The purpose of this division is to:
(1) Promote the general welfare by providing for a variety of housing choices within the township.
(2) Satisfy the township's constitutional obligation under Mount Laurel II to provide a realistic opportunity for the development of its fair share of the regional need for lower-income housing by establishing a mechanism for ensuring that housing units designated for occupancy by low- or moderate-income households remain affordable to and occupied by such households.
(3) Conform to the substantive rules of the state council on affordable housing, N.J.A.C. 5:92.1 et seq. (Code 1988, § 175-139)
(a) Wherever reference is made to lower-income housing or low- or moderate- income housing in this chapter, the standards, definitions and procedures set forth in this section shall apply.
(b) Except as otherwise expressly provided in this section, no low- or moderate-income housing unit shall be offered for sale or rental except at prices that are affordable by low- or moderate-income households respectively.
(c) Except as otherwise expressly provided in this section or as may be allowed under the rules and regulations of the affordable housing advisory commission, no low- or moderate-income housing unit shall be sold, resold, rented or rerented except to a household that has been qualified as a low- or moderate-income household, respectively. However, nothing contained in this chapter, or in the rules and regulations of the affordable housing advisory commission, shall restrict or preclude any household which was classified by the authority as a low- or moderate-income household at the time it purchased a low- or moderate-income housing unit from continuing to own the unit after its income exceeds the income ceilings established by this chapter.
(d) Every sale, resale and/or rental (as applicable) of an affordable housing unit shall include the following:
(1) The contract for sale or resale of every affordable housing unit shall include a provision indicating that all closings of title shall take place in the offices of the affordable housing advisory commission or such other location as the affordable housing advisory commission shall designate. The affordable housing advisory commission shall receive notice of closing at least ten days prior to the date of closing.
(2) Every closing shall also include the proper execution of all documents required by the affordable housing advisory commission, including, but not limited to, an affordable housing second mortgage, executed in recordable form and delivered to the affordable housing advisory commission at the time of closing. The appropriate recording fees to cover the cost of recording shall be paid to the affordable housing advisory commission as part of the closing.
(3) The deed conveying title shall include a provision indicating that the unit is subject to all of the terms, conditions and restrictions of the South Brunswick ordinances and affordable housing advisory commission regulations, including limitations on sale, rental and financing of the unit.
(4) Lease agreements for rental units shall be in a form approved by the affordable housing advisory commission and shall contain a restriction prohibiting subletting without the written approval of the affordable housing advisory commission.
(e) Developments containing affordable housing units shall provide that such units are reasonably well dispersed throughout the entire development, but in any case shall be subject to the following minimum standards for dispersal of lower-income units:
(1) No more than 24 lower-income units may be located in any single building. No building or section shall be required to contain any lower-income units. In any section that contains lower-income units, no more than one-third of the total number of units may be lower-income units.
(2) The restrictions contained in subsection (e)(1) of this section shall not apply to any building or section when necessary to finance the development of the building or section through public or tax-exempt funding or to any building with lower-income units restricted to senior citizens, but in no event shall any one building or section developed pursuant to this subsection contain more than 150 lower-income units.
(3) Lower-income units must be located so as to afford comparable access to transportation, community shopping, recreation and other amenities as are provided to other residents of the development.
(4) The landscaping and buffers used around buildings and within sections containing lower-income units shall not be different from those used in other portions of the development, and the landscaping and buffers used to separate such buildings and sections shall be the same as is used to separate other portions of the development.
(f) In any inclusionary development, 50 percent of the lower-income units shall be low-income housing.
(g) Within inclusionary developments, low- and moderate-income housing units shall be built in accordance with the following schedule:
(h) The occupancy policy shall be as follows:
(1) The occupancy policy for low- and moderate-income units in inclusionary develop- ments shall have the objective of effective utilization of space without overcrowding or providing more space than is needed by the number of people in the household.
(2) The following occupancy standards are to be complied with to ensure efficient use of the units:
(3) A change in family size after occupancy will not be a violation of this policy.
(i) Bedroom distribution shall be as follows:
(1) Within the inclusionary developments known as Nassau Square, Monmouth Walk, Regal Point, Town Center/American Major, Town Center/Southridge and Town Center/ Mindel, as set forth in table I of section 62-1039, the distribution of the number of bedrooms shall be in accordance with the following standards:
a. At a minimum, 35 percent of all low- and moderate-income units shall be two-bedroom units.
b. At a minimum, 15 percent of all low- and moderate-income units shall be three-bedroom units.
(2) No more than 20 percent of all low- and moderate-income units may be efficiency units.
(j) The range of affordability for purchased housing shall be as follows:
(1) As near as practicable, the average price of low- and moderate-income units within an inclusionary development shall be affordable to households at 57.5 percent of median income by household size.
(2) In devising a range of affordability for purchased affordable housing, as required in subsection (j)(1) of this section, the affordable housing advisory commission shall ensure, as best as practicable, the following distribution of prices for every 20 low- and moderate-income units:
PRICING STRATIFICATION
Low
1 at 40 through 42.5 percent
3 at 42.6 through 47.5 percent
6 at 47.6 through 50 percent
Moderate
1 at 50.1 through 57.5 percent
1 at 57.6 through 64.5 percent
1 at 64.6 through 68.5 percent
1 at 68.6 through 72.5 percent
2 at 72.6 through 77.5 percent
4 at 77.6 through 80 percent
(3) For initial occupancy, priority shall be given to households that fall within the median income categories delineated in subsection (j)(2) of this section. (Code 1988, § 175-140; Ord. No. 5-03, § 175-140, 3-4-2003; Ord. No. 29-05, § I, 5-10-2005; Ord. No. 2009-30, § I, 7-28-2009)
A.prospective purchaser or renter of a low- or moderate-income housing unit must be qualified as a low- or moderate-income household by the affordable housing office prior to the purchase or rental of such unit. In making this determination, the affordable housing office shall apply the standards set forth in the rules and regulations governing eligibility of applicants for affordable housing. Any person considered to be an illegal alien pursuant to the Immigration and Nationality Act and/or the United States Citizenship and Immigration Services shall be prohibited from obtaining affordable housing assistance in South Brunswick. (Code 1988, § 175-141; Ord. No. 2009-30, § I, 7-28-2009; Ord. No. 2010-13, § I, 5-11-2010)
(a) Determination of price or charge by authority. Prior to the sale, resale, rental or rerental of a low- or moderate-income housing unit, the affordable housing advisory commission shall determine the maximum sales price or rental charge that may be charged for that size unit in each income category.
(b) Maximum sales price. The following procedure shall apply to determine maximum sales prices:
(1) The base price shall be determined as follows:
a. A base price shall be calculated such that the sum of the monthly payments for principal; interest; taxes; fire, theft and liability insurance; and homeowners' association fees, if any, shall not exceed 28 percent of the low- or moderate-income ceiling determined in accordance with section 62-1993. A ten-percent down payment requirement and a 30-year mortgage term shall be assumed in making this calculation.
b. In calculating the monthly interest payment, the affordable housing advisory commission shall apply the interest rate which it determines to be reasonably available locally to low- and moderate-income households and shall review any documentation provided by the developer regarding financing which it contends is available to such households. If the developer or any other entity offers to buy down the prevailing interest rate and the terms of the buy-down provide that the increase in interest rate charged does not exceed one-half of one percent per year during the period of the buy-down, the interest rate for the first year of the buy-down period shall be used in the calculation in this subsection to determine the monthly interest payment. If the increase in the interest rate exceeds one-half of one percent per year, the average interest rate for the period of the buy-down shall be used.
c. If the developer proposes that an adjustable rate mortgage (ARM) be used to calculate the monthly interest payment and the affordable housing advisory commission determines that such adjustable rate mortgages are reasonably available locally to lower-income homebuyers, the initial interest rate of that mortgage shall be used only if the maximum annual average increase does not exceed one-half of one percent. Otherwise, a rate which is the average of the initial interest rate and the highest possible rate in effect after three years or 1 1/2 points less than the best available fixed mortgage rate, whichever is greater, shall be used.
**Webmasters Note: The previous sections, 62-1992(i) through 62-1994(b)(1)c, have been amended as per Supplement No. 21.
(2) In order to ensure that low- and moderate-income housing units are affordable by households whose income is less than the low- or moderate-income ceiling, the maximum sales price that may be offered for each such unit shall be determined as a percentage of the base price for that size unit in each income category as follows:
a. For each of the following income categories for which a development has fewer than 100 units, the following percentages shall be used in determining the maximum sales price:
1. Low income: 90 percent of the base price.
2. Moderate income: 90 percent of the base price.
b. For each of the following income categories for which a development has 100 or more units, the following percentages shall be used in determining the maximum sales price:
1. Low income: 95 percent of the base price for one-half of the units and 85 percent of the base price for one-half of the units.
2. Moderate income: 95 percent of the base price for one-half of the units and 85 percent of the base price for one-half of the units.
c. A unit offered at 85 percent of the base price shall not be offered for sale to any household whose income is greater than 95 percent of the low- or moderate-income ceiling, whichever is applicable.
(3) Prior to final approval of any development subject to this section, the affordable housing advisory commission shall determine the maximum sales prices by unit size for the low- and moderate-income housing units in the development and shall so notify the developer. These prices shall remain in effect for a period of one year or until all of the low- or moderate-income housing units have been sold, whichever occurs first. The developer may request a modification of the maximum sales price by applying to the affordable housing advisory commission for recalculation of these prices based on substantial change in any of the factors used to calculate the price.
(4) Prior to the resale of any low- or moderate-income housing unit, the affordable housing advisory commission shall determine the maximum sales price for that unit in accordance with a formula developed by the authority which takes into account increases in a generally accepted price or income index, capital improvements that render the unit suitable for a larger household and reasonable out-of-pocket costs of the sale as determined by the authority and which, to the extent feasible, ensures that resale prices will be consistent with the affordability standards set forth in subsection (b)(1) and (2) of this section.
(c) Maximum rental charges. The following procedure shall apply to determine maximum rental charges:
(1) A hate rent shall be calculated such that the sum of the monthly rental payment, excluding utilities, does not exceed 30 percent of the low- or moderate-income ceiling determined in accordance with section 62-1993.
(2) Affordability shall be determined as follows:
a. In order to ensure that low- or moderate-income housing units are affordable by a range of households whose income is less than the low- or moderate-income ceiling, the maximum gross rent that may be charged for each unit shall be such that the average of the gross rents charged for that size unit in each income category does not exceed the following percentage of the base price for that size unit in each of the following income categories:
1. Low income: 90 percent of the base price.
2. Moderate income: 90 percent of the base price.
b. In order to ensure affordability by a wider range of lower-income households, the affordable housing advisory commission shall encourage landlords to set individualized rents not to exceed 30 percent of the tenant's actual income, provided that the average of such rents for each size unit does not exceed 90 percent of the base rent for that size unit in each income category.
c. In devising a range of affordability for rental housing, the affordable housing advisory commission shall ensure, as best as practicable, the following distribution of rental charges for lower-income rental units:
RENTAL STRATIFICATION
Low Income
1/2 of all units at 40% of the median income base
1/2 of all units at 50% of the median income base
Moderate Income
1/3 of all units at 60% of the median income base
1/3 of all units at 70% of the median income base
1/3 of all units at 80% of the median income base
(3) Once the maximum rental charges have been determined for the low- and moderate-income housing units, such charges shall not be increased without the prior written approval of the affordable housing advisory commission. The authority shall establish appropriate criteria and procedures for allowing periodic rental charge increases consistent with the affordability standards set forth in subsection (c)(1) and (2) of this section. No more than one rental charge increase shall be allowed for any unit or group of units within any 12-month period.
(4) Market units and lower-income units in a development subject to the affordable housing requirements of this division shall be exempted from municipal rent control.
(5) Nothing contained in this chapter shall prevent the township council from adopting rules and regulations for the affordable housing advisory commission not inconsistent with this chapter. Rules and regulations for the affordable housing advisory commission may be adopted which increase or decrease rents for units, subject to the regulations of this division based upon increases or decreases in the income level of the occupants as shall be, from time to time, determined by the affordable housing advisory commission and/or the council on affordable housing.
(d) Relationship between household size and unit size. For the purpose of determining maximum sales prices and rental charges pursuant to subsections (b) and (c) of this section, the ceiling incomes of the following household sizes shall be used to determine the maximum prices for each of the following unit sizes:
(e) Maximum affordable price tables. The affordable housing advisory commission shall prepare and maintain tables of maximum affordable prices for low- and moderate-income households by unit size and a guide for determining maximum sales prices and rental charges for low- and moderate-income housing units. (Code 1988, § 175-142; Ord. No. 2009-30, § I, 7-28-2009)
(a) Prior to the transfer of title or occupancy to a dwelling unit which is classified as a low-or moderate-income unit under the affordable housing standards of this chapter, the owner shall be required to obtain a certificate of habitability compliance in the following manner:
(1) An application shall be filed with the code enforcement officer, setting forth the property location and the date of the proposed transfer of title or reoccupancy.
(2) The code enforcement officer or his designee shall inspect the property and shall issue a certificate within six business days of receipt of the application. The certificate shall indicate whether or not the dwelling unit complies with the provisions of article VII of chapter 22.
(b) For the purpose of making such inspections, the code enforcement officer or his designee shall be authorized to enter, examine and survey the dwelling unit at reasonable times and upon reasonable notice.
(c) Whenever the code enforcement officer or his designee determines that there has been a violation of any provision of article VII of chapter 22 or any rule or regulation adopted pursuant thereto, he shall give notice of such violation to the person responsible therefor. Notice shall be deemed to be properly served upon any present or prior owner or occupant either by personal service or certified mail. The notice shall set forth the deficiencies and the time period within which repairs must be completed.
(d) Inasmuch as affordable housing units are constitutionally mandated and the township desires that such units shall be properly maintained, no fee shall be charged for the application for, inspection of or issuance of a certificate of habitability compliance pursuant to this section.
(e) If title to an affordable housing unit is transferred without the owner having first obtained a certificate of habitability compliance, both the prior owner and the new owner shall be subject to a fine of not more than $200.00 each. If there is a change in occupancy of an affordable housing rental unit prior to the landlord having first obtained a certificate of habitability compliance, the landlord shall be subject to a fine of not more than $200.00 for a first offense and not more than $500.00 for each subsequent offense, regardless of whether any subsequent offense is in connection with the same affordable housing rental unit or a different affordable housing rental unit owned by the same landlord. (Code 1988, § 175-142.1)
