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Executive Summary
This document is a Housing Element and Fair Share Plan for the City of Union City, Hudson County, New Jersey, prepared by Heyer, Gruel & Associates and adopted by the Planning Board on September 18, 2017. The plan addresses the municipality's obligation to provide a realistic opportunity for the construction of low- and moderate-income housing, following the New Jersey Supreme Court Decision In re Adoption of N.J.A.C. 5:96 & 5:97 by the N.J. Council on Affordable Housing. The plan outlines the City's approach to meeting its present need obligation and proposes mechanisms for providing affordable housing opportunities.
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--- Document: Fair Share Housing Plan Document ---
HOUSING ELEMENT AND
FAIR SHARE PLAN
City of Union City
Hudson County, New Jersey
June 2017
Adopted by Planning Board September 18, 2017
Prepared by:
Heyer, Gruel & Associates
Community Planning Consultants
236 Broad Street, Red Bank, NJ 07701
(732) 741-2900
City of Union City Housing Element and Fair Share Plan
June 2017
2
HOUSING ELEMENT AND
FAIR SHARE PLAN
City of Union City
Hudson County, New Jersey
June 2017
Adopted by Planning Board September 18, 2017
Prepared by
Heyer, Gruel & Associates
Community Planning Consultants
236 Broad Street, Red Bank, NJ 07701
(732) 741-2900
The original of this report was signed and
Sealed in accordance with N.J.S.A. 45:14A-12.
____________________________________
Susan S. Gruel, P.P. #1955
_____________________________________
Fred Heyer, AICP, P.P. #3581
Contributing content by M. McKinley Mertz, AICP
City of Union City Housing Element and Fair Share Plan
June 2017
3
Table of Contents
PART 1: HOUSING ELEMENT .............................................................................................................................. 4
INTRODUCTION ............................................................................................................................................... 4
PLANNING FOR AFFORDABLE HOUSING .................................................................................................... 5
MUNICIPAL SUMMARY .................................................................................................................................. 7
DEMOGRAPHIC CHARACTERISTICS ............................................................................................................ 8
Population ................................................................................................................................................... 8
Population Composition by Age ............................................................................................................ 8
Households .................................................................................................................................................. 9
Income ....................................................................................................................................................... 11
Poverty Status ........................................................................................................................................... 12
Household Costs ...................................................................................................................................... 13
EXISTING HOUSING CONDITIONS .............................................................................................................. 14
Housing Unit Data .................................................................................................................................... 14
Housing Type and Size ............................................................................................................................ 14
Occupancy .............................................................................................................................................. 15
Housing Values and Contract Rents .................................................................................................... 16
Housing Conditions .................................................................................................................................. 18
EMPLOYMENT DATA .................................................................................................................................... 19
Class of Worker and Occupation ......................................................................................................... 20
Commuting to Work ................................................................................................................................ 21
Covered Employment ............................................................................................................................ 22
Probable Future Employment Opportunities ...................................................................................... 23
PART 2: FAIR SHARE PLAN ............................................................................................................................... 24
INTRODUCTION ............................................................................................................................................. 24
PRESENT NEED ............................................................................................................................................... 25
PRIOR ROUND OBLIGATION (1987-1999) ................................................................................................. 31
ROUND 3 NEED ............................................................................................................................................. 31
SUMMARY OF FAIR SHARE COMPLIANCE ................................................................................................ 32
City of Union City Housing Element and Fair Share Plan
June 2017
4
PART 1: HOUSING ELEMENT
INTRODUCTION
The need to protect and promote affordable housing in New Jersey, the country’s densest state,
has been recognized for decades. In the case of Southern Burlington County NAACP v. the
Township of Mount Laurel, (commonly known as Mount Laurel I), the New Jersey Supreme Court
established the doctrine that developing municipalities in New Jersey have a constitutional
obligation to provide a realistic opportunity for the construction of low and moderate income
housing in their communities. In its Mount Laurel decision, decided on January 20, 1983 (Mount
Laurel II), the Supreme Court expanded the Mount Laurel doctrine by determining that this
constitutional responsibility extended to all municipalities in New Jersey.
In response to the Mount Laurel II decision, the New Jersey Legislature adopted the Fair Housing
Act in 1985 (Chapter 222, Laws Of New Jersey, 1985). The Fair Housing Act established the Council
on Affordable Housing (COAH) as an administrative alternative to the courts. COAH was given
the responsibility of dividing the state into housing regions, determining regional and municipal fair
share affordable housing obligations, and adopting regulations that would establish the guidelines
and approaches that municipalities may use in addressing their affordable housing need.
Low income households are defined as those with incomes no greater than 50 percent of the
median household income, adjusted for household size, of the housing region in which the
municipality is located. Moderate-income households are those with incomes no greater than 80
percent and no less than 50 percent of the median household income, adjusted for household
size, of the housing region.
This housing element and fair share plan for the City of Union City has been prepared, following
the New Jersey Supreme Court Decision decided on March 10, 2015, In re Adoption of N.J.A.C.
5:96 & 5:97 by the N.J. Council on Affordable Housing, 221 N.J. 1 (2015) (“Mount Laurel IV”). In this
decision, the Supreme Court held that since COAH was no longer functioning, trial courts were to
resume their role as the forum of first instance for evaluating municipal compliance with Mount
Laurel obligations, and also established a transitional process for municipalities to seek a
Judgment of Compliance and Repose (“JOR”) in lieu of Substantive Certification from COAH.
The Supreme Court defined two types of municipalities: (i) municipalities that had received Round
3 Substantive Certification under the invalidated 2008 COAH regulations, and (ii) “participating”
City of Union City Housing Element and Fair Share Plan
June 2017
5
municipalities that had subjected themselves to the jurisdiction of COAH and had not yet received
Round 3 Substantive Certification from COAH.
On April 8th, 2009 Union City petitioned COAH for substantive certification and was deemed
complete on April 9th, 2009. The City, however, never received substantive certification because
the Appellate Division deemed the growth share methodology invalid. In response to Mount Laurel
IV, Union City filed a Declaratory Judgment action, along with a motion for temporary immunity,
on July 6, 2015. The City seeks from the Court an affirmative declaration of compliance regarding
all aspects of its affordable housing obligations.
Because of the current uncertainty in the appropriate manner by which to calculate the City’s
obligation, the City and the Fair Share Housing Center (FSHC) agree that a settlement is in the best
interest of the households of need of low and moderate income housing and the City. This Housing
Element and Fair Share Plan effectuates the settlement, which has been approved by the court.
PLANNING FOR AFFORDABLE HOUSING
Pursuant to both the Fair Housing Act and the Municipal Land Use Law (MLUL), municipalities in
New Jersey are required to include a housing element in their master plans. The principal purpose
of the housing element is to describe the specific, intended methods that a municipality plans to
use in order to meet its low and moderate income housing needs. Further, the housing element is
meant to demonstrate the existing zoning or planned zoning changes that will allow for the
provision of adequate capacity to accommodate household and employment growth
projections, to achieve the goal of access to affordable housing for present and future
populations. The statutorily required contents of the housing element are:
a. An inventory of the municipality’s housing stock by age, condition, purchase or rental
value, occupancy characteristics, and type, including the number of units affordable to
low and moderate income households and substandard housing capable of being
rehabilitated;
b. A projection of the municipality’s housing stock, including the probable future construction
of low and moderate income housing, for ten years, taking into account, but not
necessarily limited to, construction permits issued, approvals of applications for
development and probable residential development of lands;
City of Union City Housing Element and Fair Share Plan
June 2017
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c. An analysis of the municipality’s demographic characteristics, including but not
necessarily limited to, household size, income level and age;
d. An analysis of the existing and probable future employment characteristics of the
municipality;
e. A determination of the municipality’s present and prospective fair share for low and
moderate income housing and its capacity to accommodate its present and prospective
housing needs, including its fair share for low and moderate income housing; and
f.
A consideration of the lands that are most appropriate for construction of low and
moderate income housing and of the existing structures most appropriate for conversion
to, or rehabilitation for low and moderate income housing, including a consideration of
lands of developers who have expressed a commitment to provide low and moderate
income housing.
The Council also requires that the Housing Element be adopted by the planning board and
endorsed by the governing body prior to the municipal filing pursuant to N.J.A.C. 5:96-2 or the
municipal petition for substantive certification pursuant to N.J.A.C. 5:96-3.
City of Union City Housing Element and Fair Share Plan
June 2017
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MUNICIPAL SUMMARY
The City of Union City is roughly 1.3 square miles in size and is a “Planning Area 1- Metropolitan” as
defined by the State Development and Redevelopment Plan. The City is bound by West New York
to the north, Weehawken to the east, Hoboken and Jersey City to the south, and North Bergen to
the west. The City is home to the Bergenline Avenue commercial corridor as well as the Bergenline
Avenue Station of the Hudson-Bergen Light Rail.
After experiencing a large growth in population during the 1990s, the population of Union City
remained relatively stagnant between 2000 and 2010, decreasing by 0.9 percent from 67,088
persons to 66,455. The US Census Bureau 2009-2013 American Community Survey estimates a 2013
population of 67,233, an increase of 1.2 percent. The 2010 median age in Union City was 34 years,
which was roughly the same as that of Hudson County’s median age of 34.2 years. The average
household size decreased from 2.92 persons in 2000 to 2.88 persons in 2010.
The housing stock of the City is primarily multi-family dwelling units, and the majority of the housing
stock (54.5%) was built before 1960. According to the guidelines established by COAH, the City of
Union City is located in affordable housing Region 1, a region that consists of Sussex, Bergen,
Hudson, and Passaic Counties. Based on the 2014 COAH Regional Income Limits, the median
income of Region 1 for a four-person household is $90,614, the moderate-income is $74,492, and
low income is $45,307.
Per the agreed upon settlement, Union City has a present need of 1,442 units, a Prior Round
Obligation of 0 units, and a Third Round Obligation of 0 units. The City will address its Present Need
obligation through:
Rehabilitation of 21 units
Development of new affordable units
Continued participation in the City CDBG program and County HOME program.
Aggressive review of sites, which may be “redeveloped” and provide additional
affordable housing opportunities
Union City Housing Authority 456 public housing units and 112 units of veterans housing
The City additionally proposes to continue to address its Present Need Obligation through County
funded rehabilitation programs and through a number of proposed projects.
City of Union City Housing Element and Fair Share Plan
June 2017
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DEMOGRAPHIC CHARACTERISTICS
Population
The population trends experienced in Union City, Hudson County, and the State of New Jersey
from 1930 through 2010 are shown below. There were 66,455 residents in Union City in 2010, which
was a slight decrease of 633 people from 2000. During the 1990s the City experienced its largest
population growth of 15.6 percent. During the same decade Hudson County experienced a 10.1
percent population growth. According to the 2009-2013 American Community Survey, the City is
once again experiencing population growth. While both the City and the County have
experienced small losses and gains in population, the State has seen steady population growth
since 1930.
Population Trends
Year
Union City
Hudson County
New Jersey
Population
Change
Population
Change
Population
Change
Number
Percent
Number Percent
Number
Percent
1930
58,659
-
-
690,730
-
-
4,041,334
-
-
1940
56,173
-2,486
-4.2%
652,040
-38,690
-5.6%
4,160,165
118,831
2.9%
1950
55,537
-636
-1.1%
647,437
-4,603
-0.7%
4,835,329
675,164
16.2%
1960
52,180
-3,357
-6.0%
610,734
-36,703
-5.7%
6,066,782
1,231,453
25.5%
1970
57,305
5,125
9.8%
607,839
-2,895
-0.5%
7,171,112
1,104,330
18.2%
1980
55,593
-1,712
-3.0%
556,972
-50,867
-8.4%
7,365,011
193,899
2.7%
1990
58,012
2,419
4.4%
553,099
-3,873
-0.7%
7,730,188
365,177
5.0%
2000
67,088
9,076
15.6%
608,975
55,876
10.1%
8,414,350
684,162
8.9%
2010
66,455
-633
-0.9%
634,277
25,302
4.2%
8,791,894
377,544
4.5%
2013
(estimated)
67,233
778
1.2%
644,605
10,328
1.6%
8,832,406
40,512
0.5%
Source: U.S. Census Bureau, 2009-2013 American Community Survey 5-year Estimates
Population Composition by Age
The median age of the residents in Union City in 2010 was 34 years. Analysis of age group
characteristics provides insight into the actual changes in population. This comparison is helpful
in determining impacts these changes have on housing needs, community facilities and services
for the municipality and the County overall. The age composition of Union City has shifted
somewhat since 2000. All age cohorts 45 and older saw significant increases while the age cohorts
under 45 all experienced decreases. The largest rates of increase occurred in the 45 to 54 age
cohort, rising 20 percent, followed by the 55 to 64 age cohort, increasing 12.7 percent. A
moderate decrease was experienced in the 5 to 14 age cohort, declining by 10.9 percent.
City of Union City Housing Element and Fair Share Plan
June 2017
9
Population by Age 2000 and 2010, City of Union City
Population
2000
2010
Change, 2000 to 2010
Number
Percentage
Number
Percentage
Number
Percentage
Total population
67,088
100.0%
66,455
100.0%
-633
-0.9%
Under 5 years
4,945
7.4%
4,845
7.3%
-100
-2.0%
5 to 14
9,268
13.8%
8,255
12.4%
-1,013
-10.9%
15 to 24
10,122
15.1%
9,736
14.7%
-386
-3.8%
25 to 34
12,074
18.0%
11,559
17.4%
-515
-4.3%
35 to 44
10,949
16.3%
9,958
15.0%
-991
-9.1%
45 to 54
7,641
11.4%
9,166
13.8%
1,525
20.0%
55 to 64
5,395
8.0%
6,078
9.1%
683
12.7%
65 and over
6,694
10.0%
6,958
10.5%
264
3.9%
Source: U.S. Census Bureau
Hudson County similarly saw its greatest increase in the 55 to 64 age cohort (25.2%) but also
experienced moderate increases in the 45 to 54 cohort (14.7%), the 25 to 34 cohort (10.4%) and in
those under 5 years (9.9%). The largest decrease of 13.2 percent was seen in the 5 to 14 age
cohort.
Population by Age 2000 and 2010, Hudson County
Population
2000
2010
Change, 2000 to 2010
Number
Percentage
Number
Percentage
Number
Percentage
Total population
609,975
100.0%
634,277
100.0%
24,302
4.0%
Under 5 years
38,756
6.4%
42,586
6.7%
3,830
9.9%
5 to 14
76,700
12.6%
66,584
10.5%
-10,116
-13.2%
15 to 24
85,412
14.0%
85,641
13.5%
229
0.3%
25 to 34
119,073
19.5%
131,508
20.7%
12,435
10.4%
35 to 44
97,727
16.0%
96,716
15.2%
-1,011
-1.0%
45 to 54
72,379
11.9%
82,985
13.1%
10,606
14.7%
55 to 64
49,657
8.1%
62,180
9.8%
12,523
25.2%
65 and over
69,271
11.4%
63,085
9.9%
-6,186
-8.9%
Source: U.S. Census Bureau
Households
A household is defined as one or more persons, either related or not, living together in a housing
unit. In 2010 there was a total of 22,814 households in Union City. Almost half of the households
(49.5%) were occupied by two persons or less, but there was also a significant amount of three-
person households (19.1%). The average household size in the City was 2.88, higher than that of
the County’s average of 2.54. While the City’s largest percentage of households was a two-person
household (25.7%), the County’s was a one-person household at 29.9 percent.
City of Union City Housing Element and Fair Share Plan
June 2017
10
Household Size- Occupied Housing Units
City of Union City and Hudson County, 2010
City
County
Number
Percent
Number
Percent
Total Households
22,814
100.0%
246,437
100.0%
1-person household
5,441
23.8%
73,741
29.9%
2-person household
5,852
25.7%
71,762
29.1%
3-person household
4,350
19.1%
42,935
17.4%
4-person household
3,465
15.2%
31,581
12.8%
5-person household
1,969
8.6%
15,098
6.1%
6-person household
931
4.1%
6,401
2.6%
7-or-more-person household
806
3.5%
4,919
2.0%
Average Household Size
2.88
2.54
Source: U.S. Census Bureau
Family households are defined as two or more persons living in the same household, related by
blood, marriage or adoption. They do not include same-sex married couples. Most households in
the City in 2010 were family households, comprising 68 percent of all households. The average
family size was 3.24. The majority of family households (53.9%) were married couples, with just under
half having children under the age of 18. Approximately 23 percent of all households were one-
person households, of which 49.4 percent were male householders and 50.6 were female.
In providing more detail of American households, the 2010 Census included the sub-groups of
non-traditional households: Other family and Non-family households. “Other” family households
made up 31.3 percent of all households, of which 69.6 percent were headed by female
householders with no husband present. Non-family households are defined as households that
consist of a householder living alone or sharing the home exclusively with people whom he/she is
not related. Non-family households comprised approximately 8.2 percent of all households in the
City.
City of Union City Housing Element and Fair Share Plan
June 2017
11
Household Size and Type, 2010
City of Union City
Total
Percent
Total Households
22,814
100.0%
1 person household
5,441
23.8%
Male householder
2,690
49.4%
Female householder
2,751
50.6%
2 or more person household
17,373
76.2%
Family households
15,512
68.0%
Married Couple Family
8,368
53.9%
With own children under 18 years
4,156
49.7%
No children under 18 years
4,212
50.3%
Other Family
7,144
31.3%
Male householder, no wife present
2,170
30.4%
With own children under 18 years
936
43.1%
No own children under 18 year
1,234
56.9%
Female householder, no husband present
4,974
69.6%
With own children under 18 years
2,720
54.7%
No own children under 18 year
2,254
45.3%
Nonfamily Households
1,861
8.2%
Male householder
1,167
62.7%
Female householder
694
37.3%
Average Family Size
3.39
Source: U.S. Census Bureau
Income
As measured in 2013, Union City had a significantly lower median household income than that of
Hudson County and the State of New Jersey. In 2013, the median income of Union City was
$40,763; $17,679 less than the County and $31,166 less than the State’s median income.
Per Capita and Household Income
2013 Per
Capita Income
2013 Medium
Household Income
Union City
$19,475
$40,763
Hudson County
$32,641
$58,442
New Jersey
$36,027
$71,929
Source: 2009-2013 American Community Survey 5-Year Estimates
The distribution for household income for Union City in 2013 is listed below. The most common
income bracket was $50,000 to $74,999, which was earned by 17.5 percent of the households. This
range was followed by those households that earned $15,000 to $24,999 (14.1%). In Union City,
City of Union City Housing Element and Fair Share Plan
June 2017
12
58.3 percent of the households earned less than $50,000, compared to 43.7 percent of the
County’s households.
Household Income
Union City and Hudson County, 2013
Union City
Hudson County
Number
Percentage
Number
Percentage
Total Households
22,439
100.0%
243,875
100.0%
Less than $10,000
2,318
10.3%
19,590
8.0%
$10,000 to $14,999
1,646
7.3%
12,934
5.3%
$15,000 to $24,999
3,173
14.1%
25,473
10.4%
$25,000 to $34,999
2,857
12.7%
21,400
8.8%
$35,000 to $49,999
3,082
13.7%
27,192
11.1%
$50,000 to $74,999
3,937
17.5%
40,066
16.4%
$75,000 to $99,999
2,395
10.7%
27,865
11.4%
$100,000 to $149,999
1,898
8.5%
34,386
14.1%
$150,000 to $199,999
638
2.8%
15,949
6.5%
$200,000 or more
495
2.2%
18,120
7.4%
Median Household Income
$40,763
$58,442
Source: 2009-2013 American Community Survey 5-Year Estimates
Poverty Status
In 2013, nearly a quarter of Union City’s residents were living below the poverty level, most of whom
were working age. Of the 16,307 persons who lived below the poverty level, the majority (55.8%)
were between 18 and 65, while 34.7 percent were under the age of 18. Hudson County saw a
similar distribution of those in poverty but experienced a lower overall percentage (16.8%).
Poverty Status
Union City and Hudson County, 2009 – 2013 Estimates
Union City
Hudson County
Number
Percentage
Number
Percentage
Total persons
66,956
-
638,010
-
Total persons below poverty level
16,307
24.4%
107,116
16.8%
Under 18
5,662
34.7%
33,401
31.2%
18 to 64
9,094
55.8%
63,612
59.4%
65 and over
1,551
9.5%
10,103
9.4%
Source: 2009-2013 American Community Survey 5-Year Estimates
City of Union City Housing Element and Fair Share Plan
June 2017
13
Household Costs
The tables below show the expenditures for housing for those who own and rent housing in Union
City and Hudson County. A large majority of the City lived in homes they rented, with 57 percent
of all renter-occupied households spending 30 percent or more of their household income on
housing. Among owner-occupied households, approximately 61 percent of households spent
more than 30 percent of their income on housing costs. General affordability standards set a limit
at 30 percent of gross income to be allocated for owner-occupied housing costs and 28 percent
of gross income to be allocated for renter-occupied housing costs.
Selected Monthly Owner Costs as a Percentage of Household Income
2009 - 2013 Estimates
Union City
Hudson County
Number
Percentage
Number
Percentage
Total Owner-Occupied Housing Units
4,137
100.0%
79,534
100.0%
Less than 15%
549
13.3%
13,920
17.5%
15 to 19%
315
7.6%
9,611
12.1%
20 to 24%
399
9.6%
9,891
12.4%
25 to 29%
337
8.1%
8,211
10.3%
30 to 34%
337
8.1%
6,302
7.9%
35% or more
2,182
52.7%
31,185
39.2%
Not computed
18
0.4%
464
0.6%
Source: 2009-2013 American Community Survey 5-Year Estimates
Gross Rent as a Percentage of Household Income
2009 - 2013 Estimates
Union City
Hudson County
Number
Percentage
Number
Percentage
Total Renter-Occupied Housing Units
17,741
100.0%
157,812
100.0%
Less than 15%
2,174
12.3%
23,478
14.9%
15 to 19%
1,785
10.1%
21,784
13.8%
20 to 24%
1,827
10.3%
20,787
13.2%
25 to 29%
1,835
10.3%
16,554
10.5%
30 to 34%
1,653
9.3%
13,489
8.5%
35% or more
8,467
47.7%
61,720
39.1%
Not computed
561
3.2%
6,529
4.1%
Source: 2009-2013 American Community Survey 5-Year Estimates
A large majority of Hudson County residents rent their home. Roughly 48 percent of all County
renter-occupied households and 47.1 percent of all owner-occupied households spent 30 percent
or more of their household income on housing.
City of Union City Housing Element and Fair Share Plan
June 2017
14
EXISTING HOUSING CONDITIONS
Housing Unit Data
Union City’s housing stock consists mainly of older structures and is primarily renter-occupied.
According to the 2010 Census, Union City had a total of 22,814 occupied housing units. A majority
of the units, 79.9 percent, were renter-occupied while 20.1 percent were owner-occupied.
Housing construction has remained steady since the 1930s with small dips seen in the 1980s and
1990s. Approximately 55 percent of the City’s housing stock was constructed before 1960 and a
significant amount of housing (32.4%) was built in 1939 or earlier. These factors put the median
year of construction in 1957.
Housing Data
City of Union City, 2010
Number
Percentage
Total Housing Units
24,931
100.0%
Occupied Housing Units
22,814
91.5%
Owner Occupied
4,583
20.1%
Renter Occupied
18,231
79.9%
Source: U.S. Census Bureau
Year Structure Built
City of Union City
Number
Percentage
Built 1939 or earlier
8,132
32.4%
Built 1940 to 1949
2,307
9.2%
Built 1950 to 1959
3,212
12.8%
Built 1960 to 1969
3,433
13.7%
Built 1970 to 1979
2,591
10.3%
Built 1980 to 1989
1,207
4.8%
Built 1990 to 1999
1,062
4.2%
Built 2000 to 2009
2,982
11.9%
Built 2010 or later
136
0.5%
Total
25,062
100.0%
Median Year Structure Built
1957
Source: 2009-2013 American Community Survey 5-Year Estimates
Housing Type and Size
The majority of the housing structures (22.3%) in Union City in 2013 had 3 to 4 units, and 22.4 percent
of structures had more than 20 units. Only 8.8 percent of the housing stock was single-family
housing. The median number of rooms within housing units in the City was 3.9 with the largest
percentage of units (30.5%) having 4 rooms.
City of Union City Housing Element and Fair Share Plan
June 2017
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Housing Type and Size
Union City, 2013
Units in Structure
Total
Percentage
Total
25,062
100.0%
1, detached
1,232
4.9%
1, attached
985
3.9%
2
4,267
17.0%
3 or 4
5,584
22.3%
5 to 9
4,673
18.6%
10 to 19
2,706
10.8%
20 to 49
2,817
11.2%
50 or more
2,792
11.1%
Mobile home
6
0.0%
Boat, RV, van, etc.
0
0.0%
Rooms
Total
Percentage
1 room
1821
7.3%
2 rooms
1756
7.0%
3 rooms
6189
24.7%
4 rooms
7648
30.5%
5 rooms
5203
20.8%
6 rooms
1496
6.0%
7 rooms
338
1.3%
8 rooms
281
1.1%
9 or more rooms
330
1.3%
Median number of rooms
3.9
Source: 2009-2013 American Community Survey 5-Year Estimates
Occupancy
According to the 2010 Census, of the 24,931 units in Union City, 22,814 (91.5%) were occupied
while 2,117 (8.5%) were vacant. Of those units that were vacant, roughly 56 percent were for rent
or rented and not occupied, another 15 percent were for sale, and 3.9 percent were for seasonal,
recreational or conditional use. A significant percentage, 22.6 percent, were listed as “other
vacant,” and a small number of vacant units, 3.9 percent, were sold but not yet occupied.
City of Union City Housing Element and Fair Share Plan
June 2017
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Occupancy Status
Union City, 2010
Total
Percentage
Total Housing Units
24,931
100%
Occupied
22,814
91.51%
Vacant Housing Units
2,117
8.5%
For Rent/Rented Not Occupied
1,188
56.1%
For Sale Only
320
15.1%
Sold, not occupied
49
2.3%
For Seasonal, Recreational or Occasional Use
82
3.9%
Other Vacant
478
22.6%
Source: 2010 U.S. Census
Housing Values and Contract Rents
In 2013, a majority of the housing units in Union City (84.4%) were valued at $200,000 or more, and
approximately 69.4 percent of all units were financed by a mortgage. Housing values for owner-
occupied housing units are listed in the table below along with mortgage status data. A total of
32 percent of all owner-occupied units were valued between $200,000 and $299,999. The second
most common value range was between $300,000 and $399,999 comprising 26.5 percent of all
owner-occupied units. The median value of an owner-occupied unit in Union City was $307,000.
Though most units were covered by a mortgage (69.4%), a significant percentage of units (30.6%)
had no mortgage at all.
City of Union City Housing Element and Fair Share Plan
June 2017
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Value for Owner-Occupied Housing Units
Union City, 2013
Number
Percentage
Total
4,137
100.0%
Less than $50,000
53
1.3%
$50,000 to $99,999
91
2.2%
$100,000 to $149,999
133
3.2%
$150,000 to $199,999
390
9.4%
$200,000 to $299,999
1,324
32.0%
$300,000 to $399,999
1,096
26.5%
$400,000 to $499,999
454
11.0%
$500,000 and greater
616
14.9%
Median Value
$307,100
Mortgage Status
Union City, 2013
Housing units with a mortgage, contract to purchase, or similar debt:
2,871
69.4%
With either a second mortgage or home equity loan, but not both:
408
9.9%
Second mortgage only
145
3.5%
Home equity loan only
263
6.4%
Both second mortgage and home equity loan
19
0.5%
No second mortgage and no home equity loan
2,444
59.1%
Housing units without a mortgage
1,266
30.6%
Source: 2009-2013 American Community Survey 5-Year Estimates
As previously stated, the large majority of units within Union City are renter-occupied. The median
contract rent in Union City in 2013 was $949, with the highest percentage of renters (35.6%) paying
between $1,000 and $1,499, followed by 22.1 percent who paid between $700 and $899 for rent.
Contract Rent
Union City, 2013
Number
Percentage
Total Renter Occupied Units
18,302
100.0%
Less than $200
331
1.8%
$200 to $499
1,169
6.4%
$500 to $699
2,173
11.9%
$700 to $899
4,047
22.1%
$900 to $999
2,023
11.1%
$1,000 to $1,499
6,508
35.6%
$1,500 to $1,999
1,249
6.8%
$2,000 or more
249
1.4%
No cash rent
237
1.3%
Median Contract Rent
$949
Source: 2009-2013 American Community Survey 5-Year Estimates
City of Union City Housing Element and Fair Share Plan
June 2017
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Housing Conditions
The following table details the condition of the housing within Union City based on heating fuel,
overcrowding, plumbing facilities, kitchen facilities, and telephone service. These factors are
utilized in determining housing deficiency. In 2013 the majority of occupied homes (77.2%) used
utility gas to heat the unit. There were 272 owner-occupied units and 3,421 renter-occupied units
that experienced overcrowding (more than one person per room). Throughout the City, 278 units
lacked complete plumbing facilities, 373 units lacked complete kitchen facilities, and 612 units
had no telephone service.
Housing Conditions
Union City, 2013
Number
Percentage
House Heating Fuel-Occupied Housing Units
Total
22,439
100.0%
Utility gas
17,329
77.2%
Bottled, tank, or LP gas
494
2.2%
Electricity
2,977
13.3%
Fuel oil, kerosene, etc.
1,391
6.2%
Coal or coke
0
0.0%
Wood
0
0.0%
Solar energy
0
0.0%
Other fuel
77
0.3%
No fuel used
171
0.8%
Occupants per Room- Occupied Housing Units
Total
22,439
100.0%
Owner-Occupied (Over 1.0)
272
1.2%
Renter-Occupied (Over 1.0)
3,421
15.2%
Facilities-Total Units
Total
22,439
100.0%
Lacking complete plumbing
facilities
278
1.2%
Lacking complete kitchen facilities
373
1.7%
Telephone Service- Occupied Housing Units
Total
22,439
100.0%
No Service
612
2.7%
Source: 2009-2013 American Community Survey 5-Year Estimates
City of Union City Housing Element and Fair Share Plan
June 2017
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EMPLOYMENT DATA
The following tables detail changes in employment from 2003 to 2014 in Union City, Hudson
County, and the State of New Jersey. Both the labor force and employment saw steady decline
beginning in 2003. However, so did the unemployment rate, declining from 10.9 percent in 2003
to 6.5 percent in 2007. In 2008 the unemployment rate began to rise again and in 2009 it hit a
decade high of 13.9 percent. Following this peak, the unemployment rate began to decline and
in 2014 was at 8 percent. In 2010 both the labor force and employment jumped by nearly 8,000
individuals and has remained steady. While the Union City unemployment trends mirror those of
Hudson County and the State, Union City has a consistently higher level of unemployment than
do its counterparts.
Union City Employment and Residential Labor Force -- 2003 - 2014
Year
Labor Force
Employment
Unemployment
Unemployment Rate
2003
28,840
25,698
3,142
10.9%
2004
28,209
25,670
2,539
9.0%
2005
27,250
25,315
1,935
7.1%
2006
26,988
25,049
1,942
7.2%
2007
26,646
24,912
1,732
6.5%
2008
27,024
24,825
2,199
8.1%
2009
27,862
23,978
3,884
13.9%
2010
35,127
31,137
3,990
11.4%
2011
35,504
31,608
3,896
11.0%
2012
35,719
31,843
3,876
10.9%
2013
35,166
31,806
3,360
9.6%
2014
35,043
32,247
2,796
8.0%
Hudson County Employment and Residential Labor Force -- 2003 - 2014
Year
Labor Force
Employment
Unemployment
Unemployment Rate
2003
291,100
269,700
21,400
7.4%
2004
286,700
269,400
17,300
6.0%
2005
287,500
271,800
15,700
5.5%
2006
289,000
272,900
16,100
5.6%
2007
290,000
275,600
14,500
5.0%
2008
294,000
275,800
18,300
6.2%
2009
300,200
268,600
31,600
10.5%
2010
352,600
318,900
33,800
9.6%
2011
357,300
324,500
32,800
9.2%
2012
361,000
328,400
32,700
9.1%
2013
358,900
330,000
28,900
8.0%
2014
357,900
334,600
23,300
6.5%
City of Union City Housing Element and Fair Share Plan
June 2017
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New Jersey Employment and Resident Labor Force -- 2003 - 2014
Year
Labor Force
Employment
Unemployment
Unemployment Rate
2003
4,347,200
4,093,700
253,500
5.8%
2004
4,349,200
4,138,800
210,300
4.8%
2005
4,391,600
4,194,900
196,700
4.5%
2006
4,445,900
4,236,500
209,400
4.7%
2007
4,441,800
4,251,800
190,000
4.3%
2008
4,504,400
4,264,000
240,500
5.3%
2009
4,550,600
4,138,600
412,100
9.1%
2010
4,555,300
4,121,500
433,900
9.5%
2011
4,565,700
4,140,500
425,300
9.3%
2012
4,588,100
4,162,100
426,000
9.3%
2013
4,534,400
4,164,400
370,000
8.2%
2014
4,518,700
4,218,400
300,300
6.6%
Source: NJ Dept. of Labor & Workforce Development Labor Force Estimates
Class of Worker and Occupation
The majority of workers (87.7%) living in Union City in 2013 were part of the private wage and salary
worker group. This group includes people who worked for wages, salary, commission and tips for
a private for-profit employer or a private not-for-profit, tax-exempt or charitable organization. The
second largest category was government worker (8.5%) followed by those who were self-
employed (3.7%).
Class of Worker, 2013
Union City
Number
Percentage
Total
31,677
100.0%
Private Wage and Salary Worker
27,769
87.7%
Government Worker
2,702
8.5%
Self-Employed Worker
1,179
3.7%
Unpaid Family Worker
27
0.1%
Source: 2009-2013 American Community Survey 5-Year Estimates
The occupational breakdown shown in the table below includes only private wage and salary
workers. The two largest occupational categories for Union City workers were service occupations
(25.9%) and sales and office occupations (23.8%). These two categories were followed closely by
production transportation and material moving occupations, which employed 22.7 percent of
Union City workers.
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June 2017
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Occupation, 2013
Union City
Number
Percentage
Employed Civilian population 16 years and over
31,677
100.0%
Management, business, science and arts occupations
5,424
17.1%
Service occupations
8,216
25.9%
Sales and office occupations
7,547
23.8%
Natural resources, construction and maintenance occupations
3,284
10.4%
Production Transportation and material moving occupations
7,206
22.7%
Source: 2009-2013 American Community Survey 5-Year Estimates
Commuting to Work
In 2013, the mean travel time to work for those who lived in the City was 31 minutes. The vast
majority of commuters, 80.3 percent, traveled less than an hour to work, and roughly 44 percent
have less than a thirty-minute commute.
Travel Time to Work
Union City, 2013
Number
Percentage
Workers who did not work at home
30,297
100.0%
Less than 10 minutes
257
0.8%
10 to 14 minutes
1,481
4.9%
15 to 19 minutes
2,976
9.8%
20 to 24 minutes
3,681
12.1%
25 to 29 minutes
4,832
15.9%
30 to 34 minutes
1,467
4.8%
35 to 44 minutes
6,153
20.3%
45 to 59 minutes
3,469
11.4%
60 to 89 minutes
3,184
10.5%
90 or more minutes
925
3.1%
Mean travel time to work (minutes)
31.0
Source: 2009-2013 American Community Survey 5-Year Estimates
The largest portion of workers commuted via public transportation (41.1%), while approximately
30 percent drove to work alone. Roughly 14 percent of workers, however, walked to work and
nearly 11 percent carpooled. The City saw 2.5 percent of its workers work from home.
City of Union City Housing Element and Fair Share Plan
June 2017
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Means of Commute
Union City, 2013
Number
Percentage
Workers 16 years and over
31,077
100.0%
Car, truck, van- Drove Alone
9,251
29.8%
Car, truck, van- Carpooled
3,385
10.9%
Public Transportation
12,767
41.1%
Walked
4,268
13.7%
Other Means
626
2.0%
Worked at home
780
2.5%
Source: 2009-2013 American Community Survey 5-Year Estimates
Covered Employment
There is currently very limited information available on actual job opportunities within
municipalities. The Department of Labor collects information on covered employment, which is
employment and wage data for private employees covered by unemployment insurance. The
tables below provide a snapshot of private employers located within Union City. The first table
reflects the number of jobs covered by private employment insurance from 2003 through 2013.
The second table reflects the disbursement of jobs by industry and salaries in 2013.
According to data from the New Jersey Department of Labor and Workforce Development, the
highest number of covered jobs in the last twelve years was in 2004 when 9,351 jobs were covered
by unemployment insurance. Private employment has fluctuated somewhat in Union City since its
2004 peak with its greatest increase (10.8%) occurring in 2010.
Private Wage Covered Employment 2003 - 2013
Union City
Year
Number of Jobs
#
Change
%
Change
2003
9,281
-
-
2004
9,351
70
0.8%
2005
8,064
-1287
-13.8%
2006
8,422
358
4.4%
2007
7,997
-425
-5.0%
2008
7,466
-531
-6.6%
2009
6,956
-510
-6.8%
2010
7,710
754
10.8%
2011
7,320
-390
-5.1%
2012
6,857
-463
-6.3%
2013
7,117
260
3.8%
City of Union City Housing Element and Fair Share Plan
June 2017
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Source: NJ Dept. of Labor & Workforce Development Labor Force Estimates
In terms of employment, the dominant private industry in the City in 2013 was the health and social
work industries, providing an average of 1,779 jobs. This was followed by the retail trade, which
employed an average of 1,148 individuals, and the administration and waste remediation
industry, employing an average of 1,040 individuals. The wholesale trade, however, experienced
the highest private wages, averaging $43,835 annually. The accommodations and food industry
provided the lowest wages overall, averaging $16,007 annually. Local government, however,
experienced the highest overall employment of 2,729 individuals and annual salary average of
$52,284.
Private Employment and Wages, 2013
Industry
Employment
Wages
March
June
Sept
Dec
Average
Weekly
Annual
Construction
193
190
163
170
175
$827
$43,015
Manufacturing
278
284
282
258
278
$547
$28,443
Wholesale Trade
264
264
273
280
261
$843
$43,835
Retail Trade
1,122
1,152
1,173
1,180
1,148
$456
$23,690
Transp/Warehousing
202
202
209
197
198
$523
$27,177
Finance/Insurance
272
273
279
282
277
$781
$40,586
Real Estate
175
185
177
178
177
$568
$29,523
Professional/Technical
271
249
249
257
252
$755
$39,264
Management
.
.
.
.
.
.
.
Admin/Waste Remediation
1,073
979
1,114
1,072
1,040
$379
$19,698
Education
68
66
76
92
75
$485
$25,203
Health/Social
1,814
1,834
1,785
1,811
1,779
$570
$29,661
Accommodations/Food
815
841
830
863
808
$308
$16,007
Other Services
304
312
310
315
308
$436
$22,675
Private Sector Totals
7,215
7,167
7,228
7,296
7,117
$519
$26,984
Local Government Totals
2,783
2,819
2,348
2,889
2,729
$1,005
$52,284
Source: NJ Dept. of Labor & Workforce Development Labor Force Estimates
Probable Future Employment Opportunities
The North Jersey Transportation Planning Authority (NJTPA) completes regional forecasts for the
New York/New Jersey metropolitan area every four years for populations, households, and
employment. The most recent set of forecasts, released in 2013, predicts Union City’s employment
will increase by 5,800 jobs by 2040. In addition, the New Jersey Department of Labor releases a
Regional Community Fact Book for each county in New Jersey. By 2020, Hudson County is
projected to increase its job holding by 15,550 jobs. The finance and insurance industry and the
healthcare and social assistance industry sectors are projected to create the most jobs in Hudson
County between 2010 and 2020, a total of roughly 9,950 jobs.
City of Union City Housing Element and Fair Share Plan
June 2017
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PART 2: FAIR SHARE PLAN
INTRODUCTION
The following Fair Share Plan (“the Plan”) details Union City’s present need, prior round obligation
(1987-1999), and Third Round need. This Plan proposes mechanisms for which the City can
realistically provide opportunities for affordable housing for moderate-, low-, and very low- income
households.
Union City is a densely populated urban municipality that has a significant amount of pre-1960
housing. The City is also a state-designated urban aid municipality. This designation is indicative of
the existing affordable housing opportunities within the City, which can be seen in the Prior Round
obligation of 0 per the agreed upon settlement between the City and the Fair Share Housing
Center (FSHC).
Despite its urban aid designation, the City has been able to provide a significant amount of
affordable housing opportunities. Regardless of the ultimate decision on fair share issues, the City
will do everything in its powers to continue to provide affordable housing options. The City
proposes to accomplish this by continuing its long-standing aggressive code enforcement
program and will, to the extent that it can, provide assistance to new affordable projects.
The need for affordable housing in New Jersey is divided into three components:
Present Need – The present need, or rehabilitation share, represents the number of existing
housing units that are both deficient and occupied by low and moderate income
households. This number is derived from review and analysis of housing conditions
reported in the U.S. Census and American Community Survey.
Prior Round Obligation – The Prior Round obligation is the cumulative 1987-1999 fair share
obligation determined by 2014 COAH regulations. The First Round and the Second Round
are mutually referred to as the “Prior Round.”
Third Round Need (Prospective Need) – The Third Round need represents the anticipated
future affordable housing needs of a municipality during the time period of 2015 to 2025.
The following is a summary of Union City’s obligations per the agreed upon settlement between
the City and FSHC.
Rehabilitation Share
1,442
Prior Round Obligation
0
Third Round
0
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June 2017
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PRESENT NEED
Present Need was determined in N.J.A.C. 5:93-1.3 under 2nd round rules, dated May 2002, to be
the sum of a municipality’s indigenous need, the deficient housing units occupied by low- and
moderate-income households, and the reallocated present need, which is the portion of a
housing region’s present need that is redistributed throughout the housing region. Under the
second round rules, evidence for deficient housing included: year structure was built, persons per
room, plumbing facilities, kitchen facilities, heating fuel, sewer service, and water supply.
The Third Round rules reduced the criteria for deficient housing to only include: pre-1960 over-
crowded units, which are units that have more than 1.0 persons per room; incomplete plumbing,
and incomplete kitchen facilities. This criteria reduction was found by the Appellate Division to be
within the Council’s discretion and was upheld in the Supreme Court’s decision In re N.J.A.C. 5:96
& 97.
The previously discussed 2015 Supreme Court decision found that the reallocated need is no
longer a component in the determination of Present Need. Therefore, the Present Need now
equates to indigenous need, which means the obligation is based on deficient housing as
determined by pre-1960 over-crowded units, incomplete plumbing, and incomplete kitchen
facilities.
The agreed upon settlement between the City and FSHC determined a Present Need of 1,442
units for Union City. The following details the methods in which the City will meet its Present Need
obligation. These efforts are sufficient to address the City’s Present Need obligation of 1,442 units.
County-Funded Rehabilitation Programs
The City participates in a residential rehabilitation program funded through the Community
Development Block Grant (CDBG) program and has completed 21 rehabilitation projects since
2010. The City has its own CDBG entitlement allocation and has funds available through this
program to address a wide range of development issues, including affordable housing projects.
The City will continue to apply for funds through the CDBG program to continue rehabilitating
substandard units.
The Union City Housing Authority also has received additional funding to rehabilitate their existing
developments. These funds have been used for projects such as new boilers, updating bathrooms,
and replacing kitchens.
City of Union City Housing Element and Fair Share Plan
June 2017
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In addition, multiple affordable projects within the City have received funding through the HOME
Investment Partnership Program (HOME). The City, Housing Authority, non-profits, and private
developers have leveraged over $10 million from HOME to assist in providing affordable housing
opportunities. The HOME Program works with communities to provide assistance in funding a wide
range of affordable housing projects. The Hudson County Consortium (the “Consortium”) for the
HOME Program is comprised of eleven municipalities within Hudson County including the City of
Union City. The Consortium uses the HOME funds to provide assistance of rehabilitation of very low
and low income units, to increase homeownership opportunities for very low and low-income
individuals and families, and to increase the supply of affordable rental units. The City has
aggressively worked with the Consortium, which has provided substantial funding for various
projects throughout the City, and will continue to apply for funding (see Appendix B for list of
current affordable housing projects in Union City funded by HOME).
Existing/Proposed Affordable Units
The following developments and projects contribute to the City’s Present Need:
Rehabilitation of 21 units
Development of new affordable units
Continued participation in the City CDBG program and County HOME program.
Aggressive review of sites, which may be “redeveloped” and provide additional
affordable housing opportunities
Union City Housing Authority 456 public housing units
Union City Housing Authority 112 veterans housing units
The following are details of the City’s existing affordable units. A map of all of the above affordable
developments can be found in Appendix A.
St. Michael’s Pavilion
St. Michael’s Pavilion is located at 1901 West Street, and is the former location of the St. Michael’s
Monastery. In 1994, the monastery was ravaged by a fire, which destroyed its roof and much of its
interior. The developer, Monastery Urban Renewal, applied for and received low-income tax
credits in 1997. St. Michael’s contains 70 affordable family rental units and was built in 1999.
City of Union City Housing Element and Fair Share Plan
June 2017
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The Palisades
The Palisades is located at 3900 Palisade Avenue. In partnership with the Union City Housing
Authority, the development received low-income tax credits in 1999. The project created 45
affordable family rental housing units and was constructed in 2001.
The Renaissance
The Renaissance is located at 26th Street and Central Avenue. Developed by the North Hudson
Community Action Corporation, the development was completed in 2001 and created 36
affordable family rental units. The development received low-income tax credits in 1999.
Holy Rosary Housing
Holy Rosary Housing, located at 1501-09 Bergenline Avenue contains 60 affordable senior rental
units. The project was built in 2004. The project received Section 202 Supportive Housing for the
Elderly funding.
Garden State Episcopal Community Development Corporation
The Garden State Episcopal Community Development Corporation received approval from the
City’s Zoning Board of Adjustment in September 2014 to construct a 9-unit supportive housing
development at 1514-1518 Palisade Avenue.
Blue Chapel
Blue Chapel is a former monastery located at 605 14th Street. There is currently a proposal to
develop 75 affordable senior rental units at this complex.
St. John’s
St. John’s Evangelical Lutheran Church is proposing to construct 25 family rental units on a property
they own at 3501-3509 and 3511 Palisade Avenue.
Bella Vista Apartments
The Bella Vista Apartments is located at 522 22nd Street and provides a total of 230 Section 8
federally subsidized apartments. The 230 units are divided among senior residents and legally
handicapped or disabled persons. Bella Vista was completed post 1980.
City of Union City Housing Element and Fair Share Plan
June 2017
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Horizon Heights
Horizon Heights is located at 4906 Broadway. Half of the building is located in West New York and
half in Union City. The half that is in Union City contains 26 affordable family rental units. The
development was completed in 2011.
311, 315, 317 8th Street
These three properties (Block 37, Lots 9, 10, and 11) on 8th Street make up a total of 32 affordable
rental units. These projects received funding from HOME and contains a 15-year deed restriction
in 2006.
1401 Bergenline Avenue
The property at 1401 Bergenline Avenue contains 12 affordable rental units that received HOME
funding and affordability controls in 2006. The development is managed by SERVE Properties and
Management, a branch of the non-profit SERV Behavioral Health System who specializes in
planning, development, and management of housing for special needs populations.
551 40th Street
The property at 551 40th Street contains 18 affordable rental units available for veterans with
physical and mental disabilities. The development contains twelve one-bedroom units and six two-
bedroom. The development received HOME funding and was opened in December 2013.
Union City Housing Authority public housing units
The Union City Housing Authority manages 456 affordable housing rental units across the City.
These units are located within four developments: Columbian Court (96 untis), Hillside Terrace I
(147 units), Hillside Terrace II (112 units), and Palisade Plaza (101 units). A list of units and addresses
can be found in Appendix B.
Veterans Housing
The Housing Authority of Union City also manages 112 veterans housing units located within 54
buildings across the City. A list of these units can be found in Appendix B. It is a goal of the City to
continue to build and provide affordable housing opportunities to veterans. The City will continue
to pursue options to fund affordable veterans housing through HOME funds as well as from the
New Jersey Housing and Mortgage Finance Agency Special Needs Housing Partnership Loan
Program (SNHPLP).
City of Union City Housing Element and Fair Share Plan
June 2017
29
Block 42, Lot 9 (720 8th Street)
The City collaborated with New Jersey Housing and Mortgage Finance Agency to develop an
RFP for this site for a development including approximately 100 affordable age-restricted rental
units. The City has received three responses to the RFP from experienced 100% affordable
developers and is currently evaluating the submissions.
Additional Affirmative Measures
Mandatory Sliding Scale Set-Aside
Per the agreed upon settlement, the City will also establish a mandatory sliding scale set-aside
requirement created through any Planning Board and/or Zoning Board of Adjustment action on
subdivision or site plan applications, rezoning, use variance redevelopment plan, or rehabilitation
plan that provides for an increase in density above what is currently permitted as of the date of
this Plan:
1. 5% set-aside for any multi-family development of twenty to 49 units;
2. 10% set-aside for any multi-family development of fifty to 199 units; and
3. 15% set-aside for any multi-family development of 200 or more units.
The City agrees that for projects in redevelopment areas involving less than fifty units a 1 for 1
density bonus will be applied for each affordable unit required.
Additionally, in lieu of constructing affordable units, a developer may request that the Planning
Board or Zoning Board of Adjustment permit the developer to provide a payment in lieu of
affordable housing. A payment in lieu of affordable housing, if permitted, shall be in the sum of
$175,000.00 per unit made to the City’s Affordable Housing Trust Fund. For those projects of 50 units
or more, the developer can only contribute funds for up to one half the units to be constructed as
affordable units.
Development Fee Ordinance and Trust Fund
In conformance with the City’s development fee ordinance that was most recently amended in
2009, and approved by COAH, developers must pay an affordable housing development fee into
the City’s Affordable Housing Trust Fund. Monies generated by the development fees will be the
primary source of funding for rehabilitation projects within the City. As detailed in Union City’s
Spending Plan, the City projects sufficient funding to rehabilitate 52 units between 2016 and 2025.
City of Union City Housing Element and Fair Share Plan
June 2017
30
Garden State Episcopal
Through the Palisades Emergency Residence Corporation, a nonprofit organization that provides
shelters, permanent housing, and other community services, the Garden State Episcopal has
proposed to convert a building they own at 113 37th Street into a two-family dwelling for families
with special needs children. The development will produce one affordable-unit.
Union City Public Housing Agency
The Union City Public Housing Agency is applying for State funds in order to acquire a building at
519-521 Summit Avenue and construct 12 units of housing for the homeless and/or homeless
veterans.
Summary of Present Need affordable developments:
Present Need Obligation
1,442
Rehabbed units since April 1, 2010
21
St. Michael’s Pavilion
70
The Palisades
45
The Renaissance
36
Holy Rosary Housing
60
Garden State Episcopal Community Dev. Corp.
9
Blue Chapel
75
St. John’s
25
Bella Vista Apartments
230
Horizon Heights
26
311, 315, 317 8th Street
32
1401 Bergenline Avenue
12
551 40th Street
18
Union City Housing Authority Rental Units
456
Union City Housing Authority Veterans Units
112
Block 42, Lot 9 (720 8th Street)
100
Total Existing/Proposed Units
1,327
Funds from the City’s Affordable Housing Trust Fund
collected through Development fees partnered with
additional monies from HOME and CDBG Programs
52+
Mandatory sliding scale set-aside requirement that
provides for an increase in density above what is
currently permitted as of the date of this Plan
City of Union City Housing Element and Fair Share Plan
June 2017
31
Garden State Episcopal proposed two-family
building conversion
1
Union City Public Housing Authority proposed
homeless/veterans home
12
PRIOR ROUND OBLIGATION (1987-1999)
Both the Round 1 and Round 2 methodologies established a category of municipalities that are
excluded from a Prospective Need obligation. These municipalities are those that are designated
by the State as urban aid municipalities and meet at least one of three criteria related to the
amount of low and moderate income housing, population density, and available land within the
municipality. Union City is a state-designated urban aid municipality and was determined to meet
all three of the qualifying criteria: 1) deficient low and moderate income housing that exceeds
the average low and moderate income housing deficiency of the region, and 2) a population
density of greater than 10,000 persons per square mile. Per the agreed upon settlement
agreement, Union City has a Prior Round Obligation of 0 units.
ROUND 3 NEED
Due to its urban aid designation and per the agreed upon settlement, Union City has a Round 3
Need of 0.
City of Union City Housing Element and Fair Share Plan
June 2017
32
SUMMARY OF FAIR SHARE COMPLIANCE
Present Need
1,442
CDBG funded rehab program (completed)
21
St. Michael’s Pavilion
70
The Palisades
45
The Renaissance
36
Holy Rosary Housing
60
Garden State Episcopal Community Dev. Corp.
9
Blue Chapel
75
St. John’s
25
Horizon Heights
26
Bella Vista Apartments
230
311, 315, 317 8th Street
32
1401 Bergenline Avenue
12
551 40th Street
18
Union City Housing Authority Rental Units
456
Union City Housing Authority Veterans Units
112
Block 42, Lot 9 (720 8th Street)
100
Total Existing/Proposed Units
1,327
Funds from the City’s Affordable Housing Trust Fund
collected through Development fees partnered with
additional monies from HOME and CDBG Programs
52+
Mandatory sliding scale set-aside requirement that
provides for an increase in density above what is
currently permitted as of the date of this Plan
Garden State Episcopal proposed two-family building
conversion
1
Union City Public Housing Authority proposed
homeless/veterans home
12
Total Present Need Credits
1,455 +
Prior Round Obligation (1987-1999)
0
Third Round Need (2015-2025)
0
APPENDIX A
AFFORDABLE HOUSING SITES MAP
WEEHAWKEN TWP
NORTH BERGEN TWP
HOBOKEN CITY
Hillside Terrace I & II
Blue Chapel
St. Michael's Pavilion
Bella Vista
Columbian
Court
720 8th St
Palisade
Plaza
St. John's
Holy Rosary
Housing
The Palisades
The Renaissance
Veterans
Housing
Horizon
Heights
Garden State Episcopal
Community Dev. Corp.
SERV Property
8th Street
New York Ave
Bergenline Ave
Summit Ave
37th St
38th St
39th St
Palisade Ave
16th St
17th St
West St
Park Ave
31st St
23rd St
15th St
24th St
22nd St
8th St
41st St
14th St
40th St
30th St
27th St
26th St
34th St
45th St
43rd St
42nd St
Central Ave
11th St
12th St
47th St
4th St
25th St
10th St
18th St
35th St
3rd St
State Hwy 495
48th St
28th St
36th St
5th St
7th St
6th St
29th St
Kerrigan Ave
13th St
Sip St
46th St
19th St
N Wing Via
13th Ave
Hudson Ave
Hackensack Plank Rd
2nd St
Broadway
44th St
Monastery Pl
20th St
Brown St
21st St
Peters St
Washington St
Lincoln St
9th St
S Wing Via
33rd St
Bergen Tpke
Cantello St
Cottage Pl
John F Kennedy Blvd
Plank Rd
Tournade Ln
Roosevelt St
Jfk Blvd
14th St
Palisade Ave
18th St
10th St
West St
35th St
19th St
Park Ave
44th St
Hudson Ave
21st St
18th St
36th St
19th St
Central Ave
28th St
33rd St
29th St
11th St
Affordable Housing Locations
HEYER GRUEL & ASSOCIATES
September 2016
µ
0
1,000
500
Feet
Source: NJDEP, NJGIN, NJOGIS, NJDOT
Union City, NJ
SECAUCUS
NORTH
BERGEN
WEEHAWKEN TWP
HOBOKEN CITY
JERSEY CITY
UNION CITY
Affordable Housing Sites
Housing Authority Sites
Other Affordable Housing
Affordable Housing Site
Address
Units
Horizon Heights
4900 Broadway, Union City & West New
York
26 family rental
Veterans Housing
551 40th Street
18 units
The Palisades
3900 Palisade Avenue
45 rental
St. John's
3501-09 and 3511 Palisade Ave
20-25 age-restricted rental
The Renaissance
26th Street and Central Avenue
36 family rental
Bella Vista Apartments
522 22nd Street
230 rental - senior and legally
handicapped or disabled
St. Michael's Pavilion
1901 West Street
70 family rental
Holy Rosary Housing
1501-09 Bergenline Avenue
59 age-restricted rental
Blue Chapel
605 14th Street
70-75 age-restricted rental
Garden State Episcopal
Community Dev. Corp.
1514-1518 Palisade Avenue
9 supportive housing
SERV Property
1401 Bergenline Avenue
12 family rental
8th Street Site
311-317 8th Street
32 rental
Block 42 Lot 9
(Dedicated)
720 8th Street
100 age-restricted rental
Affordable Housing Site
Address
Units
Palisade Plaza
3700 Palisades Avenue
101 age-restricted
Hillside Terrace 1 & 2
3901 Kennedy Boulevard
259 units
Columbian Court
301-09 Bergenline Avenue
96 units
Veterans Housing
(Not Indicated on Map)
54 buildings across the City
112 units
Housing Authority of the City of Union City
Affordable Housing Sites, City of Union City, Hudson County, New Jersey
APPENDIX B
REHABILITATION PROGRAMS AND FUNDING
Active projects who have received funding from HOME Investment Partnership Program
Provided by the Hudson County Division of Housing & Community Development
MUNICIPALITY
ADDRESS
PROJECT SPONSOR
Total
Units
STATUS
Length of
Affordability
Year
Affordability
Ends
Union City
1501-9 Bergenline
Avenue
Catholic Community Services/ Holy
Rosary
60
Complete
20
2024
Union City
3900 Palisade Avenue
Union City Housing Authority
45
Complete
20
2028
Union City
311,315,317 8th Street
M. Hector
32
Complete
15
2021
Union City
2601 Central Avenue
NHCAC Union City Renaissance
37
Complete
20
2024
Union City
108 36th Street
PERC
8
Complete
20
2032
Union City
4906 Broadway
Regan Development
52
Complete
20
2033
Union City
1401 Bergenline Ave
SERV
12
Complete
20
2026
Union City
551 40th Street
Suede Promotions
18
Complete
20
2035
Union City
1901 West Street
St. Michael's Pavilion
70
Complete
35
2036
Housing Authority of the City of Union City, New Jersey
The following is a list of the 456 affordable rental units managed by the Union City Housing Authority.
BUILDING/ HOUSING INVENTORY
COLUMBIAN COURT- 96 Units
512 3rd Street
514 3rd Street
513 4th Street
515 4th Street
307 Bergenline Avenue
309 Bergenline Avenue
306 West Street
308 West Street
HILLSIDE TERRACE I- 147 Units
634 39th Street
640 39th Street
660 39th Street
HILLSIDE TERRACE II- 112 Units
3901 Kennedy Boulevard
3911 Kennedy Boulevard
PALISADE PLAZA- 101 Units
3700 Palisade Avenue
Veterans Housing Units:
The Housing Authority manages 112 units within 54 buildings across the City.
136-147 Cantello Street
405 5th Street
520 5th Street & 500 West Street
118-120 39th Street / 115 40th Street
309-311 44th Street
HOME Program
Policies and Procedures
Revised November 2015
Hudson County
Division of Housing and
Community Development
Page 1
Table of Contents
I.
Introduction ............................................................................................................................. 3
II.
Distribution of Funding........................................................................................................... 5
III.
Eligible Projects ................................................................................................................... 6
A.
Eligible Activities ............................................................................................................. 6
B.
Eligible Property Types .................................................................................................... 6
C.
Site and Neighborhood Standards .................................................................................... 7
D.
Forms of Subsidy ............................................................................................................. 8
E.
Subsidy Limits.................................................................................................................. 8
F. Eligible Beneficiaries/Residents .......................................................................................... 8
IV.
Long Term Affordability and Occupancy Requirements .................................................. 11
V.
Funding and Underwriting .................................................................................................... 16
A.
Application ..................................................................................................................... 16
B.
HOME Subsidy Layering and Underwriting Policy ...................................................... 16
C.
Commitment Letter ........................................................................................................ 17
D.
Administrative Plan ........................................................................................................ 17
E.
Closing Documents ........................................................................................................ 18
F. Drawdown Process............................................................................................................. 18
G.
Deadlines for Completion and Occupancy..................................................................... 19
Rental .................................................................................................................................... 19
Homeowner ........................................................................................................................... 19
H.
Lease- up and Affirmative Marketing Program ............................................................. 19
VI.
Federal Requirements ........................................................................................................ 24
A.
Housing Accessibility .................................................................................................... 24
B.
Employment and Contracting......................................................................................... 24
C.
Environmental Review ................................................................................................... 26
D.
Lead Based Paint Hazards .............................................................................................. 26
E.
Recordkeeping ................................................................................................................ 28
Page 2
F.
Uniform Relocation Assistance ...................................................................................... 28
H.
Financial Management Requirements ............................................................................ 29
VII.
Community Housing Development Organizations ............................................................ 31
A.
Overview ........................................................................................................................ 31
B.
Definition of A CHDO ................................................................................................... 31
C.
Certification/Review Process ......................................................................................... 33
D.
Accessing CHDO HOME Funds ................................................................................... 33
E.
Eligible CHDO Set-aside Activities ............................................................................... 34
F. CHDO Roles ...................................................................................................................... 34
Appendix 1: Definitions ................................................................................................................ 36
Appendix 2: Subsidy Limits ......................................................................................................... 40
Appendix 3: 2015 Jersey City, NJ HUD Metro FMR Area Income Limits ................................. 41
Appendix 4: 2015 Jersey City, NJ HUD Metro FMR Rents and HOME Rents ........................... 42
Appendix 5: HUD Utility Allowance Limits ............................................................................... 43
Appendix 6: Calculating Income Eligibility ................................................................................. 44
Appendix 7: Rental Compliance Monitoring Guide ..................................................................... 45
Appendix 8: Closing Checklist ..................................................................................................... 46
Appendix 9: Affirmative Fair Housing Marketing Plan ............................................................... 47
Appendix 10: CHDO Application ................................................................................................ 48
Page 3
I. Introduction
The HOME Program was created by the National Affordable Housing Act of 1990 (NAHA) and
is designed to strengthen public-private partnerships and to expand the supply of decent, safe,
sanitary, and affordable housing.
HOME funds are used to achieve the following objectives:
To provide decent affordable housing to lower-income households.
To expand the capacity of non-profit housing providers.
To strengthen the ability of state and local governments to provide housing.
To leverage private sector participation.
Eligible activities are defined in accordance with the following categories:
Housing rehabilitation,
Homebuyer activities,
Rental housing activities, &
Tenant-based Rental Assistance (TBRA).
The HOME Investment Partnership Program (HOME) is designed to assist communities- often
in partnership with local, not-for-profits, individuals, corporations, and public entities- to fund a
wide range of affordable housing projects. The Hudson County Consortium (the “Consortium”)
for the HOME Program includes the eleven communities in the Hudson Urban County, East
Newark, Guttenberg, Harrison, Kearny, Secaucus, Weehawken and West New York as well as
the Entitlement municipalities of Bayonne, Hoboken, Union City, and North Bergen. The City
of Jersey City is the direct recipient of HOME funds and is not included in the Consortium.
The Hudson County Consortium utilizes its HOME Program allocation to carry out activities that
provide funds for the rehabilitation of very low and low income homeowners' units; to increase
homeownership opportunities for very low and low income persons and families; and to increase
the supply of affordable rental units for very low and low income persons at or below 80% of the
Jersey City, New Jersey HUD Metropolitan area median income. These activities are consistent
with the priorities set forth in the Hudson County Consortium's Consolidated Plan.
Although many types of activities are eligible under the federal HOME Investment Partnership
Program (HOME) regulations, applications for funds must be in conformance with the housing
priorities in the Consortium’s submitted 2015-2019 Consolidated Plan. These priorities include:
Page 4
Supporting the creation of new rental units through new construction or rehabilitation.
Within this priority, there is also a focus on creating housing for individuals and families
(under 55) and permanent housing for homeless individuals and families.
Priority will be given to any project that is consistent with County initiatives, including
but not limited to: ending veteran homelessness, housing for the very-low and extremely-
low income, and redevelopment of foreclosed or abandoned properties.
Page 5
II. Distribution of Funding
The Consortium distributes HOME funds geographically within the 11 municipalities listed
above and among different categories of housing need, according to the priorities identified in its
approved consolidated plan. The Consortium only invests HOME funds in eligible projects
within its boundaries, or in joint projects within the boundaries of contiguous local jurisdictions,
which serve residents from both jurisdictions.
The Hudson County Consortium municipalities include all Hudson County municipalities except
the City of Jersey City which has its own HOME allocation and may only be funded by the
Hudson County Consortium in select circumstances. In order for the Division to fund projects in
the City of Jersey City, the applicant must have a documented commitment from Jersey City and
units developed must be for populations that are consistent with the County’s priorities such as
homeless veterans and families.
Applications for Hudson County HOME funds are accepted on a rolling basis. Before
committing funds to a project, the County of Hudson evaluates the project and will not invest
any more HOME funds, in combination with other governmental assistance, than is necessary to
provide affordable housing.
Recognizing that Hudson County HOME funds are limited, funds are typically intended to
provide gap financing for development projects and to fund projects that would otherwise not be
available in the community.
A link to Hudson County’s online HOME application may be found through this link or a paper
copy may be requested by contacting the Housing & Community Development office.
Page 6
III. Eligible Projects
A. Eligible Activities
HOME funds may be used to develop and support affordable rental housing and homeownership
units. HUD regulations mandate that all housing supported with HOME funds must be
permanent. Below is a list of eligible activities:
New construction
Rehabilitation
Reconstruction
Conversion
Site improvements
Acquisition of property
Acquisition of vacant land if construction will begin on a HOME project within 12
months of purchase. Land banking is prohibited.
Demolition of an existing structure may be funded through HOME only if construction
will begin on the HOME project within 12 months.
Relocation costs
Refinancing
Initial operating reserve
Project-related soft costs
Community Housing Development Organization (CHDO) Costs
B. Eligible Property Types
Both single site and scattered site developments are eligible for the HOME program. Single site
developments are one or more buildings on one site that are under common ownership,
management, and financing. Buildings scattered on more than one site as long as the sites are
under common ownership, management, and financing, are eligible to received HOME
assistance as part of a single undertaking.
Page 7
Single Room Occupancy (SRO)/Group Housing
Permanent SRO’s and group housing are eligible under the HOME Program, though they will
not receive priority points. SROs are subject to more stringent underwriting guidelines and,
minimally, must provide a set-aside of units with deep affordability for extremely low income
persons. SROs must generally comply with rental housing guidelines. Specific guidance is
available through CPD Notice 94-01 “Using HOME funds for Single Room Occupancy (SRO)
and Group Housing” available from the County. Please request this notice if you are applying for
such a project.
Mixed-Income/ Mixed-Use Projects
Mixed-income and mixed-use (i.e. residential and commercial) are eligible for HOME funds in
the affordable portions of the building. However, project costs must be allocated on a rational,
documented basis in accordance with the actual unit-by-unit expenditures; or prorating of
expenditures reflecting the proportion of HOME units in the project; or a combination of both.
In a mixed-income project, designated HOME-assisted units may change over time (called
“floating units as long as the total number of affordable units remains the same and the
substituted units are comparable in size, features, and number of bedrooms.
Tax Credit Funded Properties
Tax credits and HOME funds may be used together and for the most part the rules are
compatible. The general rule is that when Tax Credit and HOME rules conflict Tax Credit rules
are to be followed. Any project receiving Tax Credit and HOME funds requires a layering
review to ensure that the project is not receiving an excess amount of subsidy.
Ineligible properties include: projects assisted under title VI of NAHA- Prepayment of
Mortgages Insured under the National Housing Act; Public Housing projects; Rental
Rehabilitation Program funded projects; properties with existing obligations to any federal, state,
or local housing program.
C. Site and Neighborhood Standards
Housing provided through the HOME program must promote greater choice of housing
opportunities. Specifically:
HOME funded housing must be suitable form the standpoint of facilitating and furthering
full compliance with Title VI of the Civil Rights Act- 1964, the Fair Housing Act and
Executive Order 11063.
New construction rental projects must meet the site and neighborhood standards from
24CFR 983.6(b), which places limiting conditions on buildings in areas of minority
concentration and that are racially mixed.
The Consortium will consider siting and neighborhood standards during the application process.
Neighborhood amenities such as access to transportation, healthcare facilities, supportive
services, targeted development areas, environmentally safe areas, and access to grocery stores
and banking will be considered.
Page 8
The Consortium will also place priority on project sites that do not have any known
environmental hazards. The County must conduct an environmental review on every project. It is
the responsibility of the owner to ensure that the County has all the information necessary to
complete the review. Project may not begin and funds may not be expended until the review is
completed and funds are released by HUD.
D. Forms of Subsidy
HOME allows for a variety of forms of financial assistance to be provided for eligible projects
and to eligible beneficiaries. The Consortium’s approach to providing HOME funds is to provide
the "gap" financing necessary to make the project affordable under the HOME rental / purchase
and income guidelines. The focus of this type of underwriting is to maximize private financing
and minimize HOME funds. Some forms of assistance will require legal instruments for
implementation. HOME regulations list the following forms of assistance as eligible:
Interest or non-interest bearing loans or advances
Deferred Loans (forgivable or repayable)
Grants
Interest Subsidies
Equity Investments
Applicants may propose any of the forms listed above; however the Division determines what
forms of assistance it will provide. In general the Division provides funds in the form of loans.
Projects that can be completed solely with private financing are not eligible.
Detailed underwriting standards for rental housing projects are noted under the rental housing
section of these guidelines.
E. Subsidy Limits
The minimum amount of HOME funds that must be invested in a project involving rental
housing or home ownership is $1,000 times the number of HOME-assisted units in the project.
Maximum per unit subsidy amounts are included in Appendix 2: Subsidy Limits.
Actual funding levels will vary project by project and may be lower based on cost
reasonableness and needs of project.
F. Eligible Beneficiaries/Residents
The Hudson County HOME Program is designed to provide affordable housing to low and very-
low-income households and individuals living in Hudson County. For local income limits and
Fair Market Rents as defined by HUD, please see Appendix 3: HUD Area Income Limits.
Page 9
While different restrictions apply to each type of activity, the method for calculating income is
the same. The annual income definition found at 24 CFR Part 5 is used by a variety of Federal
programs including Section 8, public housing and the Low-Income Housing Tax Credit Program
and will be used as the qualifying standard for all County of Hudson HOME programs.
The Part 5 definition of annual income is the gross amount of income of all adult household
members that is anticipated to be received during the coming 12-month period by all adult
household members (everyone 18 years of age and older).
Detailed instructions for calculating annual income and determining eligibility for residents can
be found in Appendix 6: Calculating Income Eligibility or completed using HUD’s online
calculator at https://hudexchange.info/incomecalculator.
Rental Projects
For rental projects with four or fewer HOME units, all households must be at or below 60% of
Area Median Income (AMI). For projects with five or more units, 20% of the households must
be at or below 50% of AMI and the remaining 80% of the units must be at or below 60% of
AMI.
Units with multiple sources of funding may be governed by HOME rules as well as other
restrictions. In these cases, the stricter of the two regulations will apply. For example, tenants of
HOME-assisted units that have been allocated low-income housing tax credits by a housing
credit agency pursuant to section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) must
pay rent governed by section 42.
To ensure ongoing compliance owners must establish systems to re-certify tenant income on an
annual basis. Recertification documents will be monitored by the Division. Units must remain
affordable for the duration of the affordability period. These provisions are provided in Section
G below. For additional guidance, please see the Rental Compliance Monitoring Guide in
Appendix 7: Rental Compliance Monitoring Guide.
Homeowner Projects
Eligible homebuyers must meet the following requirements:
Household must be at or below 80% of area median income (At time of purchase);
Household will ultimately use the dwelling unit as their principal residence; and
Household will ultimately legally own the dwelling unit/property (as evidenced though a
fee simple title, 99 year leasehold interest, or equivalent form of ownership approved by
the County of Hudson)
Hudson County Continuum of Care
The Hudson County Alliance to End Homeless (HCAEH), the local administrator of the
Continuum of Care, operates under Coordinated Assessment. All supportive housing for the
homeless constructed with Hudson County HOME funds must fill those units through the
Coordinated Assessment process. Please see the Coordinated Assessment Policies under the
Library Tab. The U.S. Department of Housing and Urban Development is encouraging
Page 10
communities to use resources such as the HOME Program to assist in the creation of permanent
housing for the homeless with a focus on the chronically homeless. As such the creation of such
housing is a priority in our Consolidated Plan and the HOME application review.
In addition, the Veteran Committee of the HCAEH has established a working list of homeless
veterans in Hudson County. All projects proposing to serve homeless veterans must work with
the Committee and only take referrals from this list.
If you would like further information on how to use HOME funds to assist the homeless please
refer
to
CPD
Notice
03-08
which
is
available
at
the
following
website:
http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/notices/index.cfm
Page 11
IV. Long Term Affordability and Occupancy Requirements
A. Rental Projects
The Consortium will provide initial maximum rent limits for each funded project, which may not
exceed the published HOME Rents. For projects with five or more HOME units, 20% of the
units must be at or below the following Low HOME rent and the remaining units must be below
the High HOME rents. The Consortium may designate more than the minimum HOME units in
a rental housing project to have Low HOME rents. The rent limit includes both rent and a utility
allowance. If an applicant chooses to not include utilities in the rent, the rents must be reduced
by the applicable allowances. Allowances are based on building type. Current rent limits and
utility allowances are attached in Appendix 4 and Appendix 5.
The Division will allow the developer to determine if the assisted units are “fixed” or “floating”.
A “fixed” unit is when the owner applies funding requirements to specific units
throughout the affordability period.
A “floating” unit is when the units designated as HOME assisted may change over the
term of affordability, as long as the number of HOME assisted unit in the project remains
constant.
Whether units are fixed or floating, there always has to be the required amount of designated
HOME units in the projects.
Every unit assisted with HOME funds is subject to annually updated rent limits. The maximum
HOME rent limits are recalculated on a periodic basis after HUD determines fair market rents
and median incomes. Regardless of changes in fair market rents and in median income over time,
the HOME rents for a project are not required to be lower than the HOME rent limits for the
project in effect at the time of project commitment.
The Division must review and approve rents for each HOME-assisted project annually. The
Developer must submit proposed rents to the Division each year (during the period of
affordability) for review and approval. Undue rent increases from year to year are prohibited.
If the assisted unit has multiple subsidies, e.g. HOME and LIHTC the more restrictive guidelines
must be met for the rent and income limits. Any increase in rents for HOME-assisted units is
subject to the provisions of outstanding leases, and in any event, the owner must provide tenants
Page 12
of those units not less than 30 days prior written notice before implementing any increase in
rents.
Additional information on rent limits can be found in the Consortium’s Rental Compliance
Guide included in Appendix 6.
Lease Requirements
The lease between a tenant and an owner of rental housing assisted with HOME funds must be
for not less than one year, unless by mutual agreement between the tenant and the owner. There
are a number of prohibited lease provisions. Lease requirements can be found at §92.253.
Further lease and compliance information may be found in the Consortium’s Rental Compliance
Monitoring Guide found in Appendix 6.
Affordability Compliance Period
The minimum length of an affordability period depends on the amount of the HOME Investment
in the property and the nature of the activity:
HOME Investment per Unit
Minimum Affordability Period
Less than $15,000
5 years
$15,000-$40,000
10 years
More than $40,000
15 years
New Construction or acquisition of newly
constructed rental housing
20 years
Refinancing of rental housing
15 years
The Division reserves the right to impose longer affordability periods on a case by case basis.
Throughout the period of affordability, income eligible households must occupy the assisted
units. When designated rental units become vacant during the period of affordability, subsequent
tenants must be income eligible and must be charged the applicable rent. In projects in which the
HOME units are designated as floating, tenants who no longer qualify as low-income are not
required to pay as rent an amount that exceeds the market rent for comparable, unassisted units
in the neighborhood.
Tenants who no longer qualify as low-income (exceeding 80% of Area Median Income) families
must pay as rent:
1. The lesser of the amount payable by the tenant under State or local law; or
2. 30 percent of the family’s adjusted income.
B. Homeowner Projects
All units must be sold at or below the HOME Unit Sale Limits (95 percent of the median
purchase price for the area for the specified housing type) to an eligible buyer at or below 80
Page 13
percent area median income. The sale price must be such that the amount of Principal, Interest,
Taxes, and Insurance does not exceed 35 percent of the Buyer’s annual income.
Unit prices may vary (underneath this limit) based on neighborhood trends, target buyers, and
project underwriting.
The sale of a property and any assistance to a homebuyer require that the buyer be underwritten
according to the County’s HOME project underwriting guidelines for homebuyers. This
underwriting will include standards for the first mortgage and establish the terms for any
subordination of the HOME loan.
If HOME funds are used to help a purchase/acquire one or more rental units along with the
homeownership unit, the HOME rental affordability requirements apply to the rental units.
The ownership interest may be subject only to the following:
Mortgages, deeds of trust or other debt instruments approved by the County of Hudson;
or
Any other encumbrances or restrictions that do not impair the marketability of the
ownership interest, other than the HOME Program restrictions on resale.
All homeowners must be provided homebuyer counseling prior to purchase.
Forgiveness of homebuyer debt will be conditioned on the requirement that the properties must
be maintained in accordance with minimum local codes and standards throughout the
affordability period.
Resale and Recapture Policy
To ensure investments provide affordable housing over the long term occupancy restrictions
continue throughout the period of affordability. If a home purchased with HOME assistance is
sold during the period of affordability resale provisions apply to ensure the continued provision
of affordable housing over the entire period of affordability. Resale provisions are used because
the Hudson County HOME program does not provide direct assistance to the homebuyer.
If the housing does not continue to be the principal residence of the family for the duration of the
period of affordability, that housing must be made available for subsequent purchase only to a
buyer whose family qualifies as a low-income family and will use the property as its principal
residence.
The minimum length of an affordability period depends on the amount of the HOME Investment
in the property and the nature of the activity:
HOME Investment per Unit
Minimum Affordability
Period
Less than $15,000
5 years
$15,000-$40,000
10 years
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More than $40,000
15 years
The Division reserves the right to impose longer affordability periods on a case by case basis.
All designated HOME-assisted property sales or transfers under the resale provision during the
period of affordability shall meet the following criteria:
1. Sales prices shall be set such that the amount of Principal, Interest, Taxes, and Insurance
does not exceed 35 percent of the new Buyer’s annual income. Exceptions may be made
for multi-unit HOME-assisted housing to account for rental income as needed.
2. The new purchaser must meet the criteria of low income, having an income between 60%
and 80% of AMI, and occupy the property as the family’s principal residence.
3. Net proceeds from the sale must provide the original homebuyer, a “fair return” on
his/her investment (including any down payment and capital improvement investment
made by the seller since purchase). The sales price may encompass the following in its
formula:
a. The cost of any capital improvements documented with receipts including but
not limited to the following:
i. Any additions to the home such as a bedroom, bathroom, or garage;
ii. Replacement of heating, ventilation, and air conditioning systems;
ii. Accessibility improvements such as bathroom modifications for
disabled or elderly which were not installed through a federal, state, or
locally funded grant program; and
iv. Outdoor improvements such as a new driveway, walkway, retaining
wall, or fence.
b. The increase in the value of owner equity and investment as calculated by the
cumulative percentage of change as calculated by the Housing Price Index (HPI)
calculator
of
the
Federal
Housing
Finance
Agency
http://www.fhfa.gov/DataTools/Tools/Pages/HPI-Calculator.aspx and projects
what a given house purchased at a point in time would be worth today if it
appreciated at the average appreciation rate of all homes in the area.
The resale policy is enforced through the use of restrictive covenants. The restrictive covenant
will include the following:
1. Length of affordability;
2. Requirement that the home remain the buyer’s principal residence throughout the
affordability period; and
3. The conditions and obligations of the owner, should the owner wish to sell before the
affordability period has expired , including:
a. Owner must notify the Hudson County Division of Housing and Community
Development in writing if the wish to sell a HOME-assisted unit during the
affordability period;
Page 15
b. The subsequent purchaser must be between 60% and 80% AMI and occupy
the home as their primary residence;
c. The sales price must be affordable to the subsequent purchaser; affordable is
defined as limiting the principal, interest, taxes and insurance total amount to
no more than 30% of the new purchaser’s monthly income.
Throughout the period of affordability, income eligible households must occupy the assisted
units. When designated rental units become vacant during the period of affordability, subsequent
tenants must be income eligible and must be charged the applicable rent.
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V. Funding and Underwriting
A. Application
Applications to the HOME program are accepted on a rolling basis. The application may be
found and completed online through this link. Please contact the Hudson County Consortium
directly to receive a paper copy. Only complete applications will be reviewed.
Applicants and developers must be in compliance at all existing Hudson County Consortium
funded developments in order to be eligible for new funding.
B. HOME Subsidy Layering and Underwriting Policy
Before committing funds to a project, the Consortium will evaluate each application to determine
the feasibility and eligibility. The experience of the project sponsor or developer in the field of
housing development, rehabilitation and/or housing management will be assessed. In addition,
the financial stability and quality of the project will be evaluated by the Division. This will
include, at a minimum, an examination of the sources and uses of funds for the project and a
determination that the costs are reasonable; and an assessment of the current market demand in
the neighborhood in which the project will be located, level of site control, amount of funding
required, level of displacement and firm written financial commitments for the project.
General Underwriting Guidelines
a. Debt Service Coverage Test. Net operating income, after vacancy reserve and expenses,
must be at least 115 percent (1.15 DCR) of the total annual debt service payments due
from loan financing, if applicable.
b. Minimum vacancy allowances of at least 5% will be used for underwriting purposes.
Higher vacancy allowances may be used for smaller projects, consistent with sound
underwriting practice.
c. The Division will underwrite stabilized operating expenses as if the property were owned
and managed at “arm’s length”, as in foreclosure. Management fees of 4-6% annually
will be based on those commonly available in the market, and appropriate reserves based
on scale and construction type will be used for replacement of capital items.
Page 17
d. The construction and rehabilitation budget must be adequate to complete the proposed
work and bring the property into full code compliance.
e. If additional funding is received from either a state or federal program, the more stringent
regulations of either the other program or the HOME Program shall apply.
The County reserves the right to request a letter of credit, a payment and performance bond, or
other liquid security acceptable to the County, to ensure successful completion of the project.
The bond will be required for the amount of construction or rehabilitation being financed. The
bond must be provided by a recognized bonding company or guarantor acceptable to the
Department. The amount of a letter of credit will be determined by the County. This letter of
credit is particularly important when an owner is acting as a general contractor. In such a case the
County will request a letter of credit in an amount equal to the difference between the
contractor's cost and the County's cost to hire a general contractor through a public bidding
process. Letters of credit must be irrevocable, non-documentary, issued by a reputable bank
approved by the County and in a form acceptable to the County. Other forms of security will be
subject to County approval. The Department will consider alternative forms of surety that both
insulate the Consortium from construction risk, and promote the affordability goals of the
program.
The Division may rely upon the guidelines developed and/or evaluations conducted by other
agencies, such as when Low Income Housing Tax Credits (LIHTC) or New Jersey Housing and
Mortgage Finance Agency.
C. Commitment Letter
Upon review of the completed application package, a positive or negative recommendation to
fund the project will be made to the County Administrator and the County Executive. The
Project sponsor will be advised, in writing, of the Consortium’s approval of the application.
Once an application is approved, a funding commitment letter will be prepared which describes
the specific terms of the grant/loan, including rate, amount, collateral, equity requirements, and
affordability requirements. The Commitment letter will also specifically identify which units
will be HOME assisted and how many are designated as High and Low HOME units.
D. Administrative Plan
An administrative Plan (the “Plan”) must be submitted by the project sponsor to the Division
prior to closing. The Plan must provide detail of the project throughout the construction period
and lease-up. The Plan will be used by the Division to estimate the payment schedule and
monitor the progress of the project. The Plan may be based on the budget and timetable that
were submitted in Rental Production Program application. The Plan must include, at a
minimum, the following items:
Page 18
a. A schedule of construction and/or rehabilitation activities detailing when items will start
and finish, as well as which items will overlap. The schedule should include all activity
that will take place after the loan contract has been executed.
b. A complete description of the staff responsible for the implementation of the project.
The staff description should include the person responsible for the submission of payment
vouchers and monthly reports, as well as the person on site who will be in charge of daily
activity.
c. A sample monthly monitoring report to be used by developers of construction and/or
rehabilitation projects. The report should compare actual progress and expenses with the
original schedule and budget. The report should provide space to explain any variances.
d. Any information unique to the project should be detailed in a narrative and incorporated
into the schedule, if necessary.
E. Closing Documents
Depending on the type of funding provided, the applicable legal documents will be executed.
This typically includes the mortgage, note, regulatory agreement and deed restriction. Various
documents will be required before the closing may proceed. Please see the Closing Checklist in
Appendix 8: Closing Checklist.
F. Drawdown Process
Beginning of Construction
Construction may not begin on an approved project until the development has been awarded
HOME funds and has closed with the County. Costs incurred prior to this date are ineligible for
reimbursement.
Release of Funds
All owner equity must be invested in the project prior to the release of any County funds. Prior to
the initial release of funds all applicable items on the project checklist included in Appendix 8
must be satisfied. All requests for payment must include an invoice on agency letterhead and the
proper Hudson County voucher. Items submitted for reimbursement must include a copy of the
original invoice and a copy of the cashed check or bank record. Construction draws will be
permitted on a monthly basis. An executed Application & Certificate for Payment (AIA) form
must accompany all construction drawdown requests. Correct and complete draw requests
submitted by the 5th of the month will be processed for payment by the end of the month.
There will be a maximum of 10% retainage on each contract or subcontract until all work under
that contract is completed, lien release is obtained and until the issuance of Certificates of
Occupancy by the local municipality.
Taxes, insurance, and debt service payments on the construction loan must be current at the time
of each draw. In addition, all of the project sponsor's reporting requirements (construction
schedule, draw schedule, Administrative Plan, Affordable Housing Agreement, or other
Page 19
requirements of the commitment or closing documents) must be current to the satisfaction of the
Division.
Construction inspections will be conducted by staff of the Division in consultation with the
project sponsor and the project architect, as necessary.
Final Payment
At the completion of construction, each project sponsor will be required to submit a detailed cost
certification form, certified as true and accurate by the borrower. This form will, at a minimum,
show budgeted costs, as approved at the time of the funding commitment. The form must show
the costs actually incurred, and must be supported by paid receipts and a comparison must be
made between real and projected costs. If actual costs are less than budgeted costs, the amount of
the funds may be reduced at the discretion of the Department.
In order to receive final payment the project sponsor must satisfy all items listed in the closing
portion of the checklist in Appendix 8.
G. Deadlines for Completion and Occupancy
Rental
Within 4 years of contract execution rental projects must be complete; meaning 100% of HOME
funds has been disbursed for the project. Once construction is complete, the property has 18
months in which to achieve 100 percent occupancy. However, both construction and lease-up
may not exceed 5 years in total.
The HOME-assisted units in a rental housing project must be occupied by households that are
eligible as low-income families and must meet the requirements of this section to qualify as
affordable housing. If eligible tenants do not occupy the housing within six months following the
date of project completion, the Developer must submit marketing information and, if appropriate,
a marketing plan.
HOME funds invested in any housing unit that has not been rented to eligible tenants 18 months
after the date of project completion shall be repaid to the County of Hudson and/or HUD.
Homeowner
All projects must complete construction and sell the units with transfer of title within 4 years of
the commitment of HOME funds. In addition, any unit not sold within 9 months (6 months for
projects funded under county action plans 2013 and earlier) of the completion of construction
must be converted to rental and meet all of the requirements for HOME rental housing. HOME
funds provided for any such unit that is not rented within 18 months of conversion must be
repaid to the County.
H. Lease- up and Affirmative Marketing Program
Property Management Policies
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All HOME program participants must comply with all state and federal laws and regulations
regarding fair housing and equal opportunity. No person in the United States shall on the grounds
of race, color, national origin, religion, sex, or sexual orientation, be excluded, denied benefits,
or subjected to discrimination under any program funded in whole or in part by HOME funds.
Rental
All projects must develop and submit a tenant selection plan to the county for approval that
includes, at a minimum, the following items:
Are consistent with the purpose of providing housing for very low and low-income
families;
Are reasonably related to program eligibility and the applicant’s ability to perform the
obligations of the lease;
Provide for the selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and
Give prompt written notification to any rejected applicant of the grounds for any rejection.
The developer must use fair marketing practices when leasing HOME units. The County of
Hudson will review and approve the developer’s marketing policy as part of the application
review and it will incorporate the policy as part of the funding agreement.
Developers/owners must distribute to residents:
All applicable HUD or Environmental Protection Agency (EPA) approved pamphlets
“Renovate Right” Brochure (prior to any repairs that may disturb lead based paint in
home built prior to 1978).
“Protect Your Family from Lead in Your Home”
“Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards”
signed by renters prior to their becoming obligated under a rental
The County of Hudson requires that developers/owners obtain evidence of tenant
receipt of any pamphlet distributed. Owners may create their own receipt of disclosure.
The owner cannot refuse to lease HOME-assisted units to persons with a voucher for Section 8
Tenant-Based Assistance.
Homeownership
The developer must use fair housing marketing practices when selling HOME units, as required
by the Fair Housing Act (4.2 U.S.C. 3601-29). The County will review and approve the
developer’s marketing policy as part of the application review and it will incorporate the policy
as part of the funding agreement.
Affirmative Fair Housing
Recipients of HOME funds are held to Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d-2000d-4), the Fair Housing Act (42 U.S.C. 3601 et seq.), E.O. 11063 20 Title VI of the
Civil Rights Act of 1964, P. L. 88-352 and the regulations of HUD with respect thereto,
including 24 CFR, Parts 1.
HOME recipients are prohibited from discriminating on the basis of:
Page 21
Race
Color
Religion
National origin
Disability Status (Including prior Alcohol & Illegal Substance Addictions)
Familial status
Ethnicity
Gender
Gender Identity
Language(s) Spoken
Literacy
Sexual Orientation
Veteran Status
Discrimination is prohibited in the assistance, tenant selection, sale, rental, and financing of
dwellings. It is also prohibited in program administration and any enforcement mechanisms.
In accordance with the regulations of the HOME Program 24 CFR 92.350 and 92.351; and in
furtherance of the Hudson County Consortium's commitment to nondiscrimination and equal
opportunity in housing, the Consortium has established procedures and requirements to
affirmatively market units built or rehabilitated under the HOME Program containing five or
more housing units Please see Appendix 9: Affirmative Fair Housing Marketing Plan for the
Affirmative Fair Housing Marketing Plan HUD form.
The Consortium believes that individuals of similar economic levels in the same housing market
area should have available to them a like range of housing choices regardless of their race, color,
religion, sex and national origin. The Consortium is committed to the goals of affirmative
marketing which will be implemented through a specific set of steps that the Consortium and
participating owners will follow. These goals will be reached through the following procedures:
i.
Informing the General Public, Potential Owners and Tenants About Federal Fair
Housing Laws and the Consortium's Affirmative Marketing Policy
The Hudson County Division of Housing and Community Development will inform the
general public about fair housing laws and the Consortium's affirmative marketing policy
through press releases, news articles, and advertisements in the local newspapers, i.e. the
Jersey Journal and at least one widely circulated local Spanish language newspaper. It
will conduct technical meetings with the representatives of local housing/tenant
organizations, municipalities, non-profit groups and concerned citizens. It will clearly
display the "Equal Housing Opportunity" logo or slogan in all announcements regarding
the program. The Consortium will also make copies of its "Affirmative Plan" available
to the public.
a)
Informing Owners
The Consortium will inform owners of the Federal Fair Housing Laws and the
Consortium's affirmative marketing policy prior to the approval of their projects
as a HOME assisted project. In addition, property owners will via a letter of
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Certification and Assurance that they will comply with Title VI, Title VIII and
Executive Orders 11063 and 11246.
b)
Informing Potential Tenants
The Consortium will contact one or more tenant or public service organizations,
in the housing market area that serves lower income people to inform potential
tenants about Federal Fair Housing laws and the Consortium's affirmative
marketing policy.
ii.
Affirmative Marketing Procedures for Informing Persons in the Housing Market Area
about Units
Property owners (developers and sponsors) will assume this responsibility under their
contracts with the Hudson County Consortium as they participate in the HOME Program.
Owners, often in cooperation with community groups and social service providers, will
advertise or solicit prospective tenants. At a minimum, owners will be required to use the
"Equal Housing Opportunity" logos in advertising. Owners also will be required to
conduct tenant solicitation and selection according to applicable Fair Housing law.
Project signs used during construction will also contain the "Equal Housing Opportunity"
logo.
The Hudson County Consortium will require that property Owners, selected for program
participation, to honor affirmative marketing contract stipulation indicating non-
compliance may result in foreclosure proceedings.
All projects will be affirmatively marketed through:
a.
the local media, including Hispanic newspapers;
b. local service agencies and non-profits.
iii.
Procedures to be used by Owners to Inform and Solicit Applications From Persons in
the Housing Market Area Who Are Not Likely to Apply for Housing Without Special
Outreach
U.S. 2010 Census data indicates that the Hudson County Consortium is the residence of a
substantial Hispanic population. Due to the language barrier, it is believed that this group
is least likely to apply for rehabilitated housing without special outreach. An analysis of
tenant racial characteristics occupying rehabilitated units is indicative of this fact.
Program advertisement will be placed in newspaper publications within the Hispanic
community and will appear in Spanish.
Each owner will be required, as part of the agreement for assistance, to:
a.
Use the "Equal Housing Opportunity" logo, slogan, or statement in all
advertising.
b. Where appropriate to advertise, use media, including minority outlets, likely
to reach persons least likely to apply for the housing.
c.
Accept a fair housing policy.
d. Where there is a project sign, display the "Equal Housing Opportunity" logo.
Page 23
e.
Work cooperatively with the various County and non-profit agencies who
serve individuals and families in the target income groups.
iv.
Record Keeping
In accordance with HUD requirements, Section 511.71(a)(2), the Consortium will, to the
greatest extent possible, secure and keep data on the racial, ethnic and gender
characteristics of the tenants:
a.
occupying units before HOME assistance;
b. moving from and into projects after HOME assistance;
c.
applicants for tenancy, 90 days following completion of rehabilitation.
Property owners will also keep records of:
a.
copies of ads placed in the Jersey Journal or other publication as required;
b. records of dates with tenants;
c.
records of dates of meetings and descriptions of attendees;
d. letters to agencies and organizations for special group outreach for each
HOME assisted unit
e.
applications for units by prospective tenants.
v.
Assessment to Affirmative Marketing Effort of All Participants
The affirmative marketing efforts of project sponsor will be assessed as follows:
a. To measure good faith efforts - examine records required of owners to be
maintained on actions they have taken, and compare them with the actions
required to be taken. If the required actions have been carried out, where
possible, as specified, it will be assume the owners have made good faith
effort to carry out these procedures.
b. To determine results - assess property owner's affirmative marketing efforts in
relation to whether or not persons from a variety of racial and ethnic groups in
the area, and particularly groups who ordinarily would not apply, have applied
and become tenants in the rehabilitated units. If it is found that they have, it
can be assumed that the owners have effectively carried-out the specified
Affirmative Marketing Procedures.
If the representation of racial/ethnic group is not broad or the least likely to apply group
is not represented, the Consortium will review the Affirmative Marketing Procedures to
determine what changes, if any, might be made to make more effective the affirmative
marketing efforts in informing persons in all groups about rental opportunities.
vi.
Corrective Action
The Consortium will take corrective action if it is determined that a property owner has
failed to carry out the required procedures or fails to maintain records on tenants and
applicants. If, after discussions with the owner on the methods used to meet the
affirmative marketing requirements, the owners continues to fail to meet the affirmative
marketing requirements, and the owners has been given an opportunity to correct
identified deficiencies, the Consortium may disqualify the owner from further
Page 24
participation in future housing programs administered by the Consortium and/or legal
action.
VI. Federal Requirements
A. Housing Accessibility
Most housing properties fall under several different laws. Federal programs and the age of the
property determine which laws apply.
Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) protects race, religion, sex
and national origin
The Fair Housing Amendments Act of 1998 (Amendments Act - FHAA) added disability
and familial status
The Americans with Disabilities act (ADA) of 1990 addresses public accommodations
(rental offices and common areas are considered public accommodations)
For more information on the Americans with Disabilities Act, visit the Department of
Justice ADA Home Page. http://www.ada.gov/
Section 504 of the Rehabilitation Act of 1973 (Section 504) applies to those receiving
federal assistance
For more information, see the Reasonable Accommodations section of the Section 504
Frequently Asked Questions page.
http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/disa
bilities/sect504
B. Employment and Contracting
Equal Opportunity
HOME recipients must comply with the following regulations that ensure equal opportunity for
employment and contracting.
Equal Employment Opportunity, Executive Order 11246, as amended: Prohibits
discrimination against any employee or applicant for employment because of race, color,
religion, sex or national origin. Provisions to effectuate this prohibition must be included
Page 25
in all construction contracts exceeding $10,000. Implementing regulations may be found
at 41 CFR Part 60.
Section 3 of the Housing and Urban Development Act of 1968: Requires that, to the
greatest extent feasible, opportunities for training and employment arising from HOME
will be provided to low-income persons residing in the program service area. Also, to the
greatest extent feasible, contracts for work (all types) to be performed in connection with
HOME will be awarded to business concerns that are located in or owned by persons
residing in the program service area.
Outreach to Minority and Women's Business Enterprises
The Hudson County Consortium encourages the use of minority and women-owned businesses
pursuant to Section 281 of the HOME Investment Partnerships Act and 24 CFR 92.350.
Accordingly, the Consortium has adopted the following policies to ensure HOME funded
agencies make a good faith effort to affirmatively assure that minority-owned and women-owned
businesses are afforded contracting opportunities.
This policy applies to all contracts, subcontracts and procurements for services (including
engineering and legal), supplies, equipment, and construction. The goal of this policy is to make
MBE/WBE firms aware of contracting opportunities to the fullest extent practicable through
outreach and recruitment activities. To achieve this goal, the affirmative steps that must be
followed are:
1. Include qualified small and minority businesses and women’s business enterprises on
solicitation lists;
2. Ensure that small and minority and women’s businesses are solicited whenever they are
potential sources of products or services to be bid;
3. Include the statement “minority and women owned businesses are encouraged to
apply” in all bid/solicitation documents
4. Divide total requirements, when economically feasible, into smaller tasks or quantities
to permit maximum participation by small and minority business, and women business
enterprises;
5. Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority business and women business enterprises;
6. Using the services and assistance of the Small Business Administration and the
Minority Business Development Agency of the Department of Commerce; and
7. Require the Prime Contractor to take affirmative steps as outlined in items one through
six above to subcontract with small and minority and women’s businesses, if they award
subcontracts.
Hudson County maintains a list of businesses in the Office of WMBE. Sponsors will be provided
with a list prior to construction bidding and must document that bid advertisements were shared
with these firms.
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“Good Faith” Effort Compliance Documentation
The recipient of HOME funds must provide documentation to support a “good faith” effort in the
solicitation of MBE and WBE firms.
Copies of announcements/postings in newspapers or other media for specific
contracting/subcontracting opportunities. Include language in announcements/postings
that MBE/WBE firms are encouraged to bid.
Copies of bids obtained
Davis-Bacon Act
Any contract for the construction of Affordable Housing with 12 or more units will require that
all laborers and mechanics who are employed to perform work on any project, or any contractor
or construction work which is financed, in whole or in part, with assistance which is received
under the Housing and Community Development Act of 1974 shall be paid wages at rates which
are not less than those that prevail in the locality for similar construction and shall receive
overtime compensation in accordance with the Contract Work Hours and Safety Standards Act.
The contractor and its subcontractors shall also comply with all applicable Federal laws and
regulations, which pertain to labor standards, including the minimum wage law.
Recipients of HOME funds shall:
Not discriminate against any employee or applicant for employment on the basis of
religion and not limit employment or give preference in employment to persons on the
basis of religion; and
Not discriminate against any person applying for such public services on the basis of
religion and not limit such services or give preference to persons on the basis of religion;
and
Provide no religious instruction or counseling, conduct no religious worship or services,
engage in no religious proselytizing and exert no other religious influence in the
provision of such public services. http://www.hud.gov/progdesc/sec-109.cfm
C. Environmental Review
The environmental effects of each activity carried out with HOME funds must be assessed in
accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and
the related authorities listed in HUD’s implementing regulations at 24CFR parts 50 and 58.
Any funds committed to a HOME activity or project will be conditional on the completion of the
environmental review and approval of the request for release of funds and related certification,
except as authorized by 24 CFR part 58. No HOME funds will be disbursed without the
establishment of an Environmental Review Record and the appropriate level of Review
completed.
D. Lead Based Paint Hazards
The HOME Program requires owners/developers to take actions to reduce lead-based paint
hazards in HOME-assisted units. Owners must comply with 24 CFR 35, the regulations
Page 27
implementing the Lead-Based Paint Poisoning Prevention Act along with requirements for
dealing with lead-based paint found in the Uniform Physical Condition Standards (UPCS).
Current Part 35 requirements stipulate that all occupants receive and acknowledge notice of the
possible presence of lead paint.
Level of Assistance in
Property
Hazard Reduction
Requirements
Summary of Requirements
Assistance of more than
$5,000 per unit up to
and including $25,000
per unit
Interim controls.
Interim controls means a set of measures designed to reduce
temporarily human exposure or likely exposure to lead-
based paint hazards.
Once work is completed a passing a NJ Dept. of
Health LEAD SAFE CERTIFICATE must be realized
for the exterior, common spaces, and all assisted units.
Interim controls include, but are not limited to,
repairs, painting, temporary containment, specialized
cleaning, clearance, ongoing lead-based paint
maintenance activities, and the establishment and
operation of management and resident education programs.
Assistance of more than
$25,000 per unit
Abatement of lead-based
paint hazards.
Abatement means any set of measures designed to
permanently eliminate lead-based paint or lead-based
paint hazards (see definition of “permanent”) on the
exterior, common spaces, and all assisted units. Once work
is completed a passing a NJ Dept. of Health Lead Free
Certificate must be realized for the exterior, common
spaces, and all assisted units.
Abatement includes:
(1) The removal of lead-based paint and dust lead hazards,
the permanent enclosure or encapsulation of lead-based
paint, the replacement of components or fixtures painted
with lead-based paint, and the removal or permanent
covering of soil-lead hazards; and
(2) All preparation, cleanup, disposal, and post
abatement clearance testing activities associated with such
measures.
The Lead-Based Paint Poisoning Prevention Act applies to all units in a property assisted with
HOME funds -- not only to HOME-assisted units. During the compliance review, staff will
monitor to ensure that the owner has conducted all necessary activities and maintained
appropriate documentation in their files.
Owners/developers must be in compliance with 24CFR35 and Sections 302 and 401 (b) of the
Lead-Based Paint Poisoning Prevention Act. This subpart implements the provisions of 42
U.S.C. 4852d, which impose requirements on the sale or lease of housing. The seller or lessor of
housing shall:
Disclose to the purchaser or lessee the presence of any known lead-based paint and/or
lead-based paint hazards;
Provide available records and reports;
Provide the purchaser or lessee with a lead hazard information pamphlet;
Give purchasers a 10-day opportunity to conduct a risk assessment or inspection; and
Page 28
Attach specific disclosure and warning language to the sales or leasing contract before
the purchaser or lessee is obligated under a contract to purchase or lease target housing.
In addition, any disturbance of a painted surface on housing constructed prior to 1978 requires
additional testing, notices and remediation as specified by 24CFR35.
E. Recordkeeping
The County of Hudson, HUD, the Comptroller General of the United States or any of their
authorized representatives, has the right to access the Project and any books, documents, papers
or other records of a HOME assisted unit.
Developers/owners will maintain all books and records pertaining to HOME assisted units with
the provisions of 24 C.F.R. § 92.508 for a period of not less than five (5) years after the
affordability period ends and all matters pertaining to the project (e.g., audit, disputes or
litigation) are resolved under applicable federal or state laws, regulations or policies.
Developers/Owners shall maintain records for inspection by the County as discussed in the
Rental Compliance Monitoring guide found in Appendix 7. The developer/owner will make any
additional records requested available to the County of Hudson upon request.
F. Uniform Relocation Assistance
All owners/developers shall be in compliance with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601 et seq.).
G. Construction Standards
Housing that is constructed or rehabilitated with HOME funds must meet all applicable local
codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project
completion. Specifically, housing must meet the County of Hudson HOME Construction
Standards and must conform to any design plans and specifications provided as part of a
developer or owner application. Projects will be regularly inspected during the construction
period to monitor for progress and compliance.
Newly constructed housing must meet the current edition of the Model Energy Code published
by the Council of American Building Officials.
All other HOME-assisted housing (e.g., acquisition) must meet all applicable State and local
housing quality standards and code requirements and if there are no such standards or code
requirements, the housing must meet the housing quality standards in 24 CFR 982.401.
The housing must meet the accessibility requirements at 24 CFR part 8, which implements
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily
dwellings, as defined at 24 CFR 100.201, must also meet the design and construction
requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 U.S.C. 3601-
3619).
Page 29
Construction of all manufactured housing must meet the Manufactured Home Construction and
Safety Standards established in 24 CFR Part 3280. These standards pre-empt State and local
codes covering the same aspects of performance for such housing.
An owner of rental housing assisted with HOME funds must maintain the housing in compliance
with all applicable State and local housing quality standards and code requirements and if there
are no such standards or code requirements, the housing must meet the housing quality standards
in 24 CFR 982.401.
The following requirements apply to housing for homeownership that is to be rehabilitated after
transfer of the ownership interest:
Before the transfer of the homeownership interest, Hudson County will:
Inspect the housing for any defects that pose a danger to health; and
Notify the prospective purchaser of the work needed to cure the defects and the
time by which defects must be cured and applicable property standards met.
The housing must be free from all noted health and safety defects before occupancy and not later
than 6 months after the transfer. The housing must meet the property standards in paragraph (a)
(1) of this section not later than 2 years after transfer of the ownership interest.
All new buildings and gut rehabilitations shall be designed to meet the National ENERGY STAR
efficiency performance specifications. All projects must comply with the National Home Energy
Rating System guidelines and use ENERGY STAR mechanical systems and appliances. Other
Energy Star and “green” components are encouraged as practicable. Additionally, rental housing
property owners must maintain these housing standards for the duration of the regulatory period.
Periodic inspections will be conducted by the County to insure these standards are complied
with.
H. Financial Management Requirements
Projects and programs receiving HUD funds must abide by the financial management
requirements of the Federal Office of Management and Budgets which pertain to their particular
type of organization, whether it is an institution of Higher Education, a hospital, other non-
profit, a state, a local government, etc. For instance, a CHDO serving as a sub-recipient for the
Consortium and as a development organization has different OMB requirements based on their
activity.
Some of the basic financial requirements are:
OMB Circular A-110: Uniform Administrative Requirements for grants and Agreement with
Institutions of Higher Education, Hospitals and Other Non-Profit Organizations
(http://www.whitehouse.gov/omb/circulars/a110/a110.html);
OMB Circular A-133: Audits of States, Local Governments and Non-Profit
Organizations (http://www.whitehouse.gov/omb/circulars/a133/a133.html );
OMB Circular A-122: Cost Principles for Non-Profit Organizations
(http://www.whitehouse.gov/omb/circulars/a122/a122.html)
Page 30
Audit requirements for non-profit organizations
Non-profit organizations subject to regulations in the part 200 and part 800 series of title
24 of the CFR shall comply with the audit requirements of revised OMB Circular A-133,
“Audits of States, Local Governments, and Non-profit Organizations” (see 24 CFR
84.26). For HUD programs, a non-profit organization is the mortgagor or owner (as these terms
are defined in the regulations in the part 200 and part 800 series) and not a related or affiliated
organization or entity.
For rental projects with 10 or more units financial statements prepared an independent CPA (in
the form of either a formal annual audit or CPA-compiled review) must be annually submitted to
the County of Hudson for review.
The Hudson County Consortium will collect organizational audits during the annual Rental
Compliance Monitoring process.
Fiscal Policies
The owner must submit annual operating budgets to the County of Hudson for review (in a
similar format to the pro-forma). If problems are identified, the County of Hudson may offer
technical assistance and/or request additional documentation and corrective actions.
Page 31
VII. Community Housing Development Organizations
A. Overview
The National Affordable Housing Act of 1990 (the “Act”) created the HOME Investment
Partnerships Program (HOME). The Act’s objectives include (1) promoting partnerships
among states, local governments and nonprofit organizations; (2) increasing the capacity of
nonprofit organizations to develop and manage affordable housing.
To help achieve these objectives the Act requires that Participating Jurisdictions (PJs) set
aside at least 15% of their HOME funds for housing that is developed, owned or sponsored
by Community Housing Development Organizations (CHDOs).
The reason for the 15% set-aside is to:
Provide reasonable supplemental operating funds to CHDOs with the purpose of expanding their
ability to produce housing units. This funding is not intended to serve as a primary source of
funding for the organization. The CHDO should demonstrate the ability to leverage other sources
of funds for future operations and to grow into self-sufficiency.
Increase the organizational capacity of the recipient to allow the organization to develop
HOME Program CHDO-eligible activities such as; transitional housing, permanent
supportive housing, rental housing, and homebuyer activities, within 24 months of
receiving the award.
B. Definition of A CHDO
The HOME Program definition of a CHDO can be found at 24 CFR 92.2
The definition outlines the criteria that an organization must meet to qualify as a CHDO.
The criteria focus on the:
legal status of the organization;
capacity and experience;
organizational structure;
and relationship of the CHDO to for-profit entities
The CHDO checklist outlines these criteria in detail. The following is a summary of some of
the key criteria necessary to qualify as a CHDO.
Page 32
1. Legal Status
1) The CHDO must be organized under state law
2) One of the purposes of the organization must be the provision of decent housing that
is affordable to low-income and moderate-income persons. This statement of purpose
may be evidenced in the organization's charter, articles of incorporation, by-laws, or
board resolutions.
3) The CHDO must be have nonprofit status under §501(c)(3) or (4) of the Internal
Revenue Code of 1986.
4) The organization must have a clearly defined geographic area that is smaller than the
entire state.
2. Capacity and Experience:
1) The CHDO must have at least one year of experience serving the community. This
can be satisfied by a statement that documents at least one year of experience in
serving the community, or for a newly created organization formed by local churches,
service or community organizations, a statement that documents that its parent
organization has at least one year of experience in serving the community. This
service can include developing new housing, rehabilitating housing, managing
housing, or delivering non-housing services to the community such as counseling,
food services, or child care facilities.
2) The organization must have paid employees with housing development experience
who will work on projects assisted with HOME funds. (*for its first year of funding
as a CHDO, an organization may satisfy this requirement through a contract with a
consultant who has housing development experience to train appropriate key staff of
the organization).
3) The CHDO must have financial management systems that meet the federal standards
outlined in 24 CFR 84.21. The most recent version of OMB Circulars A-110 (24
CFR 84) A-133 may be obtained at http://www.whitehouse.gov/omb/circulars
3. Organizational Structure
1) At least one-third of the organization’s board of directors must be representatives of
the low-income community served by the CHDO; no more than one-third may be
representatives of the public sector, including employees of the PJ.
2) The CHDO must also provide a formal process for low-income HOME Program
beneficiaries to advise the organization in all of its decisions regarding the design,
Page 33
development, and management of all HOME Program assisted affordable housing
projects. This provision for accountability to the low- income community, entails, at
a minimum, a written procedure adopted by the board for obtaining input from the
community regarding the delivery of housing whenever HOME Program funds are
used.
4. Relationship to For-Profit Entities
The CHDO cannot be controlled by for-profit organizations or individuals.
C. Certification/Review Process
The Division will accept CHDO certification applications throughout the year. The Division will
only review completed application packets and applicable documentation. Applicants will be
notified by the Division, if their application has been approved, denied, or what additional
information and documentation is necessary to make a determination.
The Division is required to certify an organization as a CHDO each time it commits funds to an
organization. Therefore, organizations that have previously been certified by the Division must
complete this application for each new project. For a copy of the CHDO application see
Appendix10: CHDO Application.
Each application will be reviewed by evaluating the following:
Completeness - All required exhibits and attachments are included and the application
was received on or before the due date.
The application meets the required thresholds (serves the eligible populations, has
requested funding for the appropriate uses, etc.).
The organization has shown enhanced capabilities including, but not limited to;
employees have specialized skills, the organization has long-term partnerships with for-
profit entities, and has shown an advanced ability to leverage additional funding, etc.
D. Accessing CHDO HOME Funds
Any nonprofit organization is eligible to apply for funding under the HOME Program, but
only those nonprofit organizations that receive certification as a CHDO are eligible to apply
for funds from the Division’s CHDO set-aside.
Once an organization has been approved and receives CHDO status from the Consortium, it
may apply for CHDO funds. Certification as a CHDO does not guarantee that an
organization will receive funding from the HOME Program. Whether a CHDO is successful
in accessing funds will be a function of the merits of its proposed project, project feasibility,
ability to proceed, and the strength of its partnership in and with the Division. The strength
of the partnership between the Consortium and the CHDO has a great deal to do with
communication and compliance.
Page 34
E. Eligible CHDO Set-aside Activities
1. Only certain types of activities count toward the 15% set-aside.
The eligible activities are:
a. Acquisition and/or rehabilitation of rental housing
b. Construction of new rental housing
c. Acquisition and/or rehabilitation of properties for home ownership
d. New construction for home ownership
The following activities are not eligible for CHDO set-aside:
a. Tenant-based rental assistance
b. Rehabilitation of owner-occupied properties
c. Direct home buyer assistance for existing housing (not developed, owned, or
sponsored by a CHDO)
F. CHDO Roles
The 15% set-aside can only be used for projects in which a CHDO is the developer,
owner or sponsor.
1. CHDO as “Developer” – A CHDO is a “developer” when it either owns property or
develops a project.
a. Rental Housing: A CHDO that is a "developer” of rental housing is defined
at §92.300(a)(3). The CHDO is the owner (in fee simple absolute or long-term
ground lease) and developer of the project and must be in sole charge of all
aspects of the development process, including obtaining zoning, securing non-
HOME funds, selecting contractors, overseeing the progress of work, and
determining reasonableness of costs. The CHDO must own the HOME-
assisted housing during the development process and throughout the period of
affordability.
b. Home ownership: For HOME-assisted homebuyer projects, the housing is
"developed” by the CHDO if it is the owner (in fee simple absolute) and
developer of new housing that will be constructed or existing substandard
housing that is owned or will be acquired by the CHDO and rehabilitated for
sale to low-income families, in accordance with §92.254. To be the
"developer,” the CHDO must arrange financing for the project and be in sole
charge of construction. As part of its set-aside funds, the CHDO can provide
direct down payment assistance to a buyer of the housing it has developed
with HOME funds in an amount not to exceed 10 percent of the amount of
HOME development funds.
2. CHDO as “Owner” –A CHDO that is an "owner” of rental housing is defined at
§92.300(a)(2). The CHDO is required to own (in fee simple absolute or long-term
Page 35
ground lease) multifamily or single family housing that is rented to low-income
families, in accordance with §92.252. The CHDO must own the HOME project
during development and throughout the period of affordability, and is required to hire
and oversee all aspects of the development process. At a minimum, the CHDO can
own the property and hire a project manager or contract with a development
contractor to oversee all aspects of the development – including, obtaining zoning,
securing non-HOME financing, selecting a developer, or general contractor,
overseeing the progress of the work and determining the reasonableness of costs.
3. CHDO as “Sponsor” – The Final HOME Rule provides two definitions of a
“sponsor” of HOME-assisted rental housing:
a. §92.300(a)(4) clarifies the requirement for CHDOs to maintain effective project
control when acting as "sponsor” of rental housing: A CHDO "sponsors” rental
housing when the property is "owned” or "developed” by:
A subsidiary of the CHDO (in which case the subsidiary, which may be a
for-profit or nonprofit organization, must be wholly owned by the
CHDO);
A limited partnership (in which the CHDO or its wholly owned subsidiary
must be the sole general partner); or
A limited liability company (in which the CHDO or its wholly owned
subsidiary must be the sole managing member). If the limited partnership
or limited liability company agreement permits the CHDO to be removed
as sole general partner or sole managing member, respectively, the
agreement must require that the removal be "for cause” and that the
CHDO must be replaced by another CHDO. In addition, HOME funds
must be provided to the entity that owns the project.
b. §92.300 (a)(5) codifies the pre-2013 Rule definition of "sponsor.” It states that a
CHDO "sponsors” HOME-assisted rental housing in situations in which the
CHDO owns and develops the housing and agrees to convey the housing to a
private nonprofit organization (that does not need to be a CHDO but cannot be
created by a governmental entity) at a predetermined time after completion of the
project development. Such arrangements typically occur when a CHDO has
development expertise and the nonprofit organization has the capacity to own and
operate the housing. The CHDO is required to own the property before the
development phase of the project and is required to select the nonprofit
organization before entering into an agreement with the PJ that commits HOME
funds to the project. The nonprofit organization assumes the CHDO’s HOME
obligation (including any repayment of loans) for the project. If the property is not
transferred to the nonprofit organization, the CHDO sponsor remains liable for the
HOME assistance and the HOME project.
Page 36
Appendix 1: Definitions
1. Action Plan: The one-year portion of the Consolidated Plan. It includes the PJ’s annual
application for HOME funds.
2. Adjusted Income: Adjusted income is annual (gross) income reduced by deductions for
dependents, elderly households, medical expenses, handicap assistance expenses and
childcare (these are the same adjustment factors used by the Section 8 Program). Adjusted
income is used in HOME to compute the actual tenant payment in TBRA programs and the
low HOME rent in rental projects in which rents are based on 30% of a family’s adjusted
gross income.
3. Affordability: The requirements of the HOME Program that relate to the cost of housing
both at initial occupancy and over established timeframes, as prescribed in the HOME Final
Rule. Affordability requirements vary depending upon the nature of the HOME assisted
activity (i.e., homeownership or rental housing).
4. Annual Income: Annual income as defined in 24 CFR 5.609, referred to as "Part 5 annual
income", also known as the rules for determining income under the Section 8 voucher
program.
5. Commitment: Commitment means (1) The participating jurisdiction has executed a
legally binding written agreement (that includes the date of the signature of each person
signing the agreement) with a State recipient, a subrecipient, or a contractor to use a
specific amount of HOME funds to produce affordable housing, provide down payment
assistance, or provide tenant-based rental assistance; or has met the requirements to
commit to a specific local project, as defined in paragraph (2) of this definition. (See §
92.504(c) for minimum requirements for a written agreement.) An agreement between the
participating jurisdiction and a subrecipient that is controlled by the participating
jurisdiction (e.g., an agency whose officials or employees are official or employees of the
participating jurisdiction) does not constitute a commitment. An agreement between the
representative unit and a member unit of general local government of a consortium does
not constitute a commitment. In addition, and only until October 21, 2013, a properly
executed written agreement reserving a specific amount of funds for a CHDO may
constitute a commitment. As of October 22, 2013 the requirements for commitment to a
specific local project will apply to all CHDO fund commitments.
Page 37
6. Commitment to a specific local project: Commitment to a specific local project means
that a legally binding agreement was executed meeting one of the following sets of
requirements:
(1) For rehabilitation or new construction projects, the PJ (or other entity) and the
project owner will execute an agreement for an identifiable project for which all
necessary financing has been secured, a budget and schedule have been established,
and underwriting has been completed and under which construction is scheduled to
start within 12 months of the agreement date.
(2) If the project consists of acquisition of standard housing by the PJ, the agreement
must be a binding contract for the sale of an identifiable property and the property
title must be transferred to the PJ (or other entity) within six months of the date of
the contract.
(3) If the project involves the acquisition of standard housing and the County of
Hudson is providing HOME funds to a purchaser, under the agreement, the title of
the property must be transferred to the purchase within six months of the
agreement date.
(4) If the project consists of TBRA, the County of Hudson/Subrecipient must enter
into a rental assistance contract with the owner or the tenant in accordance with the
provisions of 24 CFR Part 92.209.
(5) Note that preliminary or conditional “commitments” may be made, but no funds
are considered committed under the rules unless the above conditions have been
met.
7. Consolidated Plan: A plan prepared in accordance with the requirements set forth in 24
CFR Part 91 which describes community needs, resources, priorities and proposed
activities to be undertaken under certain HUD programs, including HOME.
8. Consortium: Geographically contiguous units of general local government consolidated
to be in a single unit of general local government for HOME Program purposes when
certain requirements are met.
9. Community Housing Development Organization (CHDO): A private, nonprofit
organization that meets a series of qualifications prescribed in the HOME regulations at 24
CFR Part 92.2. The HOME New Rule requires that CHDO’s have paid staff with
demonstrated capacity appropriate to the CHDO’s role (this requirement cannot be met
through volunteer, donated staff, shared staff, or board members). A participating
jurisdiction must award at least 15 percent of its annual HOME allocation to CHDOs.
10. Draw-Down: The process of requesting and receiving HOME funds. The County of
Hudson will draw down funds from a line of credit established by HUD.
Page 38
11. Final Rule: The Final HOME Rule was published at 24 CFR Part 92 on July 24,
2013 and became effective on August 24, 2013.
12. Group Home: Housing occupied by two or more single persons or families consisting of
common space and/or facilities for group use by the occupants of the unit, and (except in
the case of shared one-bedroom units) separate private space for each family.
13. HOME-Assisted Units: A term that refers to the units within a HOME project for which
rent, occupancy and/or resale restrictions apply. The number of units designated as HOME-
assisted affects the maximum HOME subsidies that may be provided to a project.
16. Household: One or more persons occupying a housing unit.
17. Jurisdiction: A state or unit of general local government.
18. Low-Income Families: Families whose annual incomes do not exceed 80 percent of the
median income for the area (adjusted for family size).
19. Match: Match is the other funding contributions to projects receiving funding from the
HOME Program – the private, local, or other non-Federal contribution to the partnership.
The Consortium’s match contribution must equal not less than 25 percent of the HOME
funds drawn down for projects in that fiscal year.
20. New Construction: The creation of new dwelling units. Any project which includes the
creation of new or additional dwelling units in an existing structure is considered new
construction.
21. Participating Jurisdiction (PJ): The term given to any state, local government or
consortium that has been designated by HUD to administer a HOME Program. HUD
designation as a PJ occurs if a state or local government meets the funding thresholds,
notifies HUD that they intend to participate in the program and has a HUD-approved
Consolidated Plan. Program Income: Gross income received by the C, state recipient, or a
sub recipient directly generated from the use of HOME funds or matching contributions.
22. Project: A site or an entire building or two or more buildings, together with the site or
sites on which the building or buildings is located, that are under common ownership,
management and financing and are to be assisted with HOME funds, under a commitment
by the owner, as a single undertaking. The HOME Final Rule eliminated the requirement
that all buildings fall within a four block radius.
23. Project completion: All necessary title transfer requirements and construction work
have been performed; the project complies with all HOME requirements; the final draw-
down of HOME funds has been disbursed for the project; and the project completion
information has been entered in the disbursement and information system established by
HUD, except that with respect to rental housing project completion, for the purposes of §
92.502(d) of this part, project completion occurs upon completion of construction and
Page 39
before occupancy. For TBRA, project completion means the final draw-down has been
disbursed for the project.
24. Reconstruction (also rehabilitation): The rebuilding, on the same lot, of housing
standing on a site at the time of project commitment. Except that housing that was
destroyed may be rebuilt on the same lot if HOME funds are committed within 12 months
of the date of destruction the number of housing units on the lot may not be changed as
part of the reconstruction project, but the number of rooms per unit may change.
Reconstruction also includes replacing an existing substandard unit of manufactured
housing with a new or standard unit of manufactured housing.
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local preference
Evidence Detected
"...ntified in its approved consolidated plan. The Consortium only invests HOME funds in eligible projects within its boundaries, or in joint projects within the boundaries of contiguous local jurisdictions, which serve residents from both jurisdictions. The Hudson County Consortium municipalities include all Hudson..."
performance bond
Evidence Detected
"...egulations of either the other program or the HOME Program shall apply. The County reserves the right to request a letter of credit, a payment and performance bond, or other liquid security acceptable to the County, to ensure successful completion of the project. The bond will be required for the amount of con..."
liquidated damages
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Timeline
First Discovered
Apr 2, 2026
Last Info Update
Apr 2, 2026
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