[Amended 6-12-2023 by Ord. No. 2023-18]
A.
The purpose of this article is to create the administrative mechanisms
needed for the execution of Verona's responsibility to assist
in the provision of affordable housing pursuant to the Fair Housing
Act of 1985.
B.
This chapter of the Township Code sets forth regulations regarding
the low- and moderate-income housing units in the Township consistent
with the Township's constitutional obligation to provide a realistic
opportunity for the construction of its fair share of the regional
need for affordable housing for low- and moderate-income households,
the provisions known as the Substantive Rules of the New Jersey Council
on Affordable Housing ("COAH rules"), N.J.A.C. 5:93 et seq., and the
Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1
et seq., except that the requirements for very-low-income affordable
housing as established in P.L. 2008, c. 46 (the "Roberts Bill," codified
at N.J.S.A. 52:27D-329.1) shall supersede those of the UHAC.
C.
This chapter is intended to assure that very-low-, low- and moderate-income
units ("affordable units") are created with deed restrictions which
preserve affordability over time and that very-low-, low- and moderate-income
households shall occupy these units. This chapter shall apply to all
inclusionary developments and 100% affordable developments (including
those funded with low-income housing tax credit financing) except
where inconsistent with applicable law.
D.
This chapter implements and incorporates the Housing Element and
Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A.
40:55D-1 et seq. ("Fair Share Plan"), in accordance with the settlement
agreement entered into between the Township and the Fair Share Housing
Center ("FSHC") on March 10, 2021 and addresses the requirements of
N.J.A.C. 5:93, as may be amended and supplemented.
E.
The Township shall file monitoring and status reports with the Superior
Court and FSHC and shall place the reports on its municipal website.
Any Fair Share Plan evaluation or monitoring report prepared by the
Special Master in accordance with N.J.A.C. 5:91 shall be available
to the public at the Verona Town Hall, 600 Bloomfield Avenue, Verona,
New Jersey 07044.
F.
On or about each anniversary of the Court's filing of the Judgement
of Compliance and Repose through the end of the period of Third Round
Judgment of Repose (July 1, 2025), the Township will 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 all parties to the Township's court-approved
settlement agreements, using forms previously developed for this purpose
by the Council on Affordable Housing or any other forms endorsed by
the Special Master and FSHC.
G.
The Fair Housing Act includes two provisions regarding action to
be taken by the Township during the ten-year period of protection
provided in the Township's agreement with FSHC. The Township
agrees to comply with those provisions as follows:
(1)
At the time of a hearing for a Third Round Judgment of Compliance,
the Township may provide a realistic opportunity review consistent
with the midpoint review provisions at N.J.S.A. 52:27D-313, which
will consist of 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. In the event the Court
determines that a site or mechanism no longer presents a realistic
opportunity and should be replaced or supplemented, then the municipality
shall have the first opportunity to supplement or revise its plan
to correct any deficiency.
(2)
Within 30 days of the third anniversary of the Judgement of
Compliance and Repose, the Township shall prepare a review of compliance
with the very-low-income housing requirements required by N.J.S.A.
52:27D-329.1 and its settlement agreement with Fair Share Housing
Center. The Township will post on its municipal website, with a copy
provided to FSHC, a status report as to its satisfaction of its very-low-income
requirements, including the family very-low-income requirements referenced
herein and in the Township's settlement agreement with FSHC.
Such posting shall invite any interested party to submit comments
to the municipality and FSHC on the issue of whether the municipality
has complied with its very-low-income housing obligation.
As used herein the following terms shall have the following
meanings:
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 chapter, as well as N.J.A.C. 5:91, N.J.A.C.
5:93 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 deed-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. 5:93-7.4; in the case of an ownership
unit, 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, 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 incorporated in the Housing Element
and Fair Share Plan, and including, but 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. 5:93, 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: 1) all the residents of the development where the unit
is situated are 62 years old or older; or 2) at least 80% of the units
are occupied by one person that is 55 years old or older (except that
persons younger than 19 may not be permanent residents); or 3) the
development has been designated by the Secretary of the United States
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(b)(2).
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 structure in which households live in distinct bedrooms,
yet share kitchen and plumbing facilities, central heat and common
areas. Alternative living arrangements include, but are not limited
to: transitional facilities for the homeless, Class A, B, C, D, and
E boarding homes as regulated by the New Jersey Department of Community
Affairs; residential health-care facilities as regulated by the New
Jersey Department of Health and Senior Services; group homes for the
developmentally disabled and mentally ill as licensed and/or regulated
by the New Jersey Department of Human Services; and congregate living
arrangements.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining for four or more adult persons unrelated to the proprietor
and to assure that assisted living services are available when needed
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 part
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 at least one 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 of a lot or any land, improved
or unimproved, which is 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; and any use or change in the use of any
building or other structure, or land or extension of use of land,
for which permission may be required pursuant to N.J.S.A. 40:55D-1
et seq.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the housing element,
including the draft ordinances necessary to implement that plan and
addresses the requirements of N.J.A.C. 5:93-5.
Strategies that minimize the impact of development on the
environment and enhance the health, safety and well-being of residents
by producing durable, low-maintenance, resource-efficient housing
while making optimum use of existing infrastructure and community
services.
The portion of the municipality's Master Plan, required
by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and
the Act, that includes the information required by N.J.A.C. 5:93-5.1
and establishes the Township's fair share obligation.
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 use 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 for the applicable COAH
housing region.
A deed-restricted unit that is affordable to a low-income
household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a residential building,
which includes, but is 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 COAH
housing region, as approved by the New Jersey Superior Court.
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income for
the applicable COAH housing region.
A restricted unit that is affordable to a moderate-income
household.
Any sale or transfer of ownership other than the transfer
of ownership between spouses; 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 (e.g., by lottery) by which 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.
The maximum housing value in each COAH housing region affordable
to a four-person household with an income of at 80% of the regional
median as defined by adopted/approved regional income limits.
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6, which, for purposes of affordable housing credit, involves
at least one major system of the building or structure.
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
et seq., as may be amended and supplemented, but does not include
a market-rate unit financed under UHORP or MONI.
An expert appointed by a Superior Court Judge to assist the
Court, the municipality and any intervenors or other interested parties
in applying the Mount Laurel Doctrine, including a determination of
municipal fair share and an evaluation of the effectiveness of the
municipality's Fair Share Plan.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
A restricted unit that is affordable to a very-low-income
household.
A household with a total gross annual household income equal
to 30% or less of the median household income within the applicable
COAH housing region.
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 crediting purposes.
The following requirements shall apply to all new or planned
developments that contain both market-rate and low- and moderate-income
housing units.
A.
Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units, whether developed in
a single-phase development or in a multiphase development:
|
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
|
B.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units
and shall be no further distant, on average, from common amenities
provided in the development than market-rate units.
C.
Payments in lieu and off-site construction. The standards for the
collection of payments in lieu of constructing affordable units or
standards for constructing affordable units off site shall be in accordance
with the requirements below:
(1)
The base dollar amount of the payment in lieu of constructing
an affordable unit at the time of adoption of this chapter shall be
pursuant to COAH's regulations and/or the amount in a development
pro forma on file with the Township Clerk. This amount shall be adjusted
periodically by the Township to reflect the most current and accurate
market conditions or better cover the cost to the Township to subsidize
affordable housing construction. The payment shall be imposed as a
condition of development approval by the Planning Board.
(2)
During the development approval process, a developer may demonstrate to the governing body that the actual construction cost of an affordable unit less estimated capitalized revenue at the development in question is lower than the imposed payment in lieu in § 150-21.9A(1). At its discretion, the governing body may impose a payment in lieu amount equal or proximate to the amount estimated by the developer.
D.
Utilities.
(1)
Affordable units shall utilize the same type of heating source
as market units within the affordable development.
(2)
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 HUD for the Section 8 program.
E.
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.
(a)
Within rental developments, of the total number of affordable
rental units, at least 13% shall be affordable to very-low-income
households.
(2)
In each affordable development, at least 50% of the restricted
units within each bedroom distribution shall be low-income units,
including at least 13% very-low income.
(3)
Affordable developments that are not age-restricted shall be
structured 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.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
F.
Accessibility requirements:
(1)
The first floor of all new restricted townhouse dwelling units
and all restricted multistory dwelling units attached to at least
one other dwelling unit 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 multistory
dwelling units attached to at least one other dwelling unit shall
have the following features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway 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 the Township 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 Verona'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 F(2)(f)[2] herein shall be used by the Township for the sole purpose of making the adaptable entrance of any 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 for the conversion from adaptable
to accessible entrances to the construction official of the Township
of Verona.
[5]
Once the construction official has determined that
the design plan to convert the unit entrances from adaptable to accessible
meets 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 of Verona's affordable housing
trust fund in care of the Municipal Treasurer, who shall ensure that
the funds are deposited into the affordable housing trust fund and
appropriately earmarked for the intended purpose.
(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 on the site. Determinations of site impracticability
shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
G.
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 and by the Superior Court, utilizing the established regional
income limits.
(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 low- and
moderate-income 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.
(a)
At least 13% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(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 prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5)
In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
met:
(a)
A studio or efficiency unit shall be affordable to a one-person
household;
(b)
A one-bedroom unit shall be affordable to a 1 1/2 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 4 1/2 person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6)
In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(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
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9)
The price of owner-occupied low- and moderate-income units may
increase annually based on the percentage increase in the regional
median income limit for each housing region. In no event shall the
maximum resale price established by the administrative agent be lower
than the last recorded purchase price. Income limits for all units
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 et seq. shall be updated by the Township annually
within 30 days of the publication of determinations of median income
by HUD as follows:
(a)
Regional income limits shall be established for the Region 2
based on the median income by household size, which shall be established
by a regional weighted average of the uncapped Section 8 income limits
published by HUD. To compute this regional income limit, the HUD determination
of median county income for a family of four is multiplied by the
estimated households within the county according to the most recent
decennial census. The resulting product for each county within the
housing region is summed. The sum is divided by the estimated total
households from the most recent decennial census in Region 2. This
quotient represents the regional weighted average of median income
for a household of four. The income limit for a moderate-income unit
for a household of four shall be 80% of the regional weighted average
median income 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 regional weighted average median income for a family of four.
The income limit for a very-low-income unit for a household of four
shall be 30% of the regional weighted average median income 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 those for the
previous year.
(b)
The income limits calculated each year shall be the result of applying the percentages set forth in Subsection G(9)(a) above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection G(9)(a) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
(10)
The rent levels of very-low-, low- and moderate-income units
may be increased annually based on the percentage increase in the
Housing Consumer Price Index for the Northeast Urban 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.
H.
Condominium and homeowners' association fees.
(1)
For any affordable housing unit that is part of a condominium
association and/or homeowner's association, the master deed shall
reflect that the association fee assessed for each affordable housing
unit shall be established at 100% of the market rate fee.
A.
Purpose.
(1)
The requirements of this section apply to all developments that
contain affordable housing units, including any currently unanticipated
future developments that will provide low- and moderate-income housing
units.
B.
Affirmative marketing.
(1)
The Township shall adopt by resolution an affirmative marketing
plan, subject to approval of the Superior Court, compliant with N.J.A.C.
5:80-26.15, as may be amended and supplemented.
(2)
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 also 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 all marketing
activities toward COAH Housing Region 2 and covers the period of deed
restriction.
(3)
The affirmative marketing plan shall provide a regional preference
for all households that live and/or work in COAH Housing Region 2,
composed of Essex, Morris, Union, and Warren Counties.
(4)
The municipality has the ultimate responsibility for adopting
the affirmative marketing plan and for the proper administration of
the affirmative marketing program, including initial sales and rentals
and resales and re-rentals. The administrative agent designated by
the Township of Verona shall implement the affirmative marketing plan
to assure the affirmative marketing of all affordable units.
(5)
The administrative agent designated by the Township shall assure
the affirmative marketing of all affordable units is consistent with
the affirmative marketing plan for the municipality.
(6)
In implementing the affirmative marketing plan, the administrative
agent shall provide a list of counseling services to low- and moderate-income
applicants on subjects such as budgeting, credit issues, mortgage
qualification, rental lease requirements, and landlord/tenant law.
(7)
The affirmative marketing plan shall describe the media to be
used in advertising and publicizing the availability of housing. In
implementing the affirmative marketing plan, the administrative agent
shall consider the use of language translations where appropriate.
(8)
The affirmative marketing process for available affordable units
shall begin at least four months (or 120 days) prior to the expected
date of occupancy.
(9)
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.
(10)
The costs of advertising and affirmative marketing of the affordable
units shall be the responsibility of the developer, sponsor or owner,
unless otherwise determined or agreed to by the Township of Verona.
C.
Occupancy standards.
(1)
In referring certified households to specific restricted units,
to the extent feasible, and without causing an undue delay in occupying
the unit, the administrative agent shall strive to:
(2)
Additional provisions related to occupancy standards (if any)
shall be provided in the municipal operating manual.
D.
Selection of occupants of affordable housing units.
E.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
Control periods for restricted ownership units shall be in accordance
with N.J.A.C. 5:80-26.5, and each restricted ownership unit shall
remain subject to the controls on affordability for a period of at
least 30 years and until the municipality takes action thereafter
to release the controls on affordability.
(2)
Rehabilitated owner-occupied housing units that are improved
to code standards shall be subject to affordability controls for a
period of 10 years.
(3)
The affordability control period for a restricted ownership
unit shall commence on the date the initial certified household takes
title to the unit.
(4)
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.
(5)
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 that follows the expiration of the applicable minimum
control period provided under N.J.A.C. 5:80-26.5(a), as may be amended
and supplemented.
F.
Price restrictions for restricted ownership units, homeowners'
association fees and resale prices.
(1)
Price restrictions for restricted ownership units shall be in
accordance with N.J.A.C. 5:80-26.1 et seq., as may be amended and
supplemented, including:
(a)
The initial purchase price for a restricted ownership unit shall
be approved by the administrative agent.
(b)
The administrative agent shall approve all resale prices, in
writing and in advance of the resale, to assure compliance with the
foregoing standards.
(c)
The method used to determine the condominium association fee
amounts and special assessments shall be indistinguishable between
the low- and moderate-income unit owners and the market unit owners.
(d)
The owners of restricted ownership units may apply to the administrative
agent to increase the maximum sales price for the unit on the basis
of capital improvements. Eligible capital improvements shall be those
that render the unit suitable for a larger household or the addition
of a bathroom.
(e)
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 administrative agent at the time of the signing of the agreement
to purchase. The purchase of central air conditioning installed subsequent
to the initial sale of the 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 administrative agent. Unless otherwise approved by
the administrative agent, the purchase of any property other than
central air conditioning shall not be made a condition of the 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.
G.
Buyer income eligibility.
(1)
Buyer income eligibility for restricted ownership units shall
be in accordance with N.J.A.C. 5:80-26.1 et seq., 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.
(2)
Notwithstanding the foregoing, the administrative agent may,
upon approval by the Township Council, and subject to the Court's
approval, permit a moderate-income purchaser to buy a low-income unit
if and only if the administrative agent can demonstrate that there
is an insufficient number of eligible low-income purchasers in the
housing region to permit prompt occupancy of the unit and all other
reasonable efforts to attract a low-income purchaser, including pricing
and financing incentives, have failed. Any such low-income unit that
is sold to a moderate-income household shall retain the required pricing
and pricing restrictions for a low-income unit.
(3)
A certified household that purchases a restricted ownership
unit must occupy it as the certified household's principal residence
and shall not lease the unit; provided, however, that the administrative
agent may permit the owner of a restricted ownership unit, upon application
and a showing of hardship, to lease the restricted unit to another
certified household for a period not to exceed one year.
(4)
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 homeowners' association fees, as applicable)
does not exceed 33% of the household's certified monthly income.
H.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted
ownership unit, the administrative agent shall determine in writing
that the proposed indebtedness complies with the provisions of this
section.
(2)
With the exception of original purchase money mortgages, during
a control period neither an owner nor a lender shall at any time cause
or permit the total indebtedness secured by a restricted ownership
unit to exceed 95% of the maximum allowable resale price of that unit,
as such price is determined by the administrative agent in accordance
with N.J.A.C. 5:80-26.6(b).
I.
Control periods for restricted rental units.
(1)
Control periods for restricted rental units shall be in accordance
with N.J.A.C. 5:80-26.11, and each restricted rental unit shall remain
subject to the controls on affordability for a period of at least
30 years, until the municipality takes action to release the controls
on affordability. Prior to such action, a restricted rental unit must
remain subject to the requirements of N.J.A.C. 5:80-26.1 et seq.,
as may be amended and supplemented.
(a)
Restricted rental units created as part of developments receiving
9% low-income-housing tax credits must comply with a control period
of not less than a thirty-year compliance period plus a fifteen-year
extended use period.
(2)
Rehabilitated renter-occupied housing units that are improved
to code standards shall be subject to affordability controls for a
period of 10 years.
(3)
Deeds of all real property that include restricted rental units
shall contain deed restriction language. The deed restriction shall
have priority over all mortgages on the property, and the deed restriction
shall be filed by the developer or seller with the records office
of the County of Essex. A copy of the filed document shall be provided
to the administrative agent within 30 days of the receipt of a certificate
of occupancy.
(4)
A restricted rental unit shall remain subject to the affordability
controls of this chapter, despite the occurrence of any of the following
events:
J.
Price restrictions for rental units; leases.
(1)
A written lease shall be required for all restricted rental
units, except for units in an assisted living residence, 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 administrative agent.
(2)
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 administrative agent.
(3)
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 administrative agent to be applied
to the costs of administering the controls applicable to the unit
as set forth in this chapter.
K.
Tenant income eligibility.
(1)
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:
(a)
Very-low-income rental units shall be reserved for households
with a gross household income less than or equal to 30% of median
income.
(b)
Low-income rental units shall be reserved for households with
a gross household income less than or equal to 50% of median income.
(c)
Moderate-income rental units shall be reserved for households
with a gross household income less than 80% of median income.
(2)
The administrative agent 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 exist:
(a)
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;
(b)
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;
(c)
The household is currently in substandard or overcrowded living
conditions;
(d)
The household documents the existence of assets with which the
household proposes to supplement the rent payments; or
(e)
The household documents proposed 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.
L.
Conversions.
(1)
Each housing unit created through the conversion of a nonresidential
structure shall be considered a new housing unit and shall be subject
to the affordability controls for a new housing unit.
M.
Alternative living arrangements.
(1)
The administration of an alternative living arrangement shall
be in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following
exceptions:
(2)
With the exception of units established with capital funding
through a twenty-year operating contract with the Department of Human
Services, Division of Developmental Disabilities, alternative living
arrangements shall have at least thirty-year controls on affordability
in accordance with UHAC, unless an alternative commitment is approved
by the Court.
(3)
The service provider for the alternative living arrangement
shall act as the administrative agent for the purposes of administering
the affirmative marketing and affordability requirements for the alternative
living arrangement.
A.
Establishment of Municipal Housing Liaison position and compensation;
powers and duties.
(1)
Establishment of position of Municipal Housing Liaison. There
is hereby established the position of the Municipal Housing Liaison
for Verona.
(2)
Subject to the approval of the Superior Court (Court), the Municipal
Housing Liaison shall be appointed by the governing body and may be
a full- or part-time municipal employee.
(3)
The Municipal Housing Liaison shall be responsible for oversight
and administration of the affordable housing program for Verona, including
the following responsibilities which may not be contracted out:
(a)
Serving as Verona's primary point of contact for all inquiries
from the state, affordable housing providers, administrative agents,
and interested households;
(b)
The implementation of affirmative marketing plans and affordability
controls;
(c)
Monitoring the status of all restricted units in Verona's
fair share plan;
(d)
Compiling, verifying, and submitting annual reporting as required
by the Court;
(e)
Coordinating meetings with affordable housing providers and
administrative agents, as applicable;
(f)
Attending continuing education programs as may be required by
the Court;
(4)
Compensation. Compensation shall be fixed by the governing body
at the time of the appointment of the Municipal Housing Liaison.
B.
Administrative agent.
(1)
Subject to approval by COAH, any successor agency, or a Court
of competent jurisdiction, Verona may contract with or authorize a
consultant, authority, government or any agency charged by the governing
body, which entity shall have the responsibility of administering
the affordable housing program of Verona. If Verona contracts with
another entity to administer all or part of the affordable housing
program, including the affordability controls and affirmative marketing
plan, the Municipal Housing Liaison shall supervise the contracting
administrative agent.
(2)
Administrative powers and duties assigned to the Municipal Housing
Liaison or contracted administrative agent shall be as follows:
(a)
Affirmative marketing.
[1]
Conducting an outreach process to ensure affirmative
marketing of affordable housing units in accordance with the affirmative
marketing plan of Verona and the provisions of N.J.A.C. 5:80-26.15.
[2]
Providing counseling or contracting to provide
counseling services to low- and moderate-income applicants on subjects
such as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
(b)
Household certification.
[1]
Soliciting, scheduling, conducting and following
up on interviews with interested households;
[2]
Conducting interviews and obtaining sufficient
documentation of gross income and assets upon which to base a determination
of income eligibility for a very-low-, low-, or moderate-income unit;
[3]
Providing written notification to each applicant
as to the determination of eligibility or noneligibility;
[4]
Requiring that all certified applicants for restricted
units execute a certificate substantially in the form, as applicable,
of either the ownership or rental certificates set forth in Appendixes
J and K of N.J.A.C. 5:80-26.1 et seq.;
[5]
Creating and maintaining a referral list of eligible
applicant households living in the housing region and eligible applicant
households with members working in the housing region where the units
are located; and
[6]
Employing the random selection process as provided
in the affirmative marketing plan of Verona when referring households
for certification to affordable units.
[7]
Notifying the following entities of the availability
of affordable housing units in the Township of Verona: the Fair Share
Housing Center, the New Jersey State Conference of the NAACP, the
Latino Action Network, the Newark NAACP, the Oranges and Maplewood
NAACP, Morris County NAACP, Elizabeth NAACP, and the Supportive Housing
Association.
(c)
Affordability controls.
[1]
Furnishing to attorneys or closing agents forms
of deed restrictions and mortgages for recording at the time of conveyance
of title of each restricted unit;
[2]
Creating and maintaining a file on each restricted
unit for its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
[3]
Ensuring that the removal of the deed restrictions
and cancellation of the mortgage note are effectuated and properly
filed with the appropriate county's register of deeds or county
clerk's office after the termination of the affordability controls
for each restricted unit;
[4]
Communicating with lenders regarding foreclosures;
and
[5]
Ensuring the issuance of continuing certificates
of occupancy or certificates pursuant to N.J.A.C. 5:80-26.10.
(d)
Records retention.
(e)
Resale and rental.
[1]
Instituting and maintaining an effective means
of communicating information between owners and the administrative
agent regarding the availability of restricted units for resale or
rental; and
[2]
Instituting and maintaining an effective means
of communicating information to very-low-, low-, and moderate-income
households regarding the availability of restricted units for resale
or re-rental.
(f)
Communicating with unit owners.
[1]
Reviewing and approving requests for determination
from owners of restricted units who wish to take out home equity loans
or refinance during the term of their ownership so that the amount
of indebtedness to be incurred will not violate the terms of this
chapter;
[2]
Reviewing and approving requests to increase sales
prices from owners of restricted units who wish to make capital improvements
to the units that would affect the selling price, such authorizations
to be limited to those improvements resulting in additional bedrooms
or bathrooms and the depreciated cost of central air-conditioning
systems;
[3]
Notifying the municipality of an owner's intent
to sell a restricted unit; and
[4]
Processing requests and making determinations on
requests by owners of restricted units for hardship waivers.
(g)
Enforcement.
[1]
Ensure that all restricted units are identified
as affordable within the Tax Assessor's office and any municipal
utility authority (MUA) and upon notification to the administrative
agent of change in billing address, payment delinquency of two consecutive
billing cycles, transfer of title, or institution of a writ of foreclosure
on all affordable units, notifying all such owners that they must
either move back to their unit or sell it;
[2]
Securing from all developers and sponsors of restricted
units, at the earliest point of contact in the processing of the project
or development, written acknowledgment of the requirement that no
restricted unit can be offered, or in any other way committed, to
any person, other than a household duly certified to the unit by the
administrative agent;
[3]
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made;
[4]
Sending annual mailings to all owners of affordable
dwelling units, reminding them of the notices and requirements outlined
in N.J.A.C. 5:80-26.18(d)4;
[5]
Establishing a program for diverting unlawful rent
payments to the municipality's affordable housing trust fund
or other appropriate municipal fund approved by the DCA;
[6]
Establishing a rent-to-equity program;
[7]
Creating and publishing a written operating manual,
as approved by the Township Council and COAH, its successor agency,
or court of competent jurisdiction, setting forth procedures for administering
such affordability controls; and
[8]
Providing annual reports to COAH, its successor
agency, or court of competent jurisdiction as required.
(h)
The administrative agent shall have authority to take all actions
necessary and appropriate to carry out its responsibilities hereunder.
C.
Enforcement of affordable housing regulations.
(1)
Upon the occurrence of a breach of any of the regulations governing
the affordable unit by an owner, developer or tenant, the municipality
shall have all remedies provided at law or equity, including but not
limited to foreclosure, tenant eviction, municipal fines, a requirement
for household recertification, acceleration of all sums due under
a mortgage, recoupment of any funds from a sale in the violation of
the regulations, injunctive relief to prevent further violation of
the regulations, entry on the premises, and specific performance.
(2)
After providing written notice of a violation to an owner, developer
or tenant of a low- or moderate-income unit and advising the owner,
developer or tenant of the penalties for such violations, the municipality
may take the following action against the owner, developer or tenant
for any violation that remains uncured for a period of 60 days after
service of the written notice:
(a)
The municipality may file a court action pursuant to N.J.S.A.
2A:58-11 alleging a violation, or violations, of the regulations governing
the affordable housing unit. If the owner, developer or tenant is
found by the Court to have violated any provision of the regulations
governing affordable housing units, the owner, developer or tenant
shall be subject to one or more of the following penalties, at the
discretion of the Court:
[1]
A fine of not more than $500 or imprisonment for
a period not to exceed 90 days, or both. Each and every day that the
violation continues or exists shall be considered a separate and specific
violation of these provisions and not as a continuing offense;
[2]
In the case of an owner who has rented his or her
low- or moderate-income unit in violation of the regulations governing
affordable housing units, payment into the Township of Verona affordable
housing trust fund of the gross amount of rent illegally collected;
[3]
In the case of an owner who has rented his or her
low- or moderate-income unit in violation of the regulations governing
affordable housing units, payment of an innocent tenant's reasonable
relocation costs, as determined by the Court.
(b)
The municipality may file a court action in the Superior Court
seeking a judgment, which would result in the termination of the owner's
equity or other interest in the unit, in the nature of a mortgage
foreclosure. Any judgment shall be enforceable as if the same were
a judgment of default of the first purchase money mortgage and shall
constitute a lien against the low- and moderate-income unit.
(3)
Such judgment shall be enforceable, at the option of the municipality,
by means of an execution sale by the Sheriff, at which time the low-
and moderate-income unit of the violating owner shall be sold at a
sale price which is not less than the amount necessary to fully satisfy
and pay off any first purchase money mortgage and prior liens and
the costs of the enforcement proceedings incurred by the municipality,
including attorney's fees. The violating owner shall have the
right to possession terminated as well as the title conveyed pursuant
to the Sheriff's sale.
(4)
The proceeds of the Sheriff's sale shall first be applied
to satisfy the first purchase money mortgage lien and any prior liens
upon the low- and moderate-income unit. The excess, if any, shall
be applied to reimburse the municipality for any and all costs and
expenses incurred in connection with either the court action resulting
in the judgment of violation or the Sheriff's sale. In the event
that the proceeds from the Sheriff's sale are insufficient to
reimburse the municipality in full as aforesaid, the violating owner
shall be personally responsible for and to the extent of such deficiency,
in addition to any and all costs incurred by the municipality in connection
with collecting such deficiency. In the event that a surplus remains
after satisfying all of the above, such surplus, if any, shall be
placed in escrow by the municipality for the owner and shall be held
in such escrow for a maximum period of two years or until such earlier
time as the owner shall make a claim with the municipality for such.
Failure of the owner to claim such balance within the two-year period
shall automatically result in a forfeiture of such balance to the
municipality. Any interest accrued or earned on such balance while
being held in escrow shall belong to and shall be paid to the municipality,
whether such balance shall be paid to the owner or forfeited to the
municipality.
(5)
Foreclosure by the municipality due to violation of the regulations
governing affordable housing units shall not extinguish the restrictions
of the regulations governing affordable housing units as the same
apply to the low- and moderate-income unit. Title shall be conveyed
to the purchaser at the Sheriff's sale, subject to the restrictions
and provisions of the regulations governing the affordable housing
unit. The owner determined to be in violation of the provisions of
this plan and from whom title and possession were taken by means of
the Sheriff's sale shall not be entitled to any right of redemption.
(6)
If there are no bidders at the Sheriff's sale, or if insufficient
amounts are bid to satisfy the first purchase money mortgage and any
prior liens, the municipality may acquire title to the low- and moderate-income
unit by satisfying the first purchase money mortgage and any prior
liens and crediting the violating owner with an amount equal to the
difference between the first purchase money mortgage and any prior
liens and costs of the enforcement proceedings, including legal fees
and the maximum resale price for which the low- and moderate-income
unit could have been sold under the terms of the regulations governing
affordable housing units. This excess shall be treated in the same
manner as the excess which would have been realized from an actual
sale as previously described.
(7)
Failure of the low- and moderate-income unit to be either sold
at the Sheriff's sale or acquired by the municipality shall obligate
the owner to accept an offer to purchase from any qualified purchaser
which may be referred to the owner by the municipality, with such
offer to purchase being equal to the maximum resale price of the low-
and moderate-income unit as permitted by the regulations governing
affordable housing units.
(8)
The owner shall remain fully obligated, responsible and liable
for complying with the terms and restrictions of governing affordable
housing units until such time as title is conveyed from the owner.
A.
Any site plan or subdivision application that creates five or more
new dwelling units shall set-aside 15% of the new units in a rental
development, and 20% of the new units in a for-sale development, for
low- and moderate-income households consistent with the requirements
of this article. No property shall be subdivided so as to avoid compliance
with this requirement. Moreover, this provision governs municipal
actions and shall not entitle any property owner or developer to such
action by the Township.
