuation.
(f)
The applicant shall be given at least 14 calendar days to provide
the necessary supporting documents. The fourteen-day period shall
begin on the date of the certification interview at which the information
was requested, or from the date the applicant receives the formal
application and request if such request is sent by mail.
(g)
If the applicant does not provide the income documentation within
the 14 days provided above, then the Administrative Agent shall notify
the applicant of the intent to deny the application for failure to
provide the requested information. The notice of intent to deny shall
be sent by certified mail, return receipt requested.
[1]
The applicant shall be given at least 10 days from delivery
of the letter to provide the outstanding information.
[2]
The letter of intent to deny shall state explicitly what additional
information is needed to comply and the date by which the information
is to be provided.
[3]
The letter shall state that the failure to comply will result
in a denial of the application.
[4]
If the applicant does not provide the outstanding information within the 10 days allowed, the Administrative Agent shall send a letter of denial per § 73-22D(5) below.
[5]
The Administrative Agent shall have the discretion to extend
the ten-day period. If extensions are granted, the Administrative
Agent shall notify the applicants in writing by first class mail.
(3)
Certified applicants will be listed in the same order as designated
on the list separated by income classification and bedroom size. Certified
applicants will be offered units as they are available in the order
established in this section.
(4)
Notification to certified applicants.
(a)
The Administrative Agent shall notify all certified applicants
of their eligibility by certified mail, return receipt requested.
(b)
The notification shall state the name and address of the applicant
and of all persons who will be occupying the unit; whether the applicant
qualifies for a low-income or moderate-income unit; the size of the
unit; and the basis of the classification.
(c)
The applicant must be advised the number of days he/she has
to accept or reject the offer of a unit and instructions on how to
proceed.
(d)
The applicant shall be advised of his appeal rights to the MHC
if he/she disagrees with the certification classification of income
or unit size and shall be given instructions on how to initiate the
appeal.
(5)
Notification of denial.
(a)
The Administrative Agent shall notify the applicant in writing
by certified mail, return receipt requested, that he/she has been
denied and the explicit basis for the denial.
(b)
The notice of denial shall advise the applicant of his/her appeal
rights to the MHC if he/she disagrees with the decision and shall
be given instructions on how to execute those appeal rights.
E.
Duration of certification.
(1)
A certification of eligibility shall be valid for 12 months from
the date of the certification.
(2)
If at the end of 12 months additional units remain to be marketed,
all remaining certified applicants will be contacted by the Administrative
Agent to determine their continued interest in obtaining affordable
housing in the development. Applicants who indicated a continued interest
shall be asked to submit updated documentation to the Administrative
Agent to recertify their eligibility.
F.
Revocation.
(1)
A certification may be revoked by the Administrative Agent upon evidence
of the following:
(a)
False, misleading or incomplete statements or information on
the application for certification of eligibility or at the interview;
(b)
A change in the household income of the applicant prior to the
purchase or rental of the unit such that the income level of the applicant
would no longer meet the eligibility criteria for which he/she was
certified;
(c)
Failure of the applicant to secure mortgage financing within
60 days of submission of a mortgage application;
(d)
Adjudicated criminality on the part of any member of the household;
(e)
Poor credit history.
(2)
Notification.
(a)
The Administrative Agent shall notify the applicant in writing
by certified mail return receipt requested of the revocation of his/her
certification noting the specific reasons for the action.
(b)
The applicant shall be advised of his/her appeal rights to the
MHC if he/she disagrees with the revocation of his/her certification,
and shall be given instructions on how to initiate the appeal.
(c)
If the Administrative Agent has initiated the revocation of
certification, or questions the ineligibility of an applicant, the
Administrative Agent shall notify the applicant of its intent to revoke
the certification in writing by certified mail return receipt requested.
The applicant will be instructed to appear before a hearing of the
MHC at a regularly scheduled meeting, or a special meeting called
for the purpose, such hearing to occur not less than 30 days from
the date of the letter of intent to revoke.
(d)
Waiver of his/her rights to a hearing or failure to appear shall
constitute acceptance of the revocation by the applicant, and forfeiture
to any future rights of appeal.
G.
Review by the MHL/MHC.
(1)
Rights of the Municipal Housing Liaison.
(a)
In all cases, the MHL and the MHC retain the right to review
all records and files kept by the Administrative Agent related to
affordable housing and the certification of applicants.
(b)
Where the MHL believes that continuation of a procedural error
will result in further errors or an irreversible harm, then the MHL
may instruct the Administrative Agent to halt the action immediately,
for a period not to exceed 31 days.
(2)
Rights of the MHC.
(a)
Where the MHL has found that the Administrative Agent has made
procedural errors in the certification process that are not sufficient
in his/her discretion to immediately halt the activity, the MHL shall
notify the MHC of the problem and recommend corrective action.
(b)
Upon review of the MHL's findings and recommendations,
the MHC shall notify the Administrative Agent in writing advising
him/her of the problem and direct the Administrative Agent to discontinue
the action and institute whatever corrections are required. The Administrative
Agent may request a meeting with the MHC to discuss any areas of disagreement.
(3)
Hearing.
(a)
If the issue cannot be resolved between the MHL and the Administrative
Agent, then the MHC shall hold a hearing at its next regular meeting,
or at a special meeting called for the purpose.
(b)
The MHC shall hear testimony on the record from the MHL, the
Administrative Agent and any other interested parties regarding the
certification procedural errors.
(c)
The decision of the MHC shall be considered final. The Administrative
Agent may appeal the decision of the MHC to the Township Committee.
H.
Acceptance of units.
(1)
Only individuals who are certified as eligible under this article
shall be permitted to purchase or rent affordable housing units.
(2)
An applicant who has been certified as eligible for housing will
be called in for an interview by the Administrative Agent to explain
financing alternative, to explain the provisions of the affordable
housing agreement, and to sign contracts.
(a)
This interview shall constitute a formal offer for sale or rental
of an affordable housing unit.
(b)
The applicant will have seven days from the date of the formal
offer to advise the Administrative Agent of his/her intent to accept
or reject a unit.
(c)
The applicant will be afforded reasonable opportunity to secure
financing through the Administrative Agent, a government sponsored
program or commercial lender.
(d)
The applicant for a for-sale unit will have up to 60 days from
his/her mortgage commitment date to close on the unit. The applicant
for a rental unit will have up to 21 days from the date of formal
offer on a rental unit to sign the lease agreement. At the discretion
of the Administrative Agent with the prior approval of the MHC, the
Administrative Agent may extend the period for a maximum of 60 days.
After this period, approval will be required in writing from the MHC.
(3)
Any applicant who refused to accept a unit in a timely fashion or
cannot secure financing will be dropped from the certification list.
J.
Appeals by applicants.
(1)
If an applicant contests a decision by the Administrative Agent regarding
the unit size, income classification, denial or revocation of certification,
then the applicant shall have the right to appeal such decision to
the MHC.
(a)
If the applicant wishes to exercise his/her right to appeal,
he/she must notify the Administrative Agent and the MHL in writing
within five business days from receipt of written notification from
the Administrative Agent.
(b)
The letter of appeal must present the applicant's reasons
for believing why the action taken by the Administrative Agent was
inappropriate and what the applicant believes should have been the
proper action.
(2)
The MHL, at his/her discretion, may attempt to mediate the conflict
between the applicant and the Administrative Agent. If a satisfactory
conclusion cannot be reached, the MHL shall schedule a hearing of
the dispute at the next regularly scheduled meeting of the MHC, or
at a special meeting called for the purpose.
(3)
The MHC shall conduct a hearing of the dispute at which it will accept
evidence on the record verbally or in writing from the applicant,
the Administrative Agent and any other interested parties. The decision
of the MHC shall be final.
(4)
The Administrative Agent or the applicant shall have the right to
appeal the decision of the MHC directly to the Township Committee.
Appeal to the Township Committee must be made in writing to the Township
Clerk within five business days of the date of the MHC decision.
A.
Notice of intent.
(1)
Upon decision to sell or vacate an affordable unit, the current owner/occupant
shall submit an offer to sell or vacate to the Administrative Agent
within 90 days of the intended date to sell or vacate.
(2)
The offer to sell or vacate shall list the name, address and telephone
number of the owner; the date the unit was purchased; the price of
the unit or rent level; location of the unit; a statement of compliance
with the price affordability controls; and copies of cost statements
of any improvements previously approved by the MHC.
(3)
The offer to sell or vacate shall be available at the office of the
MHL.
B.
Certification of purchaser/tenant.
(1)
Upon receipt of an offer to sell or vacate, the Municipal Housing
Liaison or Administrative Agent, as appropriate, shall certify an
eligible applicant as per the certification procedures outline above.
(2)
Wherever possible, when units are resold or rerented they should
retain their original classification for low or moderate income.
(3)
The last sale price of the unit shall form the basis for the resale
price.
(4)
The MHL shall approve each resale or rerental in writing.
C.
Inability to certify a purchaser.
(1)
In the event the MHL is unable to certify an appropriate purchaser,
the current owner shall take steps to market the unit in an appropriate
fashion, including proper advertising, for a period of 60 days. If,
after the owner has demonstrated an inability to market the unit,
with due diligence, to a qualified purchaser, then the MHC may, at
its discretion, grant the owner an exemption so that he/she may sell
the unit to the alternate income level, or under market conditions
to a nonqualified purchaser.
(2)
Alternatively, the municipality may have the option to purchase the
unit for the maximum price permitted.
(3)
In all cases, resale controls shall remain in effect even if the
unit was sold to the municipality or to a market purchaser.
D.
Exempt transaction.
(1)
The following title transactions shall be deemed nonsales and the
Township shall provide the owner receiving title with written confirmation
of the exemption to those restrictions that determine occupancy of
the unit:
(a)
Transfer of ownership between spouses;
(b)
Transfer of ownership between former spouses ordered as a result
of a judicial decree of divorce or separation;
(c)
Transfer of ownership between family members by will or intestate
succession, subject to income eligibility for occupancy;
(d)
Transfer of ownership through an executor's deed to any
person, subject to income eligibility for occupancy;
(e)
Transfer of ownership by court order.
(2)
An exempt transfer of ownership does not terminate the resale restrictions
or existing liens on the property. All liens must be satisfied in
full prior to subsequent resale, and all subsequent resale prices
must be calculated using the resale price index in compliance with
the terms of the affordable housing agreement and the rules and regulations
specified herein.
A.
Mortgage restriction. Any mortgage for an affordable housing unit
shall contain a provision requiring the holder of it to notify the
Township in the event of the institution of a foreclosure action.
The Township shall have the right to intervene at all times in any
foreclosure action.
B.
All foreclosures shall be governed in connection with resale controls
in accordance with the provision of N.J.A.C. 5:93-9 et seq.
A.
Notice.
(1)
Upon a violation of any of the provisions of the affordable housing
agreement by the owner of an affordable housing unit, the Township
may give written notice to the owner specifying the nature of the
violation and requiring a correction within a reasonable period of
time.
(2)
The owner shall be obligated to notify the Township that the violation
has been corrected within the reasonable time period or that additional
time is requested.
(3)
If the owner does not forward written notification, as required,
or correct the violation within the time specified, the Township may
declare a default of the affordable housing agreement.
B.
Forfeiture of interest.
(1)
The interest of any owner may, at the option of the Township, be
subject to forfeiture in the event of substantial breach of any of
the terms, restrictions and provisions of the affordable housing agreement
which remains uncured for the period of 60 days after service of the
written notice of violation upon the owner.
(2)
The notice of violation shall specify the particular infraction and
shall advise the owner that his or her right to continued ownership
may be subject to forfeiture if such infraction is not abated within
60 days of receipt of the notice.
C.
Enforcement.
(1)
The provisions of this section may be enforced by the Township by
court action seeking a judgment which would result in the termination
of the owner's equity or other interest in the unit. Any judgment
shall be enforceable as if same were a judgment of default of the
purchase money mortgage and shall constitute a lien against the particular
affordable housing unit.
(2)
A court judgment of default shall obligate the owner to accept the
first offer to purchase from any certified applicant, who has been
referred to the owner by the Township, with such offer to purchase
being no more than the maximum permitted resale price as permitted
by the terms of the affordable housing agreement and these regulations.
(3)
The owner shall remain fully obligated, responsible and liable for
complying with the terms and restrictions of the affordable housing
agreement until such time as title is conveyed to a new owner.
