Raritan City Zoning Code
ARTICLE XVIII
Inclusionary Developments
§ 207-150 Application procedures.
A.
The applicant shall submit all plans and documents to the Board for site plan review and approval, and the Board shall process the application as required by this chapter. Effort shall be made to expedite or fast track municipal approvals/denials of inclusionary development proposals. The Planning Board shall distribute the plans to those agencies required by law to review and/or approve development plans and to all other municipal agencies which normally review development plans. The failure of a municipal agency to submit a report to the Planning Board shall not extend the time for review and action by the Board.
B.
The development plans submitted shall contain the information ordinarily required for site plan submissions, unless the Board waives a particular requirement as being inapplicable or impracticable.
C.
The technical advisors to the Board shall review the complete application for technical compliance and shall convey comments directly to the applicant's advisors in advance of the public hearing so that, at the time of the public hearing, the applicant will have had sufficient opportunity to resolve any technical problems associated with the submission. Daytime meetings shall be held at the request of the applicant between the Board's advisors and/or the technical coordinating committee and the applicant's advisors for this purpose.
D.
The Planning Board shall hold a public hearing in accordance with N.J.S.A. 40:55D-46.1 on the application. The Planning Board shall take action on the application within the appropriate time periods under N.J.S.A. 40:55D-1 et seq., for preliminary and final approval or for simultaneous preliminary and final approval.
§ 207-151 Affordability.
A.
For inclusionary development included in the Borough's Fair Share Plan on or before January 1, 2001, the maximum average rent and price of low- and moderate-income units within each inclusionary development shall be affordable to households earning 57.5% of median income. Moderate-income sales units shall be available for at least three different prices, and low-income sales units shall be available for at least two different prices.
B.
For projects that meet the average 57.5%, developers and/or municipal sponsors of rental units may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution.
C.
For a new inclusionary development petition included in a new or amended plan adopted on or after January 2, 2001, the maximum rents of low- and moderate-income units within each inclusionary development shall be affordable to households earning no more than 60% of median income. In averaging an affordability range of 52% for rental units, developers and/or municipal sponsors of rental units may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution.
D.
For a new inclusionary development petition included in a new or amended plan adopted on or after January 2, 2001 the maximum sales prices of low- and moderate-income units within each inclusionary development shall be affordable to households earning no more than 70% of median income. In averaging an affordability range of 55% for sales units, the municipal ordinance shall require moderate-income sales units to be available for at least two different prices and low-income sales units to be available for at least two different prices.
§ 207-152 Construction ratios.
A.
An inclusionary development is required to construct low- and moderate-income units according to the minimum area and bedroom distribution ratios set forth below:
(1)
The combination of efficiency and one-bedroom units is at least 10% and no greater than 20% of the total low- and moderate-income units;
(2)
At least 30% of all low- and moderate-income units are two-bedroom units; and
(3)
At least 20% of all low- and moderate-income units are three-bedroom units.
B.
Age-restricted low- and moderate-income units may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development. The standard can be met by creating all one-bedroom units or by creating a two-bedroom unit for each efficiency unit. Applications to waive this standard shall be made in accordance with N.J.A.C. 5:93-15.
§ 207-153 Construction schedule.
Municipalities zoning for inclusionary development shall require low- and moderate-income housing units to be built in accordance with the following schedule:
Minimum Percentage of Low- and Moderate-Income Units Completed | Percentage of Market Housing Units Completed |
|---|---|
0% | 25% |
10% | 25% + 1 unit |
50% | 50% |
75% | 75% |
100% | 90% |
— | 100% |
§ 207-154 Marketing of units.
A.
All inclusionary developments within the Borough shall comply with the requirements of Article XV; however, an inclusionary developer may construct and market the required low- and moderate-income units either for sale or rental, or both, with the choice of tenure and building type at the sole option of the developer.
B.
The administration of affordability controls, which includes the marketing, screening, offering of occupancy and the selection of income-eligible households, shall be at the initial expense of the inclusionary developer. Costs of re-rental shall be borne by the owner. Cost of resale shall be borne by the seller. Special or extraordinary administrative costs shall be borne by the Borough.
C.
Covenants and control on sales and rentals.
(1)
All affordable dwelling units shall be covered by covenant, with the Borough as a party beneficiary, to ensure that, in all initial sales and rentals and in all subsequent resales and re-rentals, the units will continue to remain available and affordable to low- and moderate-income households for which they were intended. All such covenants shall be in accordance with the requirements of COAH and approved by the Borough Attorney.
(2)
The application for the issuance of a certificate of occupancy for any newly designated affordable housing unit shall include certification by the Housing Officer to the Affordable Housing Board documenting the eligibility of the unit and the qualification of the new purchaser and/or occupant as a low- and moderate-income household.
(3)
Prior to any resale or transfer of ownership or change of occupancy of a designated affordable housing unit, application shall be made for a new certificate of occupancy. The application for a certificate of occupancy shall include certification by the Housing Officer to the Affordable Housing Board documenting the continued eligibility of the unit and the qualification of the new purchaser and/or occupant as a low- and moderate-income household.
(4)
All requests for certification shall be made by the seller or owner in writing and in accordance with reasonable documentation procedures, and the Housing Officer shall grant or deny such certification within 30 days of the receipt of such request.
(5)
Deed-restricted rental units ensuring affordability to low- and moderate-income residents may not be converted for sale as condominium or fee simple units, regardless of whether the sale of the converted units shall continue to be restricted as to purchase price and to occupancy of persons meeting the income eligibility standards, as set for the particular unit, until the twenty-year time period of affordability restrictions has passed. This prohibition against deed-restricted rental unit conversion is required for the Borough to receive rental bonus credits.
(6)
The affordable dwelling units shall be designated on the preliminary site plan, shall have compatible exteriors with the market units and shall be located to enjoy comparable access with market units to all common elements within the development. These units shall utilize the same heating source as market units within the inclusionary development.
(7)
Relief. In the event that an affordable unit cannot be sold or rented, as applicable, the owner may apply to the Affordable Housing Board for relief. Relief to the owner shall not include exempting the unit from the required moderate- or low-income sale price or rent level, nor shall relief include exempting the unit from restrictions on escalation allowable upon re-rental. However, the Affordable Housing Board may allow the owner to sell or rent the subject unit to a household whose income exceeds that otherwise required, provided that in no event shall an affordable housing unit be sold or rented to a household earning in excess of 80% of the applicable median income.
D.
Foreclosure.
(1)
An action of foreclosure by a financial institution regulated by state and/or federal law shall extinguish controls on affordable housing units. Notice of foreclosure shall allow the Borough to purchase the affordable housing unit at the maximum permitted sales price.
(2)
In the event of a foreclosure sale, the purchaser of the affordable housing unit shall be obligated to pay to the Borough's housing fund any surplus funds, but only to the extent that such surplus funds exceed the difference between the maximum price permitted at time of foreclosure and the amount necessary to redeem the debt to the financial institution, including foreclosure costs.
§ 207-155 Master deed.
The developer shall prepare a master deed for the inclusionary development which establishes condominium or home ownership fees or special assessments of low- and moderate-income purchasers at 67% of those paid by market purchasers. This 67% is consistent with the requirement of N.J.A.C. 5:93-7.4(e). Once established within the master deed, the percentage shall not be amended without COAH approval.