[Amended 6-2-2025 by Ord. No. 2764]
The provisions of this Article are applicable to all development in the Borough of Somerville, except as may be specifically exempted by this chapter, as follows:
A.
No land or premises may be used and no building or structure may be erected, raised, moved, extended, enlarged, altered or used for any purpose other than a purpose permitted by this chapter for the zone district in which the land, premises, building or structure is located and except in compliance with all other applicable regulations of this ordinance.
B.
The control and regulation of the uses of buildings and structures by this Article shall apply equally to the nature and extent of the uses of the lot or lots upon which they are erected.
C.
Applicability to subdivisions. Whenever a new lot is formed from a part of any other lot or lots, the assembly or separation shall be effected in such a manner as not to impair any of the requirements of this Article.
D.
Applicability to site plans. All site plans submitted to the Planning Board or the Zoning Board of Adjustment shall be required to conform to the provisions of this Article.
E.
Interpretation, appeals and variances. Interpretations of this article and relief from the decisions of any administrative officer involving the provisions of this Article may be appealed in accordance with the procedures set forth in Article VII, Appeals; provided that a developer may file an application for an interpretation or a variance without prior application to an administrative officer, in accordance with the procedures set forth in Article VII.
F.
Violations. The use or occupancy of land, buildings or structures prior to obtaining of a zoning permit or sign permit as the case may be, when one is required shall be a direct violation of this chapter and shall subject the violator or violators to the penalties hereinafter prescribed in Article VI.
G.
Zoning and Affordable Housing Development Fee and Trust Fund.
(1)
Purpose.
(a)
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 (the Act), N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject to the now abolished Council on Affordable Housing's (COAH's) rule adoptions.
(b)
Pursuant to P.L.2008, c.46 (N.J.S.A. 52:27D-329.1 et al.) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 8.7), municipalities with an approved spending plan may retain fees collected from non-residential development.
(c)
This subsection establishes standards for the collection, maintenance, and expenditure of development fees pursuant to the Department's regulations and in accordance with P.L.2008, c.46, Sections 8 and 32-38. Fees collected pursuant to this subsection shall be used for the sole purpose of providing low- and moderate-income housing. This subsection shall be interpreted within the framework of the rules on development fees, codified at N.J.A.C. 5:97-8, as well as any applicable regulations adopted by the New Jersey Department of Community Affairs (DCA), which, pursuant to P.L. 2024, c.2, now holds rulemaking authority regarding the collection of development fees.
(2)
Definitions.
(a) AFFORDABLE HOUSING DEVELOPMENT COAH or THE COUNCIL COMPLIANCE CERTIFICATION DEVELOPER DEVELOPMENT FEE EQUALIZED ASSESSED VALUE GREEN BUILDING STRATEGIES NJDCA
The following terms, as used in this subsection, shall have the following meanings:
Means 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.
Means the New Jersey Council on Affordable Housing established under the Fair Housing Act. Pursuant to P.L. 2024, c. 2, which amended the New Jersey Fair Housing Act, P.L. 1985, c. 222, N.J.S.A. 52:27D-301, et seq., COAH has been abolished.
Means the certification obtained by a municipality pursuant to section 3 of P.L.2024, c. 2 (N.J.S.A. 52:27D-304.1), that protects the municipality from exclusionary zoning litigation during the current round of present and prospective need and through July 1 of the year the next round begins, which is also known as a "judgment of compliance" or "judgment of repose." The term "compliance certification" shall include a judgment of repose granted in an action filed pursuant to section 13 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-313)
Means 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.
Means money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3.
Means 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 sections 1, 5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through N.J.S.A. 54:1-35c).
Means 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.
Means New Jersey Department of Community Affairs, which, pursuant to P.L. 2024, c. 2, exercises authority relating to rulemaking on the collection of residential and non-residential development fees is appropriately delegated to the NJDCA.
(3)
Residential development fees.
(a)
Imposed fees.
[1]
Within the Borough of Somerville, residential developers, except for developers of the types of development specifically exempted below, shall pay a fee of 1.5% of the increase in equalized assessed value attributable to residential development provided no increased density is permitted.
[2]
When an increase in residential density is permitted through a variance pursuant to N.J.S.A. 40:55D-70d(5) (known as a "d" variance) or a rezoning, redevelopment plan, or redevelopment plan amendment, developers shall be required to pay a development fee of 5% of the equalized assessed value for each additional unit in excess of that normally permitted by zoning, except that this provision shall not be applicable to a development that will include a set-aside of affordable housing units. 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 property that was zoned for two units, the fee would equal 1.5% of the equalized assessed value on the first two units; and the specified higher percentage of 5% of the equalized assessed value for the two additional units, providing zoning on the site has not changed during the two-year period preceding the application being deemed complete.
[3]
Eligible exactions, ineligible exactions and exemptions for residential development.
[a]
Developments incorporating low- and moderate-income housing shall be exempt from paying development fees, provided that the minimum number of affordable units required for development is completed in accordance with this chapter.
[b]
Developments where the developer has made a payment in lieu of on-site construction of affordable units, in accordance with all applicable municipal requirements, shall be exempt from development fees.
[c]
Developments that have received preliminary or final site plan approval prior to the adoption of this municipal development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval. 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 development fee percentage shall be vested on the date that the building permit is issued.
[d]
Owner-occupied residential structures demolished, in whole or part, and replaced as a result of a fire, flood, or natural disaster shall be exempt from paying a development fee.
[e]
Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use requiring the issuance of a temporary certificate of occupancy or certificate of occupancy (for example, when a single-family home is converted to a two-family home or a single-family home is converted to an apartment building), is demolished and replaced with a more intense use, or is expanded, if the expansion is not otherwise exempt from the development fee requirement. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.
[f]
Expansions of one-family and two-family properties and minor improvements such as the installation of fences, air conditioning unit, decks, patios, landscaping, pools and accessory buildings, are exempt from development fees.
[g]
Development fees shall be imposed and collected when a certificate of occupancy is issued for a new residential unit on a newly created lot that is the result of a subdivision. The development fee shall be calculated on the equalized assessed value of the land and improvements.
(4)
Non-residential development fees.
(a)
Imposed fees.
[1]
Within all zoning districts, non-residential developers, except for developers of the types of development specifically exempted, shall pay a fee equal to 2.5% of the equalized assessed value of the land and improvements, for all new non-residential construction on an unimproved lot or lots.
[2]
Non-residential developers, except for developers of the types of development specifically exempted, shall also pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures to be used for non-residential purposes.
[3]
Development fees shall be imposed and collected when an existing structure is demolished in whole or in part and replaced. The development fee of 2.5% shall be calculated on the difference between the equalized assessed value of the pre-existing land and improvement and the equalized assessed value of the newly improved structure, i.e., land and improvement, at the time final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the non-residential development fee shall be zero.
(b)
Eligible exactions, ineligible exactions and exemptions for non-residential development.
[1]
The non-residential portion of a mixed-use inclusionary or market rate development shall be subject to the 2.5% development fee, unless otherwise exempted below.
[2]
The 2.5% fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs where there is no increase in square footage.
[3]
Non-residential developments shall be exempt from the payment of non-residential development fees in accordance with the exemptions set forth in Section 35 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.4), as amended by P.L.2024, c. 2. Any exemption claimed by a developer shall be substantiated by that developer. These exemptions include the following, which are derived from those set forth in Section 35 of P.L.2024, c. 2 (N.J.S.A. 40:55D-8.4), as amended:
[a]
Property used for educational purposes, which is tax-exempt pursuant to N.J.S.A. 54:4-3.6, provided that the property continues to maintain its tax exempt status under that statute for a period of at least three years from the date of issuance of the certificate of occupancy.
[b]
Churches, synagogues, mosques, and other houses of worship, provided that the property continues to maintain its tax exempt status under that statute for a period of at least three years from the date of issuance of the certificate of occupancy.
[c]
Non-profit hospital relocation or improvements or nursing facilities.
[d]
Transit hub.
[e]
Non-residential development which is an amenity to be made available to the public, including recreational facilities, community centers, and senior centers.
[f]
Federal, state and government buildings.
[g]
Parking lots and parking structures.
[h]
Projects where the majority of the project is located within 1/2 mile radius of platform area for a light rail system.
[i]
Projects determined by the New Jersey Transit Corporation to be consistent with a transit village plan developed by a transit village designated by the Department of Transportation.
[j]
A developer of a non-residential development exempted from the non-residential development fee pursuant to P.L.2008, c.46 shall be subject to it at such time the basis for the exemption no longer applies, and shall make the payment of the non-residential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy of the non-residential development, whichever is later.
[k]
If a property which was exempted from the collection of a non-residential 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 non-residential development fees under these circumstances may be enforceable by the Borough of Somerville as a lien against the real property of the owner.
(5)
Collection procedures.
(a)
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 building permit by forwarding a copy of the approving resolution authorizing the development.
(b)
For non-residential developments only, the developer shall also be provided with a copy of Form N-RDF "State of New Jersey Non-Residential Development Certification/Exemption" to be completed as per the instructions provided. The developer of a non-residential development shall complete Form N-RDF as per the instructions provided. The construction official shall verify the information submitted by the non-residential developer as per the instructions provided in the Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided in Form N-RDF.
(c)
The construction official responsible for the issuance of a building permit shall notify the local tax assessor of the issuance of the first building permit for a development, which is subject to a development fee.
(d)
Within 90 days of receipt of that notice, the municipal tax assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development.
(e)
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.
(f)
Within 10 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.
(g)
Should the Borough of Somerville 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 subsection b. of section 37 of P.L.2008, c. 46 (N.J.S.A. 40:55D-8.6), as well as any applicable regulations adopted by the New Jersey Department of Community Affairs (DCA).
(h)
50% 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.
(i)
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 Borough of Somerville. 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., 90 days after the date of such determination. Interest earned on the amounts escrowed shall be credited to the prevailing party.
[2]
A developer may challenge non-residential 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 Borough of Somerville. Appeals from a determination of the Director may be made to the tax court in accordance with the provisions of the State Tax Uniform Procedures Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on the amounts escrowed shall be credited to the prevailing party.
(j)
The payment of non-residential development fees shall be made prior to the issuance of a certificate of occupancy for such development. A final certificate of occupancy shall not be issued for any non-residential development until such time as the fee imposed has been paid by the developer.
(k)
Non-residential construction which is connected with the relocation of the facilities of a for-profit hospital shall be subject to the fee authorized herein to the extent of the increase in equalized assessed valuation in accordance with the regulations promulgated by the Director of Division of Taxation, Department of the Treasury.
(l)
No affordable housing obligation shall be imposed concerning a mixed-use development that would result in an affordable housing obligation greater than would have been imposed if the residential portion of the mixed-use development had been developed independently of the non-residential portion of the mixed-use development.
(6)
Affordable Housing Trust Fund.
(a)
There is hereby created a separate, interest-bearing housing trust fund to be maintained by the Chief Financial Officer for the purpose of depositing development fees collected from the residential and non-residential developers and proceeds from the sale of units with extinguished controls.
(b)
The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identified by source and amount:
[1]
Payments in lieu of on-site construction of affordable units. The construction of the affordable units shall be performed within the Borough of Somerville.
[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 affordable units.
[4]
Repayments from affordable housing program loans.
[5]
Recaptured funds.
[6]
Proceeds from the sale of affordable units.
[7]
Any other funds collected in connection with the Borough of Somerville affordable housing program.
(7)
Use of funds.
(a)
The expenditure of all funds shall conform to a spending plan included in the Fair Share Plan and deemed compliant (i.e., compliance certification or its equivalent judgment of repose). Funds deposited in the Affordable Housing Trust Fund may be used for any activity approved by the Affordable Housing Dispute Resolution Program or a court of law, to address the Borough of Somerville's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to:
[1]
Preservation or purchase of housing for the purpose of maintaining or implementing affordability controls.
[2]
Rehabilitation of existing housing.
[3]
New construction of affordable housing units and related costs.
[4]
Accessory apartment.
[5]
Market to affordable.
[6]
Conversion of existing non-residential buildings to create new affordable units.
[7]
Green building strategies designed to be cost saving and in accordance with accepted national or state standards.
[8]
Purchase of land for affordable housing, improvement of land to be used for affordable housing.
[9]
Extensions or improvements of roads and infrastructure to affordable housing sites.
[10]
Financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through 8.9 and specified in the approved spending plan.
(b)
Funds shall not be expended to reimburse for the Borough of Somerville past housing activities.
(c)
At least 30% of all development fees collected and interest earned may be used to provide affordability assistance to low-and moderate-income households in affordable units included in the municipal Fair Share Plan. One-third of the affordability assistance portion of development fees collected may be used to provide affordability assistance to those households earning 30% or less of median income by region.
(d)
Affordability assistance program 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.
(e)
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.
(f)
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.
(g)
The Borough of Somerville 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.
(h)
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 developer 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 the Department's monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council's/NJDCA's regulations and/or action are not eligible uses of the Affordable Housing Trust Fund.
(8)
Monitoring. The Borough of Somerville Housing Liaison shall complete and return to NJDCA, all monitoring forms included in monitoring requirements related to the collection of development fees from residential and non-residential 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 Borough of Somerville housing program, as well as to the expenditure of revenues and implementation of the plan as approved by the NJDCA. All monitoring reports shall be completed on forms designed by COAH/NJDCA.
(9)
Ongoing collection of fees. The ability for the Borough of Somerville to impose, collect, and expend development fees shall expire with the end of the housing cycle period covered by its compliance certification unless the Borough of Somerville has filed and adopted the Housing Element and Fair Share Plan with the Courts or Program, pursuant to a court of law or the Affordable Housing Dispute Resolution Program pursuant to P.L. 2024, c.2. If the Borough of Somerville fails to renew its ability to impose and collect development fee prior to the expiration of the housing cycle period covered by its compliance certification, it may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds deposited so forfeited shall be deposited into the "New Jersey Affordable Housing Trust Fund" established pursuant to section 20 of P.L. 1985, c.222 (N.J.S.A. 52:27D-320).
The Borough of Somerville shall not impose a residential development fee on a development that receives preliminary or final site plan approval after the expiration of the Borough's compliance certification, nor shall the Borough of Somerville retroactivity impose a development fee on such a development. The Borough of Somerville shall not expend development fees after the expiration of its compliance certification.
All ordinances or parts of ordinances in conflict or inconsistent with any part of this subsection are hereby repealed to the extent that they are in such conflict or inconsistent.
If any section, subsection sentence, clause or phrase of this subsection is for any reason held to be unconstitutional or invalid, such decision shall not affect the remaining portions of this subsection.
