For initial occupancy, priority shall be given to households within a particular income category with flexibility based on N.J. Housing and Mortgage Finance Agency affordability controls criteria.
c. The distribution of units by bedroom mix shall be approximately similar within each of the price categories set forth in subsection 19-5,2601 b,2
d. Each unit offered for sale shall be affordable to a household at the appropriate income level for each category as set forth In subsection 19-5 2601 b,2, spending not more than twenty-eight (28%) percent of the eligible gross household income for the sum of the following:
1. Principal and interest on a mortgage, based on a ten (10%) percent down payment and realistically available mortgage interest rates,
2. Property taxes at the rate currently levied in the Township of Denville, based upon the assessed value of the unit which shall be the affordable housing unit selling price multiplied by the current equalization ratio;
**Webmaster's Note: As per the original ordinance, there is no subsection e.
f. Standards Governing Resale and Re-Rental of Low and Moderate Income Units
1. Any developer submitting an application under the provisions of this ordinance shall submit a plan for controlling resale or rerental of the units in order to ensure that the units remain affordable to low and moderate income households for no less than twenty (20) years from the date of initial occupancy which shall be subject to review and approval by the Council on Affordable Housing Such plan shall contain all of the elements set forth in this Section, as well as conform to any regulations or guidelines consistent with this Section adopted by the Township of Denville, pursuant to the provisions of subsection 19-5 2601 f,7
2. Any plan for controlling the resale of low and moderate income units shall permit the owner of such unit, upon resale, to sell the unit for a price determined as follows
(a) The initial price paid for the units, plus the initial price of the percentage increase in the median income for the housing region as determined from the uncapped Section 8 income limits, published by HUD between the date of initial purchase, and the date the owner notified the agency responsible for administering these controls of intent to sell the unit.
(b) Reimbursement for documented monetary outlays made for reasonable property improvements, the determination of reasonableness to be at the discretion of the administering agency;
(c) Reasonable cost incurred in selling the unit.
3. The plan shall provide that the low income units upon resale may be sold to low income buyers, and the moderate income units to either low or moderate income buyers; provided, however, that the administering agency may establish reasonable provisions for waivers of this condition on a case by case basis in the event it finds that a particular unit may not feasibly be sold subject to this condition. In the event that the administering agency grants such a waiver, it shall set forth in subsection 19-5.2601 f, 2, and that the resale controls remain in effect for any subsequent sales of the unit
4. Resale controls shall be embodied in a deed restriction on the property that shall be submitted by the developer at the time of preliminary site plan approval, and shall be subject to approval by the municipal attorney and by the administering agency All deed restrictions shall be consistent with all of the provisions of this Section, and with any regulations adopted by the administering agency
5. Any low or moderate income unit offered as a rental unit shall continue to be offered as a rental unit for at least twenty (20) years. After twenty (20) years, they may be converted to condominium or cooperative occupancy, but must be sold at prices affordable to low or to moderate income households, and subject to resale controls consistent with this Section to ensure that the units will remain affordable to low and moderate households for a ten (10) year period thereafter.
6. Rehabilitated owner-occupied single-family housing units that are improved to code standards shall be subject to affordability controls for at least six (6) years and rehabilitated renter-occupied housing units meeting code standards shall be subject to affordability controls for at least ten (10) years.
7. The Township of Denville shall designate by resolution of the governing body and administering agency responsible for administering the provisions of this Section, which may be the municipality or any division, board or agency thereof, any other public or private non-profit agency; or the developer acting under the direct supervision and control of an agency of the municipality The Township shall not require the developer to administer these controls as a condition of approval nor any resale controls be administered merely through the existence of a deed restriction on the property
8. If the use of median income data adopted by the Council on Affordable Housing to indicate cost of housing renders a unit unaffordable to a low or moderate income household at the time Of resale; a municipality shall not lose credit for the housing unit, provided that adequate controls on affordability remain in place, but the Township, if it so elects may subsidize the housing unit to maintain its affordability.
9. The administering agency shall adopt such regulations and guidelines not inconsistent with the provisions of this Section as may be necessary to carry out the provisions of this Section; provided, however, that such regulations, if promulgated by other than an agency of the Township of Denville, shall not be effective until approved by resolution of the governing body of the Township of Denville
10. Property owners of owner-occupied housing may apply to the Township for permission to increase the maximum price for eligible capital improvements Eligible capital improvements shall be those that render the unit suitable for a larger household In no event shall the maximum price of an improved housing unit exceed the limits of affordability for the larger household. Property owners shall apply to the municipal entity if an increase in the maximum sales price is sought
11. An action of foreclosure by a financial institution regulated by State and/or Federal law shall extinguish controls on affordable housing units Notice of foreclosure shall allow the Township to purchase the affordable housing unit at the maximum permitted sale price Failure of the Township to purchase the affordable housing unit shall result in the Council on Affordable Housing adding that unit to the municipal present and prospective fair share obligation
In the event of a foreclosure sale, the owner of the affordable housing unit shall be personally obligated to pay to the Township, any surplus funds, but only to the extent that such surplus funds exceed the difference between the maximum price permitted at the time of foreclosure and the amount necessary to redeem the debt to the financial institution including costs of foreclosure (Ord #19-88, 10)
a. For all low and moderate income housing units developed, the Township of Denville shall establish occupancy such that initially no more than fifty (50%) percent of the units are made available to income eligible households that reside in the Township or work in the Township and reside elsewhere
b. The Township of Denville shall have primary responsibility for developing and implemented an Affirmative Marketing Program that addresses the occupancy preference requirements in N.J.A.C. 5:9215 1 The Township shall either require developers and/or sponsors of low and moderate income housing to market, screen, offer occupancy and select income eligible households accordingly; perform this responsibility themselves, establish an agency to perform on their behalf and/or enter into an agreement with outside agents
c. The Township of Denville shall provide the Council on Affordable Housing with an Affirmative Marketing Program that addresses occupancy preference required in N.J.A.C. 5:92-15.1, subject to Council review and certification. This Affirmative Marketing Program shall identify representative groups operating in the municipality and its respective housing region. The developer and/or sponsor of low and moderate income housing shall actively market these units to appropriate representative groups, as specified in the Affirmative Marketing Program
d. The Affirmative Marketing Program shall commence at least ninety (90) days before issuance of either temporary or permanent certificates of occupancy, and shall continue until all low and moderate income housing units are under contract of sale and/or lease
e. For initial occupancy priority, households shall be screened for occupancy preference as required in N J A-C. 5:902-15.1. These households shall be offered contracts of sale and/or lease first and before other income eligible households When fifty (50%) percent of the housing units have been purchased or leased, according to N.J.A.C. 5 92-15 1 the remaining income eligible applicants, not yet under contract, shall be pooled and offered contracts.
f. Within all rounds of applicant selection, random selection of eligible applicants shall prevail.
g. The Township of Denville shall prepare progress reports on an eighteen (18) month cycle from the date of substantive certification. These shall be made available to the public and filed with the Council on Affordable Housing These reports shall provide an analysis of the actual characteristics of households occupying low and moderate income units compared to the occupancy preference in N.J.A.C. 5-92-15.1
h. Three (3) and six (6) years from substantive certification, the Township of Denville shall prepare summary reports of their affirmative marketing programs. These reports shall expand upon previous progress reports by assessing the aggregate and up-to-date effectiveness of the programs. If applicable, the Township shall recommend improvements to redress their record of occupancy preference to reflect requirements as in NJ A C 5:92-15.1
Where the affirmative marketing regulations of the U S Department of Housing and Urban Development, the N.J. Department of Community Affairs and/or the N J Housing and Mortgage Finance Agency are applicable, the affirmative marketing regulations of these agencies shall be applicable (Ord. #19-88, 10)
