Source: https://www.ecode360.com/12547976
Timestamp: 2019-05-26 23:52:16
Document Index: 87525050

Matched Legal Cases: ['§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47', '§ 47']

Township of Harmony, NJ Affordable Housing Development Fees and Obligations
Ch 47 Art I Affordable Housing Development Fees
§ 47-1 Purpose; legislative authority; interpretation.
§ 47-2 Basic requirements.
§ 47-3 Definitions.
§ 47-4 Residential development fees.
§ 47-5 Nonresidential development fees.
§ 47-6 Collection procedures.
§ 47-7 Affordable Housing Trust Fund.
§ 47-8 Use of funds.
§ 47-9 Monitoring.
§ 47-10 Ongoing collection of fees.
§ 47-11 through § 47-12. (Reserved)
Ch 47 Art II Affordable Housing Obligation
§ 47-13 Intent; Fair Share Plan; monitoring reports.
§ 47-14 Municipal fair share obligation.
§ 47-15 Definitions.
§ 47-16 Affordable housing programs.
§ 47-17 Rehabilitation.
§ 47-18 Permanent supportive-living and supportive-shared-living housing (special needs housing).
§ 47-19 One-hundred-percent affordable housing developments.
§ 47-20 New affordable housing unit construction.
§ 47-21 Accessory apartments.
§ 47-22 Utilities.
§ 47-23 Occupancy standards.
§ 47-24 Control periods for restricted ownership units; enforcement mechanisms.
§ 47-25 Price restrictions; homeowner association fees; resale prices.
§ 47-26 Buyer income eligibility.
§ 47-27 Limitations on secured indebtedness; subordination.
§ 47-28 Capital improvements to ownership units.
§ 47-29 Control periods for restricted rental units.
§ 47-30 Rent restrictions for rental units; leases.
§ 47-31 Tenant income eligibility.
§ 47-32 Municipal Housing Liaison.
§ 47-33 Administrative agent.
§ 47-34 Affirmative marketing requirements.
§ 47-35 Enforcement.
§ 47-36 Appeals.
Chapter 47 Affordable Housing Development Fees and Obligations
[HISTORY: Adopted by the Township Committee of the Township of Harmony as indicated in article histories. Amendments noted where applicable.]
Affordable housing — See Ch. 4.
Uniform construction codes — See Ch. 69.
Article I Affordable Housing Development Fees
Article II Affordable Housing Obligation
[Adopted 9-6-2011 by Ord. No. 11-9[1]]
Editor's Note: This ordinance also repealed former Ch. 47, Affordable Housing Development Fees, consisting of §§ 47-1 through 47-12, adopted 2-7-2008 by Ord. No. 08-3. The provisions of Ord. Nos. 11-9 and 08-3 were originally adopted as Ch. 70, but were redesignated to fit the organizational structure of the Code.
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. 52:27D-301 et seq., and the State Constitution, subject to the adoption of rules by the Council on Affordable Housing (COAH).
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7), COAH is authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that are under the jurisdiction of COAH or of a court of competent jurisdiction and have a COAH-approved spending plan may retain fees collected from nonresidential development.
This article establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's regulations and in accordance with P.L. 2008, c. 46, Sections 8 and 32 to 38. Fees collected pursuant to this article shall be used for the sole purpose of providing low- and moderate-income housing. This article shall be interpreted within the framework of COAH's rules on development fees, codified at N.J.A.C. 5:97-8.
This article shall not be effective until approved by COAH pursuant to N.J.A.C. 5:96-5.1.
The Township of Harmony shall not spend development fees until COAH has approved a plan for spending such fees (spending plan) in conformance with N.J.A.C. 5:97-8.10 and 5:96-5.3.
A development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a one-hundred-percent affordable housing development.
Money paid by a developer for the improvement of property as permitted at N.J.A.C. 5:97-8.3.
The assessed value of a property divided by the current average ratio of assessed to true value for the municipality in which the property is situated, as determined in accordance with Sections 1, 5, and 6 of P.L. 1973, c.123 (N.J.S.A. 54:1-35a through 54:1-35c).
Within the Township of Harmony, all residential developers, except for developers of the types of developments specifically exempted below and developers of developments that include affordable housing, shall pay a fee of 1.5% of the equalized assessed value for all new residential development, provided no increased density is permitted. Development fees shall also be imposed and collected when an additional dwelling unit is added to an existing residential structure; in such cases, the fee shall be calculated based on the increase in the equalized assessed value of the property due to the additional dwelling unit.
When an increase in residential density is permitted pursuant to a "d" variance granted under N.J.S.A. 40:55D-70d(5), developers shall be required to pay a "bonus" development fee of 6% of the equalized assessed value for each additional unit that may be realized, except that this provision shall not be applicable to a development that will include affordable housing. If the zoning on a site has changed during the two-year period preceding the filing of such a variance application, the base density for the purposes of calculating the bonus development fee shall be the highest density permitted by right during the two-year period preceding the filing of the variance application.
Eligible exactions, ineligible exactions and exemptions for residential developments.
Affordable housing developments and/or developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from the payment of development fees.
Developments that have received preliminary or final site plan approval prior to the adoption of this article shall be exempt from the payment of development fees, unless the developer seeks a substantial change in the original approval. Where site plan approval is not applicable, the issuance of a zoning permit and/or construction permit shall be synonymous with preliminary or final site plan approval for the purpose of determining the right to an exemption. In all cases, the applicable fee percentage shall be determined based upon the Development Fee Ordinance in effect on the date that the construction permit is issued.
Improvements or additions to existing one- and two-family dwellings on individual lots shall not be required to pay a development fee, but a development fee shall be charged for any new dwelling constructed as a replacement for a previously existing dwelling on the same lot that was or will be demolished, unless the owner resided in the previous dwelling for a period of one year or more prior to obtaining a demolition permit. Where a development fee is charged for a replacement dwelling, the development fee shall be calculated on the increase in the equalized assessed value of the new structure as compared to the previous structure.
Homes replaced as a result of a natural disaster (such as a fire or flood) shall be exempt from the payment of a development fee.
Within all zoning districts, nonresidential developers, except for developers of the types of developments specifically exempted below, shall pay a fee equal to 2.5% of the equalized assessed value of the land and improvements, for all new nonresidential construction on an unimproved lot or lots.
Within all zoning districts, nonresidential developers, except for developers of the types of developments specifically exempted below, shall also pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures to be used for nonresidential purposes.
Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 2.5% shall be calculated on the difference between the equalized assessed value of the preexisting land and improvements and the equalized assessed value of the newly improved structure, i.e., land and improvements, and such calculation shall be made at the time a final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the nonresidential development fee shall be zero.
The nonresidential portion of a mixed-use inclusionary or market-rate development shall be subject to a development fee of 2.5%, unless otherwise exempted below.
The development fee of 2.5% shall not apply to an increase in equalized assessed value resulting from alterations, change in use within the existing footprint, reconstruction, renovations and repairs.
Nonresidential developments shall be exempt from the payment of nonresidential development fees in accordance with the exemptions required pursuant to the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7), as specified in Form N-RDF "State of New Jersey Nonresidential Development Certification/Exemption." Any exemption claimed by a developer shall be substantiated by that developer.
A developer of a nonresidential development exempted from the nonresidential development fee pursuant to the Statewide Nonresidential Development Fee Act shall be subject to the fee at such time as the basis for the exemption no longer applies, and shall make the payment of the nonresidential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy for the nonresidential development, whichever is later.
If a property which was exempted from the collection of a nonresidential development fee thereafter ceases to be exempt from property taxation, the owner of the property shall remit the fees required pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid nonresidential development fees under these circumstances may be enforceable by the Township of Harmony as a lien against the real property of the owner.
Upon the granting of a preliminary, final or other applicable approval for a development, the approving authority or entity shall notify or direct its staff to notify the Construction Official responsible for the issuance of a construction permit.
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF "State of New Jersey Nonresidential Development Certification/Exemption" to be completed as per the instructions provided. The developer of a nonresidential development shall complete Form N-RDF as per the instructions provided. The Construction Official shall verify the information submitted by the nonresidential developer as per the instructions provided in the Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided in Form N-RDF.
The Construction Official responsible for the issuance of a construction permit shall notify the Township Tax Assessor of the issuance of the first construction permit for a development which is subject to a development fee.
Within 90 days of receipt of such notification, the Township Tax Assessor shall prepare an estimate of the equalized assessed value of the development based on the plans filed.
The Construction Official responsible for the issuance of a final certificate of occupancy shall notify the Township Tax Assessor of any and all requests for the scheduling of a final inspection on a property which is subject to a development fee.
Within 10 business days of a request for the scheduling of a final inspection, the Township Tax Assessor shall confirm or modify the previously estimated equalized assessed value of the improvements associated with the development; calculate the development fee; and thereafter notify the developer of the amount of the fee.
Should the Township of Harmony fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b. of Section 37 of P.L. 2008, c.46 (N.J.S.A. 40:55D-8.6).
Except as provided in § 47-5A(3) hereinabove, 50% of the initially calculated development fee shall be collected at the time of issuance of the construction permit. The remaining portion shall be collected at the time of issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at the time of issuance of the construction permit and that determined at the time of issuance of the certificate of occupancy.
A developer may challenge residential development fees imposed by filing a challenge with the County Board of Taxation. Pending a review and determination by the Board, collected fees shall be placed in an interest-bearing escrow account by the Township of Harmony. Appeals from a determination of the Board may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
A developer may challenge nonresidential development fees imposed by filing a challenge with the Director of the Division of Taxation. Pending a review and determination by the Director, which shall be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest-bearing escrow account by the Township of Harmony. Appeals from a determination of the Director may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
There is hereby created a separate, interest-bearing Affordable Housing Trust Fund to be maintained by the Chief Financial Officer of the Township of Harmony for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls.
Payments in lieu of on-site construction of a fraction of an affordable unit;
Funds contributed by developers to make 10% of the adaptable entrances in a townhouse or other multistory attached unit development accessible;
Any other funds collected in connection with Harmony's affordable housing program.
Within seven days from the opening of the Affordable Housing Trust Fund, the Township of Harmony shall provide COAH with written authorization, in the form of a three-party escrow agreement between the Township of Harmony, the bank, and COAH to permit COAH to direct the disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b).
Interest accrued in the Affordable Housing Trust Fund shall only be used to fund eligible affordable housing activities approved by COAH.
The expenditure of all funds shall conform to a spending plan approved by COAH. Funds deposited in the Affordable Housing Trust Fund may be used for any activity approved by COAH to address the Township of Harmony's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to, preservation or purchase of housing for the purpose of maintaining or implementing affordability controls; housing rehabilitation; new construction of affordable housing units and related costs; accessory apartments; a market-to-affordable program; Regional Housing Partnership programs; conversion of existing nonresidential buildings to create new affordable units; green building strategies designed to be cost saving and in accordance with accepted national or state standards; purchase of land for affordable housing; improvement of land to be used for affordable housing; extensions or improvements of roads and infrastructure to affordable housing sites; financial assistance designed to increase affordability; administration necessary for implementation of the Housing Element and Fair Share Plan; and/or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through 8.9 and specified in the approved spending plan.
Funds shall not be expended to reimburse the Township of Harmony for past housing activities.
At least 30% of all development fees collected and interest earned on such fees shall be used to provide affordability assistance to low- and moderate-income households in affordable units included in the municipal Fair Share Plan. One-third of the affordability assistance portion of development fees collected shall be used to provide affordability assistance to those households earning 30% or less of the median income for Housing Region 2, in which Harmony is located.
Affordability assistance to households earning 30% or less of median income may include buying down the cost of low- or moderate-income units in the municipal Fair Share Plan to make them affordable to households earning 30% or less of median income. The use of development fees in this manner may entitle the Township of Harmony to bonus credits pursuant to N.J.A.C. 5:97-3.7.
Payments in lieu of constructing affordable housing units on site and funds from the sale of units with extinguished controls shall be exempt from the affordability assistance requirement.
The Township of Harmony may contract with a private or public entity to administer any part of its Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:96-18.
No more than 20% of all revenues collected from development fees may be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultants' fees necessary to develop or implement a new construction program, prepare a Housing Element and Fair Share Plan, and/or administer an affirmative marketing program.
In the case of a rehabilitation program, no more than 20% of the revenues collected from development fees shall be expended for such administrative expenses.
Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units, and compliance with COAH's monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the COAH's regulations and/or actions are not eligible uses of the Affordable Housing Trust Fund.
The Township of Harmony shall complete and return to COAH all required monitoring forms necessary to comply with COAH's monitoring requirements related to the collection of development fees from residential and nonresidential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with Harmony's affordable housing program, as well as to the expenditure of revenues and implementation of the Housing Element and Fair Share Plan approved by COAH. All monitoring reports shall be completed on forms designed by COAH.
The ability for the Township of Harmony to impose, collect and expend development fees shall expire with the expiration of its third round substantive certification from COAH unless the Township of Harmony has first filed an adopted Housing Element and Fair Share Plan with COAH, has petitioned for substantive certification, and has received COAH's approval of its Development Fee Ordinance.
If the Township of Harmony fails to renew its ability to impose and collect development fees prior to the expiration of its third round substantive certification, it may be subject to forfeiture of any or all funds remaining within its Affordable Housing Trust Fund. Any funds so forfeited shall be deposited into the "New Jersey Affordable Housing Trust Fund" established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320).
The Township of Harmony shall not impose a development fee on a development that receives preliminary or final subdivision or site plan approval after the expiration of its third round substantive certification, nor shall the Township of Harmony retroactively impose a development fee on such a development. The Township of Harmony also shall not expend any of its collected development fees after the expiration of its third round substantive certification.
[Adopted 8-9-2011 by Ord. No. 11-6]
The Code of the Township of Harmony, New Jersey, is hereby amended to include provisions addressing the Township's constitutional obligation to provide for its fair share of low- and moderate-income housing, consistent with N.J.A.C. 5:97-1 et seq., as may be amended and supplemented, and N.J.A.C. 5:80-26.1 et seq., as may be amended and supplemented, and pursuant to the New Jersey Fair Housing Act of 1985. This article 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 these units. This article shall apply except where inconsistent with applicable law.
The Harmony Township Land Use Board has adopted a 2010 Housing Element and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1 et seq. The Fair Share Plan has been endorsed by the governing body. The Fair Share Plan describes the methods by which Harmony Township shall address its fair share for low- and moderate-income housing as determined by the Council on Affordable Housing (COAH) and as outlined in the Housing Element and Fair Share Plan. This article is part of and implements the balance of the Fair Share Plan and addresses the requirements of N.J.A.C. 5:97-1 et seq., as may be amended and supplemented.
The Township of Harmony shall file monitoring reports with COAH in accordance with N.J.A.C. 5:96 et seq. regarding the status of the implementation of the Housing Element and Fair Share Plan. Any report filed by Harmony Township with COAH and any report prepared by COAH in response shall also be available to the public at the Harmony Township Municipal Building, Township Clerk's Office, 3003 Belvidere Road, Phillipsburg, New Jersey 08865, at the COAH offices at P.O. Box 813, 101 South Broad Street, Trenton, New Jersey 08625-0813 and on COAH's website.
The Township of Harmony has a third round fair share obligation consisting of a forty-seven-unit prior round obligation (with 14 units remaining to be fulfilled), a three-unit rehabilitation obligation (with no units remaining to be rehabilitated), and a twenty-six-unit COAH-projected third round growth share obligation. Notwithstanding the fact that the 2010 Third Round Housing Element and Fair Share Plan have been prepared based upon the projected third round growth share obligation, the actual third round growth share obligation will be determined based on the actual development that occurs between January 1, 2004, and December 31, 2018, and calculated at the rate of one affordable housing unit for every four market-rate residential units constructed and one affordable housing unit for every 16 jobs created through the development or expansion of nonresidential floor area in accordance with the schedule presented in Appendix D of COAH's Substantive Rules (N.J.A.C. 5:97).
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.)
The entity responsible for the administration of affordable units in accordance with this article, N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC (N.J.A.C. 5:80-26).
A sales price or rent level that is within the means of a low- or moderate-income household as defined in N.J.A.C. 5:97-9 and in the case of an ownership unit, that the sales price for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in the case of a rental unit, that the rent for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended and supplemented.
A housing development of which all or a portion consists of restricted units.
All the residents of the development where the unit is situated are 62 years of age or older; or
At least 80% of the units are occupied by one person that is 55 years of age or older; or
A facility that is licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted-living services are available when needed for four or more adult persons unrelated to the proprietor and that offers units containing, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance.
The Council on Affordable Housing, which is in, but not of, the Department of Community Affairs of the State of New Jersey, as established by the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.).
A development containing both affordable units and market-rate units. This term includes, but is not limited to, new construction, the conversion of a nonresidential structure to residential use and the creation of new affordable units through the reconstruction of a vacant residential structure.
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 or load-bearing structural systems.
The median income by household size for the applicable housing region, as adopted annually by COAH.
A dwelling unit, whether a rental unit or an ownership unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1, as may be amended and supplemented, but does not include a market-rate unit financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C. 5:80-26 et seq.
VERY LOW-INCOME UNIT
A restricted unit that is affordable to a very low-income household.
Building insulation (for attic, exterior walls and crawl space), siding to improve energy efficiency, replacement storm windows, replacement storm doors, replacement windows and replacement doors, and is considered a major system for purposes of the rehabilitation program.
Harmony Township has satisfied all but 14 units of its prior round obligation and has determined that it will use the following programs to satisfy the balance of its prior round obligation as well as its third round growth share obligation, all of which programs are identified and more fully described in the adopted 2010 Third Round Housing Element and Fair Share Plan:
Supportive special needs housing on two separate sites to be administered by ARC of Warren.
Affordable housing (for sale) to be constructed on a Township-owned site by Habitat for Humanity.
Affordable housing (for rent) to be constructed on a Township-owned site by a yet-to-be-selected developer.
Accessory apartments in a modified format to fit the Highlands Regional Master Plan's septic density limits.
The following general guidelines 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. All developers and providers of affordable housing units shall consult COAH's Rules and UHAC for requirements specific to the type of affordable housing development proposed.
Harmony Township has already completed the rehabilitation of the three units that comprise its rehabilitation obligation for the certification period. Nevertheless, the following requirements shall apply to the re-rental of any rehabilitated units during the period of affordability controls:
Applicant and/or tenant households shall be certified as income-eligible in accordance with N.J.A.C. 5:97-9 and UHAC., except that households in owner-occupied rehabilitation units shall be exempt from the regional asset limit.
Re-rentals of rehabilitated units shall be affirmatively marketed in accordance with the Township's Affirmative Marketing Plan.
The administration of a supportive-living housing facility shall be in compliance with N.J.A.C. 5:97-6.10, including the administration thereof in accordance with N.J.A.C. 5:97-9 and UHAC, with the following exceptions:
Affirmative marketing (N.J.A.C. 5:80-26.15); provided, however, that the units or bedrooms shall be affirmatively marketed to individuals with special needs in accordance with a plan approved by COAH's Executive Director; and
With the exception of units established with capital funding through a twenty-year operating contract with the Department of Human Services, Division of Developmental Disabilities, supportive-living housing facilities shall have the appropriate controls on affordability in accordance with N.J.A.C. 5:97-9 and UHAC.
The service provider for a supportive-living housing facility shall act as the administrative agent for the purposes of administering the affirmative marketing and affordability requirements for the supportive-living housing facility.
Harmony Township has two municipally sponsored, one-hundred-percent affordable housing developments in its Housing Element and Fair Share Plan, one of which will be developed as for-sale units by Habitat for Humanity and the other of which will be developed for rent by an as-yet-to-be-named developer. The following provisions shall apply to municipally sponsored and one-hundred-percent affordable developments:
All sites shall meet the site suitability criteria set forth in N.J.A.C. 5:97-3.13.
The municipality or developer/sponsor shall have control or the ability to control the site(s).
The construction schedule shall provide for construction to begin within two years of substantive certification or in accordance with the municipality's implementation schedule pursuant to N.J.A.C. 5:97-3.2(a)4.
The first floor of all townhouse dwelling units and of all other multistory dwelling units shall comply with N.J.A.C. 5:97-3.14.
The units shall comply with N.J.A.C. 5:97-9 and UHAC.
The following requirements shall be applicable to all inclusionary residential developments that include affordable housing, including municipal construction/one-hundred-percent affordable housing developments.
Affordable housing units constructed on each site 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.
The combined number of efficiency- and one-bedroom units shall be no greater than 20% of the total low- and moderate-income units;
Affordable developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development. This standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit.
An interior accessible route of travel between stories within an individual unit, except that if all of the terms of Subsection B(2)(a) through (d) above have been satisfied, an interior accessible route of travel shall not be required between stories within an individual unit; and
An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the Barrier Free SubCode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14, or evidence that Harmony has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible:
To this end, the builder of restricted units shall deposit funds within the Township of Harmony'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)[2] above shall be used by the Township of Harmony 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 for the conversion of adaptable to accessible entrances to the Construction Official of the Township of Harmony.
Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meet the requirements of the Barrier Free SubCode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion is reasonable, payment shall be made to the Township's Affordable Housing Trust Fund in care of the Township CFO, who shall ensure that the funds are deposited into the Affordable Housing Trust Fund and appropriately earmarked.
Full compliance with the foregoing provisions shall not be required where an entity can demonstrate that it is "site impracticable" to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free SubCode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14.
In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC, utilizing the regional income limits established by COAH.
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 10% of all low- and moderate-income rental units shall be affordable to very low-income households.
In determining the initial sales prices and rent levels for compliance with the affordability average requirements for restricted units other than assisted-living facilities and age-restricted developments, the following standards shall be used:
In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units in assisted-living facilities and age-restricted developments, the following standards shall be used:
The initial rent for a restricted rental unit shall be calculated so as not to exceed 30% of the eligible monthly income of the appropriate size household, including an allowance for tenant-paid utilities, as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented.
The rent of low- and moderate-income units may be increased annually based on the permitted 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.
The accessory apartment program shall be available to both low- and moderate-income units.
The following provisions shall apply to an accessory apartment program:
A minimum of $20,000 per unit shall be granted to subsidize the creation of each moderate-income accessory apartment and a minimum of $25,000 per unit shall be granted to subsidize the creation of each low-income accessory apartment. The subsidy may be used to fund actual construction costs to create the accessory apartment and/or to provide compensation to the owner for the reduced rental rates. The selection of the subsidy and accompanying restriction shall be at the discretion of the owner.
In view of the septic density limits applicable within the Highlands Region, no new septic system shall be required or constructed to accommodate the accessory apartment. Consequently, the net number of bedrooms within the host unit plus the accessory apartment shall not exceed the number of bedrooms already existing in the host unit.
Control periods for rental units [N.J.A.C. 5:80-26.11(a)]; accessory apartments may have ten-year controls on affordability;
Bedroom distribution [N.J.A.C. 5:80-26.3(b) and (c)]; there is no limit on the number of bedrooms in each unit other than the requirement in Subsection B(2) above that the net number of bedrooms in both the host unit and the accessory apartment not exceed the number of bedrooms already existing in the host unit;
Low/moderate income split [N.J.A.C. 5:80-26.3(a)]; accessory apartments shall be exempt from the requirement that at least 50% of the units created shall be affordable to households earning 50% or less of regional median income; and
Affordability average [N.J.A.C. 5:80-26.3(d) and (e)]; however, the maximum rent for a moderate-income unit shall be affordable to households earning no more than 60% of median income and the maximum rent for a low-income unit shall be affordable to households earning no more than 44% of median income.
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 article for a period of at least 30 years, until Harmony 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.
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, 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 article, 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 master deeds of inclusionary developments shall provide no distinction between the condominium or homeowner association fees and special assessments paid by low- and moderate-income purchasers and those paid by market purchasers.
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 § 47-27.
Notwithstanding the foregoing, however, the administrative agent may, subject to COAH's approval, permit moderate-income purchasers to buy low-income units in housing markets determined by COAH to have 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 restrictions for low-income units.
A certified household that purchases a restricted-ownership unit must occupy it as the certified household's principal residence and shall not lease the unit; provided, however, that the administrative agent may permit the owner of a restricted ownership unit, upon application and a showing of hardship, to lease the restricted unit to a certified household for a period not to exceed one year.
The administrative agent shall certify a household as eligible for a restricted 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 eligible monthly income.
Upon the resale of a restricted ownership unit, all items of property that are permanently affixed to the unit or were included when the unit was initially restricted (for example, refrigerator, range, washer, dryer, dishwasher, wall-to-wall carpeting) shall be included in the maximum allowable resale price. Other items may be sold to the purchaser at a reasonable price that has been approved by the administrative agent at the time of the signing of the agreement to purchase. The purchase of central air conditioning installed subsequent to the initial sale of the unit and not included in the base price may be made a condition of the unit resale, provided the price, which shall be subject to ten-year, straight-line depreciation, has been approved by the administrative agent. Unless otherwise approved by the administrative agent, the purchase of any property other than central air conditioning shall not be made a condition of the unit resale. The owner and the purchaser must personally certify at the time of closing that no unapproved transfer of funds for the purpose of selling and receiving property has taken place at the time of or as a condition of resale.
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 article for a period of at least 30 years, until Harmony Township 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.
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 Warren. A copy of the filed document shall be provided to the administrative agent within 30 days of the receipt of a certificate of occupancy.
A restricted rental unit shall remain subject to the affordability controls of this article despite the occurrence of any of the following events:
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 administrative agent.
Very low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of median income.
The administrative agent shall certify a household as eligible for a restricted rental unit when the household is a very low-income household, 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 Subsections A(1) through B(5) above with the administrative agent, who shall counsel the household on budgeting.
COAH requires municipalities to 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. Harmony Township has adopted an ordinance creating the position of Municipal Housing Liaison[1] and has adopted a resolution appointing a Municipal Housing Liaison.[2]
Editor's Note: See Ch. 4, Art. I.
Editor's Note: Said resolution is on file in the Township offices.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township, including the following responsibilities which may not be contracted out to the administrative agent:
Serving as the Township's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
Monitoring the status of all restricted units in the Fair Share Plan;
Compiling, verifying and submitting annual monitoring reports as required by COAH;
The Township of Harmony has designated an administrative agent to administer newly constructed affordable units in accordance with N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC. Operating Manuals have been prepared by the administrative agent, adopted by the governing body and approved by COAH. The Operating Manual is and shall remain available for public inspection in the Office of the Township Clerk, in the Office of the Municipal Housing Liaison, and in the office of the administrative agent.
The administrative agent shall perform the duties and responsibilities of an administrative agent as set forth in UHAC, including those set forth in Sections 5:80-26.14, 16 and 18 thereof, which include:
Conducting an outreach process to affirmatively market affordable housing units in accordance with the Affirmative Marketing Plan of the Township of Harmony and the provisions of N.J.A.C. 5:80-26.15; and
Employing a random selection process as provided in the Affirmative Marketing Plan and the Affordable Housing Operating Manual of the Township of Harmony when referring households for certification to affordable units.
Ensuring that the removal of the deed restrictions and cancellation of the mortgage note are effectuated and properly filed with the Warren County Register of Deeds or Warren County Clerk's office after the termination of the affordability controls for each restricted unit;
Resales and re-rentals:
Instituting and maintaining an effective means of communicating information between owners and the administrative agent regarding the availability of restricted units for resale or re-rental; and
Reviewing and approving requests for determination from owners of restricted units who wish to take out home equity loans or refinance during the term of their ownership that the amount of indebtedness to be incurred will not violate the terms of this article;
Reviewing and approving requests to increase sales prices from owners of restricted units who wish to make capital improvements to the units that would affect the selling price, such authorizations to be limited to those improvements resulting in additional bedrooms or bathrooms and the depreciated cost of central air-conditioning systems;
Establishing a program for diverting unlawful rent payments to the municipality's Affordable Housing Trust Fund or other appropriate municipal fund approved by the DCA; and
Creating and publishing a written operating manual, as approved by COAH, setting forth procedures for administering the affordability controls.
The administrative agent shall have the authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder.
The administrative agent shall prepare monitoring reports for submission to the Municipal Housing Liaison in time for their submission by the Municipal Housing Liaison to COAH, as required by COAH.
The administrative agent shall attend continuing education sessions on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH.
The Township of Harmony shall adopt by resolution an Affirmative Marketing Plan 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 COAH 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 COAH Housing Region 2, comprised of Morris, Essex, 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 re-rentals. The administrative agent designated by the Township of Harmony 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 Harmony Township Municipal Building; and the developer's sales or rental office. Applications shall be mailed to prospective applicants upon request.
Upon the occurrence of a breach of any of the regulations governing the affordable unit by an owner, developer or tenant, the municipality shall have all remedies provided at law or equity, including but not limited to foreclosure, tenant eviction, a requirement for household recertification, acceleration of all sums due under a mortgage, recuperation of any funds from a sale in violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
After providing written notice of a violation to an owner, developer or tenant of a low- or moderate-income unit and advising the owner, developer or tenant of the penalties for such violations, the municipality may take the following action(s) against the owner, developer or tenant for any violation that remains uncured for a period of 60 days after service of the written notice:
The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation or violations of the regulations governing the affordable housing unit. If the owner, developer or tenant is adjudged by the court to have violated any provision of the regulations governing affordable housing units, the owner, developer or tenant shall be subject to one or more of the following penalties, at the discretion of the court:
A fine of not more than $500 per day or imprisonment for a period not to exceed 90 days, or both, provided that each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not a continuation of the initial offense;
In the case of an owner who has rented a low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Township of Harmony Affordable Housing Trust Fund of the gross amount of rent illegally collected;
In the case of an owner who has rented a low- or moderate-income unit in violation of the regulations governing affordable housing units, payment of an innocent tenant's reasonable relocation costs, as determined by the court.
The municipality may file a court action in the Superior Court seeking a judgment that would result in the termination of the owner's equity or other interest in the unit, in the nature of a mortgage foreclosure. Any such judgment shall be enforceable as if the same were a judgment of default of the first purchase money mortgage and shall constitute a lien against the low- or moderate-income unit.
The judgment shall be enforceable, at the option of the municipality, by means of an execution sale by the Sheriff, at which time the low- and moderate-income unit of the violating owner shall be sold at a sale price which is not less than the amount necessary to fully satisfy and pay off any first purchase money mortgage and prior liens and the costs of the enforcement proceedings incurred by the municipality, including attorney's fees. The violating owner shall have his right to possession terminated as well as his title conveyed pursuant to the Sheriff's sale.
The proceeds of the Sheriff's sale shall first be applied to satisfy the first purchase money mortgage lien and any prior liens upon the low- and moderate-income unit. The excess, if any, shall be applied to reimburse the municipality for any and all costs and expenses incurred in connection with either the court action resulting in the judgment of violation or the Sheriff's sale. In the event that the proceeds from the Sheriff's sale are insufficient to reimburse the municipality in full as aforesaid, the violating owner shall be personally responsible for the full extent of such deficiency, in addition to any and all costs incurred by the municipality in connection with collecting such deficiency. In the event that a surplus remains after satisfying all of the above, such surplus, if any, shall be placed in escrow by the municipality for the owner and shall be held in such escrow for a maximum period of two years or until such earlier time as the owner shall make a claim with the municipality for such. Failure of the owner to claim such balance within the two-year period shall automatically result in a forfeiture of such balance to the municipality. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the municipality, whether such balance shall be paid to the owner or forfeited to the municipality.
Appeals from all decisions of an administrative agent appointed pursuant to this article shall be filed in writing with the Executive Director of COAH.