New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 26 - HOUSING AFFORDABILITY CONTROLS › Appendix I

Current through Register Vol. 56, No. 14, July 15, 2024
FORM OF HAS MUNICIPAL AGREEMENT CONTRACT FOR THE PROVISION OF
				  HOUSING AFFORDABILITY CONTROL SERVICES
THIS AGREEMENT, entered into as of this the ... day of .......,
				  20..., by and between the STATE OF NEW JERSEY (the "State"), acting by and through
				  its Commissioner of The Department of Community Affairs, who has offices at 101
				  South Broad Street in the City of Trenton, County of Mercer and State of New Jersey,
				  ("Department"), and ...... a municipality and instrumentality of the State, acting
				  by and through its ......., who has offices at ...... (the "Municipality").
WITNESSETH
WHEREAS, under authorization of the New Jersey Fair Housing Act (
				  52:27D-301, et seq., hereinafter the
				  "Act") the Municipality is implementing a program to provide affordable housing
				  units to low and moderate-income households desiring to live within the
				  Municipality;
WHEREAS, at Title 5, Chapter 80, Subchapter 26 of the New Jersey
				  Administrative Code, the State has promulgated affordability controls in regulations
				  designed to implement the Act, by assuring that low and moderate-income units that
				  are created under the Act are occupied by low and moderate-income households for an
				  appropriate period of time (the "Rules");
WHEREAS, Section 5:80-26.14 of the Rules provides that
				  affordability controls are to be administered by an administrative agent acting on
				  behalf of a municipality, and provides further that a municipality may select the
				  Department's Housing Affordability Service ("HAS") to administer such controls;
				  and
WHEREAS, the Municipality has selected HAS to be the
				  administrative agent for the purposes of providing affordability control services
				  for all affordable housing constructed and to be constructed within the
				  Municipality,
NOW THEREFORE, the State and the Municipality hereby agree to the
				  following terms and conditions:
Section 1.
				Term
This Agreement shall become effective as of the ... day of
				  ......., 20..., and shall have a term of three (3) years, terminating at the close
				  of State business on the ... day of ......., 20..., subject to the termination and
				  renewal provisions set forth in Section 5, below.
Section 2.Applicability and Supersession
This Agreement shall define and govern all terms between the
				  parties with respect to affordability controls for affordable housing units provided
				  under the Act, and shall supersede all prior agreements or documents related
				  thereto.
Section 3. Exclusions
This Agreement shall not apply to units funded under:
a.
The Federal Low-Income Housing Tax
						  Credit program under Section 42 of
the Internal Revenue Code;
b.
The Federal HOME program,
						  24 C.F.R. §
														92.252(e), §
													92.254(a)(4);
c.
The HUD 202 program, 24 C.F.R. Part 891;
d.
The HUD 811 program, 24 C.F.R. Part 890;
e.
The HUD HOPE VI program;
f.
Federal Home Loan Bank, Affordable
						  Housing Program, 12 C.F.R. Part 60;
or
g.
Or any other program excluded under the
						  Rules.
Section 4.
				Agency and Enforcement Delegation
The State and the Municipality acknowledge that under the Rules
				  the State is acting hereunder primarily as an agent of the Municipality. Anything
				  herein to the contrary notwithstanding, however, the Municipality hereby delegates
				  to the State, and the State hereby accepts, primary responsibility for enforcing
				  substantive provisions of the Act and the Rules.
Section 5. Termination and Renewal
a.
The Agreement may be terminated by
						  either party, by giving six (6)
months advanced written notice to the other, to the address
						  and in the
form as set forth in Section 15, below, provided however,
						  that no such
termination may take effect unless and until an
						  alternate
administrative agent has been selected by the Municipality
						  and approved
by all required governmental authorities.
b.
Unless terminated, this Agreement
						  shall automatically be renewed for
two (2) successive terms of three (3) years each.
Section 6.
				Exclusivity of Agreement, Project Amendments
a.
For the term hereof, and without
						  exception, this Agreement shall govern
the provision of affordability control services for all
						  projects
located within the Municipality that fall under the
						  jurisdiction of the
Act.
b.
Individual projects for which
						  affordability control services are to be
provided hereunder shall each be evidenced by a contract
						  amendment
("Project Amendment") that has been executed by the State,
						  by the
Municipality and by the project developer. All such Project
						  Amendments
shall be in the specific form set forth as Exhibit A,
						  hereto.
c.
The annexing of a fully executed
						  original of a Project Amendment to
HAS' original of this Agreement shall be a condition
						  precedent to the
provision of any affordability control services to the
						  related project.
Section 7.
				Responsibilities of The State
The State shall perform all of the duties and responsibilities of
				  an administrative agent as are set forth in the Rules, including those set forth in
				  Sections 5:80-26.14, 26.16 and 26.18 thereof, as such Rules may from time to time be
				  amended.
Section 8.
				Responsibilities of The Municipality
The Municipality shall:
a.
Provide to the State the name, title
						  and telephone number of the
municipal official who shall be responsible for liaison with
						  the State
on all matters related to this Agreement;
b.
Use its best efforts to ensure that
						  applicable local ordinances are not
in conflict with either the Rules or the provisions of this
						  Agreement;
c.
Ensure that all restricted units are
						  identified as affordable within
the tax assessor's office and any municipal utility
						  authority (MUA).
The municipality and MUA shall promptly notify the
						  administrative agent
of a change in billing address, payment delinquency of two
						  billing
cycles, transfer of title, or institution of a writ of
						  foreclosure on
all affordable units.
d.
Provide all reasonable and necessary
						  assistance to the State in support
of efforts to enforce provisions of the Act, the Rules, deed
						  covenants,
mortgages court decisions or other authorities governing
						  the
affordability control services to be provided under the
						  Agreement.
Section 9.
				Notices
All notices and other written communications between the State and
				  the Municipality shall be to the addresses and personnel specified below:
if to the State:
New Jersey Department of Community Affairs
DHCR--Housing Affordability Service
PO Box 806
Trenton, NJ 08625-0806
if to the Municipality:
...
...
...
Attn: .............
Section
				10. Non-Waiver of Conditions
The failure of either party to insist upon strict performance of
				  any provision of this Agreement in any one or more instances shall not constitute a
				  consent to waiver of or excuse for any other different or subsequent breach of the
				  same of other provision, nor as a result shall either part relinquish any rights
				  which it may have under this Agreement. No terms or provisions hereof shall be
				  deemed waived and no breach excused unless such waiver or consent is in writing and
				  signed by the waiving party.
Section
				11. Incorporation of Standard State Conditions
Exhibit B, the general provisions required to be included in this
				  Agreement by the Office of the Attorney General, ".......", is hereby incorporated
				  into and made a part of this Agreement.
Section 12. Priority of Documents
Should a conflict or inconsistency exist between the terms of this
				  Agreement and Exhibits A, and B, incorporated herein by reference, said conflict or
				  inconsistency shall be resolved by giving precedence to the Agreement and Exhibits
				  in the following order:
1. Agreement
				(Including Exhibit A)
2. Exhibit B
				(State Conditions)