N.J. Admin. Code § Tit. 5, ch. 80, subch. 26, app E

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Current through Register Vol. 56, No. 24, December 18, 2024

Appendix E

MANDATORY DEED RESTRICTION FOR RENTAL PROJECTS

Deed Restriction

To State Regulated Multi-Family Rental Property

With Covenants Restricting Rentals,

Conveyance and Improvements

And Requiring Notice of Foreclosure and Bankruptcy

THIS DEED RESTRICTION, entered into as of this the ... day of ......., 20..., by and between the [Administrative Agent] ("Administrative Agent"), and ...... a New Jersey [Corporation/Partnership/Limited Partnership]having offices at ...... the developer/sponsor (the "Owner") of a residential low-or moderate-income rental project subsidized by the State Of New Jersey (the "State") in cooperation with the Administrative Agent, under the [Name of Program] (the "Project"):

WITNESSETH

Article 1. Consideration

In consideration of the subsidies received for the Project, the Owner hereby agrees to abide by the covenants, terms and conditions set forth in this Deed restriction, with respect to the land and improvements more specifically described in Article 2, hereof (the Property).

Article 2. Description of Property

The Property consists of all of the land, and improvements thereon, that is located in the municipality of ......., County of ......., State of New Jersey, and described more specifically as Block No. ... Lot No. ..., and known by the street address:

.............................

Article 3. Affordable Housing Covenants

The following covenants (the "Covenants") shall run with the land for the period of time (the "Control Period"), determined separately with respect for each dwelling unit, commencing upon the earlier of the date hereof or the date on which the first certified household occupies the unit, and shall and expire as determined under the Uniform Controls, as defined below.

A.	Sale and use of the Property is governed by regulations known
	as the Uniform Housing Affordability Controls, which are found
	in New Jersey Administrative Code at Title 5, chapter 80,
	subchapter 26 (N.J.A.C. 5:80-26.1, et seq, the "Uniform
	Controls").
B.	The Property shall be used solely for the purpose of providing
	rental dwelling units for low-or moderate-income households,
	and no commitment for any such dwelling unit shall be given or
	implied, without exception, to any person who has not been
	certified for that unit in writing by the Administrative Agent.
	So long as any dwelling unit remains within its Control Period,
	sale of the Property must be expressly subject to these Deed
	Restrictions, deeds of conveyance must have these Deed
	Restrictions appended thereto, and no sale of the Property
	shall be lawful, unless approved in advance and in writing by
	the Administrative Agent.
C.	No improvements may be made to the Property that would affect
	the bedroom configuration of any of its dwelling units, and any
	improvements to the Property must be approved in advance and in
	writing by the Administrative Agent.
D.	The Owner shall notify the Administrative Agent and the State
	of any foreclosure actions filed with respect to the Property
	within five (5) business days of service upon Owner.
E.	The Owner shall notify the Administrative Agent and the State
	within three (3) business days of the filing of any petition
	for protection from creditors or reorganization filed by or on
	behalf of the Owner.
Article 4.	Remedies for Breach of Affordable Housing Covenants

A breach of the Covenants will cause irreparable harm to the Administrative Agent, to the State and to the public, in light of the public policies set forth in the New Jersey Fair Housing Act, the Uniform Housing Affordability Control rules found at N.J.A.C. 5:80-26, and the obligation for the provision of low and moderate-income housing.

A.	In the event of a threatened breach of any of the Covenants by the
	Owner, or any successor in interest of the Property, the Administrative
	Agent and the State shall have all remedies provided at law or equity,
	including the right to seek injunctive relief or specific performance.
B.	Upon the occurrence of a breach of any Covenants by the Grantee, or any
	successor in interest or other owner of the Property, the
	Administrative Agent shall have all remedies provided at law or equity
	including but not limited to forfeiture, foreclosure, acceleration of
	all sums due under any mortgage, recouping of any funds from a sale in
	violation of the Covenants, diverting of rent proceeds from illegal
	rentals, injunctive relief to prevent further violation of said
	Covenants, entry on the premises, those provided under Title 5, Chapter
	80, Subchapter 26 of the New Jersey Administrative Code and specific
	performance.

IN WITNESS WHEREOF, the Administrative Agent and the Owner have executed this Deed Restriction in triplicate as of the date first above written.

[THE ADMINISTRATIVE AGENT]

BY:

__________________________

xxxxxxxxxxxxx

Title

[THE OWNER]

BY:

__________________________

xxxxxxxxxxxxx

Title

APPROVED BYTHE STATE OF NEW JERSEY

BY ______________________________

xxxxxxxxxxxxx

Title

ACKNOWLEDGEMENTS

On this the day ... of ......., 20... before me came ......., to me known and known to me to be the ...... of the Department of Community Affairs of the State of New Jersey, who states that (s)he has signed said Agreement on behalf of said State for the purposes stated therein.

.......................................

NOTARY PUBLIC

On this the ... day of ......., 20... before me came ...... known and known to me to be ...... of ......., the municipality identified as such in the foregoing Agreement, who states that (s)he is duly authorized to execute said Agreement on behalf of said Municipality, and that (s)he has so executed the foregoing Agreement for the purposes stated therein

.......................................

NOTARY PUBLIC

N.J. Admin. Code Tit. 5, ch. 80, subch. 26, app E

New Rule, R.2004 d.475, effective 12/20/2004.
See: 36 New Jersey Register 3655(a), 36 New Jersey Register 5713(a).