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AN ORDINANCE AMENDING TITLE II, ADMINISTRATION, CHAPTER 10, DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT, SECTION 2, CITY OF NEWARK MUNICIPAL EMPLOYEES HOUSING ASSISTANCE PROGRAM, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, AS AMENDED AND SUPPLEMENTED, TO INCREASE THE GRANT AMOUNT FROM $10,000.00 TO $20,000.00.
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WHEREAS, the City of Newark (the “City”), has found that municipal employees, who reside in Newark are much more likely to be genuinely concerned about the welfare of the City than those who reside elsewhere, and by residing within the City in which they are employed, are thereby contributing to the revitalization of the City; and
WHEREAS, Section 2:24-1 of the City of Newark Administrative Code requires that Municipal Employees reside within the City limits; and
WHEREAS, the Municipal Council adopted Ordinance 6S&Fj on November 17, 1997, establishing the Newark Municipal Employees Housing Assistance Program (the “City of Newark Municipal Employees Housing Assistance Program”), incentivizing the municipal employees to purchase market rate housing, and authorizing the Deputy Mayor/Director of the Department of Economic and Housing Development to execute all documents necessary for participation in the program by qualified homebuyers, upon their demonstration that they have met all program criteria and other requirements for purchasing a home; and
WHEREAS, the Municipal Council adopted Ordinance 6S&Fc on August 5, 1998, amending Ordinance 6S&Fc, to extend the provision of grants to municipal employees, who purchase property at a Municipal auction; and
WHEREAS, the Municipal Council adopted Ordinance 6PSF-b(S) on June 22, 2021, which amended the City of Newark Municipal Employees Housing Assistance Program by increasing the grant amount from Five Thousand Dollars and Zero Cents ($5,000.00) to Ten Thousand Dollars and Zero Cents ($10,000.00); and
WHEREAS, consistent with the goals and objectives of the City of Newark Municipal Employees Housing Assistance Program, the City acting through the Department of Economic and Housing Development wishes to continue to provide municipal employees with incentives in the form of financial assistance for homeownership; and
WHEREAS, the City finds that the City of Newark Municipal Employees Housing Assistance Program, which offered up to Ten Thousand Dollars and Zero Cents ($10,000.00) in grants for eligible applicants for the purchase of market rate housing through private transactions and/or at a municipal auction should be increased to Twenty Thousand Dollars and Zero Cents ($20,000.00) effective immediately; and
WHEREAS, the amendment is in compliance with existing State laws and is in the best interest of the City of Newark.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
[Note: Additions are noted as bold and underlined text and deletions as strikeouts.]
SECTION 1. Title 2, Administration, Chapter 10, Department of Economic Housing and Development, Section 2, City of Newark Municipal Housing Assistance Program, of the Revised General Ordinances of the City of Newark, New Jersey, 2000, is hereby amended, as follows:
2:10-2 City of Newark Municipal Employees Housing Assistance Program
2:10-2.1 Establishment.
The Department of Economic and Housing Development is hereby authorized to establish a City of Newark Municipal Employees Housing Assistance Program ("The City of Newark Municipal Employees Housing Assistance Program”) to provide for grant amounts of up to $10,000.00 $20,000.00 contingent upon the availability of funding and up to $10,000.00 $20,000.00 in credits against the final bid price of properties purchased at Municipal auction. The selection criteria and regulations for participation in the program by qualifying purchasers shall be consistent with all terms, rules and regulations established by this section.
SECTION 2. 2:10-2.2 Minimum Requirements for the Program.
(a) Each grant must be used towards the purchase of a home within the Newark city limits. Homes sold privately at market rate will be eligible for the grant.
(b) One (1) to four (4) family residential structures sold at public auction will be eligible for up to $10,000.00 $20,000.00 in credits against the final bid price of properties purchased at Municipal auction.
(c) If the purchaser lives in the property for a period of five (5) consecutive years, the grant will be forgiven.
(d) If the purchaser who is the successful bidder at a Municipal auction, resides on the premises for a minimum of five (5) consecutive years, the credited amount does not have to be repaid.
(e) In the event that the purchaser does not live in the home for five (5) years, the grant must be repaid in full upon transfer of title.
(f) In the event that the purchaser at a Municipal auction does not live in the home for five (5) years, the credited amount must be repaid in full upon transfer of title.
(g) Purchasers will execute a grant agreement in order to receive funds.
(h) Purchaser’s deed will contain the restriction, that in the event that purchaser does not live in the home for five (5) years, the grant must be repaid.
(i) Purchaser at a Municipal auction will execute a mortgage and have a deed restriction reflecting the credited amount.
(j) Purchaser at a Municipal auction must repair, and improve the building in accordance with the requirements of the Revised Ordinances of the City of Newark and the Uniform Construction Code of the State of New Jersey. The repairs, alterations and improvements shall be started six (6) months from the date of closing title and shall be fully complete eighteen (18) months from the day of closing.
(k) The Department of Economic and Housing Development shall have the responsibility for monitoring said transaction to insure compliance with the provisions of this section.
SECTION 3. All City ordinances or portions of ordinances inconsistent herewith are hereby repealed to the extent of their inconsistency only.
SECTION 4. If any part of this Ordinance shall be declared to be invalid or inoperative, such part shall be deemed severable and the invalidity thereof shall not affect remaining parts of this Ordinance.
SECTION 5. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
SECTION 6. Codification. This Ordinance shall be a part of the Code of the City of Newark as though codified and fully set forth therein. The City Clerk shall have this Ordinance codified and incorporated in the official copies of the Code. The City Clerk and the Corporation Counsel are authorized and directed to change any Chapter, Article and/or Section number of the Code of the City of Newark in the event that the codification of this Ordinance reveals that there is a conflict between the numbers and the existing Code, and in order to avoid confusion and possible accidental repealers of existing provisions not intended to be repealed.
STATEMENT
Ordinance amending Title 2, Administration, Chapter 10, Department of Economic and Housing Development, Section 2, City of Newark Municipal Employees Housing Assistance Program of the Revised General Ordinances of the City of Newark, New Jersey, 2000, as amended and supplemented, increasing the grant amount from $10,000.00 to $20,000.00.