*** 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

                      

F.      Resolution No. 2006-132

Waiver of License and Fee for Peddlers at Fall Festival

 

G.     Resolution No. 2006-133

Accepting Corrective Action Plan – 2005 Audit

 

H.   Resolution No. 2006-134

Authorizing Purchases Over $800.00

Installation of lights, sirens and other for new police car

 

I.  Resolution No. 2006-135

                              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.

 

Police Department Recognition Awards

 

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.

 

Committee Reports

 

C/Rucker

·        Planning Board request to look into establishing an ordinance in regards to truck trailers being parked on properties throughout town.

 

C/Carr responds that she did a review of the town with the EDC and had gone to the Code Department and Police Department and requested that both departments give her recommendation for any updates of any ordinances that do or do not exist.   They did want to look at updating the sign ordinance and possibly the facade maintenance ordinance in the commercial district. There is nothing in place at this time and it has become unsightly. If we could get together with them and get a list we could address them at one time.

 

C/Robilotti

 

C/Soden

 

C/Carr

 

Mayor Reynolds asks if we have metal detectors.

 

C/Carr responds that there is a silent duress alarm at the bench and at the payment window to summons law enforcement. 

 

C/Carr goes over letter with Mayor Reynolds and states that this is mandated and we will incur costs.

 

Mayor Reynolds suggest to give letter to Rick to see what the total costs will be.

 

 

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.

 

Correspondence

 

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.

 

Public Portion – Agenda Items

 

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.

 

Old Business

 

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.

 

EMERGENCYA 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.

 

D.    H.      Follow-up Inspections.

 

            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                                                                                              25

10                                                                                            25 + 1 unit

50                                                                                            50

75                                                                                            75

100                                                                                          90

——

100

            (2) No initial occupancy of a low or moderate income housing sales unit shall be permitted prior to issuance of a certificate of occupancy, and no certificate of occupancy for initial occupancy of a low or moderate income housing sales unit shall issue unless there is a written determination by the Authority that the unit is to be controlled by a deed restriction and mortgage lien as adopted by COAH.

 

            (3) A certificate of reoccupancy for any occupancy of a low or moderate income housing sales unit resulting from a resale shall be required, and the Borough shall not issue such certificate unless there is a written determination by the Authority that the unit is to be controlled by the deed restriction and mortgage lien required by COAH.

 

            (4) The certificate of reoccupancy shall not be required where there is a written determination by the Authority that controls are allowed to expire or in that the repayment option is being exercised pursuant to N.J.A.C. 5:93-9.4.

 

E. Resale/rerental Controls. A developer of an affordable inclusionary housing development shall incorporate deed restrictions on all dwelling units sold or rented as units affordable to low and moderate income households pursuant to N.J.A.C. 5:93-9.2, Council on Affordable Housing Substantive Rules. Affordability controls shall remain in force for a period not less than 30 years unless a longer period is required in accordance with N.J.A.C. 5:93-9.2, shall run with the land and shall place limitations upon the resale/rerental of affordable units in accordance with N.J.A.C. 5:93-9.4 through 5:93-9.16 and by means of any deed restrictions and/or lien documents promulgated by COAH.

 

            (1) Exempt sales. Sales exempted from resale/rerental controls shall include the transfer of ownership between husband and wife; the transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or judicial separation, but not including sales to third parties; the transfer of ownership between family members as a result of inheritance; the transfer of ownership through an executor’s deed to a Class A beneficiary; and the transfer of ownership by court order.

 

            (2) Nonexempt sales or rentals. Owners of affordable units intending to sell or rent their units prior to the expiration of deed restrictions shall comply with the following procedure:

(a) Prior to reselling or renting a low or moderate income unit, the owner of an Affordable Housing unit shall provide written proof to the Authority that the resale or rental has been approved by the Authority.

 

(b) Unless otherwise exempt pursuant to this chapter, the owner of an affordable housing unit shall only resell or rent a low or moderate income unit to a qualified purchaser or tenant as determined by the Authority or the authorized state agency.

 

(c) Unless otherwise exempt pursuant to this chapter, the owner of an affordable housing unit shall be responsible for guaranteeing that the necessary documents are executed and filed at the closing of title or rental of a low or moderate income unit to assure that the unit remains affordable to and occupied by low or moderate income households. Copies of all such documents shall also be provided to the Authority no later than 60 days after the date of closing.

           

(d) An owner of an Affordable Housing unit shall not permit the occupation of its unit in violation of the COAH regulations, this chapter or the Borough’s Affordable Housing Plan.

 

(e) An owner of an affordable unit shall be subject to fees set forth by the Authority for the monitoring and transfers of affordable units.

 

            (3) Deed restrictions, notice of sale. All deed restrictions governing low and moderate income housing units shall require the owner to notify the Authority and COAH by certified mail of any intent to sell the unit at least 90 days prior to entering into an agreement for the first nonexempt sale after controls have been in effect on the housing unit for the period specified in N.J.A.C. 5:93-9.2.

 

            (4) Deed restrictions, sales options. The deed restrictions governing the deeds of low and moderate income housing units shall include an option permitting purchase of the Affordable Housing 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 N.J.A.C. 5:93-9.2. The option to buy shall be first available to the Borough, then the New Jersey Department of Community Affairs, Housing and Mortgage Finance Agency, or a qualified nonprofit agency as determined by COAH.

 

            5) Options. Rights shall be held and exercised in accordance with the following provisions.

(a) Upon receipt of notice, the option to buy the unit at the maximum allowable restricted sales price shall be available for 90 days. The Authority shall first notify the Borough, then the New Jersey Department of Community Affairs, Housing and Mortgage Finance Agency, and COAH that the unit is for sale. If the Borough exercises this option, it may enter into a contract of sale. If the Borough 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 ninety-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 offer to purchase the housing unit within 90 days of receipt of the intent to sell, the owner may proceed to sell the housing unit (pursuant to N.J.A.C.5-93-9.8). 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 at least 90 days prior to any future proposed date of sale.

 

(b) 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.

 

(c) An eligible seller of a low  or moderate income unit which has been controlled for the period established in N.J.A.C. 5:93-9.2, and who has provided notice of an intent to sell may proceed with the sale if no eligible entity as outlined in N.J.A.C. 5:93-9.4(c) and 9.7 exercises its option to purchase within 90 days. Subject to N.J.A.C. 5:93-9.9, the seller may elect the affordable resale option or the repayment option.

 

[1] Affordable resale option. The seller may sell to a qualified low and moderate income household at the maximum allowable restricted sales price in accordance with existing COAH regulations, provided that the unit is regulated by the deed restriction and lien adopted by COAH for a period of up to 20 years.

 

[2] Repayment option. Provided that the Borough has not suspended the repayment option, the seller may sell to any purchaser at market price, provided that 95% of the price differential is paid to the Authority, as an instrument of the Borough, at closing. Such sale shall be approved by the Authority.

 

                        (d) Municipal option. The Borough of Englishtown may elect to purchase a low or moderate income unit provided for in N.J.A.C. 5:93-9.4, and may:

 

            [1] Convey or rent the housing unit to a low or moderate income household purchaser or tenant at a price or rent not to exceed the maximum allowable restricted sales price or rental, provided that the unit is controlled by a deed restriction in accordance with Technical Appendix E of N.J.A.C. 5:93-1 et seq. or an alternative approved by COAH; or

 

            [2] Convey the unit at fair market value subject to the provisions of the following subsection.

 

            [3] Upon purchase, the Borough may maintain the unit as an Affordable Housing unit or convey it at fair market value in accordance with the following:

 

                  [a] Notify COAH of any proposed sale and sales prices 90 days before closing;

 

                  [b] Notify COAH of the price differential as defined in COAH regulations; and

 

                  [c] Deposit the price differential in the Borough Affordable Housing Trust Fund.

 

            (e) State option. When the Department of Community Affairs or Housing and Mortgage Finance Agency elects to purchase a low or moderate income unit pursuant to N.J.A.C. 5:93-9.4, it may:

 

            [1] Convey or rent the housing unit to a low or moderate income household purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental; or

 

            [2] Convey the unit at fair market value and utilize the price differential to subsidize the construction, rehabilitation or maintenance of low and moderate income housing within the housing region.

 

            (f) Nonprofit option. Nonprofit agencies may apply to COAH at any time for the right to purchase low or moderate income housing units subsequent to the period of controls on affordability, provided that the unit remains controlled by a deed restriction in accordance with Technical Appendix E in N.J.A.C. 5:93-1 et seq., or an alternative approved by COAH. Nonprofit agencies that have been designated by COAH shall be eligible to purchase low or moderate income housing units pursuant to N.J.A.C. 5:93-9.4 for the sole purpose of conveying or renting the housing unit to a low or moderate income household purchaser or tenant at a price or rent not to exceed the allowable restricted sales price or rental. Low income housing units shall be made available to low income household purchasers or tenants and the housing unit shall be regulated by the deed restriction and lien adopted by COAH. The terms and length of the controls on affordability shall be the same as those required by N.J.A.C. 5:93-9.2.

 

F. Administration. The Affordable Housing regulations shall be administered in accordance with the following provisions.

 

            (1) Determination of affordable price/rent. The affordability of a low  or moderate income unit shall be a function of the rent or sales price which shall be established so as to ensure that occupants do not pay a sum of shelter costs greater than 30% of gross annual income for rental units or 28% of gross annual income for sales units in accordance with COAH regulations as follows:

 

                  (a) Shelter costs for rental units shall include gross rent, including an allowance for utilities. The allowance for utilities shall be consistent with the utility allowance observed for HUD use in New Jersey;

 

                  (b) Shelter costs for sales units shall include principal, interest, taxes, condominium fees and insurance. The master deeds of inclusionary developments shall provide that condominium or homeowner association fees or special assessments for low and moderate income purchasers shall be 100% of the fees paid by market purchasers and that once established within the master deed, the percentage shall not be amended without prior approval of COAH.

 

                  (c) Sales costs of a unit shall be based on a presumed five-percent down payment;

 

                  (d) Rental and sales costs shall be fixed for a unit depending on bedroom number calculated on the following basis as to household size:

 

            [1] Efficiency units. Efficiency units shall be affordable to one person households.

 

            [2] One bedroom. One bedroom units shall be affordable to 1.5 person households.

 

            [3] Two bedrooms. Two bedroom units shall be affordable to three person households.

 

            [4] Three bedrooms. Three bedroom units shall be affordable to 4.5 person households. One half of all three bedroom units shall be affordable to four person households and one half of all three bedroom units shall be affordable to five person households.

 

 

(e) In the case of owner occupied housing rehabilitation assistance, affordability  shall be based on unit occupancy by a low or moderate income household.

 

            (2) Pricing distribution of housing units. The maximum average rent and price of low and moderate income housing units shall be, affordable to households earning 57.5% of median income as contained in N.J.A.C. 5:93-7.4, establishing rents and prices of units.

            (3) Affordability for sales units. Moderate income sales units are available for at least three different prices and low income sales units are available for at least two different prices.

            (4) Determination of sales values. Values of sales units shall be determined in accordance with the following provisions:

 

                  (a) Fair market value. Fair market value shall be established on the basis of the unrestricted price of a low or moderate income housing unit if sold at a current real estate market rate.

 

                  (b) Maximum allowable restricted sales price. The maximum allowable restricted sales price shall be determined in accordance with COAH regulations at the date of a proposed contract of sale.

 

                  (c) Price differential. Price differential shall be established as the difference between the maximum allowable restricted sales price and the fair market value, as determined at the date of a proposed contract of sale, after deducting reasonable real estate broker fees.

 

            (5) Approval required to exercise repayment option. If the sale will be to a qualified low and moderate income household, the Authority shall certify the income qualifications of the purchaser and shall ensure the housing unit is regulated by the restrictive covenant and lien required by COAH.

 

                  (a) The Authority 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 Authority may rely on comparable sales data or an appraisal. The Authority 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 Authority shall make a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.

 

                  (b) The Authority shall adopt an appeal procedure by which a seller may submit written documentation requesting the Authority to:

 

            [1] Recompute the repayment obligation if the seller believes an error has been made; or

 

            [2] 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 Authority.

 

                  (c) 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.

 

                  (d) Repayment proceeds shall be deposited in the Englishtown Borough Affordable Housing Trust Fund. Money deposited in the Englishtown Borough Affordable Housing Trust Fund trust account from such sale may not be expended until Englishtown Borough 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.

 

            (6) Borough rejection of repayment option. Englishtown Borough 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 Borough beyond the period required by N.J.A.C. 5:93-9.2. Such determination shall be made by resolution of the Borough Committee and shall be effective upon filing with COAH and the Authority. The resolution shall specify the time period for which the repayment option shall not be applicable. During such period, no seller in Englishtown Borough may utilize the repayment option permitted by N.J.A.C. 5:93-9.8. If the Borough exercises the rejection of repayment option outlined above, it shall:

 

            (a) Provide public notice in a newspaper of general circulation; and

 

      (b) Notify the Authority and COAH of the Borough Committee’s                 

action.

 

The Authority shall ensure that the deed restriction on all affected housing units

reflects the extended period of controls.

 

            (7) Continued application of options to create, rehabilitate or maintain low and

moderate income housing units. When a housing unit has been maintained as a lowor

moderate income unit after controls have been in effect for the period specified in N.J.A.C. 5:93-9.2, the deed restriction governing the housing units shall allow the Borough, the state, nonprofit agencies and sellers of low and moderate income housing units to again exercise all the same options as provided in this section.

 

            (8) Affirmative marketing plan. Englishtown Borough shall provide for the marketing of all low and moderate income housing units developed pursuant to the provisions of this section in accordance with the provisions described below:

 

                  (a) The affirmative marketing plan. These requirements for an affirmative marketing plan apply to all developments that contain low and moderate income dwelling units. The affirmative 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. The Borough of Englishtown is in the housing region consisting of Monmouth, Ocean and Mercer Counties. The affirmative marketing program is a continuing program and will meet the following requirements:

 

            [1] All newspaper articles, announcements and requests for applications for low and moderate income units will appear in the Asbury Park Press.

 

            [2] The primary marketing will take the form of at least one press release and a paid advertisement sent to the Asbury Park Press. Additional advertising and publicity will be on an as-needed basis. The cost of all advertising for low and moderate  income units shall be the developer’s responsibility and this requirement shall be a condition of the Borough Planning Board’s approval.

 

            [3] The advertisement will include a description of the:

            [a] Street address of units;

            [b] Direction to housing units;

            [c] Number of bedrooms per units;

                                                            [d] Range of prices/rents;

            [e] Size of units;

            [f] Income information; and

                  [g] Location of applications including business hours and where/how applications may be obtained.

 

            [4] All newspaper articles, announcements and requests for applications for low and moderate income housing will appear in the following neighborhood oriented weekly newspapers, religious publications and organizational newsletters within the region:

            [a] News Transcript.

            [b] Forked River Gazette (Ocean).

            [c] Messenger Press (Mercer).

 

            [5] The following regional radio and/or cable television station(s) will be used:

            [a] WJLK (Monmouth and Ocean).

            [b] Comcast Cable channel 34 (Monmouth).

            [c] WHWH (AM) (Mercer).

 

            [6] The following is the location of applications, brochure(s), sign(s) and/or poster(s) used as part of the affirmative marketing program including specific employment centers within the region:

            [a] Englishtown Borough Administration Building.

            [b] Monmouth, Ocean, and Mercer County libraries.

            [c] Developer’s sales office.

[d] CentraState Medical Center, Freehold Borough.

                                                            [e] County of Monmouth, Borough of Freehold.

[f] Freehold Regional High School District, Englishtown.

 

            [7] The following is a listing of community contact person(s) and/or organization(s) in Monmouth, Ocean and Mercer counties that will aid in the affirmative marketing program with particular emphasis on contacts that will reach out to groups that are least likely to apply for housing within the region:

            [a] Monmouth Housing Alliance.

            [b] Homes For All.

            [c] Monmouth County Community Development Program.

 

            [8] Quarterly flyers and applications will be sent to each of the following agencies in their journals and for circulation among their members:

                  [a] Board of Realtors in Monmouth, Ocean and Mercer counties.

 

[b] Applications will be mailed to prospective applicants upon request.

 

            [9] Additionally, quarterly informational circulars and applications will be sent to the chief administrative employee of each of the following agencies in the counties of Monmouth, Ocean and Mercer counties:

            [a] Homes for All (Ocean).

            [b] Rental Assistance Office (local office of DCA).

            [c] Office on Aging.

            [d] Housing Agency or Authority.

            [e] County Library of Monmouth, Ocean and Mercer.

            [f] Monmouth Housing Alliance.

[g] Lutheran Social Ministries of New Jersey (Mercer).

 

            [10] The Authority will administer the affirmative marketing program on behalf of the Borough of Englishtown. The Authority has 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 Borough Administrator or his/her designee within Englishtown Borough is the designated housing officer to act as liaison the Authority. The Authority 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.

 

            [11] Residency preference.

 

            [a] Households who live or work in the Monmouth, Mercer and Ocean 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. The Borough of Englishtown intends to comply with N.J.A.C. 5:93-11.7.

 

            [b] The Borough may provide an occupancy preference for low and moderate income housing units created within the Borough that responds to the Borough’s rehabilitation component, if applicable and approved by COAH.

 

            [12] All developers of low and moderate income housing units are responsible for and will be required to assist in the marketing of the affordable units in their respective developments in conformance with this Subsection F(8).

 

            [13] 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.

 

            [14] The Authority, on behalf of the Borough, will comply with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 5:93-12.1 and Subsection [10] above of these regulations.

 

            (b) Marketing for initial sales and/or rent up; composition of marketing pool.

 

            [1] Households that apply for low and moderate income housing shall be screened for preliminary income eligibility by comparing their total income to the low and moderate income limits adopted by COAH. Applicants shall be notified as to their eligibility status.

 

            [2] Having screened applicants for preliminary income eligibility, the Authority may analyze the income and household sizes of applicants to determine which applicants have the assets and/or income necessary to purchase or rent each available low or moderate income unit.

 

            [3] The Authority shall interview each applicant and utilize the procedures outlined in N.J.A.C. 5:93-9.1 to verify the applicant’s income and household size; determine the applicant’s asset availability; and review the applicant’s credit history. Applicants shall be required to submit income verification for each household member 18 years or older. This process shall be utilized in establishing the final certified applicant group.

 

            [4] The process described in Subsections [1] through [3] above may begin no sooner than one month after the advertising program outlined in N.J.A.C. 5:93-11.3 begins. Households shall be selected to proceed through the process described in Subsections [1] through [3] above through a method of random selection. Households shall be certified for low and moderate income units using the procedures outlined in N.J.A.C. 5:93-9.1. The process described in Subsections [1] through [3] shall be continued until all the low and moderate income units are occupied.

            (c) Continuing marketing activities.

 

            [1] The types of activities to be undertaken after the completion of initial occupancy of sales and rental units in order to fill vacancies resulting from normal turnover shall include:

 

            [a] Ensuring a sufficient supply of income eligible applicants by continuing to implement the marketing plan throughout the housing region, as outlined in N.J.A.C. 5:93-11.3. At a minimum, the Borough shall maintain a current pool of at least five income eligible applicants for each low and moderate income unit.

 

            [b] Contacting each income eligible applicant annually to request updated information regarding income and family size.

 

            [2] As units become available, the Authority shall select eligible applicants for the units, as described in N.J.A.C. 5:93-11.4 (b) through (d) until the units are occupied by low and moderate income households.

 

            (d) Monitoring and reporting requirements.

 

            [1] The Borough shall collect information on each applicant for low and moderate income housing on forms approved by COAH. Such report shall include:

 

            [a] Monitoring forms approved by COAH.

 

            [b] An evaluation of the income and demographic characteristics of each applicant of low and moderate income housing, as well as the occupants of the units; and

 

            [c] An evaluation of any necessary adjustments in the affirmative marketing program as a result of the evaluation in Subsections (e)[1] above.

 

            [2] The Borough shall evaluate the results of their affirmative marketing activities and file a report with COAH by August 30 of each year.

 

            [3] COAH shall review and assess the effectiveness of the Borough’s affirmative marketing program. If it is deemed that the affirmative marketing program is not effective, the Borough shall be required to amend the program.

 

            (9) General provisions concerning new construction of sales units. In developing its Housing Plan Element, COAH requires that Englishtown Borough shall adopt measures to assure that low and moderate income housing units remain affordable to low and moderate income households for a period of not less than 20 years. The Authority shall do so by requiring all conveyances of low and moderate income housing units subject to this section to contain the restrictive covenant and mortgage lien adopted by COAH.

 

            (10) General provisions concerning enforcement through certificates of occupancy or reoccupancy of sales units.

 

A. The Authority shall issue written determinations for the purpose of issuing certificates of occupancy for initial occupancy or certificates of reoccupancy for low or moderate income housing sales units where the Authority finds that the unit is to be controlled by a deed restriction and mortgage lien as adopted by COAH. The Authority shall make such determination within 10 days of receipt of a proposed deed restriction and mortgage lien. Amendments to the deed  restriction and lien shall be permitted only if they have been approved by COAH. A request for an amendment to the deed restriction and lien may be made by the Authority, the Borough or a developer.

 

B. The Authority shall not permit the initial occupancy of a low or moderate income sales unit prior to issuance of certificate of occupancy in accordance with Subsection (10)(a) above.

 

C.  The Authority shall issue written determinations for the purpose of issuing certificates of reoccupancy for low or moderate income housing sales units where the authority finds that the unit is to be controlled by a deed restriction and mortgage lien as adopted by COAH. Purchasers of low and moderate income housing sales units shall execute the deed restriction and mortgage lien prior to issuance of a certificate of occupancy regardless of whether the sellers had executed the deed restriction and mortgage lien adopted by COAH upon acquisition of the property. The Authority shall make such determination within 10 days of receipt of a proposed deed restriction and mortgage lien.

 

D. The Authority shall issue written determinations for the purpose of issuing certificates of reoccupancy for low and moderate income housing sales units where the authority finds that the unit is to be sold and controls are allowed to expire or in which the repayment option is being exercised pursuant to N.J.A.C. 5:93-9.4.

 

E. The mortgage lien and the deed restriction shall be filed with the Clerk of Monmouth County. The lien and deed restriction shall be adopted by COAH unless amendments have been approved by COAH.

 

 F. The deed restriction, including the repayment clause, and the mortgage lien shall have priority over all mortgages on the property except for a first mortgage placed on the property by the mortgagee prior to the expiration of resale controls.

 

G. All owners and tenants of affordable units within the Borough of Englishtown shall provide documentation to the Authority on a yearly basis commencing one year after the date of purchase or rental of the affordable unit that the following payments on the unit, as applicable, are current: first purchase money mortgages, municipal property taxes, public utilities, condominium, homeowner’s or cooperative association fees and all rent payments. Owners and tenants of affordable units who fail to provide said documentation within 60 days of their yearly purchase or rental anniversary date shall be subject to the fines specified in Section 2.49.5A(1) of this Chapter.

 

H. In the event of a foreclosure on an affordable unit, the enforcement of a lien against an affordable unit or in the event that any of the following payments, as applicable, are not current, owners and tenants of affordable units within the Borough of Englishtown shall immediately notify the Authority: first purchase money mortgages, municipal property taxes, public utilities, condominium, homeowner’s or cooperative association fees and all rent payments.

 

2.49.5. Procedure and Penalties in the Event of  Violations.

 

After providing written notice of a violation of this Chapter and/or the Affordable Housing Plan to an owner of a low and moderate income unit and advising the owner of the penalties for such violations, the Authority may take the following action against the owner of an affordable housing unit for any violation that remains unsatisfied for a period of 60 days after service of the written notice:

 

A. The Authority may file a court action or seek penalties pursuant to N.J.S.A. 2A:58-11 alleging a violation or violations of this chapter and/or the Affordable Housing Plan with the exception of the penalties set forth in Section 2.49.4G above. If the owner is found by the court to have violated any provision of this Chapter and/or the Affordable Housing Plan, he or she shall be subject to one or more of the following penalties, at the discretion of the court:

 

            (1) A fine of not more than $1,250 or imprisonment for a period not to exceed 90 days, or both. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense;

 

            (2) In the case of an owner who has resold his or her low and moderate income unit in violation of this Chapter and/or the Affordable Housing Plan, payment into Borough of Englishtown Affordable Housing Trust Fund of an amount equal to the difference between the unauthorized resale price and the maximum resale price allowed by this Chapter, plus interest from the date of sale provided by the Rules of Court as well as reimbursement of the Authority’s attorney’s fees;

 

            (3) In the case of an owner who has rented his or her low and moderate income unit in violation of this Chapter and/or the Affordable Housing Plan, payment into the Borough of Englishtown Affordable Housing Trust Fund of an amount equal to the difference between the unauthorized rental charge and the maximum rental charge allowed by this Chapter, plus interest provided by the Rules of Court from the date of violation; or

 

            (4) In the case of an owner who has rented his or her low and moderate income unit in violation of this Chapter and/or the Affordable Housing Plan, payment of an innocent tenant’s reasonable relocation costs, as determined by the court.

 

B. The Authority may file a court action in the Superior Court seeking a judgment which would result in the termination of the owner’s equity or other interest in the unit, in the nature of a mortgage foreclosure. Any judgment shall be enforceable as if the same were a judgment of default of the first purchase money mortgage and shall constitute a lien against the low and moderate income unit.

 

            (1) Such judgment shall be enforceable, at the option of the Authority, by means of an execution sale by the Sheriff, at which time the low and moderate income unit of the violating owner shall be sold at a sale price which is not less than the amount necessary to fully satisfy and pay off any first purchase money mortgage and prior liens and the costs of the enforcement proceedings incurred by the Authority,

including attorney’s fees. Any additional liens on the unit will be subordinate to the

Authority’s costs and rights regarding the property. The violating owner shall have his right to possession terminated as well as his title conveyed pursuant to the Sheriff’s sale.

 

            (2) The proceeds of the Sheriff’s sale shall first be applied to satisfy the first purchase money mortgage lien and any prior liens upon the low and moderate income unit. The excess, if any, shall be applied to reimburse the Authority for any and all costs and expenses incurred in connection with either the court action resulting in the judgment of violation or the Sheriff’s sale. In the event that the proceeds from the Sheriff’s sale are insufficient to reimburse the Agency in full as aforesaid, the violating owner shall be personally responsible for and to the extent of such deficiency, in addition to any and all costs incurred by the Authority in connection with collecting such deficiency. In the event that a surplus remains after satisfying all of the above, such surplus, if any, shall be placed in escrow by the Authority for the owner and shall be held in such escrow for a maximum period of two years or until such earlier time as the owner shall make a claim with the Authority for such. Failure of the owner to claim such balance within the two-year period shall automatically result in a forfeiture of such balance to the Authority. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the Authority, whether such balance shall be paid to the owner or forfeited to the Authority.

 

            (3) Foreclosure by the Authority due to violation of this Chapter and/or the Affordable Housing Plan shall not extinguish the restrictions of this Chapter, the Affordable Housing Plan and the COAH procedural and substantive regulations as the same apply to the low and moderate income unit. Title shall be conveyed to the purchaser at the Sheriff’s sale, subject to the restrictions and provisions of this Chapter and the Affordable Housing Plan. The owner determined to be in violation of the provisions of this plan and from whom title and possession were taken by means of the Sheriff’s sale shall not be entitled to any right of redemption.

 

            (4) In order to be eligible to bid on an affordable unit, a bidder must be prequalified by the Authority as a low and moderate income household as set forth in the COAH substantive regulations and as set forth in the COAH deed restrictions executed upon the purchase or rental of an affordable unit.

 

            (5) If there are no bidders at the Sheriff’s sale, or if insufficient amounts are bid to satisfy the first purchase money mortgage and any prior liens, the Authority may acquire title to the low and moderate income unit by satisfying the first purchase money mortgage and any prior liens and crediting the violating owner with an amount equal to the difference between the first purchase money mortgage and any prior liens and costs of the enforcement proceedings, including legal fees and the maximum resale price for which the low and moderate income unit could have been sold under the terms of this Chapter and the Affordable Housing Plan. This excess shall be treated in the same manner as the excess which would have been realized from actual sale as previously described.

 

            (6) Failure of the low and moderate income unit to be either sold at the Sheriff’s sale or a acquired by the Authority shall obligate the owner to accept an offer to purchase from  any qualified purchaser which may be referred to the owner by the Authority, with such offer to purchase being equal to the maximum resale price of the low and moderate income unit as permitted by the terms and provisions of this Chapter and the Affordable Housing Plan.

 

            (7) The owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions of this Chapter and the Affordable Housing Plan until such time as title is conveyed from the owner. The owner shall also be fully responsible for satisfying all taxes, fees, fines and the upkeep of the unit until the transfer of ownership.

 

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/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

 

Attorney Moskovitz advises that above titled Ordinance also needs Planning Board approval.

 

Julie Martin, Municipal Clerk states the Public Hearing & Adoption on Ordinance

2006-21 is scheduled for the October 11, 2006 Council Meeting, 7:30 P.M. at Borough Hall.

 

Borough of Englishtown

Resolution No. 2006-131

 

Authorization of Purchases or Services Over $800

 

            Whereas, the Borough of Englishtown Council requires that purchases and services over $800.00 or more be pre-approved by the Governing Body except in the case of imminent emergency situation; and

 

            Whereas, the following itemized request(s) were submitted to the Chief Financial Officer by the respective Committee Chairperson(s) for Council approval; and

 

            Whereas, the Chief Financial Officer certifies that appropriate funds are available for the following:

 

Re-Striping of center lines on LaSatta Avenue and Mount Vernon Road

$1,296.00

Services Rendered by:

Liberty Line Striping

Red Bank, NJ

 

            Now, Therefore, Be It Resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey, that the above request(s) is approved for the purchase or order.

 

Offered By:                  C/Rucker

 

Seconded By:               C/Robilotti

 

Roll Call:    Ayes:           C/Soden, C/Rucker, C/Carr, C/Robilotti

                  Nays:           None

              Abstain:           None

               Absent:           C/Simon, C/Palmieri

 

Borough of Englishtown

Resolution No. 2006-132

 

Waiver Of License And Fee For Peddlers At

Englishtown Fall Festival

 

            Whereas, Chapter 98 of the Code of the Borough of Englishtown requires an application and license for itinerant merchants and/or transient vendors;

 

            Whereas, the Englishtown Recreation Committee has requested a waiver of fees and application process due to the brief nature of the one day festival October 7, 2006 (rain date October 8, 2006); and

 

            Whereas, the wishes of the Governing Body is to have good participation of all citizens and to ease the requirements on this one day event;

 

            Now, Therefore, Be It Resolved by the Mayor and Borough Council of the Borough of Englishtown, County of Monmouth, State of New Jersey that it hereby waives the application fee and license fee as follows:

 

1.        All merchants and/or transient vendors must submit applications and return signed copy of rules and regulations to the Englishtown Recreation Committee.

 

2.        The Englishtown Recreation Committee will be responsible to copy the Municipal Clerk on all applications.

 

Offered By:                  C/Rucker                                                        

           

Seconded By:               C/Robilotti

           

Roll Call:   Ayes:           C/Soden, C/Rucker, C/Carr, C/Robilotti

                   Nays:         None

               Abstain:         None

                Absent:         C/Simon, C/Palmieri

                       

Borough of Englishtown

Resolution No. 2006-133

 

Resolution Accepting Corrective Action Plan

 

            Whereas, The 2005 Audit of the Borough of Englishtown conducted by Hutchins,  Farrell, Meyer & Allison, contained certain recommendations requiring action; and

 

            Whereas, these recommendations have been reviewed by the Borough's Chief Financial Officer; and

 

            Whereas, the Chief Financial Officer, in accordance with the requirements promulgated by the N.J. Division of Local Government Services has developed a plan to address the recommendations listed by the Auditors.

 

            Now, Therefore, Be It Resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey that the Corrective Action Plan for the 2005 Municipal Audit, hereto attached, is hereby approved and accepted.

 

Offered By:               C/Rucker                                

 

Seconded By:           C/Robilotti

 

Roll Call: Ayes:         C/Soden, C/Rucker, C/Carr, C/Robilotti

              Nays:          None

           Abstain:          None

           Absent:          C/Simon, C/Palmieri

 

Borough of Englishtown

Resolution No. 2006-134

 

Authorization of Purchases or Services Over $800

 

            Whereas, the Borough of Englishtown Council requires that purchases and services over $800.00 or more be pre-approved by the Governing Body except in the case of imminent emergency situation; and

 

            Whereas, the following itemized request(s) were submitted to the Chief Financial Officer by the respective Committee Chairperson(s) for Council approval; and

 

            Whereas, the Chief Financial Officer certifies that appropriate funds are available for the following:

                        Installation of lights, siren, cage and partition for new Police car

Not to exceed…………….$7,555.00

 

Purchased From:               Sea Breeze Installations, Inc.

                                                588 Buckelew Avenue

                                                Monroe, NJ  08831

 

            Now, Therefore, Be It Resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey, that the above request(s) is approved for the purchase or order.

 

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

 

Borough of Englishtown

Resolution No. 2006-135

 

Authorization of Purchases or Services Over $800

 

            Whereas, the Borough of Englishtown Council requires that purchases and services over $800.00 or more be pre-approved by the Governing Body except in the case of imminent emergency situation; and

 

            Whereas, the following itemized request(s) were submitted to the Chief Financial Officer by the respective Committee Chairperson(s) for Council approval; and

 

            Whereas, the Chief Financial Officer certifies that appropriate funds are available for the following:

                                    Two (2) Point Blank Vests (Police Dept.)

                                    Not to exceed………………$1,151.60

            

Purchased From:

                                    Lanigan Associates, Inc.

                                    496 Shrewsbury Avenue

                                    Red Bank, NJ  07701

 

            Now, Therefore, Be It Resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey, that the above request(s) is approved for the purchase or order.

 

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

 

Borough of Englishtown

Resolution No. 2006-136

 

Resolution To Amend the Approved 2006 Budget in

Accordance With the Provisions of 40A:4-9

 

            Whereas, the local municipal budget for 2006 was approved on March 22, 2006; and,

 

            Whereas, the public hearing on said budget has been held as advertised; and,

 

            Whereas, the governing body desires to amend said approved budget;

 

            Now, therefore, be it resolved, by the governing body of the Borough of Englishtown, County of Monmouth, that the following amendments to the approved budget of 2006 be made:

CURRENT FUND

 

REVENUES                                                     FROM                               TO

 

3.  Miscellaneous Revenues – Section B:

            Extraordinary Aid                                            $             0.00                 $  25,000.00

 

Total Miscellaneous Revenues – Section B                          238,303.00                    263,303.00

 

3.  Miscellaneous Revenues – Section F:

            Clean Communities Program                                                  0.00                     4,000.00

 

Total Miscellaneous Revenues – Section F                               2,815.81                             6,815.81

 

3.  Miscellaneous Revenues – Section G:

        Uniform Fire Safety Act                                                    0.00                         2,798.28

 

Total Miscellaneous Revenues – Section G                            21,600.00                          24,398.28 

 

Total Miscellaneous Revenues                                       565,318.81                      597,117.09

 

5.  Subtotal General Revenues                                    1,140,318.81               1,172,117.09

 

6.  Amount to be Raised by Taxes                                792,372.61                       763,967.52

 

7.  Total General Revenues                                              $1,932,691.42             $1,936,084.61

                                                                                   

APPROPRIATIONS                                                    FROM                                     TO

 

(A)  Operations Excluded from “CAPS”

          Public and Private Programs Offset by

            Revenues:

                        Clean Communities Program                       $            0.00                 $      4,000.00

                        SFSP Fire District Payment                                     0.00                            645.00

 

Total Public and Private Programs Offset by

            Revenue                                                                  2,815.81                              7,460.81

 

Total Operations – Excluded from “CAPS”                           487,351.81                      491,996.81

 

Detail:   Other Expenses                                                  308,807.81                      313,452.81

 

(H-2) Total General Appropriations for Municipal

     Purposed Excluded from “CAPS”                                       596,979.31                      601,624.31

 

(O) Total General Appropriations Excluded

     From “CAPS”                                                               596,979.31                      601,624.31

 

(L) Subtotal General Appropriations                         1,764,588.31                1,769,233.31

 

(M) Reserve for Uncollected Taxes                               168,103.11                      166,851.30

 

9.     Total General Appropriations                         $1,932,691.42             $1,936,084.61

 

WATER UTILITY FUND

 

REVENUE                                                          FROM                                           TO

 

Operating Surplus Anticipated                               $303,000.00               $327,000.00

 

Total Water Utility Revenues                                  $603,000.00               $627,000.00

 

APPROPRIATIONS

Debt Service:

  Interest on Bonds                                             $  31,000.00                    $  50,800.00

  Interest on Notes                                                  10,500.00                        14,700.00

 

Total Water Utility Appropriations                         $603,000.00               $627,000.00

 

 

BE IT FURTHER RESOLVED, that this complete amendment, in accordance with the provisions of N.J.S.A. 40A: 4-9, be published in the Asbury Park Press in the issue of August 27, 2006 and that said publication contain notice of public hearing on said amendment to be held at the Municipal Building on September 13, 2006 at 7:30 p.m.

 

BE IT FURTHER RESOLVED, that three certified copies of this resolution be filed forthwith in the office of the Director of Local Government Services for certifica-tion of the 2006 Local Municipal Budget as amended.

 

Offered by:                     C/Soden

 

Seconded by:                 C/Robilotti

 

Julie Martin, Municipal Clerk states the Public Hearing on Amendment and Budget Adoption is scheduled for September 13, 2006 Council Meeting, 7:30p.m. Borough Hall.

 

Roll Call:          Ayes:    C/Soden, C/Rucker, C/Carr, C/Robilotti

                        Nays:   None

                    Abstain:    None

                     Absent:   C/Simon, C/Palmieri

 

Borough of Englishtown

Resolution No. 2006-137

 

Resolution of the Borough of Englishtown,

County of Monmouth, State of New Jersey

Authorizing the Payment of Borough Bills

 

            Whereas, the Mayor and Council have carefully examined all vouchers presented to the Borough for the payment of claims; and

 

            Whereas, after due consideration of the said vouchers, the Mayor and Council have approved payment of same.

 

            Now, therefore, be it resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, as follows:

 

            1.   The said approved vouchers amounting to the sum of $505,046.47 be and

                   the same are hereby authorized to be paid on August 23, 2006.

 

2.        The Borough Clerk be and is hereby directed to list on the page in the

Minutes Book following the minutes of this meeting all of the said vouchers hereby authorized to be paid.

 

Offered  by:                  C/Soden                     

 

Seconded by:               C/Robilotti

 

Roll Call:   Ayes:             C/Soden, C/Rucker, C/Carr, C/Robilotti

                   Nays:           None

               Abstain:            None

                Absent:           C/Simon, C/Palmieri

 

Public Portion

 

Mayor Reynolds opens the floor to the public for discussion on anything they wish to bring to the attention to the governing body.

 

Christine Robbins, 18 Hamilton Street 

-         Asks what the actual role of the E.D.C is?

-         Addresses Mayor & Council about summons received for garbage cans being stored in the front yard.

 

Joyce Stipple, 8 Irving Place

-         States that there are numerous families that keep their garbage cans on the curb.

 

Stuart Moskovitz, Borough Attorney states a Rice Notice must be issued for further discussion regarding Code Enforcement job performances.

 

A motion for a Rice Notice to be issued  was offered by: C/Carr and seconded by C/Soden. Passed unanimously.

 

Liz Canario, 17 Hamilton Street

-         Would like to know if all the codes will be enforced throughout town.

-         Her address was on the list and would like to know what the problem is with her cans.

-         12 Hamilton is a handicapped resident and will have problem with cans.

 

Janet Halasz, address unknown

-         Makes observation with E.D.C. and preferential treatment.

 

Kathleen Heath, Victory Drive

-         Would like notices to be put in the Focus to remind residents of codes.

 

Ms. Spencer, Main Street

-         Received letter regarding Rental Ordinance and feels fee is unfair.

-         Would like to know if she needs to register and pay fee?

 

Kevin Bosies, 12 Main Street

                  -         Would like to know the status of reassessment.

-         Brought up a number of issues regarding Rental Ordinance fees.

 

Paula Kachinski, Hamilton Street

-         If inspections were not done does this leave Englishtown liable?

-         Where is the money going right now if inspections were not done?

 

There being no further questions or comments, a motion to close the public portion was offered by C/Carr and seconded by C/Soden.   Passed unanimously.

 

Executive Session

 

Mayor Reynolds stated pursuant to N.J.S.A. 10 4-12B be it resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey as follows whereas N.J.S.A. 10 4-12B of the Open Public Meetings Act of the State of New Jersey permits exclusion of the public from those portions of the meetings in which matters authorized to be discussed in Executive Session under the cited statute will be reviewed and discussed; and

 

            Whereas, the Governing Body concludes that the public must be excluded from the discussion of the following matters of negotiations, contractual and litigation; and

 

            Therefore, be it resolved by the Mayor and Council of the Borough of Englishtown, County of Monmouth, State of New Jersey, as follows, 1) Hereby authorizes Executive Session for the purpose of discussing above matters with N.J.S.A. 10 4-12B, 2) Anticipated at this time that the matters to be discussed in Executive Session will be discussed in Public not earlier than the next regular meeting of the Governing Body, 3) It is anticipated that the Executive Session last not longer than one-half hour,  4) There exists the possibility that action may be taken upon conclusion of the Executive Session when the meeting returns to open.

 

Offered By:              C/Soden                          

 

Seconded By:          C/Robilotti  

 

Roll Call:   Ayes:        C/Soden, C/Rucker, C/Carr, C/Robilotti

                   Nays:      None

                Absent:      C/Simon, C/Palmieri

               Abstain:      None

 

The time being 9:35 P.M.

 

There being no further business in Executive Session, a motion to return to open session was offered by C/Soden, seconded by Robilotti. Passed unanimously.

 

The time being 10:25 P.M.

 

Adjournment

 

There being no further business a motion to adjourn was offered by C/Soden, seconded by C/Robilotti. Passed unanimously.

 

The time being 10:25 P.M.

 

December 18, 2006           

Approved by Governing Body