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HomeMy Public PortalAboutr 97:089No. 97-89 Dale o1' Adoplion MARCH 6, 1997 APPROVING POLICY AND PROCEDURE MANUAL - RCA AGREEMENT WITH TOWNSHIP OF CRANBURY WHEREAS, the Borough of Carteret has entered into a Regional Contribution Agreement with the Township of Cranbury; and WHEREAS, contractual monies have been received by the Borough of Carteret and preliminary applications are being taken; and WHEREAS, the Council On Affordable Housing has requested the submission of a Council approved Policy and Procedure Manual; and WHEREAS, this manual will outline all related policies and procedures regarding the utilization of the R.C.A. Funds. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of Carteret that the Policy and Procedure Manual authorized by the Community Development Director be submitted to the Council On Affordable Housing for review and approval. Adopted this 6th day of March, 1997 and certified as a tree copy of the original on March 7, 1997. KATHLEEN M. BARNEY, Municipal Clerk RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B. B IALOWARCZUK x FAZEKAS x _DuPONT x FEISGOLD x FAILACE x GOTOWSKI x X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto Sj Adopted al a meeting ol-the Municipal Council MARCH 6, 1997 ~ ' CLERK ~ REGIONAL CONTRIB~TiON AGREEI~EI~ (RCA) BET~E~ ~m~ TO~ISHIP OF ~Y ~A~T ~ T~ ~ROU~ OF ~ O~FC~ ~¥ ~S A~ ~s made on the sSxth day of January, 1997~ by and between the To~sh~p of Cranbury (send~ng municipality) and the Borough of Carteret (rece~vSng municipality). ~ the Fair Housing Act, ~.J.S.A. 52:27D-30[ to -329 at -312, allows two municipalities to onter ~nto a contractual agreement, ~om as a regional c~r~but~on agreement (RCA)~ for the transfer of up to 50 percent of a send~ng munScSpal~ty~s fair share oblSgat~on to a rece~vSng mun~c~palSty w~th~n housSng region; and ~S, both of sa~d mun~c~pal~tSes bel~eTe that tho executSon of th~s RCA w~ll be benefScSal to the resSdents of theSr respective comun~tSes and the housing region; and ~ I~, ~n consideration of tho premises here~n set forth, and the mutual covenants and promises here~n contained, the part,es do by and themselves agree as follows: ~The rece~vSng mun~c~palSty hereby agrees to accept, and the send~ng mun~cSpal~gy agroes ro gransfer 3~ iow and moderate ~ncome un,ts. The send~ng munSc~palSry has a fast share number of s~xty-e~ght and the above number equal to or less than 50 percent of the s~nd~ng mun~cSpal~ty~s fair share oblSgat~on. The recessing mun~cSpal~ty agrees to apply the funds to be paSd to it hereunder so as to create or rehabilitate at least 34 units of low and ~erate income housing by December, 1999. At least half of these units will be affordable to low income households. In the case of scattered site rehabilitation of occupied units, the receiving community will ensure, as best as practicable, that 50 percent of the rehabilitated units are occupied by low income households. Article 2. SENDING MUNICIPALITY'S RESPONSIBILITIES The sending municipality agrees to pay, and the receiving municipality agrees to accept the sum of $20,000.00 per unit transferred in payments totaling $680,000.00. 2.1. Payments will be made according to the following schedule and in ~ following amounts: Payment Date Amount January 3, 1997 $170,000.00 June 4, 1997 $170,000.00 December 4, 1997 $170,000.00 December 4, 1998 $170,000.00 2.2. The afforestated payments and payment schedule are the responsibility of the sending municipality and will be paid in accordance with the above schedule regardless of the availability or lack of availability of any anticipated source of funding. 2.3. The sending municipality will obtain any and all financing necessary, if required by the Council on Affordable Housing (COAH) to fulfill its obligation to make the payments set forth above to the receiving municipality. 2.4. The parties acknowledge that the sending municipality's payments to the receiving municipality as set forth above include payment on a per unit basis to defray costs of administration as allowed by COAH's rules and other reasonable and necessary expenses, including the cost of infrastructure, i~arred by the receiving municipality in connection with this Agreement and that said amount is within COAH guidelines for such costs. 2.5. The sending municipality must forward the following documents to the receiving municipality's county planning board or agency: 1. Master plan of sending municipality; and 2. Zoning ordinances of sending municipality. If both sender and receiver are in the same county, only a formal review request letter and the RCA project plan need be forwarded. Article 3. RECEI~INRMDNICIPALITY'S RESPONSIBILITIES The receiving municipality will prepare a project plan to implement and achieve the purposes of this Agreement to provide a realistic opportunity for low and moderate income housing within the receiving municipality convenient to employment opportunities which will be consistent with sound regional planning. Such project plan will be submitted to the New Jersey Housing and Mortgage Finance Agency (HMFA), the County Planning Board or agency and COAH for review and approval in accordance with COAH regulations. 3.1. The parties hereto agree that the receiving municipality will submit its project plan to HMFA by December, 1994. 3.2. The receiving municipality will apply to the appropriate agencies for all governmental approvals, whether municipal, county or state, except th~the sending municipality is responsible for obtaining substantive certification of its housing element as provided under the Fair Housing Act. 3.3. The receiving municipality may apply for appropriate grants in aid which may be available. Any monies realized through such grants will not affect the amount of the sending municipality's contribution. -3- 3.4. The funds contributed by the sending municipality will be utilized b~he receiving municipality for rehabilitation, which is an eligible housing activity eligible under COAH's regulations. 3.5. For scattered site rehabilitation of occupied units, the receiving municipality will expend a minimum average of $16,000 per unit for hard costs. 3.6. The receiving municipality will submit all monitoring reports required by COAH in a timely manner. 3.7. The receiving municipality will establish a separate escrow account for all monies received pursuant to the RCA. 3.8. The receiving municipality will enter into a separate agreement with C~'~ that permits COAH to effectively monitor disbursements of the funds received pursuant to the RCA. 3.9. Ail interest generated from the RCA funds and retained by the receiving municipality may only be utilized for an eligible housing activity under COAH's rules and may not be used to exceed the 20 percent cap on administration. 3.10. Any change in the project plan subsequent to approval by HMFA must be reviewed by the executive director of HMFA when requested by COAH, for determination as to whether a new feasibility analysis and approval is required. 3.11. It is agreed that the receiving municipality's obligations pursuant tc his Article are not limited to the above. The receiving municipality agrees that it will complete the project pursuant to this Agreement in accordance with the regulations of COAH. 3.12. The receiving municipality agrees to designate an administrative entity to assure that the applicable affordability controls will be maintained over time. -4- 3.~. The receiving municipality must forward the following documents ~he receiving municipality's county planning board or agency: 1. master plan of receiving municipality; and 2. zoning ordinances of receiving municipality. Article 4. CREDIT TO HOUSING OBLIGATION The receiving municipality agrees taht it will not claim credit toward its own housing obligation for any low or moderate income RCA units, as defined by the Fair Housing Act, but that all such credit will inure to the benefit of the sending municipality. Ail RCA units will be permanently identified in the appropriate records of the receiving municipality as having been rehabilitated or created to meet the fair share housing obligation of the sending n~.~icipality. Article 5. EXCESS FUNDS Transferred funds in excess of the amount necessary to implement this Agreement will be retained and utilized by the receiving municipality for the continued production of iow and moderate income housing, the rehabilitation thereof and/or construction of supporting infrastructure improvements consistent with the regulations of COAH. If the excess funds are utilized by the receiving municipality, they may only be used to produce additional low and/or moderate income units or for a capital expenditure ancillary to or benefitting low and moderate income ~:eholds. Ail interest generated must remain in the housing trust fund until expended on an eligible housing activity. The specific use of excess funds is subject to COAH approval and will require the following: a. a brief description of the project including the number of units; b. total development costs and breakdown of financing; c. amount of funds to be expended; -5- d.' estimated start date; ~ e. projected date of completion; and f. balance of funds in the RCA account(s). Article 6. CONTINGENCIES This Agreement is contingent on successful completion of the following: a. none Article ?. E~FsCTIVE DATE This Agreement is considered a contractual agreement and will become effective upon the grant of substanctive certification by COAH to the housing element and fair share plan of the sending municipality or anytime thereafter. TW'~ Agreement will be executed no later than thirty days after the sending municipality receives substantive certification from COAH as per N.J.S.A. 52: 27D-312(a). IN WIT~IESS WH~gOF, the parties have hereunto set their hands and seals, this month, day and year first above written. ATTEST /J RECEIVING MUNICIPALITY SENDING MUNICIPALITY Prepared: January 1997 d2284v -6-