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.
Washington Township shall not spend development fees until COAH
has approved a plan for spending such fees and Washington Township
has received third-round substantive certification from COAH or a
judgment of compliance.
[Amended 3-15-2022 by Ord. No. 2022-06]
Fifteen hundred dollars of the development fee will be collected
at the time of issuance of a 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 $1,500 fee 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 Washington Township.
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.
Washington Township 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 for Washington Township to impose, collect and expend
development fees shall expire with its latest substantive certification
unless Washington Township 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 Washington Township fails to renew its ability to impose and collect
development fees prior to the date of expiration of its latest substantive
certification, it may resume the imposition and collection of development
fees only by complying with the requirements of N.J.A.C. 5:94-6. Washington
Township shall not impose a development fee on a development that
receives preliminary or final approval after the expiration of its
latest substantive certification, nor will Washington Township retroactively
impose a development fee on such a development. Washington Township
will not expend development fees after the expiration of its latest
substantive certification.