South Hackensack City Zoning Code
ARTICLE X
Local Affordable Housing Regulations
§ 208-50 Interpretation.
In furtherance of the intent of this article, all terms used herein shall have the definition and meaning as set forth in the COAH Regulations and all provisions herein shall be interpreted in a manner consistent with the COAH Regulations, including future amendments thereto.
§ 208-51 Inclusionary development.
A.
Purpose. This section sets forth the requirements applicable to low- and moderate-income housing units where required to be provided as part of any development of Lots 9, 10 and 10.01 in Block 2.01 as the same appears on the current Tax Assessment Map of the Township of South Hackensack. These provisions are intended to implement and be consistent with the COAH Regulations contained in N.J.A.C. 5:93-7.1 et seq., and any subsequent amendments thereto.
B.
C.
Bedroom distribution.
(1)
Inclusionary developments that are not restricted to senior citizens shall be structured in conjunction with realistic market demands so that:
(a)
The combination of efficiency or studio and one-bedroom units is at least 10% and not greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units are two-bedroom units; and
(c)
At least 20% of all low- and moderate-income units are three bedroom units.
(2)
Low- and moderate-income units restricted to senior citizens may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of senior citizen 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 or studio unit.
D.
Establishing rents and prices of units.
(1)
The initial sales price of a low- and moderate-income owner-occupied housing unit shall be established so that, after a down payment of 5%, the monthly principal, interest, property taxes, insurance and condominium or homeowners’ association fees, if any, do not exceed 28% of eligible gross monthly income for the appropriate household size as set forth in a schedule adopted by COAH.
(2)
For rental units, the rents, including utilities, are to be set so as not to exceed 30% of the of the eligible gross monthly income for the appropriate household size as set forth in a schedule adopted by COAH. The allowance for utilities shall be consistent with the utility allowance approved by the United States Department of Housing and Urban Development for use in New Jersey.
(3)
The following criteria shall be considered in determining maximum rent levels and sales prices:
(5)
Median income by household size shall be determined as established by COAH based on a regional weighted average of the uncapped Section 8 income limits published by the United States Department of Housing and Urban Development or other recognized standard that applies to the housing unit.
(6)
The maximum rents of low- and moderate-income units shall be affordable to households earning no more than 60% of median income. The maximum average rent of low- and moderate-income units shall be affordable to households earning 52.0% of median income. In determining this average, one rent may be used for a low-income unit and one rent may be used for a moderate-income unit for each bedroom distribution.
(7)
The maximum sales prices of low- and moderate-income units shall be affordable to households earning no more than 70% of median income. The maximum average rent of low- and moderate-income units shall be affordable to households earning 55.0% of median income. In determining this average, low-income units must be available for at least two different sales prices and moderate-income units must be available for at least three different sales prices.
(8)
In an inclusionary development, the low- and moderate-income units shall utilize the same heating type or source as the market units.
(9)
If an inclusionary development involves a condominium or homeowners association, the master deed shall provide no distinction between the condominium or homeowners’ association fees or special assessments paid by low- and moderate-income purchasers and those paid by market purchasers.
(10)
Rent levels and sales prices may be adjusted periodically based upon adoption by COAH of revised income limits.
E.
Phasing low- and moderate-income units. In accordance with N.J.A.C. 5:93-5.6(d), low- and moderate-income housing units within inclusionary developments shall be built in accordance with the following schedule:
Minimum Percentage of Low and Moderate Income (units completed) | Maximum Percentage of Market (housing units completed) | |
|---|---|---|
0% | 25% | |
10% | 25% + 1 unit | |
50% | 50% | |
75% | 75% | |
100% | 90% |
§ 208-52 Controls on affordability.
A.
Purpose. This section is intended to implement the provision of Subchapter 9 of the COAH Regulations, N.J.A.C. 5:93-9.17 and N.J.A.C. 5:80-26, which establish regulations designed to provide assurance that low- and moderate-income housing units will remain affordable over time.
B.
Administrative authority. Responsibility for administration and enforcement of this section shall be vested with Madeline Corporation which shall serve as “administrative agent” of the Township, as that term is defined in N.J.A.C. 5:80-26.2. The Madeline Corporation shall have responsibility of ensuring the affordability of sales and rental units, including: affirmative marketing; income qualification of low- and moderate-income households; placing income eligible households in low- and moderate-income units upon initial occupancy; placing income eligible households in low- and moderate-income units as they become available during the period of affordability controls; and enforcing the terms of deed restriction and mortgage loan and any other responsibilities of the administrative agent as specified in N.J.A.C. 5:80-26.14 (a). The sponsor, developer or owners shall be responsible for the administrative fee.
C.
Length of affordability controls. All low- and moderate-income units shall be subject to affordability controls for a period of not less than 30 years consistent with N.J.A.C. 5:93-9.17 and N.J.A.C. 5:80-26.
D.
Form of affordability controls.
(1)
All conveyances of newly constructed low- and moderate-income sales units shall be subject to a deed restriction and mortgage lien in a form consistent with N.J.A.C. 5:80-26.5(c) of the Uniform Housing Affordability Controls.
(2)
All low- and moderate-income rental units shall be subject to appropriate deed restrictions consistent with N.J.A.C. 5:80-26.11(d) of the Uniform Housing Affordability Controls.
(3)
The developer shall be responsible for compliance with deed restrictions and shall submit same to the Township of South Hackensack for review and approval.
§ 208-53 Affirmative marketing.
A.
Purpose. This section is intended to implement and be consistent with Subchapter 11 of the COAH Regulations, N.J.A.C. 5:93-11. It applies to all new developments in South Hackensack that contain proposed low- and moderate-income housing units, including those listed below, and any future developments that may occur.
B.
Administration. The Madeline Corporation shall have the responsibility of administering the affirmative marketing plan as the “administrative agent.” The Township shall act as the liaison to the Madeline Corporation. The Madeline Corporation, also the “administrative agent,” will income qualify low- and moderate-income households; place income eligible households in low- and moderate-income households; place income eligible households in low- and moderate-income units upon initial occupancy; continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls; assist with the advertising and outreach to low- and moderate-income households; and enforce the terms of the deed restriction and mortgage loan in accordance with N.J.A.C. 5:93-9. The Bergen County Department of Community Development will provide housing counselling services to low- and moderate-income applicants on subjects such as budgeting, credit, mortgage qualification, responsibilities of home ownership, rental lease requirements and landlord-tenant law.
C.
Affirmative marketing plan. The developer shall be required to prepare an affirmative marketing plan for the development with low- and moderate-income units. The affirmative marketing plan is a regional marketing strategy designed to attract buyers and or renters, or all majority and minority groups, regardless of sex, age or number of children, to housing units which are being marketed by a developer/sponsor, municipality and/or designated administrative agency of affordable housing. The affirmative marketing plan will address the requirements of N.J.A.C. 5:93-11. In addition, the affirmative marketing plan prohibits discrimination in the sale, rental, financing or other services related to housing on the basis of race, color, sex, religion, handicap, familial status/size or national origin. The Township is in the COAH-established housing region consisting of Bergen, Hudson, Passaic and Sussex Counties. The affirmative marketing plan is a continuing program and will meet the following requirements.
(1)
All newspaper articles, announcements, advertisements and requests for applications for low- and moderate-income units will be submitted to the following newspapers: The Record, Hudson Dispatch, Star-Ledger and Herald News.
(2)
The primary marketing will take the form of at least one press release sent to the above newspapers and a paid advertisement in each of the above newspapers. Additional advertising and publicity will be done on an as-needed basis if necessary to identify a sufficient pool of income eligible households.
(3)
Advertisements in newspapers will include at lease the following information:
(a)
Name of housing development.
(b)
Name of sponsor/developer of the housing.
(c)
Street address and the housing.
(d)
Direction to the housing units.
(e)
Range of affordable selling prices/rents.
(f)
Size of bedroom type of units.
(g)
Applicable household income limits for the unit types offered.
(h)
Location where applications for the units may be requested and submitted, including business address, telephone number, fax number, email address (if available) and Web site (if available).
(4)
All newspapers articles, announcements, advertisements and requests for applications for low- and moderate-income units will be submitted to community-oriented weekly newspapers and appropriate religious publications.
(5)
Applications, brochures, flyers and posters used as part of the affirmative marketing program shall be distributed within the region in several convenient locations, including, at minimum, the municipal administration building, the municipal library, the developer’s sales/rental office, senior center and local places of worship, and the following offices in the housing region: municipal clerks, housing authorities, offices on aging, county libraries, rental assistance office, county welfare or social services board or agency and community action agencies in the housing region.
(6)
Applications shall be mailed to prospective applicants upon request.
(7)
Community organizations will be forwarded information on the availability of units to aid in the affirmative marketing program, with special emphasis on reaching out to households that are least likely to apply for affordable housing within South Hackensack’s housing region.
(8)
A random computer selection method, specifically a lottery after an established publicly announced application deadline, will be used to randomly select occupants.
(9)
The cost of advertising the availability of low- and moderate-income units is the sponsor’s or developer’s responsibility.
(10)
Households who live or work in the COAH-established housing region (Bergen, Hudson, Passaic and Sussex Counties) may be given preference for sales and rental units constructed within South Hackensack. Applicants living outside the housing region will have an equal opportunity for units after regional applicants have been initially serviced. South Hackensack intends to comply with N.J.A.C. 5:93-11.17 on residency preferences.
(11)
Sponsors and developers of low- and moderate-income housing may assist in the marketing of the affordable units.
(12)
The marketing process for available low- and moderate-income units shall begin at least 120 days before the issuance of either temporary or permanent certificates of occupancy. The marketing program will continue until all low- and moderate-income housing units are initially occupied and for as long as affordable units are deed restricted and occupancy or reoccupancy of units continues to be necessary.
(13)
The Township and its administrative agent will comply with the monitoring and reporting requirements of N.J.A.C. 5:93-11.6 and 5:93-12.1.
D.
Marketing for initial sales and rental. Marketing for initial sales and/ or rents of low- and moderate-income units shall be in accordance with N.J.A.C. 5:93-11.4 and N.J.A.C. 5:80-26.15, which establish the procedures to be followed in screening applicants and verifying incomes.
E.
Continuing marketing. Marketing activities to ensure a pool of income-eligible applications shall continue following completion of initial occupancy. Such activities shall be in accordance with the provisions of N.J.A.C. 5:93-11.5.
§ 208-54 COAH development fees.
[Added 12-9-2004 by Ord. No. 2004-24]
A.
Purpose. In Holmdel Builder's Association v. Holmdel Township, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985, N.J.S.A. 52:270-301 et seq. and the State Constitution, subject to the imposition of rules by COAH. The purpose of this section is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's adopted rules. Fees collected pursuant to this section shall be used for the sole purpose of providing low and moderate-income housing. This section shall be interpreted within the framework of COAH's rules on development fees.
B.
Nonresidential development fees. Within a nonresidential development zone, developers shall pay a fee of 2% of the equalized assessed value of any eligible nonresidential activity.
[Amended 7-14-2005 by Ord. No. 2005-06]
C.
Eligible exaction, ineligible exaction and exemptions.
(1)
Developers of low- and moderate-income units shall be exempt from paying development fees.
(2)
Developers of new nonresidential structures, except as excluded herein, shall pay a development fee in the manner prescribed herein.
(3)
Developers that expand an existing nonresidential structure shall pay a development fee. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.
(4)
Developers that have received preliminary or final approval prior to the effective date of this section shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval. Examples of a substantial change include a substantial alteration in site layout or development intensity.
(5)
Developers of any church, library, school, college, governmental facility, hospital for humans or nursing home shall be exempt from paying a development fee.
D.
Collection of fees.
(1)
Developers shall pay 50% of the calculated development fee to the Township of South Hackensack at the issuance of building permits. The development fee shall be estimated by the Tax Assessor prior to the issuance of building permits.
(2)
Developers shall pay the remaining fee to the Township of South Hackensack at the issuance of certificates of occupancy. At the issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at the certificate of occupancy and the amount paid at building permit.
E.
Housing trust fund.
(1)
There is hereby created an interest-bearing housing trust fund with Interchange State Bank for the purposes of receiving development fees from residential and nonresidential developers, which fund shall be maintained by the Chief Financial Officer who shall be responsible for the administration of the housing trust fund and the authorization for any expenditures. All development fees paid by developers pursuant to this section shall be deposited in this fund. No money shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by the Superior Court of COAH.
[Amended 7-13-2006 by Ord. No. 2006-14]
(2)
If the Superior Court or COAH determines that the Township of South Hackensack is not in conformance with COAH's rules on development fees, the Superior Court or COAH is authorized to direct the manner in which all development fees collected pursuant to this section shall be expended. Such authorization is pursuant to this section; COAH's rules on development fees and the written authorization from the governing body to the financial institution that is the depository for the Township housing trust fund. The Township shall execute an escrow agreement with COAH and the financial institution where the housing trust fund is maintained to enable COAH to monitor disbursement of collected development fees and direct the expenditure of development fees, after proper notice, hearing and Court or COAH approval, if the imposition, collection and/or expenditure of fees does not conform with the Development Fee Ordinance, COAH rules or the Court or COAH approved spending plan.
F.
Use of funds.
(1)
Money deposited in a housing trust fund may be used for any activity approved by COAH for addressing the Township of South Hackensack's low- and moderate-income housing obligation. Such activities may include, but are not necessarily limited to, housing rehabilitation, new construction, regional contribution agreements, the purchase of land for low- and moderate-income housing sites, assistance designed to render units to be more affordable to low- and moderate-income people, and administrative costs necessary to implement the Township of South Hackensack's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
(2)
At least 30% of the revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to, down payment assistance, low-interest loans and rental assistance.
(3)
No more than 20% of the revenues collected from development fees shall be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to develop or implement a rehabilitation program, a new construction program, a regional contribution agreement, a housing element and an affirmative marketing program. Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units and compliance with COAH monitoring requirements. Development fees shall not be used to defray the costs of existing staff.
G.
Monitoring. The Township shall complete and return to COAH all monitoring forms related to the collection of development fees, expenditures of revenues and implementation of the spending plan certified by COAH. Quarterly financial reports and annual program implementation and auditing reports shall be completed by the Township on forms designed by COAH.
H.
Penalties.
(1)
In the event that any of the conditions set forth in Subsection H(2) below occur, COAH shall be authorized, on behalf of the Township, to direct the manner in which all development fees collected pursuant to this section shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of COAH upon the Township Clerk's receipt of written notification from COAH that such a condition has occurred. In furtherance of the foregoing, the Township shall, in establishing a bank account pursuant to Subsection F of this section, ensure that the Township has provided whatever express written authorization which may be required by the bank to permit COAH to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Township Clerk.
(2)
Occurrence of the following may result in COAH taking an action pursuant to Subsection H(1) above: failure to submit a spending plan within the time limits imposed by COAH; failure to meet deadlines for information required by COAH in its review of this section, the Township's housing element or spending plan; failure to address COAH's conditions for approval of a plan to spend development fees within the deadlines imposed by COAH; failure to address COAH's condition for substantive certification within the deadlines imposed by COAH; failure to submit accurate monitoring reports within the time limits imposed by COAH; failure to implement the spending plan for development fees within the time limits imposed by COAH, or within reasonable extensions granted by COAH; expenditure of development fees an activities not permitted by COAH; revocation of the Township's judgment of repose or substantive certification; or other good cause demonstrating that the revenues are not being used for the intended purpose.