[Added 3-5-2020 by Ord. No. 2020-08]
A.
The Township
of Lakewood has established the position of Municipal Housing Liaison.
The Township of Lakewood shall appoint a specific municipal employee
to serve as a Municipal Housing Liaison for purposes of administering
the Township’s affordable housing program. The Municipal Housing
Liaison shall be responsible for overseeing the Township’s affordable
housing program, including overseeing the administration of affordability
controls on the affordable units and the affirmative marketing of
available affordable units in accordance with the Township’s
Affirmative Marketing Plan; overseeing the Township’s rehabilitation
program and affordability assistance programs and fulfilling monitoring
and reporting requirements; and supervising administrative agent(s).
Lakewood Township shall adopt a resolution appointing the person to
fulfill the position of Municipal Housing Liaison. The Municipal Housing
Liaison shall be appointed by the Township Committee and may be a
full-time or part-time municipal employee. Compensation may be fixed
by the Township Committee at the time of appointment of the Municipal
Housing Liaison. The Municipal Housing Liaison shall be approved by
the Court and shall be duly qualified through a training program sponsored
by Affordable Housing Professionals of New Jersey before assuming
the duties of Municipal Housing Liaison.
B.
The Municipal
Housing Liaison shall be responsible for oversight and administration
of the affordable housing program for Lakewood Township, including
the following responsibilities which may not be contracted out to
the administrative agent:
1.
Serving
as Lakewood Township’s primary point of contact for all inquiries
from the state, affordable housing providers, administrative agents
and interested households;
2.
Compiling,
verifying, submitting and posting all monitoring reports as required
by the Court and by this chapter;
3.
Coordinating
meetings with affordable housing providers and administrative agents,
as needed; and
4.
Attending
continuing education opportunities on affordability controls, compliance
monitoring and affirmative marketing at least annually and more often
as needed.
C.
Subject
to the approval of the Court, the Township of Lakewood shall designate
one or more administrative agent(s) to administer and to affirmatively
market the affordable units constructed or rehabilitated in the Township
in accordance with UHAC and this chapter and to administer the Township’s
rental affordability program. An operating manual for each affordable
housing program shall be provided by the administrative agent(s) to
be adopted by resolution of the Township Committee and subject to
approval of the Court. The operating manual(s) shall be available
for public inspection in the office of the Township Clerk, in the
office of the Municipal Housing Liaison, and in the office(s) of the
administrative agent(s). The Municipal Housing Liaison shall supervise
the work of the administrative agent(s).
[Added 3-5-2020 by Ord. No. 2020-08]
An administrative agent shall be an independent entity serving
under contract to and reporting to the municipality. The fees of the
administrative agent shall be paid by the owners of the affordable
units for which the services of the administrative agent are required.
The administrative agent shall perform the duties and responsibilities
of an administrative agent as set forth in UHAC, including those set
forth in Sections 5:80-26.14, 16 and 18 thereof. In addition to acting
as administrative agent for the Township’s Rehabilitation program,
the administrative agent shall oversee the Township’s Affordability
Assistance program.
[Ord. No. 2018-9]
A.
Purpose
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 (the Act), 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.
2.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2),
and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1
through 40:55D-8.7), COAH is authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that are under the jurisdiction of
the Council or court of competent jurisdiction and have a COAH-approved
or court-approved spending plan may retain fees collected from nonresidential
development.
3.
This section establishes standards for the collection, maintenance
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, §§ 8 and 32 through
38. 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, codified at N.J.A.C. 5:93-8.
B.
Basic requirements.
1.
This section shall not be effective until approved by the Superior
Court of New Jersey pursuant to N.J.A.C. 5:93-8.
2.
The Township of Lakewood shall not spend development fees until the
Superior Court of New Jersey has approved a plan for spending such
fees in conformance with N.J.A.C. 5:93-5.1(c).
3.
Because the Township of Lakewood is an urban aid municipality pursuant
to N.J.S.A. 52:27D-178 et seq., its adoption of a Municipal Development
Fee Ordinance is governed by N.J.A.C. 5:94-6.3, which provides that
its Municipal Development Fee Ordinance can be approved without first
petitioning for substantive certification. Additionally, pursuant
to N.J.A.C. 5:94-6.2(b), because the Township is an urban aid municipality,
the approval of its Municipal Development Fee Ordinance does not require
that the Township first petition with an adopted housing element and
fair share plan.
C.
AFFORDABLE HOUSING DEVELOPMENT
COAH OR THE COUNCIL
DEVELOPER
DEVELOPMENT FEE
DEVELOPMENT FEE PERIOD
EQUALIZED ASSESSED VALUE
GREEN BUILDING STRATEGIES
Definitions. The following terms, as used in this section, shall
have the following meanings:
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-percent affordable
development.
The New Jersey Council on Affordable Housing, established
under the Act, or such other Agency as is created by the Legislature
which has primary jurisdiction for the administration of housing obligations
in accordance with sound regional planning consideration in the state.
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.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:93-8.
The period of time for which the Court or COAH specifies
that the Township's Development Fee Ordinance will be in effect pursuant
to N.J.A.C. 5:94-6.3.
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 §§ 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).
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.
D.
(Reserved)
E.
Nonresidential development fees.
1.
Imposed fees.
a.
Within all zoning districts, nonresidential developers, except
for developers of the types of development specifically exempted,
shall pay a fee equal to two and one-half (2.5%) percent of the equalized
assessed value of the land and improvements for all new nonresidential
construction on an unimproved lot or lots.
b.
Nonresidential developers, except for developers of the types
of development specifically exempted, shall also pay a fee equal to
two and one-half (2.5%) percent of the increase in equalized assessed
value resulting from any additions to existing structures to be used
for nonresidential purposes.
c.
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of two and
one-half (2.5%) percent shall be calculated on the difference between
the equalized assessed value of the preexisting land and improvement
and the equalized assessed value of the newly improved structure,
i.e., land and improvement, at the time a final certificate of occupancy
is issued. If the calculation required under this section results
in a negative number, the nonresidential development fee shall be
zero.
2.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development:
a.
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the development fee of two and
one-half (2.5%) percent, unless otherwise exempted below.
b.
The fee of two and one-half (2.5%) percent shall not apply to
an increase in equalized assessed value resulting from alterations,
change in use within existing footprint, reconstruction, renovations
and repairs.
c.
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46, as specified in the Form N-RDF,
State of New Jersey Nonresidential Development Certification/Exemption
form. Any exemption claimed by a developer shall be substantiated
by that developer.
d.
A developer of a nonresidential development exempted from the
nonresidential development fee pursuant to P.L. 2008, c. 46, or P.L.
2016, c. 14 shall be subject to it at such time the basis for the
exemption no longer applies and shall make the payment of the nonresidential
development fee, in that event, within three years after that event
or after the issuance of the final certificate of occupancy of the
nonresidential development, whichever is later.
e.
If a property which was exempted from the collection of a nonresidential
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 nonresidential development fees under these circumstances
may be enforceable by the Township of Lakewood as a lien against the
real property of the owner.
F.
Collection procedures.
1.
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 Zoning Officer.
2.
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF, State of New Jersey Nonresidential
Development Certification/Exemption, to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in Form N-RDF. The Tax Assessor shall
verify exemptions and prepare estimated and final assessments as per
the instructions provided in Form N-RDF.
3.
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.
4.
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.
5.
The construction official responsible for the issuance of a final
certificate of occupancy notifies the local assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
6.
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.
7.
Should the Township of Lakewood 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 § 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
8.
50% of the development fee shall be collected by the Zoning Officer
at the time of issuance of the zoning 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 the time of the issuance of the zoning permit
and that determined at issuance of the certificate of occupancy.
9.
Appeal of development fees.
a.
(Reserved)
b.
A developer may challenge nonresidential 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 Township of
Lakewood. Appeals from a determination of the Director 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., within 90 days after
the date of such determination. Interest earned on amounts escrowed
shall be credited to the prevailing party.
G.
Affordable Housing Trust Fund.
1.
Establishment of fund. There is hereby established in the Township
of Lakewood an interest-bearing account known as the "Lakewood Township
Affordable Housing Trust Fund," which shall have as its primary purpose
support of low- and moderate-income housing in the Township of Lakewood
and the region in which it is included, in furtherance of the mandates
of the Constitution of the State of New Jersey. Trustees of the fund
shall be the Township Committee of the Township of Lakewood, and,
in accordance with the provisions of N.J.A.C. 5:93-8.19, the Superior
Court of the State of New Jersey may, upon notice to the Township
Clerk, direct the disbursement of development fees.
2.
The Township Committee, acting as trustees of the fund, shall have
the power to appoint a person or organization as Housing Officer to
administer the fund on its behalf and at its direction.
3.
Development fees collected from nonresidential developers and proceeds
from the sale of units with extinguished controls shall be deposited
in the Township of Lakewood's affordable housing trust fund maintained
by the Chief Financial Officer.
4.
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
a.
Payments in lieu of on-site construction of affordable units;
b.
Developer-contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
c.
Rental income from municipally operated units;
d.
Repayments from affordable housing program loans;
e.
Recapture funds;
f.
Proceeds from the sale of affordable units; and
g.
Any other funds collected in connection with the Township of
Lakewood's affordable housing program.
5.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH or the
Court.
6.
The Township of Lakewood shall provide COAH and/or the DCA with written
authorization, in the form of a three-party escrow agreement between
the Township, the bank, and COAH and/or DCA to permit COAH and/or
DCA to direct the disbursement of the funds as provided for in N.J.A.C.
5:93-8.19.
H.
Use of Funds.
1.
The expenditure of all funds shall conform to a spending plan approved
by COAH or the Court. Funds deposited in the housing trust fund may
be used for any activity approved by COAH or the Court to address
the Township of Lakewood's fair share obligation or the need for Affordable
Housing in Lakewood and may be set up as a grant or revolving loan
program. Such activities include, but are not limited to, preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable
or regional housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or state standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, 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. 5:93-8.16 and specified
in the approved spending plan.
2.
Funds shall not be expended to reimburse the Township of Lakewood
for past housing activities.
3.
At least 30% of all development fees collected and interest earned
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 of the affordability assistance portion of development
fees collected shall be used to provide affordability assistance to
those households earning 30% or less of median income by region.
a.
Affordability assistance programs 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.
b.
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.
c.
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.
4.
The Township of Lakewood 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. 5:93–8.16(d).
5.
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 develop or implement a new construction program, 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 COAH's or the Court's
monitoring requirements. Legal or other fees related to litigation
opposing affordable housing sites or objecting to the Council's regulations
and/or action are not eligible uses of the Affordable Housing Trust
Fund.
I.
Monitoring. The Township of Lakewood shall complete and return to
COAH and/or the Court all monitoring forms included in monitoring
requirements related to the collection of development fees from nonresidential
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 Township
of Lakewood's housing program, as well as to the expenditure of revenues
and implementation of the plan certified by COAH or approved by the
Court. All monitoring reports shall be completed on forms designed
by COAH and/or the Court.
J.
Ongoing collection of fees. The ability for the Township of Lakewood
to impose, collect and expend development fees shall expire at the
end of the Development Fee Period. If the Township of Lakewood fails
to renew its ability to impose and collect development fees prior
to the expiration of the Development Fee Period, it may be subject
to forfeiture of any or all funds remaining within its municipal trust
fund. Any funds so forfeited shall be deposited into the New Jersey
Affordable Housing Trust Fund established pursuant to § 20
of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). Unless extended, the Township
of Lakewood shall not expend development fees after the expiration
of the Development Fee Period.
