[Added by Ord. No. 2006-11]
A. Growth share, general. The
growth share requirements contained in this section apply to construction
in all zones within the Township. Responsibility for constructing
an affordable housing unit or making a contribution in lieu of construction
shall be as provided for under this section. Furthermore, this section
shall apply regardless of whether a subdivision or site plan is involved
in the creation of the lot under construction or if the construction
is on a preexisting lot. The triggering mechanism for growth share
responsibility shall be the issuance of a building permit for new
construction.
B. Exceptions.
(1) 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.
(2) 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.
(3) 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]
C. Residential development.
(1) 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.
(2) 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.
D. Nonresidential development.
(1) 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
|
(2) 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
|
E. General provisions.
(1) 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.
(2) 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.
(3) 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]
(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]
F. Payment in lieu of provisions.
(1) 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.
(2) 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.
[Added by Ord. No. 2006-12]
A. Development fees, general.
(1) 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.
(2) 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.
(3) 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.
B. Eligible exaction, ineligible exaction and exemptions.
(1) Affordable housing developments shall be exempt from paying development
fees.
(2) Expansion of existing residential structures shall be exempt.
(3) 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.
C. Collection of fees.
(1) 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.
(2) 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.
(3) 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.
D. Affordable housing trust fund.
(1) 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.
(2) 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).
(3) 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.
E. Use of funds.
(1) 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.
(2) 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.
(3) After subtracting development fees collected to finance an RCA, a
rehabilitation program or a new construction project that are necessary
to address the Township's affordable housing obligation, at least
30% of the balance remaining 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.
(4) No more than 20% of the revenues collected from development fees
each year, exclusive of the fees used to fund an RCA, 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 new construction program, a Housing Element and Fair Share
Plan, and/or an affirmative marketing program.
F. Monitoring. The Township shall complete and return to COAH all monitoring
forms related to the collection of development fees, expenditures
of revenues and implementation of the spending plan certified by COAH.
All monitoring reports shall be completed by the Township on forms
designed by COAH.