[Amended 9-10-1996 by Ord. No. 96:26]

Construction of single-family detached homes, townhouses and senior citizen units shall be placed in such a manner as the owner may determine, except that certificates of occupancy shall be issued in accordance with the following schedule:

A. Controls on affordability. Any application for development in Affordable Housing District Nos. 1 and 2 shall include a plan detailing the method which shall be used to ensure that low- and moderate-income units shall be rented only to low- and moderate-income households for a period of not less than 20 years from the date of initial sale or rental occupancy. Such plan shall be subject to review and approval by the Township of Parsippany-Troy Hills and/or the New Jersey Housing and Mortgage Finance Agency, hereinafter the "Agency," with which the Township preserves its right under N.J.A.C. 5:92-12.3 to enter 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. 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 the Director of the Department of Planning, Zoning and Construction Inspections, as established by Article XI of Chapter 4, Administration of Government, of the Code of the Township of Parsippany-Troy Hills, Morris County, New Jersey, or any agency designated by the Township to administer controls on affordability to which such action may be delegated.

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

(1) Rents, including an allowance for utilities consistent with the personal benefit approved by COAH, are to be set so as not to exceed 30% of the gross monthly income of the appropriate household size. Maximum rent shall be calculated as a percentage of the uncapped Section 8 income limits published by the Federal 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-bedroom units shall be affordable to two-person households.

(c) Two-bedroom units shall be affordable to three-person households.

(d) Three-bedroom units shall be affordable to five-person households.

(e) Four-bedroom units shall be affordable to seven-person households.

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

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

(4) 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.

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

(1) At least 50% of all affordable housing units in a particular project shall be rented so as to be affordable to low-income households.

(2) The average rent cost of low- and moderate units within an inclusionary development shall be, as best as practicable, affordable to households at 57.5% of median income as defined in § 430-8A.

(3) In devising a range of affordability for rental housing, as required in Subsection C(2) above, the development shall provide, as best as practicable, for the following distribution of prices for every 20 low- and moderate-income units:

(4) For initial occupancy, priority shall be given to households that fall within the median income categories delineated in Subsection C(3) above.

D. Rental controls. Rent cost 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 deed restrictions shall be consistent with the requirements of this section and any and all regulations adopted pursuant hereto.

(1) Annual indexed increases. The rents of affordable housing units may increase annually, based on the percentage increase in median income for the housing region as determined from the Section 8 income limits schedule or other recognized standard adopted by COAH.

(2) Duration of controls. Except as otherwise provided in these regulations, all units subject to the provisions of this article shall be subject to rent controls for a period of 20 years from the date of the initial lease agreement for a rental unit.

E. Occupancy selection and priorities.

(1) Application criteria.

(a) The developer shall designate an application period during which applications to 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) for each of the two years prior to the date of the application.

[2] A letter from an employer stating present annual income or four consecutive paycheck stubs dated within 120 days of the initial application.

[3] A letter of appropriate reporting form verifying benefits, including but not limited to social security or pension.

[4] A letter or appropriate reporting form verifying any other sources of income claimed by the applicant household.

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

[6] Reports that verify assets that do not earn regular income, such as real estate and savings with delayed earning provisions.

(c) The Township shall determine whether the applicant meets the income and other requirements established in these regulations. The review process shall not involve a credit background for households seeking to rent low- and moderate-income units.

(d) The income and assets of all members of the applicant household, as well as the income and assets of any individual 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.

(2) Occupation selection; priorities. The Township shall provide the developer with a list of prequalified eligible applicants who shall be offered the opportunity to rent units. Selection from among the eligible applicants and within all rounds of application shall be on a random basis, subject only to the priority schedule attached herein. For all low- and moderate-income housing units provided in inclusionary developments, with respect to initial occupancy, 50% of the units shall be made available to income-eligible residents that reside or work in the housing region in which the Township of Parsippany-Troy Hills is located. These households shall be offered contracts of lease first and before other income-eligible households. When 50% of the housing units have been purchased or leased according to the above, there shall be no further priority for residents or employees in the housing region in which the Township of Parsippany-Troy Hills is located. [Amended 9-13-2005 by Ord. No. 2005:25]

F. Affirmative marketing.

(1) Preference. The Township intends to provide a preference to low- and moderate-income persons who presently reside or work in the housing region in which the Township of Parsippany-Troy Hills is located as provided in N.J.A.C. 5:93-11.7(b) and provided hereinabove. The following program shall apply to all developers in the Township providing low- and moderate-income units regardless of the number of units. [Amended 9-13-2005 by Ord. No. 2005:25]

(2) Affirmative marketing plan required.

(a) All developers of lower-income housing shall affirmatively market such housing to all segments of the lower-income population within the housing region in which the Township is located and to all qualified low- and moderate-income households, irrespective of race, color, religion, sex or national origin. To that end, the developer shall formulate and submit an affirmative marketing plan acceptable to the Township of Parsippany-Troy Hills or its assigns for review and approval in accordance with this section and applicable rules and housing regulations of the Council of Affordable Housing. The plan shall be incorporated as a condition of approval of the development application.

(b) Said plan shall describe how low- and moderate-income housing is to be marketed, applicants screened, occupancy offered and income-eligible households selected. It shall include a housing component which shall detail the type, sale and/or rental schedule for all housing units, and shall include the number of units to be sold and/or rented, the square footage of each housing unit and any other reasonable information required under Article XXXIII or by any other Township agency.

(3) Publications and advertisements regarding the availability of low- and moderate-income housing units shall be made in newspapers of general circulation in the Township's housing region, including but not limited to the Newark Star - Ledger and Morristown Daily Record. The plan shall also provide for advertisements in publications of limited circulation such as neighborhood news-oriented weekly newspapers. Drafts of news releases shall be submitted to and approved by the Township prior to publication.

(4) The developer shall advise the Township of Parsippany-Troy Hills and its Director of Social Services of the existence of available housing units and shall further post announcement notice of their availability in the Municipal Building.

(5) The developer shall, in addition, advise the Morris County Housing Authority, local churches and other groups and agencies, as directed by the Township, of the existence of housing opportunities.

(6) The developer shall file with the Township of Parsippany-Troy Hills evidence of compliance with the affirmative marketing program set forth herein and any such requirements of the Council on Affordable Housing. Proof of compliance of affirmative marketing procedures shall include copies of newspaper advertisements, brochures, letters to housing authorities or agencies advising of the availability of affordable housing units and such other materials as prescribed and set forth within the approved affirmative marketing plan. All such filings shall be made periodically as marketing activities are carried out and upon reasonable request of the Township.

(7) The affirmative marketing program shall commence at least 90 days before issuance of either temporary or permanent certificates of occupancy and shall continue until all low- and moderate- income housing units are committed to eligible applicants.

G. Certificates of occupancy. No certificate of occupancy for the rental of a low- or moderate- income unit shall issue until the developer shall have submitted and had approved by the Township Attorney a deed restriction encompassing all the provisions of these regulations. No certificate of occupancy shall issue for rental of a unit unless the Township shall certify that the rental complies with the terms of these regulations. H. Waivers. In the event of a special hardship or in the event that a minor technical modification of these provisions is necessary to effectively implement the policies herein, the Township may waive or modify these regulations relating to occupancy selection, resale prices, rent or rerental prices or income eligibility standards, provided that such waiver or modification is consistent with the intent of these regulations and does not violate any of the requirements of COAH, including all statutes and regulations related thereto. I. Other report requirements. Developers shall submit quarterly reports to the Township detailing the number of low- and moderate-income households who have signed lease agreements, as well as the number who have taken occupancy of lower-income units, including household size, number of bedrooms in the units and the monthly rental charges and utility costs. J. Bedroom distribution.

(1) The low- and moderate-income housing component in the AHD No. 1 District must meet the following bedroom distribution requirements:

(a) At a minimum, 35% of all low- and moderate-income units shall be two-bedroom units.

(b) At a minimum, 15% of all low- and moderate-income units shall be three-bedroom units.

(c) No more than 20% of all low- and moderate-income units may be efficiency units.

(2) In the AHD No. 1 District (senior citizen rental units), the Township has requested and has received a grant of waiver by COAH pursuant to N.J.A.C. 5:92-13.1 of the bedroom distribution set forth in N.J.A.C. 5:92-14.1.

K. Aesthetics. The lower-income housing units shall be designed and constructed in such a manner that they are in substantial visual and aesthetic conformance with and complementary to other housing units in the section, project and tract.

L. Interspersal. Low-income units shall be interspersed with similar-type housing throughout the section wherein which that housing type is to be located.

M. The affirmative marketing of affordable housing units shall be in accordance with the regulations of the Council on Affordable Housing pursuant to N.J.A.C. 5:94 et seq. and the New Jersey Uniform Housing Affordability Controls pursuant to N.J.A.C. 5:80-26 et seq. [Amended 9-13-2005 by Ord. No. 2005:25]

**Webmasters Note: The previous section has been amended as per Ordinance No. 2005:25.