[Adopted 5-11-1998 by Ord. No. 8-98 (Ch.
69 of the 1975 Code)]
In Holmdel Builder's Association vs. 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 the imposition of rules by COAH. The purpose of this article
is to establish standards for the collection, maintenance and expenditure
of development fees pursuant to COAH'S adopted rules. Fees collected
pursuant to this article shall be used for the sole purpose of providing
low- and moderate-income housing. This article shall be interpreted
within the framework of COAH's rules on development fees.
The following definitions shall control:
Shall refer to the Borough of Chatham.
[Added 3-28-2005 by Ord. No. 05-04]
The New Jersey Council on Affordable Housing.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH's rules.
The value of a property determined by the Municipal Tax Assessor
through a process designed to ensure that all property in the municipality
is assessed at the same assessment ratio or ratios required by law.
Estimates at the time of issuance of a building permit may be obtained
by the Tax Assessor utilizing estimates for construction cost. Final
equalized assessed value will be determined at project completion
by the Municipal Tax Assessor.
A determination of COAH approving a municipality's housing
element and fair share plan in accordance with the provisions of the
Act and the rules and criteria as set forth herein. A grant of substantive
certification shall be valid for a period of six years in accordance
with the terms and conditions contained therein.
[Amended 3-28-2005 by Ord. No. 05-04]
A.
Residential zones.
(1)
In all residential zones, a developer shall pay residential
development fees which will be a maximum of 1.5% of the equalized
assessed value for residential development, the coverage of the homeowner
warranty document of a for-sale unit or the appraised value on the
document utilized for construction financing for a rental unit, provided
that no increased density is permitted.
[Amended 11-24-2008 by Ord. No. 08-24]
(2)
When the Borough approves an increase in residential
density pursuant to N.J.S.A. 40:55D-70d(5) (known as a “d”
variance), the Borough may impose a development fee upon the developer
of up to 6% of either the equalized assessed value for each additional
unit that may be realized, the coverage amount on the homeowner warranty
document for each additional for-sale unit or the appraised value
on the document utilized for construction financing for each additional
rental unit. (Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the fees could equal 1% of
either the equalized assessed value, the coverage amount on the homeowner
warranty document or the appraised value on the document utilized
for construction financing on the first two units; and 6% of either
the equalized assessed value, the coverage amount on the homeowner
warranty document or the appraised value on the document utilized
for construction financing for the two additional units.) However,
if the zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the density for the purposes
of calculating the bonus development fee shall be the highest density
permitted by right during the two-year period preceding the filing
of the variance application.
B.
Nonresidential zones.
(1)
In all nonresidential zones, a developer shall pay
nonresidential development fees which shall be 2.5% of either the
equalized assessed value for nonresidential development or the appraised
value. The Borough may also utilize any recognized industry standard
to establish values of nonresidential development that is acceptable
to both the Borough and COAH.
[Amended 11-24-2008 by Ord. No. 08-24]
(2)
When the Borough approves an increase in floor area
pursuant to N.J.S.A. 40:55D-70d (4) (known as a “d” variance),
the Borough may impose a development fee of up to 6% on the additional
floor area realized. However, if the zoning on a site has changed
during the two-year period preceding the filing of such a variance
application, the base floor area for the purposes of calculating the
bonus development fee shall be the highest floor area permitted by
right during the two-year period preceding the filing of the variance
application.
(3)
The imposition of payments in lieu of development
fees pursuant to a development fee ordinance approved by COAH pursuant
to N.J.A.C. 5:93-8 shall not be construed as a condition of preliminary
or final site plan approval or as a stipulation included in a developer’s
agreement for the purposes of calculating growth exclusions pursuant
to N.J.A.C. 5:94-2.4(a)5.
A.
Developers of low- and moderate-income units shall
be exempt from paying development fees.
B.
Developers that expand an existing nonresidential
structure or expand a residential structure where it results in additional
dwelling units shall pay a development fee. The development fee shall
be calculated based on the increase in the equalized assessed value
of the improved structure.
C.
Developers that have received preliminary or final
approval prior to the effective date of this article shall be exempt
from paying a development fee unless the developer seeks a substantial
change in the approval.
D.
Developers of any church, library, school, college,
governmental facility, hospital for humans or nursing home shall be
exempt from paying a development fee.
A.
Developers shall pay 50% of the calculated development
fee to the Borough of Chatham at the issuance of building permits.
The development fee shall be estimated by the Tax Assessor prior to
the issuance of building permits.
B.
Developers shall pay the remaining fee to the Borough
of Chatham at the issuance of the certificates of occupancy. At the
issuance of the certificates of occupancy, the Tax Assessor shall
calculate the equalized assessed value and the appropriate development
fee. The developer shall be responsible for paying the difference
between the fee calculated at the certificate of occupancy and the
amount paid at building permit.
[Amended 4-25-2005 by Ord. No. 05-09]
A.
There is hereby created an interest-bearing Housing
Trust Fund to be maintained at a bank approved by the Mayor and Borough
Council for the purpose of receiving development fees from residential
and nonresidential developers. All development fees paid by the developers
pursuant to this article shall be deposited in this fund. No money
shall be expended from the Housing Trust Fund unless the expenditure
conforms to a spending plan approved by COAH.
B.
If COAH determines that the Borough of Chatham is
not in conformance with COAH's rules on development fees, COAH is
authorized to direct the manner in which all development fees collected
pursuant to this article shall be expended. Such authorization is
pursuant to this article, COAH's rules on development fees and the
written authorization from the governing body to the bank.
A.
Money deposited in the Housing Trust Fund may be used
for any activity approved by COAH for addressing the Borough of Chatham's
low- and moderate-income housing obligation. Such activities may include,
but are not necessarily limited to, housing rehabilitation, new construction,
regional contribution agreements, the purchase of land for low- and
moderate-income housing sites, extensions and/or improvements of roads
and infrastructure to low- and moderate-income housing sites, assistance
designed to render units more affordable to low- and moderate-income
households and administrative costs necessary to implement the Borough
of Chatham's housing element. The expenditure of all money shall conform
to a spending plan approved by COAH.
B.
At least 30% of the revenues collected shall be devoted
to render units more affordable. Examples of such activities include,
but are not limited to, down payment assistance, low interest loans
and rental assistance.
C.
No more than 20% of the revenues collected from development
fees shall be expended on administration, including but not limited
to salaries and benefits for municipal employees or consultant fees
necessary to develop or implement a rehabilitation program; a new
construction program; a regional contribution agreement; a housing
element; and an affirmative marketing program.
(1)
Administrative funds may be used for income qualifications
of households; monitoring the turnover of sale and rental units; and
compliance with Council monitoring requirements. Development fees
shall not be used to defray the cost of existing staff.
D.
Development fee revenues shall not be expended to
reimburse the Borough of Chatham for housing activities that preceded
substantive certification.
This article shall expire if:
A.
COAH dismisses or denies the Borough of Chatham's
petition for substantive certification.
B.
COAH revokes substantive certification or its certification
of this article.
C.
Substantive certification expires prior to the Borough
of Chatham's filing an adopted housing element with COAH, petitioning
for substantive certification or receiving COAH's approval of this
article.
