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

Current through Register Vol. 56, No. 14, July 15, 2024
FORM OF MORTGAGE SECURING PAYMENT OF RECAPTURE AMOUNT FOR A 95/5
				  UNIT
State of New Jersey
Department of Community Affairs
Housing and Mortgage Finance Agency
Affordable Housing Program
Repayment Mortgage
To Secure Payment of Amounts Due
Upon First Non-Exempt Sale
After Expiration of Control Period
THIS MORTGAGE, made on this the ... day of ......., 20...... by
				  and between ......., (the "OWNER") and THE STATE OF NEW JERSEY, acting by and
				  through its Commissioner of the Department of Community Affairs (the "STATE"), in
				  connection with the property described herein (the "PROPERTY");
Article 1. REPAYMENT MORTGAGE NOTE
In consideration of value received, including but not limited to
				  certification by the State for participation in the affordable Housing Program and
				  for release by the State of prior recorded restriction documents, the Owner has
				  signed a Repayment Mortgage Note (the "Note") dated ....... The Owner promises to
				  pay to the State amounts due under the Repayment Mortgage Note, and to abide by all
				  obligations contained therein.
Article 2. MORTGAGE AS SECURITY FOR AMOUNT DUE
This Mortgage is given to the State as security for the payment
				  required to be paid upon the first non-exempt sale of the Property, which
				  requirement is set forth in Section 5:93-9.8(b)(2) of the Substantive Rules of the
				  New Jersey Council On Affordable Housing, as in effect at the time the Property was
				  first restricted under the Affordable Housing program, after the completion of the
				  control period established pursuant to Section 5:93-9.2 of said Rules (the "Control
				  Period"). The amount of any such payment shall be determined by calculating
				  Ninety-Five Percentum (95%) of the difference between (a) the actual sale price and
				  (b) the regulated maximum sales price (Maximum Resale Price, or "MRP") that would be
				  applicable were the Control Period still in effect.
Article 3. PROPERTY DESCRIPTION
All of the land and improvements thereon located in the
				  municipality of ...... in the County of ......., State of New Jersey (hereinafter
				  the "Property"), described more specifically as Block No. ... Lot No. ..., and known
				  by the street address:
.............................
.............................
Article 4. RIGHTS GIVEN TO STATE
The Owner, by mortgaging the Property to the State, gives the
				  State those rights stated in this Mortgage, and all the rights the law gives to the
				  State under Uniform Housing Affordability Controls, which are found in New Jersey
				  Administrative Code at Title 5, chapter 80, subchapter 26 (5:80-26.1, et seq). The rights given to
				  the state are covenants running with the land. The rights, terms and restrictions in
				  this Mortgage shall bind the Owner and all subsequent purchasers and owners of the
				  Property, and the heirs and assigns of all of them. Upon performance of the promises
				  contained in Note and Mortgage, the state will prepare and deliver to the then
				  current owner of record a quitclaim deed or other document of release.
Article 5. DEFAULT
The State may declare the Owner in default on this Mortgage and on
				  the Note if:
1.
The Owner attempts to convey an
						  interest in the Property without
giving prior written notice to the State;
2.
The ownership of the Property is
						  changed for any reason other than
in the course of an exempt sale;
3.
The Owner fails to make any payment required by
						  the Note;
4.
The holder of any lien on the
						  Property starts foreclosure
proceedings; or
5.
Bankruptcy, insolvency or
						  receivership proceedings are commenced by
or against the Owner.
Article 6. STATE'S RIGHTS UPON DEFAULT
If the State declares that the Note and this Mortgage are in
				  default, the State shall have all of the rights given by law or set forth in this
				  Mortgage.
Article 7. NOTICES
ALL NOTICES MUST BE IN WRITING AND PERSONALLY DELIVERED OR SENT BT
				  CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES GIVEN IN THIS MORTGAGE.
				  ADDRESS CHANGES MAY BE MADE UPON WRITTEN NOTICE, MADE IN ACCORDANCE WITH THIS
				  ARTICLE 7.
Article 8. NO WAIVER BY STATE
The State may exercise any right under this Mortgage or under any
				  law, even if the state has delayed in exercising that authority, or has agreed in an
				  earlier instance not to exercise that right. The State does not waive its right to
				  declare the Owner is in default by making payments or incurring expenses on behalf
				  of the Owner.
Article 9. EACH PERSON LIABLE
The Mortgage is legally binding upon each Owner individually and
				  all their heirs, assigns, agents and designees who succeed to their
				  responsibilities. The State may enforce any of the provisions of the Note and of
				  this Mortgage against any one or more liable individual.
Article 10. SUBORDINATION
This Mortgage will not be subordinate, and will not be
				  subordinated by the State, to any mortgage, refinancing, equity loan, secured letter
				  of credit, or any other obligation secured by the Property, except with respect to
				  (a) any such obligation which was duly recorded prior to the recording hereof, and
				  (b) any such obligation which, when added to all other such obligations recorded
				  against the Property, shall result in total debt secured by the Property being an
				  amount less than the MRP that would be applicable were the Control Period still in
				  effect.
Article 11. SUBSEQUENT OWNERS
This Mortgage shall not be released, with respect to any
				  subsequent owner who acquires the property through an exempt transfer unless the
				  transferee shall execute a note and mortgage in the form of the Note and this
				  Mortgage, and the same has been duly recorded.
Article 12. AMENDMENTS
No amendment or change to the Note and this Mortgage may be made,
				  except in a written document signed by both parties.
Article 13. SIGNATURES
By executing this Mortgage on page 3, hereof, the Owner agrees to
				  all of its terms and conditions.
Article 14. ACKNOWLEDGEMENT
The Owner acknowledges receipt of a true copy of this Mortgage, at
				  no charge to the State.
IN WITNESS WHEREOF, the Owner(s) has executed this Mortgage for
				  the purposes stated herein.
ATTEST:
.........
Signature
(Owner)
.........
Signature
(Co-Owner)
STATE OF NEW JERSEY
)
)
ss:
COUNTY OF ...........................
)
BE IT REMEMBERED, that on this the ... day of ......., 20......
				  the subscriber ...... appeared personally before me (If more than one person signed
				  the foregoing mortgage and appeared before me, the words "the subscriber" and "the
				  Owner" shall include all such persons) and who, being duly sworn by me, deposed and
				  made proof to my satisfaction (i) that he/she is the Owner named in the foregoing
				  mortgage and (ii) and that he/she has executed said mortgage with respect to the
				  Property and for the purposes described and set forth therein.
Sworn to and subscribed before me, ...... on the date set forth
				  above.
.......................................
NOTARY PUBLIC