[HISTORY: Adopted by the Mayor and Council of the Borough of Tuckerton
as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-21-2007 by Ord. No. 8-2007]
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 Tuckerton shall not spend development fees until COAH
or the court has approved a plan for spending such fees and the Borough of
Tuckerton has received third-round substantive certification from COAH or
a judgment of compliance from the court. This article shall be subject to
the provisions of any affordable housing growth share ordinance adopted by
the Borough.
The following terms, as used in this article, shall have the following
meanings:
A development included in the Borough's 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.
The New Jersey Council on Affordable Housing.
Funds paid by an individual, person, partnership, association, company
or corporation for the improvement of property as permitted by 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 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.
A.
Within the Borough's residential zoning district(s),
residential developers shall pay a fee of 1% of the equalized assessed value
for residential development, provided no increased density or other similar
compensatory benefit is permitted.
B.
When an increase in residential density pursuant to N.J.S.A.
40:55D-70d(5) (known as a "d" variance) has been permitted, developers may
be required to pay a development fee of 6% of the equalized assessed value
for each additional unit that may be realized. For example, if an approval
allows four units to be constructed on a site that was zoned for two units,
the fees would equal 1% of the equalized assessed value on the first two units,
and 6% of the equalized assessed value 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.
A.
Within the Borough's nonresidential zoning district(s),
nonresidential developers shall pay a fee of 2% of the equalized assessed
value for the nonresidential development.
B.
If an increase in floor area ratio is approved pursuant
to N.J.S.A. 40:55D-70d(4), then the additional floor area realized (above
what is permitted by right under the existing zoning) will incur a bonus development
fee of 6% of the equalized assessed value for the nonresidential development.
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.
A.
Affordable housing developments shall be exempt from
development fees. All other forms of new construction shall be subject to
development fees unless exempted below.
B.
Developments that have received preliminary or final
approval prior to the imposition of a municipal development fee shall be exempt
from development fees unless the developer seeks a substantial change in the
approval.
C.
Development fees shall be imposed and collected when
an existing structure is expanded or undergoes a change to a more intense
use resulting in an increase in the assessed value of the property of $20,000
or more. The development fee shall be calculated on the increase in the equalized
assessed value of the improved structure.
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 building permit and
that determined at issuance of certificate of occupancy.
Imposed and collected development fees that are challenged shall be
placed in an interest-bearing escrow account by the Borough of Tuckerton.
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.
A.
The Borough of Tuckerton shall create an interest-bearing
housing trust fund at its banking institution for the purpose of depositing
development fees collected from residential and nonresidential developers
and proceeds from the sale of units with extinguished controls. All development
fees paid by developers pursuant to this article shall be deposited into this
fund.
B.
Within seven days from the opening of the trust fund
account, the Borough of Tuckerton shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the Borough, the Borough's
banking institution, and COAH to permit COAH to direct the disbursement of
the funds as provided for in N.J.AC. 5:94-6.16(b).
C.
No funds shall be expended from the affordable housing
trust fund unless the expenditure conforms to a spending plan approved by
COAH or the court. All interest accrued in the housing trust fund shall only
be used on eligible affordable housing activities approved by COAH.
A.
Funds deposited in the housing trust fund may be used
for any activity approved by COAH to address the municipal fair share. Such
activities include, but are not limited to: rehabilitation, new construction,
RCAs subject to the provisions of N.J.A.C. 5:94-4.4(d), ECHO housing, purchase
of land for affordable housing, purchase housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial assistance
designed to increase affordability, or administration necessary for implementation
of the housing element and fair share plan. The expenditure of all funds shall
conform to a spending plan approved by COAH or the court.
B.
Funds shall not be expended to reimburse Borough of Tuckerton
for past housing activities.
C.
After subcontracting development fees collected to finance
an RCA, a rehabilitation program or a new construction project that are necessary
to address the Borough of Tuckerton's affordable housing obligation,
at least 30% of the balance remaining shall be used to provide affordability
assistance to low- and moderate-income households in affordable units included
in the municipal fair share plan. One-third of the affordability assistance
portion of development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of median income by region.
(1)
Affordability assistance programs may include down payment
assistance, security deposit assistance, low-interest loans, and rental assistance.
(2)
Affordability assistance to households earning 30% or
less of median income may include buying down the cost of low- or moderate-income
units in the third-round municipal fair share plan to make them affordable
to households earning 30% or less of median income. The use of development
fees in this manner shall entitle the Borough of Tuckerton to bonus credits
pursuant to N.J.A.C. 5:94-4.22.
(3)
Payments in lieu of constructing affordable units on
site and funds from the sale of units with extinguished controls shall be
exempt from the affordability assistance requirement.
D.
The Borough of Tuckerton may contract with a private
or public entity to administer any part of its housing element and fair share
plan, including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:94-7.
E.
No more than 20% of the revenues collected from development
fees each year, exclusive of the fees used to fund an RCA, 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
new construction program, a housing element and fair share plan, and/or an
affirmative marketing program. In the case of a rehabilitation program, no
more than 20% of the revenues collected from development fees shall be expended
for such administrative expenses. Administrative funds may be used for income
qualification of households, monitoring the turnover of sale and rental units,
and compliance with COAH's monitoring requirements. Development fee administrative
costs are calculated and may be expended at the end of each year or upon receipt
of the fees.
The Borough of Tuckerton 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 or approved by the court. All monitoring reports
shall be completed on forms designed by COAH.
