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Ordinances

TOWNSHIP OF VERNON
ORDINANCE #05-04

AFFORDABLE HOUSING ORDINANCE OF THE TOWNSHIP OF VERNON

ARTICLE I

Section I Title

1.1 This Ordinance shall be known and may be a cited as the "Affordable Housing Ordinance of the Township of Vernon".

Section 2 Purpose

2.1 This ordinance is intended to establish and facilitate how housing rehabilitation and new construction can be provided for low and moderate income households within the Township of Vernon in order for the Township to meet its housing obligations as determined by the New Jersey Council on Affordable Housing (COAH).

2.2 It is intended to provide technical and financial assistance to eligible homeowners to rehabilitate homes occupied by low and moderate - income households.

2.3 It is intended to provide a mechanism for eligible homeowners to gain access to loans and/or grants from the Vernon Township Housing Trust Fund.

2.4 Rehabilitation funding shall be obtained from grant programs sponsored by the New Jersey Department of Community Affairs and/or funding from the Township Housing Trust Fund and/or other sources to be determined.

2.5 Vernon Township has entered into three Regional Contribution Agreements with municipalities in order to partially meet the present and prospective need component of its obligation (NJAC 5:93-6).

Section 3 Definitions

3.1 Words and phrases defined in the "Fair Housing Act", the "Municipal Land Use Law" (NJSA 40:55D-1 et seq.) and in the "Substantive Rules" of the Council on Affordable Housing (COAH) (NJAC 5:93-13) shall be incorporated in this ordinance as if written herein.

3.2 Fair Housing Program shall mean the program provided under the terms of this Ordinance.

3.3 Gross Income shall mean the total income of all members of an applicant's household including but not limited to: wages, tips, interest, dividends, and retirement funds.

3.4 Housing Administrator shall be appointed by the Township Manager and may be retained as an experienced individual or agency to assist in the administration of the housing rehabilitation program and any program further approved by the Township Council and COAH.

3.5 Housing Trust Fund shall mean the Vernon Township Housing Trust Fund established for financing low and moderate - income housing rehabilitation and development.

3.6 Indigenous Housing Need means deficient housing units occupied by low and moderate - income households within a municipality.

3.7 Rehabilitation shall mean the restoration of a deficient or substandard dwelling unit to a safe and sanitary condition as provided herein.

Section 4 General Provisions

4.1 Eligibility

Eligibility is limited to only owners of dwelling units located within Vernon Township for rehabilitation assistance provided by this ordinance.

a. A homeowner who is a member of either a low or moderate income household who occupies the dwelling unit to be rehabilitated, or an owner who rents same dwelling unit to be rehabilitated to a low or moderate income household shall be eligible for the assistance provided by this ordinance. The owner must further agree to rent the rehabilitated dwelling unit to a low or moderate - income household for a required minimum time period and rate consistent with COAH guidelines. In any case, proof of income of the household occupying the rehabilitated unit shall be required and reviewed by the Housing Administrator.

b. Any dwelling unit which is proposed for rehabilitation shall be located in the Township of Vernon and shall be considered deficient or substandard as determined by the Housing Administrator who may seek advice from the Township Construction Official. In order to be deficient, a unit must satisfy any two of the following characteristics:

1. Constructed prior to 1940.
2. Occupied by more than one person per room.
3. No private entrance to the dwelling unit.
4. No exclusive access to complete plumbing facilities which meet the health and sanitary codes of Vernon Township.
5. No adequate kitchen facilities such as piped water, a safe operating stove or an operating refrigerator.

Any unit shall be considered substandard if it has deficiencies that violate the U.S. Department of Housing and Urban Development (H.U.D.) Section 8 Existing Housing Quality Standards.

c. Upon completion, a rehabilitated unit shall be safe and sound and meet all health and safety code requirements as certified through the issuance of a Certificate of Occupancy.

d. The homeowners shall, in writing, agree to comply with all the requirements of this Ordinance, the rules and regulations established by COAH, and any other applicable ordinance of Vernon Township at the time the agreement for assistance under this Ordinance is executed.

4.2 Effect on Homeowner

Owners who secure financial assistance under the terms of this Ordinance shall be entitled to the following rights and shall undertake the following obligations:

a. The right to apply for, and receive special property tax assessment treatment in accordance with applicable state law.

b. The obligation to place a deed restriction on the property specifying that only low or moderate - income households may occupy the designated dwelling unit. The deed restriction shall take effect on the date the application is approved and money has been made available for the rehabilitation project. The deed restriction shall be in effect for six years for owner-occupied units and ten years for renter-occupied as per N.J.A.C. 5:93-5.2(g). The beginning of the restricted time period shall be from the date the certificate of occupancy is issued following completion of the rehabilitation work. Sale of the deed-restricted property shall not affect the deed restriction.

c. The obligation to sell or rent the dwelling unit at prices within the range of affordability as set forth by COAH for the period of the deed restriction. Increases in the affordability controls may be granted upon written application to, and review by the Housing Administrator assuring compliance with COAH's requirements for changes in the affordability controls.

4.3 Penalties for Noncompliance

No financial assistance from the Housing Trust Fund shall be disbursed to any applicant without full compliance with the requirements of this Ordinance and other applicable regulations. Any person who violates or who fails to comply with this Ordinance or the other applicable regulations shall be penalized no more than $1,000.00 and/or jailed no longer than ninety days pursuant to this Ordinance or such other period of time as may be permitted pursuant to other applicable State regulations and, as part of the penalty, shall make restitution of any and all funds paid from the Housing Trust Fund. Nothing herein shall prevent the Township of Vernon from taking such other lawful action as is necessary to prevent or remedy any violation.

Section 5 Administration

Under this section, Vernon Township undertakes to actively market through advertising in the media, distributing flyers, etc. the availability of rent or sales price restricted units, which are to be made available to low and moderate income households. The Housing Administrator is responsible for these activities.

5.1 Staff

a. The Housing Administrator shall perform the following duties:

1. Conducting an Affirmative Marketing Program:

a. Mailing to all homeowners at lease once a year, an announcement of the Fair Housing Program. This announcement shall include an explanation of the eligibility requirements as well as the procedures for making application for rehabilitation assistance under the program.

b. Conducting at least one well publicized public meeting to outline and answer questions about the Fair Housing Program.

c. Issuing periodic press releases to inform the public of news related to the Fair Housing Program and to promote interest in the program.

d. Preparation of information/application packets for distribution to interested homeowners.

2. Preparation of the necessary applications, financial statements, a summary of the commitments to the rules and regulations of the program, and such other forms to be executed in administering the program. The final set of forms and documents prepared by the Housing Administrator shall be approved by the Township Manager. The appropriate forms shall include, along with other data deemed appropriate, proof of ownership, income qualifications or the occupants of the rehabilitated unit, the deed restrictions and the time period for affordability controls applicable to the property, a description of the work to be performed, the total cost of the work, how much will be a loan and how much a grant, as well as the method of repaying any loan.

3. Determining the eligibility of the applicant based on the requirements of this Ordinance and the data provided on the forms required as part of the application procedure.

4. Maintenance of an updated file on available governmental and non-governmental programs for financial assistance for low and moderate income households, including eligibility requirements, application forms, filing deadlines, and whether funding is currently available.

5. Providing technical assistance to eligible low or moderate - income applicants to apply for financial assistance for housing rehabilitation from state and federal programs and from the Housing Trust Fund.

6. Determining the deficiencies of an applicant's dwelling unit and submit the findings in writing to be kept on file as part of the application.

7. Maintaining a list of approved contractors based upon satisfactory references on past work performed and on satisfactory credit ratings.

8. Determining whether the proposed work to be performed meets the parameters of this Ordinance and whether the cost to complete that work is reasonable. Said determination shall be in writing and kept on file as part of the application.

9. Conducting appropriate, periodic inspections of the work being done and, when satisfactorily completed, issue a certificate of compliance bearing the date the certificate was issued. A copy of this certificate shall be kept as part of the file on the application.

10. Preparation and periodic presentation (at least once a year) to the Township Manager of a report on the number and type of rehabilitation applications received and the amount of technical assistance provided by the Housing Administrator. The report shall contain, at a minimum:

a. The number of applications received and approved.
b. The income levels of those approved.
c. The number of rehabilitated dwelling units completed.
d. The rehabilitation cost of each unit.
e. A summary of the type of work completed.
f. How many applications are currently being processed.

11. Maintaining regular office hours to be available to meet with interested homeowners.

12. The Housing Administrator may call upon the following municipal employees to aide in carrying out the Ordinance:

- Township Planner
- Zoning Officer
- Health Officer
- Construction Official
- Township Engineer
- Township Attorney
- Township Treasurer

The Housing Administrator can obtain the services of professional consultants, where necessary, in order to effectuate consistency with the Fair Share Plan.

5.2 Funding

a. The Township shall include in its annual budget sufficient funds to pay for the costs of administering this Ordinance. The money expended for preparing and implementing the Fair Housing Ordinance shall, in accordance with the Fair Housing Act, be considered a mandated expenditure exempt from the limitations on final appropriations imposed pursuant to P.L. 1976, c. 68 (C.40A:4-45.1 et seq).

b. The source of funding to administer and implement this program may include:

1. State and federal programs
2. The Housing Trust Fund
3. Municipal budget appropriations

c. State and federal funds shall be disbursed according to the rules and regulations of the agency administering the funds.

d. Housing Trust Fund monies shall be available for housing rehabilitation. The funds shall be disbursed as grants for rehabilitating deficient dwelling units owned or occupied by low-income households. The funds shall be disbursed as loans bearing two percent (2%) simple interest for rehabilitation deficient dwelling units owned and occupied by low and moderate income households or deficient dwelling units owned by an absentee landlord but occupied by either a low or moderate income household.

e. The above loans may be disbursed to a qualified resident homeowners who agree to a lien on the property for repayment of the loan plus accrued interest. The loan and interest shall be repaid as determined by the Township Housing Administrator and the homeowner. Where the property is sold or transferred prior to the loan being repaid, the entire remaining balance of the loan plus accrued interest shall be paid to the Housing Trust Fund at the time of transfer.

Section 6 Procedures for Making Application, Review and Approval

6.1 Application

Applications and other required forms shall be made available at the office of the Housing Administrator. Technical assistance shall be available from that office to assist applicants in completing and submitting an application. There shall be no fee for filing an application.

6.2 Review

a. The Housing Administrator shall determine the completeness of the application.

b. Upon a determination of completeness, the Housing Administrator shall determine whether the applicant meets the eligibility criteria.

c. Upon a determination that the applicant is eligible under the program, the Housing Administrator shall inspect the property to determine whether it qualifies as deficient under this Ordinance.

d. Upon a determination that the dwelling unit is deficient, the Housing Administrator shall cause a written description of the work required to be completed in order to meet the criteria of this Ordinance and related health and safety codes and submit a copy to the applicant and retain one copy to be kept as part of the applicant's file. It shall be prepared by an individual qualified to make such written description.

e. Upon receipt of this description of the work required to be completed, the applicant shall:

Indicate any discrepancies or omissions in writing to the Housing Administrator. The Housing Administrator shall review the applicant's comments and provide a written response, including any appropriate adjustments to the original report. A copy of this response shall be submitted to the applicant with a copy to be kept as part of the applicant's file.

f. Following the final determination of the work to be performed and acceptance by the homeowner, the Housing Administrator shall seek written proposals, together with the cost to complete the work, from appropriate qualified contractors. A list of these contractors shall be kept in the office of the Housing Administrator. The Housing Administrator shall recommend a contractor based upon completeness of the proposal and the lowest overall cost submitted. This recommendation shall be submitted to the applicant for review and concurrency.

6.3 Action on the Application

a. Upon review of the contractor's written proposal and cost estimate, the Housing Administrator shall approve, disapprove, or modify the proposal as might be appropriate to meet the requirements of the applicable ordinances and requirements of this program and the judgment of both as to the reasonableness of the cost. If the proposal is modified or disapproved, the applicant and the contractor may meet with the Housing Administrator to make appropriate modifications until the application is approved.

b. Upon approval of the work to be performed and the related cost, together with the eligibility of the applicant, all contracts shall be executed.

1. The contract between the applicant and the Township of Vernon and/or other governmental agencies covering the amount of the loan, the purpose of the loan, the deed restrictions and affordability controls, payback requirements for any loans, manner of payment to the contractor including retainage for full and acceptable construction, penalties for noncompliance, and such other requirements of the program as required by law.

2. The contract between the contractor and the applicant outlining the work to be performed, the cost including an amount for retainage to assure the acceptable completion of the construction, and the time of performance. This contract must be reviewed by and acceptable to the Township of Vernon or the other governmental agency covering the amount of the loan.

c. All payments which require expenditures from the Township Housing Trust Fund shall be made by the Township to the contractor in accordance with the provisions of the contract outlined in 5.3b2 above, subject to a guarantee that the money will go toward completion of the work included in the application and the contract. Any agreements with state and/or federal agencies will be conditioned upon the criteria of those agencies.

d. Following completion of the work, the Housing Administrator shall inspect the dwelling unit and certify whether or not the work has been satisfactorily completed. If the work is sufficient, a Certificate of Compliance shall be issued. If the work is insufficient, the contractor shall be notified and given 90 days to remedy the conditions cited. If the conditions are not corrected within 90 days, the Housing Administrator shall be authorized to either use remaining funds of the retainage under the construction contract or such other remedies as appropriate to complete the work in a satisfactory manner.

Section 7 Affordable Marketing Plan

7.1 The Township of Vernon has a 1987-1999 COAH Fair Share Obligation of 125 units of which 54 are new construction. These 54 units are part of a Regional Contribution Agreement (RCA) program with Ogdensburg (20 rehab units), Ridgefield (20 rehab units) and Passaic (14 rental units). The remaining 71 units will be for rehabilitation of housing units within the township. This Ordinance incorporates an affirmative marketing plan, which shall apply to all future developments that will contain low and moderate - income units:

a. The affordable marketing plan is a regional marketing strategy designed to attract buyers and/or renters of all majority and minority groups regardless of sex, age or number of children, to housing units which are being marketed by a developer/sponsor, municipality and/or designated administrative agency of affordable housing. The plan will address the requirements of N.J.A.C.5:93-11. In addition, the plan prohibits discrimination in the sale, rental, financing or other services related to housing on the basis of race, color, sex, religion, handicap, age, familial status/size or national origin. Vernon Township is in the housing region consisting of Sussex, Bergen, Passaic and Hudson Counties. The affirmative marketing program is a continuing program and will meet the following requirements:

b. All newspaper articles, announcements and requests for applications for low and moderate - income units will appear in the New Jersey Herald, Star Ledger, and The Advertiser News North.

c. The primary marketing will take the form of at least one press release sent to the above mentioned publications and a paid display advertisement in each of the above newspapers.

d. Additional advertising and publicity will be on an as needed basis. The advertisements will include a description of the:

* Unit street address.
* Directions to housing unit.
* Number of bedrooms per unit.
* Range of prices/rents.
* Income information.
* Location of applications including business hours and where/how applications may be obtained.

e. All newspaper articles, announcements and requests for applications for low and moderate - income housing will appear in the Vernon Township municipal web site, Vernon Township Newsletter, and any other religious and organizational publications/newsletters which may exist within the region at that time.

f. The following regional radio and/or cable television stations will be used:

* WNNJ
* New Jersey Network
* Service Electric - Channel 8 Community Bulletin Board

g. The following is the designated location of applications, brochures, signs and/or posters used as part of the affirmative marketing program including specific employment centers within the region:

* Municipal Buildings
* Major Employers
* County Library Branches
* Realtor Offices
* Senior Community Center
* Others as may be identified at the time of need.

h. At the time of need, a listing of community contact persons and/or organizations in Sussex, Bergen, Passaic and Hudson Counties who will provide assistance in the affirmative marketing program. Particular emphasis on contacts that will reach out to groups which are least likely to apply for housing within the region.

i. Periodic flyers/brochures and applications will be distributed to the County Board of Realtors in the housing section for circulation in their journal for distribution among their members.

j. Applications will be mailed directly to prospective applicants upon request.

k. Additionally, periodic informational brochures and applications will be sent to the administrative staff of each of the following agencies in the counties of Sussex, Bergen, Passaic and Hudson:

* Welfare/Social Service Board
* Local Rental Assistance Office
* Library (County & Municipal)
* Area Community Action Agencies
* Office on Aging
* Local Housing Authority/Agency

7.2 The following is a description of the random selection method that will be used to select occupants of low and moderate income housing:

a. Applicants will be qualified and provided opportunity on a first come, first served basis within each category (low income and moderate income) as modified below;

b. The Vernon Township Housing Program will be the agency to contract with the Township of Vernon to administer the affirmative marketing program. The Vernon Township Housing Program may be a private organization, a County organization or a unit of the Township (in which case there will be no contract). The Vernon Township Housing Program will have the responsibility to income qualify low and moderate income households; to place income eligible households in low and moderate income units upon initial occupancy; to provide for the initial occupancy of low and moderate income units with income qualified households; to continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls; to assist with advertising and outreach to low and moderate income households; and to enforce the terms of the deed restriction and mortgage loan as per N.J.A.C. 5:93-9.1. The Housing Administrator within Vernon Township is the designated housing officer to act as administrator of the Vernon Township Housing Program if a unit of the Township or to coordinate with same pursuant to the contract if the agency is private or County. The Vernon Township Housing Program will provide counseling services to low and moderate income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements and landlord/tenant law;

c. Households who live or work in the COAH-established housing region may be given preference for sales and rental units constructed within that housing region. Applicants living outside the housing region will have an equal opportunity for units after regional applicants have been initially serviced. Vernon Township intends to comply with N.J.A.C. 5:93-11.7;

d. All developers of low and moderate income housing units will be required to assist in the marketing of the affordable units in their respective developments;

e. The marketing program will commence at least 120 days before the issuance of either temporary or permanent certificates of occupancy. The marketing program will continue until all low and moderate income housing units are initially occupied and for as long as affordable units are deed restricted and occupancy or reoccupancy of units continues to be necessary;

f. The Vernon Township Program will comply with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 12.1.

7.3 Vernon Township currently operates a self-funded program to rehabilitate substandard housing units occupied by low and moderate - income households. The Township may in the future request funding from other sources to supplement the program. Future rehabilitation programs will also be administered by the Vernon Township Housing Administrator. The Vernon Township Housing Administrator will prepare a marketing plan for the rehabilitation program. The rehabilitation program will be consistent with N.J.A.C. 5:93-5.2(b) through 5.2(1).

ARTICLE II

If any section, subparagraph, sentence, clause or phrase of this Ordinance shall be held to be invalid, such decision shall not invalidate the remaining portion of this Ordinance.

ARTICLE III

All Ordinances and parts of Ordinances inconsistent herewith are hereby repealed.

ARTICLE IV

This Ordinance shall take effect immediately upon passage and publication according to law and filing with the Sussex County Planning Board.

NOTICE

NOTICE IS HEREBY GIVEN that the above ordinance was introduced and passed on first reading at the Regular Meeting of the Township Council of the Township of Vernon in the County of Sussex, State of New Jersey held in the Municipal Building on January 10, 2005 and the same came up for final passage at the Regular Meeting of the Township Council held on January 24, 2005 at which time, after persons interested were given an opportunity to be heard concerning said ordinance, the same was passed and will be in full force in the Township according to law.

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IRA WEINER, MAYOR

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PATRICIA A. LYCOSKY, R.M.C.
TOWNSHIP CLERK