Article XI Fees, Guaranties, Inspections and Off-Tract Improvements

Subdivision and site plan schedule.

		Application Charge	Development Review Escrow Account
Subdivisions, Minor
	Minor subdivision Minor lot change	$60 per lot $50	$1,000 $200
Major Subdivision Concept Sketch
	Five lots or more Less than five lots	$250 $250	$2,000 $1,000
Preliminary Major Subdivision
	Five lots or more Less than 5 lots	$250 $100	$200 per lot $220 per lot
Final Major Subdivision
	Five lots or more Less than five lots	$250 $20 per lot	$100 per lot $120 per lot, $300 minimum
Minor Site Plan		$25	$500
Preliminary Site Plan
	Basic fee Proposed use of new and/or existing buildings	$250 plus	$500 plus
	Less than 5,000 square feet	$250 plus	$1,000 plus
	5,000 to 10,000 square feet	$0.03 per square foot plus	$0.20 per square foot plus
	10,000 to 50,000 square feet Greater than 50,000 square feet	$0.02 per square foot plus $0.01 per square foot plus	$0.16 per square foot plus $0.12 per square foot plus
	Acreage of lot or part thereof	$5 per acre	$20 per acre
Preliminary Site Plan for Multifamily Site
	Basic application	$250 plus	$1,000 plus
	Building site plan	$25/unit	$200 per unit
Final Site Plan		50% of preliminary fee	50% of preliminary escrow amount
Site Plan Concept Plan
	Minor plan	$15	$250
	Major plan	$25	$20 per acre or part thereof, plus $0.010 per square foot of site area disturbed, minimum of $500
	Multifamily site	$50 per acre	$200 per acre
Amended Subdivision/ Site Plans		50% of initial fee	50% of initial escrow amount
Certificate of Preexisting Nonconforming Status [Added 4-3-2006 by Ord. No. 9-2006]		$150	No escrow
Waiver of Site Plan Review [Added 10-17-2016 by Ord. No. 13-2016]		$100	$1,000

Conditional use. Application for a permit authorizing a conditional use shall be made directly to the Planning Board on forms provided by the Secretary of the Board accompanied by checks in accordance with the following:

Application fee: $150.

Development Review Escrow Account: $700.

Variances. Every application for variance approval shall be accompanied by checks in accordance with the following:

		Application Charge	Development Review Escrow Account
Appeals (40:55D-70a)		$150	$500
Interpretation (40:55D-70b)		$150	$500
Hardship/Bulk (40:55D-70c)
	Residential	$150	$350
	All others	$250	$500
Use (40:55D-70d)
	Existing structure	$250	$1,000
	On vacant lot	$250	$2,000
Permit (40:55D-34 and 35)		$100	$250

Copy of minutes transcripts or decisions: $1 per page for first copy of said page, plus $0.25/copy for each additional copy of said page.

Inspection fees. Estimated cost of site improvements (less buildings):

Less than $4,000: 8% of estimated cost.

Four thousand dollars through $ 4,999: 7% of estimated cost.

Five thousand dollars through $ 9,999: $350, plus 5% of excess over $5,000.

Ten thousand dollars through $ 49,999: $600, plus 4% of excess over $10,000.

(e)

Fifty thousand dollars and up: $2,200, plus 3% of excess over $50,000.

Tape recordings of meetings: $25 per tape.

The application charge is a flat fee to cover administrative expenses and is nonrefundable. The escrow account is established to cover the cost of professional services, including engineering, planning, legal and other expenses associated with the review of submitted materials, the submission of reports, preparation of resolutions, attendance at meetings and development agreements, as well as professional services associated with the dedication and acceptance of developer improvements. Sums not utilized in this process shall be returned to the applicant. If additional sums are deemed necessary, the applicant shall be notified of the required additional amount and shall add the sum to the escrow within 15 days. The following form of Escrow Agreement shall be signed by each applicant;

[Amended 10-20-1997 by Ord. No. 16-97]

ESCROW AGREEMENT
THIS AGREEMENT made this _______________________day of 2____ between ___________________________, hereinafter referred to as "Applicant," and the Planning or Zoning Board of the Township of Readington, hereinafter referred to as "Board," and the Township Committee of the Township of Readington, hereinafter referred to as "Township."
WHEREAS, Applicant is proceeding under the Land Use Ordinance dated December 1992, for approval of a _________________________ and _________________________________.
WHEREAS, the Board and the Township desire to establish an escrow whereby work required to be performed by professionals employed by the Board and the Township will be reimbursed by the Applicant as required under the provisions of this chapter cited above, and
WHEREAS, both parties agree that it is appropriate to reduce this understanding to written form.
WITNESSETH: It is mutually agreed upon among the parties that:
1.	PURPOSES.
A.	The Board authorizes its professional staff to review, inspect, report and study all plans, documents, statements, improvements and provisions made by the Applicant in conforming to the requirements of this chapter cited and referred to above. The Board directs its professional staff to make all oral and/or written reports to the Board of its conclusions and findings derived from the review, study, investigation and like or similar duties performed as elsewhere authorized. The Board directs its professional staff to attend all meetings, including public hearings or meetings, work sessions, subcommittee meetings, site inspections or any other meetings necessary for the proper evaluation of the Applicant's presentation and to thereby assist the Board in arriving at a valid determination as to the merits of the application. The applicant agrees to pay all reasonable professional fees incurred by the Board for the performance of the duties outlined above.
B.	In addition, the Township authorizes its professional staff to participate in any of the activities outlined in Subsection A above to the extent that the Township may become involved in the application and/or development approval process, including, but not limited to development, sewer or other agreements to be made with the Township, ordinances, dedication and acceptance of roadways, open space, easements or improvements, performance and maintenance bond review and the like. The applicant agrees to pay all reasonable professional fees incurred by the Township for the performance of the duties outlined above.
C.	The Applicant shall be billed for actual out-of-pocket expenses incurred by the professionals, including normal and typical expenses incurred in processing applications and inspecting improvements. However, the Applicant shall not be charged for municipal clerical or administrative functions, overhead expenses, meeting room charges or any other municipal costs and expenses except as may be permitted under the Municipal Land Use Law, N.J.S.A. 40:55D-53.2 et seq., and any amendments thereto or any other applicable sections.
2.	ESCROW ESTABLISHED. Applicant, Board and Township, in accordance with the provisions of this Agreement, hereby create an escrow to be established with the _____________________ of the Township of Readington.
3.	ESCROW FUNDED. Applicant by execution of this Agreement shall pay to the Township to be deposited in the depositor referred to in Section 2 such sums as are required by ordinance. Execution of this Agreement by the Township acknowledges receipt of the sums referred to under this paragraph.
4.	INCREASE IN ESCROW FUND. If during the existence of this Escrow Agreement the funds held by the escrow holder shall become insufficient to cover any voucher or bill submitted by the professional staff and reviewed and approved by the Board or Township, as the case may be, Applicant shall, within 15 days from the date of receipt of written notice, deposit additional sums with the escrow holder to cover the amount of the deficit referred to above. The written notice referred to in this paragraph shall be sent to the Applicant by regular, certified or telefaxed mail at ____________________________, telefax #____________________. Said notice shall be in the form set forth in Schedule 2 attached to this Agreement. Receipt of regular mail shall be presumed to have occurred three days after mailing; certified mail shall be deemed accepted on the date of mailing; telefax shall be deemed accepted on the date sent if transmitted before 5:00 p.m. on a business day, otherwise it shall be deemed accepted on the next business day. The notice required under this paragraph shall be given by the Board or Township upon discovering that the escrow amount has become deficient. If the Developer does not deposit sufficient funds within the fifteen-day period mentioned above, the professional may stop work on the project except for any required health and safety inspections which shall be made and charged back against the replenishment of funds. If the escrow remains insufficient for 90 days after the notice has been sent to the Applicant, the Township may then revoke the application or development permit. An escrow deposit shall be considered insufficient if it has reached 10% of the original amount deposited or if a bill or voucher is received which exceeds the amount currently on deposit, whichever is applicable. If the person, place or telefax number of the Applicant changes for the purposes of giving notice, it shall be the Applicant's responsibility to inform the Township Clerk and the Chief Financial Officer of the change, in writing, immediately.
5.	TIME OF PAYMENT. The Professionals referred to in this Agreement, upon conclusion of their services, or periodically during the performance of their services, shall submit vouchers to the Township conforming to the requirements established by the Board or the Township, as the case may be, for vouchers of the type and kind referred to under this paragraph. Said vouchers shall include the amounts of all fees and costs incurred as a result of the services set forth under Section 1 of this Agreement. At the same time the vouchers are submitted to the Township, a copy of the bill shall be submitted to the Applicant for information purposes. Vouchers shall be sent to the applicant to its address at:
	If Applicant's address should change, it shall be the duty of the Applicant to provide the Township Clerk and the Township Chief Financial Officer with its new address, immediately. Correspondence or inquiries from the Applicant to the Township shall be sent to the attention of the Chief Financial Officer and the Township Clerk, Readington Township Municipal Building, 509 Route 523, Whitehouse Station, NJ 08889.
6.	BOARD REVIEW. The Board and the Township, to the extent it is involved in the application, shall review the vouchers submitted by the professionals to determine whether the services have been performed in the manner and to the degree required by this Agreement. Upon making a determination that said services have been performed properly, the Board shall process said vouchers in the same manner and under the same terms as are normally employed for vouchers submitted for work performed on behalf of the Township. At the conclusion of this processing, the amounts specified in said vouchers shall be deducted by the escrow holder from the escrow established pursuant to this Agreement.
7.	APPLICANT'S OBJECTION. The Applicant shall have the right to make periodic inspections of the records maintained by the escrow holder to determine the status of the escrow at any point in time by contacting the Township for an appointment during normal business hours. Where the Applicant objects to the payment of any voucher from the escrow fund, he shall notify the Township in writing within seven days from receipt of the informational copy of the professional's voucher, except that if the professional has not supplied the Applicant with an informational copy of the voucher, then the Applicant shall notify the Township within 10 days from receipt of the Township's statement of activity against the deposit or escrow account. The Applicant shall simultaneously provide copies of the notice to the Chief Financial Officer, the Township or Board, depending on the entity for whom the services were provided and the professional who rendered the service. The Township or its designee shall have a reasonable time to attempt to resolve the matter. However, if the matter is not resolved within 30 days of the date the notice is received by the Township, the Applicant may appeal to the County Construction Board of Appeals within 45 days from receipt of the informational copy of the professional's voucher or within 60 days from receipt of the Township's statement of activity against the deposit or escrow account, if the informational copy was not sent. The standards of review to be utilized by the Township or its designee in determining whether said payments are proper are whether the fees incurred were reasonable and whether the work has been performed properly.
8.	INTEREST ALLOCATIONS AND RETURN OF UNUSED ESCROW. If an amount greater than $5,000 is deposited by an Applicant in escrow, the money, until repaid or applied to the purposes for which it has been deposited, including the Applicant's portion of the interest earned on it, shall continue to be the Applicant's property although held in trust by the municipality. The Township may retain interest paid on a deposit which does not exceed $100 for the year. If the amount of interest earned is greater than $100, the entire amount shall belong to the Applicant and shall be refunded to him annually or at the time the deposit is repaid or applied to the purposes for which it was deposited, as the case may be, unless the Applicant, in writing, directs otherwise. Notwithstanding the aforementioned, the Township may retain an amount not to exceed 33 1/3% of the entire amount for administrative and custodial expenses. In addition, if the escrow account remains insufficient for more than 90 days after notification to the Applicant, any and all interest which may result from or arise out of the deposits remaining in escrow shall be applied, if needed, towards the compensation due the professionals as provided elsewhere in this Agreement. If any escrow balance is remaining, after the Board has granted final approval and signed the deeds, subdivision plat or site plan, in the case of application reviews and deposits; or after the improvements have been approved and accepted, in the case of improvement inspection escrows and deposits, then it shall be returned to the Applicant.
9.	REFERENCES TO DAYS. All references to days in this Agreement are to calendar days.
10.	COLLECTION. If the Township must institute legal action to enforce the terms of this Agreement against the Applicant, the Applicant shall be responsible for reasonable attorney fees and costs of suit.
11.	SEVERABILITY. If any portion of this Agreement is declared to be unconstitutional, invalid or inoperative, in whole or in part, by a court of competent jurisdiction, such portion shall, to the extent that it is not unconstitutional, invalid or inoperative, remain in full force and effect, and no such determination shall be deemed to invalidate the remaining portions of this Agreement.
	IN WITNESS WHEREOF, the parties hereto have set their hands and seals the date first written above.
	Notary Public	Applicant
		Board of the Township of Readington By: Township of Readington
		By:

Where one application for development includes several approval requests, the sum of the individual required fees shall be paid.

Each applicant at the time of submission of the application shall agree in writing to pay all reasonable costs for professional services in relation to the application, including costs incurred with any informal review of a concept plan and for inspection of the improvements. All costs for services in relation to the application and inspection must be paid in accordance with the Municipal Land Use Law and municipal ordinances. Approved plats, plans or deeds shall not be signed nor construction permits issued, nor improvements accepted, until all costs are paid in full.

[Amended 10-20-1997 by Ord. No. 16-97]

All escrow amounts not actually used shall be refunded to the applicant.

Should unused escrow funds remain in the applicant's account for a period of two years with no action occurring on the project, the municipality shall notify the applicant of the balance and determine the status of the application. If the applicant submits a letter of abandonment or withdrawal of the application, the municipality shall attempt to return the remaining funds. If the applicant cannot be located or the funds are returned undeliverable, the Planning Board and Zoning Board of Adjustment shall so notify the governing body who may transfer the remaining escrow from that applicant's account into the general treasury by resolution adopted at a public meeting.

If an applicant desires a court reporter, the cost for taking testimony and transcribing it and providing a copy of the transcript to the Township shall be at the expense of the applicant who shall arrange for the reporter's attendance.

Amendment of preliminary or final plat or plan. An applicant seeking to amend an approved preliminary or final plat or plan shall pay a fee of 1/2 the preliminary or final plat or plan fee, as appropriate. If the approving authority determines that the proposed amendment will result in a substantial change of the previously approved plat or plan, the application shall be treated as a new application for preliminary or final approval and be processed accordingly and the applicant shall pay a full fee in accordance with this chapter.

Site plan application fees and escrows for telecommunications installations:

[Added 6-7-1999 by Ord. No. 11-99; amended 10-2-2000 by Ord. No. 31-2000]

	Application Charge	Plus	Escrow Account
	$2,500		$5,000

Tax map and geographic information system (GIS) maintenance fees.

[Added 6-3-2002 by Ord. No. 20-2002; amended 7-15-2002 by Ord. No. 29-2002]

The following fees shall be paid by the applicant at the time of adoption of a resolution of subdivision or site plan approval by the Municipal Planning Board of the Township of Readington for the cost of making upgrades and modifications to the tax maps and GIS of the Township of Readington relating to said applications. These fees are subject to modification as needed by adoption of a resolution of the Township Committee.

		Tax Map Fee	GIS Fee
(a)	Minor Subdivision, two to three lots	$200	$200
		Tax Map Fee	GIS Fee
(b)	Final major subdivision:
	4 to 7 lots	$500	$500
	8 to 12 lots	$900	$900
	13 to 19 lots	$1,250	$1,250
	20 lots or more (plus $50 per lot in excess of 20)	$1,500	$1,500
		Tax Map Fee	GIS Fee
(c)	Site plans	$200	$200

Payments by escrow fees required hereunder shall be an expressed condition of any subdivision or site plan approval granted by the Readington Township Municipal Planning Board.

At the time the final plat is submitted for signature of the municipal officials, the applicant shall submit a CAD-generated data file(s), prepared by a New Jersey licensed land surveyor, directly translatable into an identical image of the file map. The file shall be submitted on a standard 3.5 inch floppy disk or standard compact disk.

The format shall be either a CADD drawing or an ASCII drawing interchange file (i.e. a ADXF extension file) compatible with AutoCAD release 13 or later.

All required information shall appear on separate layers of the drawing.

Text shall also appear on a separate layer of the drawing.

(7)

The file must be drawn at its real New Jersey plane coordinates NAD83 (or the most current state plane coordinate system) position and the view must be unrotated so that the NJPCS north points orthographically up (vertical) in the screen. The drawing shall identify, at a minimum, three monument markers distributed around the corners of the tract. These monument markers shall be identified in US survey feet.

(8)

The information required in the data file(s) shall be:

All required information submitted on the final plat shall appear on separate layers of the drawing.

The location of all existing and proposed signage and catch basins to be given as a layer in the CADD drawing.

The location of all existing and proposed culverts, given as the center of the structure at the centerline of the roadway, to be given as a layer in the CADD drawing.

The data file(s) shall contain any site description information as required by the Readington Township Municipal Planning Board. This data includes site description information shown on the preliminary plan and/or site plan, environmental impact statement as required by Readington Township's Land Use Development Code § 148-102 and any data given by the applicant after the initial plans are submitted. Site description information shall include the following information as deemed applicable by the Readington Township Municipal Planning Board:

Wetlands.

Marshes, ponds, lakes.

[3]

Vegetated areas.

[4]

Endangered species habitats.

[5]

Steep slopes.

[6]

Floodplains.

[7]

Conservation easements and open space.

[8]

Streams and stream corridors.

[9]

Distinctive scenic and/or historic features.

(9)

At the discretion of the applicant, the municipal surveyor who maintains the tax map can be requested to do the required conversion to CAD based on those hourly fees listed in the surveyor's annual professional services agreement.

Tree removal application, inspection and payment in lieu of mitigation fees.

[Added 3-16-2020 by Ord. No. 07-2020]

Application fee: $35 dollars for each tax lot.

Payment in lieu of mitigation fee. Fees accepted as payment in lieu of mitigation shall be used exclusively for the administration of this chapter and for the purchase and planting of replacement trees on public land or in a street right-of-way. Payment in lieu of mitigation fees shall be as identified in § 148-79.12, Tree replacement requirements.

§ 148-105 Improvement guarantees.

[Amended 3-5-2007 by Ord. No. 4-2007; 3-4-2024 by Ord. No. 03-2024]

Guarantees required. Before recording a final subdivision plat or recording a minor subdivision deed or as a condition of final approval or as a condition of the issuance of a zoning permit pursuant to N.J.S.A. 40: 55D-65d, the Township or approving Board shall for the purposes of assuring the installation and maintenance of certain on- and off-tract improvements require the developer to furnish a performance guarantee and provide for a maintenance guarantee in accordance with Subsections A(1) and (2) of this section.

Performance guarantees for certain improvements, landscaping, temporary certificates of occupancy and safety/stabilization.

The developer shall furnish a performance guarantee in favor of the Township of Readington in an amount not to exceed 120% of the cost of installation of only those improvements required by an approval or developer's agreement, ordinance or regulation to be dedicated to the Township or other public entity, and that have not yet been installed, which cost shall be determined by the Township Engineer, according to the method of calculation set forth in N.J.S.A. 40:55D-53.4, for the following improvements as shown on the approved plans or plat: streets, pavement, gutters, curbs, sidewalks, street lighting, street trees, surveyor's monuments, as shown on the final map and required by the "map filing law" P.L. 1960, c. 141 (N.J.S.A. 46:23-9.9 et seq.; repealed by section 2 of P.L.2011, c. 217) or N.J.S.A. 46:26B-1 through N.J.S.A. 46:26B-8, water mains, sanitary sewers, community septic systems, drainage structures, public improvements of open space, and any grading necessitated by the preceding improvements. The Township Engineer shall prepare an itemized cost estimate of the improvements to be covered by the performance guarantee, which itemized cost estimate shall be appended to each performance guarantee posted by the obligor.

The performance guarantee may also be required to include, at the discretion of the Township or approving board, a guarantee for the installation of privately owned perimeter buffer landscaping within an improved phase or section of a development as a condition of approval. At the developer's option, a separate performance guarantee may be posted by the developer for the privately owned perimeter buffer landscaping.

In the event that a developer shall seek a temporary certificate of occupancy for a development, unit, lot, building, or phase of a development, then as a condition of the issuance thereof, the developer shall furnish a separate guarantee, referred to as a "temporary certificate of occupancy guarantee" in favor of the Township in an amount equal to 120% of the cost of installation of only those improvements or items remaining to be completed or installed under the terms of the temporary certificate of occupancy and which must be installed or completed as a condition precedent to the issuance of the permanent certificate of occupancy for the development, unit, lot building or phase of development and which are not covered by an existing performance guarantee. Upon posting of a "temporary certificate of occupancy guarantee," all sums remaining under a performance guarantee, required pursuant to Subsection A(1)(a), which relate to the development, unit, lot, building or phase of development for which the temporary certificate of occupancy is sought, shall be released. The scope and amount of the "temporary certificate of occupancy guarantee" shall be determined by the zoning officer, Township Engineer, or other municipal official as may be designated by ordinance. The Township shall not, at any time, hold more than one guarantee or bond of any type with respect to the same line item. The "temporary certificate of occupancy guarantee" shall be released by the zoning officer, Township Engineer, or other municipal official designated by ordinance upon the issuance of a permanent certificate of occupancy with regard to the development, unit, lot, building or phase as to which the temporary certificate of occupancy relates.

A developer shall furnish to the Township a "safety and stabilization guarantee" in favor of the Township. At the developer's option a "safety and stabilization" may be furnished either as a separate guarantee or as a line item of the performance guarantee. A "safety and stabilization guarantee" shall be available to the Township, solely for the purpose of returning property that has been disturbed to a safe and stable condition or otherwise implementing measures to protect the public from access to an unsafe or unstable condition. The Township shall be permitted to access the guarantee when:

Site disturbance has commenced and, thereafter, all work on the development has ceased for a period of at least 60 consecutive days following such commencement for reasons other than force majeure, and

Work has not resumed within 30 days following the provision of written notice by the Township to the developer of the Township's intent to claim payment under the guarantee. The Township shall not provide notice of its intent to claim payment under a "safety and stabilization guarantee" until a period of at least 60 days has elapsed during which all work on the development has ceased for reasons other than force majeure. The Township shall provide written notice to a developer by certified mail or other form of delivery providing evidence of receipt. Per N.J.S.A. 40:55D-53a(1)(d), the amounts to be posted in connection with a "safety and stabilization guarantee" shall be as follows:

[a]

For a development with bonded improvements in an amount not exceeding $100,000 shall be $5,000.

[b]

For a development with bonded improvements exceeding $100,000, such guarantee shall be calculated as a percentage of the bonded improvement costs of the development or phase of development as follows:

[i]

$5,000 for the first $100,000 of bonded improvement costs, plus 2.5% of bonded improvement costs in excess of $100,00 up to $1,000,000, plus 1% of bonded improvement costs in excess of $1,000,000.

[c]

The Township shall release a separate "safety and stabilization guarantee" to a developer upon the developer's furnishing of a performance guarantee which includes a line item for safety and stabilization in the amount required under this subsection.

[d]

The Township shall release a "safety and stabilization guarantee" upon the Township Engineer's determination that the development of the project site has reached a point that the improvements installed are adequate to avoid any potential threat to public safety.

Maintenance guarantees.

Prior to the release of a performance guarantee required pursuant to Subsection A(1)(a), Subsection A(1)(b), or both Subsection A(1)(a) and (b) of this subsection, the developer shall post with the Township a maintenance guarantee in an amount not to exceed 15% of the cost of the installation of the improvements which are being released.

If required, the developer shall post with the Township, upon the inspection and issuance of final approval of the following private site improvements by the Township Engineer, a maintenance guarantee in an amount not to exceed 15% of the cost of the installation of the following private site improvements; stormwater management basins, in-flow and water quality structures within the basins, and the outflow pipes and structures of the stormwater management system, if any, which cost shall be determined according to the method of calculation set forth in section 15 of P.L. 1991, c. 256 (N.J.S.A. 40:55D-53.4).

The term of the maintenance guarantee shall be for a period not to exceed two years and shall automatically expire at the end of the established term.

Improvements owned by other entities. In the event that other governmental agencies or public utilities automatically will own the utilities to be installed or the improvements are covered by a performance or maintenance guarantee to another governmental agency, no performance or maintenance guarantee, as the case may be, shall be required by the Township for such utilities or improvements.

Extensions of time for the installation of bonded improvements. The time allowed for installation of the bonded improvements for which the performance guarantee has been provided may be extended by the governing body of the Township by resolution. As a condition or as part of any such extension, the amount of any performance guarantee shall be increased or reduced, as the case may be, to an amount not to exceed 120% of the cost of the installation, which cost shall be determined by the Township Engineer according to the method of calculation set forth in section 15 of P.L. 1991, c. 256 (N.J.S.A. 40:55D-53.4) as of the time of the passage of the resolution.

Recourse by the Township. If the required bonded improvements are not completed or corrected in accordance with the performance guarantee, the obligor and surety, if any, shall be liable thereon to the Township for the reasonable cost of the improvements not completed or corrected and the Township may either prior to or after the receipt of the proceeds thereof complete such improvements. Such completion or correction of improvements shall be subject to the public bidding requirements of the "Local Public Contracts Law," P.L. 1971, c. 198 (N.J.S.A. 40A:11-1 et seq.).

Reduction of guarantees.

Upon substantial completion of all required street improvements (except for the top course) and appurtenant utility improvements, and the connection of same to the public system, the developer may request of the governing body, in writing, by certified mail, addressed in care of the Township Clerk, that the Township Engineer prepare, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection A(1)(a) of this section, a list of all uncompleted or unsatisfactory completed bonded improvements. If such as request is made, the obligor shall send a copy of the request to the Township Engineer. The request shall indicate which bonded improvements have been completed and which bonded improvements remain uncompleted in the judgment of the obligor. Thereupon the Township Engineer shall inspect all bonded improvements covered by obligor's request and shall file a detailed list and report, in writing, with the governing body, and shall simultaneously send a copy thereof to the obligor not later than 45 days after receipt of the obligor's request.

The list prepared by the Township Engineer shall state, in detail, as to each bonded improvement determined to be incomplete or unsatisfactory, the nature and extent of the incompleteness of each partially completed improvement or the nature and extent of, and remedy for, the unsatisfactory state of each completed bonded improvement determined to be unsatisfactory. The Township Engineer's report shall identify each bonded improvement determined to be complete and satisfactory together with a recommendation as to the amount that the performance guarantee may be reduced relating to the completed and satisfactory bonded improvement, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection A(1)(a) of this section.

The Township Committee, by resolution, shall either approve the bonded improvements determined to be complete and satisfactory by the Township Engineer, or reject any or all of those bond improvements upon the establishment of cause for rejection within said resolution, and shall approve and authorize the amount of reduction to be made in the performance guarantee relating to the improvements accepted, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection A(1)(a) of this section. This resolution shall be adopted within 45 days after receipt of the list and report prepared by the Township Engineer. Once the resolution is adopted by the governing body, the developer shall be released from all liability pursuant to its performance guarantee, with respect to the approved bonded improvements, except for that portion adequately sufficient to secure completion or correction of the improvements remaining to be approved; provided that 30% of the amount of the total performance guarantee and "safety and stabilization guarantee" posted may be retained by the municipality to ensure completion and acceptability of all improvements. The "safety and stabilization guarantee" shall be reduced by the same percentage that the performance guarantee is being reduced at the time of each performance guarantee reduction. For the purpose of releasing the obligor from liability pursuant to its performance guarantee, the amount of the performance guarantee attributable to each approved bonded improvement shall be reduced by the total amount for each such improvement, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection A(1)(a) of this section, including any contingency factor applied to the cost of installation. If the sum of the approved bonded improvements would exceed 70% of the total amount of the performance guarantee, then the Township may retain 30% of the amount of the total performance guarantee and "safety and stabilization guarantee" to ensure completion and acceptability of bonded improvements, as provided above, except that any amount of the performance guarantee attributable to bonded improvements for which a "temporary certificate of occupancy guarantee" has been posted shall be released from the performance guarantee even if such release would reduce the amount held by the Township below 30%.

If the Township Engineer fails to send or provide the list and report as requested by the developer pursuant to Subsection E(1) of this section within 45 days from receipt of the request, the developer may apply to the court in a summary manner for an order compelling the Township Engineer to provide the list and report within a stated time and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party. If the Township Committee fails to approve or reject the bonded improvements determined by the Township Engineer to be complete and satisfactory or reduce the performance guarantee for the complete and satisfactory improvements within 45 days from the receipt of the Township Engineer's list and report, the developer may apply to the court in a summary manner for an order compelling, within a stated time, approval of the complete and satisfactory improvements and approval of a reduction in the performance guarantee for the approvable complete and satisfactory improvements in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to Subsection A(1)(a) of this section; and the cost of applying to the court, including reasonable attorney's fees, may be awarded to the prevailing party.

In the event that the obligor has made a cash deposit with the Township or approving authority as part of the performance guarantee, then any partial reduction granted in the performance guarantee pursuant to this subsection shall be applied to the cash deposit in the same proportion as the original cash deposit bears to the full amount of the performance guarantee, provided that if the developer has furnished a "safety and stabilization guarantee," the Township may retain cash equal to the remaining amount of the "safety and stabilization guarantee."

If any portion of the required bonded improvements is rejected, then the approving authority may require the developer to complete or correct such improvements and, upon completion or correction, the same procedure of notification, as set forth in this Subsection F shall be followed.

(7)

Nothing herein, however, shall be construed to limit the right of the developer to contest by legal proceedings any determination of the Township Committee or the Township Engineer.

Successor developers/owners. If the property or any part of the property is sold or otherwise conveyed to a successor developer prior to the completion and acceptance of all improvements, an Assignment of Developer's Agreement and/or Assignment of the Developer's rights in the project and new performance, maintenance or other guarantees shall be required from the new owner or successor developer. Upon the transfer of ownership of property that is the subject of a construction permit, and prior to the beginning or continuing work authorized by the construction permit, the new owner or successor developer shall file with the Construction Code Office an application for a permit update to notify the Construction Code Office of the name and address of the new owner or successor developer and of all other changes to information previously submitted to the Township. The Construction Code Office shall not approve the application for a permit update until it receives notification from the governing body or its designee that the new owner or successor developer has furnished adequate replacement, performance, maintenance or other guarantees and Assignment of Developer's Agreement or Developer's rights in the project or property.

Final approval in stages. In the event that final approval is to be accomplished by stages or sections of development pursuant to Subsection a of section 29 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-38), the provisions of this section shall be applied by stage or section.

§ 148-106 Escrow accounts.

The Township shall make all of the payments to professionals for services rendered to the municipality for review of applications for development, review and preparation of documents, inspection of improvements or other purposes of N.J.S.A. 40:55D-1 et seq. and any amendments thereto. The developer shall make a deposit with the Township Clerk toward anticipated municipal expenses for these professional services. The amount of the deposit required shall be reasonable in regard to the scale and shall be pursuant to vouchers from the professionals stating the hours spent, the hourly rate and the expenses incurred. The Township shall render a written final accounting to the developer on the uses to which the deposit was put. Thereafter, the Township shall, upon written request, provide copies of the vouchers to the developer. If the salary, staff support and overhead for a professional are provided by the Township, the charge to the deposit shall not exceed 200% of the sum of the products resulting from multiplying the hourly base salary of each professional by the number of hours spent by the respective professional on review of the application for development or the developer's improvements, as the case may be. For other professionals, the charge to the deposit shall be at the same rate as all other work of the same nature by the professional for the municipality.

In those instances where money in excess of $5,000 is deposited by an applicant with the Township for professional services employed by the Township to review applications for development, municipal inspection fees or to satisfy performance guaranty requirements, the money, until repaid or applied to the purposes for which it has been deposited, including the applicant's portion of the interest earned thereon, except as otherwise provided in this chapter, shall continue to be the property of the applicant and shall be held in trust by the Township. Money deposited shall be held in escrow. The Township shall deposit the money in a banking institution or savings and loan association in this state insured by an agency of the federal government or in any other fund or depository approved for such deposits by the state, in an account bearing interest at the minimum rate currently paid by the institution or depository on time or savings deposits. The municipality shall notify the applicant in writing of the name and address of the institution or depository in which the deposit is made and the amount of the deposit. The municipality shall not be required to refund an amount of interest paid on a deposit which does not exceed $100 for the year. If the amount of interest exceeds $100, that entire amount shall belong to the applicant and shall be refunded to him by the Township annually or at the time the deposit is repaid or applied to the purposes for which it was deposited, as the case may be, except that the municipality may retain for administrative expenses a sum equivalent to no more than 33 1/3% of that entire amount, which shall be in lieu of all other administrative and custodial expenses.

§ 148-107 Inspection fees.

[Amended 3-4-2024 by Ord. No. 03-2024]

The developer shall reimburse the Township for reasonable inspection fees paid to the Township Engineer for the foregoing inspection of improvements. Such fees shall not exceed the sum of the amounts set forth in Subsection A(1) and A(2). The Township may require the developer to post the inspection fees into escrow in an amount:

Not to exceed, except for extraordinary circumstances, the greater of $500 or 5% of the cost of bonded improvements that are subject to a performance guarantee under § 148-105A(1)(a), A(1)(b), or both § 148-105A(1)(a), A(1)(b); and

Not to exceed 5% of the cost of private site improvements that are not subject to a performance guarantee under § 148-105A(1)(a), which cost shall be determined pursuant to section 15 of P.L. 1991, c. 256 (N.J.S.A. 40:55D-53.4).

For those developments for which the inspection fees total less than $10,000, fees may, at the option of the developer, be paid in two installments. The initial amount deposited in escrow by a developer shall be 50% of the inspection fees. When the balance of the amount placed on deposit by the developer deposit drops to 10% due to inspection fees paid to the Township Engineer, the developer shall deposit the remaining 50% of the inspection fees.

For those developments for which the inspection fees total $10,000 or greater, fees may, at the developer's option, be paid in four installments. The initial amount deposited in escrow by a developer shall be 25% of the inspection fees. When the balance of the amount placed on deposit by the developer drops to 10% due to inspection fees paid to the Township Engineer, the developer shall make additional deposits of 25% of the inspection fees.

If the Township determines that the amount placed in escrow for the payment of inspection fees, as calculated pursuant to Subsection A(1) and A(2), is insufficient to cover the cost of additional required inspections, the Township may require the developer to deposit additional funds into escrow provided that the Township delivers to the developer a written inspection escrow deposit request, signed by the Township Engineer which: 1) informs the developer of the need for additional inspections; 2) details the items or undertakings that require inspection; 3) estimates the time required for those inspections; and 4) estimates the cost of performing those inspections.

The Township Engineer shall not be required to perform any inspection if sufficient funds to pay for those inspections are not on deposit.

In the event that final approval is by stage or sections of development, the provisions of this section shall be applied by stage or section.

§ 148-108 Acceptance of improvements.

[Amended 3-4-2024 by Ord. No. 03-2024]

To the extent that any of the improvements have been dedicated to the Township on the subdivision plat or site plan, the municipal governing body shall be deemed, upon the release of any performance guarantee required pursuant to § 148-105A, to accept dedication for public use of streets or roads and any other improvements made thereon according to site plans and subdivision plats approved by the approving authority, provided that such improvements have been inspected and have received final approval by the Township Engineer. Prior to such acceptance, the developer and/or any successors in interest to developer shall also provide an affidavit stating that there are no liens or other legal encumbrances on any of the improvements or utilities proposed to be dedicated to the Township. Notwithstanding anything contrary within, nothing shall prohibit the Township from formally accepting such improvements via ordinance in accordance with N.J.S.A. 40A: 12-5, et seq.

Prior to acceptance, if applicable, a written statement from the sewerage authority serving the development shall be obtained and submitted to the Township Committee and Township Engineer or applicable other administrative officer confirming that all public sewerage facilities have been installed in accordance with the approved plans and any amendments thereto and in accordance with any applicable Township ordinances and specifications.

§ 148-109 Inspection and tests.

All site improvements and utility installations for both site plans and subdivisions shall be inspected during the time of their installation under the supervision of the Township Engineer to ensure satisfactory completion. The cost of said inspection shall be the responsibility of the owner who shall pay an inspection fee in accordance with § 148-107.

In no case shall any paving work (including prime and seal coats) be done without permission from the Township Engineer. At least two working days' notice shall be given to the Township Engineer prior to any construction so that he or a qualified representative may be present at the time the work is to be done.

Shade trees shall not be planted until all grading and earth moving is completed. The seeding of grass and the placing of surveyor's monuments shall be among the last operations.

The Township Engineer's office shall be notified prior to each of the following phases of work so that he or a qualified representative may inspect the work.

Road subgrade.

Curb and gutter forms.

Curbs and gutters.

Road paving.

Sidewalk forms.

Sidewalks.

Drainage pipes and other drainage construction.

Street name signs.

Monuments.

Sanitary sewers.

Detention and/or retention basins.

(12)

Topsoil, seeding and planting.

(13)

Underground utilities.

Any improvement installed contrary to the plan or plat approved by the Township shall constitute just cause to void the municipal approval.

Any improvement installed without notice for inspection pursuant to § 148-109D hereinabove shall constitute just cause for:

Removal of the uninspected improvement;

The payment by the developer of any costs for material testing;

The restoration by the developer of any improvements disturbed during any material testing; and/or

The issuance of a stop-work order by the Township Engineer pending the resolution of any dispute.

Inspection by the Township of the installation of improvements and utilities shall not operate to subject the Township of Readington to liability for claims, suits or liability of any kind that may at any time arise because of defects or negligence during construction or at any time thereafter; it being recognized that the responsibility to maintain safe conditions at all times during construction and to provide proper utilities and improvements is upon the owner and his contractor, if any.

§ 148-110 Off-tract improvements.

Required improvements. Applicants shall be required, as a condition for approval of a subdivision or site plan, to pay their pro rata share of the cost providing reasonable and necessary street improvements and/or water, sewerage and drainage facility improvements, and any necessary easements therefor, located outside the property limits of the subject premises, but indicated in the Township Master Plan and necessitated or required by construction or improvements within such subdivision or development. The following criteria shall be utilized in determining the developer's proportionate pro rata monetary share for the necessary off-tract developments.

Improvements to be constructed at the expense of the developer. In cases where the need for an off-tract improvement is created by the proposed subdivision or development and where no other property owners receive a special benefit thereby (as opposed to a mere incidental benefit), the applicant may be required, as a condition of approval and at the applicant's sole expense, to acquire and/or improve lands outside the tract and dedicate such lands to Readington Township or Hunterdon County or, in lieu thereof, require the subdivider or developer to deposit with the Township a sum of money sufficient to allow the Township to acquire and/or improve such lands or conditions it may deem appropriate under the circumstances.

General standards for other improvements. In cases where the need for any off-tract improvement to be implemented now or in the future is necessitated by the proposed development application and where it is determined that properties outside the development will also be benefited by the improvement, the following criteria, together with the provisions or rules and regulations of Readington Township or any department thereof, may be utilized in determining the developer's proportionate share of such improvements:

Sanitary sewers. For distribution facilities, including the installation, relocation or replacement of collector, trunk and interceptor sewers and the installation, relocation or replacement of other appurtenances associated therewith, the applicant's proportionate share shall be computed as follows:

The capacity and the design of the sanitary sewer system shall be based on the Rules and Regulations for the Preparation and Submission of Plans for Sewerage Systems, New Jersey State Department of Environmental Protection and Energy, and all Readington Township sewer design standards, including infiltration standards.

Developer's pro rata share:

The capacity of the existing system to serve the entire improved drainage area shall be computed. If the system is able to carry the total development drainage basin, no improvement or enlargement cost will be assigned to the developer although some charges, including, but not limited to, capacity charges, may be imposed. If the existing system does not have adequate capacity or requires extension for the total development drainage basin, the prorated enlargement or improvement share shall be computed as follows:

	Developer's Cost	=	Development gpd
	Total enlargement or improvement cost		Total tributary gpd

If it is necessary to construct a new system in order to develop the subdivision or development, the prorated enlargement share to the developer shall be computed as follows:

Developer's Cost	=	Development
Total project cost --		Tributary gpd Total tributary gpd to new system
In some instances it may be necessary through development agreements and/or sewer agreements for the developer to pay 100% of the cost of the improvement with provisions for reimbursement.

[3]

The plans for the improved system or the extended system shall be prepared by the developer's engineer. All work shall be calculated by the developer and approved by the Township Engineer.

Roadways. For street widening, alignment, channelization of intersections, construction of barriers, new or improved traffic signalization, signs, curbs, sidewalks, trees, utility improvement uncovered elsewhere, the construction or reconstruction of new or existing streets and other associated streets or traffic improvements, the applicant's proportionate cost shall be determined as follows:

Outside of the TDD.

The applicant's engineer shall provide the Township Engineer and/or Traffic Engineer with the existing and anticipated peak hour volumes which impact the off-tract areas in question, which volumes shall analyze pedestrian, bicycle and motor vehicle traffic.

The applicant shall furnish in conjunction with the Township Engineer and/or Traffic Engineer a plan for the proposed off-tract improvements, which shall include the estimated peak hour traffic generated by the proposed development. The proposed improvements shall restore the level of service to the no-build state or to a minimum baseline of service agreed upon by the Township and the applicant. The ratio of the peak hour traffic generated by the proposed development to the future peak hour traffic shall form the basis of the fair share. The fair share shall be computed as follows:

	Developer's Cost	=	Additional Peak-Hour Traffic Generated by the Development
	Total cost of roadway improvement and/or extension		Future total peak-hour traffic

[3]

Improvements which benefit only the applicant shall be entirely the applicant's responsibility and are not considered in the fair share determination. Examples of this are acceleration and deceleration lanes for access points, left turn slots which only provide access to a site and traffic signals located at the applicant's driveways.

Within the TDD. The applicant shall contact the Hunterdon County Planning Board for developer's pro rata share for the Readington-Tewksbury Transportation Development District.

Drainage improvements. For the stormwater and drainage improvements, including the installation, relocation or replacement of storm drains, culverts, catch basins, manholes, riprap or improved drainage ditches and appurtenances thereto and the relocation or replacement of other storm drainage facilities or appurtenances associated therewith, the applicant's fair share shall be determined as follows:

The capacity and design of the drainage system to accommodate stormwater runoff shall be based upon a drainage area method described in Urban Hydrology for Small Watersheds, Technical Release 55, Rational/Modified Rational Method, Soil Conservation Service USDA, January 1975, as amended, and shall be computed by the developer's engineer and approved by the Township Engineer. Water quality standards for the discharge of stormwater shall be in accordance with current state regulations.

The capacity of the enlarged, extended or improved system required for the subdivision or development and areas outside of the subdivision or development shall be computed by the developer's engineer and be subject to the approval of the Township Engineer. The plans for the improved system shall be prepared by the developer's engineer and the estimated cost of the enlarged system shall be calculated by the Township Engineer. The fair share for the proposed improvement shall be computed as follows:

	Developer's Cost	=	Development cfs
	Total enlargement or improvement cost of drainage facilities		Total tributary cfs

For water supply and distribution facilities, the applicant's proportionate share shall be determined by the Planning Board with the advice of the Township Engineer and other appropriate agencies.

Escrow accounts.

Where the proposed off-tract improvement is to be undertaken at a future date, funds required for the improvement shall be deposited to the credit of Readington Township in a separate account until such time as the improvement is constructed. In lieu of a cash escrow account, developers may present irrevocable letters of credit for the term required in a form acceptable to the Township Attorney. If the off-tract improvement is not begun within 10 years of the deposit, all moneys and interest shall be returned to the applicant or the letter of credit, as the case may be, surrendered. An off-tract improvement shall be considered begun if Readington Township has taken legal steps to provide for the design and financing of such improvements.

In the event the payment by the applicant is less than its share of the actual cost of the off-tract improvements, then the applicant shall be required to pay its appropriate share of the cost thereof. If the payment is more than its appropriate share of the actual cost, than repayment in the amount equal to the difference between the deposit and the share of the actual cost shall be made.

Where a developer pays the amount determined as his pro rata share under protest, he may institute legal action within one year of such payment in order to preserve the right to a judicial determination as the fairness and reasonableness of such amount.

Referral to Township Committee.

Where applications for development suggest the need for off-tract improvements, whether to be installed in conjunction with development in question or otherwise, the Planning Board or the Zoning Board of Adjustment, as the case may be, shall forthwith forward to the Township Committee a list and description of all such improvements together with a request that the Township Committee determine and advise the Board of the procedure to be followed in construction or installation thereof, including timing. The Board shall defer final action upon the subdivision or site plan until receipt of the Township Committee determination or the expiration of 90 days after the forwarding of such list and description to the Township Committee without determination having been made, whichever comes sooner.

The Township Committee, within 90 days after receipt of said list and description, shall determine and advise the Planning Board or Zoning Board of Adjustment, as the case may be, concerning the procedure to be followed and advise the Board with regard to suggested conditions of approval, if any, to adequately protect the municipality.

In the event that the Planning Board or Zoning Board of Adjustment, as the case may be, is required by statute to act upon the application prior to receipt of the Township Committee's determination as to construction of off-tract improvements, it shall request the applicant to consent to an extension of time within which to act, of sufficient duration to enable the Township Committee to make the aforesaid determination. In the event that the applicant is unwilling to consent to the requested extension of time, the Planning Board or Zoning Board of Adjustment, as the case may be, shall, in its discretion, either itself determine the procedure to be followed in constructing the aforesaid improvements or shall condition its approval upon the subsequent determination of the Township Committee.

Implementation of off-tract improvements.

In all cases, developers shall be required to enter into an agreement or agreements with Readington Township in regard to off-tract improvements, in accordance with this chapter and any other ordinances, policies, rules and regulations of the Township of Readington, Hunterdon County and the State of New Jersey and any departments, authorities or agencies thereof.

Where properties outside the subject tract will be benefited by the improvements, the Township Committee may require the applicant to escrow sufficient funds, in accordance with § 148-110D (Escrow accounts) hereinabove, to secure the developer's pro rata share of the eventual cost of providing future structural improvements based upon the standards expressed herein.

Where properties outside the subject tract will benefit by the improvements, the Township Committee may determine that the improvement or improvements are to be installed by the municipality as a general improvement, the cost of which is to be borne as a general expense. If the Township Committee shall determine that the improvement or improvements shall be constructed or installed as a general improvement, the Township Committee may direct the Planning Board to estimate, with the aid of the Township Engineer or such other persons who have pertinent information or expertise, the amount, if any, by which the total cost thereof will exceed the total amount by which all properties, including the subject tract, will be specifically benefited thereby and the subdivider or developer shall be liable to the municipality for such expense.

If the Township Committee shall determine that the improvement or improvements shall be constructed or installed as a local improvement, all or a part of the cost of which is to be assessed against properties benefited thereby in proportion to the benefits conferred by the improvements in accordance with Chapter 56 of Title 40 of the Statutes of the State of New Jersey, the developer may be required to sign an agreement acknowledging and agreeing to this procedure and, in addition, the Township Committee may require that the developer shall be liable to the municipality, in addition to the amount of any special assessments against the subject property for benefits conferred by the improvement or improvement, the difference between the total cost actually incurred and the total amount by which all properties, including the subject tract, are specially benefited by the improvement as the same may be determined by the Board of Improvement Assessors.

If the Township Committee shall determine that the improvements are to be constructed or installed by the applicant, such agreement may contain provisions, consistent with the standards in this chapter and any other rules, regulations or policies of the Township of Readington, County of Hunterdon and the State of New Jersey and any departments, authorities or agencies thereof with jurisdiction therein, whereby the applicant shall be reimbursed by the municipality or otherwise, as a result of any participation fees, connection charges, charges paid in regard to developer's agreements with other applicants and the like, all in accordance with an agreement between the Township Committee and the applicant.

In determining the procedures to be followed in the event of the submission of a list and request from the Planning Board, the Township Committee shall be guided by the following standards and considerations:

The local trends in regard to the probability of development within the drainage or circulation area in question and the intensity of such development;

The risk and exposure that neighboring areas are subject to in the event that the improvements to be required are delayed;

The extent to which temporary measures may sufficiently alleviate the condition or conditions requiring the off-tract improvement and the likelihood that larger, regional or subregional facilities will be required in the future to serve the development tract and the general area of the municipality in which the same is located; and

The extent to which the health, safety and welfare of the residents, both current and future, depend upon the immediate implementation of the off-tract improvement.

§ 148-111 COAH development fees.

[Added 5-17-1993; amended 10-4-1999 by Ord. No. 20-99 12-4-2000 by Ord. No. 40-2000;[1] 12-20-2004 by Ord. No. 40-2004; 5-2-2005 by Ord. No. 14-2005; 7-7-2008 by Ord. No. 18-2008; 11-4-2009 by Ord. No. 27-2009]

Purpose.

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 (the Act), 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.

Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), COAH is authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that are under the jurisdiction of the Council or court of competent jurisdiction and have a COAH-approved spending plan may retain fees collected from nonresidential development.

This section establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's regulations and in accordance P.L. 2008, c. 46, §§ 8 and 32 through 38. Fees collected pursuant to this section shall be used for the sole purpose of providing low- and moderate-income housing. This section shall be interpreted within the framework of COAH's rules on development fees, codified at N.J.A.C. 5:97-8.

Basic requirements.

This section is being adopted in accordance with a resolution adopted by COAH entitled "Resolution Approving Development Fee Ordinance Amendment, Readington Township/Hunterdon County" on August 4, 2009, as required by N.J.A.C. 5:96-5.1.

AFFORDABLE HOUSING DEVELOPMENT

Readington Township shall not spend development fees until COAH has approved a plan for spending such fees in conformance with N.J.A.C. 5:97-8.10 and 5:96-5.3.

Definitions. The following terms, as used in this section, 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.

COAH or THE COUNCIL

The New Jersey Council on Affordable Housing established under the Act which has primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the state.

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

Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3.

EQUALIZED ASSESSED VALUE

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).

GREEN BUILDING STRATEGIES

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.

Residential development fees.

Imposed fees.

Within all zoning districts, residential developers, except for developers of the types of development specifically exempted below, shall pay a fee of 1.5% of the equalized assessed value for residential development provided no increased density is permitted.

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.

Eligible exactions, ineligible exactions and exemptions for residential development.

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.

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.

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.

Developers of residential structures demolished and replaced as a result of a natural disaster shall be exempt from paying a development fee.

Nonresidential development fees.

Imposed fees.

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.

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 to existing structures to be used for nonresidential purposes.

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.

Eligible exactions, ineligible exactions and exemptions for nonresidential development.

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.

The two-and-one-half-percent fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs.

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 Nonresidential Development Certification/Exemption Form. Any exemption claimed by a developer shall be substantiated by that developer.

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 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.

(e)

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 Readington as a lien against the real property of the owner.

Collection procedures.

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.

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.

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.

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.

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.

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.

(7)

Should Readington 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).

(8)

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.

(9)

Appeal of development fees.

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 Readington Township. 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.

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 Readington. 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.

Affordable Housing Trust Fund.

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 and proceeds from the sale of units with extinguished controls.

The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identifiable by source and amount:

Payments in lieu of on-site construction of affordable units;

Developer-contributed funds to make 10% of the adaptable entrances in a townhouse or other multistory attached development accessible;

Rental income from municipally operated units;

Repayments from affordable housing program loans;

(e)

Recapture funds;

(f)

Proceeds from the sale of affordable units; and

(g)

Any other funds collected in connection with Readington's affordable housing program.

Within seven days from the opening of the trust fund account, Readington Township shall provide COAH with written authorization, in the form of a three-party escrow agreement between the municipality, the bank, and COAH, to permit COAH to direct the disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b).

All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by COAH.

Use of funds.

The expenditure of all funds shall conform to a spending plan approved by COAH. Funds deposited in the housing trust fund may be used for any activity approved by COAH to address Readington'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, 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.

Funds shall not be expended to reimburse Readington Township for past housing activities.

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.

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.

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.

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.

Readington 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.

No more than 20% of all revenues collected from development fees may 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 or objecting to the Council's regulations and/or action are not eligible uses of the Affordable Housing Trust Fund.

Monitoring. Readington 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 Readington's housing program, as well as to the expenditure of revenues and implementation of the plan certified by COAH. All monitoring reports shall be completed on forms designed by COAH.

Ongoing collection of fees. The ability for Readington Township to impose, collect and expend development fees shall expire with its substantive certification unless Readington 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 Readington fails to renew its ability to impose and collect development fees prior to the expiration of substantive certification, 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). Readington 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 Readington Township retroactively impose a development fee on such a development. Readington Township shall not expend development fees after the expiration of its substantive certification or judgment of compliance.

Expiration of provisions. The provisions of this COAH development fee ordinance shall expire and become null and void in the event Readington Township withdraws its petition for substantive certification, fails to obtain substantive certification, allows its certification to lapse, or is revoked by COAH.

When effective. This section shall be filed with COAH within seven days of adoption. It shall take effect upon final passage, adoption and publication according to law and upon filing with the Hunterdon County Planning Board.