*** AGENDA***
August 23, 2006
7:30 P.M.
Regular Meeting of the Mayor and Council of the Borough of Englishtown, 15 Main Street, Englishtown, New Jersey 07726.
1. Meeting Called to Order and Roll Call
2. Statement of Compliance with Sunshine Law
3. Moment of Silence and Salute to the Flag
4. Police Department Recognition Awards
5. Presentation of the 2005 Audit by Eugene Farrell
of Hutchins, Farrell, Meyer & Allison, P.A.
6. Committee Reports
7. Correspondence
8. Open Public Portion/Limited to Agenda Items Only
Limited to Five (5) Minutes per citizen to be determined at Borough Council’s discretion. Any and all situations regarding Borough Personnel, when names are implied or mentioned, are to be brought to the full attention of the Council through an appointment and subsequent disclosure through the Personnel Committee.
9. Old Business:
A. Ordinance No. 2006-18 – Public Hearing & Adoption
Bond Ordinance Providing for the Reconstruction of Hamilton St. and
Irving Place
10. New Business:
B. Ordinance No. 2006-19 – First Reading & Introduction
Amending/Supplementing Housing Standards Ordinance (2005-09)
C. Ordinance No. 2006-20 – First Reading & Introduction
Affordable Housing Development Fee Requirements
Section 1.19.21.3
D. Ordinance No. 2006-21 – First Reading & Introduction
Adding Chapter 2.133 – “Affordable Housing Regulations”
E. Resolution No. 2006-131
Authorizing Purchases Over $800.00
Re-striping of center lines – LaSatta/Mount Vernon
Waiver of License and Fee for Peddlers at Fall Festival
G. Resolution No. 2006-133
Accepting Corrective Action Plan – 2005 Audit
Authorizing Purchases Over $800.00
Installation of lights, sirens and other for new police car
Authorizing Purchases Over $800.00
Two Point Blank Vests – Police Dept.
J. Resolution No. 2006-136
2006 Budget Amendment
K. Resolution No. 2006-137
Authorizing Payment of Borough Bills
11. Public Portion
Limited to Five (5) Minutes per citizen to be determined at Borough Council’s discretion. Any and all situations regarding Borough Personnel, when names are implies or mentioned, are to be brought to the full attention of the Council through an appointment and subsequent disclosure through the Personnel Committee.
12. Executive Session
13. Adjournment
The meeting was called to order by Mayor Reynolds at 7:31 P.M.
Roll Call: Present: C/Soden, C/Rucker, C/Carr, C/Robilotti
Absent: C/Simon, C/Palmieri
Also present were Julie Martin, Municipal Clerk, Christine Robbins, Administration Clerk, Stuart J. Moskovitz, Borough Attorney, Tom Herits, Borough Engineer and Eugene Farrell, Borough Auditor.
Mayor Reynolds stated pursuant to N.J.S.A. 10 4-6 notification of this meeting has been (1) Published in the Asbury Park Press and Home News and the News Transcript the Official Newspapers of the Borough, (2) Posted to the Public at Borough Hall, (3) Copy has been filed with the Municipal Clerk, (4) Copy of this agenda and the Sunshine Statement has been filed with the Mayor and Council. Thus this meeting tonight is deemed in compliance with the Open Public Meetings Act.
There was a moment of silence and salute to the flag.
Mayor Reynolds along with C/Carr and C/ Robilotti present the awards to the officers. Also special recognition was given to Officers MacInnes and Martinson for the largest drug bust in our town and Officer Matlosz for a life saving CPR procedure. A Special Pin of Achievement was presented to the Chief for bringing public acclaim to the Law Enforcement profession.
Presentation of the 2005 Audit
Mayor Reynolds opens the floor to Eugene Farrell of Hutchins, Farrell, Meyer and Allison, PA to discuss the 2005 Audit.
Gene Farrell happily reports that the fund balance in the operating fund increased. Utilities balances are very healthy. Level of debt is very good. Financial condition is very positive. There is some concern regarding the Cap Factor. It is required that we go down for a Cap Waiver every year. This may be an annual event with the Borough because of the magnitude of the Cap Waiver. Financial percentage collections are very good this year. There were two management letter comments one related to the form of finance offices. That problem no longer exists. The other was a situation with the Water Department where a customer meter wasn’t read correctly and service was diverted. This was reported in the unit report.
C/Soden asks how can we avoid going for a Cap Waiver every year?
Eugene Farrell responds, the only option you have is a referendum.
Mayor Reynolds asks when a referendum could be done.
Eugene Farrell responds that it would have to be done in early February.
Discussion continued between Mr. Farrell and Mayor Reynolds.
C/Carr states that the water diversion report came back from the prosecutor and that there is no proof that anyone committed a crime and no way to prove it. The prosecutor recommended that the Borough do a full audit of the water department for a few years.
Eugene Farrell commented that he recommends a policy and procedure manual. He suggested having the audit. He also suggested to have each department head sit down and memorialize the procedures that are in place so we have it documented.
Mayor Reynolds asked if we do a full audit on the Water Department in addition to the regular audit what would the cost be?
C/Carr responds there are also recommendations for standard procedures that should be in place.
Eugene Farrell responds somewhere between $5,000 and $7,500.
Mayor Reynolds asks if there are any more questions for Mr. Farrell. All respond no.
Mayor Reynolds thanks Mr. Farrell for coming.
C/Robilotti
C/Soden
C/Carr
Mayor Reynolds asks if the $8000 would be allocated to the consultant.
C/Carr states yes. Other $12,000 will give professional services out of their department.
Mayor Reynolds asks if the consultant firm was requesting any matching funds from us.
C/Carr responds no. We will not have to pay for travel expenses. The company is Thompson Design group who is a nationwide consultant. The consultant’s name is Mr. Talwar who travels into New Jersey twice a month.
Mayor Reynolds stated that this was never budgeted for and that he will have to check with Laurie. If it cannot be implemented this year we can address it in the 2007 budget.
Julie Martin responds that minutes have already been adopted and we can read the correction into these minutes. She asked if council wishes to do a lengthy, time consuming verbatim or summary. The formal rules of minutes are a record of what is done, not what is said. How should we proceed?
C/Carr responded that she would like to clarify minutes regarding employee raises. It was out of context. In listening to the tape, this was an arbitrary number off the top of Paula Kuchinski’s head. I would like minutes to reflect that I listened to the tape and Paula never suggested that the employees should get a $0.03 an hour raise.
Julie Martin stated that it would be in the minutes of today August 23, 2006.
Mayor Reynolds stated that at the last council meeting we asked our Engineer to put together some numbers and what it would cost.
C/Carr stated that was for COAH Certification, this is for your town center designation. We need to confer with DCA and let them know what process we are going through and if
this is sufficient.
Julie Martin, Municipal Clerk suggested that we get consensus on how to go forward with minutes whether to summarize or verbatim.
Mayor Reynolds stated that we have two council members not here and asked if we want to go with the four council members?
C/Carr states that if not verbatim then we need to leave conversation out.
Mayor Reynolds stated that since we have these proceedings recorded we should summarize. If anyone wants to listen to a detailed subject of minutes, they can come to Borough Hall and listen to it. If anyone questions the minutes, we have the option to amend them. You also have the option to request something specific be transcribed into the minutes.
Julie Martin requested consensus to summarize.
Ayes: C/Soden, C/Rucker, C/Carr, C/Robilotti
Julie Martin, Municipal Clerk reports:
Mayor Reynolds requested that we get a price to see exactly what the cost is.
Mayor Reynolds opens the floor to the public for discussion limited to agenda items only.
There being no questions or comments, a motion to close the public portion was offered by C/Soden and seconded by C/ Robilotti. Passed unanimously.
BOROUGH OF ENGLISHTOWN
Public Hearing & Adoption
BOND ORDINANCE NO. 2006-18
BOND ORDINANCE PROVIDING FOR THE RECONSTRUCTION OF HAMILTON STREET TO HARRISON AVENE AND IRVING PLACE, APPROPRIATING $300,000 THEREFOR AND AUTHORIZING THE ISSUANCE OF $135,000 BONDS AND NOTES TO FINANCE A PORTION OF THE COSTS THEREOF, AUTHORIZED IN AND BY THE BOROUGH OF ENGLISHTOWN, IN THE COUNTY OF MONMOUTH, NEW JERSEY
BE IT ORDAINED by the BOROUGH COUNCIL OF THE BOROUGH OF ENGLISHTOWN, IN THE COUNTY OF MONMOUTH, STATE OF NEW JERSEY (not less than two-thirds of all members thereof affirmatively concurring), AS FOLLOWS:
Section 1. The improvements described in Section 3 of this bond ordinance are hereby authorized as general improvements to be undertaken in and by the Borough of Englishtown, in the County of Monmouth, New Jersey (the “Borough”). For the improvements or purposes described in Section 3, there is hereby appropriated the sum of $300,000, said sum being inclusive of all appropriations heretofore made therefor and including $150,000 grant funds expected to be received from the New Jersey Department of Transportation and the sum of $15,000 down payment for said purposes as required by the Local Bond Law, N.J.S.A. 40A-2-1 et seq. The down payment is now available by virtue of provision for down payment or for capital improvement purposes in the Capital Improvement Fund of one or more of the previously adopted budgets.
Section 2. In order to finance the costs of said improvements or purposes not provided for by the application of the down payment, negotiable bonds are hereby authorized to be issued in the principal amount not to exceed $135,000, pursuant to the Local Bond Law. In anticipation of the issuance of said bonds and to temporarily finance said improvements or purposes, negotiable bond anticipation notes are hereby authorized to be issued pursuant to and within the limitations prescribed by the Local Bond Law.
Section 3. (a) The improvements hereby authorized and the purposes for which the obligations are to be issued consist of the reconstruction of Hamilton Street to Harrison Avenue and Irving Place, together with all purposes necessary, incidental or appurtenant thereto, all as shown on and in accordance with contracts, plans, specifications or requisitions therefore on file with or through the Borough Clerk, as finally approved by the governing body of the Borough.
(b) The estimated maximum amount of bonds or notes to be issued for the improvements or purposes described in Section 3(a) hereof is $135,000, as stated in Section 2 hereof.
(c) The estimated cost of the improvements or purposes described in Section 3(a) hereof is $300,000, which is equal to the amount of the appropriation herein made therefor. The excess of the appropriation of $300,000 over the estimated maximum amount of the bond or notes to be issued therefor being the amount of funds expected to be received from the New Jersey Department of Transportation and the $15,000 down payment for said purposes.
Section 4. All bond anticipation notes issued hereunder shall mature at such times as may be determined by the chief financial officer of the Borough, provided that no note shall mature later than one (1) year from its date. All notes issued hereunder may be renewed from time to time subject to the provisions of N.J.S.A. 40A:2-8. The notes shall bear interest at such rate or rates and be in such form as may be determined by the chief financial officer, who shall determine all matters in connection with notes issued pursuant to this ordinance, and the chief financial officer's signature upon the notes shall be conclusive evidence as to all such determinations. The chief financial officer is hereby authorized to sell part or all of the notes from time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of payment of the purchase price plus accrued interest from their dates to the date of delivery thereof. The chief financial officer is directed to report in writing to the governing body at the meeting next succeeding the date when any sale or delivery of such notes occurs, such report shall include the amount, the description, the interest rate and the maturity schedule of the notes sold, the price obtained and the name of the purchaser.
Section 5. The following additional matters are hereby determined, declared, recited and stated:
(a) The improvements or purposes described in Section 3 of this bond ordinance are not a current expense and are improvements or purposes that the Borough may lawfully undertake as a general improvement, and no part of the cost thereof has been or shall be specially assessed on property specially benefited thereby.
(b) The average period of usefulness of the improvements or purposes, within the limitations of the Local Bond Law and taking into consideration the amount of the obligations authorized for said purposes, according to the reasonable life thereof computed from the date of the bonds authorized by this bond ordinance, is fifteen (15) years.
(c) The Supplemental Debt Statement required by the Local Bond Law has been duly prepared and filed in the office of the Municipal Clerk, and a complete executed duplicate thereof has been filed in the office of the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey. Such Statement shows that the gross debt of the Borough as defined in the Local Bond Law is increased by the authorization of the $135,000 Bonds and notes provided in this bond ordinance and the obligations authorized herein will be within all debt limitations prescribed by that Law.
(d) An aggregate amount not exceeding $50,000 for interest on said obligations, costs of issuing said obligations, engineering costs, legal fees and other items of expense listed in and permitted under N.J.S.A. 40A:2-20 is included as part of the cost of said improvements and is included in the estimated cost indicated herein for said improvements.
(e) To the extent that moneys of the Borough are used to finance, on an interim basis, costs of said improvements or purposes, the Borough reasonably expects such costs to be paid or reimbursed with the proceeds of obligations issued pursuant hereto.
Section 6. The capital budget of the Borough is hereby amended to conform with the provisions of this ordinance to the extent of any inconsistency herewith. The resolution in the form promulgated by the Local Finance Board showing full detail of the amended capital budget and capital program as approved by the Director of the Division of Local Government Services is on file with the Municipal Clerk and is available there for public inspection.
Section 7. Any grant or similar moneys from time to time received by the Borough for the improvements or purposes described in Section 3 hereof, shall be applied either to direct payment of the cost of the improvements or to payment of the obligations issued pursuant to this ordinance. The amount of obligations authorized but not issued hereunder shall be reduced to the extent that such funds are received and so used.
Section 8. The full faith and credit of the Borough are hereby pledged to the punctual payment of the principal of and the interest on the obligations authorized by this bond ordinance. The obligations shall be direct, unlimited obligations of the Borough, and, unless paid from other sources, the Borough shall be obligated to levy ad valorem taxes upon all the taxable property within the Borough for the payment of the obligations and the interest thereon without limitation as to rate or amount.
Section 9. This bond ordinance shall take effect twenty (20) days after the first publication thereof after final adoption, as provided by the Local Bond Law.
Public Hearing
Mayor Reynolds opened the floor to the public for questions or comments on the above titled ordinance.
There being no questions or comments from the public, a motion to close the public portion was offered by C/Soden and seconded by C/Robilotti. Passed unanimously.
Adoption
A motion to adopt Bond Ordinance No. 2006-18; above titled, was offered by C/Carr and seconded by C/Robilotti. Passed on the following roll call:
Offered by: C/Carr
Seconded by: C/Robilotti
Roll Call: Ayes: C/Soden,C/Rucker, C/Carr, C/Robilotti
Nays: None
Abstain: None
Absent: C/Simon, C/Palmieri
New Business
BOROUGH OF ENGLISHTOWN
ORDINANCE NO. 2006-19 First Reading & Introduction
AN ORDINANCE OF THE BOROUGH OF ENGLISHTOWN AMENDING AND SUPPLEMENTING TITLE 2, “GENERAL LEGISLATION,” OF THE CODE OF THE BOROUGH OF ENGLISHTOWN, NEW JERSEY, IN ORDER TO AMEND THE BOROUGH’S HOUSING STANDARDS ORDINANCE
WHEREAS, the governing body of the Borough of Englishtown determines that there exists a need to amend its Housing Standards Ordinance to provide for greater protection to those of its citizens renting housing accommodations within the Borough;
I. Now therefore be it ordained by the Borough Council of the Borough of Englishtown that Chapter 2.81, entitled “Housing Standards,” of the Code of the Borough of Englishtown, New Jersey is hereby amended and supplemented as follows:
§2.81.02. Definitions.
EMERGENCY – A situation where there is probable cause to believe that an issue of health or safety exists warranting immediate action.
§2.81.03. Rental Property Registration.
F. Right of Entry
2. The Chief of Police of the Borough of
Englishtown is authorized, and may appoint police personnel to [provide
assistants to the Department of Code Enforcement for the enforcement of]
enforce the provisions of this section whenever the Director of Code
Enforcement and/or his designee is unavailable to act, has failed to act, in the
event there is an emergency, or if, in the opinion of the Chief of Police, it is
necessary to act without waiting for the Department of Code Enforcement so to
act. The Chief of Police of the Borough of Englishtown is also authorized to
provide requested assistance from the Director of Code Enforcement for the
enforcement of this Ordinance.
G. Mandatory Inspections.
1. Within six months of the effective date of this Amendment, the Director of Code Enforcement and/or his designee shall have inspected every dwelling registered with the Borough of Englishtown in accordance with this Section 2.81.03, and take all necessary steps to enforce compliance with all appropriate housing codes.
2. Within thirty days of any registration after the date of this Amendment, the Director of Code enforcement and/or his designee shall have inspected the dwelling registered with the Borough of Englishtown in accordance with this Section 2.81.03, and take all necessary steps to enforce compliance with all appropriate housing codes.
Every rental unit registered in accordance with Section 2.81.03 shall be re-inspected at least once a year by the Director of Code Enforcement and/or his designee.
II. Be it further ordained that if any section, subsection, clause, or phrase of this ordinance is held to be unconstitutional or invalid for any reason, such decision shall not affect the remaining portions of this ordinance.
III. Be it further ordained that all ordinances or parts of ordinances inconsistent with this ordinance are hereby repealed to the extent of such inconsistency; and
IV. Be it further ordained that this ordinance shall take effect immediately upon final passage and publication according to law.
A motion to introduce the above titled Ordinance was offered by C/Robilotti and seconded by C/Carr. Passed on the following roll call:
Offered by: C/Robilotti
Seconded by: C/Carr
Roll Call: Ayes: C/Soden, C/Rucker, C/Carr, C/Robilotti
Nays: None
Abstain: None
Absent: C/Simon, C/Palmieri
Julie Martin, Municipal Clerk states the Public Hearing and Adoption on Ordinance No. 2006-19 is scheduled for the September 13, 2006 Council Meeting, 7:30 p.m. at Borough Hall.
BOROUGH OF ENGLISHTOWN
ORDINANCE NO. 2006-20 First Reading & Introduction
AN ORDINANCE OF THE BOROUGH OF ENGLISHTOWN ADDING A NEW
SECTION OF CHAPTER 1.19, WHICH CHAPTER IS ENTITLED “UNIFIED
PLANNING/ZONING BOARD; LAND USE PROCEDURES;
ESTABLISHMENT; COMPOSITION, TO BE KNOWN AS SECTION 1.19.21.3,
ENTITLED “AFFORDABLE HOUSING DEVELOPMENT FEE
REQUIREMENTS”
WHEREAS, the Governing Body of the Borough of Englishtown determines that
there exists a need to amend its Land Use Regulations to conform with State Regulations promulgated in connection with the “Third Round” of obligations set forth by the New Jersey Council on Affordable Housing; and
WHEREAS, the Borough of Englishtown wishes to revise its regulations so as to
maximize the amount of money it collects pursuant to State regulations to enable it
to meet its “Third Round” obligations:
I. NOW THEREFORE BE IT ORDAINED by the Borough Council of the Borough of Englishtown that Chapter 1.19, land use regulations, of the Code of the Borough of Englishtown is hereby amended or supplemented as follows: §1.19.21.3 Affordable Housing Development Fees
A. The purpose of this Section is to establish the standards for the collection, maintenance and expenditure of Development Fees pursuant to COAH’s rules. Fees collected pursuant to this article shall be used for the sole purpose of providing low and moderate-income housing. This article shall be interpreted within the framework of COAH’s rules on Development Fees and the statutory enactments related thereto.
B. The Borough Council finds and declares that the creation and preservation of
affordable housing in the Borough serves the public interest. The purpose of this Section is to create in the Borough a trust fund from payment of Development Fees to assist in the marshaling of public and private moneys dedicated to affordable housing projects and programs.
C. The intent of the Borough through enactment of this Section is to provide revenues with which to fund Regional Contribution Agreements, and/or to construct or rehabilitate housing for low and moderate income families in order for the Borough to meet its legal requirements to provide affordable housing pursuant to the Fair Housing Act and court opinions commonly
known as the “Mount Laurel” decisions.
D. Definitions:
AFFORDABLE HOUSING - Any housing unit with an acquisition price or rent level not exceeding the maximum resale or rent level for low and moderate income housing set forth in N.J.A.C. 5:94-7.2, 5:80-22.1, 5:80-26.2, 5:80-26.6, and 5:80-26.12, all as may be modified from time to time and/or supplemented by regulations involving new rounds of COAH obligations.
COAH -The New Jersey Council on Affordable Housing established under the
Fair Housing Act of 1985.
DEVELOPMENT FEES - Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH rules and regulations.
EQUALIZED ASSESSED VALUE - The value of a property determined by the Borough Tax Assessor through a process designed to ensure that all property in the Borough is assessed at the same assessment ratio or ratios required by law. Estimates at the time of building permit issuance may be determined by he Tax Assessor utilizing estimates for construction cost. Final Equalized Assessed Value will be determined at project completion by the Tax Assessor.
SUBSTANTIVE CERTIFICATION -A determination by COAH approving the Borough’s housing element and fair-share plan in accordance with the provisions of the Fair Housing Act and the rules and criteria as set forth herein.
E. Development Fee Schedule
The following fees are in addition to those set forth in §1.19.21.1 and §1.19.21.2 and
are designed to offset the low and moderate income housing requirements of the Borough:
1. Residential development.
a. Residential Development Fees shall be one per cent (1%) of the higher of the equalized assessed value for residential development, the coverage amount of the Home Owner Warranty document of a for-sale unit, or the appraised value on the document utilized for construction financing for a rental unit, provided no increased density is permitted.
b. If a “d” variance (a variance granted under the authority of N.J.S.A. 40:55D70d (5)) is granted to permit residential development where no residential development is permitted or to increase the number of dwelling units on a tract, then the additional residential units realized (above what is permitted by right under the existing zoning) will incur a bonus Development Fee of six percent (6%) rather than the Development Fee of one percent (1%) as measured in accordance with §1.19.23E.1.a. However, if the zoning on a site has changed during the two-year period preceding the filing of the “d” variance application, the base for the purposes of calculating the bonus Development Fee shall be the
highest density or number of residential units permitted by right during the two year period.
c. The Borough may collect fees exceeding those permitted in this Subsection provided the Borough enters into agreements with developers that offer a financial incentive for paying higher fees. The financial incentive may be in the form of a tax abatement. No agreement may provide for a voluntary Development Fee without also providing for a comparable offsetting incentive. All agreements are subject to COAH approval.
2. Nonresidential development.
a. Nonresidential Development Fees shall be two per cent (2%) of the higher of the equalized assessed value for nonresidential development, or the appraised value on the document utilized for construction financing, provided no increased floor area is permitted.
b. If a “d” variance (a variance granted under the authority of N.J.S.A.
40:55D-70d(4)) is granted to permit an increase in floor area, then the
additional floor area ratio (FAR) realized will incur a bonus Development Fee of six percent ( 6%) rather than the Development Fee of two percent (2%) as measured in accordance with §1.19.23E.2.a. However, if the zoning on a site has changed during the two-year period preceding the filing of the “d” variance application, the base FAR for the purposes of calculating the bonus Development Fee shall be the highest number permitted by right during the two year period.
c. The Borough may collect fees exceeding those permitted in this Subsection provided the Borough enters into agreements with developers that offer a financial incentive for paying higher fees. Such agreements may include, but are not limited to, a tax abatement, increased commercial/industrial square footage, increased commercial/industrial lot coverage and/or increased commercial/industrial impervious coverage in return for an increased Development Fee. The Development Fee negotiated must bear a reasonable relationship to the additional commercial/industrial consideration to be received. All agreements are subject to COAH approval.
F. Eligible exactions, ineligible exactions and exemptions.
1. Development Fees may be collected when an existing structure is expanded or undergoes a more intense use. The Development Fee that may be collected shall be calculated on the increase in the equalized assessed value of the improved structure.
2. The Borough shall not reduce densities from preexisting levels and then
require developers to pay Development Fees in exchange for an increased density.
3. Developments that have received preliminary or final approval prior to the effective date of this Subsection shall be exempt from Development Fees unless the developer seeks a substantial change in the approval; for example, a substantial alteration in site layout, development density or types of use within the development.
4. The Borough exempts the following types of development from the imposition of Development Fees: a. Nonprofit organizations which have received tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code, providing current evidence of that status is submitted to the Borough Administrator, together with a certification that services of the organization are provided at reduced rates to those who establish an inability to pay existing charges.
b. Federal, state, county and local governments.
c. Public utilities under the jurisdiction of the New Jersey Board of Public
Utilities to the extent that the construction for which approval is sought is of a facility which shall house equipment only and not to be occupied by any employees.
d. Person or entity constructing an inclusionary residential development.
e. Person or entity seeking a construction permit for a unit which when it
received subdivision or site plan approval was part of an application for less than three residential units.
f. Person or entity seeking a construction permit for a structure which shall be ancillary to and used in connection with a farm.
g. Person or entity seeking a construction permit to add to or remodel a residential structure provided the equalized assessed value of the improvement is less than the equalized assessed value of the original structure and further provided that no new dwelling units are created.
G. Collection of Development Fees.
1. The Borough shall collect 50% of the fee on any specific development prior to
and as a condition of the issuance of the building permit therefor. The remaining portion shall be collected prior to and as a condition of the issuance of the certificate of occupancy. Once the final equalized assessed value of a particular development has been determined by the Tax Assessor, and such final equalized assessed value is greater than the estimated equalized assessed value, the developer shall, within 10 business days from receipt of notification from the Borough, pay to the Borough the difference between the Development Fees required to be paid by the developer once such final equalized assessed value has been determined and the estimated Development Fees actually paid by the developer. In the event that the estimated equalized assessed value proves to have been too high, the Borough shall promptly refund the difference between the estimated Development Fees actually paid by the developer and the Development Fees required to be paid by the developer once such final equalized assessed value has been determined.
2. None of the above permits or certificates shall be issued until receipt of the
Development Fee has been certified by the Borough Administrator.
H. Housing Trust Fund.
The Borough shall establish an interest-bearing Housing Trust Fund to be held in a bank with which the Borough does financial business for the purpose of receiving Development Fees from residential and nonresidential developers. All Development Fees paid by developers pursuant to this Section 1.19.21.3 shall be deposited in this fund. In establishing the Housing Trust Fund, the Borough shall provide whatever express written authorization that may be required by said bank in order to permit COAH to direct the disbursement of Development Fees pursuant to Subsection L of
this Section 1.19.21.3. No money shall be expended from the Housing Trust Fund unless the expenditure conforms to a spending plan approved by COAH.
I. Use of funds.
1. The Borough shall use revenues collected from Development Fees for any activity approved by the Borough for addressing the Borough’s fair-share obligation. Such activities include, but are not limited to, rehabilitation, new construction, regional contribution agreements, purchase of land for low and moderate income housing, improvement of land to be used for low and moderate income housing, extension and/or improvements of roads and infrastructure to low and moderate income housing sites, assistance designed to render units to be more affordable and administration of the implementation of the housing element. The expenditures of all money shall conform to a spending plan approved by COAH.
2. No more than 20% of the revenues collected from Development Fees shall be
expended on administration costs necessary to develop, revise or implement the housing element, including, but not limited to, salaries and benefits for Borough employees or consultant fees necessary to develop or implement a rehabilitation program, a new construction program, a regional contribution agreement, a housing element, and an affirmative marketing program.
Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units, and compliance with COAH’s monitoring requirements. Development Fees shall not be used to defray the costs of existing staff, except that COAH may consider permitting fees to defray the cost of staff whose sole responsibility is to implement the housing element.
J. Monitoring.
The Borough shall complete and return to the Borough all monitoring forms related to the collection of Development Fees, expenditures of revenues, and implementation of the spending plan certified by COAH. Financial reports and annual program implementation and monitoring reports shall be completed by the Borough on forms designated by COAH.
K. Spending plans.
The Borough shall submit to COAH, if required for certification, a spending plan for the Development Fees collected pursuant to this Section. Plans to spend Development Fees shall consist of the following information:
1. A projection of revenues anticipated from imposing fees on development, based on historic activity;
2. A description of the administrative mechanism that the Borough will use to
collect and distribute revenues;
3. A description of the anticipated use of all Development Fees;
4. A schedule for the creation or rehabilitation of housing units;
5. In the event the Borough envisions being responsible for public sector or
nonprofit construction of housing, a pro forma statement of the anticipated
costs and revenues associated with the development;
6. The manner through which the Borough will address any expected or
unexpected shortfall if the anticipated revenues from Development Fees are
not sufficient to implement the plan; and
7. Any other information requested by COAH to be included.
L. Expending of fees as result of certain occurrences.
1. In accordance with N.J.A.C. 5:94-6.16, the Borough's ability to collect fees and
COAH’s approval of an ordinance and spending plan shall be conditioned on
compliance with all requirements of this subsection. Occurrence of the
following may result in COAH taking an action pursuant to Subsection 2. below:
a. Failure to meet deadlines for information required by COAH in its review of
a Housing Element and Fair Share Plan, Development Fee ordinance or plan
for spending fees;
b. Failure to address COAH's conditions for approval of a plan to spend Development Fees, payments in lieu of constructing affordable units on site and funds from re-sales of units with extinguished controls within the deadlines imposed by COAH;
c. Failure to address COAH's conditions for substantive certification within deadlines imposed by COAH;
d. Failure to submit accurate annual monitoring reports pursuant to N.J.A.C. 5:94-6.13(a) within the time limits imposed by COAH;
e. Failure to implement the spending plan and expend the funds within the time schedules specified in the spending plan;
f. Expenditure of Development Fees, payments in lieu of constructing affordable units on site and funds from the sale of units with extinguished controls on activities not permitted by COAH;
g. Revocation of certification; or
h. Other good cause demonstrating that the revenues are not being used for
the approved purpose.
2. In the event any of the conditions described in subsection 1., above occur, COAH shall be authorized, on behalf of the Borough, to direct the manner in which all funds in the affordable housing trust fund shall be expended. Such revenues shall immediately become available for expenditure once COAH has notified the Borough Clerk and Chief Financial Officer that such a condition has occurred. In furtherance of the foregoing, the Borough shall, in establishing the trust fund pursuant to N.J.A.C. 5:94-6.11, ensure that the Borough has provided written authorization, in the form of an escrow agreement, to permit COAH to direct the disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Borough’s Clerk and Chief Financial Officer.
II. BE IT FURTHER ORDAINED THAT:
A. All ordinances or parts of ordinances inconsistent herewith are hereby repealed
to the extent of the inconsistency.
B. If any section, subsection, sentence, clause, phrase or portion of this Ordinance
is for any reason held to be invalid or unconstitutional by a court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent
provision, and such holding shall not affect the validity of the remaining
portions hereof.
C. This Ordinance shall take effect upon passage and publication in accordance
with applicable law and filing with the Monmouth County Planning Board. .
A motion to introduce the above titled Ordinance was offered by C/Soden and seconded by C/Robilotti. Passed on the following roll call:
Offered By: C/Soden
Seconded By: C/Carr
Roll Call: Ayes: C/Soden, C/Rucker, C/Carr, C/Robilotti
Nays: None
Abstain: None
Absent: C/Simon, C/Palmieri
Stuart Moskovitz, Borough Attorney states that this Ordinance has to go to the planning board because it is a development ordinance.
Mayor Reynolds asks when the next planning board meeting is?
Julie Martin, Municipal Clerk replies September 26, 2006.
Mayor Reynolds requested that we get it to them by September 26, 2006.
Julie Martin, Municipal Clerk states the Public Hearing and Adoption on Ordinance No. 2006-20 is scheduled for the October 11, 2006 Council Meeting, 7:30 p.m. at Borough Hall.
BOROUGH OF ENGLISHTOWN First Reading & Introduction
ORDINANCE NO. 2006-21
AN ORDINANCE OF THE BOROUGH OF ENGLISHTOWN ADDING A NEW CHAPTER, CHAPTER 2.49, ENTITLED “AFFORDABLE HOUSING REGULATIONS”
WHEREAS, the governing body of the Borough of Englishtown determines that there exists a need to provide for regulation of the Affordable Housing located within the Borough and other Affordable Housing for which the Borough is responsible:
Now therefore be it ordained by the Borough Council of the Borough of Englishtown that a new chapter, Chapter 2.49, “Affordable Housing Regulations” of the Code of the Borough of Englishtown is hereby added as follows:
2.49.1. Title.
This Chapter shall be known and may be cited as the “Affordable Housing Regulations of the Borough of Englishtown.”
2.49.2. Intent and purpose.
It is the intent and purpose of this Chapter to implement the Housing Plan Element and Fair-share Plan in accordance with Affordable Housing regulations established and, from time to time, amended by the New Jersey Council on Affordable Housing in accordance with the Fair Housing Law, N.J.S.A. 52:27D-301, and New Jersey Council on Affordable Housing (hereinafter “COAH”) Procedural and Substantive Regulations.
2.49.3. Definitions.
All terms used in this Chapter, shall have the meanings established in the regulations promulgated by COAH, unless the context clearly indicates otherwise. The following
terms will have the definitions set forth as follows:
AFFORDABLE HOUSING - Any housing unit with an acquisition price or rent level not exceeding the maximum resale or rent level for low and moderate income housing set forth in N.J.A.C. 5:94-7.2, 5:80-22.1, 5:80-26.2, 5:80-26.6, and 5:80-26.12, all as may be modified from time to time and/or supplemented by regulations involving new rounds of COAH obligations.
COAH - The New Jersey Council on Affordable Housing established under the Fair Housing Act of 1985.
RENTAL UNITS — Units specifically built at the time of construction for the sole purpose of being occupied by tenants and not owners of Affordable Housing units.
2.49.4. Affordable Housing requirements.
A. Purpose. The purpose of these provisions is to provide a realistic opportunity for the construction of Affordable Housing for households with low and moderate incomes as required by the New Jersey Supreme Court and the Fair Housing Law (N.J.S.A. 52:27D-301).
B. Designation of Administrative Authority. For the purposes of administering these Affordable Housing provisions, the Borough Council, or entity designated by the Borough Council shall be the responsible agent of the municipality for the purpose of monitoring the occupancy, resale and rental restrictions of low and moderate income housing units and shall be referred to as the “Authority.” The Authority will have the power to take enforcement action, as authorized by Section 2.49.5 of this Chapter, against any owner or tenant of an Affordable Housing unit for violation of this chapter, the Affordable Housing Plan or the COAH deed restrictions.
C. Development Approvals. Development approvals shall provide for Affordable Housing opportunities as set forth herein.
(1) Applicability and exemptions. These requirements shall apply to approvals granted by the Unified Planning/Zoning Board of Adjustment as follows:
(a) All approvals of use variances, site plans, or subdivisions, including extensions and substantial revisions, as provided below in Subsection C(2), shall be made subject to mandatory provision of Affordable Housing except for classes of uses contained in Subsection C(1)(b) below. A substantial revision to a development approval shall, for the purposes of these Affordable Housing regulations, be any revision which increases or decreases the number of residential units or amount of nonresidential floor space by more than 15%.
(b) Exempted from these provisions shall be approvals for the following classes of development which do not constitute a portion of the state or housing region’s tax ratable wealth:
[1] Utility facilities;
[2] Educational, cultural and outdoor recreational facilities;
[3] Quasi-public uses including churches, clubs, lodges and similar uses;
[4] Public uses; and
[5] Hospital uses.
(c) All final approvals not included in Subsection C(1)(a), or (b) above shall provide for the payment of any required Affordable Housing development fee.
(2) Mandatory provision of Affordable Housing. All development, other than exempted development, shall provide for Affordable Housing through actual construction, through an Affordable Housing development fee or a combination of both. Subsection 95-13.4C(2)(d), below, shall apply to establish the Affordable Housing requirement for any development approved subsequent to the adoption of the Substantive Rules of the New Jersey Council on Affordable Housing for the period beginning on December 20, 2004, and to the adoption by the Borough of this ordinance.
(a) The following provisions shall apply to development approvals to enable the Borough to address the Borough’s third round growth share obligation for Affordable Housing.
[1] Any residential development in any zoning district in the Borough of Englishtown proposing nine or more dwelling units shall set aside 11.1% of said units (rounded to the next higher number if 0.5 or greater) for Affordable Housing as said term is defined under FHA and COAH rules and regulations. In the event the number of units constructed is not a multiple of nine and the number of units does not round up, the developer shall pay the Affordable Housing development fee for those units. For example, if a developer constructs 12 units, it must reserve one unit for a low income household and pay the Affordable Housing development fee for three units, as set forth in Chapter 1.19.21.3 of the Code of the Borough of Englishtown. The residential development shall comply with the following:
[a] The developer shall construct the affordable units on site with the market rate units of the residential development. The Borough, in its sole discretion, may approve the construction of affordable units off site, provided that the developer demonstrates, and the Borough determines, that the off-site location is within the Borough and has been planned and zoned for residential development. The developer shall further demonstrate to the satisfaction of the Borough that the off-site location is approvable, suitable and developable for Affordable Housing.
[b] Affordable dwelling units shall be built in accordance with the following schedule:
Percentage of Market Rate Minimum Percentage of
Units Completed Low and Moderate Income Units Completed
25 0
25 + 1 unit 10
50 50
75 75
90 100
The Affordable Housing units shall be disbursed throughout the inclusionary development to the greatest extent possible and shall be designed to be architecturally indistinguishable from the market rate units to the greatest extent possible. To that end, the scale, massing, roof pitch and architectural detailing (such as selection of exterior materials, windows, doors, etc.) of the buildings containing the Affordable Housing units shall be similar to and compatible with that of the market rate units.
[c] Residential development proposing the new construction of eight or fewer residential dwelling units shall satisfy the Affordable Housing requirement by the payment of the Affordable Housing development fee set forth in Chapter 1.19.21.3 of the Code of the Borough of Englishtown.
[2] Nonresidential development located within a zone that permits the development of residential uses and that creates 25 jobs or more shall provide one non age-restricted affordable residential unit on site for every 25 jobs projected to be created by the development. The calculation of the number of jobs and employment opportunities shall be in accordance with Appendix E to N.J.A.C. 5:94-1 et seq. entitled “UCC Use Groups for Projecting and Implementing Nonresidential Components of Growth Share.” If the calculation for the number of jobs results in a fraction of an affordable unit, then the number of units required will be rounded up to the next higher number, if the fraction is 0.5 or greater. If the fraction is less than 0.5, then the development shall be subject to a development fee that will be calculated based upon the proportion of building floor area generating the fractional unit. The Borough, in its sole discretion, may approve the construction of the affordable units off site, provided that the developer demonstrates, and the Borough determines, that the off-site location is located within the Boroughand has been planned and zoned for the residential development. The developer shall further demonstrate to the satisfaction of the municipal agency that the off-site location is approvable, suitable and developable for Affordable Housing.
[3] Nonresidential development located within a zone that does not permit residential development shall satisfy its Affordable Housing obligation by the payment of the Affordable Housing development fee set forth in Chapter 1.19.21.3 of the Code of the Borough of Englishtown.
[4] Nonresidential development generating less than 25 jobs shall satisfy its Affordable Housing obligation by the payment of the Affordable Housing development fee set forth in Chapter 1.19.21.3 of the Code of the Borough of Englishtown.
[5] The applicant for approval of a residential or nonresidential development shall present the planned method of Affordable Housing compliance to the municipal agency at the time of application filing. The plan submitted by the applicant for Affordable Housing compliance shall be based upon the full build out of the property for residential and/or nonresidential development.
[6] Full and complete satisfaction and compliance with the Affordable Housing requirements of the Borough shall be a specific, automatic, essential and nonseverable condition of all approvals and any extension of approval. Pursuant to this condition, the applicant must demonstrate that it has satisfied the Affordable Housing requirement prior to obtaining the first building permit, and compliance with the Affordable Housing requirement shall be a continuing condition of all approvals for development.
[7] The affordable unit(s) to be produced shall be available to a low-income individual or household should only one affordable unit be required. Thereafter, the units shall be split evenly between low and moderate income individuals and households except in the event of an odd number, in which event the unit shall be a low-income unit. Pursuant to N.J.A.C. 5:94, et seq. and N.J.A.C. 5:80-26 et seq., all affordable units shall comply with COAH’s rules and policies, including, but not limited to, phasing, bedroom distribution, controls on affordability, range of affordability, affirmative marketing, income qualification, etc. It shall be the developer’s responsibility, at its cost and expense, to arrange for the administering authority approved by COAH and designated by the Borough to ensure full COAH compliance and file such certifications, reports and/or monitoring forms as may be required to verify COAH compliance for each affordable unit.
[8] As to residential developers, nothing herein shall affect the Borough’s ability to generate more Affordable Housing than the one affordable residential unit for eight market rate residential units standard set forth above in the event that the developer secures a density bonus or other compensatory benefit through a zoning change or through a use variance.
[9] As to nonresidential developers, nothing herein shall affect the Borough’s ability to generate more Affordable Housing than the one affordable residential unit for every 25 jobs standard set forth above in the event that the developer secures an increased floor area ratio or other compensatory benefit through a zoning change or through a use variance.
(3) Requirements for Affordable Housing. Developments which include affordable housing units shall be subject to the following provisions:
(a) Low income housing. Low income housing shall be affordable, according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs, and occupied or reserved for occupancy by households with a gross household income equal to 50% or less of the median gross household income for households of the same size within the housing region in which the housing is located, and subject to affordability controls.
(b) Moderate income housing. Moderate income housing shall be affordable, according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs, and occupied or reserved for occupancy by households with a gross household income in excess of 50% but less than 80% of the median gross household income for households of the same size within the housing region in which the housing is located, and subject to affordability controls.
(c) Age restriction. The sales and rentals of Affordable Housing units constructed within the Borough may be age-restricted to senior citizens age 62 or older as defined by and in accordance with the Federal Fair Housing Act and N.J.A.C. 5:93-5.1 and regulated by N.J.A.C. 5:93-5.12, provided that no more than the maximum number permitted by N.J.A.C. 5:93-5.12 of the total affordable housing units constructed within the Borough shall be age-restricted. A request to age restrict housing units may only be granted after the Unified Planning/Zoning Board of Adjustment has received the consent of the Borough Council. In designing its project, the applicant may propose constructing the senior citizen restricted affordable units in the same building or buildings in order to maximize the potential of preserving a more tranquil lifestyle for the senior citizen residents; and to the foregoing extent, the requirement of integration of the affordable units with conventional units is modified.
(d) Fees. Developers of housing units for low and moderate income households shall be subject to fees set forth by the Authority for the initial sales of affordable 75 units.
(e) Bedroom distribution.
[1] The following bedroom distribution shall apply to the total number of affordable units in each development providing Affordable Housing units:
[a] The combination of efficiency and one-bedroom units is at least 10% and no greater than 20% of the total low and moderate income units.
[b] At least 30% of all low and moderate income units are two-bedroom units; and
[c] At least 20% of all low and moderate income units are three-bedroom units.
[2] In the event COAH’s Rules shall provide for a bedroom mix different than the foregoing, the requirements of COAH shall control and the foregoing shall be deemed modified for all projects which have not received final site plan or subdivision approval.
(f) Location and design. Low and moderate income inclusionary housing shall be designed in accordance with the following provisions:
[1] The low and moderate income housing units shall be sited on the tract in locations at least as accessible to common open space and community facilities as market-priced dwelling units. Rental units may be concentrated for ownership and management unit reasons.
[2] The exterior design of the low and moderate income housing units shall be harmonious in scale, texture, and materials with the market priced units on the tract.
[3] Inclusionary developments shall be designed to integrate the low and moderate income units with the market units.
(g) Deed restrictions. Developers of housing units for low and moderate income households shall enter into a written agreement, binding on all successors-in-interest, in accordance with N.J.A.C. 5:93-9.3 et seq., Resale/Rental Control, at the time of sale, resale, rental or rerental regardless of the availability of federal, state, county or Borough subsidy programs.
(h) Low and moderate income units shall utilize the same heating source as market units within inclusionary developments.
D. Certificates of Occupancy. Certificates of occupancy for developments which include Affordable Housing units shall be subject to the following additional provisions:
(1) Phasing of affordable units. Affordable Housing units shall be built, occupied and receive certificates of occupancy in accordance with the following schedule:
Percentage of Low Percentage of
and Moderate Income Market Housing
Units Completed Units Completed
0