Source: https://www.ecode360.com/33634001
Timestamp: 2019-04-19 03:01:39+00:00

Document:
§ 88-4 Alternative living arrangements.
§ 88-9 Control periods for restricted ownership units and enforcement mechanisms.
§ 88-10 Price restrictions for restricted ownership units, homeowner association fees and resale prices.
§ 88-11 Buyer income eligibility.
§ 88-12 Limitations on indebtedness secured by ownership unit; subordination.
§ 88-13 Capital improvements to ownership units.
§ 88-14 Control periods for restricted rental units.
§ 88-15 Rent restrictions for rental units; leases.
§ 88-16 Tenant income eligibility.
§ 88-19 Establishment of Municipal Housing Liaison position; compensation; powers and duties.
§ 88-20 Establishment of administrative agent position; powers and duties; compensation.
§ 88-21 Affirmative marketing requirements.
§ 88-22 Enforcement of affordable housing regulations.
§ 88-24 Reporting and monitoring requirements.
Development fees — See Ch. 169.
The Code of the Borough of Rockaway is hereby amended to include provisions addressing Rockaway's constitutional obligation to provide for its fair share of low- and moderate-income housing, as directed by the Superior Court and consistent with N.J.A.C. 5:93-1, et seq., as amended and supplemented, N.J.A.C. 5:80-26.1, et seq., as amended and supplemented, and the New Jersey Fair Housing Act of 1985. This chapter is intended to provide assurances that low- and moderate-income units ("affordable units") are created with controls on affordability over time and that low- and moderate-income households shall occupy those units. This chapter shall apply except where inconsistent with applicable law.
Editor's Note: N.J.S.A. Chapter 93 of the New Jersey Administrative Code expired 10-16-2016.
The Rockaway Borough 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. The Housing Element and Fair Share Plan have been endorsed by the governing body. This chapter implements and incorporates the adopted and endorsed Housing Element and Fair Share Plan and addresses the requirements of N.J.A.C. 5:93-1, et seq., as amended and supplemented, N.J.A.C. 5:80-26.1 et seq., as amended and supplemented, and the New Jersey Fair Housing Act of 1985.
The entity designated by the Borough to administer affordable units in accordance with this chapter, N.J.A.C. 5:93, and UHAC (N.J.A.C. 5:80-26).
A development included in or approved pursuant to the Housing Element and Fair Share Plan or otherwise intended to address the Borough's fair share obligation, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100-percent-affordable housing development.
The primary structural, mechanical, plumbing, electrical, fire protection, or occupant service components of a building which include but are not limited to: weatherization, roofing, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement and load-bearing structural systems.
The Agency's Market Oriented Neighborhood Investment Program, as it may be authorized from time to time by the Agency.
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.
The Urban Home Ownership Recovery Program.
Editor's Note: See N.J.A.C. 5:23-14.
The provisions of this chapter shall apply to all affordable housing developments and affordable housing units that currently exist and that are proposed to be created within the Borough of Rockaway pursuant to the Borough's most recently adopted Housing Element and Fair Share Plan.
Where the developer is able to demonstrate that a set-aside of 20% would warrant the project economically infeasible, the developer should submit an economic analysis and pro forma to the Borough for review. A real estate analysis expert hired by the Borough through escrow funds provided by the developer will evaluate the proforma and determine if the claim of economic infeasibility is valid. In the event that the Borough's review agrees with the developer, the Borough will permit a set-aside of 15%.
The following sections shall apply to all developments that contain low- and moderate-income housing units, including any currently unanticipated future developments that will provide low- and moderate-income housing units.
Rental units. In inclusionary developments, all affordable units shall be family rental units.
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. At least 13% of all restricted rental units shall be very-low-income units (affordable to a household earning 30% or less of median income). The very-low-income units shall be counted as part of the required number of low-income units within the development. At least 25% of the obligation shall be met through rental units, including at least half in rental units available to families. A maximum of 25% may be age-restricted.
The remaining two- and three-bedroom units may be allocated at the discretion of the developer and Borough.
To this end, the builder of restricted units shall deposit funds within the Borough of Rockaway's Affordable Housing Trust Fund sufficient to install accessible entrances in 10% of the affordable units that have been constructed with adaptable entrances.
The funds deposited under Subsection B(2)(f) above shall be used by the Borough of Rockaway for the sole purpose of making the adaptable entrance of an 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.
The developer of the restricted units shall submit a design plan and cost estimate to the Construction Official of the Borough of Rockaway for the conversion of adaptable to accessible entrances.
Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meets 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 Borough's Affordable Housing Trust Fund in care of the Borough Chief Financial Officer, who shall ensure that the funds are deposited into the Affordable Housing Trust Fund and appropriately earmarked.
The developers and/or municipal sponsors of restricted rental units shall establish at least one rent for each bedroom type for both low-income and moderate-income units, provided that at least 13% of all low- and moderate-income rental units shall be affordable to very-low-income households, earning 30% or less of the regional median household income.
For sale. Any project not associated with a specific density or affordable housing requirement as outlined in a specific zone or redevelopment plan shall be required to provide a set-aside of 20% for affordable housing. Where a developer is able to demonstrate that a set-aside of 20% would warrant the project economically infeasible, the developer should submit economic analysis and pro forma to the Borough for review. A real estate analysis expert hired by the Borough through escrow funds provided by the developer will evaluate the pro forma and determine if the claim of economic infeasibility is valid. In the event the Borough's review agrees with the developer, the Borough will permit a set-aside of 15%.
Rental developments. Any project not associated with a specific density or affordable housing requirement as outlined in a specific zone or redevelopment plan shall be required to provide a set-aside of 15% for affordable housing. Where a developer is able to demonstrate that a set-aside of 15% would warrant the project economically infeasible, the developer should submit economic analysis and pro forma to the Borough for review. A real estate analysis expert hired by the Borough through escrow funds provided by the developer will evaluate the pro forma and determine if the claim of economic infeasibility is valid. In the event the Borough's review agrees with the developer, the Borough will permit a set-aside of 10%.
A project shall not be subdivided into two or more lots so as to fall below the threshold or avoid the set-aside requirement by taking multiple actions.
Control periods for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.5, as may be amended and supplemented, and each restricted ownership unit shall remain subject to the requirements of this chapter for a period of at least 30 years, until Rockaway takes action to release the unit from such requirements; prior to such action, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented.
At the time of the initial sale of the unit, the initial purchaser shall execute and deliver to the administrative agent 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 restrictions set forth in this chapter, an amount equal to the difference between the unit's nonrestricted 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 owners of restricted ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of anticipated capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. See § 93-14.
Notwithstanding the foregoing, however, the administrative agent may, upon approval by the Borough Council, and subject to the Court's approval, permit moderate-income purchasers to buy low-income units in housing markets if the administrative agent determines that there is an insufficient number of eligible low-income purchasers to permit prompt occupancy of the units. All such low-income units to be sold to moderate-income households shall retain the required pricing and pricing restrictions for low-income units.
Control periods for restricted rental units shall be in accordance with N.J.A.C. 5:80-26.11, as may be amended and supplemented, and each restricted rental unit shall remain subject to the requirements of this chapter for a period of at least 30 years, until Rockaway takes action to release the unit from such requirements. Prior to such action, a restricted rental unit must remain subject to the requirements of N.J.A.C. 5:80-26.1, as may be amended and supplemented. For new projects receiving nine-percent low-income housing tax credits, a control period of not less than a thirty-year compliance period plus a fifteen-year extended use period shall be required.
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 Morris. The deed shall also identify each affordable unit by apartment number and/or address and whether that unit is designated as a very-low-, low- or moderate-income unit. Neither the unit nor its affordability designation shall change throughout the term of the deed restriction. A copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.
The purpose of this article is to create the administrative mechanisms needed for the execution of the Borough of Rockaway's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985.
The entity responsible for administering the affordability controls of some or all units in the affordable housing program for the Borough of Rockaway to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households.
The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for the Borough of Rockaway.
The Borough of Rockaway shall appoint a specific municipal employee to serve as a Municipal Housing Liaison responsible for administering the affordable housing program, including affordability controls, the Affirmative Marketing Plan, monitoring and reporting, and, where applicable, supervising any contracted administrative agent. Rockaway shall adopt a resolution appointing a Municipal Housing Liaison.
The Municipal Housing Liaison shall be appointed by the Mayor and Council and may be a full- or part-time municipal employee.
Compensation. Compensation shall be fixed by the Mayor and Council at the time of the appointment of the Municipal Housing Liaison.
The Municipal Housing Liaison shall be approved by the Court and shall be duly qualified through a training program sponsored by Affordable Housing Professionals of New Jersey before assuming the duties of Municipal Housing Liaison.
If applicable, serving as the administrative agent for some or all of the restricted units in the Borough of Rockaway as described in Subsection F below.
Subject to approval by the Court, the Borough of Rockaway may designate one or more administrative agent(s) to administer newly constructed affordable units in accordance with UHAC. An Operating Manual for each affordable housing program shall be provided by the administrative agent(s) to be adopted by resolution of the governing body and subject to approval of the Court. The operating manual(s) shall be available for public inspection in the office of the Borough Clerk, in the office of the Municipal Housing Liaison, and in the office(s) of the administrative agent(s). If the Borough of Rockaway contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and affirmative marketing plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.
Employing a random selection process as provided in the Affirmative Marketing Plan of the Borough of Rockaway when referring households for certification to affordable units.
Instituting and maintaining an effective means of communicating information to low- and moderate-income households regarding the availability of restricted units for resale or rental.
Creating and publishing a written operating manual for each affordable housing program administered by the administrative agent, to be approved by the Borough Council and the Court, setting forth procedures for administering such affordability controls.
Compensation. Compensation shall be fixed by the Mayor and Council at the time of the appointment of the administrative agent.
The Borough of Rockaway shall adopt by resolution an Affirmative Marketing Plan, subject to approval of the Court, that is compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented.
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 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 marketing activities toward Housing Region 2 and is required to be followed throughout the period of restriction.
The Affirmative Marketing Plan shall provide a regional preference for all households that live and/or work in Housing Region 2, comprised of Essex, Morris, Union, and Warren Counties.
The municipality has the ultimate responsibility for adopting the Affirmative Marketing Plan and for the proper administration of the Affirmative Marketing Program, including initial sales and rentals and resales and rerentals. The administrative agent designated by the Borough of Rockaway shall implement the Affirmative Marketing Plan to assure the affirmative marketing of all affordable units.
Applications for affordable housing shall be available in several locations, including, at a minimum, the county administration building and/or the county library for each county within the housing region; the municipal administration building and the municipal library in the municipality in which the units are located; and the developer's rental office. Pre-applications shall be emailed or mailed to prospective applicants upon request.
On the first anniversary of the entry of the Order granting the Borough a Final Judgment of Compliance and Repose, and every anniversary thereafter, through the end of the Repose period, the Borough shall provide annual reporting of its Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs, Council on Affordable Housing or Local Government Services, or such other entity designated by the State of New Jersey, with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway, Docket No.: MRS-L-1671-15, and posted on the municipal website, using forms developed for this purpose by the New Jersey Department of Community Affairs, Council on Affordable Housing or Local Government Services. The reporting shall include an accounting of all Affordable Housing Trust Fund activity, including the source and amount of funds collected and the amount and purpose for which any funds have been expended.
On the first anniversary of the entry of the Order granting the Borough a Final Judgment of Compliance and Repose, and every anniversary thereafter, through the end of the Repose period, the Borough shall provide annual reporting of the status of all affordable housing activity within the Borough through posting on the Borough website with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway Docket No.: MRS-L-1671-15, using forms previously developed for this purpose by the Council on Affordable Housing or any other forms endorsed by the Court-appointed Special Master and Fair Share Housing Center.
For the midpoint realistic opportunity review due on July 1, 2020, as required pursuant to N.J.S.A. 52:27D-313, the Borough shall post on its Borough website, with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway, Docket No.: MRS-L-1671-15, a status report as to its implementation of its Plan and an analysis of whether any unbuilt sites or unfulfilled mechanisms continue to present a realistic opportunity. Such posting shall invite any interested party to submit comments to the Borough, with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway, Docket No.: MRS-L-1671-15, regarding whether any sites no longer present a realistic opportunity and should be replaced. Any interested party may, by motion, request a hearing before the Court regarding these issues.
For the review of very-low-income housing requirements required by N.J.S.A. 52:27D-329.1, within 30 days of the third anniversary of the entry of the Order granting the Borough a Final Judgment of Compliance and Repose, and every third year thereafter, the Borough shall post on its Borough website, with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway, Docket No.: MRS-L-1671-15, a status report as to its satisfaction of its very-low-income requirements, including the family very-low-income requirements referenced herein. Such posting shall invite any interested party to submit comments to the Borough with copies provided to Fair Share Housing Center and the Intervenors in IMO Application of the Borough of Rockaway, Docket No.: MRS-L-1671-15, on the issue of whether the municipality has complied with its very-low-income housing obligation.

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