[Added 7-7-2005 by Ord. No. 561]
The purpose of this section is to establish standards for the collection, holding and expenditure of development fees pursuant to N.J.A.C. 5:93-8, as it may be amended or superseded. Fees collected pursuant to this subsection shall be solely used for the purpose of providing for the municipality's fair share of low- and moderate-income housing for any purpose permitted by law.
A. Construction fees.
(1) Any construction for residential or nonresidential use, excepting projects in which there is a set-aside of at least one affordable unit for every eight units to be sold at fair market value, shall precipitate the requirement for an affordable housing development fee to the municipality.
(2) Residential development fees shall be 1% of the equalized assessed value for residential development.
(3) Nonresidential development fees shall be 2% of the equalized assessed value for nonresidential development.
B. Collection of fees. The municipality shall collect up to 50% of the fee or any portion thereof at the time of issuance of a building permit. The remaining portion shall be collected at the time of issuance of a certificate of occupancy. No approval, permit or certificate shall be issued until receipt of the contribution has been certified by the affordable housing program administrator.
C. Eligible exactions, ineligible exactions and exemptions.
(1) Inclusionary developments shall be exempt from development fees. All other forms of new residential construction shall be subject to development fees.
(2) Substantial change. The payment of a fee for affordable housing shall be required for any substantial change, including but not limited to any increase in an approved project's building bulk or floor area, which exceeds any of the requirements of the zoning district where the project is located and exceeds the limitations necessary to qualify as an insubstantial change. "Insubstantial change" is a revision to an approved preliminary or final site plan or subdivision which meets all the requirements of this section or does not exceed any of the following limitations:
(a) Five feet in any yard setback.
(b) Seven feet in building height.
(c) One percent in floor area ratio.
(d) One percent in impervious coverage.
(e) Five feet in building spacing.
(g) Five feet in driveway locations.
(h) One percent in site disturbances.
(3) Any such change enumerated in Subsection
C(2) above shall not alter the percentage of low- to moderate-income housing in an approved project.
(4) A substitution of similar landscaping material, lighting fixtures and signage is not a substantial change as long as there is no change in approved quantities or dimensions.
(5) The development fee that may be collected shall be calculated on the increase in the equalized assessed value of the improved structure.
(6) Any use for which capital project review is required pursuant to N.J.S.A. 40:55D-31 shall be exempt from the payment of an affordable housing contribution.
D. Use of money. Fees collected for affordable housing shall be subject to the following requirements.
(1) The municipality shall use revenues collected from development fees for any activity approved by COAH or a court of competent jurisdiction for addressing the municipal fair share obligation. Such activities include, but are not limited to, rehabilitation of substandard units, extensions and/or improvements of roads and infrastructure, assistance designed to render units to be more affordable, and administration of the implementation of the housing element.
(2) Funds shall not be expended to reimburse municipalities for past housing activities.
(3) At least 30% of the revenues collected from development fees shall be devoted to render units more affordable. Examples of such activities include, but are not limited to, down payment assistance, low-interest loans, and rental assistance. This requirement may be waived in whole or in part when the municipality demonstrates the ability to address the requirement of affordability assistance from another source.
(4) No more than 20% of the revenues collected from development fees shall be expended on administration, including but not limited to salaries and benefits for municipal employees or consultant fees necessary to develop or implement a rehabilitation program, a new construction program, a regional contribution agreement, a housing element, or an affirmative marketing program.
(5) Administrative funds may be used for income qualifications of households, monitoring the turnover of sale and rental units, and compliance with COAH monitoring requirements.
(6) Development fees shall not be used to defray the costs of existing staff without a waiver from COAH.
E. Housing trust fund. All development fees collected shall be deposited in a separate interest-bearing housing trust fund.