In Holmdel Builders 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 Wharton shall not spend development
fees until COAH has approved a plan for spending such fees and the
Borough 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.
Imposed and collected development fees that
are challenged shall be placed in an interest-bearing escrow account
by the Borough of Wharton. 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.