Public Township Council Meeting — Packet

DRAFT PROPOSED REVISIONS – OCTOBER 2011 control period will be enforced with a lien and for renter occupied units the control period will be enforced with a deed restriction. 5. West Orange will dedicate a minimum of ten thousand ($10,000.00) dollars for units rehabilitated through this program. 6. West Orange has created a rehabilitation manual for this rehabilitation program, which is available for inspection at the West Orange Planning Department and is on-file with COAH. (Ord. No. 2250-09 § V) 25-18.5 Phasing Schedule for Zoning. West Orange has adopted a redevelopment plan that includes affordable housing. If future zoning is adopted, there will be a set-aside for affordable housing. Payment in lieu of development funds will be used within West Orange for the creation of affordable housing units. In inclusionary zones, including zones subject to a growth share ordinance, the following schedule shall be followed: Percentage of Market-Rate Units Completed Minimum Percentage of Low- and Moderate-Income Units 25 0 25+1 10 50 50 75 75 90 100 (Ord. No. 2250-09 § VI) 25-18.6 New Construction. a. Low/Moderate Split and Bedroom Distribution of Affordable Housing Units: 1. The fair share obligation shall be divided equally between low- and moderate-income households. 2. In each affordable development, at least fifty (50%) percent of the restricted units within each bedroom distribution shall be low-income units. 3. Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that: (a) The combined number of efficiency and one-bedroom units is no greater than twenty (20%) percent of the total low- and moderate-income units; (b) At least thirty (30%) percent of all low- and moderate-income units are two (2) bedroom units;

y (20%) percent of the total low- and moderate-income units; (b) At least thirty (30%) percent of all low- and moderate-income units are two (2) bedroom units; (c) At least twenty (20%) percent of all low- and moderate-income units are three (3) bedroom units; and (d) The remainder may be allocated at the discretion of the developer. (e) Age-restricted low- and moderate-income units may utilize a modified bedroom distribution and at a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the affordable development. b. Accessible Townhouse Units. 1. The first floor of all townhouse dwelling units and of all other multistory dwelling units for which credit is sought pursuant to P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.), on 93

DRAFT PROPOSED REVISIONS – OCTOBER 2011 or after October 1, 2006, the effective date of P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.), and for which an application for a construction permit has not been declared complete by the enforcing agency pursuant to P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and which were included in a prior round fair share plan or in a third round fair share plan and for which credit continues to be sought shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7. 2. To receive Council credit for a townhouse unit or other multistory dwelling unit that is attached to at least one other dwelling unit West Orange shall ensure that: (a) Townhouses or other multistory dwelling units that are attached to at least one other dwelling unit for which credit is sought for low- or moderate-income housing shall have the following features: (1) An adaptable toilet and bathing facility on the first floor; (2) An adaptable kitchen on the first floor; (3) An accessible route of travel; (i) An interior accessible route of travel shall not be required between stories; (4) An adaptable room that can be used as a bedroom, with a door or the casing for the installation of a door, on the first floor; and (5) An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D- 311a et seq.) and the Barrier Free Subcode, N.J.A.C. 5:23-7, or evidence that West Orange has collected funds from the development sufficient to make ten (10%) percent of the adaptable entrances in the development accessible; (b) In the case of a unit or units which are constructed with an adaptable entrance, upon the request of a disabled person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be installed; 3. The builder of the unit or units shall deposit funds, sufficient to adapt ten (10%) percent of the affordable units in the projects which have not been constructed with

installed; 3. The builder of the unit or units shall deposit funds, sufficient to adapt ten (10%) percent of the affordable units in the projects which have not been constructed with accessible entrances, with West Orange, for deposit into the municipal affordable housing trust fund; 4. The funds under paragraph b,3 above shall be available for the use of West Orange for the purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance; 5. The developer of the affordable project subject to P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) shall submit the design with a cost estimate for conversion to West Orange; and 6. Once West Orange has determined that the plans to adapt the entrances of the townhouse or other multistory unit meet the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, the West Orange Chief Financial Officer shall ensure that the funds are deposited into that fund. 7. Full compliance with this section shall not be required where an entity can demonstrate that it is site impracticable to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7. c. Maximum Rents and Sales Prices. 1. West Orange hereby establishes that the maximum rent for affordable units within each affordable development shall be affordable to households earning no more than sixty 94

DRAFT PROPOSED REVISIONS – OCTOBER 2011 (60%) percent of median income and the average rent for low- and moderate-income units shall be affordable to households earning no more than fifty-two (52%) percent of median income. 2. The developers and/or municipal sponsors of restricted rental units shall establish at least one (1) rent for each bedroom type for both low-income and moderate-income units, provided that at least thirteen (13%) percent of all low- and moderate-income units shall be affordable to households earning no more than thirty (30%) percent of median income. 3. The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than seventy (70%) percent of median income and each affordable development must achieve an affordability average of fifty-five (55%) percent for restricted ownership units and in achieving this affordability average, moderate-income ownership units must be available for at least three (3) different prices for each bedroom type, and low-income ownership units must be available for at least two (2) different prices for each bedroom type. (Ord. No. 2250-09 § VII) 25-18.7 Utilities. a. Affordable units shall utilize the same type of heating source as market units within the affordable development. b. Those tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall be consistent with the utility allowance approved by DCA for its Section 8 program. (Ord. No. 2250-09 § VIII) 25-18.8 Occupancy Standards. a. Occupancy standards for affordable housing units are pursuant to N.J.A.C. 5:80-26.4: 1. In determining the initial rents and initial sales prices for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be used: (a) A studio shall be affordable to a one-person household; (b) A one-bedroom unit shall be affordable to a one and one-half person household; (c) A two-bedroom unit shall be affordable to a three-person household; (d) A three-bedroom unit shall be affordable

shall be affordable to a one and one-half person household; (c) A two-bedroom unit shall be affordable to a three-person household; (d) A three-bedroom unit shall be affordable to a four and one-half-person household; and (e) A four-bedroom unit shall be affordable to a six-person household. 2. For assisted living facilities, the following standards shall be used: (a) A studio shall be affordable to a one-person household; (b) A one-bedroom unit shall be affordable to a one and one-half-person household; (c) A two-bedroom unit shall be affordable to a two-person household or to two (2) one- person households. 3. In referring certified households to specific restricted units, to the extent feasible, and without causing an undue delay in occupying the unit, the administrative agent shall strive to: (a) Provide an occupant for each unit bedroom; 95

DRAFT PROPOSED REVISIONS – OCTOBER 2011 (b) Provide children of different sex with separate bedrooms; and (c) Prevent more than two (2) persons from occupying a single bedroom. (Ord. No. 2250-09 § IX) 25-18.9 Control Periods for Ownership Units and Enforcement Mechanisms. Control periods for ownership units are pursuant to N.J.A.C. 5:80-26.5 and each restricted ownership unit shall remain subject to the requirements of this ordinance until West Orange elects to release the unit from such requirements pursuant to action taken in compliance with N.J.A.C. 5:80-26.1 and prior to such an election, a restricted ownership unit must remain subject to the requirements of N.J.A.C. 5:80-26.1 for at least thirty (30) years. a. At the time of the first sale of the unit, the purchaser shall execute and deliver to the administrative agent a recapture note obligating the purchaser (as well as the purchaser's heirs, successors and assigns) to repay, upon the first non-exempt sale after the unit's release from the requirements of this section, an amount equal to the difference between the unit's nonrestricted fair market value and its restricted price and the recapture note shall be secured by a recapture lien evidenced by a duly recorded mortgage on the unit. b. All conveyances of restricted ownership units shall be made by deeds and restrictive covenants pursuant to N.J.A.C. 5:80-26.1. c. The affordability controls set forth in this section shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units. d. A restricted ownership unit shall be required to obtain a Continuing Certificate of Occupancy or a certified statement from the Municipal Building Inspector stating that the unit meets all code standards upon the first transfer of title that follows the expiration of the applicable minimum control period provided under N.J.A.C. 5:80-26.5(a). (Ord. No. 2250-09 § X) 25-18.10 Price Restrictions for Ownership Units, Homeowner Association Fees, and Resale Prices. Price restrictions for ownership units are pursuant to N.J.A.C. 5:80-26.1, including: a. The initial purchase price for a restricted ownership unit shall be approved by the administrative agent. The initial

ons for ownership units are pursuant to N.J.A.C. 5:80-26.1, including: a. The initial purchase price for a restricted ownership unit shall be approved by the administrative agent. The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying costs of the unit, including principal and interest (based on a mortgage loan equal to ninety-five (95%) percent of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees do not exceed twenty-eight (28%) percent of the eligible monthly income of an appropriate household size as determined under N.J.A.C. 5:80- 26.4; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3. b. The Administrative Agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards. c. The master deeds of affordable developments shall provide no distinction between the condominium or homeowner association fees and special assessments paid by low- and moderate-income purchasers and those paid by market purchasers, although condominium units subject to a municipal ordinance adopted before October 1, 2001, which provides for condominium or homeowner association fees and/or assessments different from those provided for in this subsection shall have such fees and assessments governed by said ordinance. d. The owners of ownership units may apply to the administrative agent to increase the maximum sales price for the unit on the basis of capital improvements. Eligible capital 96

DRAFT PROPOSED REVISIONS – OCTOBER 2011 improvements shall be those that render the unit suitable for a larger household or that add an additional bathroom. (Ord. No. 2250-09 § XI) 25-18.11 Buyer Income Eligibility. Buyer income eligibility for ownership units is pursuant to N.J.A.C. 5:80-26.1, such that low- income ownership units shall be reserved for households with a gross household income less than or equal to fifty (50%) percent of median income and moderate-income ownership units shall be reserved for households with a gross household income less than eighty (80%) percent of median income. The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the household is a low-income household or a moderate-income household, as applicable to the unit, and the estimated monthly housing cost for the unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees as applicable) does not exceed thirty-three (33%) percent of the household's eligible monthly income. (Ord. No. 2250-09 § XII) 25-18.12 Control Period for Rental Units. Each restricted rental unit shall remain subject to the requirements of this section until West Orange elects to release the unit from such requirements, however, prior to such a municipal election, a restricted rental unit must remain subject to the requirements of this ordinance for a period of at least thirty (30) years. a. Deeds of all real property that include restricted rental units shall contain deed restriction language, the deed restriction shall have priority over all mortgages on the property and the deed restriction shall be filed by the developer or seller with the records office of the county and a copy of the filed document shall be provided to the administrative agent within thirty (30) days of the receipt of a Certificate of Occupancy. b. A restricted rental unit shall remain subject to the affordability controls of this section, despite the occurrence of any of the following events: 1. Sublease or assignment of the lease of the unit; 2. Sale or other voluntary transfer of the ownership of the unit; or 3. The entry and enforcement of any judgment of foreclosure. (Ord. No. 2250-09 § XIII) 25-18.13 Price

2. Sale or other voluntary transfer of the ownership of the unit; or 3. The entry and enforcement of any judgment of foreclosure. (Ord. No. 2250-09 § XIII) 25-18.13 Price Restrictions for Rental Units and Rent Increases; Leases. The initial rent for a restricted rental unit shall be approved by the Administrative Agent and shall be calculated so as not to exceed thirty (30%) percent of the eligible monthly income of the appropriate household size as determined under N.J.A.C. 5:80-26.4; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3. a. Rents may be increased annually based on the Housing Consumer Price Index for the United States, as published annually by COAH. Rents may not be increased more than once a year. b. A written lease is required for all restricted rental units, except for units in an assisted living residence, and tenants are responsible for security deposits and the full amount of the rent as stated on the lease. c. No additional fees or charges may be added to the approved rent (except, in the case of units in an assisted living residence, for the customary charges for food and services) without the express written approval of the Administrative Agent and application fees (including the 97