The New Jersey Supreme Court, in Holmdel Builders
Association v. Holmdel Township, 121 N.J. 550 (1990), determined that
mandatory development fees are both statutorily and constitutionally
permissible. The Court further anticipated that the Council on Affordable
Housing (COAH) would promulgate appropriate development fee rules
specifying, among other things, the standards for these development
fees. The purpose of this chapter is to provide such rules pursuant
to N.J.A.C. 5:93-8.1 et seq., which establishes standards for the
collection, maintenance and expenditure of development fees. Fees
collected pursuant to this chapter shall be used for the sole purpose
of providing low- and moderate-income housing.
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 herein.
A grant of substantive certification shall be valid for a period of
six years in accordance with the terms and conditions contained therein.
All development fees shall be deposited in a separate interest-bearing Housing Trust Fund. In establishing the Housing Trust Fund, the Township shall provide whatever express, written authorization that may be required by the bank utilized by the Township in order to permit the Council to direct the disbursement of development fees pursuant to §
111-55. No money shall be expended from the Housing Trust Fund unless the expenditure conforms to a spending plan approved by COAH.
The Township shall complete and return all monitoring
forms related to the collection of fees, expenditure of revenues and
implementation of the plan certified by the Council or approved by
the court. Quarterly financial reports and annual program implementation
and auditing reports shall be completed on forms designed by the Council.
This chapter shall expire if:
A. COAH dismisses or denies the Township's petition for
substantive certification.
B. COAH revokes substantive certification or its certification
of this chapter.
C. Substantive certification expires prior to the Township's
filing of an adopted housing element with COAH, petitioning for substantive
certification and giving COAH's approval of this chapter.