Cranford City Zoning Code
ARTICLE VIII
Affordable Housing Regulations
[Amended 6-13-2017 by Ord. No. 2017-06; 9-12-2017 by Ord. No. 2017-10; 10-24-2017 by Ord. No. 2017-12; 9-8-2020 by Ord. No. 2020-11; 3-10-2026 by Ord. No. 2026-07]
§ 255-66 Purpose and applicability.
A.
This article of the Code sets forth regulations regarding the very-low-, low- and moderate-income housing units in the Township of Cranford consistent with the provisions outlined in P.L. 2024. Chapter 2, including the amended Fair Housing Act (FHA) at N.J.S.A. 52:27D-301 et seq., as well as the Department of Community Affairs, Division of Local Planning Services (LPS) at N.J.A.C. 5:99 et seq., statutorily upheld existing regulations of the now-defunct Council on Affordable Housing (COAH) at N.J.A.C. 5:93 and 5:97,[1] the Uniform Housing Affordability Controls (UHAC) at N.J.A.C. 5:80-26.1 et seq., and as reflected in the adopted Municipal Fourth Round Housing Element and Fair Share Plan (HEFSP).
[1]
Editor's Note: N.J.A.C. 5:93 and 5:97 expired on 10-16-2016 and 6-2-2015, respectively.
B.
This article is intended to ensure that very-low-, low- and moderate-income units ("affordable units") are created with controls on affordability over time and that very-low-, low- and moderate-income households shall occupy these units pursuant to statutory requirements. This article shall apply to all inclusionary developments, individual affordable units, and 100% affordable housing developments except where inconsistent with applicable law. Low-Income Housing Tax Credit financed developments shall adhere to the Uniform Housing Affordability Controls.
C.
The Cranford Planning Board has adopted a HEFSP pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1 et seq. The Fair Share Plan describes the ways the municipality shall address its fair share of very-low-, low- and moderate-income housing as approved by the Superior Court and documented in the Housing Element.
D.
This article implements and incorporates the relevant provisions of the HEFSP and addresses the requirements of P.L. 2024, Chapter 2, the FHA, N.J.A.C. 5:99, NJ Supreme Court upheld COAH regulations at N.J.A.C. 5:93 and 5:97, and UHAC at N.J.A.C. 5:80-26.1. as may be amended and supplemented.
E.
Applicability.
(1)
Nothing hereinto shall be interpreted to deprive the Township of any rights, including the right to seek approval of any waivers permitted under UHAC or other relevant sources of law.
(2)
The provisions of this article shall apply to all affordable housing developments and affordable housing units that currently exist and that are proposed to be created pursuant to the municipality's most recently adopted HEFSP.
(3)
This article shall apply to all developments that contain very-low-, low- and moderate-income housing units included in the Municipal HEFSP, including any unanticipated future developments that will provide very-low-, low- and moderate-income housing units.
(4)
Projects receiving Federal Low Income Housing Tax Credit financing and are proposed for credit shall comply with the low/moderate split and bedroom distribution requirements, maximum initial rents and sales prices requirements, affirmative fair marketing requirements of UHAC at N.J.A.C. 5:80-26.16 and the length of the affordability controls applicable to such projects shall be not less than a thirty-year compliance period plus a fifteen-year extended-use period, for a total of not less than 45 years.
§ 255-67 Monitoring and reporting requirements.
A.
The municipality 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:
(1)
The municipality shall provide electronic monitoring data to the New Jersey Department of Community Affairs pursuant to P.L. 2024, Chapter 2 and N.J.A.C. 5:99 through the Affordable Housing Monitoring System (AHMS).
(2)
On or before February 15 of each year, the municipality shall provide annual reporting of its municipal Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs on the AHMS portal. The reporting shall include an accounting of all municipal Affordable Housing Trust Fund activity, including the sources and amounts of funds collected and the amounts and purposes for which any funds have been expended, for the previous year from January 1 to December 31.
(3)
On or before February 15 of each year, the annual reporting of the status of all affordable housing activity shall be provided to the New Jersey Department of Community Affairs on the AHMS portal, for the previous year from January 1 to December 31.
§ 255-68 Township-wide set-aside.
A.
Purpose and scope. This section establishes regulations to ensure that any site that benefits from a rezoning, variance or redevelopment plan approved by the Township, the Township's Planning Board, or the Township's Zoning Board of Adjustment that results in multifamily residential development of five dwelling units or more produces affordable housing at a set-aside rate of 20% regardless of tenure, in accordance with the Township's Third Round Housing Element and Fair Share Plan, consistent with the terms of the Settlement Agreement reached with Fair Share Housing Center (FSHC) regarding compliance with the Township's affordable housing obligations. This section will not apply to the Township's Overlay Zones, as said zones already have affordable housing set-aside requirements:
(1)
Downtown Core District Overlay Zone.
(2)
Downtown Business District Overlay Zone.
(3)
Downtown Transitional District Overlay Zone.
(4)
Park Street Overlay Zone.
B.
Affordable housing mandatory set-aside requirement.
(1)
If the Township or the Township's Planning Board or Zoning Board of Adjustment permits the construction of multifamily or single-family attached residential development that is "approvable" and "developable," as defined at N.J.A.C. 5:93-1.3, the Township or the Township's Planning Board or Zoning Board shall require that an appropriate percentage of the residential units be set aside for low- and moderate-income households.
(2)
This requirement shall apply beginning with the effective date the ordinance creating this section was adopted (March 30, 2021) to any multifamily or single-family attached residential development, including the residential portion of a mixed-use project, which consists of five or more new residential units, whether permitted by a zoning amendment, a variance granted by the Township's Planning Board or Zoning Board, or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation.
(3)
Nothing in this section precludes the Township, the Township's Planning Board, or the Township's Zoning Board from imposing an affordable housing set-aside in a development not required to have a set-aside pursuant to this subsection consistent with N.J.S.A. 52:27D-311(h) and other applicable law.
(4)
For all inclusionary projects, the appropriate set-aside percentage will be a minimum of 20% for all projects regardless of tenure.
(5)
This requirement does not create any entitlement for a property owner or applicant for a zoning amendment, variance, or adoption of a redevelopment plan or amended redevelopment 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 otherwise identified in the Township's Settlement Agreement with FSHC, which was executed by the Township on November 8, 2019, or in the Township's 2020 Housing Element and Fair Share Plan, for which density and set-aside standards shall be governed by the specific standards set forth therein. As such, this section will not apply to the Township's Overlay Zones set forth in § 255-68A, as said zone already has affordable housing set-aside requirements.
(7)
Furthermore, this section shall not apply to developments containing four or less dwelling units.
(8)
All subdivision and site plan approvals of qualifying residential developments shall be conditioned upon compliance with the provisions of this section.
(9)
Where a developer demolishes existing dwelling units and builds new dwelling units on the same site, the provisions of this section shall apply if the net number of new dwelling units is five or more.
(10)
All inclusionary projects created under this section must comply with the affordable housing requirements in Article VIII "Affordable Housing Regulations."
§ 255-69 Fractional units and subsidy payments.
Inclusionary development that results in an affordable housing obligation that is fractional shall round up and provide the additional affordable unit.
§ 255-70 Affordable housing programs.
A.
Pursuant to amended UHAC regulations at N.J.A.C. 5:80-26.1 et seq., and, in addition, pursuant to P.L. 2024, c. 2, and specifically to the amended FHA at N.J.S.A. 52:27D-311.m. "All parties shall be entitled to rely upon regulations on municipal credits, adjustments, and compliance mechanisms adopted by the Council on Affordable Housing unless those regulations are contradicted by statute, including but not limited to P.L. 2024. c. 2. or binding court decisions."
B.
All affordable housing units created within the Township of Cranford shall comply with the version of N.J.A.C. 5:80-26.1 et seq, in effect at the time of application or zoning approval.
§ 255-71 Municipal housing liaison.
A.
The Township of Cranford shall appoint a specific municipal employee to serve as a Municipal Housing Liaison responsible for administering the affordable housing program, including affordability controls, the Affirmative Marketing Plan, monitoring and reporting, and, where applicable, supervising any contracted Administrative Agent. The Municipal Housing Liaison shall be appointed by the governing body and may be a full or part time municipal employee.
B.
The Municipal Housing Liaison's responsibilities can be found in N.J.A.C. 5:99.
§ 255-72 Administrative agent.
A.
All municipalities that have created or will create affordable housing programs and/or affordable units shall designate or approve, for each project within its HEFSP, an administrative agent to administer the affordable housing program and/or affordable housing units in accordance with the requirements of the FHA, NJAC 5:99-1 et seq., and UHAC.
B.
The fees for administrative agents shall be paid as follows:
(1)
Administrative agent fees related to rental units shall be paid by the developer/owner.
(2)
Administrative agent fees related to initial sale of units shall be paid by the developer.
(3)
Administrative agent fees related to resales shall be paid by the seller of the affordable home.
(4)
Administrative agent fees related to ongoing administration and enforcement shall be paid by the municipality.
C.
The Administrative Agent's responsibilities can be found in N.J.A.C. 5:99.
§ 255-73 Enforcement of affordable housing regulations.
A.
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, a requirement for household recertification, acceleration of all sums due under a mortgage, recuperation of any funds from a sale in violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
B.
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(s) against the owner, developer or tenant for any violation that remains uncured for a period of 60 days after service of the written notice:
(1)
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 adjudged 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:
(a)
A fine of not more than $2,000 per day or imprisonment for a period not to exceed 90 days, or both, provided that each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not a continuation of the initial offense. In the case of an owner who has rented a low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Township of Cranford Affordable Housing Trust Fund of the gross amount of rent illegally collected.
(b)
In the case of an owner who has rented a 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.
(2)
The Township may file a court action in the Superior Court seeking a judgment that would result in the termination of the owner's equity or other interest in the unit, in the nature of a mortgage foreclosure. Any such 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- or moderate-income unit:
(a)
The 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 his right to possession terminated as well as his title conveyed pursuant to the Sheriff's sale.
(b)
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 the full 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.
(c)
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.
(d)
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.
(e)
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.
(f)
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.
C.
A fine pursuant to Subsection B(1)(a) above shall not be issued unless the Municipal Housing Liaison first provides the owner with written notice no less than two months prior to the date the fine is levied. A fine shall only be issued if the offense has not been cured within that two-month timeframe.
§ 255-74 Appeals.
Appeals from all decisions of an administrative agent appointed pursuant to this article must be filed, in writing, with the Municipal Housing Liaison. A decision by the Municipal Housing Liaison may be appealed to the Division of Local Planning Services within the Department of Community Affairs. A written decision of the Division Director upholding, modifying, or reversing an administrative agent's decision is a final administrative action.
