Bill Text: NJ S217 | 2018-2019 | Regular Session | Introduced
Bill Title: Establishes program providing grants for Superstorm Sandy recovery in exchange for reduction of affordable housing obligation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S217 Detail]
Download: New_Jersey-2018-S217-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
SYNOPSIS
Establishes program providing grants for Superstorm Sandy recovery in exchange for reduction of affordable housing obligation.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning Superstorm Sandy reconstruction and affordable housing obligations and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Eligible property owner" means a property owner who was deemed eligible by the Department Community Affairs to receive federal funds dedicated through the Low-to-Moderate Income Homeowners Rebuilding Program as a result of Superstorm Sandy.
b. There is established a special, dedicated, and non-lapsing account in the General Fund called the Superstorm Sandy Neighborhood Rebuilding Account. Funds deposited in the account shall be used exclusively for the purposes established in P.L. , c. (C. ) (pending before the Legislature as this bill) and shall be used for no other purpose.
c. An eligible property owner may apply to the Department of Community Affairs for a grant of an amount necessary to complete the rehabilitation of a property damaged by Superstorm Sandy, up to $50,000, to be paid from the Superstorm Sandy Neighborhood Rebuilding Account.
d. In exchange for the receipt of grant funds from the Superstorm Sandy Neighborhood Rebuilding Account established in P.L. , c. (C. ) (pending before the Legislature as this bill), an eligible property owner shall record the following deed restriction with the county recording officer:
DEED RESTRICTION
In consideration of the grant received from the Sandy Neighborhood Rebuilding Account, the Owner hereby agrees to abide by the covenants, terms, and conditions set forth in this Deed restriction, with respect to the land and improvements located at block ___, lot ___ in the municipality of __________, County of ____________, State of New Jersey, and known by street address ________________________________________.
The covenants contained herein shall run with the land as follows:
(1) For a period of 15 years from the date upon which funds are awarded to the Owner from the Superstorm Sandy Neighborhood Rebuilding Account pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the following restrictions on the property shall be in effect:
Article 1. Sales price restriction
A. The sale of the property subject to this deed restriction is subject to regulations governing controls on affordability, which are found in New Jersey Administrative Code at Title 5, chapter 93, subchapter 9 (N.J.A.C. 5:93-9.1 et seq.), and chapter 80, subchapter 26 (N.J.A.C. 5:80-26.1 et seq.).
B. The property subject to this deed restriction may be conveyed only to one or more members of a household who have been approved in advance and in writing by the Commissioner of Community affairs, or his designee.
C. No sale of the property subject to this deed restriction shall be lawful, unless approved in advance and in writing by the Commissioner of Community affairs, or his designee, and no sale shall be for a consideration greater than the maximum permitted price ("Maximum Resale Price," or "MRP") as determined by the Commissioner of Community Affairs, or his designee.
D. No refinancing, equity loan, secured letter of credit, or any other mortgage obligation or other debt (collectively, "Debt") secured by the property subject to this deed restriction, may be incurred except as approved in advance and in writing by the Commissioner of Community Affairs. At no time shall the Commissioner of Community Affairs approve any such Debt, if incurring the Debt would make the total of all such Debt exceed Ninety-Five Percent (95%) of the applicable MRP.
E. The Owner of the property subject to this deed restriction shall at all times maintain the property subject to this deed restriction as his or her principal place of residence.
F. Except as set forth in Article 2, below, at no time shall the Owner of the property subject to this deed restriction lease or rent the property subject to this deed restriction to any person or persons, except on a short-term hardship basis as approved in advance and in writing by the Commissioner of Community Affairs.
G. No improvements may be
made to the property subject to this deed restriction that would affect its
bedroom configuration, and in any event, no improvement made to the property
subject to this deed restriction will be taken into consideration to increase
the MRP, except for improvements approved in advance and in writing by the Commissioner
of Community Affairs.
H. The affordable housing covenants, declarations and restrictions implemented by this deed restriction and by incorporation, N.J.A.C. 5:80-26.1 et seq., shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to the property subject to this deed restriction so long as the property remains subject to the affordability controls being implemented by this deed restriction.
I. The property subject to this deed restriction is subject to a fifteen (15) year affordability control period that commenced on the date upon which funds were awarded to the Owner from the Superstorm Sandy Neighborhood Rebuilding Account pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), which is ______________________.
Article 2. Rental Price Restriction
A. Rental of the property subject to this deed restriction subject to regulations known as the Uniform Housing Affordability Controls, which are found in New Jersey Administrative Code at Title 5, chapter 80, subchapter 26 (N.J.A.C. 5:80-26.1, et seq, the "Uniform Controls").
B. If the property subject to this deed restriction is to be rented to an eligible tenant, the property shall be used solely for the purpose of providing rental dwelling units for low- or moderate-income households, and no commitment for any such dwelling unit shall be given or implied, without exception, to any person who has not been certified for that unit in writing by the Commissioner of Community Affairs or his designee.
C. No improvements may be made to the property subject to this deed restriction that would affect the bedroom configuration of any of its dwelling units, and any improvements to the property subject to this deed restriction must be approved in advance and in writing by the Commissioner of Community Affairs or his designee.
D. The Owner shall notify the Commissioner of Community Affairs of any foreclosure actions filed with respect to the property within five (5) business days of service upon Owner.
E. The Owner shall notify
the Commissioner of Community Affairs within three (3) business days of the
filing of any petition for protection from creditors or reorganization filed by
or on behalf of the Owner.
Article 3. Foreclosure
A. This deed restriction shall not be terminated in the event of a Judgment of Foreclosure on the property subject to this deed restriction.
B. The terms and restrictions of this property subject to this deed restriction shall be subordinated only to the First Purchase Money Mortgage lien on the Affordable Housing Property and in no way shall impair the First Purchase Money Mortgagee's ability to exercise the contract remedies available to it in the event of any default of such mortgage as such remedies are set forth in the First Purchase Money Mortgage documents for the property subject to this deed restriction.
C. An Execution of Foreclosure sale by any other class of creditor or mortgagee shall not result in a release of the property subject to this deed restriction from the provisions and restrictions of this deed restriction.
Article 4. Remedies for Breach of Affordable Housing Covenants
A. A breach of the covenants described herein will cause irreparable harm to the public, in light of the public policies set forth in the New Jersey Fair Housing Act, the Uniform Housing Affordability Control rules found at N.J.A.C. 5:80-26, and the obligation for the provision of low and moderate-income housing.
B. In the event of a threatened breach of any of the covenants contained herein by the Owner, or any successor in interest of the property subject to this deed restriction, the Commissioner of Community Affairs shall have all remedies provided at law or equity, including the right to seek injunctive relief or specific performance.
(2) If the Owner retains ownership of the property subject to this deed restriction for longer than 15 years from the date upon which funds were awarded to the Owner from the Superstorm Sandy Neighborhood Rebuilding Account, the Owner shall, upon the first subsequent transfer of the ownership of the property, pay an amount equal to the amount received from Superstorm Sandy Neighborhood Rebuilding Account to the Department of Community Affairs for deposit into the New Jersey Affordable Housing Trust Fund established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320).
e. he grant of funds to an eligible property owner from the Superstorm Sandy Neighborhood Rebuilding Account in exchange for the recording of a deed restriction shall constitute a binding contract between the eligible property owner and the Department of Community Affairs.
2. a. Notwithstanding any law, rule, or regulation to the contrary, a municipality located within a county which was impacted by Superstorm Sandy may propose the transfer of up to 20% of its fair share affordable housing obligation by depositing funds into the Superstorm Sandy Neighborhood Rebuilding Account.
b. A municipality which is a defendant in an exclusionary zoning suit and which has not obtained substantive certification pursuant to P.L.1985, c.222 (C.52:27D:3011 et al.) may request the court to be permitted to fulfill a portion of its fair share affordable housing obligation by donating funds to the Superstorm Sandy Neighborhood Rebuilding Account, established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). If the court believes the request to be reasonable, and determines that a deposit into the Superstorm Sandy Neighborhood Rebuilding Account would result in an increase in deed-restricted affordable units for a period of at least 15 years, the court shall request the Commissioner of Community Affairs to review the proposed agreement and to determine a match with an eligible property owner, as defined in subsection a. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The court may establish time limitations for the commissioner's review, and shall retain jurisdiction over the matter during the period of review. If the court determines that the agreement provides a realistic opportunity for the provision of low and moderate income housing, it shall provide the sending municipality a credit against its fair share affordable housing obligation in the manner provided in this section.
c. The schedule for fulfilling a portion of a municipality's fair share affordable housing obligation, up to 20%, in exchange for a deposit into the Superstorm Sandy Neighborhood Rebuilding Account, shall be at the rate of two units for every $50,000 deposited; provided, however, that the minimum donation increment shall be $50,000.
3. The Commissioner of Community Affairs, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations necessary to effectuate the provisions of this act, which may include revisions to the deed restriction language established in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. This act shall take
effect immediately.
STATEMENT
This bill establishes the Superstorm Sandy Neighborhood Rebuilding Account. Under the bill, a municipality in one of the counties impacted by Superstorm Sandy may deposit funds into the account in exchange for a reduction in its affordable housing obligation at the rate of two units for every $50,000 deposited. A property owner who was deemed eligible by the Department Community Affairs (DCA) to receive federal funds dedicated for Low and Moderate Income homeowners through the federal Rehabilitation, Reconstruction, Elevation and Mitigation Program would be permitted to apply to DCA for a grant of up to $50,000.
In exchange for the receipt of grant funds from the Superstorm Sandy Neighborhood Rebuilding Account, an eligible property owner would be required to record a 15-year deed restriction to establish affordability controls on the property. During the 15-year period, the rental price and sales price of the property would be restricted in accordance with existing affordability control regulations. If the owner does not sell property until after the conclusion of the 15-year period, the owner would be required to pay the amount originally granted from the "Superstorm Sandy Neighborhood Rebuilding Account" into the New Jersey Affordable Housing Trust Fund to be used for the construction and rehabilitation of affordable units throughout the State.
