Borough of North Haledon, NJ
Passaic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of North Haledon 12-27-2006 by Ord. No. 21-2006. Amendments noted where applicable.]
GENERAL REFERENCES
Municipal Housing Commission — See Ch. 61.
Subdivision of land — See Ch. 530.
Zoning — See Ch. 600.
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 chapter establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's rules. Fees collected pursuant to this chapter shall be used for the sole purpose of providing low- and moderate-income housing. This chapter shall be interpreted within the framework of COAH's rules on development fees.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
This chapter shall not be effective until approved by the Court.
B. 
The Borough of North Haledon shall not spend development fees until the Court has approved a plan for spending such (spending plan).
[Amended 5-20-2020 by Ord. No. 9-2020]
The following terms, as used in this chapter, 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 100% affordable development.
COUNCIL ON AFFORDABLE HOUSING or COAH
The New Jersey Council on Affordable Housing, established under the Fair Housing Act.[1]
DEMOLISHED
Any act or process that renders more than 50% of a structure or building unsafe for human occupancy or use shall be considered demolished for the purposes of this chapter.
DEVELOPER
The legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land.
DEVELOPMENT FEE
Funds paid by any person for the improvement of property as authorized by Holmdel Builder's Association v. Holmdel Township, 121 N.J. 550 (1990) and the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 et seq., and regulated by applicable COAH 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.
LIVING SPACE
All internal areas of a dwelling with a floor-to-ceiling height of greater than six feet, exclusive of garages, which are not to be considered as living space.
NATURAL DISASTER
A catastrophic event, such as a hurricane, flood, earthquake, volcanic eruption, landslide, blizzard or other natural phenomena, that causes extensive human casualties or property damage, or both.
[1]
Editor’s Note: See N.J.S.A. 52:27D-301 et seq.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
Imposed fees.
(1) 
For all residential developments, residential developers shall pay a fee of 1.5% of the equalized assessed value for residential development, provided no increased density is permitted.
(2) 
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. However, if the zoning on a site has changed during the two-year period preceding the filing of such a variance application, the base 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. Example: If an approval allows four units to be constructed on a site that was zoned for two units, the fees could equal 1.5% of the equalized assessed value on the first two units; and the specified higher percentage up to 6% of the equalized assessed value for the two additional units, provided zoning on the site has not changed during the two-year period preceding the filing of such a variance application.
B. 
Eligible exactions, ineligible exactions and exemptions for residential development.
(1) 
Affordable housing developments and developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from development fees.
(2) 
Developments that have received preliminary or final site plan approval prior to the adoption of a municipal development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval. Where a site plan approval does not apply, a zoning and/or building permit shall be synonymous with preliminary or final site plan approval for this purpose. The fee percentage shall be vested on the date that the building permit is issued.
(3) 
Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use, is demolished and replaced or is expanded, except that expansion of an existing residential structure which increases the living space by less than 20% and/or the volume of the existing structure by less than 20% shall be exempt from paying a development fee. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.
(4) 
A dwelling that is constructed as a replacement for a dwelling that was demolished as a result of a natural disaster shall be exempt from paying a development fee. The dwelling that is constructed as a replacement dwelling must be constructed on the same site as the dwelling that was demolished as a result of a natural disaster.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
Within the B-1, B-2, I-1 and/or I-2 District(s), nonresidential developers shall pay a fee of 2.5% of the equalized assessed value for nonresidential development.
B. 
When 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 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.
Fifty percent of the development fee will be collected by the COAH Administrator at the time of issuance of the building permit. The remaining portion will be collected by the COAH Administrator prior to issuance of the certificate of occupancy or temporary 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 North Haledon. 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.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
There is hereby created a separate, interest-bearing housing trust fund in Columbia Bank 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 chapter shall be deposited into this fund. Upon approval by the Court and by the Division of Local Government Services, the Borough of North Haledon will invest development fee revenue and proceeds from the sale of units with extinguished controls into a cash management account, provided that the funds in the cash management account that comprise the deposits and income attributable to such deposits shall at all times be identifiable.
B. 
In the event of a failure by the Borough of North Haledon to comply with trust fund monitoring and reporting requirements or to submit accurate monitoring reports; or a failure to comply with the conditions of the judgment of compliance or a revocation of compliance; or a failure to implement the approved spending plan and to expend funds within the applicable required time period as set forth in In re Tp. Of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (aff'd 442 N.J. Super. 563); or the expenditure of funds on activities not approved by the Court; or for other good cause demonstrating the unapproved use(s) of funds, the Court may authorize the State of New Jersey, Department of Community Affairs, Division of Local Government Services (LGS), to direct the manner in which the funds in the Affordable Housing Trust Fund shall be expended, provided that all such funds shall, to the extent practicable, be utilized for affordable housing programs within the Borough, or, if not practicable, then within the County or Housing Region. Any party may bring a motion before the Superior Court presenting evidence of such condition(s), and the Court may, after considering the evidence and providing the municipality a reasonable opportunity to respond and/or remedy the noncompliant condition(s), and upon a finding of continuing and deliberate noncompliance, determine to authorize LGS to direct the expenditure of funds in the trust fund. The Court may also impose such other remedies as may be reasonable and appropriate to the circumstances.
C. 
No funds shall be expended from the Affordable Housing Trust Fund unless the expenditure conforms to a spending plan approved by the Court.
D. 
All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by the Court.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
The expenditure of all funds shall conform to a spending plan approved by the Court. Funds deposited in the housing trust fund may be used for any activity approved by the Court to address the Borough's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to: preservation or purchase of housing for the purpose of maintaining or implementing affordability controls, rehabilitation, new construction of affordable housing units and related costs, accessory apartment, market to affordable or regional housing partnership programs, conversion of existing nonresidential buildings to create new affordable units, green building strategies designed to be cost saving and in accordance with accepted national or state standards, purchase of land for affordable housing, improvement of land to be used for affordable housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, and/or any other activity as permitted by the Court and specified in the approved spending plan.
B. 
Funds shall not be expended to reimburse the Borough for past housing activities.
C. 
At least 30% of all development fees collected and interest earned 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, assistance with homeowners' association or condominium fees and special assessments, and assistance with emergency repairs.
(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 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 North Haledon to bonus credits pursuant to N.J.A.C. 5:97-3.7.[1]
[1]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
(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 North Haledon 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. 5:96-18.[2]
[2]
Editor's Note: The provisions of N.J.A.C. 5:96 expired 6-2-2015.
E. 
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 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. Legal or other fees related to litigation opposing affordable housing sites are not eligible uses of the Affordable Housing Trust Fund.
[Amended 5-20-2020 by Ord. No. 9-2020]
The Borough shall provide annual reporting of Affordable Housing Trust Fund activity to the New Jersey Department of Community Affairs, or any other entity designated by the State of New Jersey, with a copy provided to Fair Share Housing Center and posted on the municipal website, using forms developed for this purpose by the New Jersey Department of Community Affairs. The reporting shall include an accounting of all Affordable Housing Trust Fund activity, including the sources and amounts of funds collected and the amounts and purposes for which any funds have been expended.
[Amended 5-20-2020 by Ord. No. 9-2020]
A. 
The ability for the Borough to impose, collect and expend development fees shall be permitted through the expiration of the repose period covered by its Judgment of Compliance and shall continue thereafter so long as the Borough has filed an adopted Housing Element and Fair Share Plan with the Court or with a designated State administrative agency, has petitioned for a Judgment of Compliance from the Court or for substantive certification or its equivalent from a State administrative agency authorized to approve and administer municipal affordable housing compliance and has received approval of its development fee ordinance from the entity that will be reviewing and approving the Housing Element and Fair Share Plan.
B. 
If the Borough fails to pursue its authorization to impose and collect development fees after the expiration of its Judgment of Compliance, it may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds so forfeited shall be deposited into the New Jersey Affordable Housing Trust Fund, established pursuant to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320).
C. 
After the expiration of the judgment of compliance, if the Borough does not pursue or obtain continued authorization, the Borough shall not impose a residential development fee on a development that receives preliminary or final site plan approval, nor shall the Borough retroactively impose a development fee on such a development. The Borough will not expend development fees after the expiration of its substantive certification.