Perth Amboy City Zoning Code
ARTICLE XVII
Affordable Housing
§ 430-127 Affordable housing obligation: general program purposes, procedures.
A.
This section of the City Code sets forth regulations regarding the very-low-, low-, and moderate-income housing units in the City consistent with the provisions known as the "Substantive Rules of the New Jersey Council on Affordable Housing", N.J.A.C. 5:93 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 P.L. 2008, c.46 (the "Roberts Bill", codified at N.J.S.A. 52:27D-329.1) as reflected in the terms of a Settlement Agreement between the City and Fair Share Housing Center ("FSHC") such that the statutory requirement to provide very-low-income units equal to thirteen percent (13%) of affordable units approved and constructed after July 17, 2008, to be affordable to households at thirty percent (30%) of the regional median income, overrides the UHAC requirement that ten percent (10%) of all low- and moderate-income units must be affordable at thirty-five percent (35%) of the regional median income, and the City's constitutional obligation to provide a fair share of affordable housing for low and moderate income households.
B.
This Article is intended to assure that very-low-, low- and moderate-income units ("affordable units") are created with controls on affordability over time and that very-low-, low- and moderate-income households shall occupy these units. This Article shall apply to all developments that include affordable units (including those funded with low-income housing tax credit financing) except where inconsistent with applicable law.
C.
The Perth Amboy City 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., which may be amended. The Plan has also been endorsed by the Mayor and Council of the City of Perth Amboy. The Fair Share Plan describes the ways the City shall address its fair share for very-low-, low-, and moderate-income housing as will be determined by the Superior Court and documented in the Housing Element.
D.
This Article implements and incorporates the Fair Share Plan and addresses the requirements of N.J.A.C. 5:93, as may be amended and supplemented.
E.
Starting on January 1, 2023, and every anniversary thereafter, the City shall file monitoring and status reports with Fair Share Housing Center ("FSHC") and place the reports on its municipal website. Any plan evaluation report of the Housing Element and Fair Share Plan and monitoring evaluation report prepared by the Special Master in accordance with N.J.A.C. 5:91 shall be available shall be available on the municipal website.
F.
Starting on January 1, 2023, and every anniversary thereafter, the City of Perth Amboy shall provide an annual report on all affordable housing activity and any expenditures from or deposits into its affordable housing trust fund. The annual report shall be sent directly to FSHC, posted on the municipal website, and provided to the New Jersey Department of Community Affairs or other entity designated by the State of New Jersey. The reporting shall state the location and the number of affordable units approved, under construction, and built, and it shall provide information on the bedroom and income distribution of the affordable units and whether a deed restriction has been imposed on them. It shall also report on affordable housing trust fund activity, including the amount and purpose of all expenditures, the source and amount of all deposits, and updated totals.
G.
The Fair Housing Act includes two provisions regarding action to be taken by the City during the ten-year period of protection provided in the City's Court-approved agreement with FSHC. The City agrees to comply with those provisions as follows:
(1)
Within thirty (30) days of June 1, 2021 and June 1, 2024 the City shall prepare a review of compliance with the very-low income housing requirements required by N.J.S.A. 52:27D-329.1 and its Court-approved Settlement Agreement with FSHC. The City will post on its municipal website, with a copy provided to FSHC, a status report as to its satisfaction of its very-low income requirements, including the family very-low income requirements referenced herein and in the City's Settlement Agreement with FSHC. Such posting shall invite any interested party to submit comments to the municipality and FSHC on the issue of whether the municipality has complied with its very-low income housing obligation.
§ 430-128 Definitions.
As used herein the following terms shall have the following meanings:
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. 5:91, N.J.A.C. 5:93 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. 5:93-7.4; 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 of which all or a portion of which consists of one or more restricted units. This shall include developments subject to the City's Zoning and Land Development Regulations, as well as the City's adopted redevelopment plans and/or executed redevelopment agreements.
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. 5:80-26.1, et seq., and N.J.A.C. 5:93, et seq., 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 sixty two (62) years or older; or (2) at least eighty percent (80%) of the units are occupied by one person that is fifty-five (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 structure in which households live in distinct bedrooms, yet share kitchen and plumbing facilities, central heat and common areas. Alternative living arrangement includes, but is not limited to: transitional facilities for the homeless, Class A, B, C, D, and E boarding homes as regulated by the New Jersey Department of Community Affairs; residential health care facilities as regulated by the New Jersey Department of Health; group homes for the developmentally disabled and mentally ill as licensed and/or regulated by the New Jersey Department of Human Services; and congregate living arrangements.
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 (4) 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 very-low-income, low-income household or moderate-income household.
The Council on Affordable Housing, which is in, but not of, 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.).
The State of New Jersey Department of Community Affairs.
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 by a developer for the improvement of property as permitted in N.J.A.C. 5:93-8.
The assessed value of a property divided by the current average ratio of assessed to true value for the municipality in which the property is situated, as determined in accordance with Sections 1, 5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
The plan that describes the mechanisms, strategies and the funding sources, if any, by which the City proposes to address its affordable housing obligation as established in the Housing Element, including the draft ordinances necessary to implement that plan, and addresses the requirements of N.J.A.C. 5:93-5.
A self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is available to the general public and not restricted to any specific segment of the population.
The portion of the City's Master Plan, required by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the Act, that includes the information required by N.J.A.C. 5:93-5.1 and establishes the City's fair share obligation.
A development containing both affordable units and market rate units. This term includes, but is not necessarily limited to: new construction, the conversion of a non-residential structure to residential and the creation of new affordable units through the reconstruction of a vacant residential structure.
A household with a total gross annual household income equal to fifty percent (50%) or less of the median household income.
A restricted unit that is affordable to a low-income household.
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 COAH or approved by the NJ Superior Court.
A household with a total gross annual household income in excess of fifty percent (50%) but less than eighty percent (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.
A process by which currently 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 eighty percent (80%) of the regional median as defined by adopted/approved Regional Income Limits.
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.
An expert appointed by a judge to make sure that judicial orders are followed. A master's function is essentially investigative, compiling evidence or documents to inform some future action by the court.
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 thirty percent (30%) or less of the median household income.
A restricted unit that is affordable to a very-low-income household.
§ 430-129 Administration of affordable units.
The following requirements shall apply to all new or planned developments, including those subject to redevelopment plans and/or redevelopment agreements, that contain very-low-, low- and/or moderate-income housing units.
A.
The requirements of this section apply to all developments that contain affordable housing units, including any currently unanticipated future developments that will provide very-low-, low-, and moderate- income housing units.
B.
Phasing. Final site plan or subdivision approval shall be contingent upon the affordable housing development meeting the following phasing schedule for very low, low and moderate income units whether developed in a single phase development, or in a multi-phase development:
Maximum Percentage of Market-Rate Units Completed | Minimum Percentage of Low-, Very-Low-, and Moderate-Income Units Completed |
|---|---|
25% | 0 |
25% + 1 | 10% |
50% | 50% |
75% | 75% |
90% | 100% |
100% | — |
C.
Design. In inclusionary developments, very-low-, low- and moderate-income units shall be integrated on-site with the market-rate units, and the affordable units shall not be concentrated in separate building(s) or in separate area(s) or floor(s) from the market-rate units. In buildings with multiple dwelling units, this shall mean that the affordable units shall be generally distributed within each building with market-rate units. The affordable units shall also be of the same type as the market-rate units (e.g., if the market-rate units are non-age-restricted family units, the affordable units shall be non-age-restricted family units as well). The residents of the affordable units shall have full and equal access to all of the entryways, amenities, common areas, and recreation areas and facilities as the residents of the market-rate units.
D.
Utilities. Affordable units shall utilize the same type of heating source as market units within the affordable development.
E.
Very Low/Low/Moderate Split and Bedroom Distribution of Affordable Housing Units:
(1)
All of the affordable units shall fully comply with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.1, et seq., including but not limited to the required bedroom and income distribution, with the sole exception that thirteen percent (13%) of the affordable units within each bedroom distribution shall be required to be for very-low-income households earning thirty percent (30%) or less of the median income pursuant to the Fair Housing Act.
(2)
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.
(3)
In each development with affordable housing, at least fifty percent (50%) of the affordable units within each bedroom distribution shall be affordable to low-income households, inclusive of the at least thirteen percent (13%) of units affordable to very-low-income households. The very-low-income affordable units shall be proportionately distributed within each bedroom distribution. In a family non-age-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.
(4)
Of the total number of affordable units, at least thirteen percent (13%) of the restricted units within each bedroom distribution shall be affordable to very-low income households.
(5)
At least half of the affordable units in each bedroom distribution within each affordable housing development shall be affordable to low-income households.
(6)
Affordable developments that are not age-restricted shall require that:
(a)
The combined number of efficiency and one-bedroom units shall be no greater than twenty percent (20%) of the total very-low-, low- and moderate-income units;
(b)
At least thirty percent (30%) of all very-low-, low- and moderate-income units shall be two-bedroom units;
(c)
At least twenty percent (20%) of all very-low-, low- and moderate-income units shall be three-bedroom units; and
(d)
The remaining very-low-, low-, and moderate-income units may be allocated among two- and three-bedroom units at the discretion of the developer.
(7)
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.
F.
Accessibility requirements:
(1)
The first floor of all new restricted townhouse dwelling units and all restricted multistory dwelling units attached to at least one (1) other dwelling unit 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 multistory dwelling units attached to at least one (1) 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 City has collected funds from the developer sufficient to make ten percent (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 City of Perth Amboy's affordable housing trust fund sufficient to install accessible entrances in ten percent (10%) of the affordable units that have been constructed with adaptable entrances.
[3]
The funds deposited under paragraph (2) herein, shall be used by the City 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 City of Perth Amboy.
[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 City of Perth Amboy's affordable housing trust fund in care of the Municipal Treasurer who shall ensure that the funds are 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.
G.
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 and by the Superior Court, utilizing the regional income limits established.
(2)
The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than sixty percent (60%) of median income, and the average rent for restricted low- and moderate-income units shall be affordable to households earning no more than fifty-two percent (52%) of median income.
(3)
The developers and/or municipal sponsors of restricted rental units shall establish at least one rent for each bedroom type for very-low-income, low-income and moderate-income units.
(a)
At least thirteen percent (13%) of all low- and moderate-income units shall be affordable to households earning no more than thirty percent (30%) of median income.
(4)
The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than seventy percent (70%) of median income, and each affordable development must achieve an affordability average of fifty five-percent (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.
(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 met:
(a)
A studio or efficiency unit 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 met:
(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 twenty-eight (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 thirty percent (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 very-low-, 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)
Income limits for all units for which income limits are not already established through a federal program exempted from the Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26.1 shall be updated by the City annually within thirty (30) days of the publication of determinations of median income by HUD as follows:
(a)
Regional income limits shall be established for the Region 3 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 Region 3. 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 eighty percent (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 fifty percent (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 thirty percent (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. In no event shall the income limits be less than those for the previous year.
(b)
The income limits calculated each year shall be the result of applying the percentages set forth in paragraph (a) above to HUD's determination of median income for the relevant fiscal year, and shall be utilized until the City updates the income limits after HUD has published revised determinations of median income for the next fiscal year.
(c)
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 City annually by taking the percentage increase of the income limits calculated pursuant to paragraph (a) 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.
(11)
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 five percent (5%) in any one (1) 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.
(12)
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.
H.
Condominium and homeowners association fees.
(1)
For any affordable housing unit that is part of a condominium association and/or homeowner's association, the Master Deed shall reflect that the association fee assessed for each affordable housing unit shall be established at one hundred percent (100%) of the market rate fee.
I.
Affirmative marketing.
(1)
The City shall adopt by resolution an Affirmative Marketing Plan, subject to approval of the Superior Court, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented. All very-low-, low-, and moderate-income units in the City shall be marketed in accordance with the Affirmative Marketing Plan.
(2)
The Affirmative Marketing Plan shall require that all availabilities of very-low-, low-, and moderate-income units be posted on the New Jersey Housing Resource Center in accordance with P.L. 2020, c. 51, as may be amended.
(3)
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 COAH Housing Region 3 and covers the period of deed restriction.
(4)
The affirmative marketing plan shall provide a regional preference for all households that live and/or work in COAH Housing Region 3, comprised of Middlesex, Somerset, and Middlesex Counties.
(5)
The following entities, as part of the Affirmative Marketing Plan, must receive written notice of all very-low-, low-, and moderate-income units that become available at least ninety (90) days before an income-eligible household is selected:
(a)
Fair Share Housing Center, 510 Park Blvd, Cherry Hill, NJ;
(b)
Latino Action Network, PO Box 943, Freehold, NJ 07728;
(c)
New Brunswick Area NAACP, PO Box 235, New Brunswick, NJ 08901;
(d)
Catholic Charities, 319 Maple Street, Perth Amboy, NJ 08861;
(e)
Salvation Army, 433 State Street, Perth Amboy, NJ 08861;
(f)
Puerto Rican Association, 100 1st Street, Perth Amboy, NJ 08861;
(g)
Volunteers of America, 396 Mechanic Street, Perth Amboy, NJ 08861;
(h)
Raritan Bay Area YMCA, 357 New Brunswick Avenue, Perth Amboy, NJ 08861;
(i)
Supportive Housing Association, 15 Alden St # 14, Cranford, NJ 07016; and
(j)
The New Jersey Housing Resource Center (HRC).
(6)
The development's Administrative Agent designated by the City shall assure the affirmative marketing of all affordable units is consistent with the Affirmative Marketing Plan for the municipality.
(7)
Any other entities, including developers or persons or companies retained or otherwise required to do affirmative marketing, shall comply with this paragraph.
(8)
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.
(9)
The affirmative marketing process for available affordable units shall begin at least four (4) months prior to the expected date of occupancy.
(10)
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 City of Perth Amboy.
J.
Occupancy standards.
(1)
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:
(2)
Additional provisions related to occupancy standards (if any) shall be provided in the municipal Operating Manual.
K.
Selection of occupants of affordable housing units.
(1)
The administrative agent shall use a random selection process to select occupants of very-low-, low- and moderate- income housing.
(2)
Income-eligible very-low-, low-, and moderate-income households that demonstrate the ability to pay shall not be denied access to affordable units on the basis of credit score/history or a prior eviction, and any inquiry into an applicant's criminal history must comply with the "Fair Chance in Housing Act." See P.L. 2021, c. 110.
(3)
A waiting list of all eligible candidates will be maintained in accordance with the provisions of N.J.A.C. 5:80-26 et seq.
L.
Control periods for restricted ownership units and enforcement mechanisms.
(1)
Deed restrictions with control periods for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.5, and each restricted ownership unit shall remain subject to the controls on affordability for a period of at least thirty (30) years, unless and until the municipality takes action, in its sole discretion, to either extend or release the controls on affordability. The controls may be extended by the municipality via a resolution for a period to be determined by the municipality to be in the best interests of very-low-, low, and moderate-income households.
(2)
Rehabilitated owner-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of no less than ten (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)
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.
(5)
Deeds of all real property that include restricted ownership 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 Middlesex. A copy of the filed document shall be provided to the Administrative Agent within thirty (30) days of the receipt of a Certificate of Occupancy.
(6)
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.
M.
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:
(1)
The initial purchase price for a restricted ownership unit shall be approved by the Administrative Agent.
(2)
The Administrative Agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards.
(3)
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.
(4)
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.
N.
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 very-low-income ownership units shall be reserved for households with a gross household income less than or equal to thirty percent (30%) of median income, low-income ownership units shall be reserved for households with a gross household income less than or equal to fifty percent (50%) of median income, and moderate-income ownership units shall be reserved for households with a gross household income less than eighty percent (80%) of median income.
(2)
The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the household is a very-low-income, 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 thirty-three percent (33%) of the household's certified monthly income.
O.
Limitations on indebtedness secured by ownership unit; subordination.
(1)
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.
(2)
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 ninety-five (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).
P.
Control Periods for Restricted Rental Units.
(1)
Deed restrictions with control periods for restricted rental units shall be in accordance with N.J.A.C. 5:80-26.11, and each restricted rental unit shall remain subject to the controls on affordability for a period of at least thirty (30) years, unless and until the municipality, in its sole discretion, takes action to extend or release the controls on affordability. The controls may be extended by the municipality via a resolution for a period to be determined by the municipality to be in the best interests of very-low-, low, and moderate-income households. In the event the municipality chooses to release the controls after at least thirty (30) years, the units shall remain affordable in accordance with N.J.A.C. 5:80-26.11(b) until the occupant household elects to voluntarily depart.
(a)
Restricted rental units created as part of developments receiving nine percent (9%) Low Income Housing Tax Credits must comply with a control period of not less than a thirty (30) year compliance period plus a fifteen (15) year extended use period.
(2)
Rehabilitated renter-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of no less than ten (10) years.
(3)
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 Middlesex. A copy of the filed document shall be provided to the Administrative Agent within thirty (30) days of the receipt of a Certificate of Occupancy.
(4)
A restricted rental unit shall remain subject to the affordability controls of this Ordinance, despite the occurrence of any of the following events:
Q.
Price Restrictions for Rental Units; 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 five percent (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.
R.
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 thirty percent (30%) of median income.
(b)
Low-income rental units shall be reserved for households with a gross household income less than or equal to fifty percent (50%) of median income.
(c)
Moderate-income rental units shall be reserved for households with a gross household income less than eighty percent (80%) of median income.
(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 household or a moderate-income household, as applicable to the unit, and the rent proposed for the unit does not exceed thirty-five percent (35%) [forty percent (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 thirty-five percent (35%) [forty percent (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 thirty-five percent (35%) [forty percent (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 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.
(3)
The applicant shall file documentation sufficient to establish the existence of the circumstances in (2)(a) through (2)(e) above with the Administrative Agent, who shall counsel the household on budgeting.
S.
Conversions.
(1)
Each affordable housing unit created through the conversion of a non-residential structure shall be considered a new housing unit and shall be subject to the affordability controls for a new housing unit.
T.
Alternative living arrangements.
(1)
The administration of an alternative living arrangement shall be in compliance with N.J.A.C. 5:93-5.8 and UHAC, with the following exceptions:
(2)
With the exception of units established with capital funding through a twenty (20) year operating contract with the Department of Human Services, Division of Developmental Disabilities, alternative living arrangements shall have at least thirty (30) year controls on affordability in accordance with UHAC, unless an alternative commitment is approved by the Court.
(3)
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.
§ 430-130 Municipal Housing Liaison.
A.
The position of Municipal Housing Liaison for the City of Perth Amboy is hereby established. The Municipal Housing Liaison shall be appointed by duly adopted resolution of the City Mayor and Council and be subject to the approval by the Superior Court.
B.
The Municipal Housing Liaison must be either a full-time or part-time employee of the City of Perth Amboy.
C.
The Municipal Housing Liaison must meet the requirements for qualifications, including initial and periodic training found in N.J.A.C. 5:93.
D.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the City of Perth Amboy, including the following responsibilities which may not be contracted out to the Administrative Agent:
(1)
Serving as the municipality's primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents and interested households;
(2)
When applicable, supervising any contracting Administrative Agent.
(3)
Monitoring the status of all restricted units in the City of Perth Amboy's Fair Share Plan;
(4)
Compiling, verifying and submitting annual reports as required by the Superior Court;
(5)
Coordinating meetings with affordable housing providers and Administrative Agents, as applicable; and
(6)
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by the Superior Court.
§ 430-131 Administrative Agent.
A.
The City shall designate by resolution of the City Mayor and Council, subject to the approval of the Superior Court, one or more certified and experienced Administrative Agents to administer all affordable units in accordance with N.J.A.C. 5:93 and UHAC. The Administrative Agent must have at least five (5) years of experience administering affordable units in New Jersey pursuant to UHAC.
B.
An Operating Manual shall be provided by the Administrative Agent(s) to be adopted by resolution of the governing body and subject to approval of the Superior Court. The Operating Manuals shall be available for public inspection in the Office of the Municipal Clerk and in the office(s) of the Administrative Agent(s).
C.
The Administrative Agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC and which are described in full detail in the Operating Manual, including those set forth in N.J.A.C. 5:80- 26.14, 16 and 18 thereof, which includes:
(1)
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by the Superior Court;
(2)
Affirmative Marketing;
(3)
Household Certification;
(4)
Affordability Controls;
(5)
Records retention;
(6)
Resale and re-rental;
(7)
Processing requests from unit owners; and
(8)
Enforcement, although the ultimate responsibility for retaining controls on the units rests with the municipality.
(9)
The Administrative Agent shall, as delegated by the City Mayor and Council, have the authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder.
§ 430-132 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 very-low-, 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 sixty (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 five hundred dollars ($500.00) or imprisonment for a period not to exceed ninety (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 very-low-, low- or moderate- income unit in violation of the regulations governing affordable housing units, payment into the City of Perth Amboy 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 very-low-, 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 very-low-, 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 very-low-, 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 very-low-, 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 (2) 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 (2) 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 very-low-, 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 very-low-, 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 very-low-, 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 very-low-, 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 of governing affordable housing units until such time as title is conveyed from the owner.
§ 430-133 Appeals.
Appeals from all decisions of an Administrative Agent designated pursuant to this Article shall be filed in writing with the City.