In Holmdel Builder's Ass'n. v. Holmdel Township, 121 N.J. 550 (1990),
the New Jersey Supreme Court determined that mandatory development fees are
authorized by the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and
the State Constitution subject to COAH developing rules. The purpose of this
chapter is to establish standards for the collection, maintenance and expenditure
of development fees pursuant to COAH's rules. Fees collected pursuant to this
chapter shall be used for the sole purpose of providing low- and moderate-income
housing. This chapter shall be interpreted within the framework of COAH's
rules on development fees.
As used in this chapter, the following terms shall have the meanings
indicated:
COUNCIL or COAH
The New Jersey Council on Affordable Housing established under the
Fair Housing Act of 1985.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association, company
or corporation for the improvement of property as permitted in COAH's rules.
EQUALIZED ASSESSED VALUE
The value of a property determined by the Township Tax Assessor through
a process designed to ensure that all property in the Township is assessed
at the same assessment ratio or ratios required by law. Estimates at the time
of building permit may be obtained by the Tax Assessor utilizing tax estimates
for construction cost. Final equalized assessed value will be determined at
project completion by the Township Tax Assessor.
SUBSTANTIVE CERTIFICATION
A determination by the Council approving a municipality's housing
element and fair share plan in accordance with the provisions of the Fair
Housing Act and the rules and criteria as set forth therein. A grant of substantive
certification shall be valid for a period of six years in accordance with
the terms and conditions contained therein.
A developer of any major residential subdivision shall pay a development fee of 1/2 of 1% of the equalized assessed value of any eligible residential activity pursuant to §
193-6 of this chapter.
Developers of any major site plan or minor site plan resulting in the construction of at least 5,000 square feet of structure shall pay a fee of 1% of the equalized assessed value of eligible nonresidential activities pursuant to §
193-6 of this chapter.
This chapter shall expire if:
A. COAH dismisses or denies the Township of Jefferson's
petition for substantive certification;
B. COAH revokes substantive certification or its certification
of this chapter.
C. Substantive certification/judgment of repose expires
prior to the Township of Jefferson filing an adopted housing element with
COAH, petitioning for substantive certification or receiving COAH's approval
of this chapter.