This chapter is intended to assure that very-low-, low- and
moderate-income units ("affordable units") are created with controls
on affordability over time and that only qualified low- and moderate-income
households shall occupy these units consistent with N.J.A.C. 5:93-1
et seq., as amended and supplemented, N.J.A.C. 5:80-26.1 et seq.,
as amended and supplemented, and the New Jersey Fair Housing Act of
1985. This chapter shall apply except where inconsistent with applicable
law.
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 Borough of River Edge
pursuant to the Borough's most recently adopted Housing Element
and Fair Share Plan.
B.
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.
The Borough of River Edge 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.
Trust fund activity. Beginning one year after the entry
of the Borough's Round 3 Judgment of Compliance and Repose, and
on every anniversary of that date through 2025, the Borough 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.
Affordable housing activity. Beginning one year after
the entry of the Borough's Round 3 Judgment of Compliance and
Repose, and on every anniversary of that date through 2025, the Borough
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 Borough during its ten-year repose period.
The Borough 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
Borough 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 Borough, 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 Borough's Judgement of Compliance and Repose,
and every third year thereafter, the Borough 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 Borough and Fair Share Housing Center on the issue of whether
the Borough has complied with its very-low-income housing obligation
under the terms of this settlement.
(3)
In addition to the foregoing postings, the Borough
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 chapter:
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.)
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this article, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; 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.
A development included in the Housing Plan Element and 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 a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing
trust fund.
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that:
All the residents of the development where
the unit is situated are 62 years or older; or
At least 80% of the units are occupied by
one person that is 55 years or older; or
The development has been designated by the
Secretary of the U.S. Department of Housing and Urban Development
as "housing for older persons" as defined in 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 Council on Affordable Housing, which is in, but not of,
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 State of New Jersey Department of Community Affairs.
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.
A development containing both affordable units and market-rate
units. 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 COAH.
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.
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 COAH's adopted Regional Income Limits published
annually by COAH.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A household with a total gross annual household income equal
to 30% or less of the median household income.
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.
Purpose. This section is intended to ensure that any
site or development that benefits from a subdivision or site plan
approval, rezoning, use variance, redevelopment plan or rehabilitation
plan approved by the Municipality or a Borough land use board that
results in five or more new multifamily or single-family attached
dwelling units produces affordable housing at a set-aside rate of
20% affordable for-sale units and 15% affordable rental units. This
section shall apply except where inconsistent with applicable law
or Court order.
B.
Mandatory set-aside requirement.
(1)
Any multifamily or single-family attached residential
development, including the residential portion of a mixed-use project,
that is approved and contains five or more new dwelling units as a
result of a subdivision or site plan approval, rezoning, use variance,
redevelopment plan or rehabilitation plan approved by the Municipality
or a Borough land use board shall be required to set aside a minimum
percentage of units for affordable housing.
(2)
For inclusionary projects in which the low and
moderate units are to be offered for sale, the minimum set-aside percentage
shall be 20%; for projects in which the low- and moderate-income units
are to be offered for rent, the minimum set-aside percentage shall
be 15%. Where the set-aside percentage results in a fractional unit,
the total set-aside requirement shall be rounded upwards to the next
whole number, regardless of the fractional amount.
(3)
A minimum of 13% of any affordable units developed
through the Borough's mandatory set-aside requirements shall
be very-low-income qualified units.
(4)
Nothing in this section precludes the Municipality
or a Borough land use board from imposing an affordable housing set-aside
in a development not required to have a set-aside pursuant to this
section consistent with N.J.S.A. 52:27D-311(h) and other applicable
law.
(5)
This requirement does not create any entitlement
for a property owner or applicant for subdivision or site plan approval,
a zoning amendment, use variance, or adoption of a redevelopment plan
or rehabilitation plan in areas in need of redevelopment or rehabilitation,
or for approval of any particular proposed project.
(6)
This requirement does not apply to any sites or
specific zones for which higher set-aside standards have been or will
be established, either by zoning, subdivision or site plan approval,
or an adopted redevelopment plan or rehabilitation plan.
(7)
If the Municipality's Settlement Agreement
with Fair Share Housing Center ("FSHC") dated June 24, 2019, or the
Municipality's 2020 Housing Element and Fair Share Plan, establishes
set-aside standards for any specific sites or zones which are different
from the set-aside standards set forth in this section, the set-asides
established for those sites or zones in the Settlement Agreement or
Housing Element and Fair Share Plan shall govern.
(8)
Furthermore, this requirement shall not apply to
residential expansions, additions, renovations, replacement, or any
other type of residential development that does not result in a net
increase in the number of dwellings by five or more.
(9)
Where a developer demolishes existing dwelling
units and builds new dwelling units on the same site, the provisions
of this section shall apply only if the net number of dwelling units
is five or greater.
(10)
All subdivision and site plan approvals of qualifying
residential developments shall be conditioned upon compliance with
the provisions of this section.
(11)
All affordable units to be produced pursuant
to this section shall comply with the Uniform Housing Affordability
Controls (N.J.A.C. 5:80-26.1 et seq.), as may be amended from time
to time, and any applicable Order of the Court, including a Judgment
of Compliance and Repose Order.
A.
The Borough of River Edge and Fair Share Housing Center
have agreed that the Borough's Round 3 (1999-2025) indigenous
need rehabilitation obligation is six units. The Borough will work
with Bergen County or hire a separate entity to rehabilitate units
in the Borough to address the Borough's rehabilitation obligation.
Any such rehabilitation programs will update and renovate deficient
housing units occupied by low- and moderate-income households such
that, after rehabilitation, these units will comply with the New Jersey
State Housing Code pursuant to N.J.A.C. 5:28.
(1)
All rehabilitated rental and owner-occupied units
shall remain affordable to low- and moderate-income households for
a period of 10 years (the control period). For owner-occupied units,
the control period will be enforced with a lien, and for renter-occupied
units, the control period will be enforced with a deed restriction.
(2)
The Borough of River Edge shall dedicate an average
of at least $18,000 for each unit to be rehabilitated through this
program, reflecting the minimum hard cost of rehabilitation for each
unit.
(3)
Units in the rehabilitation programs shall be exempt
from N.J.A.C. 5:93-9 and UHAC requirements, but shall be administered
in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent
to rehabilitation, or if a renter-occupied unit is re-rented prior
to the end of controls on affordability, the deed restriction shall
require the unit to be rented to a low- or moderate-income household
at an affordable rent and affirmatively marketed pursuant to N.J.A.C.
5:93-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion
of the rehabilitation, the maximum rate of rent shall be the lesser
of the current rent or the maximum permitted rent pursuant to N.J.A.C.
5:93-9 and UHAC.
(c)
Rents in rehabilitated units may increase
annually based on the standards in N.J.A.C. 5:93-9 or the standards
issued by a New Jersey administrative agency with proper authority
to issue such standards.
(d)
Applicant and/or tenant households shall be
certified as income-eligible in accordance with N.J.A.C. 5:93-9 and
UHAC, except that households in owner-occupied units shall be exempt
from the regional asset limit.
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)
At least 25% of the obligation shall be met through
rental units, including at least half in rental units available to
families.
(3)
A maximum of 25% of the Borough's obligation
may be met with age-restricted units. At least half of all affordable
units in the Borough's Fair Share Plan shall be available to
families.
(4)
In each affordable development, at least 50% of
the restricted units within each bedroom distribution shall be very-low-
or low-income units.
(5)
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.
(6)
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 townhouse dwelling
units and all restricted units in all other multistory buildings shall
be subject to the technical design standards of the Barrier Free Subcode,
N.J.A.C. 5:23-7.
(2)
All restricted townhouse 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 River Edge 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 Borough of River Edge'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 Borough of River Edge 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 Borough of River Edge 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 Borough's Affordable Housing Trust
Fund in care of the Borough 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, moderate-income ownership
units must be available for at least three different sales prices
for each bedroom type, and low-income ownership units must be available
for at least two different sales prices for each bedroom type.
(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
Borough'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 Borough 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 1 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 1 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 1 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.
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:
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 the Borough
of River Edge takes action to release the unit from such requirements;
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.
B.
The affordability control period for a restricted ownership
unit shall 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 Borough'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 Borough'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 non-exempt
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 continuing certificate of occupancy or a certified statement from
the Construction Official stating that the unit meets all Code standards
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 Borough's administrative agent,
or an administrative agent appointed by a particular developer.
B.
The Borough'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 Borough'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 Borough'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 Borough'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 Borough'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 Borough'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 Borough'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 Borough's administrative agent, or an
administrative agent appointed by a particular developer. Unless otherwise
approved by the Borough'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 the Borough
of River Edge takes action to release the unit from such requirements.
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.
Deeds of all real property that include restricted
rental units shall contain deed restriction language. The deed restriction
shall have priority over all mortgages on the property, and the deed
restriction shall be filed by the developer or seller with the records
office of the County of Bergen. A copy of the filed document shall
be provided to the Borough's administrative agent within 30 days
of the receipt of a certificate of occupancy.
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 Borough'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 Borough'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
Borough's administrative agent, or an administrative agent appointed
by a particular developer. If the fees are paid to the Borough'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.
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 Borough'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.
