Resolution of the City of Jersey City, N.J.

City Clerk File No. Res. 09-880Agenda No.10.1Approved: OCT 2 8 2009TITLE:RESOLUTION AUTHORIZING AN AMENDMENT TO AN AFFORDABLEHOUSING AGREEMENT WITH THE DEVELOPER V GUPTA & COMPANTO ENABLE THE OWNERS OF TWO-FAMILY HOMES TO CHARGE AFIXED BASE RENT RATHER THAN A RENT BASED ON A TENANT'SINCOMEWHEREAS, on or about June 24, 1999, the City ofJersey City (City) entered into a twenty (20) yearAffordable Housing Agreement with V Gupta & Company (VGC) to construct and sell ten twofamilydwellings for a total of twenty units of affordable housing at the addresses listed on Exhibit"A" attached hereto; andWHEREAS, the Affordable Housing Agreement requires that the purchaser of a two-family home.reside in one unit and rent the second unit to an income qualified tenant at a rental rate not to exceedmore than 30% ofa tenant's anual family income; andWHEREAS, the homeowners listed on Exhibit "A" are the successors in interest to the AffordableHousing Agreement with VGC dated June 24, 1999; andWHEREAS, the curent restrictions tying rents to tenant incomes result in unpredictable fluctuationsin rents which could jeopardize the financial viability of the affordable housing unit; andWHEREAS, the City desires to amend the Affordable Housing Agreement to allow homeon,nersto charge a fixed based rent that they will be permitted to increase anually; andWHEREAS, to accomplish this purose it is necessar to amend Section Il(B)(l)(b) of theAffordable Housing Agreement to establish a new base rent that will allow for anual incrementsbased on Home Program Rènt Limits published in the Federal Register.NOW, THEREFORE BE IT RESOLVED by the Municipal Council ofthat:the City of Jersey City1. Section II(B)(l)(b) is amended to establish the base rents listed on Exhibit "A" attachedhereto and incorporated herein by reference for 2009; and2. The homeowners shall be permitted to increase the base rents anually upon recertifYingtenants.RRcw8-7-09APPROVED:APPROVED:PP':/ED AS TO LEGAL FORM:z 'Corporation CounselCertification Required 0Not Required o APPROVED '1~O1')0 I' ,,'RECORD OF COUNCIL VOTE ON FINAL PASSAGEinCOUNCILPERSON AYE NAY N.V. COUNCILPERSON AYE NAY N.V. COUNCILPERSON AYE NAY N.V.SOnOLANO ./ GAUGHAN / BRENNAN/ /FULOP/~ FLOODLOPEZ ,/ RICHARDSON./ VEGA,i/,l Indicates VoteV a meeting , '2 of th~iPal f( OJ' Council of the City of Jersey City, N.J.Peter M. Brennan. President of CouncilN.V.-Not Voting (Abstain)ac"~