N.J. Admin. Code § 5:11-3.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 5:11-3.7 - Replacement housing payments for owners

(a) Except as otherwise provided in 5:11-2.1(c), an individual who owns and occupies a dwelling unit for a period of not less than 180 days prior to the eligibility date as specified and who vacates the dwelling unit after notice to vacate and as a direct result of the cause of displacement and who purchases and occupies within one year a comparable replacement dwelling unit shall be eligible for a replacement housing payment in an amount not to exceed $ 15,000.

(b) The amount of the replacement housing payment is the difference, between the reasonable cost, on the open market, of a comparable replacement dwelling, and the acquisition price (in the case of acquisition) or fair market value (in all other cases).

(c) The reasonable cost of a comparable replacement dwelling shall be estimated by any of the following methods at the option of the displacing agency:

1. Three comparables based on the asking price as adjusted for selling price as shown by market study;

2. An area-wide schedule; or

3. An alternative method approved by the Department.

(d) In no event shall the amount of the replacement housing payment exceed the actual difference in the actual cost of a decent, safe and sanitary replacement dwelling, including incidental expenses and the acquisition price.

(e) If the dwelling unit occupied by the displacee also included an area used for non-residential purposes the amount of the replacement housing payment shall be based on the imputed value of the residential portion of the dwelling unit.

(f) The payment shall also include the following elements:

1. The amount, if any, which will compensate a displaced person for any increased interest cost which such person is required to pay for financing the acquisition of a comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired was encumbered by a bona fide, duly recorded mortgage which was a valid lien 180 days prior to the issuance of formal notice to vacate. Such amount shall be equal to the excess in the aggregate interest (and other debt service) of the mortgage on the acquired dwelling, over the remainder of the term of the mortgage on the acquired dwelling, reduced to a discounted percent value.

2. Any other incidental expenses incurred in the purchase of a replacement dwelling.

N.J. Admin. Code § 5:11-3.7

R.1984 d.127, eff. 4/16/1984.
See: 16 New Jersey Register 175(a), 16 New Jersey Register 870(b).
Recodified from N.J.A.C. 5:11-3.4.
Amended by R.1995 d.386, effective 7/17/1995.
See: 27 New Jersey Register 1844(a), 27 New Jersey Register 2714(a).
Amended by R.2004 d.222, effective 6/21/2004.
See: 36 New Jersey Register 1264(b), 36 New Jersey Register 3055(c).
In (a), amended the N.J.A.C. reference.