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

Current through Register Vol. 56, No. 14, July 15, 2024
MANDATORY DEED FORM FOR OWNERSHIP 95/5 UNITS
Deed
To State Regulated Property
With Covenants Restricting Conveyance
And Mortgage Debt--With 95/5 Recapture
THIS DEED is made on this the ... day of ......., 20.. by
						  and between
................................................
(Grantor)
						  and
................................................
(Grantee).
Article 1. Consideration and Conveyance
In return for payment to the Grantor by the Grantee of ......
				  Dollars ($ ...........), the receipt of which is hereby acknowledged by the Grantor,
				  the Grantor hereby grants and conveys to the Grantee all of the land and
				  improvements thereon as is more specifically described in Article 2, hereof (the
				  Property).
Article 2. Description of Property
The Property consists of all of the land, and improvements
				  thereon, that is located in the municipality of ......., County of ......., State of
				  New Jersey, and described more specifically as Block No. ... Lot No. ..., and known
				  by the street address:
.............................
.............................
Article 3. Grantor's Covenant
The Grantor hereby covenants and affirms that Grantor has taken no
				  action to encumber the Property.
Article 4. Affordable Housing Covenants
Sale and use of the Property is governed by regulations known as
				  the 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 "Regulations").
				  Consistent with the Regulations, the following covenants (the "Covenants") shall run
				  with the land for the period of time commencing upon the earlier of (a) the date
				  hereof or (b) the prior commencement of the "Control Period", as that term is
				  defined in the Regulations, and terminating upon the expiration of the Control
				  Period as provided in the Regulations.
A.
The Property may be conveyed only to
						  a household who has been
approved in advance and in writing by the Housing
						  Affordability
Service of the New Jersey Department of Community Affairs,
						  or
other administrative agent appointed under the
						  Regulations
(hereinafter, collectively, the "Administrative
						  Agent").
B.
No sale of the Property shall be
						  lawful, unless approved in
advance and in writing by the Administrative Agent, and no
						  sale
shall be for a consideration greater than maximum
						  permitted
price ("Maximum Resale Price", or "MRP") as determined by
						  the
Administrative Agent.
C.
No refinancing, equity loan, secured
						  letter of credit, or any
other mortgage obligation or other debt (collectively,
						  "Debt")
secured by the Property, may be incurred except as approved
						  in
advance and in writing by the Administrative Agent. At no
						  time
shall the Administrative Agent approve any such Debt,
						  if
incurring the Debt would make the total of all such Debt
						  exceed
Ninety-Five Percentum (95%) of the applicable MRP.
D.
The owner of the Property shall at
						  all times maintain the
Property as his or her principal place of residence.
E.
Except as set forth in F, below, at
						  no time shall the owner of
the Property lease or rent the Property to any person
						  or
persons, except on a short-term hardship basis as approved
						  in
advance and in writing by the Administrative Agent.
F.
If the Property is a two-family home,
						  the owner shall lease the
rental unit only to income-certified low-income
						  households
approved in writing by the Administrative Agent, shall
						  charge
rent no greater than the maximum permitted rent as
						  determined
by the Administrative Agent, and shall submit for
						  written
approval of the Administrative Agent copies of all
						  proposed
leases prior to having them signed by any proposed
						  tenant.
G.
No improvements may be made to the
						  Property that would affect
its bedroom configuration, and in any event, no
						  improvement
made to the Property will be taken into consideration
						  to
increase the MRP, except for improvements approved in
						  advance
and in writing by the Administrative Agent.
Article 5. Remedies for Breach of Affordable Housing
				  Covenants
A breach of the Covenants will cause irreparable harm to the
				  Administrative Agent and to the public, in light of the public policies set forth in
				  the New Jersey Fair Housing Act, the Uniform Housing Affordability Control rules
				  found at N.J.A.C. 5:80-26, and the obligation for the provision of low and
				  moderate-income housing. Accordingly, and as set forth in
				  5:80-26.18:
A. In the event of a threatened breach of any of
				the Covenants by the Grantee, or any successor in interest or other owner of the
				Property, the Administrative Agent shall have all remedies provided at law or
				equity, including the right to seek injunctive relief or specific
				performance.
B. Upon the occurrence of a
				breach of any Covenants by the Grantee, or any successor in interest or other owner
				of the Property, the Administrative Agent shall have all remedies provided at law or
				equity including but not limited to forfeiture, foreclosure, acceleration of all
				sums due under any mortgage, recouping of any funds from a sale in violation of the
				Covenants, diverting of rent proceeds from illegal rentals, injunctive relief to
				prevent further violation of said Covenants, entry on the premises, those provided
				under Title 5, Chapter 80, Subchapter 26 of the New Jersey Administrative Code and
				specific performance.
Article 6. Notice of Resale, Recapture Covenant and 95/5 Purchase
				  Options
A. The owner of the Property is
				required notify the [. . . ADMINISTRATIVE AGENT . . .] and New Jersey Council On
				Affordable Housing by certified mail of any intent to sell the property 90 days
				prior to entering into an agreement for the first non-exempt sale of the Property
				after the conclusion of the Control Period, as 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 as part of the Affordable Housing
				Program.
B. Upon the first such
				non-exempt sale of the Property Ninety-Five Percentum (95%) of the difference
				between (i) the actual sale price and (ii) the regulated maximum sales price that
				would be applicable were the Control Period still in effect, shall be paid at
				closing to the New Jersey Department of Community Affairs, acting as receiving agent
				for the local municipality.
C. Such
				non-exempt sale is subject to the options provided for in Sections N.J.A.C.
				5:80-26.20 (Option to buy 95/5 units), 5:80-26.21 (Municipal option on 95/5 units),
				5:80-26.22 (State option on 95/5 units), 5:80-26.23 (Non-profit option on 95/5
				units), 5:80-26.24 (Seller option on 95/5 units), 5:80-26.25 (Municipal rejection of
				repayment option on 95/5 units) and 5:80-26.26 (Continued application of options to
				create, rehabilitate or maintain 95/5 units) of the Uniform Housing Affordability
				Control Rules, found in Title 5, Chapter 80, Subchapter 26, of the New Jersey
				Administrative Code.
EXECUTION BY GRANTOR
Signed by the Grantor on the date hereof. If the Grantor is a
				  corporation, this Deed is signed by a corporate officer who has authority to (a)
				  convey all interests of the corporation that are conveyed by this Deed, and (b) to
				  bind the corporation with respect to all matters dealt with herein.
.............................
Signed, sealed and
................... [seal]
delivered in the presence
of or attested by:
................... [seal]
................... [seal]
................... [seal]
CERTIFICATE OF ACKNOWLEDGEMENT BY INDIVIDUAL
State of New Jersey, County of ......... I am either (check one)
				  ... a Notary Public or ... a ......., an officer authorized to take acknowledgements
				  and proofs in the state of New Jersey. I sign this acknowledgement below to certify
				  that it was executed before me. On this the ... day of ......., 20... ......
				  appeared before me in person. (If more than one person appears, the words "this
				  person" shall include all persons named who appeared before the officer making this
				  acknowledgement). I am satisfied that this person is the person named in and who
				  signed this Deed. This person also acknowledged that the full and actual
				  consideration paid or to be paid for the transfer of title to realty evidenced by
				  this Deed, as such consideration is defined in P.L. 1968, c. 49, sec. 1(c), is $
				  .......
........................................................................
				  Officer's signature: Sign above, and print stamp or type name below CORPORATE PROOF
				  BY SUBSCRIBING WITNESS State of New Jersey, County of ......... I am either (check
				  one) ...... a Notary Public or ...... a ......., an officer authorized to take
				  acknowledgements and proofs in the state of New Jersey. On this the ...... day of
				  ......., 20...., ...... (hereinafter the "Witness") appeared before me in person.
				  The Witness was duly sworn by me, and under oath stated and proved to my
				  satisfaction that:
1.
The Witness is the ...... secretary
						  of the corporation which is
the Grantor described as such in this deed (hereinafter
						  the
"Corporation").
2.
...................., the officer who
						  signed this Deed is the
(title)...... of the Corporation (hereinafter the
						  "Corporate
Officer").
3.
The making, signing, sealing and
						  delivery of this Deed have been
duly authorized by a proper resolution of the Board of
						  Directors of
the Corporation.
4.
The Witness knows the corporate seal
						  affixed to this Deed is the
corporate seal of the Corporation. The Corporate Officer
						  affixed
the seal to this Deed. The Corporate Officer signed and
						  delivered
this Deed as and for the voluntary act and deed of the
						  Corporation.
All this was done in the presence of the Witness who signed
						  this
Deed as attesting witness. The Witness signs this proof to
						  attest
to the truth of these facts.
The Witness also acknowledges that the
full and actual consideration paid or
to be paid for the transfer of title
to realty evidenced by this Deed, as
such consideration is defined in P.L.
1968, c. 49, sec. 1(c), is $ .......
Sworn and signed before me on the date
above written:
.....................................
Witness: Sign above and print or type
name below
.....................................
Officer's signature: Sign above, and print stamp or type
						  name below