Properties in the R-1 A and R-1 B Zones maybe developed only for townhouses and apartments subject to the following requirements and limitations:

A. In the R-1A District, at least 2/3 of the total number of housing units shall be townhouses. The remaining 1/3, which shall include required units intended for occupancy by low- and moderate-income households, may be either townhouses or apartments.

B. In the R-1 B District, all housing units shall be townhouses, except that housing units intended for occupancy by low- and moderate-income households, may be either townhouses or apartments.

A. Minimum lot area. There shall be a minimum lot area of 20 acres.

B. Maximum densities. Maximum permitted densities shall be as follows:

(1) R-1 A: 4.5 dwelling units per acre.

(2) R-1 B: 6.5 dwelling units per acre.

C. Controls on affordability. Any application for development in the R-1 A and R-1 B Zones shall include a plan detailing the method which shall be used to ensure that low- and moderate-income units shall be sold only to low- and moderate-income households for a period not less than 30 years from the date of initial sale occupancy or rented only to low- and moderate-income households for a period not less than 30 years from the date of initial rental occupancy. Such plan shall be subject to review and approval by the Township of Boonton and/or any agency or authority, hereinafter the "agency" with which the Township enters into a contractual agreement to administer controls on affordability. Such plan shall contain all of the requirements set forth in this section, as well as any regulations consistent with this section which may be adopted by the Township as may be required by COAH and/or the agency. If the Township enters into a contractual agreement with the agency, the developer shall be responsible to pay all service and other fees in connection therewith. When the approval or other action of the Township is required under any provision in this section, the word "Township" shall mean and include any agency designated by the Township to administer controls on affordability to which such action may be delegated.

D. Maximum coverage.

(1) In the R-1A District, the total ground floor area of all buildings shall not exceed 15% of the lot area of the development. The total area of all impervious surfaces, including buildings, shall not exceed 30% of the lot area of the development.

(2) In the R-1 B District, the total ground floor area of all buildings shall not exceed 20% of the lot area of the development. The total area of all impervious surfaces, including buildings, shall not exceed 40% of the lot area of the development.

E. Setback requirements. No building shall be located within 50 feet of a public street or exterior property line of the development nor within 60 feet of an R-81A, R-81 or R-40 Residence District boundary. Notwithstanding the foregoing, no building need be located more than 40 feet from a public park or other permanent open space area nor within 20 feet of an internal roadway. In addition, there shall be a minimum distance between buildings located on opposite sides of an internal roadway of 75 feet.

F.Distance between buildings. Minimum distances, as specified below, shall be maintained between principal buildings as follows:

NOTES:

1. Not less than 50 feet of driveway is located between buildings.

G. Building requirements.

(1) Height. No building structure shall exceed a height of three stories or 35 feet, whichever is the lesser. Notwithstanding the definition of "height of structure" in Article I of this chapter, for purposes of this section, "height" shall be the vertical distance from the average ground elevation around the foundation to the highest point of the structure. "Average elevation" shall be the average of the highest and lowest elevations along the finished grade of the building.

(2) Length of building. No building shall exceed a length of 160 feet.

(3) Units per building. Buildings devoted exclusively to townhouses shall contain no less than two nor more than eight dwelling units. Buildings devoted exclusively to apartments shall contain no less than four nor more than 16 dwelling units. Buildings devoted to both townhouses and apartments shall contain no less than four nor more than 12 dwelling units.

(4) Dispersal of low-and moderate-income housing units. Low-and moderate-income housing units shall be interspersed with market-rate units both throughout a development and within individual buildings. No building shall be devoted exclusively to low- and moderate-income housing units. In buildings containing low- and moderate-income housing units, not more than 75% of the total number of units or six units, whichever is less, shall be low- and moderate-income housing units.

H. Dwelling unit requirements.

(1) No dwelling unit shall have a width of less than 20 feet.

(2) For developments not restricted to senior citizens, each dwelling unit shall contain, as a minimum, a separate living room, a separate bedroom, a separate bath and a kitchen, which kitchen facility shall be located separate and apart from other rooms in the unit, with the exception of the dining room.

(3) Buildings containing low- and moderate-income housing units shall be aesthetically congruous with the surrounding area as approved by the Planning Board, with the exteriors harmonizing architecturally with and being constructed of materials of like character to those used for other buildings in the development. All buildings shall be constructed in accordance with the State Uniform Construction Code and shall comply with other applicable state and municipal requirements.

(4) Low- and moderate-income housing units shall utilize the same heating source as market units within the development.

(5) Distribution of low- and moderate-income units.

(a) Affordability.

[1] At least 1/2 of all units within an inclusionary development shall be affordable to low-income households.

[2] At least 1/2 of all rental units shall be affordable to low-income households.

[3] At least one-third of all units in each bedroom distribution [pursuant to Subsection H(5)(b) below] shall be affordable to low-income households.

(b) Bedroom distribution.

[1] Inclusionary developments that are not restricted to senior citizens shall be structured in conjunction with realistic market demands so that:

[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] Low- and moderate-income units restricted to senior citizens may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of senior citizen low- and moderate-income units within the inclusionary development. The standard can be met by creating all one-bedroom units or by creating a two-bedroom unit for each efficiency unit. Applications to waive this standard shall be made in accordance with N.J.A.C. 5:93 and shall be referred by COAH to the Department of Community Affairs Division on Aging for review and recommendations.

(6) Lower-income units shall be interspersed with similar-type housing (apartments, townhouse, patio homes, etc.) throughout the section wherein that housing type is to be located.

I. Accessory buildings.

(1) Setbacks. Accessory buildings shall meet the street, property line and internal roadway setbacks of the principal building and shall be at least 25 feet from a principal building and 15 feet from another accessory building. Clubhouses, swimming pools and recreation facilities shall be at least 50 feet from a principal building and at least 100 feet from a property line.

(2) Height. The maximum height of an accessory building shall be 15 feet, except for clubhouses, which shall not exceed 28 feet in height.

(3) Design. Architectural design and materials used in the construction of accessory buildings shall conform to or complement those used in the construction of principal buildings.

(4) Signs. The provisions of Article XXXIII shall be complied with.

J. Initial pricing of low- and moderate-income units.

(1) The initial price of a low- and moderate-income owner-occupied single-family housing unit shall be established so that, after a down payment of 5%, the monthly principal, interest, property taxes, insurance and condominium or homeowners' association fees, if any, do not exceed 28% of an eligible gross monthly income. Rents, including utilities, are to be set so as not to exceed 30% of the gross monthly income of the appropriate household size. The allowance for utilities shall be consistent with the utility allowance approved by the Department of Housing and Urban Development for use in New Jersey. The maximum rent shall be calculated as a percentage of the uncapped Section 8 income limits published by the Department of Housing and Urban Development or other recognized standard adopted by COAH that applies to the rental housing unit. The following criteria shall be considered in determining rents and sale prices:

(a) Efficiency units shall be affordable to one-person households.

(b) One-half of all one-bedroom units shall be affordable to one-person households; and one-half of all one bedroom units shall be affordable to two-person households.

(c) One-half of all two-bedroom units shall be affordable to two-person households; and one-half of all two-bedroom units shall be affordable to three-person households.

(d) 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.

(2) Housing units that satisfy the criteria in Subsection J(1)(a) through (d) above shall be considered affordable.

(3) Median income by household size shall be established by a regional weighted average of the uncapped Section 8 income limits published by the Department of Housing and Urban Development or other recognized standard adopted by COAH that applies to the housing unit.

(4) Moderate-income sales units shall be available for at least three different prices, and low-income sales units shall be available for at least two different prices.

(5) The developer shall submit all proposed prices and rents for low- and moderate-income units, including the proposed stratification, proposed affordability level and documentation supporting all elements, to the Township as part of the application for preliminary site plan approval. The Township may modify the prices where necessary to comply with these requirements. No representation with respect to the price of any low- and moderate-income unit may be made by any developer until that price has been approved by the Township.

(6) Master deeds shall provide that condominium or homeowners' association fees or special assessments of low- and moderate-income purchasers be 1/3 of the condominium or homeowners' association fees paid by market purchasers. Once established within the master deed, the percentage shall not be amended without prior approval from COAH.

K. Range of affordability for low- and moderate-income housing.

(1) The maximum average price or rent of low- and moderate-income units within an inclusionary development shall be affordable to households earning 57.5% of median income as contained in § 102-177J.

(2) In devising a range of affordability for rental housing, as required in Subsection K(1) above, the developer shall establish one rent for a low-income unit and one rent for a moderate-income unit for each bedroom distribution.

L. Resale and rental controls.

(1) Resale and rental controls shall be embodied in a deed restriction on the property which shall be submitted by the developer at the time of preliminary site plan approval and shall be subject to review and approval by the Township. All conveyances of newly constructed sales units shall contain and be controlled by the uniform deed restriction and second repayment mortgage and note adopted by COAH at N.J.A.C. 5:93-9.2, Appendix, unless an amendment to the deed restriction, note and mortgage has been approved by COAH and the Township. All rental units shall be controlled by a deed restriction in a form to be approved by the Township Attorney, unless a particular uniform deed restriction applicable to rental units is hereinafter adopted and required by COAH, in which event such restriction shall be required unless an amendment to the same has been approved by COAH and the Township.

(2) Any plan for controlling the resale of low- and moderate-income units shall adhere to the following requirements:

(a) Annual indexed increases.

[1] The price of an owner-occupied housing unit and the rents of affordable housing units may increase annually based on the percentage increase in the regional median income limit for the Northwest housing region as determined from the Section 8 income limits schedule or other recognized standard adopted by COAH. In no event shall the maximum resale price established by the Township be lower than the last recorded purchase price.

[2] The rent of a low- or moderate-income housing unit may be increased annually based on the percentage increase in the Housing Consumer Price Index for the United States. This increase shall not exceed 9% in any one year. Rents for units constructed pursuant to lowincome tax credit regulations shall be indexed pursuant to the regulations governing lowincome tax credits.

(b) Optional municipal subsidy to ensure affordability. If the use of median income data adopted by COAH to index the cost of housing renders a unit unaffordable to a low- or moderate-income household at the time of resale, the Township of Boonton shall not lose credit toward its fairshare obligation for the housing unit, provided that adequate controls on affordability remain in place. The Township of Boonton may subsidize the housing unit to maintain affordability.

(c) Procedures of resale.

[1] Low and moderate sales units shall not be offered to non-income-eligible households at initial sale without COAH approval. Parties that petition COAH for such approval must document efforts to sell housing units to income-eligible households and shall adhere to the procedures set forth in N.J.A.C. 5:91-12.

[2] Persons wishing to sell affordable units shall notify the Township or the agency responsible for assuring affordability of the intent to sell. If no eligible buyer enters a contract of sale for the unit within 90 days of notification, the Township shall have the option to purchase the unit for a negotiated price that shall not exceed the maximum price permitted based on the regional increase in median income as determined from the Section 8 income limits schedule determined by HUD or other recognized standard adopted by COAH. If the Township does not purchase the unit, the seller may apply for permission to offer the unit to a non-income-eligible household at the maximum price permitted. The seller shall document efforts to sell the unit to an income-eligible household as part of this application. In reviewing the request, the Township shall consider the specific reasons for any delay in selling the housing unit and the hardship to the seller in continuing to offer the affordable unit to an income eligible applicant. The inability to sell a unit for the maximum permitted resale price shall not, in itself, be considered an appropriate reason for allowing a housing unit to be sold to a non-income-eligible household. If the request is granted, the seller may offer a low-income housing unit to a moderate-income household and a moderate-income housing unit to a household earning in excess of 80% of the median income. In no case shall the seller be permitted to receive more than the maximum price permitted. In no case shall a sale pursuant to this section eliminate the resale controls on the unit or permit any subsequent seller to convey the unit except in full compliance with the terms of N.J.A.C. 5:93-9.1 et sec. The deed to any above-income purchaser shall specifically contain a deed restriction establishing that it is subject to all such controls.

[3] Owners of low- and moderate-income rental units shall not offer rental units to non-income eligible households without prior approval of the COAH. Parties that petition for such approval shall document all efforts to rent to income eligible households and demonstrate to the satisfaction of the council that alternatives, such as a reduction in rent, is not feasible. Parties that petition the Council shall adhere to the procedures outlined in N.J.A.C. 5:91-12.

(d) Calculation of resale price. The maximum price permitted for resale of the unit shall be the base price increased pursuant to Subsection L(2)(d)[1] and [2] as set forth herein.

[1] The price approved by the Township at which the seller acquired the property shall be the base price. The base price shall be increased based on the regional increase in the median income as defined by HUD, from the time of the acquisition of the property to the date that notice of intent to sell is given to the Township.

[2] In addition, a seller of a single-family, owner occupied housing unit may apply to the Township for permission to increase the maximum price for eligible capital improvements, which are those which, pursuant to N.J.A.C. 5:93-9.11, render the unit suitable for a larger household. In no event shall the maximum price of an improved housing unit exceed the limits of affordability for the larger household. Property owners shall apply to the Township if an increase in the maximum sales price is sought.

(e) Exempt sales. The transfer of ownership of an affordable-sales unit between a husband and wife or between a former husband and wife as the result of a judicial decree of divorce or judicial separation shall not be deemed to be a sale for the purposes of these regulations. The foregoing exemption does not include a sale to a third party as a result of divorce or separation. The transfer of ownership between family members as a result of inheritance, the transfer of ownership through and executor's deed to a Class A beneficiary and the transfer of ownership by court order are also deemed exempt sales for the purposes of these regulations. A grant of exemption shall not eliminate the resale control restrictions set forth herein and under appropriate rules of COAH. Any subsequent sale shall be subject to all the terms of these regulations.

(f) Rental of low- and moderate-income units. No owner or occupant of a low- or moderate-income unit may lease or sublet the unit to another without prior written approval of the Township, which shall not be granted except when justified by particular and unusual circumstances. Any person seeking such approval shall submit a written request to the Township setting forth the particular circumstances, including the reasons for the request to rent or sublet and the proposed duration of the tenancy. In the event that the request is approved, such person shall be notified and shall rent the unit only to a qualified low- or moderate-income tenant for the period approved by the Township at a rent affordable to a low- or moderate-income tenant.

(g) Impact of foreclosure on resale while controls are in place.

[1 ] Any mortgage for a low- or moderate-income unit shall contain a provision requiring the holder of a mortgage on the property to inform the Township in the event of the institution of a foreclosure action. The Township shall have at all times the right to intervene in any foreclosure action.

[2] A judgment of foreclosure or a deed in lieu of foreclosure by a financial institution regulated by state and/or federal law or to a lender on the secondary mortgage market shall extinguish controls on affordable housing units, provided that there is compliance with Subsection L(2)(h) below. Notice of foreclosure shall allow the Township, the Department of Community Affairs, the New Jersey Housing and Mortgage Finance Agency or a nonprofit entity to purchase the affordable housing unit at the maximum permitted sales price and maintain it as an affordable unit for the balance of the intended period of controls. Failure to purchase the affordable housing unit shall result in the COAH's adding that unit to the municipal present and prospective fair-share obligation. Failure of the financial institution to provide notice of a foreclosure action to the Township shall not impair any of the financial institution's rights to recoup loan proceeds; shall not negate the extinguishment of controls or the validity of the foreclosure; and shall create no cause of action against the financial institution.

(h) Excess proceeds upon foreclosure. In the event of a foreclosure sale, the owner of the affordable housing unit shall be personally obligated to pay the Township, through the agency responsible for assuring affordability, any surplus funds, but only to the extent that such funds exceed the difference between the maximum price permitted at the time of foreclosure and the amount necessary to redeem the debt to the financial institution, including cost of foreclosure.

(i) Second mortgages. No second mortgage shall be placed upon the property without the prior written approval of the Township. In determining whether to grant an approval for the second mortgage, the Township shall consider the need for the second mortgage and the impact that the second mortgage shall have on the ability of the Township to maintain this unit as a low- and moderate-income unit. Under no circumstances shall a foreclosure of a second mortgage constitute grounds for eliminating the resale or rental controls provided for in these regulations. Prior written approvals shall be denied for these second mortgages unless the same are specifically authorized by COAH regulations and the application is consistent with those regulations.

(j) Sale of personal property. At resale, all items of property which are permanently affixed to the units and/or were included when the unit was initially restricted (for example, refrigerator, range, washer, dryer, dishwasher, wall to wall carpeting) shall be included in the maximum allowable resale price. Other items of property may be sold to the purchaser at a reasonable price that has been approved by the Township at the time of signing the agreement to purchase. The purchase of central air conditioning installed subsequent to the initial sale of the unit and not included in the base price may be made a condition of the unit resale, provided that the price has been approved by the Township. Unless otherwise permitted by COAH, the purchase of any property other than central air conditioning shall not be made a condition of the unit resale. The owner and the purchaser must personally certify at the time of closing that no unapproved transfer of funds for the purpose of selling and receiving property has taken place at resale.

(k) Expiration of resale and rental controls.

[1] At the end of the period of controls set forth in Subsection C hereinabove, the low- and moderate-income restrictions established in these regulations shall expire, subject to the following limitations and conditions and the provisions of N.J.A.C. 5:93-9.2. An eligible seller of a low- or moderate-income unit which has been controlled for the period set forth in Ssubsection C herein shall be obligated to provide a notice of intent to sell to the Township of Boonton and the New Jersey Council on Affordable Housing prior to entering into an agreement for the first nonexempt sale. An option to buy the unit at the maximum restricted sales price, as calculated pursuant to the requirements of this section, shall be made available to the Township of Boonton and/or its designee, the Department of Community Affairs, the New Jersey Housing and Mortgage Finance Agency and/or any qualified nonprofit organization as determined by such agency for a period of 90 days from the date of delivery of the notice of intent to sell. Such notice and option shall be sent to the Township and COAH by certified mail. If the option to buy is not exercised within 90 days pursuant to N.J.A.C. 5:93-9.4(c) and (d), the owner may, subject to Subsection L(2)(k)[2] hereinbelow:

[a] Elect to sell the unit to a qualified low- or moderate-income household at a price not to exceed the maximum permitted sales price in accordance with existing COAH rules, provided that the unit is regulated by the deed restriction and lien adopted by COAH as referenced in N.J.A.C. 5:93-9.2, Appendix E, for an additional period of up to 30 years; or

[b] Sell the unit to any purchaser at fair market value, subject to Subsection L(2)(k)[2] hereinbelow; provided, however, that 95% of the price differential between fair market value and the maximum permitted sales price is paid to the Township of Boonton to be deposited in the Township's Housing Trust Fund and used in accordance with the spending plan of the Township as approved by COAH. The payment shall be made to the Township of Boonton on the date of closing and transfer of title at the first nonexempt transaction after the expiration of controls on affordability.

[c] If the owner does not sell the unit within one year of the date of delivery of the 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 90 days prior to any future proposed date of sale.

[2] Notwithstanding Subsection L(2)(k)[1] above, the Township of Boonton 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 set forth in Subsection L(2)(k)[1] above and maintain controls on such housing units beyond the thirtyyear period set forth in Subsection C. Such determination shall be made by resolution of the Township Committee, which shall be filed with COAH and the agency administering the affordability controls for the Township and published in the official newspaper of the Township and shall specify the time period for which the repayment option shall not be available to the owners of low- and moderate-income housing units within the Township of Boonton. During such period, no seller in the municipality may utilize the repayment option permitted by Subsection L(2)(k)[1] above. The deed restrictions applicable to such units shall be amended to reflect the extended period of control.

[3] If the sale will be to a qualified low- and moderate-income household, the Township shall certify the income qualifications of the purchaser and shall ensure the housing unit is regulated by the deed restriction and lien required by COAH, which has been included in N.J.A.C. 5:93-9.8, Appendix E.

[4] The Township 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 Township may rely on comparable sales data or an appraisal. The Township shall not approve any contract of sale where there is a determination that the sale price does not bear a reasonable relationship to fair market value. The Township shall make a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.

[5] The Township shall adopt an appeal procedure by which a seller may submit written documentation requesting the Township to recompute the repayment obligation if the seller believes an error has been made, or to 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 Township.

[6] When a housing unit has been maintained as a low- or moderate-income unit after controls have been in effect for the period specified in Subsection C, the deed restriction governing the housing unit shall allow the Township, the state, nonprofit agencies and sellers of lowand moderate-income units to again exercise all the same options as provided in this section.

M. Occupancy selection and priorities.

(1) Application criteria.

(a) The developer shall designate an application period during which applications to purchase or rent units will be accepted.

(b) Applications shall be accepted only if submitted on the application form prepared by the developer and approved by the Township. Applications shall be completely filled out and notarized. Knowingly and intentionally making any false statement on a form shall be grounds for disqualifying an applicant, even if the applicant is otherwise eligible. The following information, at a minimum, shall be required:

[1] A copy of IRS Form 1040 (Tax Computation Form), 1040A or 1040EZ, as applicable and state income tax returns filed for each of the three years prior to the date of the interview.

[2] A letter from an employer stating present annual income as projected annually or four consecutive paycheck stubs, including overtime, bonuses or tips, dated within 120 days of the initial interview.

[3] A letter or appropriate reporting form verifying benefits, including but not limited to social security, pension, unemployment, welfare or disability income (monthly or annually).

[4] A letter or appropriate reporting form verifying any other sources of income claimed by the applicant household, such as alimony and child support.

[5] Reports that verify income from assets to be submitted by banks or other financial institutions managing trust funds, money market accounts, certificates of deposit, stocks and bonds.

[6] Reports that verify assets that do not earn regular income, such as non-income-producing real estate and savings that do not earn interest.

[7] Evidence or reports of income from assets such as real estate or businesses that are directly held by any household member.

[8] A notarized statement of explanation in such form as to be satisfactory to the reviewer.

(c) The income and assets of all members of the applicant household 18 years of age or over, as well as the income and assets of any individual 18 years of age or over who is expected to occupy the unit for which the household is seeking to qualify, shall be included in the determination of eligibility. The form used for verification of household income shall include an affidavit attesting that the application contains the complete income of all current or anticipated household members 18 years of age or over.

(d) Generally, sources of annual income shall be based on regular income reported to the IRS and which can be utilized for mortgage approval. Household annual gross income shall be calculated by projecting current gross income over a twelve-month period.

(e) Income includes but is not limited to wages, salaries, tips, commissions, alimony, regularly scheduled overtime, pensions, social security, unemployment compensation, AFDC, verified regular child support, disability, net income from business or real estate, and income from assets such as savings, CDs, money market, mutual funds, stocks and bonds and imputed income from non-income-producing assets such as equity in real estate.

(f) Assets not earning a verifiable income shall have an imputed interest income using a current average annual savings interest rate. Assets not earning income include present real estate equity. Applicants owning real estate must produce documentation of a market value appraisal and outstanding mortgage debt. The difference will be treated as the monetary value of the asset and the imputed interest added to income.

(g) Income from assets that have delayed earnings, such as IRA's or annuity programs, shall not be included in current income until such payments are being received. However, these assets must be reported and verified.

(h) Net rent from real estate is considered income after the monthly mortgage payment, including real estate taxes and insurance, is deducted. Other expenses are not deductible. In addition, the equity in the rented real estate is considered an asset and will have the imputed interest income on the calculated value of equity added to income.

(i) Income does not include payments, rebates or credits received under federal or state lowincome home energy assistance programs, food stamps, payments received for care of foster children, relocation assistance benefits, income of live-in attendants, scholarships, student loans, personal property such as automobiles, lump-sum additions to family assets such as inheritances, one-time lottery winnings and insurance settlements, except for additional income earned from these additions, and casual, sporadic or irregular gifts and bonuses.

(j) Standard credit information services that provide conventional credit and tenant reports may be utilized when certifying a household with required written permission from the household. An unsatisfactory credit history or credit information that demonstrates a disproportionate debt to income ratio may result in a denial of certification. Court-ordered payments for alimony or child support to another household shall be considered a regular monthly debt whether or not it is being paid regularly.

(2) Occupancy selection; priorities.

(a) A household whose total gross nnual income is measured at 50% or below 50% of the authorized median income guideline shall be certified as low-income household and referred to units designated for low-income households.

(b) A household whose total gross annual income is measured above 50% but below 80% of the authorized median income shall be certified as a moderate-income household and referred to units designated for moderate-income households.

(c) Generally, households will be referred to units where predetermined total monthly housing costs correspond to the household's calculated ability to pay using 28% of gross monthly income as a standard for home ownership and 30% of gross monthly income as a standard for rental units.

(d) Households shall be required to produce documentation of household composition for determining the correct unit size and the applicable median income guide.

(e) A form for certification shall be prepared and signed by the Township. Only households receiving certification shall be referred to affordable housing units.

(f) Selection from among the eligible applicants and within all rounds of applicant selection shall be on a random basis, subject only to the priority schedule established herein.

[1 ] For those sales or rentals subject to residential priority, the priority shall be as follows:

[a] First priority: all residents of the housing region. [b] Second priority: all other persons.

[2] A household of the size provided for in this subsection shall have priority over households of a smaller size for one-bedroom or three bedroom units:

*NOTE: A household of more than four shall be treated the same as a household of four.

[3] All applicants shall be classified by the developer in one of the priority categories set forth above on the basis of the information provided in the initial application. Applicants falling into more than one category shall be place in the highest category for which they are eligible.

[4] To the greatest extent possible, eligible households shall be referred to available units using the following accepted standards for occupancy, provided that in no case shall a household be referred to a unit that provides for more than one extra bedroom per family occupancy requirement:

[a] A maximum of two persons per bedroom.

[b] Children of same sex in same bedroom.

[c] Unrelated adults or persons of the opposite sex other than husband and wife in separate bedrooms.

[d] Children not in same bedroom with parents.

(g) Certified households who reject an opportunity for affordable housing may be replaced on the referral list at their request and may be reinterviewed for certification when their name appears on a listing for a subsequent unit.

(h) Certification shall be valid for no more than 120 days unless a valid sales contract or lease has been executed within that time period. In this event, certifications shall be valid until such time as the sales contract or lease is ruled invalid and no occupancy has occurred. Certifications may be renewed, in writing, at the request of a certified household for no more than an additional period of 120 days at the discretion of the Township.

(i) Households who are denied certifications may make a written request for a redetermination. Households shall be required to produce additional documentation to support their claim. Households who are denied certification a second time may request a hearing by forwarding a written request to the Township within 30 days following the household's receipt of a denial notification. If a written request has not been received within the thirty-day time period, the ineligible determination will be final. The hearing decision shall be final.

(j) The developer may establish by lottery a waiting list for the remaining eligible applicants in the manner established herein. After all the units are occupied, the developer may choose to accept new applications. If an applicant is deemed eligible, the applicant shall be placed on a waiting list at the bottom of the particular priority classification for which the applicant qualifies. The developer shall periodically recertify the applicants on the waiting list to ensure that the list remains current and that the applicants are still qualified for the units for which they applied.