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NoO 7 -68 Date of Adoption Feb.uu:y 15, 2f.JJ7
A RESOLUTION AUTHORIZING THE EXECUTION OF A REGIONAL
CONTRIBUTION AGREEMENT BETWEEN THE BOROUGH OF CARTERET
AND THE TOWNSHIP OF UNION
WHEREAS, the Township of Union has a fair share obligation to provide housing
opportunities' to households of low and moderate income as established by the New
Jersey Supreme Court and by the New Jersey Fair Housing Act, N.J.S.A. 52:27d-301, et
seq and;
WHEREAS, the Fair Housing Act provides that municipalities within the same region,
as defined by the New Jersey Council on Affordable Housing (COAH), may meet up to
50 percent of that obligation through a regional contribution agreement (RCA), under
which the sending municipality makes a cash payment to another municipality, known as
the receiving municipality, which undertakes to provide low and moderate income
housing which is credited toward the sending municipality's fair share obligation; and
WHEREAS, the Township of Union proposes to transfer 35 units of its fair share
obligation at a cost of $35,000 per unit for payments totaling $1,225,000 in the form of
an RCA as sending municipality with the Borough of Carteret, the receiving
municipality; and
WHEREAS, the Township of Union and the Borough of Carteret are in the same region
(Region #3 - Hunterdon, Middlesex and Somerset counties) as defined by COAH; and
WHEREAS, the Borough of Carteret desires to provide affordable housing for low and
moderate income residents of the region, which action will be furthered by funds made
available through the RCA; and
WHEREAS, the RCA is in the best interests ofthe Borough of Carteret.
NOW THEREFORE, BE IT RESOLVED by the Borough of Carteret Council of the
Borough of Carteret, that the Mayor and Clerk of the Borough of Carteret are hereby
authorized to execute such documents and exhibits and to undertake or direct any and all
such acts as may be necessary to effectuate an RCA between the Borough of Carteret and
the Township of Union.
Adopted this 15th day of February, 2007
and certified as a true copy of the
original on February 16th, 2007.
KATHLEEN M. BARNEY, RMCICMC
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILl\IAN YES NO NY A.B. COUNCILMAN YES NO NY A.B.
BELLINO X NAPTli'C:: X
DIAZ X RIOS X
KRUM X ....y.....n... X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council ~~~~" ,
/ ~ Er("K-@
TEL: (908) 735-8027 Ext. 10
FAX: (908) 735-0591
Municipal Building
Perryville Rd. & Race St.
TOWNSHIP OF UNION
Hunterdon County, State of New Jersey
140 Perryville Road
Hampton, New Jersey 08827
February 13,2007
Carteret Borough Mayor
Municipal Building
61 Cooke Avenue
Carteret, NJ 07008
ARTERET
BOROUGH Of C
fEB 1 A 10m
OffICE Of THE.
MAYOR
RE: UNION TOWNSHIP; HUNTERDON COUNTY
Regional Contribution Agreement and Resolution
Dear Mayor:
Enclosed please find the following:
certified copy of Resolution #2007-33 authorizing the RCA Agreement
2 originals of said Agreement signed by Mayor, Frank Mazza and me.
Please sign the Agreement and return 1 copy of my office.
Should you have any questions, do not hesitate to call.
Very truly yours,
f. ~/itt~
K. ~-;abian, RMC
Township Clerk
Ene.
cc: Mary Beth Lonergan, PP, Clarke/Caton/Hintz
letterhead4
RESOLUTION # 2007-33
TOWNSHIP OF UNION
HUNTERDON COUNTY, NEW JERSEY
A RESOLUTION AUTHORIZING THE EXECUTION OF A REGIONAL CONTRIBUTION
AGREEMENT BETWEEN
THE TOWNSHIP OF UNION AND THE BOROUGH OF CARTERET
WHEREAS, the Township of Union has a fair share obligation to provide housing opportunities
to households of low and moderate income as established by the New Jersey Supreme Court and
by the New Jersey Fair Housing Act, N.J.S.A. 52:27d-301, et seq.; and
WHEREAS, the Fair Housing Act provides that municipalities within the same region, as defined
by the New Jersey Council on Affordable Housing (COAR), may meet up to 50 percent of that
obligation through a regional contribution agreement (RCA), under which the sending
municipality makes a cash payment to another municipality, known as the receiving
municipality, which undertakes to provide low and moderate income housing which is credited
toward the sending municipality's fair share obligation; and
WHEREAS, the Township of Union proposes to transfer a total of 35 units of its fair share
obligation at a cost of $35,000 per unit to address a prior round obligation for a payment totaling
$1,225,000 in the form of an RCA as the sending municipality with the Borough of Carteret, the
receiving municipality; and
WHEREAS, the Township of Union and the Borough of Carteret are in the same region (Region
#3 - Hunterdon, Middlesex and Somerset Counties) as defined by COAR; and
WHEREAS, the Borough of Carteret desires to provide affordable housing for low and moderate
income residents of the region, which action will be furthered by funds made available through
the RCA; and
WHEREAS, the RCA is in the best interests of the Township of Union in helping the Township
satisfy its fair share affordable housing obligation.
NOW THEREFORE, BE IT RESOLVED by the Township Committee of the Township of Union,
that the Mayor and Clerk of the Township of Union are hereby authorized to execute such
documents and exhibits and to undertake or direct any and all such acts as may be necessary to
effectuate an RCA between the Township of Union and the Borough of Carteret.
CERTIFICATION
I certify the attached to be a true copy of a resolution adopted by the Union Township Committee meeting held
on February 7, 2007. ~JJi 4k,~
. J ith Fabian, RMC
Clerk, Township of Union
Witness my.. hand and se,,] o~~shiP
of Union this J3...ttday of ,2007.
SE.AL
resrcacarteret
REGIONAL CONTRIBUTION AGREEMENT (RCA) BETWEEN
THE TOWNSIDP OF UNION; HUNTERDON COUNTY
AND THE BOROUGH OF CARTERET
TillS AGREEMENT is made on the ~h day oflt7l1t~i2007, by and between the Township of Union, Hunterdon
County (sending municipality) and the Borough ofCarteret, Middlesex County (receiving municipality).
WHEREAS, the Fair Housing Act, N.J.S.A. 52:27D-301 to -329 at -312, allows two municipalities to enter into a
contractual agreement, lmown as a regional contribution agreement (RCA), for the transfer of up to 50 percent of a
sending municipality's fair share obligation to a receiving municipality within its housing region; and
WHEREAS, both of said municipalities believe that the execution ofthis RCA will be beneficial to the residents oftheir
respective communities and the housing region; and
NOW THEREFORE, in consideration of the premises herein set forth, and the mutual covenants and promises herein
contained, the parties do by and between themselves agree as follows:
Article 1. TRANSFER OF HOUSING OBLIGATION
The receiving municipality hereby agrees to accept, and the sending municipality agrees to transfer 35 low and moderate-
income units. The sending municipality has a prior round fair share number of78 and the above number combined with
other approved or proposed prior round RCAs is equal to or less than 50 percent of the sending municipality's priorround
fair share obligation. The receiving municipality agrees to apply the funds to be paid to it hereunder so as to create or
rehabilitate at least 35 units oflow and moderate income housing. 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 RESPONSffiILITIES
The sending municipality agrees to pay, and the receiving municipality agrees to accept the sum of $35,000 per unit
transferred to address the prior round obligation of35 units for a payment totaling $1,225,000. Although the RCA is to
address a portion of Union Township's prior round affordable housing obligation, pursuant to NJ.A.C. 5 :94-1.2(d)2.ii,
the per unit transfer amount shall adhere to COAH's third round amount of $35,000 per unit.
2.1. Payment will be made according to the following schedule and in the following amounts:
Payment Schedule
Amount
First payment, 120 days after effective date of this Agreement
Second payment, one year after first payment
Third payment, two years after first payment
$420,000
$420,000
$385,000
Total Payments
$1,225,000
2.2 The fore stated payment and payment schedule are the responsibility of the sending municipality and will
be paid in accordance with the above schedule regardless of any anticipated source of funding, such as developer fees.
2.3 The sending municipality will obtain any and all financing necessary to fulfill its obligation to make the
payments set forth above to the receiving municipality.
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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 the rules of the Council on
Affordable Housing (COAH) and otherreasonable and necessary expenses, including the cost of infrastructure, incurred
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 is responsible for obtaining substantive certification of the amendment to its
housing element and fair share from COAH and approval of this RCA from COAH as provided under the Fair Housing
Act.
Article 3. RECEIVING MUNICIPALITY'S RESPONSffiILITIES
3.1. A receiving municipality may use revenues collected as a result of an RCA for any activity approved by
the Council for addressing the low- and moderate-income obligation. Eligible activities shall include, but are not
necessarily limited to, those activities outlined in NJ.A.C. 5:94-4. Rental obligations required by NJ.A.C. 5:94-4.20(a)
or portions thereof that are transferred to a receiving municipality via an RCA must either create new rental housing units
or meet the criteria for reconstruction as defined in N.J.A.C. 5 :94-1.4. All units constructed or rehabilitated with RCA
funds must conform to COAH regulations and those of the Uniform Housing Affordability Controls as set forth in
N.J.A.C.5:80-26.
3.2. The receiving municipality shall 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 (HMF A), the county planning board or agency
and COAH for review and approval in accordance with COAH regulations.
3.3. The parties hereto agree that the receiving municipality shall submit its project plan to COAH, HMF A
and the County Planning Board by May I, 2007.
3.4. The receiving municipality shall apply to the appropriate agencies for all necessary governmental
approvals, whether municipal, county or state.
3.5. 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.
3.6. The funds contributed by the sending municipality shall be utilized by the receiving municipality for
eligible housing activities under COAH's regulations.
3.7. The receiving municipality agrees to designate an administrative entity to assure that the applicable
affordability controls will be maintained over time.
3.8. Any change in the project plan or in the administration of the program subsequent to approval by
HMF A must be reviewed by the executive director ofHMF A when requested by COAH, for determination as to whether
a new feasibility analysis and approval is required.
3.9. For scattered site rehabilitation of occupied units, the receiving municipality shall expend a minimum of
$12,000 per unit in hard costs to repair/replace a major system(s). After this $12,000 threshold is met, additional repairs
may be undertaken.
3.10. No more than fifteen percent (15%) of the RCA principal shall be expended on administration in the
receiving municipality.
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3.11. The receiving municipality shall submit all monitoring reports required by COAH in a timely manner.
3.12. The receiving municipality shall establish a separate interest-bearing escrow account for all monies
received pursuant to the RCA. This escrow agreement shall permit COAH to effectively monitor disbursements of the
funds received pursuant to the RCA. This account will be monitored on a quarterly basis.
3.13. The receiving municipality shall submit annually to COAH and HMF A its municipal audit, signed by
the mayor, showing the disbursement of all RCA funds.
3.14. All interest generated from the RCA funds and retained by the receiving municipality may only be
utilized for eligible housing activities under COAH's rules or to offset inflation and generally may not be used to exceed
the 15 percent cap on administration.
3.15. The receiving municipality shall annually submit to the HMF A documentation acceptable to agency
staff evidencing that there exists a sufficient number of eligible applicants, projects, and/or units to demonstrate
continued project plan feasibility.
3.16. The receiving municipality shall forward the following documents to its county planning board or
agency and request review and approval:
1. A copy of the Master Plan of the receiving municipality;
2. A copy of the Zoning Ordinances of the receiving municipality; and
3. A copy of the project plan.
3.17. It is agreed that the receiving municipality's obligations pursuant to this 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.
Article 4. CREDIT TO HOUSING OBLIGATION
The receiving municipality agrees that 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 insure to the benefit of the sending
municipality. All 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 obligation of the sending municipality.
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 oflow and moderate income housing and/or the rehabilitation thereof
and/or construction of supporting infrastructure improvements consistent with the regulations ofCOAH.
Excess funds utilized by the receiving municipality may only be used to produce or rehabilitate additional low and/or
moderate income units and/or for a capital expenditure ancillary to or benefiting low and moderate income households
and/or to offset inflation. All interest generated must remain in the escrow account until expended on an eligible housing
activity. The specific use of excess funds is subject to COAH approval and will require the following:
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a. a brief description of the project including the number of units;
b. total development costs, including administration, and breakdown of financing;
c. amount of funds to be expended;
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 upon completion of the following:
a) COAH's approval of this RCA; and
b) COAH's granting of third round substantive certification to Union Township.
Article 7. EFFECTIVE DATE
This Agreement is considered a contractual agreement and will become effective upon approval of this RCA by COAH
and the granting of third round substantive certification by COAH to the third round housing element and fair share plan
of Union Township.
This Agreement will be executed no later than 30 days after Union Township receives third round substantive
certification of its certified plan from COAH as per N.J.S.A. 52:27D-312.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals, this month, day and year first above
written.
ayor
WJf
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~:&:':-17
Towns~mon
By: ~JL
Frank T. Mazza, Mayor
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