(A) The following criteria shall be considered in determining rents and sale prices:
(1) Efficiency units shall be affordable to one-person households.
(2) One-bedroom units shall be affordable to 1.5-person households.
(3) Two-bedroom units shall be affordable to three- person households.
(4) Three-bedroom units shall be affordable to 4.5-person households.
(5) Four-bedroom units shall be affordable to seven- 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. To compute this regional income limit, the HUD determination of median county income for a family of four is multiplied by the estimated households within the county. The resulting product for each county within the housing region is summed. The sum is divided by the estimated total households in each housing region. This quotient represents the regional weighted average of median income for a household of four. This regional weighted average is adjusted by household size based on multipliers used by HUD to adjust median income by household size. The maximum average rent and price of low- and moderate- income units within each inclusionary development shall be affordable to households earning 57.5% of median income. The municipal ordinance shall require moderate-income sales units to be available for at least three different prices and low-income sales units to be available for at least two different prices.
(C) For municipalities that meet the criteria in division (B), in averaging 57.5% thereunder, developers and/or municipal sponsors of rental units may establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution
(D) The maximum rents of low- and moderate-income units within each inclusionary development shall be affordable to households earning no more than 60% of median income. In averaging an affordability range of 52% for rental units. developers and/or municipal sponsors of rental units may establish one rent for a low- income unit and one rent for a moderate-income unit for each bedroom distribution.
(E) The maximum sales prices of low- and moderate- income units within each inclusionary development shall be affordable to households earning no more than 70% of median income. In averaging an affordability range of 55% for sales units, the municipal ordinance shall require moderate- income sales units to be available for at least two different prices and low-income sales units to be available for at least two different prices.
(F) Owner-occupied and rental units shall require that low- and moderate- income units utilize the same heating source as market units within the inclusionary development.
(G) 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 5%, 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 28% of the eligible gross monthly income. Master deeds of inclusionary developments 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. The percentage that shall be paid by low- and moderate-income purchasers shall be at least one- third of the condominium or homeowner association fees paid by market purchasers. Once established within the master deed, the percentage shall not be amended without prior approval from the Council on Affordable Housing.
(H) Gross rents, including an allowance for utilities shall be established so as not to exceed 30% of the gross monthly income of the appropriate household size referenced in division (A). 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.
(I) Low-income housing units shall be reserved for households with a gross household income less than or equal to 50% of the median income approved by the Council. Moderate-income housing units shall be reserved for households with a gross household income less than 80% of the median income approved the Council. For example, a household earning 48% of median income may be placed in any low-income unit; however, a household earning 53% may not qualify for a low-income unit. A household earning 67% of median income may be placed in any moderate-income housing unit. A household earning less than 50% of median income 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 COAH approval pursuant to N.J.A.C. 5:93-9.16.
('74 Code, § 131-84) (Ord. 15-1975, passed 8-11-75; Am. Ord. 369-1987, passed 7-27-87; Am. Ord. 699-94, passed 6-13-94; Am. Ord. 945-99, passed 9-13-99; Am. Ord. 43-04, passed 3-22-04; Am. Ord. 266-15, passed 5-11-15) Penalty, see § 156.999