This Section of the City of Ocean City Code sets forth regulations regarding low and moderate housing units in the City of Ocean City that are consistent with the provisions of N.J.A.C. 5:93 et seq., as effective on June 6, 1994. These rules are pursuant to the Fair Housing Act of 1985 and the City of Ocean City's constitutional obligation to provide for its fair share of low and moderate income housing. (Ord. #00-25)

a. The City of Ocean City's new construction or inclusionary component will be divided equally between low and moderate income households per N.J.A.C. 5:93-2.20.

b. Except for inclusionary developments constructed pursuant to low income tax credit regulations:

1. At least one-half (1/2) of all units within each inclusionary development will be affordable to low income households; and

2. At least one-third (1/3) of all units in each bedroom distribution pursuant to N.J.A.C. 5:93-7.3 will be affordable to low income households.

c. Inclusionary developments that are not restricted to senior citizens will be structured in conjunction with realistic market demands so that:

1. At least fifty percent (50%) of all low and moderate income units are two (2) bedroom units; and

2. At least fifty percent (50%) of all low and moderate income units are three (3) bedroom units. (Ord. #00-25)

In conjunction with realistic market information, the following criteria will be used in determining maximum rents and sale prices:

a. Two (2) bedroom units will be affordable to three (3) person households; and

b. Three (3) bedroom units will be affordable to four and one half (4.5) person households; and

c. Median income by household size will be the income established by COAH at its April meeting; and

d. The maximum average rent and price of low and moderate income units within each inclusionary development will be affordable to households earning fifty seven and one half percent (57.5%) of median income; and

e. Low income units will be reserved for households with a gross household income less than or equal to fifty percent (50%) of the median income approved by COAH; moderate income units will be reserved for households with a gross household income less than eighty percent (80%) of the median income approved by COAH as per N.J.A.C. 5:93-9.16; and

f. The regulations outlined in N.J.A.C. 5:93.15 and 9.16 will be applicable for purchased and rental units. (Ord. #00-25)

a. The initial price of a low and moderate income owner-occupied single family housing unit will be established so that after a downpayment of five percent (5%) the monthly principal, interest, homeowner private mortgage and flood insurance, property taxes (based on the restricted value of the low and moderate income unit) and condominium or homeowner fee do not exceed twenty eight percent (28%) of the eligible gross monthly income; and

b. The City of Ocean City will follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3; and

c. The City of Ocean City will require a certificate of reoccupancy for any occupancy of a low or moderate income sales unit resulting from a resale per N.J.A.C. 5:93-9.3(c); and

d. Municipal, State, non-profit and seller options regarding sale units will be consistent with N.J.A.C. 5:93-9.3 - 9.5 - 9.8. Municipal rejection or repayment options for sale units will be consistent with N.J.A.C. 5:93-9.9; and

e. The continued application of options to create, rehabilitate or maintain low and moderate income sale units will be consistent with N.J.A.C. 5:93-9.10; and

f. Eligible capital improvements prior to the expiration of controls on sale units will be consistent with N.J.A.C. 5:93-9.11; and

g. The regulations detailed in N.J.A.C. 5:93-9.12-9.14 will be applicable to low and moderate income units that are for sale units. (Ord. #00-25)

A development fee ordinance was approved by COAH and adopted by the City of Ocean City on September 21, 1999. (Ord. #99-14; Ord. #00-25)

To provide assurances that low and moderate income units are created with controls on affordability over time and that low and moderate income households occupy these units, the City of Ocean City will designate the Department of Administration with the responsibility of ensuring the affordability of sales and rental units over time. The Department of Administration will be responsible for those responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).

a. In addition, the Department of Administration will be responsible for utilizing the verification and certification procedures outlined in N.J.A.C. 5:93-9.1(b) in placing households in low and moderate income units; and

b. Newly constructed low and moderate income sales units will remain affordable to low and moderate households for at least thirty (30) years. The Department of Administration will require all conveyances of newly constructed units to contain the deed restriction and mortgage lien adopted by COAH and referred to as Technical Appendix E as found in N.J.A.C. 5:93. (Ord. #00-25)

The City of Ocean City has a fair share obligation of eight (8) units of which eight (8) is new construction. This Ordinance will apply to all developments that contain proposed low and moderate income units that are listed below and any future developments that may occur:

The City of Ocean City proposes to meet its infill obligation by construction of eight (8) single family residences in the 600 Block of Simpson Avenue.

a. 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 City of Ocean City is in the housing region consisting of Cape May County. 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 following daily regional newspapers/publications: Ocean City Sentinel Ledger; Atlantic City Press (Cape May County Edition).

b. The primary marketing will take the form of at least one (1) press release sent to the above publications and a paid display advertisement in each of the above newspapers. Additional advertising and publicity will be on an "as needed" basis.

c. The advertisement will include a description of the:

1. Street address of units;

2. Direction to housing units;

3. Number of bedrooms per unit;

4. Range of prices/rents;

5. Size of units;

6. Income information;

7. Location of applications including business hours and

8. Where/how applications may be obtained.

d. The following is the location of applications, brochure(s), sign(s) and/or poster(s) used as part of the affirmative marketing program:

1. Ocean City Housing Authority.

2. Ocean City Public Library.

3. Ocean City Construction Code Office.

4. Ocean City Community Center.

e. Applications will be mailed to prospective applicants upon request.

f. Additionally, quarterly information circulars and applications will be sent to the chief administrative employees of each of the following agencies in the County of Cape May:

1. Ocean City Housing Authority.

2. Ocean City Library.

g. The Ocean City Department of Administration is the agency within Ocean City to administer the affirmative marketing program. The Ocean City Department of Administration 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 Economic Development Coordinator within the City of Ocean City is the designated housing officer to act as liaison to the Ocean City Department of Administration. The Ocean City Department of Administration 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.

h. Households who live or work in the COAH-established housing region may be given preference for sales 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.

j. The Ocean City Department of Administration will comply with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 12.1.

k. The following zones are applicable to the designated sites: R-1. (Ord. #00-25)