(A) The restrictive covenant governing the deeds of the low- and moderate-income units shall include an option permitting purchase of the affordable unit at the maximum allowable restricted sales price at the time of the first nonexempt sale after controls on affordability have been in effect on the unit for the period specified in this subchapter. The option to buy shall be available to the township, the State Department of Community Affairs (DCA), the State Housing and Mortgage Finance Agency (HMFA) or a qualified nonprofit agency as determined by COAH.
(B) All restrictive covenants governing low- and moderate-income units shall require the owner to notify the Board by certified mail of any intent to sell the unit 90 days prior to entering into an agreement for the first nonexempt sale after controls have been in effect on the housing units for the period specified in this subchapter.
(C) Upon receipt of such notice, the option to buy the unit at the maximum allowable restricted sales price shall be available for 90 days. The Board shall notify the township, DCA, HMFA and COAH that the unit is for sale. If the township exercises this option, it may enter into a contract of sale. If the township fails to exercise this option within 90 days, the first of the other entities giving notice to the seller of its intent to purchase during the 90-day period shall be entitled to purchase the unit. If the option to purchase the unit at the maximum allowable restricted sales price is not exercised by a written intent to sell, the owner may proceed to sell the housing unit. If the owner does not sell the unit within one year of the date of the delivery of notice of intent to sell, the option to buy the unit shall be restored and the owner shall be required to submit a new notice of intent to sell 90 days prior to any future proposed date of sale.
(D) Any option to buy a housing unit at the maximum allowable restricted sales price shall be exercised by certified mail and shall be deemed exercised upon mailing.
(1) Township option.
(a) If the Board, as an entity of the municipality, elects to purchase a low- or moderate-income unit pursuant to this subchapter, it may:
1. Convey or rent the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the maximum allowable restricted sales price or rental for a period of up to 30 years.
2. Convey the unit at fair market value subject to the deposit of the price differential in a trust account devoted solely to the creation, rehabilitation or maintenance of low- and moderate- income housing. “Price differential” is defined as the difference between the restricted sales price and fair market value as determined at the date of a proposed contract of sale after reasonable real estate broker fees have been paid.
3. Money in the trust account may not be expended until the Board develops a plan for its use which is approved by the Township Committee.
(b) In the event that the township purchases low- income housing units, the township shall maintain them as low-income housing units.
(c) In the event that the township elects to purchase low- or moderate-income housings and convey them at fair market value, the township shall:
1. Notify COAH of any proposed sale and resale price 90 days before closing.
2. Notify COAH of the price differential.
3. Deposit the price differential in a trust account devoted solely to the creation, rehabilitation or maintenance of low- and moderate- income housing.
4. Notify COAH by February 1 of each calendar year of the existing balance within this trust account.
(d) Money deposited in trust accounts may not be expended until the municipality submits and COAH approves a repayment housing plan. COAH may approve the repayment housing plan if it determines that it provides a realistic opportunity for the creation, rehabilitation or maintenance of low- and moderate- income housing.
(e) The township shall have the right to determine that the most desirable means of promoting an adequate supply of low- and moderate-income housing is to prohibit the exercise of the repayment option and maintain controls on lower-income housing units sold within the municipality beyond the period required by this subchapter. Such determination shall be made by resolution of the municipal governing body. The resolution shall specify the time period for which the repayment option shall not be applicable. During such period, no seller in the municipality may utilize the repayment option permitted by division (D)(4) below.
(f) If the township exercises the option outlined above, it shall:
1. Provide public notice in a newspaper of general circulation.
2. Notify the Board of its governing body's action. The Board shall ensure that the deed restriction on all affected housing units reflects extended period of controls.
(2) State option. When the DCA or HMFA elects to purchase a low- or moderate- income unit pursuant to this section it may:
(a) Convey or rent the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental; or
(b) Convey the unit at fair market value and utilize the price differential to subsidize construction, rehabilitation or maintenance of low- and moderate-income housing within the appropriate housing region.
(3) Nonprofit option. Nonprofit agencies that have been designated by COAH shall be eligible to purchase low- or moderate-income units pursuant to this section for the sole purpose of conveying or renting the housing unit to a low- or moderate-income purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental. Low-income units shall be made available to low-income purchasers or tenants and the housing unit shall be regulated by the restrictive covenant and lien adopted by COAH. The term of the controls on affordability shall be the same as those required by this subchapter.
(4) Seller option. An eligible seller of a low- or moderate-income unit which has been controlled for the period established in this plan who has provided notice of an intent to sell may proceed with the sale if no eligible entity as outlined in § 153.019 exercises its option to purchase within 90 days.
(a) The seller may elect to:
1. Sell to a qualified low- and moderate- income household at the controlled unit sales price, provided that the unit is regulated by the restrictive covenant and lien adopted by the agency for a period of up to 30 years; or
2. Exercise the repayment option and sell to any purchaser at market price, provided that 95% of the price differential is paid to the agency, as instrument of the municipality, at closing.
(b) If the sale will be to a qualified low- and moderate-income household, the Board shall certify the income qualifications of the purchaser and shall ensure that the housing unit is regulated by the restrictive covenant and lien required by the Board.
(c) The Board shall examine any contract of sale containing a repayment option to determine if the proposed sales price bears a reasonable relationship to the housing unit's fair market value. In making this determination, the Board may rely on comparable sales data or an appraisal. The Board shall not approve any contract of sale where there is a determination that the sales price does not bear a reasonable relationship to fair market value. The Board shall make a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.
(d) The Board shall also adopt an appeal procedure by which a seller may submit written documentation requesting the Board to recompute the repayment obligation if the seller believes an error has been made or to reconsider a determination that a sales price does not bear a reasonable relationship to fair market value. A repayment obligation determination made as a result of an owner's appeal shall be a final administrative determination of the agency.
(e) The repayment shall occur at the date of closing and transfer of title for the first nonexempt transaction after the expiration of controls on affordability. Repayment proceeds shall be deposited in a trust account devoted solely to low- and moderate-income housing. Money deposited in trust accounts may not be expended until the agency develops and obtains township approval of a plan for its use.
(5) Continued application of options. When a housing unit has been maintained as a low- or moderate-income unit after controls have been in effect for the period specified in § 153.019, the restrictive covenant governing the housing units shall allow the township, the state, nonprofit agencies and sellers of low- and moderate- income units to again exercise all the same options as provided in this subchapter.
('74 Code, § 131-92) (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