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§ 153.010 OCCUPANCY SELECTION.
   (A)   Initial sales and/or initial rentals of affordable housing units shall be administered by the developer under the supervision of the Board. In the event that the developer is unable or unwilling to undertake this function, this responsibility may be assumed by the Board and Housing Administrator or contracted with another entity. The developer shall pay a reasonable fee to defray the expenses of such administration.
   (B)   Resales of owner units shall be administered by the Board. Re-rental of rental units shall be the responsibility of the owner of the rental units under the supervision of the Board.
   (C)   The developer, with the consent of the Board, shall designate an application period during which applications to purchase or rent affordable housing units will be accepted.
   (D)   Applications shall be accepted only if submitted on an application form prepared and/or approved by the Housing Administrator. Applications shall be completely filled out and notarized. Knowingly or intentionally making any false statement on a form shall be grounds for disqualifying an applicant even if the applicant is otherwise eligible. The following information shall be required for a prospective purchaser or renter:
      (1)   Four consecutive pay stubs dated within 120 days of the interview date or one recent pay stub and a letter from each and every current employer stating present income in an annualized figure plus expected income from tips, overtime or other extra earnings.
      (2)   A letter or appropriate reporting form verifying, without limitation, social security, unemployment, disability, pension or other benefits, including those received by an adult caretaker for the benefit of a minor child.
      (3)   A letter or appropriate reporting form verifying any other sources of income claimed by the applicant or household member.
      (4)   A copy of IRS form 1040, 1040A or 1040EZ, as applicable, and state income tax returns for each of the three years prior to the date of the interview.
      (5)   Reports that verify income from bank accounts, securities, trust funds or other income-producing properties.
      (6)   Reports that verify assets that do not earn regular income such as non- income-producing real estate and savings with delayed earnings provisions.
      (7)   Birth certificates or social security cards for children or for any household member not listed on IRS forms.
   (E)   The Board or developer shall determine whether the applicant meets the income and other requirements established in these regulations. The review process for a prospective purchaser shall involve a credit background report; to be an eligible applicant, the applicant shall have an acceptable credit history such that there is realistic possibility that he/she will be approved for a mortgage.
   (F)   The Board or developer will determine which eligible applicants shall be offered the opportunity to purchase or rent affordable housing units. Selection from among the eligible applicants shall be on a random basis subject only to the priority schedule established in division (G) and the provisions established thereunder.
   (G)   Residency and size of household priorities.
      (1)   A household of the size provided for in this division shall have priority over households with a lesser number of persons for one-bedroom, two- bedroom and three-bedroom units.
                     Household Size
      Unit Type             (persons)
      3-bedroom             4 or more *
      2-bedroom                3
      1-bedroom                2
* NOTE: A household of more than 4 shall be treated the same as a household of 4.
      (2)   All applicants shall be classified in one of the priority categories set forth above on the basis of the information provided in the initial application.
   (H)   Appeals. In the event that an applicant is determined to be ineligible for a low- or moderate-income unit by the Housing Administrator, the applicant may submit additional proofs and request reconsideration by the agency. Such request for reconsideration shall be made within ten days of receipt of notice of denial by the applicant.
   (I)   Waiting list. A waiting list must be established for the remaining eligible applicants. After all the units are occupied, the developer or the Board may choose to accept new applications. If an applicant is deemed eligible, the applicant shall be placed on the waiting list at the bottom of the particular priority classification for which the applicant qualifies. The developer or the Board shall periodically recertify the applicants on the waiting list to ensure that the list remains current and that the applicants are still qualified for the units to which they applied.
('74 Code, § 131-82) (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)
§ 153.011 INCOME ELIGIBILITY STANDARDS.
   (A)   The agency shall establish income eligibility ceilings for low- and moderate- income units for various sized households based upon United States Department of Housing and Urban Development “uncapped median income by family size” for Camden County and as adopted by COAH. No applicant with a household income in excess of these ceilings shall be eligible to rent the low- and moderate- income units.
   (B)   Upon annual adoption of updated income standards by COAH, the Housing Administrator shall modify its income eligibility ceilings accordingly.
   (C)   For purposes of determining income and eligibility, the Housing Administrator shall consider:
      (1)   All sources of income, whether taxable or nontaxable, including social security and pensions.
      (2)   Imputed income. For the purpose of determining eligibility and rents, interest on the present value of real property and extraordinary personal property owned by the applicant shall be imputed and deemed additional income. Interest shall be imputed at the average interest rate on money market accounts in the region as determined by the Housing Administrator.
      (3)   The income and assets of all members of the household as well as the income and assets of any individual who is expected to occupy the unit for which the household is seeking to qualify shall be included in the determination of eligibility and of rents. The form used for verification of household income shall include an affidavit attesting that the application contains the complete income of all current or anticipated household members.
('74 Code, § 131-83) (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)
§ 153.012 INITIAL SALE AND RENTAL PRICES.
   (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
§ 153.013 PROCEDURE FOR RESALE TRANSACTIONS.
   (A)   All resale transactions of affordable housing units shall be administered by the Board. From the date on which the Board receives a notice of intent to sell by the owner of a low- or moderate-income unit, the Board shall have the exclusive right to purchase the unit or to refer prospective purchasers to that unit for a period of 90 days unless waived in writing by the Board. In the event that a contract for the unit is executed within the 90-day period set above and the prospective buyer is unable to close, the period during which the Board shall have the exclusive right to market the unit is automatically extended for a period of 21 days from the date it is notified of the buyer's inability to close.
   (B)   In the event that no contract has been entered into for the unit at the end of a 90-day period, the owner of the unit may seek approval from the Board to sell the unit directly. If the Board determines at that point not to purchase the unit, it shall authorize the applicant to sell the unit as set forth below. However, if the Board, upon investigation of the circumstances, determines that the failure to enter into a contract was the result of negligence, absence of good faith effort or lack of cooperation on the part of the seller, the Board shall require the applicant to attempt to sell the unit for an additional 90-day period.
   (C)   In the case of a low- income unit, to a low- or moderate- income buyer, or in the case of a moderate-income unit to a buyer whose income does not exceed 120% of median, any subsequent sale shall be fully subject to the resale restrictions contained in these regulations. The deed to the above income purchaser shall specifically contain a deed restriction establishing that it is subject to all the affordability controls outlined in this subchapter.
('74 Code, § 131-85) (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
§ 153.014 CALCULATION OF RESALE PRICE.
   The resale price of the affordable housing unit shall be the base price increased pursuant to divisions (A) and (B) herein.
   (A)   Percentage increase in household income. The price approved by the Board at which the seller acquired the property shall be the base price. The base price shall be multiplied by 100% plus the percentage increase in the HUD uncapped median income by family size for the county from the time of acquisition of the property to the date that notice of intent to sell is given to the Board. For example, if the base price is $30,000 and the median income at the time of the initial acquisition is $32,000 and at the time of the resale transaction the median income has increased 25% to $40,000 then the resale price is as follows:
      100 + 25 = 1.25
      100 100
    $30,000 x 1.25 = $37,500
   (B)   Improvements.
      (1)   In addition, the seller shall be entitled to add to the selling price of the unit the cost of an eligible capital improvement to the affordable housing which, pursuant to N.J.A.C. 5:93-9.11, renders the unit suitable for a larger household.
      (2)   Upon request of an owner of an affordable housing unit, the Board shall consider within 30 days whether to grant prior approval of an improvement and to approve a specific dollar amount up to the amount actually expended for that improvement.
('74 Code, § 131-86) (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)
§ 153.015 EXEMPT SALES.
   (A)   The following transactions shall be deemed non- sales for the purpose of this plan. The owner of the affordable unit shall be entitled to a statement of exemption from the agency upon application.
      (1)   Transfer of ownership of an affordable housing unit between husband and wife.
      (2)   Transfer of ownership of an affordable housing unit between former spouses as a result of a judicial decree, judgment or order of divorce, but not including sales to third parties.
      (3)   Transfer of ownership of an affordable housing unit as a result of inheritance.
      (4)   Transfer of ownership of an affordable housing unit through an order of the Superior Court.
   (B)   A grant of exemption shall not eliminate the resale control restriction set forth in these regulations. Any subsequent sale shall be subject to all of the terms of these regulations.
('74 Code, § 131-87) (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)
§ 153.016 RENTAL INCREASES.
   All re-rental transactions shall be administered by the Board. The rents of affordable housing units may increase annually based on the percentage increase in median income for the county housing region as determined from the uncapped Section 8 income limits, published by HUD, or other recognized standard adopted by the COAH that applies to the rental housing unit.
('74 Code, § 131-88) (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)
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