[Adopted 3-12-2003 by Ord. No. 2003-6]
A.
A Write-Down/Buy-Down Program shall be a part of the
Township’s housing element consistent with N.J.A.C. 5:93-5.11.
The purpose of the program is to write-down or buy-down the cost of
previously owned market rate units and offer them in sound condition
at affordable prices to low- and moderate-income households. The Township
utilizing this program shall:
(1)
Propose one unit which is less than 25% of the Township’s
net inclusionary or new construction component and which is no more
than the number of units set forth for such program in the housing
element of the Township’s Master Plan.
(2)
Demonstrate that there are sufficient for-sale market
rate units within the Township on the multiple listing service for
a viable program.
(3)
Provide at least $20,000 per unit to subsidize the
cost of the buy-down unit.
(4)
Ensure that the sales price shall conform to the standards
in N.J.A.C. 5:93-7.4.
(5)
Demonstrate that the COAH mandated range of affordability
will be accommodated elsewhere in the housing plan. The sale price
shall be based on the number of bedrooms in accordance with N.J.A.C.
5:93-7.4.
(6)
Demonstrate that the program and the buy-down unit
will be affirmatively marketed in accordance with N.J.A.C. 5:93-11.
(7)
Be exempt from bedroom mix requirements pursuant to
N.J.A.C. 5:93-7.3.
(8)
Place the thirty-year deed restriction and mortgage
lien on the unit as per Technical Appendix E, N.J.A.C. 5:93.
(9)
Designate an administrative agency that will:
(a)
Maintain an up-to-date inventory of units that
meet the requirement of a buy-down program;
(b)
Qualify and place an income eligible household
in the moderate income unit upon initial occupancy;
(c)
Place an income eligible household in the moderate
income unit as one becomes available during the thirty-year term of
affordability controls;
(d)
Enforce the terms of the deed restriction and
mortgage lien;
(e)
Set up a separate interest-bearing escrow account
for the buy-down funds; and
(f)
Sponsor a home ownership counseling program
and post purchase session for the prospective purchaser.
B.
The Council on Affordable Housing shall assess the
municipality’s write-down/buy-down program at the end of a two-year
period from date of substantive certification and the Township shall
prepare a plan to address any unmet units at that time.
