[Ord. No. 52-21 § 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, 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. This
chapter establishes standards for the collection, maintenance, and
expenditure of development fees by the City of Linden pursuant to
COAH's rules. Fees collected pursuant to this chapter shall be
used for the sole purpose of providing low- and moderate-income housing.
This chapter shall be interpreted within the framework of COAH's
rules on development fees.
[Ord. No. 52-21 § 1]
The City of Linden shall not spend development fees until COAH
has approved a plan for spending such fees and the City of Linden
has received third round substantive certification from COAH or a
judgment of compliance.
[Ord. No. 52-21 § 1]
The following terms, as used in this chapter, shall have the
following meanings:
Shall mean a development included in the Housing Element
and Fair Share Plan, and includes, but is not limited to, an inclusionary
development, a City construction project or a one hundred (100%) percent
affordable development.
Shall mean the New Jersey Council on Affordable Housing.
Shall mean funds paid by an individual, person, partnership,
association, company or corporation for the improvement of property
as permitted in COAH's rules.
Shall mean the value of a property determined by the City
Tax Assessor through a process designed to ensure that all property
in the City is assessed at the same assessment ratio or ratios required
by law. Estimates at the time of issuance of a building permit may
be obtained utilizing estimates for construction cost. Final equalized
assessed value shall be determined at project completion by the City
Tax Assessor.
[Ord. No. 52-21 § 1]
a.
Within any zone districts, residential developers shall pay a fee
of one (1%) percent 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 "d" variance) has been permitted, developers shall be
required to pay a development fee of six (6%) percent 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.
[Ord. No. 52-21 § 1]
a.
Within all zoning district(s), nonresidential developers shall pay
a fee of two (2%) percent of the equalized assessed value for nonresidential
development.
b.
If an increase in floor area ratio is approved pursuant to N.J.S.A.
40:55D- 70d(4), then the additional floor area realized above what
is permitted by right under the existing zoning shall incur a bonus
development fee of six (6%) percent of the equalized assessed value
for non-residential development. However, if the zoning on a site
has changed during the two-year period preceding the filing of such
a variance application, the base floor area for the purposes of calculating
the bonus development fee shall be the highest floor area permitted
by right during the two-year period preceding the filing of the variance
application.
[Ord. No. 52-21 § 1]
a.
Affordable housing developments shall be exempt from development
fees. All other forms of new construction shall be subject to development
fees unless exempted below.
b.
Developments that have received preliminary or final approval prior
to the adoption of the City of Linden Development Fee Ordinance shall
be exempt from development fees unless the developer seeks a substantial
change in the approval.
c.
Development fees shall be imposed and collected when an existing
structure is expanded or undergoes a change to a more intense use.
The development fee shall be calculated on the increase in the equalized
assessed value of the improved structure.
d.
The City exempts the following types of development from development
fees:
1.
Nonprofit organizations which have received tax exempt status pursuant
to Section 501(c) 3 of the Internal Revenue Code, providing evidence
of that status is submitted to the City Clerk and City Tax Assessor
together with a certification that services of the organization are
provided at reduced rates to those who establish an inability to pay
such charges.
2.
Federal, State, County, and local governments.
3.
Persons or entity seeking a construction permit for a structure,
which shall be ancillary to and used in connection with a farm.
4.
Person or entity seeking a construction permit to add to or remodel
a residential structure provided the equalized assessed value of the
improvement is less than the equalized assessed value of the original
structure and further provided that no new dwelling units are created.
5.
Person or entity seeking a construction permit to renovate, expand,
or alter an existing single family dwelling or an existing detached
two-family dwelling provided no new dwelling units are created.
[Ord. No. 52-21 § 1]
Fifty (50%) 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.
[Ord. No. 52-21 § 1]
Imposed and collected development fees that are challenged shall
be placed in an interest bearing escrow account by the City of Linden.
If all or a portion of the contested fees are returned to the developer,
the accrued interest on the returned amount shall also be returned.
[Ord. No. 52-21 § 1]
a.
There is hereby created a separate, interest-bearing housing trust
fund for the purpose of depositing development fees collected from
residential and non-residential developers and proceeds from the sale
of units with extinguished controls. All development fees paid by
developers pursuant to this ordinance shall be deposited into this
fund.
b.
Within seven (7) days from the opening of the trust fund account,
the City of Linden shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the City, the
bank, and COAH to permit COAH to direct the disbursement of the funds
as provided for in N.J.A.C. 5:94-6.16(b).
c.
No funds shall be expended from the affordable housing trust fund
unless the expenditure conforms to a spending plan approved by COAH.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH.
[Ord. No. 52-21 § 1]
a.
Funds deposited in the housing trust fund may be used for any activity
approved by COAH to address the City fair share. Such activities include,
but are not limited to: rehabilitation, new construction, RCAs subject
to the provisions of N.J.A.C. 5:94-4.4(d), ECHO housing, purchase
of land for affordable housing, improvement of land to be used for
affordable housing, purchase of housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, or administration necessary
for implementation of the Housing Element and Fair Share Plan. The
expenditure of all funds shall conform to a spending plan approved
by COAH.
b.
Funds shall not be expended to reimburse the City of Linden for past
housing activities.
c.
After subtracting development fees collected to finance an RCA, a
rehabilitation program or a new construction project that are necessary
to address the City of Linden affordable housing obligation, at least
thirty (30%) percent of the balance remaining shall be used to provide
affordability assistance to low- and moderate-income households in
affordable units included in the City Fair Share Plan. One-third (1/3)
of the affordability assistance portion of development fees collected
shall be used to provide affordability assistance to those households
earning thirty (30%) percent or less of median income by region.
1.
Affordability assistance programs may include down payment assistance,
security deposit assistance, low interest loans, and rental assistance.
2.
Affordability assistance to households earning thirty (30%) percent
or less of median income may include buying down the cost of low or
moderate income units in the third round City Fair Share Plan to make
them affordable to households earning thirty (30%) percent or less
of median income. The use of development fees in this manner shall
entitle the City of Linden to bonus credits pursuant to N.J.A.C. 5:94-4.22.
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.
d.
The City of Linden 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.
5:94-7.
e.
No more than twenty (20%) percent of the revenues collected from
development fees each year, exclusive of the fees used to fund an
RCA, shall be expended on administration, including, but not limited
to, salaries and benefits for City 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 twenty (20%) percent
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. Development fee administrative costs are calculated
and may be expended at the end of each year or upon receipt of the
fees.
[Ord. No. 52-21 § 1]
The City of Linden shall complete and return to COAH all monitoring
forms included in the annual monitoring report related to the collection
of development fees from residential and nonresidential developers,
payments in lieu of constructing affordable units on site, and funds
from the sale of units with extinguished controls, and the expenditure
of revenues and implementation of the plan certified by COAH. All
monitoring reports shall be completed on forms designed by COAH.
[Ord. No. 52-21 § 1]
The ability for the City of Linden to impose, collect and expend
development fees shall expire with its substantive certification unless
the City of Linden has filed an adopted Housing Element and Fair Share
Plan with COAH, has petitioned for substantive certification, and
has received COAH's approval of its Development Fee Ordinance.
If the City of Linden fails to renew its ability to impose and collect
development fees prior to the expiration of substantive certification,
it may resume the imposition and collection of development fees only
by complying with the requirements of N.J.A.C. 5:94-6. The City of
Linden shall not impose a development fee on a development that receives
preliminary or final approval after the expiration of its substantive
certification, nor shall the City of Linden retroactively impose a
development fee on such a development. The City of Linden shall not
expend development fees after the expiration of its substantive certification.
