As used herein the following terms shall have the following
meanings:
ACCESSORY APARTMENT
A self-contained residential dwelling unit with a kitchen,
sanitary facilities, sleeping quarters and a private entrance, which
is created within an existing home, or through the conversion of an
existing accessory structure on the same site, or by an addition to
an existing home or accessory building, or by the construction of
a new accessory structure on the same site.
ACT
The Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A.
52:27D-301 et seq.).
ADAPTABLE
Constructed in compliance with the technical design standards
of the Barrier Free Subcode, N.J.A.C. 5:23-7.
ADMINISTRATIVE AGENT
The entity responsible for the administration of affordable
units in accordance with this chapter, N.J.A.C. 5:93 and N.J.A.C.
5:80-26.1 et seq.
AFFIRMATIVE MARKETING
A regional marketing strategy designed to attract buyers
and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15.
AFFORDABILITY AVERAGE
The average percentage of median income at which restricted
units in an affordable housing development are affordable to low-
and moderate-income households.
AFFORDABLE
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.S.A. 52:27D-304; in the case of an ownership
unit, that the sales price for the unit conforms to the standards
set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented,
and, in the case of a rental unit, that the rent for the unit conforms
to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended
and supplemented.
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.
AFFORDABLE HOUSING PROGRAM(S)
Any mechanism in a municipal Fair Share Plan prepared or
implemented to address a municipality's fair share obligation.
AFFORDABLE UNIT
A housing unit proposed or created pursuant to the Act, credited
pursuant to N.J.A.C. 5:93-3, and/or funded through an affordable housing
trust fund.
AGE-RESTRICTED UNIT
A housing unit designed to meet the needs of, and exclusively
for, the residents of an age-restricted segment of the population
such that: 1) all the residents of the development where the unit
is situated are 62 years or older; or 2) at least 80% of the units
are occupied by one person that is 55 years or older; or 3) the development
has been designated by the Secretary of the U.S. Department of Housing
and Urban Development as "housing for older persons" as defined in
Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607.
AGENCY
The New Jersey Housing and Mortgage Finance Agency established
by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1 et seq.).
ASSISTED LIVING RESIDENCE
A facility licensed by the New Jersey Department of Health
and Senior Services to provide apartment-style housing and congregate
dining and to assure that assisted living services are available when
needed for four or more adult persons unrelated to the proprietor
and that offers units containing, at a minimum, one unfurnished room,
a private bathroom, a kitchenette and a lockable door on the unit
entrance.
CERTIFIED HOUSEHOLD
A household that has been certified by an administrative
agent as a low-income household or moderate-income household.
COAH
The Council on Affordable Housing, which is in, but not of,
the Department of Community Affairs of the State of New Jersey, that
was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301
et seq.).
DCA
The State of New Jersey Department of Community Affairs.
DEFICIENT HOUSING UNIT
A housing unit with health and safety code violations that
require the repair or replacement of a major system. A major system
includes weatherization, roofing, plumbing (including wells), heating,
electricity, sanitary plumbing (including septic systems), lead paint
abatement and/or load-bearing structural systems.
DEVELOPER
Any person, partnership, association, company or corporation
that is the legal or beneficial owner or owners of a lot or any land
proposed to be included in a proposed development including the holder
of an option to contract or purchase, or other person having an enforceable
proprietary interest in such land.
DEVELOPMENT
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any use or change in the use of any
building or other structure, or of any mining, excavation or landfill,
and any use or change in the use of any building or other structure,
or land or extension of use of land, for which permission may be required
pursuant to N.J.S.A. 40:55D-1 et seq.
DEVELOPMENT FEE
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:97-8.3.
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 N.J.S.A. 54:1-3a
through 54:1-35c.
FAIR SHARE PLAN
The plan that describes the mechanisms, strategies and the
funding sources, if any, by which the Township proposes to address
its affordable housing obligation as established in the Housing Element,
including the draft ordinances necessary to implement that plan, and
addresses the requirements of N.J.S.A. 52:27D-309 through 52:27D-314.
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.
HOUSING ELEMENT
The portion of the Township's Master Plan, required by the
Municipal Land Use Law (MLUL) N.J.S.A. 40:55D-28b(3) and the Act,
that includes the information required by N.J.A.C. 5:93-5.1(b) and
establishes the Township's fair share obligation.
INCLUSIONARY DEVELOPMENT
A development containing both affordable units and market
rate units. This term includes, but is not necessarily limited to,
new construction, the conversion of a nonresidential structure to
residential and the creation of new affordable units through the reconstruction
of a vacant residential structure.
LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 50% or less of the median household income.
LOW-INCOME UNIT
A restricted unit that is affordable to a low-income household.
MAJOR SYSTEM
The primary structural, mechanical, plumbing, electrical,
fire protection, or occupant service components of a building which
include, but are not limited to, weatherization, roofing, plumbing
(including wells), heating, electricity, sanitary plumbing (including
septic systems), lead paint abatement or load-bearing structural systems.
MARKET-RATE UNITS
Housing not restricted to low- and moderate-income households
that may sell or rent at any price.
MEDIAN INCOME
The median income by household size for the applicable county,
as adopted annually by COAH or a successor entity approved by the
Court.
MODERATE-INCOME HOUSEHOLD
A household with a total gross annual household income in
excess of 50% but less than 80% of the median household income.
NON-EXEMPT SALE
Any sale or transfer of ownership other than the transfer
of ownership between husband and wife; the transfer of ownership between
former spouses ordered as a result of a judicial decree of divorce
or judicial separation, but not including sales to third parties;
the transfer of ownership between family members as a result of inheritance;
the transfer of ownership through an executor's deed to a class A
beneficiary and the transfer of ownership by court order.
RANDOM SELECTION PROCESS
A process by which currently income-eligible households are
selected for placement in affordable housing units such that no preference
is given to one applicant over another except for purposes of matching
household income and size with an appropriately priced and sized affordable
unit (e.g., by lottery).
REGIONAL ASSET LIMIT
The maximum housing value in each housing region affordable
to a four-person household with an income at 80% of the regional median
as defined by COAH's adopted regional income limits published annually
by COAH, or other regional income limits that may be approved by the
Court.
REHABILITATION
The repair, renovation, alteration or reconstruction of any
building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C.
5:23-6.
RENT
The gross monthly cost of a rental unit to the tenant, including
the rent paid to the landlord, as well as an allowance for tenant-paid
utilities computed in accordance with allowances published by DCA
for its Section 8 program. In assisted living residences, rent does
not include charges for food and services.
RESTRICTED UNIT
A dwelling unit, whether a rental unit or ownership unit,
that is subject to the affordability controls of N.J.A.C. 5:80-26.1,
as may be amended and supplemented, but does not include a market-rate
unit financed under UHORP or MONI.
UHAC
The Uniform Housing Affordability Controls set forth in N.J.A.C.
5:80-26.1 et seq.
VERY-LOW-INCOME HOUSEHOLD
A household with a total gross annual household income equal
to 30% or less of the median household income.
WEATHERIZATION
Building insulation (for attic, exterior walls and crawl
space), siding to improve energy efficiency, replacement storm windows,
replacement storm doors, replacement windows and replacement doors,
and is considered a major system for rehabilitation.
The following requirements shall apply to all new or planned
developments that contain low- and moderate-income housing units.
A. Phasing. Final site plan or subdivision approval shall be contingent
upon the affordable housing development meeting the following phasing
schedule for low- and moderate-income units whether developed in a
single-phase development or in a multiphase development:
Maximum Percentage of Market Rate Units Completed
|
Minimum Percentage of Low- and Moderate-Income Units Completed
|
---|
25%
|
0%
|
25% + 1
|
10%
|
50%
|
50%
|
75%
|
75%
|
90%
|
100%
|
B. Design. In inclusionary developments, to the extent possible, low-
and moderate-income units shall be integrated with the market units.
C. Utilities and common elements. In inclusionary developments, affordable
units shall utilize the same type of heating source as the market
units within the development, and the occupants of the affordable
units shall have access to all of the same common elements and facilities
as the occupants of the market units within the development.
D. Low/moderate split and bedroom distribution of affordable housing
units.
(1) Affordable units in a development shall be divided equally between
low- and moderate-income units, except that where there is an odd
number of affordable housing units, the extra unit shall be a low-income
unit.
(2) In each affordable development, at least 50% of the restricted units
within each bedroom distribution shall be low-income units.
(3) At least 13% of all affordable rental units shall be very-low-income
units (affordable to households earning 30% or less of median income).
The very-low-income units shall be counted as part of the required
number of low-income units within the development.
(4) Affordable developments that are not age-restricted shall be structured
in conjunction with realistic market demands such that:
(a)
The combined number of efficiency and one-bedroom units shall
be no greater than 20% of the total low- and moderate-income units;
(b)
At least 30% of all low- and moderate-income units shall be
two-bedroom units;
(c)
At least 20% of all low- and moderate-income units shall be
three-bedroom units; and
(d)
The remaining units may be allocated among two- and three-bedroom
units at the discretion of the developer.
(5) Affordable developments that are age-restricted shall be structured
such that the number of bedrooms shall equal the number of age-restricted
low- and moderate-income units within the inclusionary development.
The standard may be met by having all one-bedroom units or by having
a two-bedroom unit for each efficiency unit.
E. Accessibility requirements.
(1) The first floor of all restricted townhouse dwelling units and all
restricted units in all other multistory buildings shall be subject
to the technical design standards of the Barrier Free Subcode, N.J.A.C.
5:23-7.
(2) All restricted townhouse dwelling units and all restricted units
in other multistory buildings in which a restricted dwelling unit
is attached to at least one other dwelling unit shall have the following
features:
(a)
An adaptable toilet and bathing facility on the first floor;
(b)
An adaptable kitchen on the first floor;
(c)
An interior accessible route of travel on the first floor;
(d)
An interior accessible route of travel shall not be required
between stories within an individual unit;
(e)
An adaptable room that can be used as a bedroom, with a door
or the casing for the installation of a door, on the first floor;
and
(f)
An accessible entranceway as set forth at P.L. 2005, c. 350
(N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C.
5:23-7, or evidence that the Township has collected funds from the
developer sufficient to make 10% of the adaptable entrances in the
development accessible:
[1]
Where a unit has been constructed with an adaptable entrance,
upon the request of a disabled person who is purchasing or will reside
in the dwelling unit, an accessible entrance shall be installed.
[2]
To this end, the builder of restricted units shall deposit funds
within the Township of Manchester's affordable housing trust fund
sufficient to install accessible entrances in 10% of the affordable
units that have been constructed with adaptable entrances.
[3]
The funds deposited under Subsection
E(2)(f)[2] herein shall be used by the Township for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance.
[4]
The developer of the restricted units shall submit a design
plan and cost estimate for the conversion from adaptable to accessible
entrances to the Construction Official of the Township of Manchester.
[5]
Once the Construction Official has determined that the design
plan to convert the unit entrances from adaptable to accessible meets
the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7, and
that the cost estimate of such conversion is reasonable, payment shall
be made to the Township of Manchester's affordable housing trust fund
in care of the Chief Financial Officer who shall ensure that the funds
are deposited into the affordable housing trust fund and appropriately
earmarked.
[6]
Full compliance with the foregoing provisions shall not be required
where an entity can demonstrate that it is impracticable to meet the
requirements on the site. Determinations of site impracticability
shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7.
F. Maximum rents and sales prices.
(1) In establishing rents and sale prices of affordable housing units,
the administrative agent shall follow the procedure set forth in UHAC,
utilizing the most recently published regional weighted average of
uncapped Section 8 income limits published by HUD and the calculation
procedures set forth in the consent order entered on December 16,
2016, by the Honorable Douglas K. Wolfson, JSC, In the Matter of the
Township of East Brunswick for a Judgment of Compliance of its Third
Round Housing Element and Fair Share Plan, Docket No. MID-L-0040013-15.
(2) The maximum rent for restricted rental units within each affordable
development shall be affordable to households earning no more than
60% of median income, and the average rent for restricted low- and
moderate-income units shall be affordable to households earning no
more than 52% of median income.
(3) The developers and/or municipal sponsors of restricted rental units
shall establish at least one rent for each bedroom type for both low-income
and moderate-income units.
(a)
At least 13% of all low- and moderate-income rental units shall
be affordable to households earning no more than 30% of median income.
(4) The maximum sales price of restricted ownership units within each
affordable development shall be affordable to households earning no
more than 70% of median income, and each affordable development must
achieve an affordability average of 55% for restricted ownership units;
in achieving this affordability average, moderate-income ownership
units must be available for at least three different prices for each
bedroom type, and low-income ownership units must be available for
at least two different prices for each bedroom type.
(5) In determining the initial sales prices and rents for compliance
with the affordability average requirements for restricted units other
than assisted living facilities, the following standards shall be
met:
(a)
A studio or efficiency unit shall be affordable to a one-person
household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household;
(c)
A two-bedroom unit shall be affordable to a three-person household;
(d)
A three-bedroom unit shall be affordable to a four-and-one-half-person
household; and
(e)
A four-bedroom unit shall be affordable to a six-person household.
(6) In determining the initial rents for compliance with the affordability
average requirements for restricted units in assisted living facilities,
the following standards shall be met:
(a)
A studio or efficiency unit shall be affordable to a one-person
household;
(b)
A one-bedroom unit shall be affordable to a one-and-one-half-person
household; and
(c)
A two-bedroom unit shall be affordable to a two-person household
or to two one-person households.
(7) The initial purchase price for all restricted ownership units shall
be calculated so that the monthly carrying cost of the unit, including
principal and interest (based on a mortgage loan equal to 95% of the
purchase price and the Federal Reserve H.15 rate of interest), taxes,
homeowner and private mortgage insurance and condominium or homeowner
association fees do not exceed 28% of the eligible monthly income
of the appropriate size household as determined under N.J.A.C. 5:80-26.4,
as may be amended and supplemented; provided, however, that the price
shall be subject to the affordability average requirement of N.J.A.C.
5:80-26.3, as may be amended and supplemented.
(8) The initial rent for a restricted rental unit shall be calculated
so as not to exceed 30% of the eligible monthly income of the appropriate
household size as determined under N.J.A.C. 5:80-26.4, as may be amended
and supplemented; provided, however, that the rent shall be subject
to the affordability average requirement of N.J.A.C. 5:80-26.3, as
may be amended and supplemented.
(9) The price of owner-occupied low- and moderate-income units may increase
annually based on the percentage increase in the regional median income
limit for each housing region. In no event shall the maximum resale
price established by the administrative agent be lower than the last
recorded purchase price.
(10)
The rent of low- and moderate-income units may be increased
annually based on the permitted increase in the Housing Consumer Price
Index for the Northeast Urban Area. This increase shall not exceed
9% in any one year. Rents for units constructed pursuant to low-income
housing tax credit regulations shall be indexed pursuant to the regulations
governing low-income housing tax credits.
(11)
Tenant-paid utilities that are included in the utility allowance
shall be so stated in the lease and shall be consistent with the utility
allowance approved by DCA for its Section 8 program.
[Added 6-8-2020 by Ord. No. 20-014]
All development approvals shall provide for affordable housing
opportunities.
A. Applicability and exemptions. These requirements shall apply to approvals
granted by the Planning Board or Zoning Board of Adjustment as follows:
(1) All approvals of use variances, site plans, or subdivisions, including extensions and substantial revisions, for residential development shall be made subject to mandatory provision of affordable housing except for classes of uses contained in Subsection
A(2) and
(3) below. A "substantial revision" to a development approval shall, for the purposes of these affordable housing regulations, be any revision which increases or decreases the number of residential units or amount of nonresidential floor space by more than 15%.
(2) Exempted from these provisions shall be approvals for the following classes of development, which occur on lands deemed unsuitable for inclusionary residential development: residential uses in accordance with Pinelands Commission special provisions for cultural housing as provided for in the Pinelands Comprehensive Management Plan (N.J.A.C. 7:50-5.32) and §
245-32 of this chapter, and lands designated PPA Pinelands Preservation Area; PFA-S Pinelands Forest Area - Sending; PFA-R Pinelands Forest Area - Receiving; and MI Military Installation, on the Zoning Map; and
(3) Exempted from these provisions shall be approvals for the following
classes of development which do not constitute a portion of the state
or housing region's tax ratable wealth:
(b)
Educational, cultural and outdoor recreational facilities;
(c)
Quasi-public uses, including churches, clubs, lodges and similar
uses;
(4) All final approvals not included in Subsection
A(1),
(2) or
(3) above shall provide for the payment of any applicable residential or nonresidential development fee required under §
245-99.
B. Mandatory provision of affordable housing. All development, other
than exempted development, shall provide for affordable housing through
actual construction, through an affordable housing development fee
or a combination of both.
(1) Any proposed development for five or more new residential units occurring
as a result of an increase in density from a use variance, change
in zoning or conditional use for residential development shall provide
that a percentage of the total units constructed shall be affordable
to low- and moderate-income households in accordance with the approved
Fair Share Plan of the Township.
(2) If a proposed development of five or more residential lots is not
included in the Fair Share Plan, the following percentages shall be
applied:
(b)
Single-family housing:
[1]
Five dwelling units or greater: 20%.
(c)
Where two or more affordable units are to be provided, not less
than 50% of the affordable units constructed shall be affordable to
low-income households.
(3) Proposed developments of less than five residential units shall not be required to provide affordable housing but are subject to the residential development fee set forth in §
245-99A(1)(a).
(4) Affordable housing units may be constructed on a site which is not
contiguous and may be incorporated with other development subject
to the applicable zoning district requirements.
(5) In lieu of actual construction, a payment in lieu of the construction
of affordable housing may be paid where approved by the Township Council
pursuant to inclusion in the Township's adopted Fair Share Plan as
approved by COAH or the courts.
[Amended 4-9-2007 by Ord.
No. 07-011; 9-8-2008 by Ord. No. 08-036; 11-10-2014 by Ord. No. 15-004; 4-27-2015 by Ord. No. 15-004]
Affordable housing development fees shall be paid by all developers
other than developers of exempt developments and affordable inclusionary
housing developments and shall consist of monies paid by an individual,
person, partnership, association, company or corporation for the improvement
of property as permitted in COAH's rules. Affordable housing development
fees collected shall be used for the sole purpose of providing low-
and moderate-income housing. In Holmdel Builder's Assn. 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, N.J.S.A. 52:27D-301 et seq., and the State Constitution
subject to the New Jersey Council on Affordable Housing Rules. The
purpose of these provisions is to establish standards for the collection,
maintenance and expenditure of development fees pursuant to COAH Rules.
This section shall be interpreted within the framework of the COAH
Rules on development fees.
A. Fee calculations. Fees shall be based on the equalized assessed value,
which shall be the value of a property determined by the Township
Tax Assessor through a process designed to ensure that all property
in the municipality is assessed at the same assessment ratio or ratios
required by law. Estimates at the time of building permit may be obtained
by the Township Tax Assessor utilizing estimates for construction
cost. Final equalized assessed value will be determined at project
completion by the Township Tax Assessor.
(1) Residential development fees.
(a)
For all residential development within the Township of Manchester,
developers shall pay a development fee of 1.5% of the equalized assessed
value of the residential development, provided no increase in density
is permitted. When an increase in density is permitted pursuant to
N.J.S.A. 40:55D-70d(5), known as a "d" variance, developers shall
be required to pay a development fee of 6% of the equalized assessed
value for each additional unit that may be realized. However, if the
zoning on a site has changed during the two-year period preceding
the filing of such a variance application, the base density for the
purposes of calculating the bonus development fee shall be the highest
density permitted by right during the two-year period preceding the
filing of the variance application.
(b)
Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the fees could equal 1.5%
of the equalized assessed value on the first two units; and 6% of
the equalized assessed value for the two additional units, provided
that zoning on the site has not changed during the two-year period
preceding the filing of such a variance application.
(2) Residential development fee exemptions.
(a)
The following development shall be exempt from residential development
fees:
[1]
Affordable housing developments;
[2]
Owner-occupied single-family dwelling units, whether attached
or detached, are exempt when newly constructed by the owner of the
lot for his own occupation, or when an existing structure is demolished
and replaced or is expanded;
[Amended 6-8-2020 by Ord. No. 20-014]
[3]
Mobile and manufactured homes in the MP and PMP Zones;
[4]
Developments where the developer is providing for the construction
of affordable units elsewhere in the Township;
[5]
Developments where the developer has made a payment in lieu
of on-site construction of affordable units.
(b)
Developments that received preliminary or final site plan approval
prior to the date of the first adoption of the Manchester Township
development fee requirements in Ordinance No. 94-235 on October 27,
1994, shall be exempt from development fees under this article, unless
the developer seeks a substantial change in the approval resulting
in an increase in the total number of residential dwelling units.
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 fee percentage shall be vested on the date that
the building permit is issued.
(c)
All residential dwellings destroyed due to fire, flood, or other
natural disaster and rebuilt by their owners shall be exempt from
paying a development fee.
(3) Nonresidential development fees. (NOTE: Pursuant to P.L. 2009, c.
90, and P.L. 2011, c. 122, the nonresidential statewide development
fee of 2.5% for nonresidential development was suspended for all nonresidential
projects that received preliminary or final site plan approval subsequent
to July 17, 2008, until July 1, 2013, provided that a permit for the
construction of the building has been issued prior to January 1, 2015.
As of July 1, 2013, the suspension of the Non-Residential Development
Fee Act fee of 2.5% of the equalized assessed value on developments
expired, and the nonresidential development fee of 2.5% seeking approval
subsequent to July 1, 2013, will be imposed. The fee is not collected
from nonresidential developments that received site plan approval
prior to that date, provided that the construction permit is issued
by January 1, 2015.)
(a)
For all nonresidential development within the Township of Manchester,
developers shall pay a fee equal to 2.5% of the equalized assessed
value of the nonresidential land and improvements, for all new nonresidential
construction on an unimproved lot or lots and for development resulting
from any additions to existing structures or other improvements to
be used for nonresidential purposes.
(b)
Nonresidential development fees shall be imposed and collected
when an existing structure is demolished and replaced. The development
fee of 2.5% shall be calculated on the difference between the equalized
assessed value of the preexisting land and improvement and the equalized
assessed value of the newly improved development including 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.
(c)
All developers of nonresidential development must complete Form
N-RDF prior to applying for a construction permit or requesting a
certificate of occupancy. A certificate of occupancy will not be issued
without proof of payment of a nonresidential development fee or proof
of exemption. Form N-RDF is available at: http://www.state.nj.us/dca/divisions/codes/forms/pdf_
forms/form_NRDF_%207_1_10.pdf.
(4) 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 development fee of 2.5%,
unless otherwise exempted below.
(b)
The fee of 2.5% shall not apply to an increase in equalized
assessed value resulting from alterations, change in use within an
existing footprint, reconstruction, renovations and repairs.
(c)
Nonresidential development shall be substantiated 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." Nonresidential development exempt from
the development fee shall include nonresidential development that
is an amenity made available to the public, including but not limited
to, recreational facilities, community centers, and senior centers,
which are developed in conjunction with or funded by a nonresidential
developer; and
(d)
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to P.L. 2008, c. 46 approved
July 17, 2008, (N.J.S.A. 52:27D-329.2) shall be subject to the 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 for occupancy of the nonresidential development,
whichever is later.
(e)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Township of Manchester as a lien against
the real property of the owner.
B. 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 construction 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 Form" 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
Township 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 Township 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 Township 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 Township Tax Assessor of
any and all requests for the scheduling of a final inspection on property
which is subject to a development fee.
(6) Within 10 business days of a request for the scheduling of a final
inspection, the Township Tax Assessor shall confirm or modify the
previously estimated equalized assessed value of the improvements
in the development; calculate the development fee; and thereafter
notify the developer of the amount of the fee.
(7) Should the Township of Manchester 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 N.J.S.A. 40:55D-8.6.
(8) Fifty percent of the total estimated 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 the issuance of the building permit and that
determined at the issuance of the certificate of occupancy.
C. Appeal of development fee procedures.
(1) 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 Manchester.
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.
(2) 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
Manchester. 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.
D. Manchester Township Affordable Housing Trust Fund.
(1) Establishment of trust fund. The Manchester Township Affordable Housing
Trust Fund was authorized by Ordinance No. 94-235 on October 27, 1994,
and formally established on March 27, 2002, as a separate, interest-bearing
affordable housing trust fund to be maintained by the Chief Financial
Officer of the Township of Manchester for the purpose of depositing
affordable housing development fees collected from residential and
nonresidential developers and from the sale of affordable housing
units with extinguished controls.
(2) General provisions.
(a)
The following funds shall be deposited in the Affordable Housing
Trust Fund and shall at all times be identifiable by source and amount
as follows:
[1]
Payments in lieu of on-site construction of affordable units;
[2]
Developer contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
[3]
Rental income from municipally operated units;
[4]
Repayments from affordable housing program loans;
[6]
Proceeds from the sale of affordable units; and
[7]
Any other funds collected in connection with the Manchester
Township affordable housing program.
(b)
The Mayor and Council, in the name of the trust fund, shall
have the right to apply for and receive grants from any source to
further the purposes of the fund.
(c)
Within seven days of a change to a different bank, the Township
of Manchester shall provide COAH with written authorization, in the
form of a three-party escrow agreement between the Township, the bank,
and COAH to direct the disbursement of the funds as provided for in
COAH Rules at N.J.A.C. 5:97-8.13(b).
(d)
All interest accrued in the Affordable Housing Trust Fund shall
only be used on eligible affordable housing activities approved by
the COAH.
(3) Use of funds.
(a)
The expenditure of all affordable housing funds shall conform
to a spending plan approved by COAH and, if applicable, by the court.
Funds deposited in the Manchester Township Affordable Housing Trust
Fund may be used for any activity approved as part of the spending
plan to address the Township's fair share obligation of affordable
housing and may be set up as a grant or revolving loan program. Such
activities may include, but are not limited to providing for affordable
housing through preservation or purchase of housing for the purpose
of maintaining or implementing affordability controls; rehabilitation
and new construction of affordable housing units and related costs;
accessory apartments for affordable households; market to affordable
housing units; regional affordable housing partnership programs; conversion
of existing nonresidential buildings to create new affordable housing
units; green affordable 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 and Spending Plan; and any other
activity as permitted pursuant to COAH rules at N.J.A.C. 5:97-8.7
through 8.9 and as otherwise specified in the approved spending plan.
(b)
Affordability assistance. At least 30% of all affordable housing
development fees collected and interest earned thereon shall be used
to provide affordability assistance to low- and moderate-income households
in affordable units included in the Township Housing and Fair Share
Plan. One-third of the affordability assistance portion of the affordable
housing development fees collected shall be used to provide affordability
assistance to those households earning 30% or less of the median income
of the housing region in which Manchester is located (Region 4: Ocean,
Monmouth and Mercer Counties).
[1]
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.
[2]
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.
[3]
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.
(c)
Manchester Township may contract with a private or public entity
to administer any part of its Housing Element and Fair Share Plan,
including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:96-18.
(d)
Administrative expenditures. No more than 20% of all revenues
collected from development fees, may be expended on administration,
including, but not limited to, salaries and benefits for municipal
employees or consultant fees necessary to develop or implement a new
construction program, a Housing Element and Fair Share Plan, and/or
an affirmative marketing program. In the case of a rehabilitation
program, no more than 20% of the revenues collected from development
fees shall be expended for such administrative expenses. Administrative
funds may be used for income qualification of households, monitoring
the turnover of sale and rental units, and compliance with COAH's
monitoring requirements. Legal or other fees related to litigation
opposing affordable housing sites or objecting to the Council's regulations
and/or action are not eligible uses of the Manchester Township Affordable
Housing Trust Fund.
(4) Monitoring requirements. Manchester Township shall complete and return
to COAH all monitoring forms included in monitoring requirements related
to the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
funds from the sale of units with extinguished controls, barrier-free
escrow funds, rental income, repayments from affordable housing program
loans, and any other funds collected in connection with the Manchester
Township Affordable Housing Program, as well as to the expenditure
of revenues and implementation of the plan approved by the court.
All monitoring reports shall be completed on forms designed by COAH.
(5) Collection coterminous with certification. The ability for the Township
of Manchester to impose, collect and expend development fees shall
expire with its substantive certification or judgment of repose unless
the Township of Manchester has filed an adopted Housing Element and
Fair Share Plan with COAH or the court, has petitioned for substantive
certification or judgment of repose, and has received COAH approval
of its affordable housing development fee ordinance. If the Township
of Manchester fails to renew its ability to impose and collect development
fees prior to the expiration of substantive certification, it may
be subject to forfeiture of any or all funds remaining within its
Affordable Housing Trust Fund. Any funds so forfeited shall be deposited
into the New Jersey Affordable Housing Trust Fund established pursuant
to N.J.S.A. 52:27D-320. The Township of Manchester shall not impose
a residential development fee on a development that receives preliminary
or final site plan approval after the expiration of its substantive
certification or judgment of compliance, nor shall the Township of
Manchester retroactively impose a development fee on such a development.
The Township of Manchester shall not expend development fees after
the expiration of its substantive certification or judgment of repose.
E. The Township of Manchester may contract with a private or public
entity to administer any part of its Housing Element and Fair Share
Plan, including the requirement for affordability assistance, in accordance
with COAH Rules at N.J.A.C. 5:96-18.