HomeMy Public PortalAboutr 96:182 [31lie O[' Adopl[oll_ Jun~ 20; t996
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APPROVING RCA AGREEMENT WITH TOWNSHIP OF READINGTON
AND AUTHORIZING EXECUTION OF SAME
WHEREAS, the Borough of Carteret has been accepted by the Township of
Readington to accept 116 units of its affordable housing units; and
WHEREAS, the Township of Readington has submitted an agreement~consistent
with the Council of Affordable Housing and Requirements;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the
Borough of Carteret hereby approves the Regional Contribution Agreement between
the Township of Readington and the Borough of Carteret for 116 Units in the amount
of $2,320,000.00.
BE IT FURTHER RESOLVED that the Mayor and Borough Clerk are authorized
to execute the aforementioned agreement.
Adopted this 20th day of June, 1996
and certified as a true copy of the
original on June 21, 1996.
KATHLEEN M. BARNEY,
Municipal Clerk
IH~C()IID ()lr COUNCIL VO'I'I~
X - Indicate Vole AB - Absent NV - Nol Voting X()R - Imlicnles V~le Io Overrule Velo
Adopled nl n meeting of Ihe Mmficilml Council June 20, 1996
CiFfIC~ Or
REGIONAL CONTRIBUTION AGREEMENT
PURSUANT TO N.J.S.A. 52:27D-301 ET.SEQ.
BETWEEN
THE TOWNSHIP OF READINGTON(SENDING MUNICIPALITY)
THE BOROUGH OF CARTERET (RECEIVING MUNICIPALITY
This Agreement, made this/,~ day of 9~-~, / ~ ~ ? between the TOWNSHIP
OF READINGTON, a municipal corporation of the State of New Jersey, having an address of
509 Route 523, Whitehouse Station, New Jersey 08889, hereinaker referred to as
"'r~vnship" or "Readington", and the BOROUGH OF CARTERET, a municipal
corporation o£ the State of New Jersey, having an address of 61 Cooke Avenue, Carteret,
New Jersey 07008 (hereinafter referred to as "Borough" or "Carteret".
WHEREAS, the Township of Readington, County of Hunterdon, State of New
Jersey, is obligated under rulings of the Supreme Court of New Jersey in South Burlington
County NAACP v. Mount Laurel, 67 NJ 151 (1975); and South Burlington County NAACP
v. Mount Laurel,1 92 NJ 158 (1983), to provide housing for persons of low and moderate
income; and
WHEREAS, the Fair Housing Act, N.J.S.A. 52:27D-301 et seq. permits the transfer,
through voluntary intermunicipal agreement, of up to flay percent (50%) of a municipality's
low and moderate income housing obligation, as defined therein, to another municipality
within the same region; and
WHEREAS, Township wishes to transfer a portion of its low and moderate income
housing obligation, as defined in the Fair Housing Act, to Borough, and is willing to
contribute to the cost of constructing such housing; and
WHEREAS, Borough wishes to provide additional low and moderate income
housing within its boundaries and will be assisted by the financial contributions of the
Township to construct and/or rehabilitate housing within this range; and
WHEREAS, Township and Borough are located within the same geographic region for
purposes of such transfer; and
- WHEREAS, Borough has a pressing need for rehabilitation of substandard and
dilapidated housing, and new construction to provide adequate housing affordable to low and
moderate income households; and
WHEREAS, Borough has public transportation and employment opportunities
accessible to the housing which is the subject of this Agreement; and
WHEREAS, Township lacks public transportation and has fewer employment
opportunities than Borough;
WHEREAS, the Township and Borough entered into a Memorandum of
U~ '~,rstanding (attached hereto) prior to this Regional Contribution Agreement; and
WHEREAS, prior to signing this agreement, the Township represents that it has
obtained substantive certification, without conditions which would be detrimental to the
performance of this agreement, of its housing element as provided under the Fair Housing Act.
NOW, THEREFORE, in consideration for the exchange of mutual promises, and for
the further consideration recited below, the Township and Borough agree as follows:
ARTICLE 1. TRANSFER OF HOUSING OBLIGATION.
Township will transfer to Borough 116 units of its low and moderate income housing
obligation, as defined in the Fair Housing Act, and agrees to pay Borough TWENTY
THOUSAND ($20,000,00) DOLLARS per unit of housing, according to the payment schedule
set forth in Article 3 below, and Borough agrees to accept that obligation.
Borough proposes to construct and/or rehabilitate 116 units ofhousing. One-half(I/2)
ot ~_e units will be priced within the means of low income families and one-half (1/2) will be
priced within the means of moderate income families, as defined in the Fair Housing Act, such
housing to represent a portion of the fair housing obligation of Readington Township, which is
less than fifty percent (50%) of that obligation.
ARTICLE 2. BOROUGH'S RESPONSIBILITIES.
Borough agrees to take all necessary steps and to act in a diligent maimer to perform in
good faith all appropriate activities of a receiving municipality, pursuant to the Fair Housing
Act and the rules and regulations of the Council on Affordable Housing (COAH) as
promulgated in N.J.A.C. 5:93-1.1 et seq. , to include, but not limited to, the following:
2.1. Borough will develop all project plans required for approval and construction
and/or rehabilitation of the housing units transferred hereunder, in accordance with the
requirements of COAH.
2.2. Borough will apply to the appropriate agencies for all goverranent approvals
required hereunder, whether municipal, County, or State, except that Township is responsible
for fulfilling any conditions required by COAH with respect to the substantive certification of
its housing element as provided under the Fair Housing Act.
2.3. Borough will apply for all financing necessary for its share of the costs of
providing the housing hereunder, provided, however, that Township will remain responsible
for any and all financing necessary to its contribution as set forth in this
Agreement.
_ 2.4. Borough will apply for appropriate grants in aid of construction which may be
available from various sources. Any monies realized through such grants wilI be used to
defray the Borough's cost of construction, and to minimize the price of the housing to the
renters, and will not affect the amount of the Township's contribution.
2.5. When necessary, and if practical, Borough will adopt bonding ordinances and
execute short term notes or other temporary financing instruments to provide for adequate cash
flow during construction of the housing to be constructed hereunder.
2.6. Borough will construct, and/or rehabilitate, any new housing units to be provided
und,~r this Agreement in accordance with applicable state construction standards to rent at
pric~es to qualify them as Iow and moderate income units pursuant to COAH regulations.
2.7. Borough agrees that any new housing constructed and/or rehabilitated hereunder
shall be rented pursuant to COAH regulations, so as to result in occupancy by persons in the
targeted income groups.
2.8. Where project plans submitted hereunder provide for rehabilitation of existing
substandard housing, Borough will select such housing units so as to assure compliance with
applicable regulations regarding income eligibility of occupants.
2.9 The Borough shall keep an annual accounting of the monies expended during the
time of the project plan and shall provide the Township with a copy of said accounting by
December 31st of each year that this agreement is in effect.
2.10 The Borough shall institute affordability controls on all units rehabilitated with
fro._, from this agreement pursuant to N.J.S.A. 5:43-9.
ARTICLE 3. TOWNSHIP'S RESPONSIBILITIES. Township agrees to make
contributions to Borough of TWENTY THOUSAND ($20,000.00) DOLLARS a unit,
transferred to Borough, for a total payment of TWO MILLION THREE HUNDRED
TWENTY THOUSAND AND NO/100 ($2,320,000.00) DOLLARS for 116 units. Such
contributions will be made according to the schedule set forth in Article 3.1 below, which
schedule has been developed and agreed upon by the parties in order to assist Borough in
meeting costs' of land acquisition, development, and construction incurred prior to the
comnletion of the housing planned hereunder. The payments to be made by Township,
therefore, are not related directly to the completion of specific phases of development or
construction.
3.1. Township's contributions for the 116 units will be made as follows:
a. TWENTY PERCENT (20 %) due no later than one (1) year from the date of
Readington Township's substantive certification.
b. TWENTY PERCENT (20%) due no later than two (2) years from the date of
Readington Township's substantive certification.
c. TWENTY PERCENT (20%) due no later than three (3) years from the date of
Readington Township's substantive certification.
d. TWENTY PERCENT (20%) due no later than four (4) years from the date of
Readington Township's substantive certification.
e. TWENTY PERCENT (20%) due no later than five (5) years from the date of
Readington Township's substantive certification.
3.2 Late payments hereunder shall be subject to interest calculated at the prime rate in
effect on the date such payment was due, or the highest rate then in effect on any debt
undertaken by Borough for development hereunder, whichever is less.
3.3 It is understood by the parties that none of the funds contributed by Township to
Borough will be utilized in any fashion which would be considered a loan. The funds will be
utilized to either reduce the cost of the unit, or as a grant to be used for the rehabilitation of
exio*ing units or new construction. The Borough agrees to provide a certificate to the above
effect when Township borrows any monies to fund the Regional Contribution Agreement.
3.4. The payments and payment schedule hereunder, are entirely the obligation of the
Township regardless of whether the same are paid with Township funds or funds contributed
by developers,
3.5. The contribution per unit herein is based on Borough's analysis of estimated cost
elements presented to Township on May 15, 1995, and includes a payment, on a per unit
basis as paid, to defray costs of administration and other expenses imposed on Borough by this
undertaking, said amount being within COAH guidelines for such costs.
3.6. Township will obtain any and ali financing necessary, if same is required, to its
contribution under this Agreement.
ARTICLE 4. TERM OF AGREEMENT. Payments will be completed no later than
fiv, _ ) years from the date of Readington Township's substantive certification. Borough will
take ail necessary steps to satisfy its obligations under this Agreement within six (6) years of
the date of execution. This agreement shall expire six (6) years from the date of execution of
same by all parties.
ARTICLE S. REPORTS. Borough will file semi-annual reports to the Council on
Affordable Housing (COAH) delineating its progress in implementing this Agreement,
pursuant to the requirements of N.J.A.C. 5:93-6.5(a). Borough will provide Township with
copies of such reports and/or any other progress reports required by COAH at the same time it
sends them to COAH.
ARTICLE 6. PROJECT PLAN. The housing to be provided hereunder will be
developed in accordance with the approved project plans filed with COAH. Borough retains
the right to amend said project plans, if necessary, to reflect changed conditions, subject to
approval by COAH and New Jersey Housing & Mortgage Finance Agency (NJHMFA).
Township agrees to accept any changes agreed to by COAH and NJHMFA, provided they do
not adversely affect credits to Township's fair share obligation.
ARTICLE 7. CREDIT TO HOUSING ELEMENT.
Borough agrees that it will not claim credit toward its own housing element as defined by the
Fair Housing Act, for any low or moderate income units constructed pursuant to this
Agreement, but that ail such credit shall inure to the benefit of the Township. Ail housing
constructed pursuant to this Agreement will be permanently identified in the appropriate
rec, _~s of Borough as having been constructed to meet the fair housing obligation of
Readington Township,
ARTICLE 8. STATE AGENCY ACTIONS.
The parties acknowledge that the following actions by agencies of the State of New Jersey are
necessary to implementation of this Agreement, and make this Agreement contingent on their
successful completion.
a. Approval of the Regional Contribution Agreement by the Middlesex County
Planning Board.
b. Project plans for housing hereunder must be submitted to and approved by
NJHMFA.
ARTICLE 9. USE OF SURPLUS FUNDS.
The parties agree that all monies transferred hereunder shall be used to provide 116
units of affordable housing and that, to the extent such monies do not need to be expended to
implement the approved project plan(s), they will be applied to produce additional low and
moderate income housing units, or for a capital expenditure ancillary to production of low
and moderate income housing units, shall be subject to approval of the Council on Affordable
Housing. If COAH does not approve the Borough's plans and there remain additional monies,
then, in that case, such monies shall be returned to Readington Township.
ARTICLE 10. ADDITIONAL BOROUGH RESPONSIBILITIES.
10.1 The Borough will establish a separate interest-bearing escrow account for all
momes received pursuant to the RCA.
10.2 The Borough will enter into a separate agreement with COAH that permits
COAH to effectively monitor disbursements of the funds received pursuant to the RCA.
10.3 The 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.
10.4 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 · ' ether a new feasibility analysis and approval is required.
10.5 It is agreed that the Borough's obligations pursuant to this Article are not
limited to the above. The Borough agrees that it will complete the project pursuant to this
Agreement in accordance with the regulations of COAH.
ARTICLE 11. CORRESPONDENCE AND REPORTS.
Correspondence and reports required to be sent under this agreement shall be directed to the
following:
Township: Vita Mekovetz, Twp. Clerk
Readington Twp. Municipal Bldg.
509 Route 523
Whitehouse Station, N.J. 08889
Borough:
ARTICLE 12. EFFECTIVE DATE.
This Agreement shall become effective upon execution by the Township of Readington and
the Borough of Carteret, said execution to take place within fifteen
(15) business days after substantive certification is granted to the Township by COAH,
pursuant to N.J.A.C. 5:93-6.4(d).
ARTICLE 13. It is understood that Borough's obtaining of COAH
approval of its project plan is of the utmost importance Township, and that Township's
pa~.~ents as specified herein are of utmost importance to Borough.
ARTICLE 14. This agreement has been entered into by appropriate resolutions
passed by each of the governing bodies of the Township and the Borough and both Mayors are
authorized to sign same.
ARTICLE 15. This agreement constitutes the entire agreement between the parties;
any revisions to this agreement must be made in writing and must be signed by both parties.
Further, this agreement shall supersede the Memorandum of Understanding previously signed
by the Borough and the Township and in the event any terms conflict, this agreement shall
goyern.
IN WITNESS WHEREOF the parties have hereunto set their hands and seals the
day and year first above written.
- ATTEST: BOROUGH OF CARTERET
/ ' - ' ' , Clerk~ - Peter J. Sica,' / Mayor
ATTEST: READINGTON TOWNSHIP
Vita Mekovetz, Twp. Clerk Ronald P. Monaco, Mayor
ACKNOWLEDGMENTS
STATE OF NEW JERSEY
COUNTY OF MIDDLESEX
I Certify that on , 199
personally came before me and this person acknowledged under oath, to my satisfaction, that:
(a) this person is the Clerk of the Borough of Carteret, a municipal corporation and body
politic, named in the attached document; (b) this person is the attesting witness to the signing
of this document by the proper officer who is Peter J. Sica, the Mayor of Carteret; (c) this
document was signed and delivered by the Borough as its voluntary act duly authorized by a
proper resolution of its governing body; (d) this person knows the proper seal of the Borough
which was affixed to this document; and (e) this person signed this proof to attest to the truth
of these facts.~ff/"J-~ .-a_~.,
' , Clerk ~
Sigoed and sworn~ to before me
:on~.) , 199
(Notary ~Nic) (seal) PATRI~
NOTARY PUBLIC ~ ~ JERS~
My Commission E~es ~ 22,20~a
Township; (c) ~h~s docume~ was s~g~ed
duly amho[~zed by a propel ~eso[ufio~ o~ ks gowm~g body; (d) [~s pe~so~ ~ows [he p~oper
seal of [~e ~ow~sh~p wh~c~ was affixed [o [h~s document; a~d (e) [h~s pe~so~ s~g~ed Ibis p~oof
Vita Mekove~, Township Clerk
Signed and sworn to before me