Township of Medford, NJ SECTION 900 Fees, Guarantees, Inspections and Off-Tract Improvements

§ 901 Fees.

[Ord. No. 1992-1 § 2; Ord. No. 1997-16 § 67; Ord. No. 2001-29 § 11; Ord. No. 2007-30 § 5]

A. Every application for development shall be accompanied by a check payable to the Township of Medford in accordance with the following schedule:

[Amended 3-10-2009 by Ord. No. 2009-4; 7-31-2010 by Ord. No. 2010-18; 3-17-2015 by Ord. No. 2015-3; 12-18-2018 by Ord. No. 2018-27; 10-3-2023 by Ord. No. 2023-14]

			Application Fee +	Escrow Account
1.	Subdivisions
	a.	Minor subdivision plat	$250	$1,200
	b.	Preliminary major subdivision plat	$500	$1,250 plus $300 per lot, provided a minimum of $4,000 shall be deposited
	c.	Final major subdivision plat	$500	$500 plus $125 per lot, provided a minimum of $2,500 shall be deposited
	d.	Informal concept subdivision plat (1 appearance only)	$100	$1,000 (if professional review is requested)
	e.	Amended preliminary major and/or final major subdivision plat	$500	$1,500
2.	Site plans
	a.	Minor site plan	$500	$1,500
	b.	Preliminary major site plan	$500	$1,000 per acre or part thereof, plus $150 per unit in the case of multiple-family units and/or $0.10 per gross square foot of building area in the case of nonresidential buildings, provided a minimum of $4,000 shall be deposited
	c.	Final major site plan	$500	$750 per acre or part thereof, plus $50 per unit in the case of multiple-family units and/or $0.05 per gross square foot of building area in the case of nonresidential buildings, provided a minimum of $2,500 shall be deposited
	d.	Informal concept site plan (1 appearance only)	$100	$1,000 (if professional review is requested)
	e.	Amended preliminary major and/or final major site plan	$500	$1,500
3.	Conditional use not including required site plan or subdivision review		$250	$150 per acre or part thereof, provided a minimum $1,750 shall be deposited
4.	Waiver of site plan		$100	$750
5.	Variances
	a.	Appeals (N.J.S.A. 40:55D-70a)	$250	$1,000
	b.	Interpretation (N.J.S.A. 40:55D-70b)	$250	$1,000
	c.	Bulk (N.J.S.A. 40:55D-70c)	$150	$1,000
	d.	Use and others (N.J.S.A. 40:55D-70d)	$250	$1,500
	e.	Permit (map) (N.J.S.A. 40:55D-34 and 40:55D-35)	$75	$600
6.	General development plan		$500	$250 per acre or part thereof
7.	Extension approvals		$100	$450
8.	Preconstruction meeting
	a.	Minor site/sub	$100	None required
	b.	Major site/sub	$150	None required
9.	Certified list of property owners; see § 706 of this chapter		$0.25 per name or $10, whichever is greater	None required
10.	Copy of minutes, transcripts or decisions; see § 706.E and § 708 of this chapter		$1 per page for first copy of said page, plus $0.25 per copy for each additional copy of said page	None required
11.	Subdivision approval certificate; see § 1003 of this chapter		$50 per certificate	None required
12.	Historic review; see § 806 of this chapter		$250 (for commercial review only)	$750
13.	Copy of audio CDs of Planning Board or Zoning Board meeting		$10 per CD	None required
14.	Sign permit fee		$100 each	None required
15.	Driveway permit fee		$75	$250
16.	Forestry permit fee (see § 612.D and E)		$100	None required
17.	Zoning permit fees
	a.	New construction, one- or two-family dwelling unit	$100
	b.	New construction, multiple-dwelling building	$200
	c.	Additions or rehabilitation of fences, sheds, aboveground pools, or any other structure and residential improvement requiring issuance of a zoning permit	$50	$500 if engineering or planning review is determined to be required by the Zoning Officer
	d.	In-ground pools (includes pool grading plan)	$150
	e.	Nonresidential improvements	$250	$750
	f.	Change of tenant - commercial/business	$75
	g.	Sign permit (new or refacing of existing sign)	$100 per sign

B. The application charge is a flat fee to cover administrative expenses and is nonrefundable. The escrow account is established to cover the costs of professional services including engineering, planning, legal and other expenses connected with the review of the submitted materials, including any traffic engineering review or other special analysis related to the Township's review of the submitted materials, or any necessary studies regarding "off-tract" improvements. Sums not utilized in the review process shall be returned to the applicant within 15 days of the issuance of a Certificate of Occupancy for the development. If additional sums are deemed necessary, the applicant shall be notified of the required additional amount and shall add such sum to the escrow within 15 days; should the applicant not add such sum to the escrow within said 15 days, the applicant shall indicate in writing, prior to any further consideration of the application by the Township, why such sum is not being paid.

C. Where one application for development includes several approval requests, the sum of the individual required application and escrow fees shall be paid.

D. Each applicant for subdivision or site plan approval shall agree to pay all reasonable costs for professional review of the application and for inspection of the improvements. All such costs for review must be paid before any approved plat, plan or deed is signed and all inspection fees must be paid in accordance with § 902.E of the ordinance before any construction permit is issued, and all remaining costs must be paid in full before any occupancy of the premises is permitted or Certificate of Occupancy issued. Payment of any bill rendered by a professional to the municipality with respect to any service for which the municipality is entitled to reimbursement under this ordinance shall in no way be contingent upon receipt of reimbursement by the applicant, nor shall any payment to a professional be delayed pending reimbursement from an applicant.

E. The Administrative Officer shall maintain an itemized account for each application and shall supply a copy of the account to an applicant upon request. The financial officer of the Township shall periodically advise the Administrative Officer of the balance of all escrow accounts and when additional funds are required. It shall be the obligation of the Administrative Officer to notify the applicant of the amount needed and to notify the Planning Board or Zoning Board of Adjustment, as the case may be, of any refusal or failure to properly make any payments required.

F. If an applicant desires a court reporter, the cost for taking testimony and transcribing it and providing a copy of the transcript to the Township shall be at the expense of the applicant who shall arrange for the reporter's attendance.

G. Waiver for Nonprofit Organizations. Notwithstanding the fee and escrow standards identified herein, any property in fee-simple ownership and used for a charitable, philanthropic, fraternal or religious nonprofit organization which is organized and operated as a not-for-profit entity pursuant to the Federal Internal Revenue Code of 1954 [26 U.S.C. § 501(c) or (d)] is exempt from the fees and escrow payments for the following applications:

[Added 5-26-2009 by Ord. No. 2009-9]

1. Informal concept subdivision plat (one appearance).

2. Informal concept site plan (one appearance).

3. Conditional uses not including required site plan or subdivision review.

4. Waiver of site plan.

5. Variances interpretations.

6. Bulk variances.

7. Permit variances.

8. Extension approvals.

9. Subdivision approval certificate.

10. Historic review.

11. Sign permit fee.

12. Driveway permit fee.

13. Forestry permit fee.

§ 902 Guarantees and Inspections.

[Ord. No. 1992-1 § 2]

For purposes of this ordinance section, the term "public improvements" shall mean streets, grading, pavement, gutters, curbs, sidewalks, street lighting, street signs, shade trees, surveyor's monuments, fire prevention features, water mains, culverts, sewers, sanitary sewers or other means of sewage disposal, drainage structures, erosion control and sedimentation devices, landscaping, public improvements of open space, and other on-site improvements.

A. Requirements Specific to Major Subdivisions.

1. No final major subdivision application (whether for an entire tract or a section thereof) shall be approved by the Board until the satisfactory completion and performance of all required public improvements has been certified to the Board by the Township Engineer unless the owner shall have performed the following:

a. Satisfactorily completed all required utility installations and their appurtenances, including water mains, drainage and detention facilities, culverts, storm sewers, sanitary sewers or dry sewers and public improvements of open space;

b. Satisfactorily completed all required grading and the "macadam base course" surfacing of all streets;

c. Satisfactorily completed the construction of all required curbs; and/or

d. Filed with the Township a performance guarantee in accordance with § 902.D of this ordinance, sufficient in amount to cover the cost of all remaining required improvements, as estimated by the Township Engineer, and assuring the installation of said improvements on or before an agreed date and as hereinafter provided.

2. Except as hereafter provided, the remaining required improvements shall be at least 50% completed as to each category set forth in the performance guarantee within one year from the date of final approval or by such time as 50% of the lots in the section in question have been conveyed in any manner by the applicant, whichever shall first occur. At least 75% of the remaining required improvements shall be completed as to each category as set forth in the performance guarantee within 18 months from the date of final approval, or at such time as 75% of the lots in the section in question have been conveyed in any manner by the applicant; whichever shall first occur. Such improvements shall be 100% completed and accepted by the Township within two years from the date of final approval or at such time as all of the lots in the section in question shall first occur. It is the intention of the Township Council that this requirement will provide to those living in each new section of a subdivision a lot that is as complete as possible with respect to tract and individual lot improvements.

B. Requirements Specific to Major Site Plans. No final major site plan application (whether for an entire tract or a section thereof) shall be approved by the Board unless: 1) the Township Engineer has certified to the Board that all public improvements required by the preliminary site plan approval have been satisfactorily completed or, 2) the applicant, with the approval of the Planning Board or the Zoning Board of Adjustment, as the case may be, has entered into a developer's agreement with the Township in a form satisfactory to the Township Attorney and authorized by the governing body, requiring the installation and maintenance by the applicant (and the applicant's successors in interest) of the public improvements, imposing such limitations upon, and/or staging of, the development of the site as are necessary to ensure orderly construction of the public improvements on or before an agreed upon date by the filing of a performance guarantee in accordance with § 902.D of this ordinance.

C. Requirements Specific to Minor Subdivisions and Minor Site Plans. In the case of a minor site plan and/or minor subdivision, in the event that the developer elects to complete all improvements without posting the performance guaranty required by § 902.D hereinbelow, no construction shall be commenced until a revised plan is submitted and signed, incorporating all conditions of approval. The developer shall still post the inspection escrow and notify the Township Engineer prior to commencement of work. The Administrative Officer shall have the power to waive the requirement of an inspection escrow for minor site plans only where the site improvements are established to be less than $3,500, in which case the Township building inspection staff shall perform the inspections, and notice of work to be commenced shall be given to the Township Uniform Construction Code Official instead of to the Township Engineer. Whether or not an inspection escrow is required, all site improvements under this subsection must be completed prior to the issuance of a Certificate of Occupancy, or within 120 days of a Temporary Certificate of Occupancy if the performance guaranty covering the balance of the uncompleted improvements has been posted.

D. Performance Guarantee.

1. A performance guarantee estimate shall be prepared by the Township Engineer for review and approval, setting forth all required improvements as determined by the Board and their estimated cost, provided that no performance guarantee shall be required for the installation of utilities, when said utility improvements will be installed by the applicable utility company. Any adjustment in the amount of the performance guarantee shall be approved by resolution of the Township Council.

2. The cost of the installation of the required improvements shall be estimated by the Township Engineer based on documented construction costs for public improvements prevailing in the general area of the Township. The developer may appeal the Township Engineer's estimate to the Township Council. The Township Council shall decide the appeal within 45 days of receipt of the appeal in writing by the Township Clerk. After the developer posts a guarantee with the Township based on the cost of the installation of improvements as determined by the Township Council, he may institute legal action within one year of the posting in order to preserve the right to a judicial determination as to the fairness and reasonableness of the amount of the guarantee.

3. The applicant shall present two copies of the performance guarantee in an amount equal to 120% of the approved construction cost performance guarantee estimate for approval as to form and execution by the Township Attorney; additional copies of the performance guarantee shall be forwarded by the owner to the Planning Board Attorney or Zoning Board of Adjustment Attorney, as the case may be. The performance guarantee estimates, as prepared by the Township Engineer and approved by the Township Council, shall be appended to each performance guarantee posted by the obligor.

4. The performance guarantee shall be made payable and deposited to the Township of Medford and shall be in the form of cash, irrevocable letter of credit or certified check or a performance bond in which the applicant shall be principal, the bond to be provided by an acceptable surety company licensed to do business in the State of New Jersey. The Township shall issue its receipt for such deposits and shall cause the same to be deposited in the name of the Township to be retained as security for completion of all requirements and to be returned to the owner on completion of all required work or, in the event of default on part of the applicant, to be used by the Township to pay the cost and expense of obtaining completion of all requirements.

5. Ten percent of the amount of the approved performance guarantee shall be deposited by the applicant in cash with the Township. The remaining 90% may be in cash, irrevocable letter of credit or surety bond. In the event of default, the 10% cash shall be first applied to the completion of the requirements and any bidding and legal costs associated therewith, and the remaining 90% cash, letter or credit, or surety bond shall thereafter be resorted to, if necessary, for the completion of the requirements and any additional bidding and legal costs associated therewith.

E. Start of Construction. Construction pursuant to a site plan or subdivision approval shall not commence until:

1. The applicant has paid all fees required by this ordinance;

2. The applicant has received all other governmental approvals required by the Board's resolution of memorialization granting subdivision and/or site plan approval;

3. All revisions to the submitted plat or plan required by the Board at the time of subdivision or site plan approval have been filed with and approved by the Township Engineer and any other individual or group as may have been specified by the Board in the applicable resolution of memorialization granting subdivision and/or site plan approval.

4. The applicant's construction plans have been filed with and approved by the Township Engineer;

5. The applicant has had a preconstruction meeting with the Township Engineer in accordance with § 1002.A of this ordinance for the purpose of forecasting and resolving problems that may arise during the time of construction.

F. Inspection and Tests.

1. All site improvements and utility installations for site plans, subdivisions, plot plans and other realty improvements shall be inspected during the time of their installation under the supervision of the Township Engineer to insure satisfactory completion. The cost of said inspection shall be the responsibility of the developer who shall deposit with the Township Treasurer/Chief Financial Officer inspection fees in an amount not to exceed, except for extraordinary circumstances, the greater of $500 or 5% of the cost of the improvements as determined by the Township Engineer in accordance with Subsection 902.D.2 of this ordinance, provided that:

a. For those developments for which the reasonable anticipated inspection fees are less than $10,000, the fees may, at the option of the developer, be paid in two installments. The initial amount deposited by the developer shall be 50% of the reasonably anticipated fees. When the balance of 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 Engineer for the inspection(s), the developer shall deposit the remaining 50% of the anticipated inspection fees.

b. For those developments for which the reasonable anticipated inspection fees are $10,000 or greater, the fees may, at the option of the developer, be paid in four installments. The initial amount deposited by the developer shall be 25% of the reasonably anticipated fees. When the balance of 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 Engineer for the inspection(s), the developer shall make additional deposits of 25% of the anticipated inspection fees.

2. The inspection escrow shall be deposited by the Township Manager, or his designee, in an account for such purposes under the sole control of the Township. Said inspection escrows may be commingled with similar escrows from other developers, but accurate accounts and records shall be kept so as to identify the particular escrows and charges made against the same. The inspection escrow funds shall be used solely for payment of inspection fees, expenses and costs on behalf of the Township during the course of construction by the Township Engineer, or such other officials as designated by the Township, including the Township Planner or the Township Attorney, for preparation of bond reduction resolutions and approval of guarantees.

3. The Township Engineer shall not perform any inspection if sufficient funds to pay for those inspections are not on deposit. Failure of the developer to deposit the required inspection fees in accordance with Subsection 902.F.1 of this ordinance herein-above will subject the developer to a "stop-work" order and/or suspension of construction permits.

4. In no case shall any paving work be done without permission from the Township Engineer. At least two working days' notice shall be given to the Township Engineer prior to any construction so that he or a qualified representative may be present at the time the work is to be done.

5. Streets shall not be paved with a top course until all heavy construction is completed and, if determined by the Township Engineer to be necessary, the macadam base course has first been restored. Shade trees shall not be planted until all grading and earth moving is completed. The placing of surveyor's monuments shall be among the last operations.

6. The Township Engineer's office shall be notified at least two working days prior to the commencement of the following phases of work so that he or a qualified representative may inspect the work:

a. Road subgrade.

b. Curb and gutter forms.

c. Curbs and gutters.

d. Road paving.

e. Sidewalk forms.

f. Sidewalks.

g. Drainage pipes and other drainage construction.

h. Street name signs.

i. Monuments.

j. Sanitary sewers and pump stations.

k. Detention and/or retention basins.

l. Topsoil, seeding and planting.

m. Underground utilities.

n. Potable water facilities.

7. Any improvement installed contrary to the plan or plat approval by the Township shall constitute just cause to void the municipal approval.

8. Any improvement installed without notice for inspection pursuant to § 902.F.4 hereinabove shall constitute just cause for:

a. Removal of the uninspected improvement;

b. The payment by the developer of any costs for material testing;

c. The restoration by the developer of any improvements disturbed during any material testing; and/or

d. The issuance of a 'stop work' order by the Township Engineer pending the resolution of any dispute.

9. Inspection by the Township of the installation of improvements and utilities shall not operate to subject the Township of Medford to liability for claims, suits or liability of any kind that may at any time arise because of defects or negligence during construction or at any time thereafter; it being recognized that the responsibility to maintain safe conditions at all times during construction and to provide proper utilities and improvements is upon the owner and his contractor, if any.

10. Upon substantial completion of all required street improvements (except for the top course) and appurtenant utility improvements, and the connection of same to the public system, the obligor may request of the Township Council in writing, by certified mail in care of the Township Clerk, that the Township Engineer prepare in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to § 902.D.2 of this ordinance, a list of all uncompleted or unsatisfactory completed improvements. If such a request is made, the obligor shall send a copy of the request to the Township Engineer. The request shall indicate which improvements have been completed and which improvements remain uncompleted in the judgement of the obligor. The Township Engineer shall inspect all the improvements covered by the obligor's request and shall file a detailed list and report, in writing, with the Township Council, and shall simultaneously send a copy thereof to the obligor not later than 45 days after receipt of the obligor's request.

If the Township Engineer fails to send or provide the list and report, as requested by the obligor, within 45 days from the receipt of the request, the obligor may apply to the Court in a summary manner for an order compelling the Township Engineer to provide the list and report within a stated time and the cost of applying to the Court, including reasonable attorney's fees, may be awarded to the prevailing party.

11. The list prepared by the Township Engineer pursuant to § 902.F.10 hereinabove, shall state, in detail, with respect to each improvement determined to be incomplete or unsatisfactory, the nature and extent of the incompleteness of each incomplete improvement or the nature and extent of, and remedy for, the unsatisfactory state of each completed improvement determined to be unsatisfactory. The report prepared by the Township Engineer shall identify each improvement determined to be complete and satisfactory together with a recommendation as to the amount of reduction to be made in the performance guarantee relating to the completed and satisfactory improvement, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to § 902.D.3 of this ordinance.

G. Release. The Township Council, by resolution, shall either approve the improvements determined to be complete and satisfactory by the Township Engineer, or reject any or all of these improvements upon the establishment in the resolution of cause for rejection, and shall approve and authorize the amount of reduction to be made in the performance guarantee relating to the improvements accepted, in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to § 902.D.3 of this ordinance. This resolution shall be adopted not later than 45 days after receipt of the list and report prepared by the Township Engineer.

1. Upon adoption of the resolution by the Township Council, the obligor shall be released from all liability pursuant to its performance guarantee, with respect to those approved improvements, except for that portion adequately sufficient to secure completion or correction of the improvements not yet approved; provided that 30% of the amount of the performance guarantee posted may be retained to ensure completion and acceptability of all improvements.

2. In the event that the obligor has made a cash deposit with the Township or approving authority as part of the performance guarantee, then any partial reduction granted in the performance guarantee shall be applied to the cash deposit in the same proportion as the original cash deposit bears to the full amount of the performance guarantee.

3. If any portion of the required improvements is rejected, the obligor shall complete or correct such improvements and, upon completion or correction, shall notify the Township Council as specified in § 902.F.10 of this ordinance and the same procedures shall be followed as in the first instance.

4. Prior to the approval by the Township Council of the final reduction and release of the performance guarantee, all easements and open space shall be conveyed to the Township or such other grantee as specified on the final plat by deed containing a metes-and-bounds legal description.

5. If the Township Council fails to approve or reject the improvements determined by the Township Engineer to be complete and satisfactory or reduce the performance guarantee for the complete and satisfactory improvements within 45 days from the receipt of the Township Engineer's list and report, the obligor may apply to the Court in a summary manner for an order compelling, within a stated time, approval of the complete and satisfactory improvements and approval of a reduction in the performance guarantee for the approvable complete and satisfactory improvements in accordance with the itemized cost estimate prepared by the Township Engineer and appended to the performance guarantee pursuant to § 902.D.3 of this ordinance, and the cost of applying to the Court, including reasonable attorney's fees, may be awarded to the prevailing party.

H. Conditions and Acceptance of Improvements. The approval of any application for development by the Township shall in no way be construed as acceptance of any street or drainage system or other improvement. No improvements shall be accepted by the Township Council unless and until all of the following conditions have been met:

1. The final application for development shall have been approved by the Planning Board or Zoning Board of Adjustment, as the case may be, and the developer shall have submitted an affidavit, signed by a licensed New Jersey professional land surveyor, certifying that all required monuments have been set in accordance with the Map Filing Law and any approved subdivision plat.

2. The Township Engineer shall have certified in writing that the improvements are completed and that they comply with the requirements of this ordinance and the terms of the final application for development approved by the Board.

3. The owner shall have filed with the Township Council a maintenance guarantee in an amount equal to and not more than 15% of the cost of installing the improvements, the "cost" to be determined by the Township Engineer in accordance with § 902.D.2 of this ordinance hereinabove. The maintenance guarantee shall run for a period of two years. The procedures and requirements governing such maintenance guarantee shall be identical with the procedures and requirements for a performance guarantee set forth in this ordinance. The requirements for a maintenance guarantee may be waived by the Township Council only if the Township Engineer has certified that the improvements have been in continuous use for not less than two years from the date the Township Engineer certified completion of such improvements and that during this period the owner has maintained the improvements in a satisfactory manner; and,

4. An "as built" plan and profiles of all utilities and roads (two black and white prints to be sent to the Township Engineer plus a mylar copy and two black and white prints to be sent to the Administrative Officer), with certification signed and sealed by a New Jersey licensed professional engineer as to the actual construction as approved by the Township Engineer, shall be provided.

I. Extension of Time. The time allowed for the installation of the improvements for which the performance guarantee has been provided may be extended by the Township Council by resolution, provided that the current cost of installation of such improvements shall first be redetermined by the Township Engineer, and if such current cost is found to be greater than the cost as originally determined, the applicant shall be required to increase the amount of the performance guarantee to an amount equal to 120% of the installation cost as redetermined. In the event that the redetermined cost shall be less than the cost as originally determined, and in further event that the applicant's performance guarantee exceeds one 120% of such redetermined costs, the applicant shall be entitled to a reduction of the performance guarantee to an amount equal to 120% of such redetermined costs.

J. Default by Developer. If the required improvements are not completed or corrected in accordance with the performance guarantee, the obligor and surety, if any, under the performance guarantee shall be liable thereon to the Township for the cost of the improvements not completed or constructed, and the Township, either prior to or after receipt of the proceeds thereof, may complete the improvements. Such completion or correction of improvements shall be subject to the public bidding requirements of the "Local Public Contracts Law," P.L.1971, c.198. For purposes of this subsection, "default" shall mean failure to install the improvements in accordance with Township standards of construction, including but not limited to failure to install the improvements prior to the expiration of the performance guarantee. The Township Engineer's certification that the developer has defaulted in compliance with the required standards of construction and installation of improvements shall be the basis for Township Council action which rejects the improvements, withholds approval, withholds construction permits or formally declares default and authorizes collection on the performance guarantee.

K. Penalties. In addition to the penalties for violation of this ordinance in accordance with § 1004, the Township Engineer is specifically authorized to require the replacement of any lands, buildings, structures and site improvements (including clearing, whether on-site or off-site) or of any other work commenced or continued on any site for which an approval is required pursuant to this ordinance in violation of any stop-construction order or the standards for construction as established by the Township.

§ 903 Special Provisions for Escrow Deposits Exceeding $5,000.

[Ord. No. 1992-1 § 2]

Whenever an amount of money in excess of $5,000 is deposited by an applicant or developer with the Township for professional services employed by the Township for the review of submitted applications for development pursuant to § 901 of this ordinance, or for inspections pursuant to § 902.F of this ordinance, or to satisfy the guarantee requirements pursuant to § 902.D of this ordinance, 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 section, shall continue to be the property of the applicant or developer and shall be held in trust by the municipality in accordance with the following:

A. The money deposited shall be held in escrow.

B. The money shall be deposited by the Township in a banking institution or savings and loan association in New Jersey insured by an agency of the federal government, or in any other fund or depository approved for such deposits by the State.

C. The money shall be deposited in an account bearing interest at the minimum rate currently paid by the institution or depository on time or savings deposits.

D. 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.

E. The Township shall not be required to refund an amount of interest paid on a deposit which does not exceed $100. However, if the amount exceeds $100, that entire amount shall belong to the applicant or developer and shall be refunded to him/her 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 not more than 33 1/3% of that entire amount which shall be in lieu of all other administrative and custodial expenses.

§ 904 Off-Tract Improvements.

[Ord. No. 1992-1 § 2]

A. Required Improvements. Applicants shall be required, as a condition for approval of a subdivision, site plan or conditional use, to pay their pro rata share of the cost providing reasonable and necessary street improvements and/or water, sewerage and drainage facility improvements, and any necessary easements therefore located outside the property limits of the subject premises, but indicated in the Township Master Plan and necessitated or required by construction or improvements within such subdivision or development. The following criteria shall be utilized in determining the developer's proportionate pro rata monetary share for the necessary off-tract developments.

B. Improvements to be Constructed at the Expense of the Developer. In cases where the need for an off-tract improvement is reasonably created by the proposed subdivision or development and where no other property owners receive a special benefit thereby (as opposed to a mere incidental benefit), the applicant may be required, as a condition of approval and at the applicant's sole expense, to acquire and/or improve lands outside the tract and dedicate such lands to the Township of Medford or Burlington County or, in lieu thereof, require the subdivider or developer to deposit with the Township a sum of money sufficient to allow the Township to acquire and/or improve such lands on conditions it may deem appropriate under the circumstances.

C. General Standards for Other Improvements. In cases where the need for any off-tract improvement to be implemented now or in the future is reasonably necessitated by the proposed development application, and where it is determined that properties outside the development also will be benefited by the improvement, the following criteria, together with the provisions or rules and regulations of the Township of Medford or any department thereof, may be utilized in determining the developer's proportionate share of such improvements:

1. Sanitary Sewers. For distribution facilities, including the installation, relocation or replacement of collector, trunk and interceptor sewers and the installation, relocation or replacement of other appurtenances associated therewith, the applicant's proportionate share shall be computed as follows:

a. The capacity and the design of the sanitary sewer system shall be based on the Rules and Regulations for the Preparation and Submission of Plans for Sewerage Systems, New Jersey State Department of Environmental Protection, and all Medford Township sewer design standards, including infiltration standards.

b. Developer's pro rata share:

(1) The capacity of the existing system to serve the entire improved drainage area shall be computed. If the system is able to carry the total development drainage basin, no improvement or enlargement cost will be assigned to the developer although some charges including, but not limited to, capacity charges may be imposed. If the existing system does not have adequate capacity for the total development drainage basin, the pro-rated enlargement or improvement share shall be computed as follows:

Developer's Pro-Rated Share Total Enlargement or Improvement Cost

=

Development gpd Total Tributary gpd

(2) If it is necessary to construct a new system in order to develop the subdivision or development, the pro-rated enlargement share to the developer shall be computed as follows:

Developer's Pro-Rated Share Total Project Cost

=

Development Tributary gpd Total Tributary gpd to New System

(3) Specific plans for the improved system or the extended system shall be prepared by the developer's engineer and submitted to the Planning Board or Zoning Board of Adjustment, as the case may be, during the time period when the Board is reviewing the proposed subdivision and/or site plan application. The total cost for the improvement and the developer's pro-rated share of the total cost shall be calculated by the developer's engineer, submitted to the Board, reviewed by the Township Engineer, and approved by the Planning Board or Zoning Board of Adjustment, as the case may be, with any reasonable adjustments to the estimated costs, at the time when preliminary approval of the application for development is granted.

2. Roadways. For street widening, alignment, channelization of intersections, construction of barriers, new or improved traffic signalization, signs, curbs, sidewalks, trees, utility improvement uncovered elsewhere, the construction or reconstruction of new or existing streets and other associated streets or traffic improvements, the applicant's proportionate cost shall be determined as follows:

a. The applicant's engineer shall provide the Township Engineer with the existing and anticipated peak-hour volumes which impact the off-tract areas in question, which volumes shall analyze pedestrian, bicycle and motor vehicle traffic.

b. The applicant shall furnish a plan for the proposed off-tract improvements, which shall include the estimated peak-hour traffic generated by the proposed development. The ratio of the peak-hour traffic generated by the proposed development to the future peak-hour traffic shall form the basis of the proportionate share. The pro-rated share shall be computed as follows:

Developer's Pro- Rated Share Total Cost of Roadway Improvement and/or Extension

=

Additional Peak-Hour Traffic Generated by the Development Future Total Peak-Hour Traffic

c. Specific plans for the roadway improvement and/or extension shall be prepared by the developer's engineer and submitted to the Planning Board or Zoning Board of Adjustment, as the case may be, during the time period when the Board is reviewing the proposed subdivision and/or site plan application. The total cost for the improvement and/or extension and the developer's prorated share of the total cost shall be calculated by the developer's engineer, submitted to the Board, reviewed by the Township Engineer, and approved by the Planning Board or Zoning Board of Adjustment, as the case may be, with any reasonable adjustments to the estimated costs, at the time when preliminary approval of the application for development is granted.

3. Drainage Improvements. For the stormwater and drainage improvements, including the installation, relocation or replacement of storm drains, culverts, catch basins, manholes, riprap or improved drainage ditches and appurtenances thereto and the relocation or replacement of other storm drainage facilities or appurtenances associated therewith, the applicant's pro-rated share shall be determined as follows:

a. The capacity and design of the drainage system to accommodate stormwater run-off shall be computed by the developer's engineer and approved by the Township Engineer and shall be based on a method either described in Urban Hydrology for Small Watersheds, Technical Release 55, Soil Conservation Service USDA, January 1986, as amended, or as described in American Society of Civil Engineers Manuals and Reports on Engineering Practice No. 37, 1974, as amended, or as otherwise approved by the Township Engineer.

b. The capacity of the enlarged, extended or improved system required for the subdivision or development and areas outside of the subdivision or development shall be computed by the developer's engineer and be subject to the approval of the Township Engineer. The plans for the improved system shall be prepared by the developer's engineer and the estimated cost of the enlarged system shall be calculated by the Township Engineer. The prorated share for the proposed improvement shall be computed as follows:

Developer's Pro-Rated Share Total Enlargement or Improvement Cost of Drainage Facilities

=

Development cfs Total Tributary cfs

c. Specific plans for the enlargement or improvement of the drainage facilities shall be prepared by the developer's engineer and submitted to the Planning Board or Zoning Board of Adjustment, as the case may be, during the time period when the Board is reviewing the proposed subdivision and/or site plan application. The total cost for the enlargement or improvement and the developer's pro-rated share of the total cost shall be calculated by the developer's engineer, submitted to the Board, reviewed by the Township Engineer, and approved by the Planning Board or Zoning Board of Adjustment, as the case may be, with any reasonable adjustments to the estimated costs, at the time when preliminary approval of the application for development is granted.

4. Water.

a. Regarding all nonresidential developments and all planned developments, and regarding subdivisions where public water is accessible, water mains shall be constructed and connected to the existing public water supply systems by the applicant, at the applicant's sole expense, and in such a manner as to make adequate water service available to each lot or building within the development. The entire system shall be designed in accordance with the requirements and standards of the local and/or State agency having approval authority and shall be subject to their approval. The system also shall be designed with adequate capacity and sustained pressure and in a looped system with no dead-end lines, whenever possible.

For purposes of this ordinance Section regarding subdivisions, 'accessible' shall mean that the property to be developed is no further from an existing water main than the number of feet calculated by multiplying the number of lots in the proposed subdivision by 200 or, in the case of subdivisions in which more than 15 lots are proposed, 'accessible' shall mean that the property to be developed is within one mile of an existing water main.

b. Where no public water is 'accessible' to a subdivision as defined hereinabove, water shall be furnished on an individual lot basis. If wells are installed on each lot and the lot also contains its own sewage disposal facilities, the wells shall be of the drilled type with a minimum 100 feet of casing where possible or, where such minimum footage of casing is not possible, the well shall be drilled at least 20 feet into unweathered rock. Well installation, sealing and testing shall be in accordance with the New Jersey Standards for Construction of Water Supply Systems in Realty Improvements (Chapter 199 of the Public Laws of 1954), as amended, and in accordance with the guidelines and resolutions adopted by the County Board of Health. Prior to being placed in consumer use and prior to issuance of a Certificate of Occupancy for any building served by the well, the developer shall certify to the County Board of Health that he/she has complied with all applicable State, County and local regulations.

c. Where no public water is 'accessible' to a subdivision as defined hereinabove, in addition to complying with § 530.B, the applicant shall deposit funds in escrow with the Township of Medford in an amount equal to the cost of connecting the subdivision to an existing public water supply system calculated on the basis of 200 feet per unit. The escrow amount shall be calculated by determining the costs of providing such water main extension as charged by the public water utility for such service, including but not limited to, materials, installation, taxes, appurtenances and surcharges, if any.

d. In lieu of depositing the aforesaid escrow funds, the applicant may, at his/her option, elect to install water main extensions in the subdivision, even though public water may not be 'accessible' as defined hereinabove.

D. Escrow Accounts. Where the proposed off-tract improvement is to be undertaken at a future date, funds required for the improvement shall be deposited to the credit of the Township of Medford in a separate account until such time as the improvement is constructed. In lieu of a cash escrow account, developer's may present irrevocable letters of credit for the term required in a form acceptable to the Township Attorney. If the off-tract improvement is not begun within 10 years of the deposit, all monies and interest shall be returned to the applicant or the letter of credit, as the case may be, surrendered. An off-tract improvement shall be considered "begun" if the Township of Medford has taken legal steps to provide for the design and financing of such improvements.

E. Referral to Township Council.

1. Where applications for development suggest the need for off-tract improvements, whether to be installed in conjunction with development in question or otherwise, the Planning Board or the Zoning Board of Adjustment, as the case may be, shall forthwith forward to the Township Council a list and description of all such improvements together with a request that the Township Council determine and advise the Board of the procedure to be followed in construction or installation thereof, including timing. The Board shall defer final action upon the subdivision or site plan until receipt of the Township Council determination or the expiration of 90 days after the forwarding of such list and description to the Township Council without determination having been made, whichever comes sooner.

2. The Township Council, within 90 days after receipt of said list and description, shall determine and advise the Planning Board or Zoning Board of Adjustment, as the case may be, concerning the procedure to be followed and advise the Board with regard to suggested conditions of approval, if any, to adequately protect the municipality.

3. In the event that the Planning Board or Zoning Board of Adjustment, as the case may be, is required by statute to act upon the application prior to receipt of the Township Council's determination as to construction of off-tract improvements, it shall request the applicant to consent to an extension of time within which to act, of sufficient duration to enable the Township Council to make the aforesaid determination. In the event that the applicant is unwilling to consent to the requested extension of time, the Planning Board or Zoning Board of Adjustment, as the case may be, shall, in its discretion, either itself determine the procedure to be followed in constructing the aforesaid improvements, or shall condition its approval upon the subsequent determination of the Township Council.

F. Implementation of Off-Tract Improvements.

1. In all cases, developers shall be required to enter into an agreement or agreements with the Township Council in regard to off-tract improvements, within one year from the date of municipal subdivision or site plan approval and in accordance with this ordinance and any other ordinances, policies, rules and regulations of the Township of Medford, Burlington County and the State of New Jersey and any departments, authorities or agencies thereof.

Should such an agreement or agreements not be entered into within the aforesaid one-year time period, or within such extended time period as may be granted by the Township Council the municipal subdivision and/or site plan approval shall be deemed null and void.

2. Where properties outside the subject tract will be benefitted the improvements, the Township Council may require the applicant to escrow sufficient funds, in accordance with § 903.D hereinabove, to secure the developer's pro rata share of the eventual cost of providing future structural improvements based upon the standards expressed herein.

3. Where properties outside the subject tract will benefit by the improvements, the Township Council may determine that the improvement or improvements are to be installed by the municipality as a general improvement, the cost of which is to be borne as a general expense. If the Township Council shall determine that the improvement or improvements shall be constructed or installed as a general improvement, the Township Council may direct the Planning Board to estimate, with the aid of the Township Engineer or such other persons who have pertinent information or expertise, the amount, if any, by which the total cost thereof will exceed the total amount by which all properties, including the subject tract, will be specifically benefitted thereby, and the subdivider or developer shall be liable to the municipality for such expense.

4. If the Township Council shall determine that the improvement or improvements shall be constructed or installed as a local improvement, all or a part of the cost of which is to be assessed against properties benefitted thereby in proportion to the benefits conferred by the improvements in accordance with Chapter 56 of Title 40 of the Statutes of the State of New Jersey, the developer may be required to sign an agreement acknowledging and agreeing to this procedure and, in addition, the Township Council may require that the developer shall be liable to the municipality, in addition to the amount of any special assessments against the subject property for benefits conferred by the improvement or improvements, the difference between the total cost actually incurred and the total amount by which all properties, including the subject tract, are specially benefitted by the improvement as the same may be determined by the Board of Improvement Assessors.

5. If the Township Council shall determine that the improvements are to be constructed or installed by the applicant, such agreement may contain provisions, consistent with the standards in this ordinance and any other rules, regulations or policies of the Township of Medford, County of Burlington and the State of New Jersey and any departments, authorities or agencies thereof with jurisdiction therein, whereby the applicant shall be reimbursed by the municipality or otherwise, as a result of any participation fees, connection charges, charges paid in regard to developer's agreements with other applicants and the like, all in accordance with an agreement between the Township Council and the applicant.

6. In determining the procedures to be followed in the event of the submission of a list and request from the Planning Board, the Township Council shall be guided by the following standards and considerations:

a. The local trends in regard to the probability of development within the drainage or circulation area in question and the intensity of such development;

b. The risk and exposure that neighboring areas are subject to in the event that the improvements to be required are delayed;

c. The extent to which temporary measures may sufficiently alleviate the condition or conditions requiring the off-tract improvement and the likelihood that larger, regional or sub-regional facilities will be required in the future to serve the development tract and the general area of the municipality in which the same is located; and

d. The extent to which the health, safety and welfare of the residents, both current and future, depend upon the immediate implementation of the off-tract improvement.

§ 905 Development Fees for Affordable Housing.

[Ord. No. 1999-10 § 1; Ord. No. 2000-2 §§ 1, 2; Ord. No. 2005-9 §§ 1-3; Ord. No. 2008-3; amended 4-13-2010 by Ord. No. 2010-6; 8-18-2020 by Ord. No. 2020-17]

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 40:55D-8.7), COAH was 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 a court of competent jurisdiction and have an approved spending plan may retain fees collected from nonresidential development.

3. Pursuant to the March 10, 2015, Supreme Court Order, the Court transferred all functions, powers, and duties of COAH to the courts.

4. This section establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's regulations and in accordance P.L. 2008, c. 46, Sections 8 and 32-38. Fees collected pursuant to this section shall be used for the sole purpose of providing low- and moderate-income housing.

B. Basic requirements.

1. This section shall not become effective until approved by the Court pursuant to N.J.A.C. 5:93-8.2.

2. The Township of Medford shall not spend development fees until the Court has approved a plan for spending such fees in conformance with N.J.A.C. 5:93-5.1(c).

C. Definitions. The following terms, as used in this section, shall have the following meanings:

AFFORDABLE HOUSING DEVELOPMENT

A development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.

COAH or the COUNCIL

The New Jersey Council on Affordable Housing established under the Fair Housing Act[1] which previously had primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the state.

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

Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:93-8.

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 54:1-35c).

GREEN BUILDING STRATEGIES

Those strategies that minimize the impact of development on the environment, and enhance the health, safety and well-being of residents by producing durable, low-maintenance, resource-efficient housing while making optimum use of existing infrastructure and community services.

[1] Editor's Note: See N.J.S.A. 52:27D-301 et seq.

D. Residential development fees.

1. Imposed fees.

a. Within all Township zoning district(s), residential developers, except for developers of the types of development specifically exempted below, shall pay a fee of 1.5% of the equalized assessed value for residential development provided no increased density is permitted.

b. When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5) (known as a density or "d" variance) has been approved, developers shall be required to pay a development fee of 6% of the equalized assessed value for each additional unit that may be realized, except that this provision shall not be applicable to a development that will include a set-aside of affordable housing units. 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.

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 site plan approval prior to the adoption of a municipal development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval. Where a site plan approval does not apply, a zoning and/or building permit shall be synonymous with preliminary or final site plan approval for this purpose. The applicable development fee percentage shall be vested on the date that the building permit is issued.

c. Owner-occupied residential structures demolished and replaced as a result of a fire, flood, or natural disaster shall be exempt from paying a development fee.

d. Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.

e. Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use, which requires the issuance of a certificate of occupancy (for example, when a single-family home is converted to a two-family home or a single-family home is converted to an apartment building). The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.

f. Development fees shall be imposed and collected when a certificate of occupancy is issued for a new residential unit on a newly created lot that is the result of a subdivision. The development fee shall be calculated on the equalized assessed value of the land and improvements.

g. Additions to existing homes and improvements such as decks, patios and like shall be exempt from the payment of a development fee.

E. Nonresidential development fees.

1. Imposed fees.

a. Within all zoning districts, 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 herein, 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 improvements and the equalized assessed value of the newly improved structure, i.e., land and improvements, at the time the 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 the existing building 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 the development fee at such time as 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 for 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 Medford as a lien against the real property of the owner.

F. 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 official responsible for the issuance of a building permit.

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 official shall verify the information submitted by the nonresidential developer as per the instructions provided in the 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 official responsible for the issuance of a building permit shall notify the local 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 Municipal Tax Assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development.

5. The construction official responsible for the issuance of a final certificate of occupancy shall notify the local 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 Municipal Assessor shall confirm or modify the previously estimated equalized assessed value of the improvements associated with the development; calculate the development fee; and thereafter notify the developer of the amount of the fee.

7. Should the Township of Medford 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. Fifty percent of the development fee shall be collected at the time of issuance of the building permit. The remaining portion shall be collected at the issuance of the certificate of occupancy. 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.

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 Medford. 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 Medford. 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.

G. Affordable Housing Trust Fund.

1. There is a separate, interest-bearing housing trust fund to be maintained by the Chief Financial Officer of the Township for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls.

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. Net rental income (after payment of expenses) from municipally operated units;

d. Repayments from affordable housing program loans;

e. Recapture funds;

f. Proceeds from the sale of affordable units; and

g. Any other funds collected in connection with the Township of Medford's affordable housing program.

3. Within seven days from the opening of the trust fund account, the Township of Medford shall provide COAH and/or the Department of Community Affairs (DCA) with written authorization, in the form of a three-party escrow agreement between the Township, the bank, and COAH and/or DCA, to permit COAH and/or DCA to direct the disbursement of the funds as provided for in N.J.A.C. 5:93-8.19.

4. All interest accrued in the housing trust fund shall only be used to fund eligible affordable housing activities approved by the Court.

H. Use of funds.

1. The expenditure of all funds shall conform to a spending plan approved by the Court. Funds deposited in the housing trust fund may be used for any activity approved by the Court to address the Township of Medford'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 and market to affordable 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. 5:93-8.16 and specified in the approved spending plan.

2. Funds shall not be expended to reimburse the Township of Medford for past affordable housing activities.

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.

4. The Township of Medford may contract with a private or public entity to administer any part of its amended Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:93-8.16(d).

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, compliance with the monitoring requirements set forth in the Court-approved May 10, 2017, executed Settlement Agreement with Fair Share Housing Center. Legal or other fees related to litigation opposing affordable housing sites or objecting to the COAH's regulations and/or action are not eligible uses of the Affordable Housing Trust Fund.

I. Monitoring. On or about May 10 of each year through 2025, the Township of Medford shall provide reporting of trust fund activity to the DCA, Local Government Services (LGS), or other entity designated by the State of New Jersey, with a copy provided to the Fair Share Housing Center and posted on the municipal website, using forms developed for this purpose by the DCA, COAH, or LGS. This reporting shall include an accounting of all housing trust fund activity, including 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 Medford's housing program, as well as in connection with the expenditure of revenues and implementation of the plan approved by the Court.

J. Ongoing collection of fees.

1. The ability for the Township of Medford to impose, collect and expend development fees shall expire with the end of the repose period covered by its judgment of compliance unless the Township of Medford has filed an adopted Housing Element and Fair Share Plan with the Court or with a designated administrative entity of the State of New Jersey, has petitioned for a judgment of compliance or substantive certification, and has received approval of its development fee ordinance by the entity that will be reviewing the Housing Element and Fair Share Plan.

2. If the Township of Medford fails to renew its ability to impose and collect development fees prior to the expiration of its 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 Medford shall not impose a development fee on a development that receives preliminary or final site plan approval after the expiration of its judgment of compliance and repose, nor shall the Township of Medford retroactively impose a development fee on such a development. The Township of Medford shall not expend any development fees after the expiration of its judgment of compliance.

K. Repealer, severability and effective date.

1. Any and all ordinances and provisions thereof inconsistent with the provisions of this section shall be and are hereby repealed to the extent of such inconsistency.

2. If any section, paragraph, subdivision, clause or provision of this section shall be adjudged invalid, such adjudication shall apply only to the section, paragraph, subdivision, clause or provision and the remainder of this section shall be deemed valid and effective.

3. This section shall take effect immediately upon final passage and publication according to law.