Section 14(b) of the Fair Housing Act N.J.S.A. 52:27D-301 et seq. incorporates the need to eliminate unnecessary cost-generating features from municipal land use ordinances. Accordingly, Freehold Township will eliminate development standards that are not essential to protect the public welfare and to expedite or fast-track municipal approvals/denials on certain affordable housing developments. Freehold Township will continue to eliminate the development standards that are to the components of N.J.A.C. 5:93-10.1-10.3.

Freehold Township has a fair share obligation of 1,092 affordable housing units of which 1,036 are new construction. This section will apply to all developments that contain existing or proposed low- and moderate-income units (listed below) and any future developments that may occur in the Township.

[Added 4-26-2005 by Ord. No. O-05-9]

After providing written notice of a violation of this article and/or the Affordable Housing Plan to an owner of a low- or moderate-income unit and advising the owner of the penalties for such violations, the authority may take the following action against the owner of an affordable housing unit for any violation that remains unsatisfied for a period of 60 days after service of the written notice:

A. The authority may file a court action or seek penalties pursuant to N.J.S.A. 2A:58-11 alleging a violation or violations of this article and/or the Affordable Housing Plan. If the owner is found by the court to have violated any provisions of this article and/or the Affordable Housing Plan, he or she shall be subject to one or more of the following penalties, at the discretion of the court:

(1) A fine of not more than that as stated in Chapter 1, Article II, General Penalty. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense; [Amended 5-23-2006 by Ord. No. O-06-16]

(2) In the case of an owner who has resold his or her low- or moderate-income unit in violation of this article and/or the Affordable Housing Plan, payment into the Township of Freehold Affordable Housing Trust Fund of an amount equal to the difference between the unauthorized resale price and the maximum resale price allowed by this article plus interest from the date of sale provided by the Rules of Court as well as reimbursement of the authority's attorney's fees;

(3) In the case of an owner who has rented his or her low- or moderate-income unit in violation of this article and/or the Affordable Housing Plan, payment into the Township of Freehold Affordable Housing Trust Fund of an amount equal to the difference between the unauthorized rental charge and the maximum rental charge allowed by this article plus interest provided by the Rules of Court from the date of violation; or

(4) In the case of an owner who has rented his or her low- or moderate-income unit in violation of this article and/or the Affordable Housing Plan, payment of an innocent tenant's reasonable relocation costs, as determined by the court; or

B. The authority may file a court action in the Superior Court seeking a judgment which would result in the termination of the owner's equity or other interest in the unit, in the nature of a mortgage foreclosure. Any judgment shall be enforceable as if the same were a judgment of default of the first purchase money mortgage and shall constitute a lien against the low- and moderate-income unit.

(1) Such judgment shall be enforceable, at the option of the authority, by means of an execution sale by the Sheriff, at which time the low- and moderate-income unit of the violating owner shall be sold at a sale price which is not less than the amount necessary to fully satisfy and pay off any first-purchase money mortgage and prior liens and the costs of the enforcement proceedings incurred by the authority, including attorney's fees. Any additional liens on the unit will be subordinate to the authority's costs and rights regarding the property. The violating owner shall have his right to possession terminated as well as his title conveyed pursuant to the Sheriff's sale.

(2) The proceeds of the Sheriff's sale shall first be applied to satisfy the first-purchase money mortgage lien and any prior liens upon the low- and moderate-income unit. The excess, if any, shall be applied to reimburse the authority for any and all costs and expenses incurred in connection with either the court action resulting in the judgment of violation or the Sheriff's sale. In the event that the proceeds from the Sheriff's sale are insufficient to reimburse the agency in full as aforesaid, the violating owner shall be personally responsible for and to the extent of such deficiency, in addition to any and all costs incurred by the authority in connection with collecting such deficiency. In the event that a surplus remains after satisfying all of the above, such surplus, if any, shall be placed in escrow by the authority for the owner and shall be held in such escrow for a maximum period of two years or until such earlier time as the owner shall make a claim with the authority for such. Failure of the owner to claim such balance within the two-year period shall automatically result in a forfeiture of such balance to the authority. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the authority, whether such balance shall be paid to the owner or forfeited to the authority.

(3) Foreclosure by the authority due to violation of this article and/or the Affordable Housing Plan shall not extinguish the restrictions of this article, the Affordable Housing Plan and the COAH procedural and substantive regulations as the same apply to the low- and moderate-income unit. Title shall be conveyed to the purchaser at the Sheriff's sale, subject to the restrictions and provisions of this article and the Affordable Housing Plan. The owner determined to be in violation of the provisions of this plan and from whom title and possession were taken by means of the Sheriff's sale shall not be entitled to any right of redemption.

(4) In order to be eligible to bid on an affordable unit, a bidder must be prequalified by the authority as a low- or moderate-income household as set forth in the COAH substantive regulations and as set forth in the COAH deed restrictions executed upon the purchase or rental of an affordable unit.

(5) If there are no bidders at the Sheriff's sale, or if insufficient amounts are bid to satisfy the first-purchase money mortgage and any prior liens, the authority may acquire title to the low- and moderate-income unit by satisfying the first-purchase money mortgage and any prior liens and crediting the violating owner with an amount equal to the difference between the first-purchase money mortgage and any prior liens and costs of the enforcement proceedings, including legal fees and the maximum resale price for which the low- and moderate-income unit could have been sold under the terms of this article and the Affordable Housing Plan. This excess shall be treated in the same manner as the excess which would have been realized from actual sale as previously described.

(6) Failure of the low- and moderate-income unit to be either sold at the Sheriff's sale or acquired by the authority shall obligate the owner to accept an offer to purchase from any qualified purchaser which may be referred to the owner by the authority, with such offer to purchase being equal to the maximum resale price of the low- and moderate-income unit as permitted by the terms and provisions of this article and the Affordable Housing Plan.

(7) The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions of this article and the Affordable Housing Plan until such time as title is conveyed from the owner. The owner shall also be fully responsible for satisfying all taxes, fees, fines and upkeep of the unit until the transfer of ownership.