[Adopted 3-15-2017 by Ord. No. 2017-3[1]]
[1]
Editor’s Note: This ordinance also repealed former Art.
II, Exemption for Construction of Multiple Dwellings, adopted 5-21-2013
by Ord. No. 2013-10, as amended.
The Legislature of the State of New Jersey has determined that
various statutes authorized by Article VIII, Section 1, Paragraph
6 of the New Jersey Constitution permitting municipalities to grant
for periods of five years exemptions or abatements, or both, from
taxation in areas in need of rehabilitation have proven to be effective
in promoting construction and rehabilitation of residential and commercial
and industrial structures in areas threatened with economic and social
decline. In response, the Legislature adopted Chapter 441 of the Laws
of 1991 (N.J.S.A. 40A:21-1 et seq.) (the Act)[1] to consolidate and make more coherent the most useful
features of those statutes. The Borough of Wood-Ridge makes known
its intention to utilize the tax exemption provisions authorized by
Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution,
as enacted through the provisions of the Act, to authorize five-year
exemptions for the construction of dwellings and multiple dwellings.
[1]
Editor's Note: See N.J.S.A. 40A:21-16.
As used in this article the following terms shall have the meanings
indicated:
A portion or all of a municipality which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the Local Redevelopment and Housing Law, P.L. 1992, c.79 (N.J.S.A.
40A:12A-1 et seq.), a blighted area as determined pursuant to the
Blighted Areas Act, P.L. 1949, c.187 (N.J.S.A. 40:55-21.1 et seq.),[2] or which has been determined to be in need of rehabilitation
pursuant to P.L. 1975, c.104 (N.J.S.A. 4:4-3.72 et seq.), P.L. 1977,
c.12 (N.J.S.A. 54:4-3.95 et seq.), or P.L. 1979, c.233 (N.J.S.A. 54:4-3.121
et seq.).[3]
The officer of the Borough charged with the duty of assessing
real property for the purpose of general taxation.
The Borough of Wood-Ridge, in the County of Bergen, State
of New Jersey.
The legal counsel for the Borough.
The municipal council of the Borough.
The business administrator of the Borough.
The Chief Financial or Fiscal Officer of the Borough.
The Municipal Clerk of the Borough.
Substantially ready for the intended use for which a building
or structure is constructed as determined by the Assessor.
A property created or recorded as a condominium pursuant
to the "Condominium Act," P.L. 1969, c.2S7 (N.J.S.A. 46:8B-1 et seq.).
The provision of a new dwelling, a new multiple dwelling,
or the enlargement of the volume of an existing multiple dwelling
structure by more than 30%, but shall not mean the conversion of an
existing building or structure to another use.
A housing corporation or association, wherein the holder
of a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association; or to purchase a
unit of housing owned by the corporation or association.
The person appointed by the Mayor of the Borough to serve
as the development officer pursuant to this article.
A building or part of a building used, to be used or held
for use as a single-family home or residence, including accessory
buildings located on the same premises, together with the land upon
which such building or buildings are erected and which may be necessary
for a fair enjoyment thereof, but shall not mean any building or part
of a building, defined as a "multiple dwelling" pursuant to the Hotel
and Multiple Dwelling Law, P.L. 1967, c.76 (N.J.S.A. 55:13A-1 et seq.).
That portion of the Assessor's full and true value of
any construction not regarded as increasing the taxable value of a
property pursuant to the Act.
Ordinance No. 2013-10, adopted by the Borough Council on
May 21, 2013, which ordinance authorized the utilization of tax exemptions,
in accordance with the Act.
The property designated as Block 333, Lots 1.03 through 1.08
and 1.11 through 1.20 on the Tax Map of the Borough.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.).
A building or structure meeting the definition of multiple
dwelling set forth in the Hotel and Multiple Dwelling Law, P.L. 1967,
c.76 (N.J.S.A. 55:13A-1 et seq.), and means for the purpose of construction
the general common elements and common elements of a condominium,
a cooperative, or a horizontal property regime.
The construction of dwellings and multiple dwellings.
An agreement for exemption for projects and the payments
to be made in lieu of taxes as required pursuant to the terms of this
article.
The tax collector of the Borough.
June 10, 2023, the termination date of the exemption ordinance.
Newly constructed single-family dwellings located within the Fleet Redevelopment Area are eligible to receive a five-year exemption, as provided in § 479-12, upon meeting the following qualifications:
A.
The property owner must occupy the dwelling;
B.
All real estate taxes must be current;
C.
The applicant must provide a certificate of occupancy or any other
permit or approval required by the Borough; and
D.
The applicant must submit two proofs of owner-occupancy. Such proofs
can be a driver's license, utility bill, real estate tax bill
or car registration. Proofs submitted must be current and valid at
the time of submission.
An exemption shall be granted for a portion of the assessed value of the construction of new dwellings if they meet the criteria established in § 479-11 of this article. In determining the value of the real property, the Borough shall regard the following percentages of the Assessor's full and true value of the dwelling constructed as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction occurs is increased as a result:
A.
No exemption shall be granted pursuant to § 479-12 of this article except upon written application therefor filed with and approved by the Assessor. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of parties seeking exemptions from the governing body of the Borough. All applications pursuant to § 479-12 of this article shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the construction of the dwelling. Every such application for exemption which is filed within the time specified and prior to the termination date shall be approved and allowed by the Assessor provided that the application is consistent with the provisions of this article, as applicable, and provided that the construction for which the application is made qualifies as construction pursuant to the provisions of the Act and this article.
B.
The Assessor shall approve or deny applications for exemptions pursuant to § 479-12 of this article within 45 days of receipt of a timely and completed application. Incomplete applications shall be returned to the applicant with notice of any deficiencies and/or missing information or documentation. Any such application that is returned to the applicant for correction or the provision of further information must be resubmitted to the Assessor within 20 days of receipt by the applicant. Returned applications are deemed to be received by the applicant within three days of mailing. Any returned application that is not resubmitted to the Assessor within the required period shall be deemed denied.
The Borough Council may approve and enter into tax agreements for the exemption from taxation for multiple dwelling projects that are located in the area in need of rehabilitation pursuant to §§ 479-15, 479-16, and 479-17 upon meeting the following qualifications:
A.
All real estate taxes must be current and there may be no outstanding
penalties for nonpayment of taxes; and
B.
The applicant must provide a certificate of occupancy or any other
permit or approval required by the Borough; and
C.
The construction and the operation of the project must be in compliance
with any and all applicable federal, state and local health and safety
codes and regulations; and
D.
The applicant must have a fully executed redevelopment agreement
between the property owner and the Borough.
In addition to the application form provided by the Director
of the Division of Taxation, applications for tax exemptions for multiple
dwelling projects shall be submitted to the Assessor and shall include
the following:
A.
A general description of the project for which an exemption is sought;
B.
A legal description of all real estate necessary for the project;
C.
Plans, drawings and other documents to demonstrate the structure
and design of the project;
D.
A description of the number, classes and type of employees to be
employed at the project site within two years of completion of the
project;
E.
A statement of the reasons for seeking an exemption on the project,
and a description of the benefits to be realized by the applicant
if an exemption is granted;
F.
Estimates of the cost of constructing the project;
G.
A statement indicating which of the formulas the applicant proposes
to be used to calculate the payments in lieu of full property taxes,
as authorized by Section 10 of the Act (N.J.S.A. 40A:21-10);
H.
A statement showing the real property taxes currently being assessed
at the project site; estimated payments that would be made annually
by the applicant on the project during the period of the tax agreement,
and estimated tax payments that would be made by the applicant on
the project during the first full year following the termination of
the tax agreement;
I.
A description of the number and types of dwelling units to be provided,
a description of the common elements or general common elements, and
a statement of the proposed initial rentals or sales prices of the
dwelling units according to type and of any rental lease or resale
restrictions to apply to any dwelling units respecting low or moderate
income housing;
J.
A schedule of the estimated completion date of the project; and
K.
Such other pertinent information as may be required by the Borough.
Applications for tax agreements for exemption of multiple dwelling
projects shall be filed with the Assessor prior to commencement of
the project and shall be approved or denied by ordinance of the Borough
Council. Prior to consideration by the Borough Council for approval,
all applications shall be reviewed by the following Borough officials:
A.
Development review.
(1)
Upon receipt of an application, the Development Officer shall conduct
a complete review of the proposed project and/or subject property.
The review shall take into consideration the property and appropriateness
and adequacy of the description(s), plan(s) and estimate(s) submitted,
the degree to which the project and/or property complies with the
Borough's development goals as expressed in the Master Plan,
Zoning Ordinance,[1] redevelopment plans and rehabilitation plans, as applicable.
(2)
Upon completion of the review, the Development Officer shall submit
a recommendation for approval or disapproval of the application to
the Borough Attorney. The recommendation shall include any changes
to the project and/or subject property that may be deemed necessary
by the Development Officer, as well as any analysis performed or relied
upon.
B.
Financial review.
(1)
Upon receipt of an application, the Chief Financial Officer shall
conduct a financial review of the application including a cost and
benefit analysis of the proposed project subject to the application.
(2)
Upon completion of the review, the Chief Financial Officer shall
submit a recommendation for approval or disapproval of the application
to the Borough Attorney. The recommendation shall include any analysis
performed or relied upon by the Chief Financial Officer.
C.
Legal review.
(1)
Upon receipt of an application, the Borough Attorney or other designated
counsel shall conduct a review as to the form and legality of the
application. In addition, the Borough Attorney shall obtain written
certifications from Borough officials as necessary to substantiate
the information contained in an application.
(2)
The Borough Attorney shall make a determination as to the propriety
of an application. Applications shall be deemed proper in those cases
where they are presented in the proper form, satisfy the requirements
of this article and all other applicable statutes and ordinances,
and for which no delinquency has been reported regarding any payments
due to the Borough as certified by the Tax Collector or other municipal
officials.
(3)
Where an application is deemed to be complete and conforming pursuant
to the requirements of this article, the Borough Attorney shall prepare
an ordinance in the form necessary to authorize the exemption and
shall prepare the form of the tax agreement. All tax agreements shall
be in the form filed with the Clerk at the time of adoption of this
article. The ordinance shall be signed by the Borough Attorney as
to form and legality and submitted, together with the form of the
tax agreement, the full application, and the recommendation of the
Chief Financial Officer and the Development Officer, to the Business
Administrator for his/her consideration.
(4)
In those cases where an application is deemed improper, the Borough
Attorney shall prepare correspondence outlining those aspects of the
application found to be deficient and shall forward that correspondence,
together with the application and the recommendations of the Chief
Financial Officer and the Development Officer to the Business Administrator
for consideration.
D.
Business Administrator review.
(1)
Upon receipt of an application and the recommendation of the Borough
Attorney, the Business Administrator shall determine the action to
be taken in regard to the application. When the application has been
deemed proper by the Borough Attorney, the Business Administrator
shall determine whether to recommend the adoption of the authorizing
ordinance and its attachments by the Borough Council, or to recommend
the denial of the application as not being in the best interests of
the Borough. Where the application has been deemed improper by the
Borough Attorney, the Business Administrator shall determine whether
the deficiencies can be corrected, and if so, may direct the applicant
and/or the appropriate municipal official as to the actions required.
If the deficiencies cannot be corrected or if the application is deemed
not in the best interests of the Borough, the Business Administrator
may recommend the denial of the application.
(2)
In those cases where the Business Administrator affords the applicant the opportunity to correct certain deficiencies, the application may be reconsidered after submission of the corrected application to the Assessor, after which the process outlined in this § 479-16D shall be followed again.
(3)
In those cases where the Business Administrator has recommended the
denial of an application without condition and where such formal action
to deny an application has been taken by the Borough Council, the
application may only be reconsidered by reapplication to the Assessor,
which application shall be treated in its entirety as a new application.
E.
Form of tax agreement.
(1)
The tax agreement shall include the identification of the affected
property by the Tax Map designation and street address, the nature
and scope of the structure to be constructed thereon, the formula
for computing payments in lieu of taxes, the duration of the agreement
and the grounds for termination. The tax agreement shall require timely
payment of any and all municipal taxes, fees and charges arising from
or related to a property granted an exemption.
(2)
The tax agreement shall in all cases further provide that any change
made in the ownership of the project or which would materially change
the terms of the tax agreement shall be deemed a material breach of
the agreement, which shall be cause for termination of the tax agreement.
The tax agreement shall provide that the failure to make payments
in lieu of taxes as required or to comply with any provision, term
or condition of the agreement shall be grounds for the Borough to
terminate the tax agreement, and/or to exercise such other remedies
as may be provided by statute, this article or the tax agreement.
F.
Payment in lieu of taxes. All owners of projects subject to exemption
pursuant to the approval and execution of a tax agreement shall be
charged and obligated to make payments in lieu of full property taxes
of an annual amount computed by one of the formulas authorized by
Section 10 of the Act (N.J.S.A. 40A:21-10).
G.
Execution of tax agreement. Upon adoption of an ordinance by the
Borough Council authorizing the Borough to enter into a tax agreement,
the Clerk shall ensure that the tax agreement is circulated to the
appropriate persons or entities for execution. No tax agreement shall
be considered to be in force and effect unless and until it has been
signed by the applicant and the Mayor of the Borough, after which
it shall be dated and certified by the Clerk by her/his signature
and the affixing of the Borough seal.
H.
Distribution of executed agreements. Once a tax agreement has been
fully executed, the Clerk shall distribute executed copies thereof
to the applicant, the Assessor, the construction code official, the
Business Administrator and the Borough Attorney. The Clerk shall retain
one executed copy which shall be placed on permanent file within her/his
office and made available for examination pursuant to the Open Public
Records Act (N.J.S.A. 47:1A-1 et seq.).
A.
Duration of tax agreement; termination.
(1)
All tax agreements authorized pursuant to this article shall be in
effect for five full years next following the date of completion of
the project.
(2)
If the owner of a property that is subject to a tax agreement pursuant
to this article ceases to operate or disposes of the property without
prior approval of the Borough Council, or fails to meet the conditions
for qualifying for exemption, then the taxes which would have otherwise
been assessed and payable for each year during which the tax agreement
was in effect shall become due and payable as if no exemption had
been granted. In the event a property owner fails to meet the qualifications
and conditions for exemption, the Assessor, on behalf of the Borough,
shall provide notice of such act or omission to the property owner
and the Tax Collector. Within 15 days of the notice from the Assessor,
the Tax Collector shall provide notice to the property owner of the
amount of the real estate taxes that are due.
(3)
Where it is determined that a new owner of a project or property
will continue to use the project or property pursuant to the conditions
which qualified the project or property for exemption, no tax shall
be due, the exemption shall continue, and the tax agreement shall
remain in effect in accordance with its terms.
(4)
Upon the termination of a tax agreement, a project shall be subject
to all applicable real property taxes, as provided by general laws.
B.
Conformance with other laws. All projects subject to tax agreements
as provided herein shall be subject to all applicable federal, state
and local laws and regulations on pollution control, worker safety,
discrimination in employment, housing provision, zoning, planning
and building code requirements.
C.
Filing of tax agreement. Within 30 days after the execution of a
tax agreement, the Clerk shall file a copy with the Director of the
Division of Local Government Services within the New Jersey Department
of Community Affairs.
The effective date of an exemption granted pursuant to this
article shall relate back to, and take effect as of, the date of completion
of the construction of the project for which the exemption is granted,
and shall continue for five annual periods from that date. The grant
of the exemption or tax agreement shall be recorded and made a permanent
part of the official tax records of the Borough, which record shall
contain a notice of the termination date thereof.
The Assessor shall determine, on October 1 of the year following
the date of the completion of construction of the project, the true
taxable value thereof. Except as otherwise provided, the property
shall continue to be treated in the appropriate manner for each of
the four tax years subsequent to the original determination by the
Assessor and shall be prorated for the final tax year in which the
exemption expires.
No exemption shall be granted, or tax agreement entered into,
pursuant to the Act with respect to any property for which property
taxes are delinquent or remain unpaid, or for which penalties for
nonpayment of taxes are due.
The exemption of real property taxes provided by the Borough
pursuant to this article shall apply to property taxes levied for
municipal purposes, school purposes, county government purposes and
for the purposes of funding any other property tax exemptions.
The Borough shall include a notice in the mailing of the annual
property tax bills to each owner of the properties where exemptions
are authorized pursuant to this article, advising such property owners
of same before the end of the first year following adoption of this
article.
Any project granted an exemption pursuant to this article shall
be subject to an inspection by the Borough on an annual basis to ensure
that the project is in compliance with all applicable ordinances,
regulations and codes of the Borough. Any project which is determined
to be in violation of any ordinance, regulation or code governing
health and safety standards, shall be subject to penalties and fines,
as applicable, or any other remedial action permitted by state statute,
including termination of the tax agreement.
Nothing contained in this article shall be so construed as to
limit or deprive the Borough of any rights or privileges which are
now or in the future conferred on the Borough by state statute or
federal laws.
