[Adopted 4-19-2006 by Ord. No. 1958]
In Holmdel Builder's Association 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 the Council on Affordable Housing's (COAH's) adoption of
rules. This article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's 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 Borough of North Arlington shall not spend
development fees until COAH has approved a plan for spending such
fees and has received third-round substantive certification from COAH
or a judgment of compliance.
The following terms, as used in this article,
shall have the following meanings:
AFFORDABLE HOUSING DEVELOPMENT
A development included in the Housing Element and Fair Share
Plan, and includes, but is not limited to, an inclusionary development,
a municipal construction project or a one-hundred-percent-affordable
development.
COAH
The New Jersey Council on Affordable Housing.
DEVELOPMENT FEE
Funds 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 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
utilizing estimates for construction cost. Final equalized assessed
value will be determined at project completion by the municipal Tax
Assessor.
Fifty percent of the development fee will be
collected at the time of issuance of the building permit. The remaining
portion will be collected at the issuance of the certificate of occupancy.
The developer shall be responsible for paying the difference between
the fee calculated at the time of issuance of a building permit and
that determined at issuance of the certificate of occupancy.
Imposed and collected development fees that
are challenged shall be placed in an interest-bearing escrow account
by the Borough of North Arlington. If all or a portion of the contested
fees are returned to the developer, the accrued interest on the returned
amount shall also be returned.
The Borough of North Arlington shall complete
and return to COAH all monitoring forms included in the annual monitoring
report related to the collection of development fees from residential
and nonresidential developers, payments in lieu of constructing affordable
units on site, and funds from the sale of units with extinguished
controls, and the expenditure of revenues and implementation of the
plan certified by COAH. All monitoring reports shall be completed
on forms designed by COAH.
The ability of the Borough of North Arlington
to impose, collect and expend development fees shall expire with its
substantive certification or judgment of compliance unless the Borough
of North Arlington has filed an adopted Housing Element and Fair Share
Plan with COAH, has petitioned for substantive certification, and
has received COAH's approval of its development fee ordinance. If
the Borough of North Arlington fails to renew its ability to impose
and collect development fees prior to the date of expiration of substantive
certification or judgment of compliance, it may resume the imposition
and collection of development fees only by complying with the requirements
of N.J.A.C. 5:94-6. The Borough of North Arlington shall not impose
a development fee on a development that receives preliminary or final
approval after the expiration of its substantive certification or
judgment of compliance, nor will the Borough of North Arlington retroactively
impose a development fee on such a development. The Borough of North
Arlington will not expend development fees after the expiration of
its substantive certification or judgment of compliance.