[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.
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.
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.
The interest bearing account in which all development fees
will be deposited pursuant to N.J.A.C. 5:93-8.15.
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.
A judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
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.
