N.J. Admin. Code § 5:80-26.24
Current through Register Vol. 56, No. 11, June 3, 2024
Section 5:80-26.24 - Seller option on 95/5 units(a) An eligible seller of a 95/5 unit that has been controlled for the period established in 5:93-9.2 who has provided the requisite notice of an intent to sell, may proceed with the sale if no eligible entity as outlined in 5:80-26.19(c) and 26.22 exercises its option to purchase within 90 days.(b) Subject to 5:93-9.9, the seller may elect to: 1. Sell to a certified 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, appended to this subchapter as Appendix B for a period of at least 30 years; or2. Exercise the repayment option and sell to any purchaser at market price, providing that 95 percent of the price differential is paid to the administrative agent, as an instrument of the municipality, at closing.(c) If the sale will be to a qualified low-or moderate-income household, the administrative agent 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 appended to this subchapter as Appendix B.(d) The administrative agent 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 administrative agent may rely on comparable sales data or an appraisal. The administrative agent shall not approve any contract of sale where there is a determination that the sales price does not bear a reasonable relationship to fair market value. The administrative agent shall make a determination within 20 days of receipt of the contract of sale and shall calculate the repayment option payment.(e) The administrative agent shall adopt an appeal procedure by which a seller may submit written documentation requesting the administrative agent 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 determination of the administrative agent appealable under 5:80-26.18.(f) The repayment shall occur at the date of closing and transfer of title for the first non-exempt transaction after the expiration of controls on affordability.(g) The administrative agent shall deposit all repayment proceeds in a housing trust fund (see 5:93-8.15 ) and may be used as per 5:93-8.16. Money deposited in housing trust funds may not be expended until the municipality submits and COAH approves a spending plan (see 5:93-5.1(c) ).N.J. Admin. Code § 5:80-26.24
New Rule, R.2004 d.475, effective 12/20/2004.
See: 36 New Jersey Register 3655(a), 36 New Jersey Register 5713(a).