Monmouth Beach City Zoning Code
ARTICLE 30
10 Affordable Housing
30-10.1 Affordable housing obligation.
A.
This article is intended to assure that low- and moderate-income units ("affordable units") are created with controls on affordability and that low- and moderate-income households shall occupy these units. This article shall apply except where inconsistent with applicable law.
B.
The Borough of Monmouth Beach Planning Board has adopted a Housing Element and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1 et seq. The Fair Share Plan has been adopted by the Planning Board and endorsed by the governing body. The Fair Share Plan describes how the Borough of Monmouth Beach shall address its fair share for low- and moderate-income housing as documented in the Housing Element and outlined in the terms of the settlement agreement between the Borough and Fair Share Housing Center (FSHC).
C.
This article implements the Borough's Fair Share Plan, addresses the requirements of the Court and the terms of the settlement agreement, and also implements a Borough-wide requirement that all new multi-family residential development of five or more units shall have mandatory affordable housing set aside for low- and moderate-income units, subject to certain enumerated conditions.
D.
The Borough of Monmouth Beach shall track the status of the implementation of the Housing Element and Fair Share Plan. Any plan evaluation report of the Housing Element and Fair Share Plan shall be available to the public at the Municipal Building located 18 Willow Avenue, Monmouth Beach, 07750.
30-10.2 Definitions.
The following words and terms, when used in this article, shall have the meanings given in this section:
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.
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 structure that provides for-sale or rental dwelling units for low- and moderate-income households within a residential use, structure, supportive or special needs dwelling, or residential component of a mixed-use development in accordance with the requirements of the Borough of Monmouth Beach's affordable housing ordinances and Housing Element and Fair Share Plan.
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; 1) all the residents of the development where the unit is situated are 62 years or older; or 2) at least 80% of the units are occupied by one person that is 55 years or older; or 3) 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 New Jersey Council on Affordable Housing established under the Fair Housing Act of 1985.
New construction and additions, but does not include alterations, reconstruction, renovations, and repairs as those terms are defined under the State Uniform Construction Code promulgated pursuant to the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 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.
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.).
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.
Money paid for an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH rules and regulations pursuant to N.J.A.C. 5:93-8, Development Fees.
The assessed value of a property divided by the current State equalization ratio for the Borough. Estimates at the time of building permit may be obtained by the Borough Tax Assessor utilizing estimates for construction cost. Final equalized assessed value shall be determined at project completion by the Borough Assessor.
A development containing both affordable units and market rate units. Inclusionary developments that have five or more units must have a minimum of 20% set aside for affordable units if it is for sale and a minimum of 15% set aside for rentals. 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 determination issued by the Superior Court approving the Borough's affordable housing plan to satisfy its fair share obligation.
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 the Department.
A structure or building that encompasses two or more different land uses, which shall be a retail or commercial component and a residential component, whereby any commercial use must be on the ground floor of said building or structure and the upper levels of the structure shall be the residential component and shall provide low- and moderate-income units, for-sale or rental, in accordance with the requirements of the Borough of Monmouth Beach's affordable housing ordinances and Housing Element and Fair Share Plan.
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.
Any building or structure, or portion thereof, including but not limited to any appurtenant improvements, which is designated to a use group other than a residential use group according to the State Uniform Construction Code promulgated to effectuate the State Uniform Construction Code Act, P.L. 1975. c. (N.J.S.A. 52:27D-119 et seq.), including any subsequent amendments or revisions thereto;
Hotels, motels, vacation timeshares, and child-care facilities; and
The entirety of all continuing care facilities within a continuing care retirement community which is subject to the Continuing Care Retirement Community Regulation and Financial Disclosure Act, P.L. 1986, c. 103 (N.J.S.A. 52:27D-330 et seq.).
A process by which current 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 the Department's adopted regional income limits published annually by the Department.
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.
30-10.3 Affordable housing programs.
The Borough of Monmouth Beach will use the following mechanisms to satisfy its affordable housing obligations:
A.
Percentage of mandatory set asides for all future residential developments.
1.
If the Borough permits the construction of multifamily residential developments, the Borough shall require that an appropriate percentage of the residential units be set aside for low- and moderate-income households. This requirement shall apply beginning with the effective date of this article to any multifamily development, including the residential portion of a mixed-use development, which consists of five or more new residential units, whether permitted by a zoning amendment, a variance granted by the Borough's Planning or Zoning Board, or adoption of a redevelopment plan or amended redevelopment plan in areas in need of redevelopment or rehabilitation. For inclusionary projects in which the low and moderate units are to be offered for sale, the appropriate set-aside percentage is 20%; for projects in which the low- and moderate-income units are to be offered for rent, the appropriate set-aside percentage is 15%. 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.
2.
This requirement does 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 of five or more.
3.
Furthermore, this section shall not apply to developments containing four or fewer dwelling units. All subdivision and site plan approvals of qualifying residential developments shall be conditioned upon compliance with the provisions of this section. 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 more.
B.
Phasing. Inclusionary developments shall be subject to the following schedule, except where an alternate phasing schedule has been incorporated into a development or redevelopment agreement:
Minimum Percentage of Low- and Moderate-Income Units Completed | Maximum Percentage of Market-Rate Units Completed |
|---|---|
0 | 25 |
10 | 25 + 1 unit |
50 | 50 |
75 | 75 |
100 | 90 |
C.
Fractional Units. If 20% of the total number of units in a development results in a fraction or decimal, the developer shall be required to provide an additional affordable unit on site. Example: An eight-unit development requiring an affordable housing set-aside of 1.6 units is proposed. The developer is required to provide two on-site affordable units.
D.
Design. In inclusionary developments, to the extent possible, low- and moderate-income units shall be integrated with the market units.
E.
Off-site construction. The standards for constructing affordable units off-site shall be in accordance with the Borough's recommendations, provided that at least the same number of affordable units are provided, at least half of the affordable units are available to families, and not more than 25% are age-restricted, and the affordable units provided are otherwise consistent with the terms of the settlement agreement.
F.
Utilities. Affordable units shall utilize the same type of heating source as market units within the affordable development.
30-10.4 New construction.
The following general guidelines apply to all newly constructed developments that contain low- and moderate-income housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.
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.
2.
In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units. If there is only one affordable unit, it must be a low-income unit.
3.
The Borough Housing Element and Fair Share Plan requires that 13% of all affordable units approved or constructed since July 17, 2008, in the Borough shall be designated as very-low-income households at 30% of the median income, with at least 50% of all very-low-income units being available to families. While this requirement applies to the entirety of the Borough's affordable housing percentage and it may not be imposed on each project individually, its application to each project will be evaluated on a case-by-case basis and may be imposed as a requirement of a newly constructed development.
4.
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.
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;
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 Borough of Monmouth Beach 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'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, above, shall be used by the Borough of Monmouth Beach 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 Borough.
(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 where the funds shall be deposited into the affordable housing trust fund and appropriately earmarked.
(6)
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.
C.
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 regional income limits established by the New Jersey Department of Community Affairs (DCA) or other agency as required by the Court.
2.
The maximum rent for restricted rental units within each affordable development and the average rent for restricted low- and moderate-income units shall be calculated in accordance with UHAC regulations.
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.
4.
The maximum sales price of restricted ownership units within each affordable development shall be calculated in accordance with UHAC regulations, and each affordable development must achieve an affordability average which shall be calculated in accordance with UHAC regulations. 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 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 rents for compliance with the affordability average requirements for restricted units in assisted living facilities, 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 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.
10.
The rent of low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the United States. 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.
11.
Utilities. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall be consistent with the utility allowance approved by DCA for its Section 8 program.
30-10.5 Occupancy standards.
A.
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:
B.
Additional provisions related to occupancy standards (if any) shall be provided in the municipal Operating Manual.
30-10.6 Control periods for restricted ownership units and enforcement mechanisms.
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 article until the Borough of Monmouth Beach elects to release the unit from such requirements; however, and prior to such an election, 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, for at least 30 years.
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 Administrative Agent 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.
D.
At the time of the first sale of the unit, the purchaser shall execute and deliver to the Administrative Agent a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first nonexempt sale after the unit's release from the requirements of this article, 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 article 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 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.
G.
At the time of the first nonexempt sale following a thirty-year interval from the date of the issuance of the initial certificate of occupancy, the Borough shall have the right of first refusal to purchase a restricted ownership unit at the maximum restricted price in accordance with UHAC regulations at N.J.A.C. 5:80-26.5, If the Borough does not exercise its right to purchase the restricted unit, the unit may be sold at fair market value and the proceeds retained by the owner, subject to the owner's repayment of the recapture lien to the Borough as defined in N.J.A.C. 5:80-26.5.
30-10.7 Price restrictions for restricted ownership units, homeowner association fees and resale prices.
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 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.
30-10.8 Buyer income eligibility.
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 certified monthly income.
30-10.9 Limitations on indebtedness secured by ownership unit; subordination.
A.
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.
B.
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).
30-10.10 Control periods for restricted rental units.
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 article until the Borough of Monmouth Beach elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, and prior to such an election, 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, for at least 30 years.
B.
Deeds of all real property that includes 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 Ocean. A copy of the filed document shall be provided to the 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 article despite the occurrence of any of the following events:
30-10.11 Price restrictions for rental units; leases.
A.
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.
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 Administrative Agent.
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 Administrative Agent to be applied to the costs of administering the controls applicable to the unit as set forth in this article.
30-10.12 Tenant income eligibility.
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 median income.
2.
Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income.
3.
Moderate-income rental 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 rental unit when the household is a very-low-income, 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 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.
30-10.13 Affirmative marketing requirements.
A.
Affirmative marketing shall be established and maintained in accordance with the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26.
B.
The affirmative marketing plan shall be a part of the Fair Share Plan and shall be referenced by ordinance.
C.
The Borough of Monmouth Beach shall adopt by resolution an affirmative marketing plan, subject to approval of the Court, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
D.
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 Housing Region 4 and covers the period of deed restriction.
E.
The affirmative marketing plan shall provide a regional preference for all households that live and/or work in Housing Region 4.
F.
The Administrative Agent designated by the Borough of Monmouth Beach shall assure the affirmative marketing of all affordable units consistent with the affirmative marketing plan for the municipality.
G.
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.
H.
The affirmative marketing process for available affordable units shall begin at least four months prior to the expected date of occupancy.
I.
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 Borough.
30-10.14 Administration.
A.
The position of Municipal Housing Liaison (MHL) for the Borough of Monmouth Beach is established by this article. The Borough shall make the actual appointment of the MHL by means of a resolution.
1.
The MHL must be either a full-time or part-time employee of Monmouth Beach.
2.
The person appointed as the MHL must be reported to the Court and thereafter posted on the Borough's website.
3.
The MHL must meet all the requirements for qualifications, including initial and periodic training.
4.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Monmouth Beach, including the following responsibilities which may not be contracted out to the Administrative Agent:
a.
Serving as the municipality's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
b.
The implementation of the affirmative marketing plan and affordability controls.
c.
When applicable, supervising any contracting administrative agent.
d.
Monitoring the status of all restricted units in the Borough's Fair Share Plan;
e.
Compiling, verifying and submitting annual reports as required;
f.
Coordinating meetings with affordable housing providers and administrative agents, as applicable; and
g.
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Affordable Housing Professionals of New Jersey (AHPNJ).
B.
The Borough of Monmouth Beach shall designate by resolution of the Borough Committee, subject to the approval of the Court, one or more Administrative Agents to administer newly constructed affordable units in accordance with N.J.A.C. 5:91, N.J.A.C. 5:93 and UHAC.
C.
An operating manual shall be provided by the Administrative Agent(s) and shall be available for public inspection in the Office of the Municipal Clerk and in the office(s) of the Administrative Agent(s).
D.
Duties and responsibilities of Administrative Agent.
1.
The Administrative Agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC, including those set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes;
a.
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by the Affordable Housing Professionals of New Jersey (AHPNJ);
b.
Affirmative marketing;
c.
Household certification;
d.
Affordability controls;
e.
Records retention;
f.
Resale and re-rental;
g.
Processing requests from unit owners; and
h.
Enforcement, though the ultimate responsibility for retaining controls on the units rests with the municipality.
2.
The Administrative Agent shall have authority to take all actions necessary and appropriate to carry out its responsibilities hereunder.
E.
The Administrative Agent shall also implement the rehabilitation program, affordability assistance program, and any other affordable housing programs required within the spending plan and adopted Housing Plan Element and Fair Share Plan.
30-10.15 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, 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.
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 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 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:
a.
A fine of not more than $10,000 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;
b.
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 Borough of Monmouth Beach Affordable Housing Trust Fund of the gross amount of rent illegally collected;
c.
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.
2.
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.
C.
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.
D.
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.
E.
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.
F.
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.
G.
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.
H.
The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions governing affordable housing units until such time as title is conveyed from the owner.
30-10.16 Mandatory affordable housing development fees.
[Amended 9-19-2023 by Ord. No. O-08-23; 12-17-2024 by Ord. No. O-17-24]
A.
Purpose. The purpose of the mandatory affordable housing development fee regulations is to provide revenues with which to fund rehabilitation of housing units in Monmouth Beach occupied by low- and moderate-income households, to construct housing for low- and moderate-income families in the Borough and/or to fund other programs for low- and moderate-income housing in order for the Borough of Monmouth Beach to meets its responsibility for providing affordable housing pursuant to Mount Laurel II and the Fair Housing Act. The funds collected pursuant to this subsection shall be used exclusively for the production of low-and moderate-income housing and to offset municipal expenses in developing and administering the program(s) under which low-and moderate-income housing shall be produced to meet the fair share need to the Borough. No funds shall be expended except as permitted by N.J.A.C. 5:93-8.15 or other approval of the Court. The purpose of these provisions is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's rules as interpreted by the Court. This section shall be interpreted within the framework of COAH's rules on development fees as interpreted by the Court.
B.
Affordable housing development fees collected shall be used for the sole purpose of providing low- and moderate-income housing. In Holmdel Builder's Assn. v. Holmdel Borough, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and the State Constitution subject to the New Jersey Council on Affordable Housing development rules as interpreted by the Court.
C.
Affordable housing development fees shall be paid by all developers other than developers of exempt developments and affordable inclusionary housing developments and shall consist of monies paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules as interpreted by the Court.
D.
Fees based on equalized assessed value. Fees shall be based on the equalized assessed value which shall be the value of a property determined by the Borough Tax Assessor through a process designed to ensure that all property in the Borough is assessed at the same assessment ratio or ratios required by law. Estimates at the time of building permit may be obtained by the Tax Assessor utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the Borough Tax Assessor.
1.
Residential development.
a.
Residential fees. Within applicable residential zoning districts of the Borough of Monmouth Beach, developers shall pay a development fee of 1.5% of the equalized assessed value of any residential development provided no increase in density is permitted.
b.
Fee for "d" variance. If a variance is granted pursuant to N.J.S.A. 40:55D-70d ("d" variance) then the additional residential units realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6.0% rather than the development fee of 1.5%. However, if the zoning on a site has changed during the two-year period, the base density for the purposes of calculating the bonus development fee shall be the highest density permitted by right during the two years preceding the filing of the "d" variance application.
c.
Fifty percent of the development fee shall be collected by the Construction Office at the time of issuance of the building permit. The remaining portion shall be collected at the issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at the time of the issuance of the building permit and that determined at issuance of the certificate of occupancy.
2.
Nonresidential fees.
a.
Within applicable zoning districts of the Borough of Monmouth Beach, developers shall pay a fee of 2.5% of equalized assessed value for nonresidential development.
b.
If a "d" variance is granted, then the additional floor area ratio (FAR) realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6.0% rather than the development fee of 2.5%. However, if the rezoning on a site has changed during the two-year period, the base FAR for the purposes of calculating the bonus development fees shall be the highest permitted by right during the two years preceding the filing of the "d" variance application.
E.
Eligible exaction, ineligible exaction and exemptions.
1.
Development fees may be collected for the following types of development:
a.
New and existing commercial, office, industrial or other nonresidential structure that is expanded or undergoes a more intense use. The development fee that may be collected shall be calculated on the increase in the equalized assessed value of the improved structure.
b.
New residential structures and conversions of existing residential structures to increase the number of housing units within the structure.
2.
The Borough shall not reduce densities from pre-existing levels and then require developers to pay development fees in exchange for an increased density.
3.
Developments that have received preliminary or final approval prior to the imposition of a development fee shall be exempt from development fees unless the developer seeks a substantial change in the approval.
4.
Developers that convert any portion of an existing residential structure to a nonresidential use shall pay a development fee. The development fee shall be based on the increase in the equalized assessed value of the converted structure.
5.
The Borough exempts the following types of development from the imposition of development fees:
a.
Nonprofit organizations which have received tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code, providing current evidence of that status is submitted to the Borough Clerk, together with a certification that services of the organization are provided at reduced rates to those who establish an inability to pay existing charges.
b.
Federal, State, County and local governments.
c.
Public utilities under the jurisdiction of the New Jersey Board of Public Utilities to the extent that the construction for which approval is sought is of a facility which shall house equipment only and not to be occupied by any employees.
d.
Developers of low and moderate income housing units provided that the required minimum percentage of residential units in the development are affordable units in accordance with applicable COAH regulations establishing minimum set-asides for low and moderate sales and rental housing.
e.
Where affordable housing units are required to be constructed and where the developer has been authorized to pay a development fee in lieu of building the affordable housing units, developers shall pay a fee equal to the cost of subsidizing the affordable housing units that are not built.
f.
Public uses.
g.
Public uses including public educational and cultural facilities and outdoor and indoor recreational facilities.
h.
Residential and nonresidential construction permits. A residential construction permit which involves construction costs of $50,000 or less and nonresidential construction permits which involve construction costs of $20,000 or less shall be exempt from paying development fees.
i.
New residential construction to replace a residential structure destroyed by fire or natural hazards, provided that said construction does not increase the floor area or density of the previously existing structure. If an increase in floor area or density is proposed, development fees shall be calculated in accordance with § 30-10.16D(1) above.
j.
New nonresidential construction to replace a nonresidential structure destroyed by fire or natural hazards, provided that said construction does not increase the floor area or development intensity of the previously existing structure. If an increase in floor area or development intensity is proposed, development fees shall be calculated in accordance with Subsection 30-10.16D2 above.
k.
Exemptions as listed in N.J.S.A. 40:55D-8.4.
30-10.17 Use of funds.
The Borough shall use revenues collected in the affordable housing trust fund in accordance with N.J.A.C. 5:93-8.16.
30-10.18 Monitoring and reporting requirements.
The Borough shall submit a monitoring report to the Court as set forth in its settlement agreement with Fair Share Housing Center.
30-10.19 Spending plan.
The Borough shall submit to the Court a spending plan for the development fees collected by it prior to the expiration of its judgment of compliance. Plans to spend development fees shall consist of the following information:
A.
A projection of revenues anticipated from imposing fees on development, based on historic activity;
B.
A description of the administrative mechanism that the Borough will use to collect and distribute revenues;
C.
A description of the anticipated use of all development fees pursuant to N.J.A.C. 5:93-8.16;
D.
A schedule for the expenditure of all development fees and payments in lieu of constructing affordable housing units on site;
E.
A schedule for the creation or rehabilitation of housing units;
F.
In the event the Borough envisions being responsible for public sector or nonprofit construction of housing, a pro-forma statement of the anticipated costs and revenues associated with the development; and
G.
The manner through which the Borough will address any expected or unexpected shortfall if the anticipated revenues from development fees are not sufficient to implement the plan.
30-10.20 Affordable Housing Overlay Zone.
A.
Purpose. The purpose of the Affordable Housing Overlay Zone is to provide an opportunity to develop affordable housing to meet present and prospective housing needs, with particular attention to low- and moderate-income housing, in conformance with the requirements of the Uniform Housing Affordability Controls (UHAC, N.J.A.C. 5:80-26.1 et seq.) and applicable rules governing the development of affordable housing as established by the Court or other appropriate entity. The sites herein are included in the Housing Element and Fair Share Plan of the Borough of Monmouth Beach and are intended to address the Borough's fair share obligation. Permitted and conditional uses within the designated overlay zone shall include all permitted and conditional uses in the underlying zoning district in which the overlay zone is located. In addition, this overlay zone establishes mixed-use affordable housing development as a permitted use in accordance with the provisions of this section.
B.
The following parcels or tracts are designated as part of the Affordable Housing Overlay Zone:
Block | Lots | Location |
|---|---|---|
26 | 32.01-32.07 | 27 Beach Road |
33 | 29 Beach Road | |
27 | 19 | 37 Beach Road |
20.01 | 35 Beach Road | |
21.01 | 33 Beach Road | |
45 | 26 | 2 Willow Avenue |
29 | 30 Beach Road | |
30 | 32 Beach Road | |
31 | 34 Beach Road | |
32 | 36 Beach Road | |
33 | 73 Riverdale Avenue | |
34 | 69 Riverdale Avenue | |
35 | 65 Riverdale Avenue | |
36 | 63 Riverdale Avenue | |
37 | Riverdale Avenue | |
38 | 59 Riverdale Avenue |
C.
Principal permitted uses.
1.
All uses permitted within the zoning district in which the overlay zone is located.
2.
Inclusionary affordable housing development for sale or rental housing as part of a mixed-use development containing ground floor commercial space. Residential use is not permitted on the ground floor. The bedroom mix of affordable units shall be subject to the required bedroom mix of the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1 et seq. (UHAC). A minimum of one affordable housing unit shall be required to be located within any mixed-use commercial/residential development.
D.
Permitted accessory uses.
E.
Area. yard and building requirements. The requirements for mixed-use inclusionary development in the Affordable Housing Overlay Zone shall be as follows:
1.
Minimum lot area: 9,000 square feet.
2.
Minimum lot width: 100 feet.
3.
Minimum lot depth: 100 feet.
4.
Minimum front setback: 25 feet, except that no building shall be nearer the street than the average alignment of existing buildings within 200 feet of each side of the lot and within the same block.
5.
Minimum rear setback: 30 feet.
6.
Minimum side setback: 10 feet.
8.
Maximum building height: three stories/35 feet.
9.
Maximum accessory building height: 18 feet, but not more than one story.
F.
Off-street parking shall be required in accordance with Section 30-8.21. No parking is permitted in the front yard area.
G.
Affordable housing requirements. All affordable housing developments shall provide a minimum of 20% affordable housing units for low- and moderate-income households in for-sale developments, and a minimum of 15% affordable housing units for low- and moderate-income households in rental developments, in conformance with the requirements of the Uniform Housing Affordability Controls (UHAC, N.J.A.C. 5:80-26.1 et seq.), with the exception that in lieu of 10% of affordable units in rental projects being required to be at 35% of median income, 13% of affordable units in such projects shall be required to be at 30% of median income, and all other applicable law including but not limited to phasing requirements contained in N.J.A.C. 5:93.
H.
In every mixed-use building, each market rate residential unit shall adhere to the following minimum floor area requirements: one-bedroom apartments shall be a minimum of 850 square feet. Each additional bedroom shall have a minimum floor area of 150 square feet.
I.
Every residential unit shall be so designed that each apartment within the building shall be provided with not less than two exterior exposures for each dwelling unit, the same being properly pierced by windows in order to provide either through or corner ventilation.