[Adopted 4-18-2005 by Ord. No. 1523-2005]
This article shall be known and may be cited
as the "Affordable Housing Development Fee Ordinance of the Township
of Hamilton."
[Amended 6-5-2006 by Ord. No. 1566-2006; 12-15-2008 by Ord. No. 1639-2008]
A.
All new residential dwelling units within the Township
of Hamilton, not exempt from the collection of development fees in
accordance with the provisions of this article, shall pay to the Township
of Hamilton 1.5% of the equalized assessed value of the land and improvements,
provided no density increase is permitted.
B.
In the event that an increase in residential density
is permitted pursuant to N.J.S.A. 40:55D-70d(5) (known as a "d" variance),
the fee shall be increased to 6% of the equalized assessed value for
each additional unit that is realized. However, if the zoning on a
site has changed during the two-year period preceding the filing of
such variance application, the 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.
[Amended 6-5-2006 by Ord. No. 1566-2006; 12-15-2008 by Ord. No. 1639-2008]
A.
Within all zoning districts, all new development of
nonresidential buildings and structures on an unimproved lot or lots,
not otherwise exempt from the collection of development fees in accordance
with the provisions of this article or the Statewide Non-residential
Development Fee Act,[1] shall pay to the Township of Hamilton a fee of 2.5% of
the equalized assessed value of the land and improvements.
[1]
Editor's Note: See N.J.S.A. 40:55D-8.1 et
seq.
B.
Additions to existing structures to be used for nonresidential
purposes, not otherwise exempt from the collection of development
fees in accordance with the provisions of this article or the Statewide
Non-residential Development Fee Act,[2] shall pay to the Township of Hamilton a fee of 2.5% of
the increase in the equalized assessed value of the structure.
[2]
Editor's Note: See N.J.S.A. 40:55D-8.1 et
seq.
[Amended 2-6-2006 by Ord. No. 1551-2006; 12-15-2008 by Ord. No. 1639-2008]
A.
Affordable housing developments (e.g., 100% affordable
development, inclusionary developments, etc.) and developments where
the developer has made a payment in lieu of constructing affordable
units shall be exempt from the payment of development fees.
B.
Whenever nonresidential development is situated on
real property that has been previously developed with a building,
structure or other improvement, the nonresidential development fee
shall be 2.5% of the difference between the equalized assessed value
of the land and improvements on the property at the time the final
certificate of occupancy is issued and the equalized assessed value,
as determined by the tax assessor, at the time the developer or owner,
including any previous owners, first sought approval for a construction
permit, including, but not limited to demolition permits, pursuant
to the State Uniform Construction Code,[1] or approval under the Municipal Land Use Law (N.J.S.A.
40:55D-1 et seq.). If the calculation required under this subsection
results in a negative number, the nonresidential development fee shall
be zero.
[1]
Editor's Note: See N.J.S.A. 52:27D-119 et
seq.
C.
Developments that have received preliminary or final site plan approval and a variance from § 203-187 of the Township Code, if applicable, 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.
D.
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,[2] as specified in the Form N-RDF, State of New Jersey Non-Residential
Development Certification/Exemption. Any exemption claimed by a developer
shall be substantiated by that developer.
[2]
Editor's Note: See N.J.S.A. 40:55D-8.1 et
seq.
E.
The nonresidential portion of a mixed-use-inclusionary
or market-rate development shall be subject to the development fee
of 2.5% unless otherwise exempted under this section.
F.
The 2.5% nonresidential development fee of 2.5% shall
not apply to an increase in equalized assessed value resulting from
alterations, change in use within the existing footprint, reconstruction,
renovations and repairs.
G.
Loss of exemption.
(1)
The developer of a nonresidential development exempted
from the nonresidential development fee pursuant to this section shall
be subject to said fee at such time 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.
(2)
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 § 167-34 of this article within 45 days of the termination of the property tax exemption. Unpaid nonresidential development fees under these circumstances may be enforceable by Hamilton Township as a lien against the real property owner.
H.
All single lot development of owner-occupied housing shall be subject
to a development fee of 0.5% of the equalized assessed value of the
land and improvements, provided that the lot was owned by the owner,
or a member of the owner’s immediate family, and existed on
the Official Tax Map of the Township of Hamilton on or before December
17, 2012. For the purpose of this subsection, the term "immediate
family" shall mean those persons related by blood or legal relationship
in the following manner: grandparents, grandchildren, parents, sons,
daughters, brothers and sisters, nieces or nephews, aunts and uncles
and first cousins, husbands and wives, civil union partners, great-grandparents,
and great-grandchildren.
[Added 12-17-2012 by Ord. No. 1734-2012; amended 2-4-2013 by Ord. No.
1737-2013]
[Amended 12-15-2008 by Ord. No. 1639-2008]
A.
General. Upon the granting of a preliminary, final
or other applicable approval for a development that is subject to
the provisions of this article, the applicable approving authority
shall notify the construction official responsible for the issuance
of construction permits.
B.
Residential fees.
(1)
Developers shall pay 50% of the estimated residential
development fee to the Township of Hamilton at the time of issuance
of building permits. Said fee shall be based on the value estimated
by the Tax Assessor prior to the issuance of construction permits.
(2)
Developers shall pay the balance of the residential
development fee to the Township of Hamilton at the issuance of a certificate
of occupancy. At the issuance of the certificate of occupancy the
Tax Assessor shall calculate the equalized assessed value and the
appropriate development fee. The developer shall be responsible for
paying the difference between the fee calculated at time of certificate
of occupancy and the amount paid at the issuance of construction permits.
C.
Nonresidential fees.
(1)
The developer of a nonresidential development shall
be provided with a copy of Form N-RDF, State of New Jersey Non-Residential
Development Certification/Exemption, as part of the construction permit
application package. The developer 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 Form N-RDF. The Tax Assessor shall verify
exemptions.
(2)
The construction official responsible for the issuance
of a construction permit shall notify the Tax Assessor of the issuance
of the first construction permit for a development which is subject
to a development fee.
(3)
Within 90 days of receipt of that notice, the Tax
Assessor, based on the plans provided, shall provide an estimate of
the equalized assessed value of the nonresidential development.
(4)
The construction official responsible for the issuance
of a final certificate of occupancy shall notify the Tax Assessor
of any and all requests for the scheduling of a final inspection of
a property which is subject to a nonresidential development fee.
(5)
Within 10 days of a request for the scheduling of
a final inspection, the Tax 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.
(6)
Should the Township fail to determine or notify the
developer of a nonresidential development of the amount of the development
fee within 10 business days of the request for a final inspection,
the developer may estimate the amount due and pay that estimated amount
consistent with the dispute process set forth in Subsection 37.b.
of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
(7)
The developer of a nonresidential development shall
pay 100% of the calculated nonresidential development fee prior to
the issuance of the final certificate of occupancy for the subject
property.
D.
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 Township. Appeals
from a determination of the Board may be made to the tax court in
accordance with the provisions of the State Uniform Tax 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
Township. 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 an interest bearing trust
fund bank account with Bank of America for the purpose of receiving
development fees from residential and nonresidential developers. All
development fees paid by developers pursuant to this article shall
be deposited in this fund. No money shall be expended from the Housing
Trust Fund unless the expenditure conforms to a spending plan approved
by COAH or the Superior Court, as the case may be.
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:
[Added 12-15-2008 by Ord. No. 1639-2008[1]]
(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 Township's
affordable housing program.
[1]
Editor's Note: This ordinance also redesignated
former Subsection B as Subsection D.
C.
All interest accrued in the Housing Trust Fund shall
only be used on eligible affordable housing activities approved by
COAH or the Superior Court, as the case may be.
[Added 12-15-2008 by Ord. No. 1639-2008]
D.
If COAH or the Superior Court (as the case may be)
determines that the Township of Hamilton is not in conformance with
COAH's Rule on development fees, COAH or the Court are authorized
to direct the manner in which all development fees collected pursuant
to this article shall be expended. Such authorization is pursuant
to: this article, COAH's Rules on development fees and the written
authorization from the Governing Body to the aforesaid Bank.
A.
Money deposited in [a] the Housing Trust Fund may
be used for any activity approved by COAH or the Superior Court (as
the case may be) for addressing the Township of Hamilton's low- and
moderate-income housing obligations and may be set up as a grant or
revolving loan fund. Such activities include, but are not necessarily
limited to: preservation or purchase of housing for the purpose of
maintaining or implementing affordability controls, housing rehabilitation,
new construction of affordable housing units and related costs, accessory
apartment, market-to-affordable, regional housing partnership programs
[contribution agreements], 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, the purchase of land for low- and moderate-income housing,
extensions and/or improvements of roads and infrastructure to low-
and moderate-income housing sites, financial assistance designed to
render units more affordable to low- and moderate-income households
and administrative costs necessary to implement the Township of Hamilton's
housing element and Fair Share Plan, or any other activity as permitted
pursuant to N.J.A.C. 5:97-8.7 through 8.9 and specified in the approved
spending plan. The expenditure of all money shall conform to a spending
plan approved by COAH and/or the Superior Court.
[Amended 12-15-2008 by Ord. No. 1639-2008]
B.
At least 30% of all development fees collected and
interest earned shall be devoted to render affordable units included
in the municipal Fair Share Plan more affordable. 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 the regional median income.
[Amended 6-5-2006 by Ord. No. 1566-2006; 12-15-2008 by Ord. No. 1639-2008]
(1)
Examples of such affordability assistance activities
include, but are not limited to: down payment assistance, security
deposit assistance, low-interest loans, rental assistance and other
forms of assistance allowed pursuant to N.J.A.C. 5:97-8.8(a).
(2)
Affordability assistance to households earning 30%
or less of the regional 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 Township to bonus credits pursuant to N.J.A.C. 5:97-3.7.
(3)
Payments made 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.
No more than 20% of the revenues collected from development
fees may be expended on administrative costs necessary to develop,
revise or implement the Housing Element and Fair Share Plan, a new
construction program 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.
[Added 12-15-2008 by Ord. No. 1639-2008]
(1)
Legal or other fees related to litigation opposing
affordable housing sites or objecting to COAH regulations and/or action
are not eligible uses of the Affordable Housing Trust Fund.
(2)
Hamilton Township 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.
D.
Development fee revenues shall not be expended to
reimburse the Township of Hamilton for housing activities that preceded
Substantive Certification by COAH or the issuance of a Final Order
of Repose by the Superior Court. Development fees may be used to reimburse
the Township for the outlay of funds or bonding for current housing
activities prior to the collection of development fees.
The Township shall complete and return to COAH
all monitoring forms included in monitoring requirements related to
the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
funds from the sale of units with extinguished controls, barrier-free
escrow funds, rental income, repayments from affordable housing program
loans, and any other funds collected in connection with the Township's
affordable housing program, as well as to the expenditure of revenues
and implementation of the plan approved by the court. All monitoring
reports shall be completed on forms designed by COAH.
This article permitting the collection of development
fees, shall expire as a result of any of the following:
A.
An action of the Court with jurisdiction or COAH's
dismissal or denial of a petition for substantive certification.
B.
An action by the Court with jurisdiction or COAH's
revocation of either substantive certification or its certification
of this article.
C.
The expiration of the time defined by a judgment of
repose or substantive certification unless the Township has filed
an adopted housing element with COAH or the Court; petitioned for
substantive certification and/or entry of a final judgment of compliance;
and received COAH's and/or the Court's approval of its Development
Fee Ordinance.
D.
The ability for Township of Hamilton to impose, collect
and expend development fees shall expire with its judgment of compliance
unless the Township of Hamilton has filed an adopted Housing Element
and Fair Share Plan with COAH or the Court, has petitioned for substantive
certification, and has received COAH's or the Court's approval of
its Development Fee Ordinance. If the Township of Hamilton fails to
renew its ability to impose and collect development fees prior to
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). The Township of Hamilton
shall not impose a residential development fee on a development that
receives preliminary or final site plan approval after the expiration
of its substantive certification or judgment of compliance, nor shall
the Township of Hamilton retroactively impose a development fee on
such a development. The Township of Hamilton shall not expend development
fees after the expiration of its substantive certification or judgment
of compliance.
[Added 12-15-2008 by Ord. No. 1639-2008]
B.
AFFORDABLE HOUSING DEVELOPMENT
COAH
DEVELOPER
DEVELOPMENT FEES
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
HOUSING TRUST FUND
JUDGMENT OF REPOSE
SUBSTANTIVE CERTIFICATION
As used in this article, the following terms shall
have the meanings indicated:
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.
[Added 12-15-2008 by Ord. No. 1639-2008]
The New Jersey Council on Affordable Housing.
The legal or beneficial owner or owners of a lot or of any
land 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.
[Added 12-15-2008 by Ord. No. 1639-2008]
Money 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 by the Tax Assessor, utilizing estimates for construction
cost. Final equalized assessed value will be determined at project
completion by the Municipal Tax Assessor.
Those strategies that minimize the impact of development
on the environment and enhance the health, safety and well-being of
residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
[Added 12-15-2008 by Ord. No. 1639-2008]
The interest-bearing account in which all development fees
will be deposited pursuant to N.J.A.C. 5:97-8.1 et seq.
[Amended 12-15-2008 by Ord. No. 1639-2008]
A judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
A determination by COAH approving a municipality's housing
element and fair share plan in accordance with the provisions of the
New Jersey Fair Housing Act of 1985[2] and the rules criteria as set forth herein. A grant of
substantive certification shall be valid for a period of six years
or 10 years in accordance with the terms and conditions contained
therein, depending upon the housing cycle in question.
[2]
Editor's Note: See N.J.S.A. 52:27D-301 et
seq.
