[HISTORY: Adopted by the Mayor and Council
of the Borough of Palisades Park as indicated in article histories.
Amendments noted where applicable.]
[Adopted 3-21-2006 by Ord. No. 1467]
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 Palisades Park shall not spend
development fees until COAH has approved a plan for spending such
fees and 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:
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.
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
in 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 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.
[Amended 9-16-2008 by Ord. No. 1515]
A.
Within the A, AA, E, MHR-1 and MHR-2 Residential Zoning
Districts, residential developers shall pay a fee of 1 1 /2% of the
equalized assessed value for new residential development and for additions
and alterations to existing residential developments, provided that
no increased density is permitted. This fee shall be paid by noninclusionary
housing developments where the unit threshold of five units has not
been met or exceeded. All developments that meet or exceed the threshold
of five units shall be deemed inclusionary developments and must provide
their fair share obligation.
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.
A.
Within the B-1, B-2, M-1 and MC Zoning Districts,
nonresidential developers shall pay a fee of 2% of the equalized assessed
value for new nonresidential development and for additions and alterations
to existing nonresidential developments.
[Amended 9-16-2008 by Ord. No. 1515]
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 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.
[Amended 9-16-2008 by Ord. No. 1515]
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.[1]
[1]
Editor's Note: Former Subsection C, concerning
developers of retail, office or single-family lots, which immediately
followed this subsection, was repealed 9-16-2008 by Ord. No. 1515.
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 the time of issuance of a 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 Palisades Park. 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.
There is hereby created a separate, interest-bearing
housing trust fund in an official depository for the Borough 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 Palisades Park shall provide COAH with written
authorization, in the form of a three-party escrow agreement between
the municipality, the official depository, and COAH to permit COAH
to direct the disbursement of the funds as provided for in N.J.A.C.
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. 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, improvement
of land to be used for affordable housing, purchase of housing, extensions
or improvements of roads and infrastructure to affordable housing
sites, financial assistance designed to increase affordability, or
administration necessary for creation and implementation of the Housing
Element and Fair Share Plan. The expenditure of all funds shall conform
to a spending plan approved by COAH.
[Amended 9-16-2008 by Ord. No. 1515]
B.
Funds shall not be expended to reimburse the Borough
of Palisades Park for past housing activities.
C.
After subtracting development fees collected to finance
an RCA, a rehabilitation program or a new construction project that
are necessary to address the Borough of Palisades Park 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 Palisades Park 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 Palisades Park 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.[1]
[1]
Editor's Note: Former Subsection E, concerning
the percentage of fees expended on administration, which immediately
followed this subsection, was repealed 9-16-2008 by Ord. No. 1515.
The Borough of Palisades Park 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.
[Amended 9-16-2008 by Ord. No. 1515]
The ability for the Borough of Palisades Park
to impose, collect and expend development fees shall expire with its
substantive certification on 2018 unless the Borough of Palisades
Park 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 the Borough of
Palisades Park fails to renew its ability to impose and collect development
fees prior to 2018, it may resume the imposition and collection of
development fees only by complying with the requirements of N.J.A.C.
5:94-6. The Borough of Palisades Park shall not impose a development
fee on a development that receives preliminary or final approval after
the expiration of its substantive certification on 2018. The Borough
of Palisades Park will not expend development fees after the expiration
of its substantive certification on 2018.
[Adopted 6-17-2008 by Ord. No. 1511]
The purpose of this article is to create the
administrative mechanisms needed for the execution of the Borough
of Palisades Park's responsibility to assist in the provision of affordable
housing pursuant to the Fair Housing Act of 1985.
As used in this article, the following terms
shall have the meanings indicated:
The entity responsible for administering the affordability
controls of some or all units in the affordable housing program for
the Borough of Palisades Park to ensure that the restricted units
under administration are affirmatively marketed and sold or rented,
as applicable, only to low- and moderate-income households.
The employee charged by the governing body with the responsibility
for oversight and administration of the affordable housing program
for the Borough of Palisades Park.
A.
Establishment of position of Municipal Housing Liaison.
There is hereby established the position of Municipal Housing Liaison
for the Borough of Palisades Park.
B.
Subject to the approval of the Council of Affordable
Housing (COAH), the Municipal Housing Liaison shall be appointed by
the Governing Body and may be a full- or part-time municipal employee.
C.
The Municipal Housing Liaison shall be responsible
for oversight and administration of the affordable housing program
for the Borough of Palisades Park, including the following responsibilities,
which may not be contracted out, exclusive of Section C(6), which
may be contracted out:
(1)
Serving as the Borough of Palisades Park's primary
point of contact for all inquiries from the state, affordable housing
providers, administrative agents, and interested households;
(2)
Monitoring the status of all restricted units in the
Borough of Palisades Park's Fair Share Plan;
(3)
Compiling, verifying, and submitting annual reports
as required by COAH;
(4)
Coordinating meetings with affordable housing providers
and administrative agents, as applicable;
(5)
Attending continuing education opportunities on affordability
controls, compliance monitoring, and affirmative marketing as offered
or approved by COAH;
D.
Subject to approval by COAH, the Borough of Palisades Park may contract with or authorize a consultant, authority, government or any agency charged by the governing body, which entity shall have the responsibility of administering the affordable housing program of the Borough of Palisades Park, except for those responsibilities which may not be contracted out pursuant to Subsection C above. If the Borough of Palisades Park contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and affirmative marketing plan, the Municipal Housing Liaison shall supervise the contracting administrative agent.
E.
Compensation. Compensation shall be fixed by the governing
body at the time of the appointment of the Municipal Housing Liaison.
F.
Administrative powers and duties assigned to the Municipal
Housing Liaison.
(1)
Affirmative marketing.
(a)
Conducting an outreach process to insure affirmative
marketing of affordable housing units in accordance with the affirmative
marketing plan of the Borough of Palisades Park and the provisions
of N.J.A.C. 5:80-26.15; and
(b)
Providing counseling or contracting to provide
counseling services to low- and moderate-income applicants on subjects
such as budgeting, credit issues, mortgage qualification, rental lease
requirements, and landlord/tenant law.
(2)
Household certification.
(a)
Soliciting, scheduling, conducting and following
up on interviews with interested households;
(b)
Conducting interviews and obtaining sufficient
documentation of gross income and assets upon which to base a determination
of income eligibility for a low- or moderate-income unit;
(c)
Providing written notification to each applicant
as to the determination of eligibility or noneligibility;
(d)
Requiring that all certified applicants for
restricted units execute a certificate substantially in the form,
as applicable, of either the ownership or rental certificates set
forth in Appendixes J and K of N.J.A.C. 5:80-26.1 et. seq.;
(e)
Creating and maintaining a referral list of
eligible applicant households living in the housing region and eligible
applicant households with members working in the housing region where
the units are located; and
(f)
Employing the random selection process as provided
in the affirmative marketing plan of the Borough of Palisades Park
when referring households units.
(3)
Affordability controls.
(a)
Furnishing to attorneys or closing agents forms
of deed restrictions and mortgages for recording at the time of conveyance
of tide of each restricted unit;
(b)
Creating and maintaining a file on each restricted
unit for its control period, including the recorded deed with restrictions,
recorded mortgage and note, as appropriate;
(c)
Ensuring that the removal of the deed restrictions
and cancellation of the mortgage note are effectuated and properly
filed with the appropriate county's register of deeds or county clerk's
office after the termination of the affordability controls for each
restricted unit;
(d)
Communicating with lenders regarding foreclosures;
and
(e)
Ensuring the issuance of continuing certificates
of occupancy or certifications pursuant to N.J.A.C. 5:80-26.10.
(4)
Resale and rental.
(a)
Instituting and maintaining an effective means
of communicating information between owners and the administrative
agent regarding the availability of restricted units for resale or
rental; and
(b)
Instituting and maintaining an effective means
of communicating information to low- and moderate-income households
regarding the availability of restricted units for resale or re-rental.
(5)
Processing request from unit owners.
(a)
Reviewing and approving requests from owners
of restricted units who wish to take out home equity loans or refinance
during the term of their ownership;
(b)
Reviewing and approving requests to increase
sales prices from owners of restricted units who wish to make capital
improvements to the units that would affect the selling price, such
authorizations to be limited to those improvements resulting in additional
bedrooms or bathrooms and the cost of central air conditioning systems;
and
(c)
Processing requests and making determinations
on requests by owners of restricted units for hardship waivers.
(6)
Enforcement.
(a)
Securing annually lists of all affordable housing
units for which tax bills are mailed to absentee owners and notifying
all such owners that they must either move back to their unit or sell
it;
(b)
Securing from all developers and sponsors of
restricted units, at the earliest point of contact in the processing
of the project or development, written acknowledgement of the requirement
that no restricted unit can be offered, or in any other way committed,
to any person, other than a household duly certified to the unit by
the administrative agent;
(c)
The posting annually in all rental properties,
including two-family homes, of a notice as to the maximum permitted
rent together with the telephone number of the administrative agent
where complaints of excess rent can be made;
(d)
Sending annual mailings to all owners of affordable
dwelling units, reminding them of the notices and requirements outlined
in N.J.A.C. 5:80-26.18(d)4;
(e)
Establishing a program for diverting unlawful
rent payments to the municipality's affordable housing trust fund
or other appropriate municipal fund approved by the DCA;
(f)
Creating and publishing a written operating
manual, as approved by COAH, setting forth procedures for administering
such affordability controls; and
(g)
Providing annual reports to COAH as required.
(7)
The administrative agent shall have authority to take
all actions necessary and appropriate to carry out its responsibilities
hereunder.
