N.J. Admin. Code § 5:80-9.14

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

Section 5:80-9.14 - Resident monthly fee increases for low- and/or moderate income-restricted units in assisted living residences (ALRs)

(a) For the purposes of this section, the term "monthly fee" includes charges for rent, meals, and basic services. The Agency shall regulate the monthly fees for all low and moderate income-restricted ALR units. Monthly fees for income-restricted ALR units may not exceed 80 percent of the HUD median income level applicable to that ALR as set forth in the Financing, Deed Restriction, and Regulatory Agreement executed by the housing sponsor and the Agency (applicable HUD median income level). The foregoing shall not apply to units occupied by persons who have insurance and/or another contracted third-party payor.

(b) Sponsors of ALRs may implement increases of monthly fees for the income-restricted ALR units with Agency approval by submitting a written request to the Director of Property Management of the Agency, accompanied by the current tenant income certifications for the income-restricted ALR units, the most recent HUD area median income figures, and the maximum rents corresponding to the area median income figures. The Director of Property Management will review and verify the information contained therein and, if accurate, approve the requested monthly fee increase, up to a maximum of 10 percent for low-income units and 20 percent for moderate-income units, but not to exceed 80 percent of the applicable HUD median income level. Monthly fee increases for non-income restricted ALR units do not require Agency approval.

(c) When calculating the maximum monthly fees for low and/or moderate income-restricted ALR units, housing sponsors shall use the HUD median income level for the area where the ALR is located, adjusted for family size following the formula below:

1. For efficiency or studio units, monthly fees shall be based on a one person household; and

2. For a one bedroom unit, monthly fees shall be based on a one and one-half person household.

(d) Upon approval from the Agency, the housing sponsor shall notify each tenant and/or designated family member, guardian or community agency of the monthly fee increase by mail or hand delivery to each tenant's unit or by personal service. The notice shall include a calculation of how the increase was determined based upon the applicable HUD median income level.

(e) The new monthly fees shall be effective on the first day of the month following one calendar month's notice to the tenants and/or their designated representatives.

N.J. Admin. Code § 5:80-9.14

Amended by 50 N.J.R. 1479(a), effective 7/2/2018

Amended by 51 N.J.R. 409(b), effective 3/18/2019