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

Current through Register Vol. 56, No. 14, July 15, 2024
FORM OF MORTGAGE SECURING PAYMENT OF RECAPTURE NOTE IN FAVOR OF
				  THE MUNICIPALITY, REQUIRED BY SECTION 5:80-26.5(c)
State of New Jersey
Department of Community Affairs
New Jersey Housing and Mortgage Finance Agency
[name of municipality]
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 "Municipality"), in connection with the
				  property described herein (the "PROPERTY");
Article 1. REPAYMENT MORTGAGE NOTE
In consideration of value received, the Owner has signed a
				  Recapture 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 Municipality as security for the
				  payment required to be paid upon the first non-exempt sale of the Property, as
				  provided under the rules of the New Jersey Housing and Mortgage Finance Agency set
				  forth in 5:80-26.1 et seq.
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 MUNICIPALITY
The Owner, by mortgaging the Property to the State, gives the
				  Municipality those rights stated in this Mortgage, and all the rights the law gives
				  to the Municipality 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 Municipality 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 Municipality will prepare and
				  deliver to the then current owner of record a quitclaim deed or other document of
				  release.
Article 5. DEFAULT
The Municipality 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 Municipality;
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. MUNICIPALITY'S RIGHTS UPON DEFAULT
If the Municipality declares that the Note and this Mortgage are
				  in default, the Municipality 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 MUNICIPALITY
The Municipality may exercise any right under this Mortgage or
				  under any law, even if the Municipality has delayed in exercising that authority, or
				  has agreed in an earlier instance not to exercise that right. The Municipality 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 Municipality 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 Municipality, 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 maximum resale price 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 and approved by the
				  administrative agent appointed pursuant to
				  5:80-26.1 et seq.
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:
By:
......................
Signature
of (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