Oldmans Township City Zoning Code
ARTICLE X
Affordable Housing Procedures
§ 110-67 Purpose.
This article of Chapter 110 is designed to implement the Township's adopted Housing Element and Fair Share Plan for low- and moderate-income housing units in the Township consistent with the New Jersey Fair Housing Act ("Act"), N.J.S.A. 52:27D-301 et seq., extant regulations of the New Jersey Council on Affordable Housing ("COAH"), N.J.A.C. 5:93[1] et seq., the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq., except where modified by the requirements for very-low-income housing as established in N.J.S.A. 52:27D-329.1, and judicial decisions. This article is designed to ensure that affordable housing created under the Fair Housing Act is occupied by low- and moderate-income households for the appropriate period of time. This article provides rules for the establishment and administration of affordability controls on each restricted dwelling unit for which the Township receives credit.
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired 10-16-2016.
§ 110-68 General provisions.
A.
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 within the Township of Oldmans pursuant to the Township's most recently adopted Housing Element and Fair Share Plan. All developers providing affordable housing units as part of any new development in the Township shall provide those affordable housing units in accordance with this article. All development that falls within the time period of the present round of affordable housing obligation shall construct affordable units or pay a development fee in accordance with § 110-66.
B.
Moreover, this provision of this article shall apply to all developments that contain low- and moderate-income housing units, including any currently unanticipated future developments that will provide very-low-, low- and moderate-income housing units. All restricted units, including those funded with federal low-income housing tax credits or other subsidy programs, shall include the required bedroom distribution and income distribution, shall be subject to affordability controls, and shall be affirmatively marketed in accordance with UHAC, with the exception that instead of 10% of all rental affordable units being affordable to households earning 35% or less of the regional median household income by household size, 13% of all rental affordable units shall be affordable to households earning 30% or less of the regional median household income by household size, and all other applicable law.
C.
All new construction units shall be adaptable in conformance with N.J.S.A. 52:27D-311a and 52:27D-311b and all other applicable law.
§ 110-69 Township Administrative Agent and other Administrative Agents.
A.
The Township Committee shall appoint a Township Administrative Agent to monitor sales and resales of affordable housing units pursuant to N.J.A.C. 5:80-26.14. The Administrative Agent of the municipality may also be the Municipal Housing Liaison, but is not required to be.
B.
The Township Administrative Agent shall monitor the designated Administrative Agent of the developer in the initial sales and rental transactions for low- and moderate-income dwellings in accordance with N.J.A.C. 5:80-26.14, as it may be amended or superseded. The developer's administrative agent shall have all of responsibilities as put forth in this rule. After the initial sales and rental transactions, the Township Administrative Agent shall monitor the activities of the developer's or owner's Administrative Agent for any resales or re-rentals. If the person is the Township's Administrative Agent, then he or she shall assume all of the duties and responsibilities set forth in N.J.A.C. 5:80-26.14 following the initial renting, sales and occupancy of low- and moderate-income dwellings. The affordability controls set forth in this article shall be administered and enforced by the Administrative Agent regardless of association. The primary responsibility of the Administrative Agent shall be to ensure that the restricted units are sold or rented, as applicable, only to low- and moderate-income households in accordance with the Fair Housing Act.
C.
The Administrative Agent, whether the Township's representative, developer's agent, or a delegated agent, shall have the responsibility to income-qualify low- and moderate-income households, to place income-eligible households in low- and moderate-income units upon initial occupancy, to provide for the initial occupancy of low- and moderate-income units with income-qualified households, to continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls, to assist with advertising and outreach to low- and moderate-income households, and to enforce the terms of the deed restriction and mortgage loan. All Administrative Agents shall provide counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements and landlord/tenant law.
D.
The Municipal Housing Liaison shall supervise the work of the Township and any contracted Administrative Agent(s) and shall coordinate the contracted agents' activities with the Township Administrative Agent to ensure the accurate tracking of the progress of the occupancy of affordable housing in the municipality, answer inquiries regarding affordable housing from the public or direct same to the appropriate official or agency, and comply with the affordable housing monitoring and reporting requirements of the state.
E.
The Township Committee may establish a reasonable fee to program participants for the administration of the affordability controls program. The fees of the Administrative Agent shall be paid by the owners of the affordable units for which the services of the Administrative Agent are required.
F.
In order to ensure an orderly transfer of control responsibility from a municipality to an Administrative Agent, from one Administrative Agent to another Administrative Agent, or other transfer, the requirements as set forth in N.J.A.C. 5:80-26.17 shall apply as are necessary before or during the transition. The Administrative Agent's enforcement responsibility for implementing such practices and procedures shall not be delegated or otherwise transferred to any other party, except to a successor Administrative Agent.
G.
By accepting state funds for affordable housing purposes, or by submitting to the jurisdiction of the Court, the Township of Oldmans shall be deemed to have delegated to the Administrative Agent the day-to-day responsibility for implementing practices and procedures designated to ensure effective compliance with the controls set forth in this article. The governing body of the municipality, however, shall retain the ultimate responsibility for ensuring effective compliance with the requirements as set forth in UHAC and any settlement agreements pertaining to affordable housing matters.
H.
The Township Administrative Agent shall keep records of the affirmative marketing activities undertaken in accordance with the Affirmative Marketing Plan established by any developer's Administrative Agent. The records shall include, but not be limited to, the following:
(1)
Electronic reporting of affordable housing activity; any required paper forms.
(2)
Copies of any press releases, brochures, flyers, print advertisements and application forms used in the affirmative marketing program.
(3)
The income and demographic characteristics of each household applying for and occupying income-restricted housing.
(4)
An evaluation of any necessary adjustments required to the affirmative marketing program as communicated by the Administrative Agent.
I.
An operating manual for each affordable housing program shall be provided by the Township Administrative Agent or developer's Administrative Agent and approved by the Municipal Housing Liaison prior to being placed into use. Such operating manual shall be a public record.
J.
The Administrative Agent(s) 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, 5:80-26.16 and 5:80-26.18.
K.
Records retention.
L.
Resales and re-rentals.
(1)
Instituting and maintaining an effective means of communicating information between owners and the Administrative Agent regarding the availability of restricted units for resale or re-rental.
(2)
Instituting and maintaining an effective means of communicating information to very-low-, low-, or moderate-income households regarding the availability of restricted units for resale or re-rental.
M.
Processing requests from unit owners.
(1)
Reviewing and approving requests to increase sales prices from owners of restricted units who wish to refinance or take out home equity loans during the term of their ownership that the amount of indebtedness to be incurred will not violate the terms of this section;
(2)
Reviewing and approving requests to increase sales prices from owners of restricted units who wish to make capital improvements to the units that would affect the selling price, such authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms and the depreciated cost of central air-conditioning systems;
(3)
Notifying the Township of an owner's intent to sell a restricted unit; and
(4)
Making determinations on requests by owners of restricted units for hardship waivers.
N.
Enforcement.
(1)
Securing annually from the municipality a list of all affordable ownership units for which tax bills are mailed to absentee owners, and notifying all such owners that they must either move back to their unit or sell it;
(2)
Securing from all developers and sponsors of restricted units, at the earliest point of contact in the processing of the project or development, written acknowledgement of the requirement that no restricted unit can be offered, or in any other way committed, to any person, other than a household duly certified to the unit by the Administrative Agent;
(3)
Posting annually in all rental properties, including two-family homes, a notice as to the maximum permitted rent together with the telephone number of the Administrative Agent where complaints of excess rent or other charges can be made;
(4)
Sending annual mailings to all owners of affordable dwelling units reminding them of the notices and requirements outlined in N.J.A.C. 5:80-26.18(d)4;
(5)
Establishing a program for diverting unlawful rent payments to the Township's Affordable Housing Trust Fund; and
(6)
Creating and publishing a written operating manual for each affordable housing program administered by the Administrative Agent, to be approved by the Township Committee and the Court, setting forth procedures for administering the affordability controls.
§ 110-70 Affirmative marketing.
A.
Purpose. The purpose of this section is to establish administrative procedures to ensure a wide dissemination of knowledge of affordable housing units as they become available to the very-low-, low- and moderate-income population, and that the selection of tenants or homeowners, as the case may be, meets the requirements of UHAC.
B.
An 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 that are being marketed by a developer or sponsor of affordable housing. An Affirmative Marketing Plan is also intended to target those potentially eligible persons who are least likely to apply for affordable units in that region.
C.
Affirmative marketing requirements. Within the overall framework of the municipality's affirmative marketing program, all affordable housing units in Oldmans Township shall be marketed in accordance with the provisions in this section unless otherwise provided for in N.J.A.C. 5:80-26-1. An Affirmative Marketing Plan shall be created for each development that contains or will contain low- and moderate-income units, including those that may be constructed in future developments not yet anticipated. This Affirmative Marketing Plan shall also apply to any rehabilitated units that are vacated and re-rented during the applicable period of controls for rehabilitated rental units.
D.
Plan preparation. The Township Administrative Agent or other Administrative Agent shall prepare an Affirmative Marketing Plan for each affordable housing program, as applicable, comporting with N.J.A.C. 5:80-26.15. The Township Administrative Agent shall review and approve any other Administrative Agent's plan for use in the municipality. Regardless of the drafting agent, the Affirmative Marketing Plan is intended to be used by developers of affordable housing restricted to low- and moderate-income households located within the municipality. The Administrative Agent responsible for specific affordable housing programs or developments shall ensure that the affirmative marketing of all affordable units is consistent with these provisions.
E.
Affirmative marketing implementation. The Affirmative Marketing Plan includes regulations for qualification of income eligibility, price and rent restrictions, bedroom distribution, affordability control periods, and unit marketing in accordance to N.J.A.C. 5:80-26. All newly created affordable units will comply with the thirty-year affordability control required by UHAC, N.J.A.C. 5:80-26.5 and 5:80-26.11, except for any accessory apartments created, which shall be for 10 years. This plan will be adhered to by all private, nonprofit or municipal developers of affordable housing units and will cover the period of deed restriction or affordability controls on each affordable unit. The Affirmative Marketing Plan for each affordable housing development shall meet the following minimum requirements:
(1)
The Affirmative Marketing Plan shall provide a regional preference for all households that live and/or work in Housing Region 6, comprising Atlantic, Cape May, Cumberland and Salem counties.
(2)
Although the Township has the ultimate responsibility for implementing all aspects of Oldmans affordable housing program, the Administrative Agent shall assure that the affirmative marketing of all affordable units is consistent with the Affirmative Marketing Plan for the municipality.
(3)
The Administrative Agent shall provide a list of counseling services to low- and moderate-income applicants on subjects such as budgeting, credit problems, mortgage qualification, rental lease requirements, and landlord/tenant law.
(4)
The affirmative marketing process for available affordable units shall begin at least four months prior to the expected date of occupancy. Advertising and outreach shall take place during the first week of the marketing program and each month thereafter until all of the affordable units have been leased or sold.
(5)
The costs of advertising and affirmative marketing of the affordable units shall be the responsibility of the developer, sponsor or owner, unless otherwise determined or agreed to by the Township of Oldmans.
(6)
The Affirmative Marketing Plan for each affordable housing development shall describe the media to be used in advertising and publicizing the availability of housing. In implementing the Affirmative Marketing Plan, the Administrative Agent shall consider the use of language translations where appropriate.
(7)
Applications for affordable housing shall be available in several locations, including, at a minimum, the County Administration Building and/or the County Library for each county within the housing region; the Oldmans Municipal Building; and the developer's rental or sales office. Applications shall be mailed or emailed to prospective applicants upon request, and the application form(s) shall be available online on the municipal website.
(8)
The Township or developer's Administrative Agent shall list all affordable housing units due to become available in a new development, or being remarketed, on the New Jersey Housing Resource Center website in accordance with the requirements of recent legislation.
(9)
The Township Administrative Agent shall develop, maintain and update a list of community contact person(s) and/or organizations(s) in the Region 6 Housing Area for the use of the Township and other Administrative Agents. In addition, the list shall also include Fair Share Housing Center, the New Jersey State Conference of the NAACP, the Latino Action Network, Gloucester County NAACP, Salem County NAACP, Senior Citizens United Community Services, and the Supportive Housing Association, which entities shall receive specific notice of all available affordable housing units along with copies of application forms. This list shall be updated periodically. The list shall contain organizations that will aid in the affirmative marketing program with particular emphasis on contacts with outreach to groups and individuals that are least likely to apply for affordable housing within the region. A representative sample of the organizations on the list not otherwise requiring specific notice herein shall be contacted as part of the affirmative marketing effort as approved by the Township Administrative Agent. Any third party undertaking affirmative marketing within the Township of Oldmans shall comply with these provisions.
(10)
The Affirmative Marketing Plan of a developer or operator of restricted units shall be approved by the Township Administrative Agent prior to implementation.
§ 110-71 Monitoring and reporting requirements.
[Amended 5-8-2024 by Ord. No. 2024-05]
A.
Unit monitoring. By February 15 of each year, the Municipal Housing Liaison shall complete and return to COAH, its successor, or court of competent jurisdiction all forms necessary for monitoring requirements related to dwelling units in affordable housing projects and the collection of development fees from residential and nonresidential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier-free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with the Township of Oldmans' approved housing program, as well as to the expenditure of revenues and implementation of the approved plan.
B.
Affordable housing trust fund monitoring. By February 15 of each year, the Township shall provide annual reporting of its Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs (NJDCA), Council on Affordable Housing (COAH), or Local Government Services (NJLGS), or other entity designated by the State of New Jersey, with a copy provided to Fair Share Housing Center (FSHC) and posted on the municipal website, using forms developed for this purpose by the NJDCA, COAH, or NJLGS. The reporting shall include an accounting of all Affordable Housing Trust Fund activity, including the source and amount of funds collected and the amount and purpose for which any funds have been expended. The schedule for the reporting of this information shall be as set forth in the most recent settlement agreement between the Township of Oldmans and FSHC, as long as such agreement remains operative.
C.
Very-low-income unit monitoring. As required by N.J.S.A. 52:27D-329.1, by January 31, 2025, the Township will post on its municipal website a status report as to its satisfaction of its very-low-income requirements, including its family very-low-income requirements, and any other entity as directed by the Court. Such posting shall invite any interested party to submit comments to the municipality on the issue of whether the municipality has complied with its very-low-income and family very-low-income housing obligations.
§ 110-72 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.
The following requirements shall apply to all new or planned developments that contain low- and moderate-income housing units:
(1)
Each housing unit created through the conversion of a nonresidential structure shall be considered a new housing unit and shall be subject to the affordability controls for a new housing unit.
(2)
Final site plan or subdivision approval for any inclusionary development shall be contingent upon the affordable housing development meeting the following phasing schedule for low- and moderate-income units, whether developed in one stage or more stages. The initial issuance of certificates of occupancy for market units shall be linked to the issuance of certificates of occupancy for affordable units. Prior to the issuance of the certificates of occupancy for market units, certificates of occupancy for affordable units shall be required in the following minimum ratios:
[Amended 5-8-2024 by Ord. No. 2024-05]
Required Percentage of Affordable Units to Market Units | |
|---|---|
Maximum Percentage of Market-Rate Units Completed | Minimum Percentage of Low- and Moderate-Income Units Completed |
25 | 0 |
25+1 | 10 |
50 | 50 |
75 | 75 |
90 | 100 |
(3)
Each unit of affordable housing shall require a certificate of occupancy or continuing certificate of occupancy, which shall become void upon a change of owner or tenant.
(5)
The facade of an affordable housing dwelling shall be indistinguishable from those of market units in terms of the use of exterior materials, windows, doors, reveal, roof pitch, color, or other material. Affordable housing units shall be fully integrated with market-rate housing to the greatest extent feasible and shall have access to open space and site amenities comparable to that of market-rate units, unless otherwise approved by the Municipal Housing Liaison.
(6)
For inclusionary developments with a single housing type, the affordable housing units shall have the same tenure as the market housing units.
(7)
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 the New Jersey Department of Community Affairs for its Section 8 program. Affordable units shall utilize the same type of heating source as market units within the affordable development.
B.
For inclusionary set-asides in which the percentage (15% or 20%, as the case may be) of the total number of residential units does not result in a full integer, the following may occur:
(1)
The developer may in all cases round the set-aside upward and construct an additional affordable unit; or if the set-aside includes a fractional unit of 0.2 or less, the developer may round the set-aside downward and construct the lower whole number of affordable units, but must also make a payment in lieu of constructing the fractional additional unit ("fractional payment-in-lieu"). The fractional payment-in-lieu amount shall be calculated as the fractional unit multiplied by the payment-in-lieu amount of $250,000, increased annually by the Urban Consumer Price Index for the metropolitan area.
For example, if seven total units are developed at an inclusionary site, a 20% set-aside would require 1.4 affordable units. The developer must round up the fraction and construct a total of two affordable units. If six total units are developed, a 20% set-aside would require 1.2 affordable units. In that instance, the developer may either round up and construct a second affordable unit, or make a fractional payment in lieu of 0.2 x $250,000, or $50,000, into the Township's Affordable Housing Trust Fund.
(2)
The payment shall be imposed as a condition of development approval by the Planning Board.
(3)
During the development approval process, a developer may demonstrate to the governing body that the actual construction cost of an affordable unit less estimated capitalized revenue at the development in question is lower than the imposed payment-in-lieu. At its discretion, the governing body may impose a lower payment-in-lieu amount equal or proximate to the amount estimated by the developer.
C.
Accessibility requirements.
(1)
The first floor of all new 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 be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7, and the following.
(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 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;
(e)
If not all of the foregoing requirements in Subsection C(2)(a) through (d) can be satisfied, then an interior accessible route of travel must be provided between stories within an individual unit; but if all of the terms of Subsection C(2)(a) through (d) above have been satisfied, then an interior accessible route of travel shall not be required between stories within an individual unit; and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that the Township has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible:
[1]
Where a unit has been constructed with an adaptable entrance, upon the request of a disabled person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds within the Township of Oldmans 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 C(2)(f)[2] herein shall be used by the Township for the sole purpose of making the adaptable entrance of an 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 to the Construction Official of the Township of Oldmans a design plan and cost estimate for the conversion from adaptable to accessible entrances.
[5]
Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meets the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and that the cost estimate of such conversion is reasonable, payment shall be made to the Township of Oldmans Affordable Housing Trust Fund in care of the Municipal Housing Finance Officer, who shall ensure that the funds are deposited into the Affordable Housing Trust Fund and earmarked appropriately.
(3)
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.
D.
Income and bedroom distributions.
(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.
(3)
Within rental developments, of the total number of affordable rental units, at least 13% shall be affordable to very-low-income households. The very-low-income units shall be counted as part of the required number of low-income units within the 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.
(5)
Affordable developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development. The standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit.
E.
Occupancy standards.
(1)
In determining the initial rents and initial sales prices for compliance with the affordable average requirements for restricted units other than age-restricted dwellings, the following standards shall be used:
(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.
(e)
A four-bedroom unit shall be affordable to a six-person household.
(2)
For age-restricted affordable dwellings, the following standards shall be used:
(3)
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:
§ 110-73 Income limits; maximum rents and sales prices.
A.
In establishing rents and sales prices of affordable housing units, the Administrative Agent shall follow the procedures set forth in UHAC and the calculation procedures as approved by the Court and detailed below:
(1)
Regional income limits shall be established for the region in which the Township is located (i.e., Region 6) based on the median income by household size, which shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD. To compute this regional income limit, the HUD determination of median county income for a family of four is multiplied by the estimated households within the county according to the most recent decennial census. The resulting product for each county within the housing region is summed. The sum is divided by the estimated total households from the most recent decennial census in the Township's housing region. This quotient represents the regional weighted average of median income for a household of four. The income limit for a moderate-income unit for a household of four shall be 80% of the regional weighted average median income for a family of four. The income limit for a low-income unit for a household of four shall be 50% of the HUD determination of the regional weighted average median income for a family of four. The income limit for a very-low-income unit for a household of four shall be 30% of the regional weighted average median income for a family of four. These income limits shall be adjusted by household size based on multipliers used by HUD to adjust median income by household size. The income limits calculated each year shall be the result of applying the percentages set forth above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the Township updates the income limits after HUD has published revised determinations of median income for the next fiscal year. In no event shall the income limits be less than those for the previous year.
(2)
The regional asset limit used in determining an applicant's eligibility for affordable housing pursuant to N.J.A.C. 5:80-26.16(b)3 shall be calculated by the Township annually by taking the percentage increase of the income limits calculated pursuant to Subsection A(1) above over the previous year's income limits, and applying the same percentage increase to the regional asset limit from the prior year. In no event shall the regional asset limit be less than that for the previous year.
B.
The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than 60% of regional median income by household size, and the average rent for restricted low- and moderate-income units shall be affordable to households earning no more than 52% of regional median income by household size.
C.
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, provided that at least 13% of all low- and moderate-income rental units shall be affordable to households earning no more than 30% of regional median income by household size. These very-low-income units shall be part of the low-income requirement.
D.
The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70% of regional median income by household size, and each affordable development must achieve an affordability average of 55% for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type.
E.
For any affordable housing unit that is part of a condominium association and/or homeowners' association, the master deed shall reflect that the association fee assessed for each affordable housing unit shall be established at 100% of the market-rate fee.
F.
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.
G.
The initial rent for a restricted rental unit shall be calculated so as not to exceed 30% of the eligible monthly income, including an allowance for tenant-paid utilities, 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.
H.
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.
I.
The rent levels of very-low-, low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the Northeast Urban Area, upon its publication for the prior calendar year. This increase shall not exceed 9% in any one year. Rent increases for units constructed pursuant to low-income housing tax credit regulations shall be indexed pursuant to the regulations governing low-income housing tax credits.
§ 110-74 Requirements for restricted ownership units.
A.
Affordability controls.
(1)
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 controls on affordability for a period of at least 30 years, until the Township takes action to release the controls on affordability. Prior to such action, 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.
(2)
Rehabilitated owner-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years.
(3)
The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit.
(4)
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 without the restrictions in place.
(5)
At the time of the initial sale of the unit, the initial purchaser shall execute and deliver to the Administrative Agent a recapture note obliging 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 restrictions set forth in this section, 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.
(6)
The affordability controls set forth in this section shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units.
(7)
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.
B.
Price restrictions.
(1)
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 master deeds of inclusionary developments shall provide no distinction between the condominium or homeowner association fees and special assessments paid by low- and moderate-income purchasers and those paid by market-price purchasers.
(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 anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom.
C.
Buyer income eligibility.
(1)
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 regional median income by household size, and moderate-income ownership units shall be reserved for households with a gross household income less than 80% of regional median income by household size.
(2)
Notwithstanding the foregoing, the Administrative Agent may, upon approval by the Township Committee, and subject to the Court's approval, permit a moderate-income purchaser to buy a low-income unit if and only if the Administrative Agent can demonstrate that there is an insufficient number of eligible low-income purchasers in the housing region to permit prompt occupancy of the unit and all other reasonable efforts to attract a low-income purchaser, including pricing and financing incentives, have failed. Any such low-income unit that is sold to a moderate-income household shall retain the required pricing and pricing restrictions for a low-income unit.
(3)
A certified household that purchases a restricted ownership unit must occupy it as the certified household's principal residence and shall not lease the unit; provided, however, that the Administrative Agent may permit the owner of a restricted ownership unit, upon application and a showing of hardship, to lease the restricted unit to another certified household for a period not to exceed one year.
(4)
The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the household is a low-income household or a moderate-income household, as applicable to the unit, and the estimated monthly housing cost for the particular unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees, as applicable) does not exceed 33% of the household's eligible monthly income.
D.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
Prior to incurring any indebtedness to be secured by a restricted ownership unit, the owner shall apply to the Administrative Agent for a determination in writing that the proposed indebtedness complies with the provisions of this section, and the Administrative Agent issue such determination prior to the owner incurring such indebtedness.
(2)
With the exception of original purchase money mortgages, neither an owner nor a lender shall at any time during the control period 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).
E.
Capital improvements to ownership units.
(1)
The owner of a restricted ownership unit may apply to the Administrative Agent to increase the maximum sales price for the unit on the basis of capital improvements made since the purchase of the unit. Eligible capital improvements shall be those that render the unit suitable for a larger household or that add an additional bathroom. In no event shall the maximum sales price of an improved housing unit exceed the limits of affordability for the larger household.
(2)
Upon the resale of a restricted ownership unit, all items of property that are permanently affixed to the unit or were included when the unit was initially restricted (for example, refrigerator, range, washer, dryer, dishwasher, wall-to-wall carpeting) shall be included in the maximum allowable resale price. Other items may be sold to the purchaser at a reasonable price that has been approved by the Administrative Agent at the time of the signing of the agreement to purchase. The purchase of central air conditioning installed subsequent to the initial sale of the unit and not included in the base price may be made a condition of the unit resale, provided the price of the air-conditioning equipment, which shall be subject to ten-year, straight-line depreciation, has been approved by the Administrative Agent. Unless otherwise approved by the Administrative Agent, the purchase of any property other than central air conditioning shall not be made a condition of the unit resale. The owner and the purchaser must personally certify at the time of closing that no unapproved transfer of funds for the purpose of selling and receiving property has taken place at the time of or as a condition of resale.
§ 110-75 Requirements for restricted rental units.
A.
Control periods.
(1)
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 section for a period of at least 30 years, until the Township of Oldmans takes action to release the controls on affordability. Prior to such action, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
(2)
Restricted rental units created as part of developments receiving 9% low-income housing tax credits must comply with a control period of not less than a thirty-year compliance period plus a fifteen-year extended use period.
(3)
Rehabilitated renter-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years.
(4)
Deeds of all real property that include restricted rental units shall contain deed restriction language. The deed restriction shall have priority over all mortgages on the property, and the deed restriction shall be filed by the developer or seller with the records office of the County of Salem. A copy of the filed document shall be provided to the Administrative Agent within 30 days of the receipt of a certificate of occupancy.
(5)
A restricted rental unit shall remain subject to the affordability controls of this section despite the occurrence of any of the following events:
B.
Rent restrictions; leases.
(1)
A written lease shall be required for all restricted rental units, except for units in an assisted living residence, and tenants shall be responsible for security deposits and the full amount of the rent as stated on the lease. A copy of the current lease for each restricted rental unit shall be provided to the Administrative Agent.
(2)
No additional fees or charges shall be added to the approved rent (except, in the case of units in an assisted living residence, to cover the customary charges for food and services) without the express written approval of the Administrative Agent.
(3)
Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable restricted unit and shall be payable to the Administrative Agent, to be applied to the costs of administering the controls applicable to the unit as set forth in this article.
(4)
No rent control or other pricing restriction shall be applicable to either the market-rate units or the affordable units in any development in which at least 20% of the total number of dwelling units are restricted rental units in compliance with this article.
C.
Tenant income eligibility.
(1)
Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13, as may be amended and supplemented, and shall be determined as follows:
(a)
Very-low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of the regional median income by household size.
(b)
Low-income rental units shall be reserved for households with a gross household income greater than 30% but less than or equal to 50% of the regional median income by household size.
(c)
Moderate-income rental units shall be reserved for households with a gross household income greater than 50% but less than 80% of the regional median income by household size.
(2)
The Administrative Agent shall certify a household as eligible for a restricted rental unit when the household is a very-low-income, low-income or 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:
(a)
The household currently pays more than 35% (40% for households eligible for age-restricted units) of its gross household income for rent, and the proposed rent will reduce its housing costs;
(b)
The household has consistently paid more than 35% (40% for households eligible for age-restricted units) of eligible monthly income for rent in the past and has proven its ability to pay;
(c)
The household is currently in substandard or overcrowded living conditions;
(d)
The household documents the existence of assets with which the household proposes to supplement the rent payments; or
(e)
The household documents reliable anticipated 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.
§ 110-76 Requirements for alternative living arrangements.
A.
The administration of an alternative living arrangement shall be in compliance with N.J.A.C. 5:93-5.8[1] and UHAC, with the following exceptions:
(1)
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that the units or bedrooms may be affirmatively marketed by the provider in accordance with an alternative plan approved by the Court.
(2)
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3).
[1]
Editor's Note: The provisions of N.J.A.C. 5:93 expired 10-16-2016.
B.
With the exception of units established with capital funding through a twenty-year operating contract with the Department of Human Services, Division of Developmental Disabilities, alternative living arrangements shall have at least thirty-year controls on affordability in accordance with UHAC, unless an alternative commitment is approved by the Court.
C.
The service provider for the alternative living arrangement shall act as the Administrative Agent for the purposes of administering the affirmative marketing and affordability requirements for the alternative living arrangement.
§ 110-77 Affordable housing set-aside.
[Added 5-8-2024 by Ord. No. 2024-05[1]]
A.
A mandatory affordable housing set-aside requirement shall apply beginning on June 1, 2024 to any residential development, including the residential portion of a mixed-use project, that consists of five or more new residential units at a density of six units per acre or greater, or equivalent, which results in whole or in part from: (i), a municipal rezoning or zoning amendment; (ii), any variance pursuant to N.J.S.A. 40:55D-70(d), including but not limited to any use variance or a density variance increasing the permissible density; or (iii), the adoption of a new or amended redevelopment plan or rehabilitation plan. The set-aside shall be 20% where the affordable units are provided as for-sale units and 15% where the affordable units are provided as rental units. This section shall not apply to any 100% affordable housing development or inclusionary development as included within the adopted Housing Element and Fair Share Plan as an affordable housing site. Any development to which this mandatory affordable housing set-aside requirement applies shall be exempt from the payment of development fees required under § 110-66 of this chapter.
B.
The following terms shall apply to any residential development subject to the mandatory affordable housing set-aside:
(1)
All subdivision and site plan approvals of qualifying development shall be conditioned upon compliance with the provisions of the mandatory affordable housing set-aside.
(2)
No subdivision shall be permitted or approved for the purpose of avoiding compliance with the mandatory affordable housing set-aside. A developer may not, for example but not by way of limitation, subdivide a project into two lots and then plan each of them to produce a number of units below the threshold as established in § 110-78A. The approving authority may impose any reasonable conditions to ensure such compliance.
(3)
In the event the number of affordable housing units to be provided includes a fraction, the number shall be rounded up if the fractional amount is 0.2 or greater and may be rounded down if the fractional amount is less than 0.2. The developer may provide a payment in lieu of constructing affordable units for the fraction of a unit less than 0.2. The payment in lieu shall be based on the amounts established in N.J.A.C. 5:97-6.4(c).
(4)
The very-low-income affordable units shall be proportionately distributed within each bedroom distribution. In a family nonage-restricted development, at no time shall the number of one-bedroom very-low-income units exceed the number of three-bedroom very-low-income units.
(5)
The mandatory affordable housing set-aside shall not give any developer the right to any rezoning, variance, redevelopment designation or redevelopment or rehabilitation plan approval, or any other such relief, or establish any obligation on the part of the municipality to grant such rezoning, variance, redevelopment designation, redevelopment or rehabilitation plan approval, or other such or further relief.
(6)
Nothing herein precludes the municipality from imposing an affordable housing set-aside in a development not required to have a set-aside pursuant to this chapter.
(7)
Nothing herein shall impose an obligation on non-residential development, including the nonresidential portion of a mixed-use development, subject to the State Non-Residential Development Fee Act, N.J.S.A. 40:45D-8.1, et seq. Nevertheless, all residential development, including the residential portion of a mixed-use development, shall comply with the provisions of this section.
§ 110-78 Enforcement of affordable housing regulations; appeals.
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 $500 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.
(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 Township of Oldmans 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- or moderate-income unit.
(a)
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- or 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.
(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- or 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 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 they 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- or 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- or 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 that would have been realized from an actual sale as previously described.
(e)
Failure of the low- or 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 that may be referred to the owner by the municipality, with such offer to purchase being equal to the maximum resale price of the low- or 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.
(3)
Appeals from all decisions of an Administrative Agent designated pursuant to this article shall be filed in writing with the Township.