The following terms, as used in this chapter, 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 which previously had primary jurisdiction
for the administration of housing obligations in accordance with sound
regional planning consideration in the state. Pursuant to the Executive
Reorganization Act of 1969, P.L. 1969, c. 203 (N.J.S.A. 52:14C-1 et
seq.), the governor abolished the Council and transferred all functions,
powers, and duties to the Commissioner of the Department of Community
Affairs, effective August 29, 2011. As such, any and all references
to COAH shall mean the Court.
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. 5:97-8.3.
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 §§ 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.
IMPROVEMENT
A development on a building or structure or unimproved land
that includes new construction, expansion of an existing building
or structure, increase in residential density, or change in use.
[Added 2-1-2023 by Ord.
No. B-531]
[Amended 2-1-2023 by Ord. No. B-531]
A. Imposed fees.
(1) 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 of the improvements for all new residential construction
on an unimproved lot or lots for residential development, provided
no increased density is permitted.
(2) Residential developers, except for developers of the types of development
specifically exempted below, shall also pay a fee equal to 1.5% of
the increase in equalized assessed value resulting from any expansions
to existing structures to be used for residential purposes. The fee
for a development including both interior renovation and expansion
shall be multiplied by the ratio of new construction expansion to
the total square footage of the completed development. (Example: a
2,000 square foot residential property is expanded by 1,000 square
feet. The expansion is 33% of the total property. Assuming a $1,000,000
increase in equalized assessed value including interior renovation
and expansion, the development fee is: $1,000,000 x 33% x 1.5% or
$4,950.)
(3) Development fees shall be imposed and collected when an existing
structure undergoes an increase in residential density or is demolished
and replaced. The development fee shall be calculated on the difference
between the equalized assessed value of the pre-existing improvement
and the equalized assessed value of the newly improved structure.
(4) When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5)
(known as a "d" variance) has been permitted, developers may 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.
[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 the specified
higher percentage up to 6% of the equalized assessed value for the
two additional units, provided zoning on the site has not changed
during the two-year period preceding the filing of such a variance
application.]
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B. Eligible exactions, ineligible exactions and exemptions for residential
development.
(1) Affordable housing developments, developments where the developer
is providing for the construction of affordable units either on site
or 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.
(2) 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, such as a change in use or increase in residential
density. Where a site plan approval does not apply, a zoning 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.
(3) 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.
(4) The 1.5% fee shall not apply to an increase in equalized assessed
value resulting exclusively from alterations, change in use within
existing footprint, renovations or repairs.
[Amended 2-1-2023 by Ord. No. B-531]
A. The official responsible for the issuance of a preliminary or final
site plan approval or a zoning permit shall notify the local Tax Assessor
of the issuance of the approval or permit for a development which
is subject to a development fee, and shall direct the developer to
complete Section A, and Section B if applicable, of the City of Hoboken's
development fee certification/exemption application.
B. Within 90 days of receipt of that application, the Municipal Tax
Assessor, based on the plans filed, shall provide an estimate of the
equalized assessed value of the development.
C. 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.
D. Within 30 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 of the development;
calculate the development fee; and thereafter notify the developer
of the amount of the fee.
E. Should the City of Hoboken fail to determine or notify the developer
of the amount of the development fee within 30 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 § 37 of P.L. 2008, c. 46 (N.J.S.A.
40:55D-8.6).
F. Fifty percent of the development fee shall be collected prior to
issuance of the building permit. The remaining portion shall be collected
prior to issuance of the certificate of occupancy. The developer shall
be responsible for paying the difference between the fee calculated
at the time of issuance of the building permit and that determined
at the time of issuance of the certificate of occupancy.
G. Appeal of development fees.
(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 City of Hoboken. 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 City of Hoboken.
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.