[HISTORY: Adopted by the Borough Council of the Borough of
Paramus 5-9-2016 by Ord. No. 2016-09. Amendments noted where applicable.[1]]
A.
The purpose of this chapter is to address the municipal affordable
housing obligation of the Borough of Paramus ("the Borough" or "Paramus"),
as prescribed by the New Jersey Supreme Court in Southern Burlington
County, N.A.A.C.P. v. Township of Mount Laurel, 92 N.J. 158 (1983)
("Mount Lauren II"), and Southern Burlington County N.A.A.C.P. v.
Township of Mount Laurel, 67 N.J. 151, cert. denied, 423 U.S. 808
(1975) ("Mount Laurel I"), and codified in the Fair Housing Act ("the
Act"), N.J.S.A. 52:27D-301 et seq., which requires that every municipality
has a constitutional obligation to provide for its fair share of its
region's need for affordable housing.
B.
The Paramus Planning Board has adopted a Housing Element and Fair
Share Plan pursuant to the Municipal Land Use Law, N.J.S.A. 40:55D-1,
et seq., which has been endorsed by the governing body, and was pending
review by the Council on Affordable Housing ("COAH") as provided by
the Act. The Fair Share Plan sets forth some of the means by which
the Borough may address its affordable housing obligation as determined
by COAH in its regulations. The last version of which was referred
to as the "Third Round Rules."
C.
However because the Supreme Court has invalidated the Third Round
Rules in their entirety, and directed COAH to draft new rules, In
the Matter of the Adoption of N.J.A.C. 5:96 and 5:97 by the New Jersey
Council on Affordable Housing, 215 N.J. 578 (2013), which COAH failed
to do, resulting in the decision of the Supreme Court in In the Matter
of the Adoption of N.J.A.C. 5:96 and 5:97 by the New Jersey Council
on Affordable Housing, 221 N.J. 1 (2015), there exists uncertainty,
at least for the period during which new rules are being judicially
considered, regarding the determination of the municipal affordable
housing obligation generally and for Paramus particularly.
D.
Consequently the Borough has determined to address its obligation
through enactment of a Borough-wide inclusionary development ordinance
which requires a 10% set-aside of affordable housing for residential
developments of three (3) and more units while affording compensating
incentives.
E.
Any plan evaluation report of the Housing Element and Fair Share
Plan and monitoring prepared by any regulatory agency shall be available
to the public at the Municipal Building, Municipal Clerk's Office,
1 Jockish Square, Paramus, New Jersey.
F.
This chapter shall be subject to amendment or repeal without any
further action by the Borough to the extent it is, in whole or in
part, inconsistent with any ruling issued by any court, or valid regulations
issued by any agency with jurisdiction or any legislative enactment.
The following terms when used in this chapter shall have the
meanings given in this section. Terms not defined in this section
shall have the meanings, if any, provided in N.J.A.C. 5:96 and N.J.A.C.
5:97.
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
Constructed in compliance with the technical design standards
of the Barrier Free Sub-code, N.J.A.C. 5:23-7.
The entity responsible for the administration of affordable
units in accordance with this Ordinance, N.J.A.C. 5:96, N.J.A.C. 5:97
and N.J.A.C. 5:80-26.1 et seq.
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
The average percentage of medium income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9; in the case of an ownership
unit, that the sales price for the unit conforms to the standards
set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented,
and, in the case of a rental unit, that the rent for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
A housing development all or a portion of which consists
of restricted units.
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 percent affordable development.
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing
trust fund.
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, C. 530 (N.J.S.A. 55:14K-1, et seq.)
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80 percent of the
units are occupied by one person that is 55 years or older; or 3)
the development has been designated by the Secretary of the U.S. Department
of Housing and Urban Development as "housing for older persons" as
defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
A household that has been certified by an Administrative
Agent as a low-income household or moderate-income household.
The Council on Affordable Housing of the State of New Jersey
that was established under the New Jersey Fair Housing Act, N.J.S.A.
52:27D-301 et seq.
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load bearing structural systems.
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land. The term "developer" shall be deemed
to include a redeveloper under the Local Housing and Redevelopment
Law, N.J.S.A. 40A:12A-1, et seq.
Money paid to the Borough by a developer for the improvement
of properties as permitted in N.J.A.C. 5:97-8.3.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with §§ 1,5,
and 6 of P.L. 1973, C. 123 (N.J.S.A. 54:1-35a through c).
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to:
new construction, the conversion of a non-residential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
A household with total gross annual household income equal
to 50 percent or less of the median household income.
A restricted unit that is affordable to a low-income household.
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load bearing structural systems.
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
The median income by household size for the applicable county,
as adopted annually by the Department.
A household with a total gross annual household income in
excess of 50 percent but less than 80 percent of the median household
income.
A restricted unit that is affordable to a moderate-income
household.
The maximum housing value, in each housing region, affordable
to a four-person household with an income at 80 percent of the regional
median as defined by the Council's adopted Regional Income Limits
as published annually by the Council.
The repair, renovation, alteration, weatherization or reconstruction
of any building or structure, pursuant to the Rehabilitation Subcode,
N.J.A.C. 5:23-6.
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1, et seq.
A household with a total gross annual household income equal
to 30 percent or less of the median household income.
A restricted unit that is affordable to a very low-income
household.
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
The Borough has determined that every residential development
in excess of two (2) units shall provide for affordable housing as
set forth in this chapter.
A.
Rehabilitation program. The purpose of the Borough's rehabilitation
program is to renovate deficient housing units that are occupied by
low- and moderate-income households. The provisions and requirements
set forth in N.J.A.C. 5:97-6.2 shall govern the Borough's rehabilitation
program.
(1)
The Borough's rehabilitation program shall be designed to renovate
deficient housing units occupied by low- and moderate-income households
such that, after rehabilitation, these units will comply with the
New Jersey State Housing Code pursuant to N.J.A.C. 5:28.
(2)
Both owner-occupied and renter-occupied units shall be eligible for
rehabilitation funds.
(3)
All rehabilitation units shall remain affordable to low- and moderate-income
households for a period of 10 years (the control period). For owner-occupied
units the control period will be enforced with a lien and for renter-occupied
units the control period will be enforced with a deed restriction.
(4)
The Borough shall dedicate a minimum of $10,000 for each unit to
be rehabilitated through this program, reflecting the minimum hard
cost of rehabilitation for each unit.
(5)
The Borough shall adopt a resolution committing to fund any shortfall
in the rehabilitation programs for the Borough.
(6)
The Borough shall designate, subject to the approval of COAH, one
or more Administrative Agents to administer the rehabilitation program
in accordance with N.J.A.C. 5:96 and N.J.A.C. 5:97. The Administrative
Agent(s) shall provide a rehabilitation manual for the rental occupancy
rehabilitation program to be adopted by resolution of the governing
body and subject to approval of COAH. Both rehabilitation manuals
shall be available for public inspection in the Office of the Municipal
Clerk and in the office(s) of the Administrative Agent(s).
(7)
Units in a rehabilitation program shall be exempt from N.J.A.C. 5:97-9
and Uniform Housing Affordability Controls (UHAC), but shall be administered
in accordance with the following:
(a)
If a unit is vacant, upon initial rental subsequent to rehabilitation,
or if a renter-occupied unit is re-rented prior to the end of controls
on affordability, the deed restriction shall require the unit to be
rented to a low- or moderate-income household at an affordable rent
and affirmatively marketed pursuant to N.J.A.C. 5:97-9 and UHAC.
(b)
If a unit is renter-occupied, upon completion of the rehabilitation,
the maximum rate of rent shall be the lesser of the current rent or
the maximum permitted rent pursuant to N.J.A.C. 5:97-9 and UHAC.
(c)
Rents in rehabilitated units may increase annually based on
the standards in N.J.A.C. 5:97-9.
(d)
Applicant and/or tenant households shall be certified as income-eligible
in accordance with N.J.A.C. 5:97-9 and UHAC, except that households
in owner-occupied- units shall be exempt from the regional asset limit.
B.
Market to affordable program.
(1)
A market to affordable program is established to permit the purchase
or subsidization of units through a written agreement with the property
owner and sold or rented to low- and moderate-income households. Subject
to the provisions of paragraph (2)(c) below, the market to affordable
programs may produce both low- and moderate-income units (the program
may be limited to only low- or only moderate-income units as per the
Fair Share Plan).
(2)
The following provisions shall apply to market to affordable programs:
(a)
At the time they are offered for sale or rental, eligible units
may be new, pre-owned or vacant.
(b)
The units shall be certified to be in sound condition as a result
of an inspection performed by a licensed building inspector.
(c)
The municipality will provide a minimum of $25,000 per unit
to subsidize each moderate-income unit and/or $30,000 per unit to
subsidize each lot-income unit, with additional subsidy depending
on the market prices or rents in a municipality.
(d)
The maximum number of creditable market to affordable units
shall be equal to no more than 10 for sale units and 10 rental units
or a combined total of 10 percent of the fair share obligation, whichever
is greater. (Additional units may be approved by COAH if the municipality
demonstrates the successful completion of its initial market to affordable
program.)
(3)
The units shall comply with N.J.A.C. 5:97-9 and UHAC with the following
exceptions:
(a)
Bedroom distribution (N.J.A.C. 5:80-26.3(b) and (c));
(b)
Low/moderate income split (N.J.A.C. 5:80-26.3(a)); and
(c)
Affordability average (N.J.A.C. 5:80-26.3(d) and (e); however:
[1]
The maximum rent for a moderate-income unit shall be affordable
to households earning no more than 60 percent of median income and
the maximum rent for a low-income unit shall be affordable to households
earning no more than 44 percent of median income; and
[2]
The maximum sales price for a moderate-income unit shall be
affordable to households earning no more than 70 percent of median
income and the maximum sales price for a low-income unit shall be
affordable to households earning no more than 40 percent of median
income.
C.
Supportive and special needs housing unit program.
(1)
All supportive and special needs housing units shall meet the following
conditions:
(a)
Supportive and special needs housing units shall be permitted
in the R-25, R-50, R-75, R-100 and R-150 Residential One Family Residential
Zones. Supportive and special needs housing includes, but is not limited
to: residential health care facilities as licensed and/or regulated
by DCA or the New Jersey Department of Health and Senior Services
if the facility is located with, and operated by, a licensed health
care facility; group homes for people with developmental disabilities
and mental illness as licensed and/or regulated by the New Jersey
Department of Human Services; permanent supportive housing; and supportive
shared living housing. Long term health care facilities including
nursing homes, and Class A, B, C, D and E boarding homes do not qualify
as supportive and special needs housing.
(b)
Supportive and special needs housing shall comply with all applicable
statutes and regulations of the State of New Jersey in addition to
all building codes.
(c)
The following provisions shall apply to permanent supportive
housing, group homes, residential health care facilities and supportive
shared living housing.
[1]
The unit of credit shall be the unit for permanent and supportive
housing, but shall be the bedroom for group homes, residential health
care facilities and supportive shared living housing.
[2]
Housing that is age-restricted shall be included with the maximum
number of units that may be age-restricted pursuant to N.J.A.C. 5:7-3.8.
[3]
Units/occupancy shall not be restricted to youth under 18 years
of age.
[4]
All sites shall meet the site suitability criteria set forth
in N.J.A.C. 5:97-3.13.
[5]
The municipality or developer/sponsor shall have site control
or the ability to control the site(s).
(d)
The bedrooms and/or units shall comply with N.J.A.C. 5:97-9
and UHAC with the following exceptions:
[1]
Affirmative marketing (N.J.A.C. 5:80-26.15); however, group
homes, residential health care facilities, permanent supportive housing
and supportive shared living housing shall be affirmatively marketed
to individuals with special needs in accordance with a plan approved
by the Council's Executive Director.
[2]
Affordability average and bedroom distribution (N.J.A.C. 5:80-26.3);
and
[3]
With the exception of units established with capital funding
through a 20-year operating contract with the Department of Human
Services, Division of Developmental Disabilities, group homes, residential
health care facilities, supportive shared living housing and permanent
supportive housing shall have the appropriate controls on affordability
in accordance with N.J.A.C. 5:97-9.
(e)
The following documentation shall be submitted prior to marketing
the completed units or facility:
[1]
An affirmative marketing plan in accordance with paragraph (d)
above; and
[2]
If applicable, proof that the supportive and/or special needs
housing is regulated by the New Jersey Department of Health and Senior
Services, the New Jersey Department of Human Services or another State
agency in accordance with the requirements of this section, which
includes validation of the number of bedrooms or units in which low-
or moderate-income occupants reside.
(f)
Municipal building permit fees may be waived in cases involving
permanent supportive housing, group homes, residential health care
facilities and supportive shared living housing development under
this section.
A.
Inclusionary set-aside.
[Amended 12-15-2020 by Ord. No. 20-34; 5-10-2022 by Ord. No. 2022-13]
(1)
To ensure realistic opportunities for the creation of affordable housing, all new multifamily residential development of five units or more within the Borough shall be required to provide and set aside affordable housing units at a rate of 15% for rental residential development and 20% for for-sale residential development, and shall not apply to residential expansions, additions, renovations, replacement, or any other type of residential development that does not result in a net increase in the number of dwellings of five or more. A fractional obligation to provide for affordable housing shall be met by a payment in lieu of construction as hereafter set forth. By way of illustration, if a project consists of 50 units, the number of affordable housing units required would be (i) 7.5 if a rental development, of which seven units would need to be constructed on- or off-site with a payment made for 0.5 of a unit or a payment in lieu pursuant to § 210-5C(3); or (ii) 10 units if a for-sale development.
(2)
Density variances. A compensatory benefit will be deemed to have been awarded, and the density bonus referred to in Subsection A(1) above will not apply, where the Borough's Zoning Board of Adjustment approves an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5), (known as a "density variance").
(3)
Relaxation of zoning standards. In all cases, the Borough's
approving land use board shall consider the granting of variances
and waivers, including but not limited to reduced setbacks, reduced
coverage, increased floor area, increased building heights and/or
additional stories so as to accommodate the increased number of units
and to reasonably result in an opportunity to provide affordable housing
except on any property adjoining a One-Family Residential Zone.
(4)
Additional incentives. Additional incentives to subsidize the creation
of affordable housing available to very-low income households may
be included in a developer's or redeveloper's agreement
at the discretion of the Borough.
B.
Development size threshold. Developments of less than three (3) units
shall not be subject to the required affordable housing set-aside.
C.
Subject to the conditions which follow, a developer shall be required
to provide affordable housing units on site.
[Amended 12-15-2020 by Ord. No. 20-34; 5-10-2022 by Ord. No. 2022-13]
(1)
The on-site construction is subject to the following controls: Developers
shall determine the number of required affordable units by multiplying
the permitted on-site units by 0.15 or 0.20, as appropriate, and then
adding the density bonus.
(2)
Off-site construction option is subject to the following controls:
(a)
Developers choosing off-site construction of affordable units
shall determine the number of required affordable units in the same
fashion as in the calculation of an on-site construction obligation.
(b)
All sites selected for off-site construction shall meet the
site suitability criteria set forth in N.J.A.C. 5:97-3.13.
(3)
The payment in lieu option is subject to the following controls:
(a)
The required subsidy for the payment in lieu option is $180,000.00
per unit.
(b)
Payments in lieu of constructing affordable units may represent
whole or fractional affordable units. A fractional affordable housing
requirement shall not be rounded.
(c)
Developers choosing the payment in lieu option shall determine
the number of required affordable units to be met by a payment in
lieu by multiplying the permitted on-site units by 0.15 or 0.20, as
appropriate, and then adding the density bonus. For example, a site
zoned for a 100-unit development shall provide funding for 15 affordable
units (15% x underlying zoning for 100 units) calculated at 15 x $180,000
= $2,700,000, if a rental development. [The site is permitted a 15%
density bonus for an additional 15 units for a total project of 115
market-rate units.]
(d)
Payments in lieu of constructing affordable units shall be deposited
into the Borough's affordable housing trust fund pursuant to N.J.A.C.
5:97-8.4 and shall be subject to the provisions thereof.
D.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
E.
Utilities and community amenities. Affordable units shall utilize
the same type of heating source as market units within the affordable
development and have access to all community amenities available to
market-rate units.
F.
Accessibility and adaptable affordable units. Inclusionary zoning
ordinances shall require that the first floor of all townhouse dwelling
units and all other multistory dwelling units comply with N.J.A.C.
5:97-3.14.
G.
Affordable administration. The affordable units shall comply with
N.J.A.C. 5:97-9 and UHAC.
H.
Phasing. In inclusionary developments the following schedule shall
be followed:
|
Maximum Percentage of Market-Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
|---|---|
|
25
|
0
|
|
25+1
|
10
|
|
50
|
50
|
|
75
|
75
|
|
90
|
100
|
I.
Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
J.
Payments-in-lieu and off-site construction. The standards for the
collection of payments-in-lieu of constructing affordable units or
standards for constructing affordable units off-site, shall be in
accordance with N.J.A.C. 5:97-6.4.
K.
Utilities. Affordable units shall utilize the same type of heating
source as market units within the affordable development.
All affordable housing units shall otherwise comply with the
standards and requirements governing affordability controls, pricing,
bedroom distribution, age restrictions, affirmative marketing, prices
and rents, and unit selection, together with all related requirements
as set forth in Section § 410-62, Affordable Housing Standards.
Where there is a site-specific fully-executed development or
redevelopment agreement to provide for affordable housing as part
of a project which has received approval from the Borough's municipal
land use boards, which predates the effective date of this chapter,
the terms and conditions of that agreement shall govern the provision
of affordable housing for that project notwithstanding any requirement
of this chapter to the contrary. (Editor's Note: This chapter was
adopted May 9, 2016 as Ord. No. 2016-9.)
A.
Within all zoning districts, nonresidential developers, except for
developers of the types of development specifically exempted, shall
pay a fee equal to 2.5% of the equalized assessed value of the land
and improvements for all new nonresidential construction on an unimproved
lot or lots.
B.
Nonresidential developers, except for developers of the types of
development specifically exempted, shall also pay a fee equal to 2.5%
of the increase in equalized assessed value resulting from any additions
or modifications or changes to existing structures to be used for
nonresidential purposes.
[Amended 10-23-2018 by Ord. No. 18-30]
C.
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement,
at the time final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
A.
Eligible exactions, ineligible exactions and exemptions for residential
development.
(1)
Affordable housing developments, developments where the developer
is providing for the construction of affordable units elsewhere in
the municipality, 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 this amended chapter shall be required to
pay development fees calculated based on the development fee ordinance
in effect prior to the adoption of this amended chapter, 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. (Editor's Note: This chapter was amended in entirety
5-9-16 by Ord. No. 2016-09.)
(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, if the expansion is not otherwise exempt
from the development fee requirement. The development fee shall be
calculated on the increase in the equalized assessed value of the
improved structure.
(4)
Owner-occupied residential structures demolished and replaced as
a result of a fire, flood, or natural disaster shall be exempt from
paying a development fee.
(5)
Owner-developers of i) newly constructed one- or two-family owner-occupied
dwelling units; or ii) reconstructed one- or two-family owner-occupied
dwelling units; or iii) additions to one- or two-family owner-occupied
dwelling units (but maintaining such units as one- or two-family owner-occupied
dwelling units), shall all be exempt from paying a development fee.
B.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development
(1)
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the two-and-a-half-percent development
fee, unless otherwise exempted below.
(2)
The two-and-a-half-percent fee shall apply to an increase in equalized
assessed value resulting from additions to existing structures to
be used for nonresidential purposes.
(3)
Nonresidential developments shall be exempt from the payment of nonresidential
development fees in accordance with the exemptions required pursuant
to P.L. 2008, c. 46, as specified in the Form N-RDF, State of New
Jersey Non-Residential Development Certification/Exemption Form. Any
exemption claimed by a developer shall be substantiated by that developer.
(4)
A developer of a nonresidential development exempted from the nonresidential
development fee pursuant to P.L. 2008, c. 46 shall be subject to it
at such time that the basis for the exemption no longer applies and
shall make the payment of the nonresidential development fee, in that
event, within three years after that event or after the issuance of
the final certificate of occupancy of the nonresidential development,
whichever is later.
(5)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Borough of Paramus as a lien against the
real property of the owner.
A.
Upon the granting of a preliminary, final or other applicable approval
for a development, the applicable approving authority shall direct
its staff to notify the Construction Official responsible for the
issuance of a building permit.
B.
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF, State of New Jersey Non-Residential
Development Certification/Exemption, to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
C.
The Construction Official responsible for the issuance of a building
permit shall notify the local Tax Assessor of the issuance of the
first building permit for a development which is subject to a development
fee.
D.
Within 90 days of receipt of that notice, the Municipal Tax Assessor,
based on the plans filed, shall provide an estimate of the equalized
assessed value of the development.
E.
The Construction Official responsible for the issuance of a final
certificate of occupancy notifies the local assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
F.
Within 10 business days of a request for the scheduling of a final
inspection, the Municipal Assessor shall confirm or modify the previously
estimated equalized assessed value of the improvements of the development;
calculate the development fee; and thereafter notify the developer
of the amount of the fee.
G.
Should the Borough fail to determine or notify the developer of the
amount of the development fee within 10 business days of the request
for final inspection, the developer may estimate the amount due and
pay that estimated amount consistent with the dispute process set
forth in Subsection b of § 37 of P.L. 2008, c. 46 (N.J.S.A.
40:55D-8.6).
H.
Fifty percent of the development fee shall be collected at the time
of issuance of the building permit. The remaining portion shall be
collected at the issuance of the 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.
I.
Appeal of development fees.
(1)
A developer may challenge residential development fees imposed by
filing a challenge with the County Board of Taxation. Pending a review
and determination by the Board, collected fees shall be placed in
an interest-bearing escrow account by the Borough of Paramus. Appeals
from a determination of the Board may be made to the tax court in
accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
(2)
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by the Borough. Appeals
from a determination of the Director may be made to the tax court
in accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
A.
There is hereby created a separate, interest-bearing housing trust
fund to be maintained by the Chief Financial Officer for the purpose
of depositing development fees collected from residential and nonresidential
developers.
B.
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(1)
Payments in lieu of on-site construction of affordable units;
(2)
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(3)
Rental income from municipally operated units;
(4)
Repayments from affordable housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of affordable units; and
(7)
Any other funds collected in connection with the Borough of Paramus'
affordable housing program.
C.
All interest accrued in the Housing Trust Fund shall only be used
on eligible affordable housing activities approved by COAH.
A.
The expenditure of all funds shall conform to a spending plan in
furtherance of the fulfillment of the Borough's affordable housing
obligation. No money deposited in the Housing Trust Fund may be used
for any activity unless for that purpose. 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, market
to affordable, 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, or any other activity
as permitted pursuant to N.J.A.C. 5:97-8.7 through 5:97-8.9 and specified
in the approved spending plan.
B.
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, 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.
(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.
C.
The Borough 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.
A.
The provisions of the Borough's Affordable Housing Development Fee Ordinance, Chapter 210 of the Paramus Code is hereby repealed in its entirety and replaced by this chapter.
B.
All ordinances or part of ordinances inconsistent with this chapter
are hereby repealed as to any such inconsistencies.
This chapter shall be subject to amendment or repeal without
any further action by the Borough to the extent it is, in whole or
in part, inconsistent with any ruling issued by any court, valid regulations
issued by any agency with jurisdiction or any legislative enactment.
