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

Current through Register Vol. 56, No. 14, July 15, 2024
MANDATORY DEED RESTRICTION FOR RENTAL PROJECTS
Deed Restriction
To State Regulated Multi-Family Rental Property
With Covenants Restricting Rentals,
Conveyance and Improvements
And Requiring Notice of Foreclosure and Bankruptcy
THIS DEED RESTRICTION, entered into as of this the ... day of
				  ......., 20..., by and between the [Administrative Agent] ("Administrative Agent"),
				  and ...... a New Jersey [Corporation/Partnership/Limited Partnership]having offices
				  at ...... the developer/sponsor (the "Owner") of a residential low-or
				  moderate-income rental project subsidized by the State Of New Jersey (the "State")
				  in cooperation with the Administrative Agent, under the [Name of Program] (the
				  "Project"):
WITNESSETH
Article 1. Consideration
In consideration of the subsidies received for the Project, the
				  Owner hereby agrees to abide by the covenants, terms and conditions set forth in
				  this Deed restriction, with respect to the land and improvements 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. Affordable Housing Covenants
The following covenants (the "Covenants") shall run with the land
				  for the period of time (the "Control Period"), determined separately with respect
				  for each dwelling unit, commencing upon the earlier of the date hereof or the date
				  on which the first certified household occupies the unit, and shall and expire as
				  determined under the Uniform Controls, as defined below.
A.
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
						  "Uniform
Controls").
B.
The Property shall be used solely
						  for the purpose of providing
rental dwelling units for low-or moderate-income
						  households,
and no commitment for any such dwelling unit shall be given
						  or
implied, without exception, to any person who has not
						  been
certified for that unit in writing by the Administrative
						  Agent.
So long as any dwelling unit remains within its Control
						  Period,
sale of the Property must be expressly subject to these
						  Deed
Restrictions, deeds of conveyance must have these Deed
Restrictions appended thereto, and no sale of the
						  Property
shall be lawful, unless approved in advance and in writing
						  by
the Administrative Agent.
C.
No improvements may be made to the
						  Property that would affect
the bedroom configuration of any of its dwelling units, and
						  any
improvements to the Property must be approved in advance and
						  in
writing by the Administrative Agent.
D.
The Owner shall notify the
						  Administrative Agent and the State
of any foreclosure actions filed with respect to the
						  Property
within five (5) business days of service upon Owner.
E.
The Owner shall notify the
						  Administrative Agent and the State
within three (3) business days of the filing of any
						  petition
for protection from creditors or reorganization filed by or
						  on
behalf of the Owner.
Article 4.
Remedies for Breach of Affordable Housing
						  Covenants
A breach of the Covenants will cause irreparable harm to the
				  Administrative Agent, to the State 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.
A.
In the event of a threatened breach
						  of any of the Covenants by the
Owner, or any successor in interest of the Property, the
						  Administrative
Agent and the State 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.
IN WITNESS WHEREOF, the Administrative Agent and the Owner have
				  executed this Deed Restriction in triplicate as of the date first above
				  written.
[THE ADMINISTRATIVE AGENT]
BY:
__________________________
xxxxxxxxxxxxx
Title
[THE OWNER]
BY:
__________________________
xxxxxxxxxxxxx
Title
APPROVED BYTHE STATE OF NEW JERSEY
BY ______________________________
xxxxxxxxxxxxx
Title
ACKNOWLEDGEMENTS
On this the day ... of ......., 20... before me came ......., to
				  me known and known to me to be the ...... of the Department of Community Affairs of
				  the State of New Jersey, who states that (s)he has signed said Agreement on behalf
				  of said State for the purposes stated therein.
.......................................
NOTARY PUBLIC
On this the ... day of ......., 20... before me came ...... known
				  and known to me to be ...... of ......., the municipality identified as such in the
				  foregoing Agreement, who states that (s)he is duly authorized to execute said
				  Agreement on behalf of said Municipality, and that (s)he has so executed the
				  foregoing Agreement for the purposes stated therein
.......................................
NOTARY PUBLIC