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

Current through Register Vol. 56, No. 14, July 15, 2024
RESTRICTIVE COVENANT REQUIRED BY SECTION N.J.A.C.
						  5:80-26.5(d)
Declaration Of Covenants, Conditions
And Restrictions
Implementing Affordable Housing Controls
On State Regulated Property
Fair Housing Act Required Covenants
Restricting Use, Conveyance
And Mortgage Debt
THIS DECLARATION is made this ... day of ......., 200.., by
				  ......., a ... (State of domicile)... (corporation, limited partnership or other
				  entity), having its principle address at ...... (hereinafter referred to as
				  "Developer").
WHEREAS, Developer is the owner of ...... units, more fully
				  described on Schedule A attached hereto and made a part hereof (hereinafter referred
				  to as the "Affordable Units") which are situated within ...... a (condominium or
				  residential development).. consisting of a total of ... dwelling units located in
				  the Municipality of ......., County of ......., State of New Jersey; and
WHEREAS, municipalities within the State of New Jersey are
				  required by the Fair Housing Act ( P.L. 1985, c. 222) (hereinafter the "Act") to
				  provide for their fair share of housing that is affordable to households with low or
				  moderate incomes in accordance with the provisions of the Act; and
WHEREAS, the Act requires that municipalities insure that such
				  designated housing remains affordable to low and moderate income households;
WHEREAS, pursuant to the Act, the Affordable Units described in
				  Exhibit A attached to this Agreement have been designated as low and moderate income
				  housing as defined by the Act; and
WHEREAS, the purpose of this Declaration is to insure that the
				  described Affordable Units remain affordable to low and moderate-income eligible
				  households for that period of time described in Section ... of this
				  Declaration.
NOW, THEREFORE, it is the intent of this Declaration to insure
				  that the affordability controls are recorded on each of the affordable units so as
				  to bind the owners of the Affordable Units of the covenants, conditions and
				  restrictions which they shall be required to comply and to notify all future
				  purchasers of the affordable units that the housing unit is encumbered with
				  affordability controls.
Article 1. Affordable Housing Covenants
The sale and use of each Affordable Unit subject to this
				  Declaration is governed by regulations governing controls on affordability, which
				  are found in New Jersey Administrative Code at Title 5, chapter 93, subchapter 9 (
				  5:93-9.1, et seq), and 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 each respective Affordable Unit, 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 Affordable Unit 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 Affordable Unit 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 Affordable Unit, 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 Affordable Unit
						  shall at all times maintain
the Affordable Unit as his or her principal place of
						  residence.
E.
Except as set forth in F, below, at
						  no time shall the owner of
the Affordable Unit lease or rent the Affordable Unit 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 Affordable Unit 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
						  Affordable Unit that would
affect its bedroom configuration, and in any event, no
improvement made to the Affordable Unit will be taken
						  into
consideration to increase the MRP, except for
						  improvements
approved in advance and in writing by the Administrative
						  Agent.
Article 2.
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
				Affordable Unit, 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.
IN WITNESS WHEREOF, Developer has caused this instrument to be
				  executed by its duly authorized partners and proper officers, respectively, this ...
				  day of December 2002.
ATTEST: ..............................
(DEVELOPER)
By: ................................