The purpose of this section is to provide standards that pertain to the creation of low and moderate income housing units. The rules that follow shall pertain to all inclusionary developments in the ML-1 and ML-2 zones ("inclusionary developments"). This section provides standards on: the distribution of low and moderate income units; bedroom distribution; and establishing the rents and prices of low and moderate income units to be occupied as primary residences. (Ord. #1294, §VIII)

a. At least half of all affordable units within each inclusionary development shall be affordable to low income households and at least half of all rental units shall be affordable to moderate income households.

b. At least one-third (1/3) of all units in each bedroom distribution (pursuant to subsection 24-13.3 herein below) shall be affordable to low income households. (Ord. #1294, §VIII)

a. Inclusionary developments shall be structured in conjunction with realistic market demands so that:

1.The combination of efficiency and one (1) bedroom units is at least ten (10%) percent and no greater than twenty (20%) percent of the total low and moderate income units;

2. At least thirty (30%) percent of all low and moderate income units are two (2) bedroom units; and

3. At least twenty (20%) percent of all low and moderate income units are three (3) bedroom units.

b. Low and moderate income units restricted to senior citizens may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of senior citizen low and moderate income units within the development. The standard can be met by creating all one (1) bedroom units or by creating a two (2) bedroom unit for each efficiency unit. (Ord. #1294, §VIII)

a. The following criteria, in conjunction with realistic market information, shall be used in determining maximum rents and sale prices:

1.Efficiency units shall be affordable to one (1) person households;

2. One (1) bedroom units shall be affordable to 1.5 person households;

3. Two (2) bedroom units shall be affordable to three (3) person households; and

4. Three (3) bedroom units shall be affordable to 4.5 person households.

b. Median income by household size shall be established by a regional weighted average of the uncapped Section 8 income limits published by HUD. The maximum average rent and price of low and moderate income units within the Township shall be affordable to households earning 57.5 percent of median income. Moderate income sales units shall be available for at least three (3) different prices and low income sales units shall be available for at least two (2) different prices in each inclusionary project. In averaging 57.5 percent, developers may establish one (1) rent for a low income unit and one (1) rent for a moderate income unit for each bedroom distribution.

c. For the initial sale or rental of low and moderate income units in inclusionary projects approved by the Township Planning Board prior to July 1, 1997, the median income by household size for the region in which Bergen County is located shall be as calculated by the New Jersey Housing and Mortgage Finance Agency (NJHMFA). At such time that the regional income limits as calculated by the preceding paragraph b. equal or surpass the July 1, 1997 regional income limits as calculated by NJHMFA, then the median income calculations of paragraph b. shall apply to such "grand fathered" units. In no event shall the maximum allowable restricted sales price of a unit be lower than the last recorded purchase price.

d. Low and moderate income units shall utilize the same heating source as market units.

e. The initial price of a low and moderate income owner-occupied single family housing unit shall be established so that after a down payment of five (5%) percent, the monthly principal, interest, homeowner and private mortgage insurances, property taxes (property taxes shall be based on the restricted value of low and moderate income units) and condominium or homeowner fees do not exceed twenty-eight (28%) percent of the eligible gross monthly income. Master deeds of inclusionary developments shall regulate condominium or homeowner association fees or special assessments of low and moderate income purchasers at a specific percentage of those paid by market purchasers calculated as follows:

Square footage of the subject low or moderate income unit divided by the average square footage of market rate units within the planned residential development with the identical number of bedrooms. This regulation of fees shall not apply to master deeds filed prior to July 1, 1997.

f. Gross rents, including an allowance for utilities, shall be established so as not to exceed thirty (30%) percent of the gross monthly income of the appropriate household size referenced in paragraph a. above. Those tenant paid utilities that are included in the utility allowance shall be so stated in the lease. The allowance for utilities shall be consistent with the utility allowance approved by HUD for use in New Jersey.

g. Low income housing units shall be reserved for households with a gross household income less than or equal to fifty (50%) percent of the median income approved by the Council On Affordable Housing. Moderate income housing units shall be reserved for households with a gross household income less than eighty (80%) percent of the median income approved by the Council On Affordable Housing. For example, a household earning forty-eight (48%) percent of median income may be placed in any low income unit; however, a household earning fifty-three (53%) percent may not qualify for a low income unit. A household earning sixty-seven (67%) percent of median may be placed in any moderate income housing unit. A household earning less than fifty (50%) percent of median may be placed in a moderate income housing unit. Low and moderate income units shall not be offered to households that are not income eligible without approval of the Mahwah Affordable Housing Commission and the Council On Affordable Housing. (Ord. #1294, §VIII)

a Developments in the ML-1 Zone District shall be required to provide one hundred (100%) percent of all dwelling units to be affordable to low and moderate income households.

b. Developments in the ML-2 Zone District shall be required to provide twenty-two (22%) percent of all dwelling units to be affordable to low and moderate income households. This provision shall not apply to the project known as Beaver Creek/Paddington Square (Block 109, Lots 16 and 19) which has one hundred (100%) percent market rate units as a result of a Settlement Agreement in the Urban League lawsuit which provided for a monetary payment in lieu of on site construction of affordable units. (Ord. #1294, §VIII)