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.
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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.
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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;
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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
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