New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 26 - HOUSING AFFORDABILITY CONTROLS › Section 5:80-26.6 - Price restrictions for ownership units

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The initial purchase
				price for a restricted ownership unit shall be approved by the administrative agent
				and, if the unit is receiving assistance under the Balanced Housing Program, shall
				be consistent with the Balanced Housing grant agreement.
(b) The initial purchase price for all restricted
				ownership units except those financed under UHORP or MONI shall be calculated so
				that the monthly carrying costs of the unit, including principal and interest (based
				on a mortgage loan equal to 95 percent of the purchase price and the Federal Reserve
				H.15 rate of interest), taxes, homeowner and private mortgage insurance and
				condominium or homeowner association fees do not exceed 28 percent of the eligible
				monthly income of an appropriate household size as determined under
				5:80-26.4; provided, however, that the
				price shall be subject to the affordability average requirement of
				5:80-26.3.
(c) The initial purchase price of a restricted
				ownership unit financed under UHORP or MONI shall be calculated so that the monthly
				carrying costs of the unit, including principal and interest (based on a mortgage
				loan equal to 95 percent of the purchase price and the Federal Reserve H.15 rate of
				interest), taxes, homeowner and private mortgage insurance, and condominium or
				homeowner association fees, do not exceed 28 percent of the eligible monthly income
				of a household whose income does not exceed 45 percent of median income, in the case
				of a low-income unit, or 72 percent of median income, in the case of a
				moderate-income unit, and that utilizes the appropriate household size as determined
				under N.J.A.C.
				5:80-26.4.
(d) The maximum resale price for a restricted
				ownership unit, if the resale occurs prior to the one-year anniversary of the date
				on which title to the unit was first transferred to a certified household, is the
				initial purchase price. If the resale occurs on or after such anniversary date, the
				maximum resale price shall be consistent with the regional income limits most
				recently published by COAH and calculated pursuant to
				5:94-7.2(b). The
				administrative agent shall approve all resale prices, in writing and in advance of
				the resale, to assure compliance with the foregoing standards.
(e) The master deeds of affordable 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. Notwithstanding the foregoing sentence, condominium units subject
				to a municipal ordinance adopted before October 1, 2001, which provides for
				condominium or homeowner association fees and/or assessments different from those
				provided for in this subsection shall have such fees and assessments governed by
				said ordinance.
(f) 95/5 units are
				subject to the option and price restriction rules set forth in
				5:80-26.20 through 26.26.