[Ord. No. O-06-05 § 1]
This Article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to N.J.A.C. 5:94-6 whenever
a growth share obligation or contribution in lieu of constructing
a growth share obligation is not required or is reduced by the Fair
Housing Committee. Fees collected pursuant to this Article shall be
used for the sole purpose of providing low- and moderate-income housing.
This Article shall be interpreted within the framework N.J.A.C. 5:94-1
et seq.
[Ord. No. O-06-05 § 1]
As used in this Article, words and phrases shall have the same
meanings they have pursuant to N.J.A.C. 5:94-1.4, as said provision
may from time to time be amended.
[Ord. No. O-06-05 § 1]
a.
Whenever residential development is exempted from the growth share
requirements of Article 17, developers shall pay a fee of 1% the equalized
assessed value of 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)
has been granted by the Zoning Board of Adjustment, developers may
be required to pay a development fee of 6% the equalized assessed
value for each additional unit that is realized.
Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the development fee equals
1% of the equalized assessed value for the two by-right units and
6% of the equalized assessed value for the two additional units. However,
if the zoning on a site has changed during the two-year period preceding
the filing of such a 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 variance application.
[Ord. No. O-06-05 § 1]
a.
Where required, nonresidential developers shall pay a fee of 2% 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) will incur a bonus
development fee of 6% 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. O-06-05 § 1]
a.
Affordable housing developments shall be exempt from development
fees.
b.
Developments that have received preliminary or final approval prior
to the imposition of a municipal development fee 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. O-06-05 § 1]
50% of the development fee will be collected at the time of
issuance of the building permit. The remaining portion will 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. O-06-05 § 1]
Imposed and collected development fees that are challenged shall
be placed in an interest bearing escrow account by the City. 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. O-06-05 § 1]
a.
There is hereby created a separate, interest-bearing housing trust
fund in Bank of America 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 section shall be deposited
into this fund.
b.
Within seven days from the opening of the trust fund account, the
City of Bayonne shall provide COAH with written authorization, in
the form of a three-party escrow agreement between the municipality,
the municipality's financial 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.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH.
[Ord. No. O-06-05 § 1; Ord. No. O-06-28 § 1]
a.
Funds shall not be expended to reimburse municipalities for past
housing activities.
b.
After subtracting development fees collected to finance an RCA, a
rehabilitation program or a new construction project that are necessary
to address the municipality's affordable housing obligation, at least
30% of the balance remaining shall be used to provide affordability
assistance to low and moderate income households in affordable units
included in a 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.
1.
Affordability assistance programs may include down payment assistance,
security deposit assistance, low interest loans and rental assistance.
2.
Affordability assistance to households earning 30% or less of median
income may include buying down the cost of low income units in a municipal
Fair Share Plan to make them affordable to households earning 30%
or less than median income. The use of development fees in this manner
shall entitle a municipality 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.
c.
Municipalities 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.
d.
No more than 20% 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 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 Council
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. O-06-05 § 1]
The City of Bayonne shall comply with the requirements of N.J.A.C.
5:94-6 with regard to collection of money, monitoring, the on-going
collection of funds and other sundry items as promulgated by COAH
for development fees.
