Township of Fredon, NJ Affordable Housing

Residential development that results in the construction of three or fewer new market-rate dwelling units shall be subject to development fees rather than a growth share requirement.

Developments that have received unexpired preliminary or final approval from the Fredon Township Land Use Board prior to the effective date of this section are exempt from the growth share requirement.

Notwithstanding the foregoing, in the event an application is made to the Land Use Board for an extension of a preliminary or final approval, and such extension is granted, this section shall apply, and shall become a condition of such approval. In the event an application is made to the Board for a modification of an existing approval, the applicant shall be required to comply with the provisions of this section (i.e., in the event a modification to an approved subdivision results in an additional buildable lot being constructed, the new lot shall be required to comply with the growth share requirements in effect at the time the building permits are applied for such development). Compliance with this section shall be a condition of the approval.

[Amended 11-10-2016 by Ord. No. 2016-11[1]]

[1]

Editor's Note: This ordinance provided an effective date of 1-1-2017.

Residential development.

Except as exempted in Subsection B, residential development which results in the construction of new market-rate dwelling units shall provide one affordable housing unit on site for every eight market-rate units constructed. In the event that a developer is constructing fewer than eight market-rate units, it shall make a payment in lieu of construction using the formula contained in Subsection C(2) of this section.

For developments that result in a number of market-rate residential units not evenly divisible by eight, the developer shall construct the whole number of affordable units on-site, and for fractional units, the developer shall make a payment in lieu of constructing the additional affordable unit. The amount of the payment shall be established by subtracting any whole multiples of eight from the total number of market-rate residential units being created, dividing any remaining number of units by eight and multiplying the resulting fraction by $142,000.

Nonresidential development.

All nonresidential development that results in an increase in gross floor area of any existing nonresidential building or the construction of a new nonresidential building in the Township shall provide one affordable unit for every 25 jobs that result from the application of standards adopted by COAH as follows:

Use Group	Description	Square Feet Generating One Affordable Unit	Jobs Per 1,000 Square Feet
B	Office buildings. Places where business transactions of all kinds occur. Includes banks, corporate offices, government offices, professional offices, car showrooms and outpatient clinics.	8,333	3
M	Mercantile uses. Buildings used to display and sell products. Includes retail stores, strip malls, shops and gas stations.	25,000	1
F	Factories where people make, process, or assemble products. Includes automobile manufacturers, electric power plants, foundries, and incinerators. F use group includes F1 and F2.	12,500	2
S	Storage uses. Includes warehouses, parking garages, lumberyards, and aircraft hangers. S group includes S1 and S2.	125,000	0.2
H	High hazard manufacturing, processing, generation and storage uses. H group includes H1, H2, H3, H4 and H5.	25,000	1
A1	Assembly uses, including concert halls and TV studios.	12,500	2
A2	Assembly uses, including casinos, night clubs, restaurants and taverns.	8,333	3
A3	Assembly uses, including libraries, lecture halls, arcades, galleries, bowling alleys, funeral parlors, gymnasiums and museums, but excluding houses of worship.	8,333	3
A4	Assembly uses, including arenas, skating rinks and pools.	8,333	3
A5	Assembly uses, including bleachers, grandstands, amusement park structures and stadiums.	Exclude	Exclude
E	Schools K-12	25,000	1
I	Institutional uses such as hospitals, nursing homes, assisted living facilities and jails. I group includes I1, I2, I3 and 14.	12,500	2
R1	Hotels and motels.	31,250	0.8
U	Miscellaneous uses. Fences, tanks, barns, agricultural buildings, sheds, greenhouses, etc.	Exclude	Exclude

All nonresidential development creating fewer than 25 jobs may provide one affordable unit on- or off-site or by utilizing an alternative method of growth share compliance pursuant to N.J.A.C. 5:94-4.8 et seq. and as approved by the Township, or make a payment in lieu of constructing the affordable housing unit. If the developer selects the latter option, the payment amount shall be calculated by utilizing the second column in the chart from Subsection D(1). The formula to be used is as follows: square footage of proposed use divided by 1,000 square feet, multiplied by the number of jobs as reflected in the second column of the chart in Subsection D(1), then divide the number by 25 and multiply this number by $142,000.

	Example: Proposed Construction — 4,000 square feet of office space
	1.	40,000/1,000 = 4 jobs
	2.	Multiply by the total in #1 per 1,000 square feet (Chart 5A): 4 X 3 = 12
	3.	Divide the total in #2 by 25: 12/25 = 0.48
	4.	Multiply the total in #3 by $142,000 = 0.48 X $142,000 = $68,160

General provisions.

Affordable housing units being constructed on site or off site shall meet the requirements of the Chapter 110, Affordable Housing, and shall be in conformance with COAH's third round rules at N.J.A.C. 5:94-1 et seq. and the Uniform Housing Affordability Controls at N.J.A.C. 5:80-26.1 et seq., including, but not limited to, requirements regarding maximum rent and/or sales prices, affordability average, bedroom distribution, and affirmative marketing.

As an alternative to fulfilling the affordable housing requirements set forth in Subsections C and D, developers may, with the approval of the Township, utilize an alternative mechanism for providing affordable housing to meet the Township's growth share obligations as allowed by COAH pursuant to N.J.A.C. 5:94-4.8 et seq. If a developer intends to utilize an alternative mechanism, such request should be made during the preliminary land use approval process which shall be incorporated into the resolution and developer's agreement.

To the greatest extent possible, affordable housing units being provided within inclusionary developments shall be disbursed throughout inclusionary developments and shall be located within buildings designed to be architecturally indistinguishable from the market-rate units otherwise being constructed within the development. To that end, the scale, massing, roof pitch and architectural detailing (such as the selection of exterior materials, doors, windows, etc.) of the buildings containing the affordable housing units shall be similar to and compatible with that of the market-rate units.

(4)

In the case of residential developments that are required to construct affordable housing, the developer must comply with the following construction schedule provided for under N.J.A.C. 5:94-4.4(f) as follows:

	Percentage of Market-Rate Units Completed	Minimum Percentage of Low/Moderate-Income Units completed
	25	0
	25 + 1 unit	10%
	50	50%
	75	75%
	90	100%

(a)

In the case of nonresidential construction, the developer shall advise the Township of how and where developer intends to construct the affordable unit(s) as part of its preliminary application before the Land Use Board. The affordable housing unit(s) must be constructed prior to the issuance of the certificate of occupancy for the nonresidential unit. In the event that a payment in lieu of construction is to be made regardless whether it is residential or nonresidential unit, the amount per unit shall be the amount in effect at the time the property owner or developer obtains the building permit.

[Amended 11-10-2016 by Ord. No. 2016-11[2]]

[2]

Editor's Note: This ordinance provided an effective date of 1-1-2017.

(b)

Thirty percent of the payment in lieu of construction shall be paid at the time that the building permit is issued, and the balance shall be paid in full prior to the issuance of the certificate of occupancy.

(5)

Full compliance with the affordable housing requirements is mandatory and nonwaivable. The applicant must demonstrate to the Township that the affordable housing obligation will be satisfied prior to obtaining the first building permit, with compliance being a continuing condition during construction.

(6)

All affordable units shall comply with all COAH requirements, including but not limited to containing a thirty-year deed restriction as required by COAH.

(7)

Affordable units: 50% of the units shall be low-income and 50% moderate-income as required by COAH.

(8)

Bedroom mix shall be in accordance with current COAH rules in effect at the time the building permit is issued.

(9)

Where possible, the affordable housing structures shall be consistent in size and architectural features with the neighborhood or as approved by the Land Use Board. Additionally, in the case of a multi-unit development the affordable units must be fully integrated with the market-rate units.

[Amended 11-10-2016 by Ord. No. 2016-11[3]]

[3]

Editor's Note: This ordinance provided an effective date of 1-1-2017.

Payment in lieu of provisions.

Any payment in lieu of amount of $142,000 (Backup documentation supporting the per-unit cost must be received.) shall be derived from the analysis of the subsidy required to create an affordable housing unit in the Township, which analysis shall be on file in the office of the Township.

All payments in lieu of constructing affordable housing shall be deposited by the Township into an affordable housing trust fund to be established by the Township in conformance with regulations established by COAH and shall at all times be identifiable from development fees. These funds shall be used by the Township.

§ 45-73 Development fees.

[Added by Ord. No. 2006-12]

Development fees, general.

All residential development that results in construction of three or fewer new market-rate dwelling units shall pay a development fee of 1% of the equalized assessed value for residential development.

When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5) (known as a "d" variance) has been permitted, related to the construction of three or fewer new market-rate dwelling units, 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.

The term "developer" shall mean 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.

(4)

All residential development that results in construction of more than three new market-rate dwelling units and all nonresidential development that results in an increase in gross floor area of any existing nonresidential buildings or the construction of a new nonresidential building in the Township is subject to growth share requirements.

Eligible exaction, ineligible exaction and exemptions.

Affordable housing developments shall be exempt from paying development fees.

Expansion of existing residential structures shall be exempt.

Developments that have received preliminary or final approval prior to the effective date of this section shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval, or the plan is abandoned, approval lapses, or the period of protection pursuant to N.J.S.A. 40:55D-52 expires without extension.

Collection of fees.

Fifty percent of the development fee will be collected at the time of issuance of the building permit. The developer shall submit to the Housing Officer an estimate of the assessed value of the new construction and lot to be verified if required by the Tax Assessor.

The remaining portion will be collected at the issuance of the certificate of occupancy. At the issuance of certificates 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 building permit and that determined at issuance of certificate of occupancy.

Imposed and collected development fees that are challenged shall be placed in an interest-bearing escrow account by the Township. If all or a portion of the contested fees are returned to the developer, the accrued interest on the returned amount shall also be returned.

Affordable housing trust fund.

There is hereby created an interest-bearing housing trust fund for the purpose of depositing development fees collected from residential developers. All development fees paid by developers pursuant to this section shall be deposited in this fund.

Within seven days from the opening of the trust fund account, the 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. 5:94-6.16(b).

No funds shall be expended from the affordable housing trust fund unless the expenditure conforms to a spending plan approved by COAH. All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by COAH.

Use of funds.

Funds deposited in the housing trust fund may be used for any activity approved by COAH to address the municipal fair share. Such activities include, but are not limited to: rehabilitation, new construction, RCAs subject to the provisions of N.J.A.C. 5:94-4.4(d), ECHO housing, purchase of land for affordable housing, improvement of land to be used for affordable housing, purchase of housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, or administration necessary for implementation of the Housing Element and Fair Share Plan. The expenditure of all funds shall conform to a spending plan approved by COAH.

Funds shall not be expended to reimburse the Township for past housing activities, and funds will only be expended by the Township after approval by COAH.