Ordinance No. 03-20

Introduced: May 21, 2020
Public Hearing: June 25, 2020
Status: Adopted

An Ordinance Amending Section 15-90, Administration and Enforcement, of the Land Development Ordinance of the Township of Randolph by the Addition of Section 15-90.10, Enforcement of Affordable Housing Regulations

WHEREAS, New Jersey courts have held that municipalities in the State of New Jersey have a constitutional obligation to provide a realistic opportunity for the construction of their fair share of the region’s low and moderate income housing needs; and

WHEREAS, numerous affordable housing units have been created in the Township of Randolph (“Township”) in satisfaction of the Township’s prior round affordable housing obligation and in partial satisfaction of the Township’s third round affordable housing obligation; and

WHEREAS, the Township has adopted regulations governing affordable housing units that have been created in the Township; and

WHEREAS, the Township desires to amend and supplement the Land Development Ordinance of the Township of Randolph, by the addition of Section 15-90.10, Enforcement of Affordable Housing Regulations, regarding the enforcement options available to the Township upon the violation of the regulations applicable to the affordable housing units located in the Township.

NOW, THEREFORE, BE IT ORDAINED, by the Governing Body of the Township of Randolph, County of Morris, State of New Jersey, as follows:

SECTION ONE. Section 15-90, Administration and Enforcement, of the Land Development Ordinance of the Township of Randolph, Morris County, New Jersey is hereby amended and supplemented by the addition of the following:

Sec. 15-90.10 Enforcement of Affordable Housing Regulations

1. Upon the occurrence of a breach of any of the regulations governing an affordable unit by an Owner, Developer or Tenant, the municipality shall have all remedies provided at law or equity, including but not limited to foreclosure, tenant eviction, a requirement for household recertification, acceleration of all sums due under a mortgage, recuperation of any funds from a sale in violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance.
2. After providing written notice of a violation to an Owner, Developer or Tenant of a very-low, low or moderate-income unit and advising the Owner, Developer or Tenant of the penalties for such violations, the municipality may take the following action(s) against the Owner, Developer or Tenant for any violation that remains uncured for a period of 60 days after service of the written notice:
   1. The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation or violations of the regulations governing the affordable housing unit. If the Owner, Developer or Tenant is adjudged by the Court to have violated any provision of the regulations governing affordable housing units, the Owner, Developer or Tenant shall be subject to one or more of the following penalties, at the discretion of the Court:
      1. fine of not more than $500.00 per day or imprisonment for a period not to exceed 90 days, or both, provided that each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not a continuation of the initial offense;
      2. In the case of an Owner who has rented a very-low, low or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Township of Randolph Affordable Housing Trust Fund of the gross amount of rent illegally collected;
      3. In the case of an Owner who has rented a very-low, low or moderate-income unit in violation of the regulations governing affordable housing units, payment of an innocent tenant’s reasonable relocation costs, as determined by the Court.
   2. The municipality may file a court action in the Superior Court seeking a judgment that would result in the termination of the Owner’s equity or other interest in the unit, in the nature of a mortgage foreclosure. Any such 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 very-low, low or moderate-income unit.
      1. The judgment shall be enforceable, at the option of the municipality, by means of an execution sale by the Sheriff, at which time the very-low, 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 municipality, including attorney’s fees. The violating Owner shall have his right to possession terminated as well as his title conveyed pursuant to the Sheriffs 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 very-low, low- and moderate-income unit. The excess, if any, shall be applied to reimburse the municipality 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 municipality in full as aforesaid, the violating Owner shall be personally responsible for the full extent of such deficiency, in addition to any and all costs incurred by the municipality 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 municipality 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 municipality 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 municipality. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the municipality, whether such balance shall be paid to the Owner or forfeited to the municipality.
      3. Foreclosure by the municipality due to violation of the regulations governing affordable housing units shall not extinguish the restrictions of the regulations governing affordable housing units as the same apply to the very-low, low- and moderate-income unit. Title shall be conveyed to the purchaser at the Sheriff’s sale, subject to the restrictions and provisions of the regulations governing the affordable housing unit. 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 Sheriffs sale shall not be entitled to any right of redemption.
      4. 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 municipality may acquire title to the very-low, 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 very-low, low-and moderate-income unit could have been sold under the terms of the regulations governing affordable housing units. This excess shall be treated in the same manner as the excess which would have been realized from an actual sale as previously described.
      5. Failure of the very-low, low and moderate-income unit to be either sold at the Sheriff’s sale or acquired by the municipality shall obligate the Owner to accept an offer to purchase from any qualified purchaser which may be referred to the Owner by the municipality, with such offer to purchase being equal to the maximum resale price of the very-low, low and moderate income unit as permitted by the regulations governing affordable housing units.
      6. The Owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions governing affordable housing units until such time as title is conveyed from the Owner.

SECTION TWO. All ordinances or parts of ordinances in conflict or inconsistent with any part of this Ordinance are hereby repealed to the extent that they are in such conflict or inconsistent.

SECTION THREE. This Ordinance may be renumbered for codification purposes.

SECTION FOUR. In the event that any section, part or provision of this Ordinance shall be held to be unenforceable or invalid by any court, such holding shall not affect the validity of this Ordinance as a whole, or any part thereof, other than the part so held unenforceable or invalid.

SECTION FIVE. This Ordinance shall take effect 20 days after passage and publication as provided by law.

ATTEST

_____________________________
Donna Marie Luciani, Township Clerk

TOWNSHIP OF RANDOLPH

_____________________________
Christine Carey, Mayor

LEGAL NOTICE
TOWNSHIP OF RANDOLPH, COUNTY OF MORRIS
ORDINANCE NO. 03-20

Notice is hereby given that an Ordinance entitled “An Ordinance Amending Sections 15-90, Administration and Enforcement, of the Land Development Ordinance of the Township of Randolph by the Addition of Section 15-90.10, Enforcement of Affordable Housing Regulations ” was submitted in writing at a regular meeting of the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, held on May 21, 2020 and was introduced, read by title and passed on first reading. A Statement of Purpose of the Ordinance is contained below. The Governing Body of the Township of Randolph will further consider the Ordinance for second reading and final passage thereof at their regular meeting to be held on June 25, 2020 at 5 p.m. prevailing time, at the Municipal Building, 502 Millbrook Avenue, Randolph, New Jersey 07869, at which time and place a public hearing will be heard thereon by the Governing Body and all parties in interest and citizens shall have an opportunity to be heard concerning said Ordinance.

Statement of Purpose of Ordinance

The purpose of the above Ordinance is to amend and supplement the Land Development Ordinance of the Township of Randolph, by the addition of Section 15-90.10, Enforcement of Affordable Housing Regulations, regarding the enforcement options available to the Township upon the violation of the regulations applicable to the affordable housing units located in the Township.

A copy of the full Ordinance is available to any member of the general public, without cost, at the Township of Randolph, Municipal Building, Millbrook Avenue, Randolph, New Jersey, at the Office of the Township Clerk, between the hours of 9:00 a.m. and 4:30 p.m.

_____________________________
Donna Marie Luciani, Township Clerk
Township of Randolph
County of Morris, State of New Jersey