[Amended 5-8-2014 by Ord.
No. 17-14]
A. All fees as hereinafter required shall be payable to:
(1) The Secretary of the Planning Board or Board of Adjustment in the
case of an application to either board;
(2) The Zoning Officer in the case of an application for a zoning permit
or a site plan exemption;
(3) The Township Engineer in the case of an application for a tree permit;
or
(4) The Township Clerk in the case of an application or appeal to the
Township Committee.
B. All fees shall be payable at the time of filing any application for
development. All permits, determinations, resolutions or certificates
of approval are subject to the payment of all fees provided for in
this chapter, and no approval shall be given by the approving authority
until proof has been submitted to them that the requisite fees have,
in fact, been paid. Furthermore, the applicant must submit proof that
no taxes or assessments for local improvements are due or delinquent
on the property before the approving authority may act on his application.
There is hereby established in connection with
the various applications for development and other matters which are
the subject of this chapter the following schedule of fees. Every
applicant for development shall file with his application a filing
fee as indicated in the following schedule under "Filing fees," in
addition to technical review fees as indicated in the following schedule
under "Technical review fees."
A. Filing fees.
[Amended 3-26-1987 by Ord. No. 2-87; 7-13-1995 by Ord. No.
18-95; 12-22-2008 by Ord. No. 32-08]
(1) An application to the Planning Board or Zoning Board
of Adjustment for any application for development or other matter
to be decided by said boards shall be accompanied by a filing fee,
which shall be used to defray the administrative costs of processing
the application as follows:
(a)
Concept plan/informal review of development
proposal: $100. Fee to be credited against the application fee for
a subsequent formal application for the same property if such application
is filed within one year of hearing on the concept plan.
(b)
Minor subdivision:
[1]
If limited to lot line relocation only, with
no additional lots created: $200, plus $50 for each lot in the subdivision.
[2]
All others: $600, plus $200 for each lot in
the subdivision, including the remainder.
(c)
Preliminary major subdivision: $1,000, plus
$200 for each lot in the subdivision, including the remainder.
(d)
Final major subdivision:
[1]
If approval requested simultaneously with preliminary
major subdivision approval: $250, plus $50 for each lot in the subdivision,
including the remainder.
[2]
If approval requested subsequent to preliminary
major subdivision approval: $500, plus $100 for each lot in the subdivision,
including the remainder.
(e)
Preliminary major site plan:
[1]
Limited only to one or a combination of the
following activities: change of use; alteration of the facade or roof
of buildings; up to 250 square feet increase or reduction in the gross
floor area; and/or site improvements or site disturbance of up to
250 square feet in area: $250.
[2]
All others: $500 for the first 10,000 square
feet of lot area or fraction thereof disturbed or altered by the development,
plus $100 for each additional 10,000 square feet of lot area or fraction
thereof disturbed or altered by the development, plus $300 for the
first 1,000 square feet of floor area of any new building or addition,
plus $100 for each 1,000 square feet or fraction thereof of floor
area over 1,000 square feet. In no case shall the application fee
be less than $500 or more than $15,000.
(f)
Final site plan:
[1]
If approval requested simultaneously with preliminary
major site plan approval: 20% of the fee for the preliminary major
site plan, excluding any variance fee.
[2]
If approval requested subsequent to preliminary
major site plan approval: 40% of the fee for the preliminary site
plan, excluding any variance fee.
(g)
"C" variances (N.J.S.A. 40:55D-70c):
[1]
If not part of site plan or subdivision application,
or if bifurcated from a site plan or subdivision application: $300
for each variance, but not more than $900, provided that the "c" variance
fee for single-family detached dwellings shall not exceed $600.
[2]
If reviewed simultaneously with site plan and/or
subdivision application: $150 for each variance, but not more than
$450.
(h)
"D" variances (N.J.S.A. 40:55D-70d):
[1]
If not part of site plan or subdivision application,
or if bifurcated from a site plan or subdivision application: 150%
of the fee for "d" variances reviewed simultaneously with site plan
and/or subdivision application (see below).
[2]
If reviewed simultaneously with site plan and/or
subdivision application:
[a] "D" variance involving prohibited
use, expansion of nonconforming use or density: $1,000 per variance,
but not to exceed $2,000.
[b] "D" variance involving violation
of conditional use requirement: $500 per variance, but not to exceed
$1,000.
[c] "D" variance involving violation
of floor area ratio or height requirement: $300 per variance, but
not to exceed $900.
(i)
Variance or site plan for application solely limited to an exempt antenna as defined by §
166-4, notwithstanding the above site plan and variance fees: $100.
(l)
Appeal of Zoning Officer or Township Engineer decision based on or made in the enforcement of the zoning regulations, Part
5 of this chapter (§§
166-19A,
166-21A): $300.
[Amended 5-8-2014 by Ord.
No. 17-14]
(m)
Zoning chapter interpretations or other special questions by Board of Adjustment (§
166-19B): $300.
(n)
Amended approval of prior subdivision, site plan or variance application, as defined by §
166-4: 20% of the fee for the original application, but not to exceed $250.
(o)
Application to extend or toll period of protection
against changes in development regulations, to extend expiration of
variance deadline or to extend deadline for filing of subdivision:
$200.
(p)
Application for certification of nonconforming
use or structure: $50 if certification request decided by Zoning Officer,
$200 if certification request decided by Board of Adjustment (see
N.J.S.A. 40:55D-68).
(q)
Special meeting requested by interested party:
$1,000.
(r)
Request to amend Master Plan or development
regulations: $1,000 if request involves creation of a new zone district,
$300 if request involves relocation of a zone boundary, and $200 for
other requests.
(2) In the case of proposals requiring a combination of
approvals, such as subdivision, site plan and/or variance(s), the
applicant shall pay a fee equal to the sum of the fees for each required
approval.
B. Payment for professional services.
[Amended 12-11-1997 by Ord. No. 34-97]
(1) The Chief Financial Officer of the Township shall
make all of the payments to professionals for services rendered to
the Township or approving authority for review of applications for
development, review and preparation of documents, inspection of improvements
or other purposes under the provisions of the Municipal Land Use Law and this chapter. At the time of filing of an application for development, appeal or other matter pursuant to this chapter, the applicant shall pay to the Board Secretary a deposit, in accordance with the schedule in Subsection
B(2) below, to be used to reimburse the Township for said professional services. Deposits shall be paid by cashier's check, certified check, bank money order or cash and shall be placed by the Township in an escrow account if required pursuant to §
166-48C(1). In the case of proposals requiring a combination of approvals, such as subdivision, site plan and/or variance(s), the applicant shall deposit an amount equal to the sum of the deposits required for each application. Notwithstanding the above, if the Board determines that professional services are not required in order to process and review the application, no deposit shall be required.
(2) Amount of deposits. The initial deposit for payment
of professional services shall be four times the application fee or
fees as set forth in the schedule of fees, provided that if the Board
Secretary determines that a greater or lesser initial deposit is necessary
to reimburse the anticipated cost of professional services on a particular
application, such as circulation-intensive sites requiring the services
of a traffic engineering consultant, the applicant shall be required
to deposit said greater or lesser amount.
[Amended 12-22-2008 by Ord. No. 32-08]
C. Administration of technical review deposit fees. Deposits
received for professional services employed by the Township to review
applications for development, for Township inspection fees in accordance
with this chapter or to satisfy the guaranty requirements of this
chapter shall be administered in accordance with the following provisions:
[Amended 12-11-1997 by Ord. No. 34-97]
(1) Deposits to be held in escrow. Whenever an amount
of money in excess of $5,000 shall be deposited by an applicant with
the Township, the money, until repaid or applied to the purposes for
which it is 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. Deposits received pursuant to this article
shall be held in escrow and deposited in a banking institution or
savings and loan association in New Jersey insured by an agency of
the federal government, or any other fund or depository approved for
such deposits by the State of New Jersey. Such deposits shall be placed
in an account bearing interest at the minimum rate currently paid
by the institution or depository on time or savings deposits. The
Township 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.
(2) Depletion of deposits. If an escrow account or deposit
contains insufficient funds to enable the Township or approving authority
to perform required application reviews or improvement inspections,
the chief financial officer of the Township shall provide the applicant
with a notice of the insufficient escrow or deposit balance. In order
for work to continue on the development or the application, the applicant
shall, within a reasonable time period, post a deposit to the account
in an amount to be agreed upon by the Township or approving authority
and the applicant. In the interim, any required health and safety
inspections shall be made and charged back against the replenishment
of funds.
(3) Failure to maintain adequate deposit. No application shall be deemed complete and no formal action shall be taken by the Board until the initial deposit required by Subsection
B(2) above has been submitted. If the funds required by Subsection
C(2) above for professional services are not deposited in a timely manner, the Board Secretary shall notify the board having jurisdiction over the application. No further action shall be taken on the application unless the deposits have been made by the applicant as required above. In the event that the time for action by the Board, or any extension thereof as required by this chapter, shall expire prior to the payment of the required deposits, the Board may, at its discretion, dismiss the application.
(4) Eligible charges against deposit. All professional
charges for review of an application for development review and preparation
of documents or inspection of improvements shall be reasonable and
necessary, given the status and progress of the application or construction.
The following provisions shall apply:
(a)
Application review and inspection charges shall
be limited only to professional charges for review of applications,
review and preparation of documents and inspections of developments
under construction and review by outside consultants when an application
is of a nature beyond the scope of the expertise of the professionals
normally utilized by the Township.
(b)
Review fees shall be charged only in connection
with an application for development presently pending before the approving
authority or upon review of compliance with conditions of approval
or review of requests for modification or amendment made by the applicant.
A professional shall not review items which are subject to approval
by any state governmental agency and not under Township jurisdiction
except to the extent consultation with a state agency is necessary
due to the effect of state approvals on the subdivision or site plan.
(c)
Inspection fees shall be charged only for actual
work shown on a subdivision or site plan or required by an approving
resolution. Professionals inspecting improvements under construction
shall charge only for inspections that are reasonably necessary to
check the progress and quality of the work and such inspections shall
be reasonably based on the approved development plans and documents.
(d)
The only costs that shall be added to any such charges in Subsection
C(4)(a) through
(c) above shall be actual out-of-pocket expenses of any such professionals or consultants, including normal and typical expenses incurred in processing applications and inspecting improvements.
(e)
The Township or approving authority shall not
bill the applicant or charge any escrow account or deposit authorized
herein for any Township clerical or administrative functions, overhead
expenses, meeting room charges or any other Township costs and expenses,
except as provided for in this section, nor shall a Township professional
add any such charges to his bill.
(f)
If the Township retains a different professional
or consultant in the place of the professional originally responsible
for development application review or inspection of improvements,
the Township or approving authority shall be responsible for all time
and expenses of the new professional to become familiar with the application
or the project, and the Township or approving authority shall not
bill the applicant or charge the deposit or the escrow account for
any such services.
(5) Rates of payment for professional services. If the
salary, staff support and overhead for a professional are provided
by the Township, the hourly rate charged to the deposit from said
professional shall be at 200% of the sum of the products resulting
from multiplying the hourly base salary, which shall be established
annually by ordinance, of each of the professionals by the number
of hours spent by the respective professional on review of the application
for development or inspection of the developer's improvements, as
the case may be. For other professionals, the charge shall be at the
same rate as all other work of the same nature by the professional
for the Township when fees are not reimbursed or otherwise imposed
on applicants or developers. Rates for professional services shall
be in accordance with a schedule of professional fees filed annually
with the Board Secretary and maintained in the office of the Township
Clerk for public inspection.
(6) Vouchers for payment of professional services. Each
payment charged to a deposit for the review of applications, review
and preparation of documents and inspection of improvements shall
be pursuant to a voucher from the professional. The processing of
vouchers shall be in accordance with the following:
(a)
The voucher shall identify the personnel performing
the service and for each date the services are performed, the hours
spent to one-quarter-hour increments, the hourly rate and the expenses
incurred.
(b)
All professionals shall submit vouchers to the
chief financial officer of the Township on a monthly basis in accordance
with the schedules and procedures established by the chief financial
officer of the Township.
(c)
If the services are provided by a Township employee,
the Township employee shall prepare and submit to the chief financial
officer of the Township a statement containing the same information
as required on a voucher, on a monthly basis.
(d)
The professional shall send an informational
copy of all vouchers or statements submitted to the chief financial
officer of the Township simultaneously to the applicant.
(e)
The chief financial officer of the Township
shall prepare and send to the applicant a statement which shall include
an accounting of funds listing all deposits, interest earnings, disbursements
and the cumulative balance of the escrow account. This information
shall be provided on a quarterly basis, if monthly charges are $1,000
or less, or on a monthly basis, if monthly charges exceed $1,000.
(7) Appeals of charges. An applicant shall notify, in
writing, the Township Committee, with copies to the chief financial
officer of the Township, the approving authority and the professional,
whenever the applicant disputes the charges made by a professional
for service rendered to the Township in reviewing applications for
development, review and preparation of documents, inspection of improvements
or other charges made pursuant to the Municipal Land Use Law. The
following shall apply:
(a)
An applicant shall file an appeal within 45 days from receipt of the informational copy of the professional's voucher required by Subsection
C(6)(d) above, except that if the professional has not supplied the applicant with an informational copy of the voucher, then the applicant shall file his appeal within 60 days from receipt of the Township statement of activity against the deposit or escrow account required by Subsection
C(6)(e) above.
(b)
The Township Committee, or its designee, shall,
within a reasonable time period, attempt to remediate any disputed
charges.
(c)
If the matter is not resolved to the satisfaction
of the applicant, the applicant may appeal to the County Construction
Board of Appeals established under Section 9 of P.L. 1975, c. 217
(N.J.S.A. 52:27D-127) any charge to an escrow account or a deposit
by any Township professional or consultant. An applicant or his authorized
agent shall submit the appeal, in writing, to the County Construction
Board of Appeals. The applicant or his authorized agent shall simultaneously
send a copy of the appeal to the Township, approving authority and
any professional whose charge is the subject of the appeal. The procedures
followed by the County Construction Board of Appeals shall be as set
forth in N.J.S.A. 40:55D-53.2b and c.
(d)
An applicant may file an appeal for an ongoing
series of charges by a professional during a period not exceeding
six months to demonstrate that they represent a pattern of excessive
or inaccurate charges. An applicant making use of this provision need
not appeal each charge individually.
(e)
During the pendence of any appeal, the Township
or approving authority shall continue to process, hear and decide
the application for development and to inspect the development in
the normal course and shall not withhold, delay or deny reviews, inspections,
signing of subdivision plats or site plans, the reduction or the release
of performance and maintenance guaranties, the issuance of construction
permits or certificates of occupancy or any other approval or permit
because an appeal has been filed or is pending under this subsection.
The chief financial officer of the Township may pay charges out of
the appropriate escrow account or deposit for which an appeal has
been filed.
(f)
If a charge is disallowed after payment, the
chief financial officer of the Township shall reimburse the deposit
or escrow account in the amount of any such disallowed charge or refund
the amount to the applicant. If a charge is disallowed after payment
to a professional or consultant who is not an employee of the Township,
the professional or consultant shall reimburse the Township in the
amount of any such disallowed charge.
(8) Refund of deposits; interest. Any of the funds remaining
in the deposit upon completion of the purpose for which the deposit
was made shall be returned to the applicant and the account shall
be terminated. For deposits over $5,000 placed in an interest bearing
account pursuant to this chapter, refunds of interest shall be made
as follows:
(a)
The Township shall not be required to refund
an amount of interest paid on a deposit which does not exceed $100
for the year.
(b)
If the amount of interest exceeds $100 for the
year, 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 Township may retain for administrative
expenses a sum equivalent to no more than 1/3 of that entire amount,
which shall be in lieu of all other administrative and custodial expenses.
(9) Procedure for closing of deposits and escrow accounts.
The following closeout procedure shall apply to all deposits and escrow
accounts established under the Municipal Land Use Law and this chapter:
(a)
In the case of application review escrows and
deposits, the closeout of deposits and escrow accounts shall commence
after the approving authority has granted final approval and signed
the subdivision plat or site plan or after the authority has denied
the application or after the applicant has formally withdrawn the
application.
(b)
In the case of improvement inspection escrows and deposits, the closeout of deposits and escrow accounts shall commence after the improvements have been approved as provided in §
166-67.
(c)
The applicant shall send written notice by certified
mail to the chief financial officer of the Township and the approving
authority and to the relevant Township professional that the application
is completed, denied or withdrawn or the improvements are completed,
as the case may be.
(d)
After receipt of such notice, the professional
shall render a final bill to the chief financial officer of the Township
within 30 days and shall send a copy simultaneously to the applicant.
(e)
The chief financial officer of the Township shall render a written final accounting to the applicant on the uses to which the deposit was put within 45 days of receipt of the final bill. Any balances remaining in the deposit or escrow account, including interest in accordance with Subsection
C(8) above, shall be refunded to the developer along with the final accounting.
D. Governing body decision. A copy of a decision of the governing body to an interested party in connection with an appeal pursuant to Article
VIII of this chapter: $10.
E. Publication of decision. Publication in a newspaper of general circulation of a decision of the Township Council on an appeal as set forth in Article
VIII of this chapter: the cost of publication.
F. Certification of subdivision approval. Certification
of subdivision approval or deed description pursuant to P.L. 1975,
c. 291: $30.
H. Transcripts. Copies, duplicates or transcripts of
records of proceedings furnished to an interested party pursuant to
P.L. 1975, c. 291, Section 6f (N.J.S.A. 40:55D-10f): $0.40 for each
folio or original and $0.10 for each of the copies, or the maximum
permitted by N.J.S.A. 2A:11-15, whichever is the greater.
I. Appeals to the governing body. Any appeal to the governing
body shall be accompanied by a fee of $30. The applicant shall furnish
11 copies of the transcript of the hearing record before the approving
authority.
J. Inspection fees for required improvements.
[Amended 12-11-1997 by Ord. No. 34-97]
(1) The developer shall reimburse the Township for all
reasonable inspection fees for the inspection of improvements required
pursuant to this chapter. Prior to the initiation of any construction
approved pursuant to this chapter, the developer shall deposit with
the Board Secretary sufficient funds to reimburse the Township for
inspection fees. Deposits shall be paid by cashier's check, certified
check, bank money order or cash. The Township shall not perform any
inspection if sufficient funds to pay for those inspections are not
on deposit. Deposits shall be as follows:
(a)
The developer shall deposit for the inspection fees an amount with the Township not to exceed, except for extraordinary circumstances, the greater of $500 or 5% of the cost of improvements, which cost shall be determined pursuant to §
166-64.
(b)
For those developments for which the reasonably
anticipated inspection fees are less than $10,000, inspection fee
deposits may, at the option of the developer, be paid in two installments.
The initial amount deposited by a developer shall be 50% of the reasonably
anticipated inspection fees. When the balance on deposit drops to
10% of the reasonably anticipated inspection fees because the amount
deposited by the developer has been reduced by the amount paid to
the Township for inspection, the developer shall deposit the remaining
50% of the anticipated inspection fees.
(c)
For those developments for which the reasonably
anticipated inspection fees are $10,000 or greater, inspection fee
deposits may, at the option of the developer, be paid in four installments.
The initial amount deposited by a developer shall be 25% of the reasonably
anticipated fees. When the balance on deposit drops to 10% of the
reasonably anticipated fees because the amount deposited by the developer
has been reduced by the amount paid to the Township for inspection,
the developer shall make additional deposits of 25% of the reasonably
anticipated fees.
(2) Appeals of amount of deposit or amount of fee. Appeals of the amount required to be deposited for the payment of inspection fees or the amount charged for the inspection of improvements shall follow the procedures in §
166-48C(7).
K. Township projects exempted. Notwithstanding anything herein to the
contrary, land use and development by the Township of Hanover, the
Cedar Knolls Fire Department and First Aid Squad, the Whippany Fire
Department, the Boards of Commissioners of Fire Districts 2 and 3,
the Hanover Sewerage Authority and the Whippanong Library are not
subject to requirements relating to fees, reimbursement of professional
review costs and the posting of bonds otherwise required hereunder.
In addition, development projects of the Township of Hanover, the
local Hanover Township Board of Education and the Hanover Park Regional
High School District Board of Education shall likewise be exempt from
the payment of fees, reimbursement of professional review costs and
the posting of bonds otherwise required pursuant to this chapter.
[Amended 4-10-2014 by Ord. No. 9-14]
L. List of property owners. List of property owners from
current tax duplicate pursuant to P.L. 1975, c. 291, Section 7.1c
(N.J.S.A. 40:55D-12c): $0.25 per name or $10, whichever is greater.
M. Tree removal permit application fees.
[Added 12-19-2011 by Ord. No. 30-11; amended 8-23-2012 by Ord. No.
19-12; 2-14-2013 by Ord. No. 3-13; 2-14-2013 by Ord. No. 3-13]
(1) Tree removal as part of a site plan, subdivision or variance application.
No additional application fee above that required for the development
application by this chapter shall be required for tree removal requested
as part of a site plan, subdivision, variance or other development
application or appeal submitted to the Planning Board or Board of
Adjustment.
[Amended 8-8-2013 by Ord.
No. 22-13]
(2) Tree removal for development that does not require Planning Board
or Board of Adjustment approval. The application fee shall be $100
for up to three regulated trees to be removed, plus $25 for each additional
regulated tree to be removed; provided, however, that the application
fee shall not exceed $1,000. Notwithstanding the foregoing, no application
fee shall be required for the following tree removal:
(a)
On each lot, the removal of one tree per calendar year, if the removal of such tree is not prohibited by §
166-131.
(b)
Removal of any number of trees which are dead, dying, critically
diseased and/or hazardous to human life or property.
[Added 12-22-1993 by Ord. No. 43-93;
amended 2-26-1998 by Ord. No. 5-98; 12-20-1999 by Ord. No. 33-99; 5-11-2000 by Ord. No. 6-2000; 6-27-2002 by Ord. No. 14-2002; 3-10-2005 by Ord. No. 7-2005; 11-14-2019 by Ord. No. 48-19]
A. Purpose.
(1)
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.
(2)
Pursuant to P.L. 2008, c. 46, section 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 8.8), 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.
(3)
In the Matter of the Adoption of N.J.A.C. 5:96 and 5:97 by the
New Jersey Council on Affordable Housing, 221 N.J. (2015), the New
Jersey Supreme Court found that the COAH administrative process had
become nonfunctioning and, as a result, returned primary jurisdiction
over affordable housing matters to the trial courts. Until and unless
COAH adopts new regulations or a new statute is passed, any and all
references to COAH herein shall mean the trial courts or any agency
that supersedes COAH.
(4)
This section establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance with P.L. 2008, c. 46, sections 8 and 32 through
38 (N.J.S.A. 52:27D-329.2 and N.J.S.A. 40:55D-8.1 through 8.7). 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. 5:93-8 and the Statewide Non-Residential
Development Fee Act, N.J.S.A. 40:55D-8.1 through 8.7, as applicable.
B. Definitions. As used in this section, the following terms shall have
the meanings indicated:
AFFORDABLE HOUSING DEVELOPMENT
A development that contains affordable housing units eligible
for credit against the Township's affordable housing which shall include,
but is not limited to, an inclusionary development, a municipal construction
project or a 100-percent affordable development.
COAH or THE COUNCIL
The New Jersey Council on Affordable Housing established
under the Fair Housing Act, which previously had primary jurisdiction
for the administration of housing obligations in accordance with sound
regional planning consideration in the state. Pursuant to In the Matter
of the Adoption of N.J.A.C. 5:96 and 5:97 by the New Jersey Council
on Affordable Housing, 221 N.J. (2015), the New Jersey Supreme Court
returned primary jurisdiction over affordable housing matters to the
trial courts. As such, until and unless COAH adopts new regulations
or a new statute is passed, any and all references to COAH shall mean
the trial courts or any agency that supersedes COAH.
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
A monetary obligation imposed and paid by a developer pursuant
to this section or state law, which money is to be used as permitted
by the rules of the New Jersey Council on Affordable Housing or other
applicable law, in order to address affordable housing needs.
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 Sections 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through N.J.S.A.
54:1-35c).
C. Residential development fees.
(1)
Imposed fees.
(a)
Residential developers, except for developers of the types of
development specifically exempted, shall pay a fee of 1.0% of the
equalized assessed value for residential development, provided that
no increased density is permitted.
(b)
If a "d" variance is granted for increased density, then the
additional residential units realized above what is permitted by right
under the existing zoning will incur a bonus development fee of 6%
rather than the development fee of 1.0%. However, if the zoning on
a site has changed during the two-year period prior to the filing
of the "d" variance application, the base density for the purpose
of calculating the bonus development fee shall be the highest density
permitted by right during such two-year period.
(2)
Eligible exactions, ineligible exactions and exemptions for
residential development.
(a)
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.
(b)
Developments that have received preliminary or final approval
prior to the effective date of this section shall be subject to the
law in effect at the time of such approval, unless the developer seeks
a substantial change in the approval.
(c)
Development fees shall be imposed and collected when a developer
constructs a new structure, or expands or otherwise alters an existing
structure. The development fee shall be calculated based on the increase
in the equalized assessed value of the improved structure.
D. Nonresidential development fees.
(1)
Imposed fees.
(a)
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.
(b)
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.
(c)
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.
(2)
Eligible exactions, ineligible exactions and exemptions for
nonresidential development.
(a)
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the 2.5% development fee, unless
otherwise exempted below.
(b)
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within existing footprint,
reconstruction,' renovations and repairs.
(c)
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 Non-Residential Development Certification/Exemption
Form." Any exemption claimed by a developer shall be substantiated
by that developer.
(d)
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 the Township of Hanover as a lien against the
real property of the owner.
E. Collection procedures.
(1)
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 Code Official responsible
for the issuance of a building permit that a development fee is required
to be imposed in accordance with this section.
(2)
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 Code
Official shall verify the information submitted by the nonresidential
developer as per the instructions provided in Form N-RDF. The Tax
Assessor shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
(3)
The Construction Code Official responsible for the issuance
of a building permit shall notify the Tax Assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
(4)
Within 90 days of receipt of that notice, the Tax Assessor,
based on the plans filed, shall provide an estimate of the equalized
assessed value of the development.
(5)
The Construction Code Official responsible for the issuance
of a final certificate of occupancy shall notify the Tax Assessor
of any and all requests for the scheduling of a final inspection on
property which is subject to a development fee.
(6)
Within 10 business days of a request for the scheduling of a
final inspection, the Tax 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 the Township of Hanover 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 Section 37 of P.L. 2008, c.
46 (N.J.S.A. 40:55D-8.6).
(8)
The developer shall pay 100% of the calculated development fee
amount prior to the municipal issuance of a final certificate of occupancy
for the subject property.
(9)
Appeal of development fees.
(a)
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 the Township of Hanover.
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.
(b)
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 the Township of
Hanover. 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.
F. Affordable housing trust fund.
(1)
There is hereby created an interest-bearing housing trust fund
to be maintained by the Township's Chief Municipal Finance Officer
for the purpose of depositing development fees collected from residential
and nonresidential developers and proceeds from the sale of units
with extinguished controls. All development fees paid by developers
pursuant to this section shall be deposited in this fund. No money
shall be expended from the housing trust fund unless the expenditure
conforms to a spending plan approved by COAH.
(2)
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(a)
Payments in lieu of on-site construction of affordable units;
(b)
Developer contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(c)
Rental income from municipally operated units;
(d)
Repayments from affordable housing program loans;
(f)
Proceeds from the sale of affordable units; and
(g)
Any other funds collected in connection with the Township of
Hanover's affordable housing program.
(3)
If COAH determines that the Township of Hanover is not in conformance
with COAH's rules on development fees, COAH is authorized to direct
the manner in which all development fees collected pursuant to this
section shall be expended. Such authorization is pursuant to this
section, COAH's rules on development fees and the written authorization
from the governing body to the selected trust fund bank.
(4)
All interest accrued in the housing trust fund shall only be
used on eligible affordable housing activities approved by COAH.
G. Use of funds.
(1)
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 the Township of
Hanover'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. 5:93-8 and specified
in the approved spending plan.
(2)
Funds shall not be expended to reimburse the Township of Hanover
for housing activities which occurred prior to the imposition of required
development fees.
(3)
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.
(a)
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.
(b)
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.
(c)
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. Development fees collected
to finance a rehabilitation program or a new construction project
shall also be exempt from this requirement.
(4)
The Township of Hanover 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.
(5)
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.
H. Monitoring. The Township of Hanover 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 the Township
of Hanover's housing program, as well as to the expenditure of revenues
and implementation of the plan certified by COAH or approved by the
court. All monitoring reports shall be completed on forms designed
by COAH.
I. Ongoing collection of fees. The ability for the Township of Hanover
to impose, collect and expend development fees shall expire with its
substantive certification or judgment of compliance unless the Township
of Hanover 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 the Township
of Hanover fails to renew its ability to impose and collect development
fees prior to the expiration of substantive certification or judgment
of compliance, 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 Section 20 of P.L. 1985, c. 222 (N.J.S.A.
52:27D-320). The Township of Hanover 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 the Township of Hanover retroactively
impose a development fee on such a development. The Township of Hanover
shall not expend development fees after the expiration of its substantive
certification or judgment of compliance.