This chapter sets forth regulations for designated low- and moderate-income housing units created within the borough of Califon. The regulations are intended to be consistent with the provisions of N.J.A.C. 5:93 et seq., effective June 6, 1994, as amended, with the Fair Housing Act of 1985, as amended, and with the borough's constitutional obligation to provide for its fair share of low- and moderate-income housing needs. The regulations contained herein are intended to apply to all affordable housing units created within the borough of Califon, including units created through municipal or municipally sponsored nonprofit construction, rentals or rerentals of rehabilitated units, accessory apartments and alternative living arrangements.

(Ord. 2002-07 § 901)

A.

Consistent with the requirement of N.J.A.C. 5:93-2.20, at least half of all low- and moderate-income housing units created in the municipality shall be affordable to low-income households; the balance may be affordable to either low- or moderate-income households.

B.

Except for inclusionary developments constructed pursuant to low income tax credit regulations, at least half of all rental units created shall be affordable to low-income households; the balance may be affordable to either low- or moderate-income households.

C.

Except for inclusionary developments constructed pursuant to low income tax credit regulations, at least one-third of all units in each bedroom distribution shall be affordable to low-income households, pursuant to N.J.A.C. 5:93-7.3; the balance may be affordable to either low- or moderate-income households.

(Ord. 2002-07 § 902)

A.

Inclusionary developments that are not age restricted for senior citizens and are not otherwise exempt from bedroom distribution requirements shall be structured in conjunction with realistic market demands so that:

1.

The combination of efficiency and one-bedroom units is at least ten (10) percent and no greater than twenty (20) percent of the total low- and moderate-income units;

2.

At least thirty (30) percent of all low- and moderate-income units are two-bedroom units; and

3.

At least twenty (20) percent of all low- and moderate-income units are three-bedroom units.

B.

Low- and moderate-income units that are age restricted for senior citizens may utilize a modified bedroom distribution, such that the total number of bedrooms provided shall equal the number of age-restricted low- and moderate-income units within the inclusionary development.

(Ord. 2002-07 § 903)

All of the following criteria shall be met in determining the maximum rents and sales prices charged for the affordable units:

A.

Efficiency units shall be affordable to one person households;

B.

One-bedroom units shall be affordable to 1.5 person households;

C.

Two-bedroom units shall be affordable to three person households;

D.

Three-bedroom units shall be affordable to 4.5 person households;

E.

Median income by household size shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD, per N.J.A.C. 5:93-7.4(b);

F.

The maximum sales price for any of the low- and moderate-income units within an inclusionary development shall be affordable to a household earning no more than seventy (70) percent of median income, and the average sales price of all of the low- and moderate-income units within an inclusionary development shall be affordable to a household earning no more than fifty-five (55) percent of median income;

G.

The maximum rent for any of the low- and moderate-income units within an inclusionary development shall be affordable to a household earning no more than sixty (60) percent of median income, and the average rent of all of the low- and moderate-income units within an inclusionary development shall be affordable to a household earning no more than fifty-two (52) percent of median income;

H.

Low-income units shall be reserved for households having a gross household income of less than or equal to fifty (50) percent of the median income approved by COAH; moderate-income units shall be reserved for households having a gross household income of less than or equal to eighty (80) percent of the median income approved by COAH, per N.J.A.C. 5:93-7.4(g);

I.

The regulations outlined in N.J.A.C. 5:93-9.15 and 5:93-9.16 shall be applicable to all designated low- and moderate-income housing units, whether for sale or for rent;

J.

For rental units:

1.

In achieving the average affordability range set forth in subsection G of this section, one rent may be established for a low-income unit and one rent for a moderate-income unit for each bedroom distribution,

2.

Gross rents, including an allowance for tenant-paid utilities, shall be established so as not to exceed thirty (30) percent of the maximum gross monthly income for the appropriate household size, per N.J.A.C. 5:93-7.4(f). The tenant-paid utility allowance shall be consistent with the currently applicable utility allowance approved by HUD for use in New Jersey;

K.

For sales units:

1.

In achieving the average affordability range set forth in subsection F of this section, moderate-income sales units shall be available for at least two different sales prices and low-income sales units shall be available for at least two different sales prices for each bedroom distribution,

2.

The initial price of a low- or moderate-income sales unit shall be established so that after a down payment of five percent, the monthly principal, interest, homeowner's insurance, private mortgage insurance and property taxes (based on the restricted value of the low- or moderate-income unit) and condominium or homeowner's association fees do not exceed twenty-eight (28) percent of the eligible gross monthly income,

3.

Master deeds of inclusionary developments shall require condominium or homeowner's association fees or special assessments charged to a low- or moderate-income unit to be one hundred (100) percent of the fees or assessments charged to a market unit, as provided at N.J.A.C. 5:93-7.4(e). Once established within the master deed, the one hundred (100) percent requirement shall not be amended without prior approval from COAH,

4.

The borough of Califon shall follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy on sales units, per N.J.A.C. 5:93-9.3,

5.

The borough of Califon shall require a certificate of reoccupancy for any occupancy of a low- or moderate-income sales unit resulting from a resale, per N.J.A.C. 5:93-9.3(c),

6.

Municipal, state, nonprofit and seller options regarding sales units shall be consistent with N.J.A.C. 5:93-9.5—9.8. Municipal rejection of repayment options for sales units shall be consistent with N.J.A.C. 5:93-9.9,

7.

The continued application of options to create, rehabilitate or maintain low- and moderate-income sales units shall be consistent with N.J.A.C. 5:93-9.10,

8.

Eligible capital improvements prior to the expiration of controls on sales units shall be consistent with N.J.A.C. 5:93-9.11,

9.

The regulations detailed in N.J.A.C. 5:93-9.12—9.14 shall be applicable to all low- and moderate-income sales units.

(Ord. 2002-07 § 904)

This section is applicable only to inclusionary developments in which market-priced housing is proposed along with affordable housing units.

A.

If market-priced housing units are proposed as part of an inclusionary development, then the low- and moderate-income units shall be completed during the course of the construction of the market units in accordance with the following phasing schedule:

B.

Inclusionary developments are encouraged to be designed to integrate the low- and moderate-income units with the market units, per N.J.A.C. 5:93-5.6(f).

C.

For both owner-occupied (sales) and rental units, the low- and moderate-income units shall utilize the same heating source as the market units.

(Ord. 2002-07 § 905)

A.

To provide assurances that low- and moderate-income housing units are created with controls on affordability over time and that low- and moderate-income households will occupy and continue to occupy the designated affordable units, the borough of Califon will contract with the Hunterdon County Housing Corporation (HCHC) to act as the housing administrator responsible for ensuring the continued affordability of such units over time. The HCHC shall be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a) and the following:

1.

The HCHC will be responsible for utilizing the verification and certification procedures outlined in N.J.A.C. 5:93-9.1(b) in placing households in designated low- and moderate-income units;

2.

The HCHC will ensure that newly constructed low- and moderate-income housing units, whether for sale or rental, remain affordable to and occupied by qualified low- and moderate-income households for at least thirty (30) years or for such other time period, shorter than thirty (30) years, as may be expressly permitted herein;

3.

The HCHC will require all conveyances of newly constructed affordable sales units to contain the deed restriction and mortgage lien adopted by COAH as Technical Appendix E to N.J.A.C. 5:93 and will require the deed restriction and lien and deed of easement adopted by COAH as Technical Appendix H to N.J.A.C. 5:93 for all newly constructed affordable rental units.

4.

The borough of Califon shall amend its contract with HCHC to include the administration of the controls on affordability for any unanticipated affordable housing units that are not covered by the initial contract, and the units shall be covered by the controls on affordability outlined herein.

B.

In the event affordable housing units are created through the conversion of a nonresidential structure to residential use, such units shall be treated as new affordable units and shall be subject to the thirty (30) year controls on affordability described in subsection A of this section.

C.

Rehabilitated owner-occupied single-family housing units that are improved to code standard shall be subject to a lien and affordability controls for at least six years.

D.

Rehabilitated renter-occupied housing units that are unproved to code standard shall be subject to a lien and affordability controls for at least ten (10) years.

E.

Alternative living arrangements that provide affordable housing shall be controlled in a manner approved by COAH to ensure that such facility will house low- and moderate-income households for a period of at least thirty (30) years, so that the units will be eligible for rental bonus credits for the alternative living arrangement pursuant to N.J.A.C. 5:93-5.15, which requires that the controls on affordability shall extend for thirty (30) years, per N.J.A.C. 5:93-5.8.

F.

Accessory apartments established to provide affordable housing shall be subject to a lien and affordability controls for a period of at least ten (10) years, per N.J.A.C. 5:93-5.9(e).

(Ord. 2002-07 § 906)

The borough of Califon shall comply with Section 14(b) of the Fair Housing Act (N.J.S.A. 52:27D-301 et seq.), which requires the elimination of unnecessary cost-generating features and development standards that are not essential for the protection of the public welfare in relation to inclusionary developments and also requires expedited or fast track reviews and approvals/denials of inclusionary developments. The borough of Califon shall adhere to the requirements of N.J.A.C. 5:93-10.1—10.3 with respect to inclusionary developments.

(Ord. 2002-07 § 907)

All newly created low- and moderate-income units shall be marketed in accordance with the borough's adopted affirmative marketing plan, which is appended to the ordinance codified in this chapter, or in accordance with other procedures established by the HCHC and approved by COAH.

(Ord. 2002-07 § 908)

The borough of Califon has a fair share obligation of twenty-six (26) units of which twenty-one (21) units are to be provided through new construction. This chapter shall apply to the developments listed below and to any other developments containing affordable housing that may occur in the future:

(Ord. 2002-07 § 909)