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ORDINANCE AMENDING ORDINANCE 6S&Fe, SEPTEMBER 16, 1998, DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT, DIVISION OF PROPERTY MANAGEMENT, BY REVISING THE SELECTION CRITERIA AND PROGRAM REGULATIONS FOR PARTICIPATION IN THE URBAN HOMESTEAD PROGRAM.
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WHEREAS, pursuant to Ordinance 6S&Fe(S), adopted September 16, 1998, the Municipal Council of the City of Newark established within the Division of Property Management an Urban Homestead Program in accordance with N.J.S.A. 40A:12-34 and P.L. 1988, Chapter 584; and
WHEREAS, the Division of Property Management is required to place on file with the City Clerk the selection criteria and regulations for participation in the Urban Homestead Program, in accordance with N.J.S.A. 40A:12-34; and
WHEREAS, certain specialized home loan products contain a number of restrictions and procedural safeguards which will ensure that Program Properties are rehabilitated in a reasonable manner, applicants are encouraged to utilize loan programs such as the FHA 203K Program and Fannie Mae HomeStyle Renovation Mortgage to purchase and rehabilitate program properties; and
WHEREAS, the City of Newark wishes to improve the criteria and regulations of its Urban Homestead Program to ensure supportive homeownership opportunities are afforded to First Time Homebuyers, including City Officers and employees, who (including a spouse) has no ownership in a principle residence during the 3-year period ending on the date of the purchase of the property.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Section 1. Section 2:10-1.4 of the City of Newark General Code is hereby amended to read as follows:
Editor’s Note: Additions are bold and underlined and deletions are shown as strikethroughs
2:10-1.4. Division of Property Management; Head; Duties.
a. There shall be within the Department of Economic and Housing Development a Division of Property Management, the head of which shall be the Manager, Division of Property Management.
b. The Division of Property Management, under the supervision of the Deputy Mayor/Director of the Department of Economic and Housing Development shall have the following duties:
1. Maintain a complete registry of all real property owned by the City, including information as to its use and condition, as well as on leaseholds and other encumbrances thereon.
2. Manage the maintenance and operation of all real property owned by the City which is not needed for Municipal use.
3. Recommend, within the scope of general law, local ordinance and administrative policy, those properties to be offered for sale or lease and the terms and conditions of such offerings.
4. Conduct the administrative process necessary to carry out the sale or lease of real property where such has been duly authorized.
5. Serve as the redevelopment agency for the City, and in so doing discharge the duties thereof.
6. (A) Pursuant to P.L. 1988, Chapter 584, there is hereby established within the Division of Property Management an "Urban Homestead Program." The Division is designated as the Homesteading Agency to administer the program. The selection criteria and regulations for participation in the program shall be established by the Division. A copy of the regulations and any subsequent amendments thereto shall be placed on file with the City Clerk by the Manager of the Division of Property Management.
(B) Minimum Requirements of the Program:
(1) The minimum purchase price shall be five hundred ($500.00) dollars and the maximum purchase price shall be five thousand ($5,000.00) dollars.
(2) Buyers must be Newark residents and must commit to reside in the properties for a minimum of ten (10) seven (7) years.
(3) Rehabilitation of the property must commence thirty (30) days within three (3) months after acquiring title and all work must be completed within one hundred twenty (120) days twelve (12) months thereafter.
(4) Selection shall be on a first-come first-serve basis (limited to twenty-five (25) twelve (12) applicants per property). Only one (1) property may be submitted at a time by an applicant.
(5) The applicant shall as part of their application submit three (3) cost estimates or work writeups independent appraisals from general contractors outlining the rehabilitation cost and work required in order to bring the property into conformance with all applicable State and local codes.
(6) Title to the property shall revert back to the City of Newark in the event the purchaser fails to close title, commence or complete the rehabilitation within the time periods, or meet the residence requirements, and fulfill the work required in the appraisal selected by the Division of Property Management.
(7) All conveyances shall be accomplished through a contract sale which contract shall be approved by the Municipal Council.
(8) The Division shall have the responsibility for monitoring the properties to ensure compliance with the provisions of this Ordinance Section.
(9) The applicant shall submit proof of acquisition financing and shall demonstrate the financial means to repair and/or rehabilitate the property. Proof of financial capability shall include, but not be limited to, the purchaser's own personal finances, a bank loan, and a commitment from lender to finance construction sufficient to bring the property up to City code standards.
i. Source of Rehabilitation Funds: Personal, bank, mortgage company, State or other financial sources. Basic eligibility determined by gross annual household income to participate in the Homestead Rehabilitation Program. Income includes, but is not limited to, salary, wages, alimony, social security benefits, pension, business income and actual or imputed earning assets which include bank accounts, stocks, bonds or other securities.
ii. Source of Financing Acquisition of Property: Must demonstrate ability to acquire property through savings accounts or other liquid assets.
(10) All other provisions of the rules and regulations promulgated by the Division of Property Management shall be consistent with the provisions of P.L. 1988, Chapter 584.
Section 2. Any prior ordinances or parts thereof inconsistent herewith are hereby repealed and superseded by this Ordinance.
Section 3. If any part of this Ordinance is declared unconstitutional or illegal, the remaining provisions shall continue in full force and effect.
Section 4. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
The purpose of this Ordinance is to amend Ordinance 6S&Fe(S), adopted September 16, 1998, to revise the selection criteria and program regulations for participation in the Urban Homestead Program.