[Ord. No. 2235 § 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
section establishes standards for the collection, maintenance, and
expenditure of development fees pursuant to COAH's rules. Fees
collected pursuant to this section shall be used for the sole purpose
of providing low- and moderate-income housing. This section shall
be interpreted within the framework of COAH's rules on development
fees.
[Ord. No. 2235 § 2]
The Borough of Roselle Park shall not spend development fees
until the Court or COAH has approved a plan for spending such fees
and the Borough of Roselle Park has either received third round substantive
certification from COAH or a judgment of compliance and repose.
[Ord. No. 2235 § 3]
The following terms, as used in this section, 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 municipal 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 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 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 Municipal
Tax Assessor.
[Ord. No. 2235 § 4]
a.
Within the Borough of Roselle Park's zoning district(s), 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 may be required
to pay a development fee of maximum 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. 2235 § 5]
a.
Within the Borough of Roselle Park 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 nonresidential 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. 2235 § 6]
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 this 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.
[Ord. No. 2235 § 7]
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. 2235 § 8]
Imposed and collected development fees that are challenged shall
be placed in an interest bearing escrow account by the Borough of
Roselle Park. 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. 2235 § 9]
a.
There is hereby created a separate, interest-bearing housing trust
fund for the purpose of depositing development fees collected from
residential and nonresidential 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 Borough of Roselle Park shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
its banking institution, 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
or the Court. All interest accrued in the housing trust fund shall
only be used on eligible affordable housing activities approved by
COAH or the Court.
[Ord. No. 2235 § 10]
a.
Funds deposited in the housing trust fund may be used for any activity
approved by COAH or the Court to address the municipal 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 or the Court.
b.
Funds shall not be expended to reimburse the Borough of Roselle Park
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 Borough of Roselle Park's 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 municipal 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 municipal 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 Borough of Roselle Park 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 Borough of Roselle Park 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 municipal 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. 2235 § 11]
The Borough of Roselle Park 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 either certified
by COAH or approved by the Court. All monitoring reports shall be
completed on forms designed by COAH.
[Ord. No. 2340 § 1]
The Borough shall establish its own rehabilitation program in
compliance with applicable COAH regulations, as detailed in the "Borough
of Roselle Park Operating Manual for the Administration of Rehabilitation
Units" dated September 2011.
