Borough of Wood-Ridge, NJ Article II Five-Year Exemption for Construction of Dwellings and Multiple Dwellings

[Adopted 3-15-2017 by Ord. No. 2017-3[1]]

[1] Editor’s Note: This ordinance also repealed former Art. II, Exemption for Construction of Multiple Dwellings, adopted 5-21-2013 by Ord. No. 2013-10, as amended.

§ 479-9 Purpose and intent.

The Legislature of the State of New Jersey has determined that various statutes authorized by Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution permitting municipalities to grant for periods of five years exemptions or abatements, or both, from taxation in areas in need of rehabilitation have proven to be effective in promoting construction and rehabilitation of residential and commercial and industrial structures in areas threatened with economic and social decline. In response, the Legislature adopted Chapter 441 of the Laws of 1991 (N.J.S.A. 40A:21-1 et seq.) (the Act)[1] to consolidate and make more coherent the most useful features of those statutes. The Borough of Wood-Ridge makes known its intention to utilize the tax exemption provisions authorized by Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution, as enacted through the provisions of the Act, to authorize five-year exemptions for the construction of dwellings and multiple dwellings.

[1] Editor's Note: See N.J.S.A. 40A:21-16.

§ 479-10 Definitions.

As used in this article the following terms shall have the meanings indicated:

ANNUAL PERIOD

A duration of time comprising 365 days, or 366 days when the included month of February has 29 days, that commences on the date that an exemption for a project becomes effective pursuant to Section 16 of the Act[1] and § 479-18 of this article.

AREA IN NEED OF REHABILITATION

A portion or all of a municipality which has been determined to be an area in need of rehabilitation or redevelopment pursuant to the Local Redevelopment and Housing Law, P.L. 1992, c.79 (N.J.S.A. 40A:12A-1 et seq.), a blighted area as determined pursuant to the Blighted Areas Act, P.L. 1949, c.187 (N.J.S.A. 40:55-21.1 et seq.),[2] or which has been determined to be in need of rehabilitation pursuant to P.L. 1975, c.104 (N.J.S.A. 4:4-3.72 et seq.), P.L. 1977, c.12 (N.J.S.A. 54:4-3.95 et seq.), or P.L. 1979, c.233 (N.J.S.A. 54:4-3.121 et seq.).[3]

ASSESSOR

The officer of the Borough charged with the duty of assessing real property for the purpose of general taxation.

BOROUGH

The Borough of Wood-Ridge, in the County of Bergen, State of New Jersey.

BOROUGH ATTORNEY

The legal counsel for the Borough.

BOROUGH COUNCIL

The municipal council of the Borough.

BUSINESS ADMINISTRATOR

The business administrator of the Borough.

CHIEF FINANCIAL OFFICER

The Chief Financial or Fiscal Officer of the Borough.

CLERK

The Municipal Clerk of the Borough.

COMPLETION

Substantially ready for the intended use for which a building or structure is constructed as determined by the Assessor.

CONDOMINIUM

A property created or recorded as a condominium pursuant to the "Condominium Act," P.L. 1969, c.2S7 (N.J.S.A. 46:8B-1 et seq.).

CONSTRUCTION

The provision of a new dwelling, a new multiple dwelling, or the enlargement of the volume of an existing multiple dwelling structure by more than 30%, but shall not mean the conversion of an existing building or structure to another use.

COOPERATIVE

A housing corporation or association, wherein the holder of a share or membership interest thereof is entitled to possess and occupy for dwelling purposes a house, apartment, or other unit of housing owned by the corporation or association; or to purchase a unit of housing owned by the corporation or association.

DEVELOPMENT OFFICER

The person appointed by the Mayor of the Borough to serve as the development officer pursuant to this article.

DWELLING

A building or part of a building used, to be used or held for use as a single-family home or residence, including accessory buildings located on the same premises, together with the land upon which such building or buildings are erected and which may be necessary for a fair enjoyment thereof, but shall not mean any building or part of a building, defined as a "multiple dwelling" pursuant to the Hotel and Multiple Dwelling Law, P.L. 1967, c.76 (N.J.S.A. 55:13A-1 et seq.).

EXEMPTION

That portion of the Assessor's full and true value of any construction not regarded as increasing the taxable value of a property pursuant to the Act.

EXEMPTION ORDINANCE

Ordinance No. 2013-10, adopted by the Borough Council on May 21, 2013, which ordinance authorized the utilization of tax exemptions, in accordance with the Act.

FLEET REDEVELOPMENT AREA

The property designated as Block 333, Lots 1.03 through 1.08 and 1.11 through 1.20 on the Tax Map of the Borough.

HORIZONTAL PROPERTY REGIME

A property submitted to a horizontal property regime pursuant to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1 et seq.).

MULTIPLE DWELLING

A building or structure meeting the definition of multiple dwelling set forth in the Hotel and Multiple Dwelling Law, P.L. 1967, c.76 (N.J.S.A. 55:13A-1 et seq.), and means for the purpose of construction the general common elements and common elements of a condominium, a cooperative, or a horizontal property regime.

PROJECT

The construction of dwellings and multiple dwellings.

TAX AGREEMENT

An agreement for exemption for projects and the payments to be made in lieu of taxes as required pursuant to the terms of this article.

TAX COLLECTOR

The tax collector of the Borough.

TERMINATION DATE

June 10, 2023, the termination date of the exemption ordinance.

[1] Editor's Note: See N.J.S.A. 40A:21-16.

[2] Editor's Note: N.J.S.A. 40:55-21.1 et seq. were repealed by L. 1992, c. 79, § 59. See now N.J.S.A. 40A:12A-1 et seq.

[3] Editor's Note: N.J.S.A. 54:4-3.72 et seq., 54:4-3.95 et seq. and 54:4-3.121 et seq. were repealed by L. 1991, c. 441, § 22.

§ 479-11 Criteria for exemption of dwellings.

Newly constructed single-family dwellings located within the Fleet Redevelopment Area are eligible to receive a five-year exemption, as provided in § 479-12, upon meeting the following qualifications:

A. The property owner must occupy the dwelling;

B. All real estate taxes must be current;

C. The applicant must provide a certificate of occupancy or any other permit or approval required by the Borough; and

D. The applicant must submit two proofs of owner-occupancy. Such proofs can be a driver's license, utility bill, real estate tax bill or car registration. Proofs submitted must be current and valid at the time of submission.

§ 479-12 Exemption of new dwellings.

An exemption shall be granted for a portion of the assessed value of the construction of new dwellings if they meet the criteria established in § 479-11 of this article. In determining the value of the real property, the Borough shall regard the following percentages of the Assessor's full and true value of the dwelling constructed as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction occurs is increased as a result:

A. In the first year, 30% of the assessed value;

B. In the second year, 30% of the assessed value;

C. In the third year, 30% of the assessed value;

D. In the fourth year, 20% of the assessed value; and

E. In the fifth year, 10% of the assessed value.

§ 479-13 Application submission under § 479-12 of this article.

A. No exemption shall be granted pursuant to § 479-12 of this article except upon written application therefor filed with and approved by the Assessor. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of parties seeking exemptions from the governing body of the Borough. All applications pursuant to § 479-12 of this article shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the construction of the dwelling. Every such application for exemption which is filed within the time specified and prior to the termination date shall be approved and allowed by the Assessor provided that the application is consistent with the provisions of this article, as applicable, and provided that the construction for which the application is made qualifies as construction pursuant to the provisions of the Act and this article.

B. The Assessor shall approve or deny applications for exemptions pursuant to § 479-12 of this article within 45 days of receipt of a timely and completed application. Incomplete applications shall be returned to the applicant with notice of any deficiencies and/or missing information or documentation. Any such application that is returned to the applicant for correction or the provision of further information must be resubmitted to the Assessor within 20 days of receipt by the applicant. Returned applications are deemed to be received by the applicant within three days of mailing. Any returned application that is not resubmitted to the Assessor within the required period shall be deemed denied.

§ 479-14 Criteria regarding tax agreements for exemptions for multiple dwellings.

The Borough Council may approve and enter into tax agreements for the exemption from taxation for multiple dwelling projects that are located in the area in need of rehabilitation pursuant to §§ 479-15, 479-16, and 479-17 upon meeting the following qualifications:

A. All real estate taxes must be current and there may be no outstanding penalties for nonpayment of taxes; and

B. The applicant must provide a certificate of occupancy or any other permit or approval required by the Borough; and

C. The construction and the operation of the project must be in compliance with any and all applicable federal, state and local health and safety codes and regulations; and

D. The applicant must have a fully executed redevelopment agreement between the property owner and the Borough.

§ 479-15 Application for tax agreements for exemptions of multiple dwellings.

In addition to the application form provided by the Director of the Division of Taxation, applications for tax exemptions for multiple dwelling projects shall be submitted to the Assessor and shall include the following:

A. A general description of the project for which an exemption is sought;

B. A legal description of all real estate necessary for the project;

C. Plans, drawings and other documents to demonstrate the structure and design of the project;

D. A description of the number, classes and type of employees to be employed at the project site within two years of completion of the project;

E. A statement of the reasons for seeking an exemption on the project, and a description of the benefits to be realized by the applicant if an exemption is granted;

F. Estimates of the cost of constructing the project;

G. A statement indicating which of the formulas the applicant proposes to be used to calculate the payments in lieu of full property taxes, as authorized by Section 10 of the Act (N.J.S.A. 40A:21-10);

H. A statement showing the real property taxes currently being assessed at the project site; estimated payments that would be made annually by the applicant on the project during the period of the tax agreement, and estimated tax payments that would be made by the applicant on the project during the first full year following the termination of the tax agreement;

I. A description of the number and types of dwelling units to be provided, a description of the common elements or general common elements, and a statement of the proposed initial rentals or sales prices of the dwelling units according to type and of any rental lease or resale restrictions to apply to any dwelling units respecting low or moderate income housing;

J. A schedule of the estimated completion date of the project; and

K. Such other pertinent information as may be required by the Borough.

§ 479-16 Approval of tax agreements for exemptions of projects; new construction of multiple dwellings.

Applications for tax agreements for exemption of multiple dwelling projects shall be filed with the Assessor prior to commencement of the project and shall be approved or denied by ordinance of the Borough Council. Prior to consideration by the Borough Council for approval, all applications shall be reviewed by the following Borough officials:

A. Development review.

(1) Upon receipt of an application, the Development Officer shall conduct a complete review of the proposed project and/or subject property. The review shall take into consideration the property and appropriateness and adequacy of the description(s), plan(s) and estimate(s) submitted, the degree to which the project and/or property complies with the Borough's development goals as expressed in the Master Plan, Zoning Ordinance,[1] redevelopment plans and rehabilitation plans, as applicable.

[1] Editor's Note: See Ch. 530, Zoning.

(2) Upon completion of the review, the Development Officer shall submit a recommendation for approval or disapproval of the application to the Borough Attorney. The recommendation shall include any changes to the project and/or subject property that may be deemed necessary by the Development Officer, as well as any analysis performed or relied upon.

B. Financial review.

(1) Upon receipt of an application, the Chief Financial Officer shall conduct a financial review of the application including a cost and benefit analysis of the proposed project subject to the application.

(2) Upon completion of the review, the Chief Financial Officer shall submit a recommendation for approval or disapproval of the application to the Borough Attorney. The recommendation shall include any analysis performed or relied upon by the Chief Financial Officer.

C. Legal review.

(1) Upon receipt of an application, the Borough Attorney or other designated counsel shall conduct a review as to the form and legality of the application. In addition, the Borough Attorney shall obtain written certifications from Borough officials as necessary to substantiate the information contained in an application.

(2) The Borough Attorney shall make a determination as to the propriety of an application. Applications shall be deemed proper in those cases where they are presented in the proper form, satisfy the requirements of this article and all other applicable statutes and ordinances, and for which no delinquency has been reported regarding any payments due to the Borough as certified by the Tax Collector or other municipal officials.

(3) Where an application is deemed to be complete and conforming pursuant to the requirements of this article, the Borough Attorney shall prepare an ordinance in the form necessary to authorize the exemption and shall prepare the form of the tax agreement. All tax agreements shall be in the form filed with the Clerk at the time of adoption of this article. The ordinance shall be signed by the Borough Attorney as to form and legality and submitted, together with the form of the tax agreement, the full application, and the recommendation of the Chief Financial Officer and the Development Officer, to the Business Administrator for his/her consideration.

(4) In those cases where an application is deemed improper, the Borough Attorney shall prepare correspondence outlining those aspects of the application found to be deficient and shall forward that correspondence, together with the application and the recommendations of the Chief Financial Officer and the Development Officer to the Business Administrator for consideration.

D. Business Administrator review.

(1) Upon receipt of an application and the recommendation of the Borough Attorney, the Business Administrator shall determine the action to be taken in regard to the application. When the application has been deemed proper by the Borough Attorney, the Business Administrator shall determine whether to recommend the adoption of the authorizing ordinance and its attachments by the Borough Council, or to recommend the denial of the application as not being in the best interests of the Borough. Where the application has been deemed improper by the Borough Attorney, the Business Administrator shall determine whether the deficiencies can be corrected, and if so, may direct the applicant and/or the appropriate municipal official as to the actions required. If the deficiencies cannot be corrected or if the application is deemed not in the best interests of the Borough, the Business Administrator may recommend the denial of the application.

(2) In those cases where the Business Administrator affords the applicant the opportunity to correct certain deficiencies, the application may be reconsidered after submission of the corrected application to the Assessor, after which the process outlined in this § 479-16D shall be followed again.

(3) In those cases where the Business Administrator has recommended the denial of an application without condition and where such formal action to deny an application has been taken by the Borough Council, the application may only be reconsidered by reapplication to the Assessor, which application shall be treated in its entirety as a new application.

E. Form of tax agreement.

(1) The tax agreement shall include the identification of the affected property by the Tax Map designation and street address, the nature and scope of the structure to be constructed thereon, the formula for computing payments in lieu of taxes, the duration of the agreement and the grounds for termination. The tax agreement shall require timely payment of any and all municipal taxes, fees and charges arising from or related to a property granted an exemption.

(2) The tax agreement shall in all cases further provide that any change made in the ownership of the project or which would materially change the terms of the tax agreement shall be deemed a material breach of the agreement, which shall be cause for termination of the tax agreement. The tax agreement shall provide that the failure to make payments in lieu of taxes as required or to comply with any provision, term or condition of the agreement shall be grounds for the Borough to terminate the tax agreement, and/or to exercise such other remedies as may be provided by statute, this article or the tax agreement.

F. Payment in lieu of taxes. All owners of projects subject to exemption pursuant to the approval and execution of a tax agreement shall be charged and obligated to make payments in lieu of full property taxes of an annual amount computed by one of the formulas authorized by Section 10 of the Act (N.J.S.A. 40A:21-10).

G. Execution of tax agreement. Upon adoption of an ordinance by the Borough Council authorizing the Borough to enter into a tax agreement, the Clerk shall ensure that the tax agreement is circulated to the appropriate persons or entities for execution. No tax agreement shall be considered to be in force and effect unless and until it has been signed by the applicant and the Mayor of the Borough, after which it shall be dated and certified by the Clerk by her/his signature and the affixing of the Borough seal.

H. Distribution of executed agreements. Once a tax agreement has been fully executed, the Clerk shall distribute executed copies thereof to the applicant, the Assessor, the construction code official, the Business Administrator and the Borough Attorney. The Clerk shall retain one executed copy which shall be placed on permanent file within her/his office and made available for examination pursuant to the Open Public Records Act (N.J.S.A. 47:1A-1 et seq.).

§ 479-17 Duration and termination of tax agreements; conformance with other laws; filing of tax agreement.

A. Duration of tax agreement; termination.

(1) All tax agreements authorized pursuant to this article shall be in effect for five full years next following the date of completion of the project.

(2) If the owner of a property that is subject to a tax agreement pursuant to this article ceases to operate or disposes of the property without prior approval of the Borough Council, or fails to meet the conditions for qualifying for exemption, then the taxes which would have otherwise been assessed and payable for each year during which the tax agreement was in effect shall become due and payable as if no exemption had been granted. In the event a property owner fails to meet the qualifications and conditions for exemption, the Assessor, on behalf of the Borough, shall provide notice of such act or omission to the property owner and the Tax Collector. Within 15 days of the notice from the Assessor, the Tax Collector shall provide notice to the property owner of the amount of the real estate taxes that are due.

(3) Where it is determined that a new owner of a project or property will continue to use the project or property pursuant to the conditions which qualified the project or property for exemption, no tax shall be due, the exemption shall continue, and the tax agreement shall remain in effect in accordance with its terms.

(4) Upon the termination of a tax agreement, a project shall be subject to all applicable real property taxes, as provided by general laws.

B. Conformance with other laws. All projects subject to tax agreements as provided herein shall be subject to all applicable federal, state and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provision, zoning, planning and building code requirements.

C. Filing of tax agreement. Within 30 days after the execution of a tax agreement, the Clerk shall file a copy with the Director of the Division of Local Government Services within the New Jersey Department of Community Affairs.

§ 479-18 Commencement date.

The effective date of an exemption granted pursuant to this article shall relate back to, and take effect as of, the date of completion of the construction of the project for which the exemption is granted, and shall continue for five annual periods from that date. The grant of the exemption or tax agreement shall be recorded and made a permanent part of the official tax records of the Borough, which record shall contain a notice of the termination date thereof.

§ 479-19 Assessment of property.

The Assessor shall determine, on October 1 of the year following the date of the completion of construction of the project, the true taxable value thereof. Except as otherwise provided, the property shall continue to be treated in the appropriate manner for each of the four tax years subsequent to the original determination by the Assessor and shall be prorated for the final tax year in which the exemption expires.

§ 479-20 Ineligible property.

No exemption shall be granted, or tax agreement entered into, pursuant to the Act with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due.

§ 479-21 Applicability of exemption to taxes.

The exemption of real property taxes provided by the Borough pursuant to this article shall apply to property taxes levied for municipal purposes, school purposes, county government purposes and for the purposes of funding any other property tax exemptions.

§ 479-22 Notice to property owners.

The Borough shall include a notice in the mailing of the annual property tax bills to each owner of the properties where exemptions are authorized pursuant to this article, advising such property owners of same before the end of the first year following adoption of this article.

§ 479-23 Inspection.

Any project granted an exemption pursuant to this article shall be subject to an inspection by the Borough on an annual basis to ensure that the project is in compliance with all applicable ordinances, regulations and codes of the Borough. Any project which is determined to be in violation of any ordinance, regulation or code governing health and safety standards, shall be subject to penalties and fines, as applicable, or any other remedial action permitted by state statute, including termination of the tax agreement.

§ 479-24 Nonlimitation.

Nothing contained in this article shall be so construed as to limit or deprive the Borough of any rights or privileges which are now or in the future conferred on the Borough by state statute or federal laws.