N.J. Admin. Code § 5:43-1.5

Current through Register Vol. 56, No. 11, June 3, 2024
Section 5:43-1.5 - Definitions

The following words and terms as used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

"Administrative agent" means the entity responsible for enforcing the affordability controls or restricted units created pursuant to 52:27D-301 et seq.

"Affordable" means that the sales price conforms to the standards set forth in 5:80-26.6 and, that the rental price conforms to the standards set forth in 5:80-26.12. Where Federal funding is used in conjunction with Balanced Housing, the Federal program definition of "affordable" shall apply.

"Age-restricted unit" means a housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population where the head of the household is a minimum age of either 62 years, or 55 years and meets the provisions of 42 U.S.C. §§ 3601 et seq., except that due to death, a remaining spouse of less than 55 years of age shall be permitted to continue to reside.

"Alteration" means the rearrangement of any space by the construction of walls or partitions, the addition or elimination of any door or window, the extension or rearrangement of any system, the installation of any additional equipment or fixtures and any work which affects a primary structural component.

"Balanced Housing Units" means those units within a project receiving Balanced Housing funds.

"Cash flow" means the remainder of project revenue minus expenses.

"Certified household" means a household that has been certified by an administrative agent as a low-income household or moderate-income household.

"Community housing development organization (CHDO)" means a private, non-profit organization that serves a specific neighborhood or geographic area, has as a primary purpose the creation of affordable housing, and is in compliance with the requirements set forth in the Federal HOME Program regulations at 24 CFR § 92.2.

"Department" means the Department of Community Affairs.

"Design considerations" mean projects that have been designed to harmonize architecturally with the surrounding buildings and neighborhood. (See chapter Appendix I, incorporated herein by reference, for further details.)

"Division" means the Division of Housing in the Department of Community Affairs.

"Eligible neighborhood" means a neighborhood that is viable, as defined by 52:27D-143 et seq. ( P.L. 1975, c.248), the Maintenance of Viable Neighborhoods Act, a target area or a currently non-viable neighborhood provided that there is in place a strategy that is realistic and financially feasible which will ensure that the neighborhood will be viable within a reasonable time of project completion. Included in any such strategy shall be a plan for ameliorating crime, blight, high vacancy rates and any other factors that might have a negative impact on the long term viability of the neighborhood and a proposed project.

"Expenses" means the sum of all cash expenditures incurred in the operation of a project including:

1. Debt service on superior mortgages;
2. Expenses unpaid but properly accrued; and
3. Payments to the projects reserve accounts.

"Green building strategies" means those strategies that minimize the impact of development on the environment, and enhance the health, safety and well-being of the residents by producing durable, low-maintenance, energy efficient housing and making optimum use of existing infrastructure. (See Chapter Appendix M, incorporated herein by reference, for further details.)

"Home Investment Partnerships Program (HOME)" means the Federal funds allocated by the U.S. Department of Housing and Urban Development (HUD) which are administered by the Department to support the production of affordable housing. Program activity funded by HOME must be consistent with the HUD approved Consolidated Plan for the State of New Jersey.

"Low income census tract" means the median household income is 60 percent or less of the median income for the housing region in which the census tract is located, as determined for a three-person household by the Council on Affordable Housing, in accordance with the latest Federal decennial census.

"Low-income household" means a household whose gross annual income is equal to 50 percent or less of the median income for the housing region as set forth by the Council on Affordable Housing, N.J.A.C. 5:94 Appendix A.

"Low Income Housing Tax Credit (LIHTC)" means the credit, established by Section 42 of the Internal Revenue Code of 1986, 26 U.S.C. § 42, that may be applied against the Federal income tax of persons or associations who or which have invested in certain buildings providing housing for families of low-income. As the housing credit agency for the State of New Jersey, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) allocates these credits to qualified taxpayers and thereafter monitors their compliance with Section 42 of the Code. The rules used by NJHMFA to perform its allocation and monitoring responsibilities are set forth in the Qualified Allocation Plan (QAP). Each year, the Qualified Allocation Plan is published at N.J.A.C. 5:80-33. Two types of tax credits are described in the QAP. Credits issued in connection with buildings financed with the proceeds from tax exempt bonds subject to the volume cap restrictions provided in Section 42(h)(4) of the IRS code are not allocated on a competitive basis and are referred to as "volume cap tax credits." Those credits which are issued in accordance with the State housing credit ceiling, are awarded through competitive cycles described in the QAP, and referred to in the chapter as the "competitive tax credits."

"Market rate units" means housing that may sell at any price determined by a willing seller and a willing buyer.

"Mixed income/use development" means a development which contains both affordable and either market housing units and/or commercial development and, wherein, the permits and approvals for the non-affordable portion of the development are bound by the requirement that the affordable portion also be built.

"Moderate-income household" means a household whose gross annual income is in excess of 50 percent but less than 80 percent of the median income for the housing region, as set forth by the Council on Affordable Housing, N.J.A.C. 5:94 Appendix A.

"Moderate rehabilitation" means the repair, renovation and/or alteration of a unit.

"Neighborhood" means an area which is recognized as a distinct entity by virtue of certain factors, such as: definite boundaries, natural or man-made; history; architecture; facilities which attract people within a certain radius; or a shared sense of identity or social cohesion. This definition is equally applicable to neighborhoods in urban, suburban, and rural communities.

"New unit" means any unit that has been constructed, reconstructed or created through the conversion of a non-residential building within the three years preceding submission of an application, meets all applicable code requirements and has not been occupied since the time of its construction or reconstruction.

"Pilot program" means a trial program of limited duration established by the Commissioner which will further the purpose of the Fair Housing Act and which may require waiver of specific provisions of these rules.

"Preservation" means a subsidy granted to an existing affordable housing project with expiring controls, in order to extend the period of affordability.

"Range of affordability" means the household income, expressed as a percentage of the median income, at which a given unit is affordable.

"Reconstruction" means any project where the extent and nature of the work is such that the work area cannot be occupied while the work is in progress and where a new certificate of occupancy is required before the work area can be reoccupied. Reconstruction may include repair, renovation, alteration or any combination thereof. Reconstruction shall not include projects comprised only of floor finish replacement, painting or wallpapering, or the replacement of equipment or furnishings. Asbestos hazard abatement and lead hazard abatement projects shall not be classified as reconstruction solely because occupancy of the work area is not permitted.

"Rehabilitation" means the repair, renovation, alteration or reconstruction of any building or structure as defined herein and as defined in 5:23-6.3.

"Renovation" means the removal and replacement or covering of existing interior or exterior finish, trim, doors, windows or other materials with new materials that serve the same purpose and do not change the configuration of space. Renovation shall include the replacement of equipment or fixtures.

"Rent" means the gross monthly cost of a rental unit to the tenant, including the rent paid to the landlord, as well as an allowance for tenant-paid utilities computed in accordance with allowances published by the Department for its Section 8 Program. With respect to units in an assisted-living residence, rent does not include charges for food and services.

"Repair" means the restoration to a good or sound condition of materials, systems and/or components that are worn, deteriorated or broken using materials or components identical to or closely similar to the existing.

"Revenue" means the sum of all cash received from project operations, including, but not limited to:

1. Tenant paid rents;
2. Commercial income and/or lease payments;
3. The net proceeds of any insurance payments which are not reinvested in the property; and
4. Any other funds, including reserve accounts which are deemed available for distribution by the owner.

"Single room occupancy unit (SRO)" means a unit within a structure in which households maintain private rooms yet share kitchen and plumbing facilities, central heat and common areas.

"Standard" means a building which has been repaired in whole or in part with Balanced Housing funds and certified by the local construction official or other public official having jurisdiction to be free of code violation in accordance with the standards adopted under the Uniform Construction Code, N.J.A.C. 5:23, and the Section 8 Existing Housing Quality Standards.

"Substandard" means a building which has been certified as substandard by a municipality. The certification must state that health and safety code violations exist and that, in order to abate those code violations, one or more of the following major systems must be replaced or extensively repaired: roof, electrical, plumbing, sanitary plumbing, heating or load bearing structural systems.

"System" means the primary structural, mechanical, plumbing, electrical, fire protection, or occupant service components of a building including any equipment, fixtures, connections, conduits, wires, pipes, ducts, as well as any associated sensors, controls, distribution or safety elements.

"Uniform Housing Affordability Controls" or "UHAC," found at N.J.A.C. 5:80-26, regulates the means, methods, and duration to preserve the affordability of law and moderate income units created under the New Jersey Fair Housing Act (52:27D-301 et seq.).

"Urban Aid Municipality" means any municipality eligible for Balanced Housing funding in accordance with 5:43-1.2(b)6.

N.J. Admin. Code § 5:43-1.5

Amended by R.1992 d.144, effective 4/6/1992.
See: 23 N.J.R. 1075(a), 24 N.J.R. 1385(a).
Definitions for affordable, balanced housing units, Division, eligible household, eligible neighborhood, equity, moderate rehabilitation, neighborhood, new unit, physical value, range of affordability, senior citizen, single room occupancy (SRO), substandard, and substantial rehabilitation added; housing region deleted; low and moderate income households amended.
Amended by R.1995 d.339, effective 6/19/1995.
See: 27 N.J.R. 1508(a), 27 N.J.R. 2385(a).
Added the definition of "Urban Aid Municipality".
Amended by R.1995 d.594, effective 11/20/1995.
See: 27 N.J.R. 3256(a), 27 N.J.R. 4698(a).
Recodified from 5:14-1.4 and amended by R.1996 d.226, effective 5/20/1996.
See: 28 N.J.R. 6(a), 28 N.J.R. 2573(a).
Former section, "Waiver", recodified to 5:14-1.6.
Amended by R.1998 d.438, effective 9/8/1998.
See: 30 N.J.R. 1880(a), 30 N.J.R. 3239(b).
Inserted "Alteration", "Reconstruction", "Rehabilitation", "Renovation", "Repair" and "System"; rewrote "Eligible neighborhood" and "Moderate rehabilitation"; in "New unit", substituted references to reconstruction for references to substantial rehabilitation; and deleted "Physical value" and "Substantial rehabilitation".
Amended by R.2002 d.325, effective 10/7/2002.
See: 33 N.J.R. 3261(a), 34 N.J.R. 3500(a).
In "Affordable", inserted "and a market rate of interest" following "purchase price" and amended the N.J.A.C. reference; added "Cash flow", "Design considerations", "Distressed urban municipality", "Energy efficient housing unit", "Expenses", "Low Income Housing Tax Credit (LIHTC)", "Mixed income/use development", "Revenue", "Standard" and "Sustainable development strategies"; rewrote "Substandard".
Amended by R.2007 d.202, effective 7/2/2007.
See: 38 N.J.R. 3711(a), 39 N.J.R. 2517(a).
Deleted definitions "Adjusted rent", "Affordable housing agreement", "Applicant household", "Assessments", "Base price", "Base rent", "Closing costs", "Distressed urban municipality", "Eligible Household", "Energy efficient housing unit", "First money mortgagee", "Foreclosure", "Gross annual income", "Gross rent", "Household", "Index", "Owner", "Price Differential", "Primary Residence", "Purchaser", "Renter", "Repayment lien", "Resale price", "Senior Citizen", "Sustainable development strategies", and "Target areas"; added definitions "Administrative agent", "Age-restricted unit", "Community housing development organization (CHDO)", "Green building strategies", "Home Investment Partnerships Program (HOME)", "Low income census tract", "Market rate units", "Preservation", "Rent" and "Uniform Housing Affordability Controls"; rewrote definitions "Affordable", "Balanced Housing Units" and "Certified household"; in definition "Division", deleted "and Community Resources" following "Housing"; and substituted definition "Low-income household" for definition "Low income household" and definition "Moderate-income household" for definition "Moderate income household".