HomeMy Public PortalAboutr 97:204 No. 97-204 Dale of Adop0on_ ~ 19, 1997
RESOLUTION APPROVING PROJECT PLAN
AND AUTHORIZING FORWARDING TO NEW
HOUSING AND MORTGAGE FINANCE AGENCY
WHEREAS, the Borough of Carteret (the "Borough") is in the
process of negotiating a regional contribution agreement ('RCA")
with the Township of East Amwell (the "Township"); and
WHEREAS, in contemplation of successfully concluding an RCA
with the Township and in view of the July 7, 1997 deadline facing the
Township, the Borough has prepared a project plan in connection wth
the RCA; and
WHEREAS, the Borough wishes to forward the proposed project
plan to the New Jersey Housing and Mortgage Finance Agency
CFMHA").
NOW, THEREFORE, BE IT RESOLVED as follows:
1 .) The attached proposed proiect plan in connection with the
contemplated RCA with the Township is hereby approved.
2.) The Director of Economic Developmem is authorized to forward
said project plan to the FMHA.
Adopted this 19th day of June, 1997 and
certified as a true copy of the original
on June 20, 1997.
KATHLEEN M. BARNEY
Municipal Clerk
RECORD OF COUNCIl. VOTE
B~ALO~C~UK A~ FfiZ~,A~
FA~'ACE ~
~-~ X - Indicate Vote AB - Absent NV Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of Ihe Municipal Council
~ June 19~ 1997
"[" 'CLERK
REGIONAl,, CONTRIBUTION AGREEMENTS
APPLICATION FOR PROJECT PLAN REVIEW
I. GENERAL INFORMATION
A. "Receiving Municipality: CARTERET County: MIDDLESEX
PATRICIA L. HOLDEN
(Contact Person)
61 COOKE AVENUE
(Address)
CARTERET~ NJ 07008
(City, State, Zip Code)
(908) 541-3835
(Telephone)
B. "Sending Municipality: gAST AMWgLL County: HUNTERDON
RICHARD DIETERLY ESQ.
(Contact Person)
1318 ROUTE 31
(Address)
CLINTON, NJ 08809-4001
( iiLy.~.S~!e., Z. ipr.Code)
(Telephone)
C. Administrative Agency(s) implementing the Program
CARTERET COMMUNITY DEVELOPMENT OFFICE
(Name of Agency)
61 COOKE AVENUE
(Address)
CARTERET~ NJ 07008
(City, State, Zip Code)
(Name of Agency)
(Address)
(City, State, Zip Code)
II. pROJECT ADMINISTRATION
A. Describe, in detai{, the proposed housing plan. Narrative should include a project
description and a description of all phases of implementation. If new construction
or vacant building rehabilitation, indicate who will be responsible for site
acquisition, arranging financing, preparing plans and specifications, securing
contractors, monitoring construction, marketing and tenant selection. If the
rehabilitation of occupied units is involved, explain how units will be selected; who
will prepare work write-ups and cost estimates; how contractors will be selected,
construction monitored and payments made.
B. Describe the expenence of all administrative agencies designated to coordinate,
participate in or oversee implementation of the proposed housing plan. Give a
brief description of each agency's expertise, staff level, past experience and
involvement in past housing projects. Cite up to three past projects of a
comparable nature indicating degree of involvement, project addresses, number
of units, scope of work and development costs. If the administration of the
program will be sub-contracted to a non-governmental entity, describe the
consultant's expertise and related experience in detail as outlined above.
GENERAL HOUSING INFORMATION
A. Name of Project: CARTERET NEIGHBORHOOD REHAB PROGRAM III
B. Type of Housing: List the total number of units in each category as applicable.
Number of Units
Type of Housing Low Moderate "Market" * ; Total
Income Income (not
covered by
RCA)
New Construction (For Sale)
New Construction (Rental)
Rehabilitation (Vacant)
Indicate by "P" or "R" whether
for purchase or rent
Rehabilitation (Renter-
occupied)
Rehabilitation(Owner-
occupied) UP TO 10 LTp TO 10 ~P TO 20
· RCA funds may no~ be expended on market units either directly or indirectly.
2
C. Housing Construction:
Conventional Modular ~ Rehabilitation
(If the housing proposal incorporates a combination of conventional and modular
construction, please clarify.)
D. Building Type:
# of Stories # of Buildings # of Units
Hi-Rise
Mid-Rise
Garden Style
Townhouse Style
Row Houses
Single-Detached
Semi-Detached (2
family/or duplex1
IV. I F (For each building or separate component)
A. Site Location:
Street Location: SCATTERED SITE
Block: Lot
B. Describe the status of "site control":
DEED
Indicate the availability of utilities:
Yes No Distance from Site Public or Private
Water
Sewer
Gas
Electrical
Other
3
V. ~ (Occupied Rehabilitation only)
Please give an indication below of the potential pool of eligible Owner and/or renter
occupied units that will be available for rehabilitation in your targeted area or I~uilding(s).
The information may be obtained through a neighbo~ood survey or census data at the
block group or enumeration district level (See STF-3, 1980 Census).
Please note that if the housing proposal is based upon the rehabilitation of a renter-
occuoied ~roiect consisting of multiple dwelling units in one or more buildings, an actual
survey of tenants is required, to vedfy a pool of eligible occupants.
Income Category Number of Households
VI. FUNDING FOR HOUSING (For each building or separate component)
-~ A. Pnvate Capital (List all private loan funds and/or equity contributions)
Source Description/Terms Amount
Total
B. Put~lic Capital (RCA contributions; local, state and federal grants or loans)
Source Description/Terms Amount
fi~6 ~nn nnn_~nn nnn
CD~C 100,000.OO
WEATHERIZATION & COUN FY LOANS 250,000.00
Total 450,000-750,000,00
4
VI. DEVELOPMENT COSTS (For each building or separate component)
A. Summarize the development costs of each project or building. If the scattered
site rehabilitation of a number of 1-4 family buildings is proposed, then completed
for one typical building.
Land Acquisition Costs $ ($ /DU)
Off-site Improvements $. ($ /DU)
Construction or Rehab Costs $. ($ /DU)
Professional Fees
Architect
Engineer
Attorney
Consultants
Supervisor $. ($ /DU)
Carrying and Financing Charges
Interest
Fees
R.E. Taxes
Insurance
Building Permits
Utility Fees
Title and Recording
Other $. ($. /DU)
Marketing $ ($. /DU)
Contingency $ ($. /DU)
Total $ ($. /DU)
Less Equity (if any) $
Less Subsidy $
Less Subsidy $
Less RCA Contributions $ ($. /DU)
Balance $
VII. PURCHASE HOUSING - SALES PRICES:
For all units which will be marketed to prospective Iow- and moderate-income purchasers,
provide the information noted below for each unit type. See the supplemental instructions
for details on filling out this chart.
(1) (2) (3) (4) (5) (6)
(a) (b) (a) I (b)
Mortgage Monthly
# of Square # of Projected Amount Mortgage
Bedrooms Foot Units Sales Price Minimum Down-Payment Payment
%
Estimated Estimated # of Median
Taxes and Condominium Persons income for
Insurance Common Total Necessary Per Household Range of
Charges ;~.I.T.I.** Income Household Size Affordability
Indicate the common charges for market units $.
Tax Rate $. per. Evaluation Ratio
*Monthly mortgage payments will include principal, interest, and mortgage insurance
**Principal, interest, property taxes and hazard insurance and common charges.
VIII. RENTAL HOUSING - INCOME AND EXPENSES
Ooeratim3 Exoenses
Mortgage Principal and Interest ( %) $
Mortgage Servicing Fee $
Property Management Fee $
Maintenance $
Administration $
Repairs $
Contract Expenses $
Payroll $
Reserves $
Return on Equity $
Property Taxes $
Property Insurance $
Project Paid Utilities $
Vacancy Loss Allowance $
Other: Specify $
Total $
*See supplemental instructions for detailed breakdowns of the types of goods and services
typically considered to be included in budgeting expenses for maintenance and repairs, etc.
VIII. SUPPLEMENTAL INFORMATION
A. Government Assistance: Is any other form of assistance (tax abatement, direct
grants or other assistance) available from the federal, state or local government to
help promote the affordable housing units? Please descdbe in detail if not
explained under funding:
B. Will this project be submitted to the Department of Community Affairs (DCA) for
grant under the NP Balanced Housing Program?
Yes ~ No __ Requested Amount $.
Status of Architectural Plans Status of Site Ptal3s
None None
Conceptual Only Conceptual Only
Preliminary Preliminary
Final Final
Local & State Approvals
A. Local
(1) Is the site zoned to permit the proposed use? Yes No
(2) If not, has variance application been submitted: Yes No
(3) Date of hearing (if scheduled)
(4) Has subdivision approval been granted or scheduled: Yes No
(5) Is site plan approval required: Yes No
(If scattered sites, or a phased project, give information on each site/phase).
(6) If item (5) is yes, has Preliminary Approval been granted or scheduled?
Yes No Date of Hearing. Date of Approval__
(7) Has final approval been granted or scheduled:
Yes No__ Date of Hearing. Date of Approval
B. State
Please indicate which of the following are required, the date application was filed and, if
granted, the date of approval.
Date of Date of
Yes No Application Approval
Department of Environmental Protection
Pinelands Commission
CAFRA
P.R.E.D.
Other
A. Issued __ Number of Units
B. Will be issued on or about Number of Units ~
Construction Schedule of Low/Mod Units (Modify as necessary for phased proposals)
A. Has site work commenced? Yes ~ No
B. Proposed starting date:
C. Indicate proposed schedule of the following improvements:
Month Year
Site Grading
Site Improvements
Foundations
Framing or equivalent
]0
D. Completion is scheduled for:
Number of Low/Mod Units Date
This information contained in this application, together with all supporting documentation, has
been reviewed by duly authorized municipal officials or their representatives of the receiving
municipality: ~ARTFR~T
(name of town/city)
I understand that the Council on Affordable Housing and the NJHMFA may rely on the
information contained herein in making their determination as to the feasibility of the proposed
housing. ~
Name of Official of t(3~receiving municipality
HA¥OR
Title
BOROUGH OF CARTERET
(City or Town)
PETER J. SICA
Signature
(This page must be executed; unexecuted forms will be returned to the municipality.)
SUPPLEMENTAL INSTRUCTIONS
REGIONAL CONTRIBUTION AGREEMENTS
The following information is provided to assist you in completing the necessary forms.
SECTION VI - PURCHASE HOUSING - SALES PRICES
A completed example of this chart is provided below for your convenience. If you have any
questions about the preparation of this schedule, please feel free to call the NJHMFA.
11
~amole
(1) (2) (3) (4) (5) (6)
(a) (b) (a) (b)
Square Projected Min. Mortgage Monthly
# ER Foot # Units ~ Down-Pay. Amount Mtn. Pay,
2 700 10 $35.000 10% $3.500 $31.500 $316
(7) (8) (9) (10) (11) (12) (13)
Estimated Est, Condo No. Persons Median Range
Taxes and Common Total Nec. Per Income for of
Insult. Charaes P.I.T.I. Income Household Hshld.Size Afford.
$135 ~75 $526 $22.543 3 $34.560 65.2%
Column ~1) Indicate the number of bedrooms for each given variety of unit, i.e., 2 bedroom units
or 3 bedroom units, indicate the square footage of the unit.
~ Indicate the total number of units containing the indicated number of bedrooms. If
unit size varies even though the number of bedrooms per unit is the same, show them on
different lines and indicate how many units are provided for each catego~.
Column (3~ Indicate the projected sales pdce of the unit type, The projected sales pdce should
be the actual price of the home after any subsidies have been applied.
Column (4~ Insert the down payment amount. Council Rules require financing at a 90% loan to
value ratio (a 10% down payment), Indicate in Column 4 (a) what percentage of the sales pdce
is required and in Column 4 (b) what amount of money that represents.
Column (5~ Insert the mortgage amount. To calculate the mortgage amount, subtract Column 4
(b) from Column 3.
Example: $35,000
- 3.500
$31,500
(~olumn ~6~ Calculate the monthly mortgage payment based upon the type of financing being
utilized. If conventional financing is going to be required when the units are sold, contact a local
lender to determine rates and terms. Using their monthly "debt service factor'' calculate the
required payment based upon the mortnaee amount in Column 5, not based on the sales price.
]2
Please note that conventional lenders generally require mortgage insurance on loans in excess
of an 80% loan to value ratio. The monthly cost of this premium is included in the monthly
mortgage payment.
If HMFA financing is being requested, calculate the monthly mortgage payment by multiplying
$9.52 for each $1,000 of mortgage amount. This represents the feasibility calculation of a fixed
rate mortgage for 30 years at a rate of 11%.
Example: $31,500 (mortgage amount)
Per $1,000 = 31.50
31.50 x $9.52 = $299.88
The monthly mortgage payment includes principal, interest and the mortgage insurance
premium. To calculate the premium, multiply each $1,00 of mortgage amount by $.50 (31.50x.50
= $15.75) and add the result to $299.88. Insert the total of $310.59 (rounded to $316 in Column
(6).
Column (7~ Calculate estimated taxes for the property by multiplying the municipal tax rate by
sales price (per $100 or per $1,000 as applicable) and adjusting same by the community's
equalization ratio.
Calculate the estimated property insurance by using the chart below. Be sure to estimate the
insurance cost based upon the actual replacement cost of the unit, not the sales price.
~ Charae
$30,000 - $40,000 $10.00 per month
$40,000 - $60,000 $15.00 per month
$60,000 - $100,000 $25.00 per month
Add the monthly taxes and insurance and insert the sum in Column (7).
Column (8~ Insert the estimated common charges which will be charged to the owner if the
development involves condominium ownership. Otherwise leave this column blank.
Column (9~ Calculate total principal, interest, taxes, insurance and common charges (P.I.T.I.) by
adding columns (6), (7) and (8) together.
Example: $526 x 12 = $6,312 - .28 = $22,543 (rounded)
Column (11) See the chart on page 5, affordability by household size and bedroom mix, and
insert the appropriate number.
_C_.9~=~3Q_~ See the chart entitled Median Income by COUNTY and enter the income for the
correct household size.
Column (13~ Calculate range of affordabitity by dividing column (10) by column (12).
Example: $22,329 - 34,460 = .65228 or 65.2% rounded off
]3
Therefore 65.2% would be inserted in column (13). This means that prospective homebuyers
having a gross family income of at least 65.2% of median will be able to afford to purchase the
unit after the requisite down-payment listed in column (4). List your answer for each unit type in
column (13).
SECTION VII - RENTAL HOUSING
Columns (1~. (2~. and (3~: Indicate the number of units with the same square footage and
number of bedrooms having the same monthly rent (e.g. 10 units, each having 800 sq. ft. and 2
bedrooms or 25 units, each having 850 sq. ft. and 3 bedrooms).
Column (4): Indicate the number of persons which can occupy the unit (by bedroom distribution)
according to the chart on page 5 of these instructions.
Column (5~: Indicate the monthly rent which will be charged for the unit.
Cql~rnn (6~: Multiply column (1) by column (5) to obtain the total monthly rent for all like units.
Column (7~: If the rent includes all utilities, this column should be left blank. If any utilities will be
separately metered and billed individually to the tenants, the estimated expense should be listed
in this space. Under Council Rules, rent, including utilities, can not be greater than 30% of the
gross income of the household size listed in column (4).
(;91~mn (8~: All rental units which are to be counted toward the sending municipality's "fair
share" must be affordable to Iow- and/or moderate-income tenants. Calculate the "range of
affordability" in the following manner.
1. Multiply the monthly rent plus utilities by 12, resulting in the annual housing expense.
2. Divide the result by .3 to determine the income necessary by the tenant and insert the
"dollar amount" in the final column. Divide the income by the median income for the
county in which the project is located to obtain the range of affordability. Show your
answer as a percentage (e.g. $19,457 - $30,720 = .6333 = 63%; this means that
someone earning 63% of median income should be able to afford to rent the unit).
]4
Typic, gal Ooeratino Exoenses For Multifamilv Rental Housino
(For illustrative purposes only)
1. PROJECT PAID UTILITIES
Sewer Charges
Electricity
Gas
Oil
Water
2. MAINTENANCE AND REPAIRS
Masonry
Carpent~J
Plumbing
Electrical
Kitchen Equipment
Elevator
Windows
Vehicles & Equipment
Snow Removal
Grounds & Landscaping
Painting & Decor. Supplied
'-- Small Equipment & Tools
Janitorial Supplied & Tools
HVAC Supplied
Misc. Maintenance Supplied
Other
3, SALARIES AND RELATED CHARGES
~osition # Qf persons Annual Waaes All Benefits
]5
4. ADMINISTRATIVE EXPENSES
Stationary and Supplied
Telephone
Dues and Subscriptions
Postage
Inspection & Other Fees
Advertising
Legal Services
Auditing (Year End)
Social Service Supplies
Bookkeeping, Accounting
Computer Charges
Misc. Admin. Expenses
Other (Specify)
5. MAINTENANCE CONTRACTS
Secudty
Elevator
Rubbish Removal
Heating & AC Maintenance
Grounds, Parking & Landscaping
Painting & Decorating
Exterminating
Other Maintenance Contracts
]6