Toms River City Zoning Code
§ 348-11.3 Low
and moderate-income housing requirements.
A.
Building permits. No building permit(s) shall be issued for any development on an affordable housing (AH) site unless the developer's affordable housing plan has been approved by the AH administrator.
B.
Toms River Township's fair share obligation will be divided equally between low- and moderate-income households, except that where there is an odd number of affordable housing units, the extra unit shall be a low-income unit.
C.
Except for developments constructed pursuant to low-income tax credit regulations:
(1)
At least half of all affordable units within each development shall be affordable to low-income households;
(2)
At least half of all affordable rental units shall be affordable to low-income households; and
(3)
At least 50% of all affordable units in each bedroom distribution pursuant to N.J.A.C. 5:80-26.3(a) shall be affordable to low-income households.
(4)
At least 13% of all affordable housing units approved and constructed after July 1, 2008, shall be affordable to very-low-income households with incomes at no more than 30% of the median income pursuant to N.J.S.A. 52:27D-329.1.
D.
The following criteria shall be used in determining maximum rents and sales prices:
(1)
Efficiency units shall be affordable to a one-person household;
(2)
One-bedroom units shall be affordable to one-and-one-half-person households;
(3)
Two-bedroom units shall be affordable to three-person households;
(4)
Three-bedroom units shall be affordable to four-and-one-half-person households;
(5)
For affordable units in assisted living facilities, a studio or efficiency unit shall be affordable to a one-person household; a one-bedroom unit shall be affordable to a one-and-one-half-person household; a two-bedroom unit shall be affordable to a two-person household or to two one-person households;
(6)
Median income by household size for Ocean County shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD as annually adopted by COAH or approved by the New Jersey Superior Court;
(7)
The maximum sales prices of low- and moderate-income units within each affordable development shall be affordable to households earning no more than 70% of median income. Each affordable development must achieve an affordability average of 55% for affordable sales units. In achieving this average 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 for each bedroom type;
(8)
For both owner-occupied and rental units, the low- and moderate-income units shall utilize the same heating source as market units within an inclusionary development;
(9)
Low-income units shall be reserved for households with a gross household income less than or equal to 50% of the median income; moderate-income units shall be reserved for households with a gross household income less than 80% of the median income; very-low-income units shall be reserved for households with a gross household income less than or equal to 30% of the median income.
E.
Bedroom distribution. Affordable, non-age-restricted housing developments shall have the following distribution of bedroom types:
(1)
At a minimum, 30% of all low- and moderate-income units shall be two-bedroom units;
(2)
At a minimum, 20% of all low- and moderate-income units shall be three-bedroom units;
(3)
The combination of efficiency and one-bedroom units shall be at least 10% and no greater than 20% of the total low- and moderate-income units; and
(4)
Low- and moderate-income units that are age-restricted may utilize a modified bedroom distribution. At a minimum, the number of bedrooms will 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.
Unit location. Affordable housing units in inclusionary developments shall be situated on the development tract in locations no less desirable than market priced dwelling units within the development, and shall be equally accessible to common open space, community facilities and shopping facilities.
G.
Phasing. Approval of the developer's affordable housing plan shall be contingent upon the inclusionary development, whether if developed in one stage or in two or more stages, meeting the following phasing schedule:
Minimum Percentage of Low/Moderate-Income Units Completed | Maximum Percentage of Market Housing Units Completed |
|---|---|
0 | 25 |
10 | 25 plus 1 unit |
50 | 50 |
75 | 75 |
100 | 90 |
H.
Occupancy section.
(1)
The AH administrator shall designate an application period during which applications to purchase or rent affordable housing units will be accepted.
(2)
Applications shall be accepted only if submitted on an application form prepared and/or approved by the AH administrator. Applications shall be completely filled out and notarized. Knowingly or intentionally making any false statement on a form shall be grounds for disqualifying an applicant even if the applicant is otherwise eligible.
(3)
The AH administrator shall secure all information from applicant households necessary and appropriate to determine that affordable units are occupied by properly sized households with appropriate low- or moderate-income levels in accordance with N.J.A.C. 5:80-26.16. Income verification documentation may include, but is not limited to, the following for each and every member of a household who is 18 years of age or older:
(a)
A copy of federal and state tax returns for each of the three years prior to the date of the application.
(b)
A letter from all employers stating present annual income or four consecutive pay stubs dated within 120 days of the interview date.
(c)
A letter or appropriate reporting form verifying benefits, including but not limited to social security or pension.
(d)
A letter or appropriate reporting form verifying any other sources of income claimed by the applicant household.
(e)
Reports that verify income from assets to be submitted by banks or other financial institutions managing trust funds, money market accounts, stocks or bonds.
(f)
Reports that verify assets that do not earn regular income such as real estate and savings with delayed earning provisions.
(4)
The AH administrator shall determine whether the applicant meets the income and other requirements established in these regulations. The review process for a prospective purchaser shall involve a credit background report. To be an eligible applicant, the applicant shall have an acceptable credit history such that there is a realistic possibility that he will be approved for a mortgage.
(5)
Waiting list. The AH administrator may establish a waiting list for the remaining eligible applicants that will be maintained in accordance with the provisions of N.J.A.C. 5:80-26 et seq. After all the units are occupied, the AH administrator may choose to accept new applications. If an applicant is deemed eligible, the applicant shall be placed on the waiting list at the bottom of the particular priority classification for which the applicant qualifies. The AH administrator shall periodically recertify the applicants on the waiting list to ensure that the list remains current and that the applicants are still qualified for the units to which they applied.
(6)
In referring certified households to specific affordable units, to the extent feasible, and without causing an undue delay in occupying the unit, the AH administrator shall strive to:
I.
Income eligibility standards.
(1)
Income limits for low- and moderate-income units for various sized households shall be established by the AH administrator based upon the regional income limits by household size for Ocean County as adopted by COAH or approved by the New Jersey Superior Court. No applicant with a household income in excess of these ceilings shall be eligible to rent or purchase the low- and moderate-income units.
(2)
Upon annual adoption of updated regional income limits by COAH or upon approval of updated regional income limits by the New Jersey Superior Court, the AH administrator shall modify its income limits accordingly.
(3)
For purposes of determining income and eligibility, the AH administrator shall consider:
(a)
All sources of income, whether taxable or nontaxable, including social security and pensions.
(b)
Imputed income. For the purpose of determining eligibility and rents, interest on the present value of real property and extraordinary personal property owned by the applicant shall be imputed and deemed additional income. Interest shall be imputed at the average interest rate on money market accounts in the region as determined by the AH administrator.
(c)
The income and assets of all members of the household as well as the income and assets of any individual who is expected to occupy the unit for which the household is seeking to qualify shall be included in the determination of eligibility and of rents. The form used for verification of household income shall include an affidavit attesting that the application contains the complete income of all current or anticipated household members.
(4)
Buyer income eligibility for affordable ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such that low-income ownership units shall be reserved for households with a gross household income less than or equal to 50% of median income and moderate-income ownership units shall be reserved for households with a gross household income less than 80% of median income.
(5)
The AH administrator shall certify a household as eligible for an affordable ownership unit when the household is a low-income household or a moderate-income household, as applicable to the unit, and the estimated monthly housing cost for the particular unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees, as applicable) does not exceed 33% of the household's certified monthly income.
(6)
Prior to incurring any indebtedness to be secured by an affordable ownership unit, the AH administrator shall determine in writing that the proposed indebtedness complies with the provisions of this section.
(7)
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 an affordable ownership unit to exceed 95% of the maximum allowable resale price of that unit, as such price is determined by the AH administrator in accordance with N.J.A.C. 5:80-26.6(b).
(8)
The AH administrator shall certify a household as eligible for an affordable rental unit when the household is a very-low-income, low-income household or a moderate-income household, as applicable to the unit, and the rent proposed for the unit does not exceed 35% (40% for age-restricted units) of the household's eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended and supplemented; provided, however, that this limit may be exceeded if one or more of the following circumstances exists:
(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 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.
J.
Sales prices.
(1)
The initial purchase price for an affordable ownership unit shall be approved by the AH administrator. Sales prices shall be considered affordable where 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), property taxes (based on the restricted value of the low- and moderate-income unit), homeowner and private mortgage insurance and condominium or homeowner association fees will not exceed 28% of the eligible monthly household income of the appropriate size household as determined under N.J.A.C. 5:80-26.4. In making these calculations, the following considerations shall govern:
(a)
Property taxes shall be determined by applying the equalized property tax rate in Toms River Township currently in effect to the proposed selling price of the unit;
(b)
The developer shall use the best available assumptions to determine the insurance and homeowners' association fees to be applied to the units, subject to the approval of the AH administrator as to reasonableness only for use in this calculation. 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; and
(c)
Master deeds of inclusionary developments shall regulate condominium or homeowners' associations fees or special assessments of low- and moderate-income purchasers of 100% of those paid by market purchasers consistent with the requirements of N.J.A.C. 5:80-26.6(e). Once established with a master deed, the 100% will not be amended without prior approval from COAH or the New Jersey Superior Court.
(2)
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.
(3)
All resale transactions of affordable housing units shall be administered by the AH administrator. The AH administrator shall approve all resale prices, in writing and in advance of the resale.
(4)
Prior to the issuance of the initial certificate of occupancy for an affordable ownership unit and upon each successive sale during the period of restricted ownership, the AH administrator shall determine the affordable 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.
(5)
At the time of the first sale of the unit, the purchaser shall execute and deliver to the AH administrator a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first nonexempt sale after the unit's release from the requirements of this article, an amount equal to the difference between the unit's nonrestricted fair market value and its affordable price, and the recapture note shall be secured by a recapture lien evidenced by a duly recorded mortgage on the unit.
(6)
An affordable ownership unit shall be required to obtain a certificate of reoccupancy 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.
K.
Rental prices.
(1)
For rental units, developers and/or municipal sponsors shall establish at least one rent for a low-income unit and at least one for a moderate-income unit for each bedroom distribution.
(2)
Gross rent for rental units, including an allowance for tenant-paid utilities, shall be established so as to not exceed 30% of the eligible monthly income of the appropriate household size as per N.J.A.C. 5:80-26.4. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and the tenant-paid utility allowance shall be consistent with the utility allowance approved by DCA for its Section 8 program.
(3)
The maximum rents of low- and moderate-income units within each affordable development shall be affordable to households earning no more than 60% of median income. The average rent for restricted low- and moderate-income units shall be affordable to households earning no more than 52% of median income.
(4)
At least 13% of all low- and moderate-income rental units shall be affordable to households earning no more than 30% of median income.
(5)
A written lease is required for all affordable 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 AH administrator.
(6)
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 AH administrator.
(7)
Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable affordable unit.
L.
Exempt sales.
(1)
The following transactions shall be deemed non-sales for the purpose of this article. The owner of the affordable unit shall be entitled to a statement of exemption from the AH administrator upon application.
(a)
Transfer of an affordable housing unit between husband and wife.
(b)
Transfer of ownership of an affordable housing unit between former spouses as a result of a judicial decree, judgment or order of divorce, but not including sales to third parties.
(c)
Transfer of ownership of an affordable housing unit between family members as a result of inheritance.
(d)
Transfer of ownership of an affordable housing unit through an order of the Superior Court.
(2)
A grant of exemption shall not eliminate the resale control restriction set forth in these regulations.
M.
Rental increases. All rerental transactions shall be administered by the AH administrator. The rents of affordable housing units may increase annually based on the percentage increase in the Housing Consumer Price Index for the United States. This increase shall not exceed 9% in any one year. Rents for units constructed pursuant to low-income housing tax credit regulations shall be indexed pursuant to the regulations governing low-income housing tax credits.
N.
Exemption from rent control ordinances. All rental units, both market and affordable, shall not be subject to any rent control ordinance which may be adopted in the Township of Toms River during the time period in which affordable housing price controls are effective.
O.
Duration of controls.
(1)
Control periods for affordable ownership units shall be in accordance with N.J.A.C. 5:80-26.5, and each affordable ownership unit shall remain subject to the controls on affordability for a period of at least 30 years.
(2)
Control periods for affordable rental units shall be in accordance with N.J.A.C. 5:80-26.11, and each affordable rental unit shall remain subject to the controls on affordability for a period of at least 30 years.
(3)
All units for owner-occupied rehabilitation subject to the Toms River Township Housing Rehabilitation Program shall be subject to affordability controls for a period of at least 10 years. Renter-occupied rehabilitated housing units that are improved to code standards shall be subject to affordability controls for at least 10 years.
(4)
The affordability control period for an affordable ownership unit shall commence on the date the initial certified household takes title to the unit.
(5)
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.
(6)
Deeds of all real property that include affordable rental units shall contain deed restriction language. The deed restriction shall have priority over all mortgages on the property, and the deed restriction shall be filed by the developer or seller with the records office of the County of Ocean. A copy of the filed document shall be provided to the AH administrator within 30 days of the receipt of a certificate of occupancy.
(7)
An affordable rental unit shall remain subject to the affordability controls of this article, despite the occurrence of any of the following events:
(8)
All affordable dwelling units shall be covered by covenants to ensure that in all initial sales and rentals, and in all subsequent resales and rerentals, the units will continue to remain available and affordable to the low- and moderate-income households for which they were intended for the period specified in this subsection in accordance with the requirements and standards established by COAH and the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq.
(a)
Expiration of controls. The Township reserves the right, in its sole discretion, to extend affordability controls on any unit which has affordable housing controls that are about to expire, in accordance with UHAC regulations, including N.J.A.C. 5:80-26.1 et seq., including Section 5:80-26.21 for the implementation of the 95/5 option.
P.
Second mortgages. No second mortgage shall be placed upon the property without the prior written approval of the AH administrator. In determining whether to grant an approval for the second mortgage, the AH administrator shall consider the need for the second mortgage and the impact that the second mortgage shall have upon the ability to maintain the unit as a low- and moderate-income unit. Under no circumstances shall a foreclosure of a second mortgage constitute grounds for eliminating the resale controls provided for in this regulation. Prior written approval shall be denied unless second mortgages are specifically authorized by COAH regulations and the application is consistent with those regulations.
Q.
Capital improvements. Property owners of single-family, owner-occupied housing may apply to the AH administrator for permission to increase the maximum sales price for eligible capital improvements in accordance with N.J.A.C. 5:80-26.9. 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. Property owners shall apply to the AH administrator if an increase in the maximum sales price is sought.
R.
Sale of personal items. Items of personal property which are not permanently affixed to the unit (e.g., refrigerator, freezer, washer, dryer) and which were not included when the affordable housing unit was purchased may be the subject of separate negotiations between the parties subsequent to the signing of the contract for the purchase of the house. Any agreed price for the purchase of any item or items of personal property shall be reasonable considering the original cost, nature, age and condition of the item. The price to be paid for items of personal property shall not be used as a mechanism to avoid or circumvent the limitations on the resale price of unit itself. In no event shall the right to purchase the unit be conditioned upon the buyer's willingness to agree to purchase any item or items of personal properties of the seller.
S.
Certificate of occupancy.
(1)
No certificate of occupancy for a low- or moderate-income unit shall be issued until the developer shall have submitted and have approved by the Township Attorney a deed restriction encompassing all the provisions of these regulations.
(2)
No certificate of occupancy shall be issued for the resale of a low- or moderate-income unit unless the AH administrator shall certify that the resale complies with the terms of these regulations.
(3)
No low- and moderate-income unit may be occupied by an initial purchaser or resale purchaser without a certificate of occupancy.