Borough of Avon-by-the-Sea, NJ
Monmouth County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Commissioners of the Borough of Avon-by-the-Sea 6-15-98 by Ord. No. 10-1998. Amendments noted where applicable.]
The purpose of this chapter is to establish standards for the collection, maintenance and expenditure of development fees in accordance with the Supreme Court decision in Holmdel Builder's Ass'n v. Holmdel Township, 121 NJ 550 (1990) and pursuant to regulations adopted by the New Jersey Council on Affordable Housing (COAH). Fees collected pursuant to this chapter shall be used for the sole purpose of providing low and moderate income housing.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in N.J.A.C. 5:93-8.
EQUALIZED ASSESSED VALUE
The value of a property determined by the Municipal 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 tax assessor utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the Municipal Tax Assessor.
HOUSING TRUST FUND
The interest bearing account in which all development fees will be deposited pursuant to N.J.A.C. 5:93-8.15.
INCLUSIONARY DEVELOPMENT
A development containing low and moderate income units. This term includes, but is not necessarily limited to, new construction, the conversion of a nonresidential structure to a residential structure and the creation of new low and moderate income units through gut rehabilitation of a vacant residential structure.
JUDGMENT OF REPOSE
A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.
A. 
Unless otherwise excluded by Section 115-6 of this chapter, all residential and nonresidential development shall be assessed a development fee, as a condition for securing preliminary subdivision or site plan approval.
B. 
Unless otherwise excluded by Section 115-6 of this chapter, construction activity that does not require subdivision or site plan approval shall be assessed a development fee as a condition for securing a building permit.
A. 
Development fees for residential development shall be one-half of one percent (0.005) of the equalized assessed value of the development.
B. 
Developers of sites zoned for inclusionary development may pay a fee of twenty-five thousand dollars ($25,000) in lieu of building a low or moderate income housing unit. The ability of a developer to make such an in lieu payment is subject to the approval of the Borough and either COAH or a court with jurisdiction to review changes in the Borough's housing element and fair share plan. In addition, where developers are permitted by the Borough to replace low and moderate income housing units with market housing units, the developer shall pay a fee equal to six percent (6%) of the equalized assessed value of the additional market units that replace the low and moderate income housing units. For example, if a developer is able to pay a fee in lieu of building a low or moderate income unit and is able to build an extra market unit to replace the low or moderate income unit, the developer shall be responsible for a fee equal to twenty-five thousand dollars ($25,000) plus six percent (6%) of the equalized assessed value of the additional market unit.
C. 
Fees exceeding those permitted in this section may be collected where an agreement is entered into with the developer which offers a financial incentive for paying higher fees. All agreements are subject to approval by the court or COAH (whichever has jurisdiction).
A. 
Development fees shall be one percent (1%) of the equalized assessed value for nonresidential development.
B. 
Fees exceeding those permitted in this section may be collected where there is an agreement with the developer that offers a financial incentive for paying higher fees. Such agreements may include, but are not limited to: design waivers; tax abatement, increased commercial/ industrial square footage, increased commercial/ industrial lot coverage and/or increased commercial/ industrial impervious coverage in return for an increased fee. The fee negotiated shall bear a reasonable relationship to the additional commercial/ industrial consideration to be received. All agreements are subject to approval by the court or COAH (whichever has jurisdiction).
A. 
Inclusionary developments shall be exempt from paying development fees except when a developer elects to pay a fee in lieu of building low and moderate income housing units, as provided for in Section 115-4B of this chapter.
B. 
Developers that expand an existing nonresidential structure shall pay a development fee as required in Section 115-5 of this chapter. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.
C. 
Improvements and expansions to existing residential structures shall be exempt from paying a development fee.
D. 
Developers that have received preliminary or final approval prior to the effective date of this chapter shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.
E. 
Developers of churches, synagogues, public nonprofit uses or hospitals shall be exempt from paying a development fee.
A. 
Developers shall pay fifty percent (50%) of the calculated development fee at the issuance of building permits. The development fee shall be estimated by the Tax Assessor prior to the issuance of building permits.
B. 
Developers shall pay the remaining fee upon the issuance of certificates of occupancy. Upon issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at certificate of occupancy and the amount paid at building permit.
C. 
Development fees that are challenged by a developer shall be placed in an interest bearing account. 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.
A. 
There is hereby created an interest bearing housing trust fund in The Bank of New York, PNC Bank or any other bank at the discretion of the Chief Financial Officer for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid pursuant to this section shall be deposited in this fund. No money shall be expended from the housing trust fund unless the expenditure conforms to the municipality's spending plan approved by the court or COAH (whichever has jurisdiction).
B. 
If the court or COAH (whichever has jurisdiction) determines that the Borough is not in conformance with COAH's rules on development fees, the court or COAH is authorized to direct the manner in which all development fees collected pursuant to this chapter shall be expended. Such authorization is pursuant to: this chapter; COAH's rules on development fees; and the written authorization from the governing body to The Bank of New York, PNC Bank or any other bank at the discretion of the Chief Financial Officer.
A. 
Money deposited in a housing trust fund may be used for any activity approved by the court or COAH (whichever has jurisdiction) for addressing the Borough's low and moderate income housing obligation. Such activities may include, but are not necessarily limited to: housing rehabilitation; new construction; regional contribution agreements; the purchase of land for low and moderate income housing; extensions and/or improvements of roads and infrastructure to low and moderate income housing sites; assistance designed to render units to be more affordable to low and moderate income people; and administrative costs necessary to implement the Borough's housing element. The expenditure of all money shall conform to the spending plan approved by the court or COAH (whichever has jurisdiction).
B. 
At least thirty percent (30%) of the revenues collected, not targeted for a regional contribution agreement, rehabilitation program or a municipal construction project, shall be devoted to render units more affordable. Examples of such activities include, but are not limited to: down payment assistance; low interest loans; and rental assistance.
C. 
No more than twenty percent (20%) of the revenues shall be expended on administrative costs necessary to develop, revise or implement the housing element. Examples of eligible administrative activities include: personnel; consultant services; space costs; consumable supplies; and rental or purchase of equipment.
D. 
Development fees shall not be used to reimburse the Borough for municipal expenditures that preceded its judgment of repose.
This chapter permitting the collection of development fees shall expire as a result of any of the following:
A. 
An action of the court with jurisdiction or COAH's dismissal or denial of a petition for substantive certification.
B. 
An action by the court with jurisdiction or COAH's revocation of either substantive certification or its certification of this chapter.
C. 
The expiration of the time defined by a judgment of repose or substantive certification unless the Borough has filed an adopted housing element with COAH; petitioned for substantive certification; and received COAH's approval of its development fee ordinance.