Toms River City Zoning Code

At least half of all affordable units within each development shall be affordable to low-income households, except that where there is an odd number of affordable housing units, the extra unit shall be a low-income unit;

At least half of all affordable rental units shall be affordable to low-income households, except that where there is an odd number of affordable housing units, the extra unit shall be a low-income unit; and

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.

At least 13% rounded up to the nearest whole number 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. The very-low-income units shall be distributed between each bedroom count as proportionally as possible, to the nearest whole unit, to the total number of restricted units within each bedroom count, and counted as part of the required number of low-income units within the development.

Efficiency units shall be affordable to a one-person household;

One-bedroom units shall be affordable to one-and-one-half-person households;

Two-bedroom units shall be affordable to three-person households;

Three-bedroom units shall be affordable to four-and-one-half-person households;

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;

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. The procedure for computing the regional median income is detailed in N.J.A.C. 5:80-26.3;

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;

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;

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.

At a minimum, 30% of all low- and moderate-income units shall be two-bedroom units;

At a minimum, 20% of all low- and moderate-income units shall be three-bedroom units;

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;

The remaining units may be allocated among two- and three- bedroom units at the discretion of the developer; and

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.

Affordable housing developments that are age-restricted or supportive housing, except those supportive housing units whose sponsoring program determines the unit arrangements, shall be structured such that, at a minimum, the number of bedrooms shall equal the number of age-restricted or supportive housing low- and moderate-income units within the inclusionary development. Supportive housing units whose sponsoring program determines the unit arrangement shall comply with all requirements of the sponsoring program. The standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit. In affordable housing developments with 20 or more restricted units that are age-restricted or supportive housing, two-bedroom units must comprise at least 5% of those restricted units.

Design of 100% affordable developments:

Design of developments comprising market-rate rental units and restricted rental units. The following does not apply to prior round units, unless stated otherwise.

Design of developments containing for-sale units, including those with a mix of rental and for-sale units. Restricted rental units shall meet the requirements of Subsection G(2) above. Restricted sale units shall comply with the below:

Utilities.

The AH administrator shall designate an application period during which applications to purchase or rent affordable housing units will be accepted.

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.

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:

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.

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.

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:

Administrative agents shall use the current regional income limits for the purpose of pricing affordable units and determining income eligibility of households.

Regional income limits are based on regional median income, which is established by a regional weighted average of the "median family incomes" published by HUD. The procedure for computing the regional median income is detailed in N.J.A.C. 5:80-26.3.

Updated regional income limits are effective as of the effective date of the regional Section 8 income limits for the year, as published by HUD, or 45 days after HUD publishes the regional Section 8 income limits for the year, whichever comes later. The new income limits may not be less than those of the previous year.

For purposes of determining income and eligibility, the AH administrator shall consider:

Buyer income eligibility for restricted ownership units shall be established pursuant to N.J.A.C. 5:80-26.17, as may be amended and supplemented, such that very low-income ownership units shall be reserved for occupancy by households with a gross household income less than or equal to 30% of median income, low-income ownership units shall be reserved for occupancy by households with a gross household income less than or equal to 50% of median income and moderate-income ownership units shall be reserved for occupancy by households with a gross household income less than 80% of median income.

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 35% of the household's certified monthly income.

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.

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).

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:

The applicant shall file documentation sufficient to establish the existence of the circumstances in Subsection I(8)(a) through (e) above with the AH administrator, who shall counsel the household on budgeting.

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:

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.

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.

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.

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.

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.

In establishing rents and sales prices of affordable housing units, the Administrative Agent shall follow the procedures set forth in UHAC N.J.A.C. 5:80-26.4.

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.

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.

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.

At least 13% of all low- and moderate-income rental units shall be affordable to households earning no more than 30% of median income.

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.

No additional fees, operating costs, 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.

Any fee structure that would remove or limit affordable unit occupant access to any amenities or services that are required or included for market-rate unit occupants is prohibited. Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable affordable unit and are payable to the administrative agent to be applied to the costs of administering the controls in this section as applicable to the unit. Fees for truly optional, unit-specific, non-communal items that are charged to market-rate tenants on an optional basis, such as pet fees for tenants with pets, storage spaces, bicycle-share programs, or one-time rentals of party or media rooms, may be charged to affordable tenants, if applicable. Pet fees may not exceed $30 per month and associated one-time payments for optional fees pertaining to pets, such as a pet cleaning fee, are prohibited. Fees for other optional, unit-specific, non-communal items may not exceed the amounts charged to market-rate tenants.

For any prior round rental unit leased before December 20, 2024, elements of the existing fee structure that are consistent with prior rules, but inconsistent with Subsection L(8) above, may continue until December 20, 2025, or until the occupant household's current lease term expires or that occupant household vacates the unit, whichever occurs later.

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 grant of exemption shall not eliminate the resale control restriction set forth in these regulations.

Control periods for affordable ownership units shall be in accordance with N.J.A.C. 5:80-26.6, and each affordable ownership unit shall remain subject to the controls on affordability for a period of at least 30 years, subject to the requirements of N.J.A.C. 5:80-26.6, as may be amended and supplemented.

If existing affordability controls are being extended, the extended control period for a restricted ownership unit commences on the effective date of the extension, which is the end of the original control period.

Control periods for affordable rental units shall be in accordance with N.J.A.C. 5:80-26.12.

Control periods for units that meet the definition of prior round units shall be pursuant to the 2001 UHAC rules originally adopted October 1, 2001, 33 N.J.R. 3432, and amended December 20, 2004, 36 N.J.R. 5713 and shall remain subject to the requirements of this ordinance for a period of at least 30 years as applicable unless otherwise indicated.

Other than for prior round units, control periods for restricted rental units shall be in accordance with N.J.A.C. 5:80-26.12, as may be amended and supplemented, and each restricted rental unit shall remain subject to the requirements of this Ordinance for a period of at least 40 years. Restricted rental units created as part of developments receiving 9% Low-Income Housing Tax Credits must comply with a control period of not less than a 30-year compliance period plus a 15-year extended use period for a total of 45 years.

The affordability control period for a restricted rental unit shall commence on the first date that a unit is issued a certificate of occupancy following the execution of the deed restriction or, if affordability controls are being extended, on the effective date of the extension, which is the end of the original control period.

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.

The affordability control period for an affordable ownership unit shall commence on the date the initial certified household takes title to the unit. The date of commencement shall be identified in the deed restriction.

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.

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.

An affordable rental unit shall remain subject to the affordability controls of this article, despite the occurrence of any of the following events:

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 statutorily upheld existing regulations of COAH and the requirements and standards established by the Uniform Housing Affordability Controls ("UHAC"), N.J.A.C. 5:80-26.1 et seq.

After the end of any control period, the restricted ownership unit remains subject to the affordability controls set forth in this subsection until the owner gives notice of their intent to make an exit sale, at which point:

Prior to the issuance of any building permit for the construction/rehabilitation of restricted ownership units, the developer/owner and the Township shall record a preliminary instrument provided by the Administrative Agent.

Prior to the issuance of the initial certificate of occupancy for a restricted ownership unit and upon each successive sale during the period of restricted ownership, the Administrative Agent shall determine the restricted price for the unit and shall also determine the nonrestricted, fair market value of the unit based on either an appraisal or the unit's equalized assessed value without the restrictions in place.

At the time of the initial sale of the unit and upon each successive price-restricted sale, the initial purchaser shall execute and deliver to the Administrative Agent a recapture note obliging the purchaser, as well as the purchaser's heirs, successors, and assigns, to repay, upon the first non-exempt sale after the unit's release from the restrictions set forth in this article, an amount equal to the difference between the unit's non-restricted fair market value and its restricted price, and the recapture note shall be secured by a recapture lien evidenced by a duly recorded mortgage on the unit.

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 price-restricted ownership units.

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.

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.

No low- and moderate-income unit may be occupied by an initial purchaser or resale purchaser without a certificate of occupancy.