[Ord. No. O-05-33 § 1]
In Holmdel Builder's Ass'n 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-307 et seq., and the State Constitution subject to the Council on Affordable Housing's (COAH) adoption of rules. The purpose of this section is to establish 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. O-05-33 § 1]
a. 
Within the City of Bayonne, developers shall pay a development fee of 1% of the appraised value on the document utilized for construction financing provided no increased density is permitted.
b. 
If a "d" variance is granted pursuant to N.J.S.A. 40:55d-70d(5), then the additional, residential units realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% rather than the development fee of 1%. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the 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 "d" variance application.
[Ord. No. O-05-33 § 1]
a. 
Developers within the City of Bayonne shall pay a fee of 2% of [either the equalized assessed value for nonresidential development or] the appraised value utilized on the document for construction financing.
b. 
If a "d" variance is granted 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) will incur a bonus development fee of 6% rather than the development fee of 2%. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" 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 "d" variance application. The development fee may be based on either the equalized assessed value for nonresidential development or the appraised value utilized on the document for construction financing.
[Ord. No. O-05-33 § 1]
a. 
Types of Development.
1. 
Development requiring minor site plan.
2. 
Development requiring minor subdivision.
3. 
Development associated with a single detached or attached one or two family house.
4. 
Development associated with a public or semi-public use such as churches, day care facilities, houses of worship, hospitals, schools and public housing authorities.
5. 
Development of multifamily residential use with less than nine units.
6. 
Development of a nonresidential use specified in Appendix E of the COAH Third Round Substantive Rules (N.J.A.C. 5:94) with a gross floor area that is less than the threshold in square feet required to generate one affordable unit.
7. 
Development involving mixed uses that meet all of the requirements listed above.
NOTE: The exemptions referenced above shall not apply if the development requires a "d" use variance.
b. 
Areas of the City.
1. 
R-1 Single Family Residential District except development applications requiring a "d" use variance.
2. 
R-2 Detached/Attached Residential District except development applications requiring a "d" use variance.
3. 
Broadway Corridor consisting of the CBD Central Business District, UBD Uptown Business District, ORS Office/Retail Service District and C-1 Neighborhood Commercial District except that:
This exemption shall not apply to development requiring a "d-1, d-2 or d-5" use variance, located within a designated redevelopment area(s), containing nine residential units or more, commercial space with 25,000 square feet of gross floor area or more for retail/services or commercial space with 8,333 square feet of gross floor area or more for banks/financial institutions, professional offices and medical offices or any combination thereof.
4. 
TDO Transit Development Overlay District except that:
This exemption shall not apply to development requiring a "d-1, d-2 or d-5" use variance, located within a designated redevelopment area(s), containing nine residential units or more, commercial space with 25,000 square feet of gross floor area or more for retail/services or commercial spaces with 8,333 square feet of gross floor area or more for banks/financial institutions, professional offices and medical offices or any combination thereof.
c. 
Developers that have received preliminary or final approval prior to the effective date of this section[1] shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.
[1]
Editor's Note: Ordinance No. O-05-33, codified herein, was adopted October 19,2005.
[Ord. No. O-05-33 § 1]
a. 
Developers shall pay 50% of the calculated development fee to the City of Bayonne at the issuance of building permits. The developer shall be responsible for paying the balance of the calculated development fee to the City of Bayonne at the issuance of certificates of occupancy.
[Ord. No. O-05-33 § 1]
a. 
There is hereby created an interest bearing housing trust fund in any bank authorized by the City's Cash Management Plan for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers 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 a spending plan approved by COAH.
b. 
If COAH determines that the City of Bayonne is not in conformance with COAH's rules on development fees, COAH is authorized to direct the manner in which all development fees collected pursuant to this section shall be expended. Such authorization is pursuant to: this section, COAH's rules on development fees and the written authorization from the Governing Body of any bank authorized by the City's Cash Management Plan.
[Ord. No. O-05-33 § 1]
a. 
Money deposited in a housing trust fund may be used for any activity approved by COAH for addressing the City of Bayonne'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 more affordable to low- and moderate-income households and administrative costs necessary to implement the City of Bayonne's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
b. 
At least 30% of the revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to: down payment and closing cost assistance, low interest loans and rental assistance.
c. 
No more than 20% of the revenues collected each year 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 directly associated with plan development or plan implementation.
d. 
Development fee revenues shall not be expended to reimburse the City of Bayonne for housing activities that preceded a first or second round substantive certification.
[Ord. No. O-05-33 § 1]
This section shall expire if:
a. 
COAH dismisses or denies the City of Bayonne's petition for substantive certification;
b. 
COAH revokes substantive certification or this section;
c. 
The substantive certification/judgment of compliance expires prior to the City of Bayonne filing an adopted housing element with COAH or the Court, petitioning for third round substantive certification and receiving COAH's approval of this section.
d. 
For urban aid municipalities, when COAH's approval to collect development fees expire.
[Ord. No. O-05-33 § 1]
As used in this section, the following terms have the meaning indicated as follows:
COAH
Shall mean the New Jersey Council on Affordable Housing.
DEVELOPMENT FEES
Shall mean money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.
EQUALIZED ASSESSED VALUE
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 will be determined at project completion by the Municipal Tax Assessor.
SUBSTANTIVE CERTIFICATION
Shall mean a determination by COAH approving a municipality's housing element and fair share plan in accordance with the provisions of the Fair Housing Act and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six years in accordance with the terms and conditions therein.