[Amended by Ord. No. 09-13]
A.
The Township Committee of the
Township of Raritan finds and declares that the creation and preservation
of affordable housing in the Township serves the public interest.
Maintaining and improving a stock of sound affordable housing requires
affirmative steps by local government working cooperatively with public
bodies at all levels and with the private sector.
B.
The New Jersey Supreme Court
in Holmdel Builder's Ass'n v. Holmdel Township, 121 N.J. 550 (1990),
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.
C.
Pursuant to P.L. 2008, c. 46,
Section 8 (N.J.S.A. 52:27D-329.2), and the Statewide Non-residential
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 spending
plan may retain fees collected from nonresidential development.
D.
The purpose of this article is
to establish standards for the collection, maintenance and expenditure
of development fees in accordance with COAH's rules and regulations
and in accordance with P.L. 2008, c. 46, Sections 8 and 32 to 38.[1] 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 of COAH's regulations
on development fees, including N.J.A.C. 5:97-8, and as may be amended.[2]
For the purposes of this article, the following terms shall
have the following meanings:
A sales price or rent within the means of a low- or moderate-income
household as defined in N.J.A.C. 5:97-9.[1]
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.
The New Jersey Council on Affordable Housing established
under the Fair Housing Act of 1985,[4] which has primary jurisdiction for the administration
of affordable housing obligations in accordance with sound regional
planning considerations in the state.
New construction and additions, but does not include alterations,
reconstruction, renovations, and repairs as those terms are defined
under the State Uniform Construction Code promulgated pursuant to
the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A.
52:27D-119 et seq.).
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 individual,
person, partnership, association, company, or corporation 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. 5:97-8.3.[5]
The assessed value of a property divided by the current average
ratio of assessed to true value for the Township as determined in
accordance with Sections 1, 5, and 6 of P.L. 1973, c. 123 (N.J.S.A.
54:1-35a through 54:1-35c). Estimates at the time of building permit
may be obtained by the Tax Assessor utilizing estimates for construction
cost. Final equalized assessed value will be determined at project
completion by the Tax Assessor.
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.
A modification or elimination of a significant condition
or conditions in a memorializing resolution or any significant modification
in the design or layout of the subdivision plan previously approved
which requires a revised or amended subdivision plan application.
A.
Residential development.
(1)
Within all residential and
nonresidential zones now existing, or as may hereafter be created,
including, but not limited to, the R-1, R-1A, R-2, R-3, R-4, R-5,
R-6, R-6LM, R-7, R-8, R-9, and AR Zone Districts, in the Township
of Raritan, residential developers, except for the developers of the
types of development specifically exempted below, shall pay a fee
of 1.5% of the equalized assessed value for the residential development
provided no increased density is permitted.
(2)
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 shall pay a development fee of 6% 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. Example:
If an approval allows four units to be constructed on a site that
was zoned for two units, the fees could equal 1 1/2% of the equalized
assessed value on the first two units and the specified higher percentage
up to 6% of the equalized assessed value for the two additional units,
provided zoning on the site has not changed during the two-year period
preceding the filing of such a variance application.
B.
Nonresidential development.
(1)
Within all nonresidential
or residential zones now existing, or as may hereafter be created,
including, but not limited to, the I-1, I-2, O-1, O-2, B-1, B-2, B-3,
B-4, B-5, and PCOS Zone Districts, in the Township of Raritan, nonresidential
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 nonresidential construction
on an unimproved lot or lots.
(2)
Nonresidential 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 nonresidential purposes.
(3)
Development fees shall be
imposed and collected when an existing nonresidential structure is
demolished and replaced. The development fee of 2.5% shall be calculated
on the difference between the equalized assessed value of the preexisting
land and improvements and the equalized assessed value of the newly
improved structure, i.e., land and improvement, at the time the final
certificate of occupancy is issued. If the calculation required under
this subsection results in a negative number, the nonresidential development
fee shall be zero.
A.
Affordable housing developments,
developments where the developer is providing for the construction
of affordable units elsewhere in the Township, and developments where
the developer has made a payment in lieu of on-site construction of
affordable units shall be exempt from development fees.
B.
Residential developments that
have received preliminary or final site plan approval prior to the
effective date of the initial development fee ordinance codified in
this article shall be exempt from paying a development fee, 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 and final site plan approval
for this purpose. The fee percentage shall be vested on the date that
the building permit is issued.
C.
Development fees shall not be
imposed when an existing residential structure is expanded (including
additions, alterations, renovations or reconstruction work).
D.
The nonresidential portion of
a mixed-use inclusionary or market-rate development shall be subject
to the development fee of 2.5% unless otherwise exempted below.
E.
The fee of 2.5% shall not apply
to an increase in equalized assessed value resulting from alterations,
change in use within existing footprint, reconstruction, renovations
and repairs to nonresidential developments.
F.
Nonresidential developments shall
be exempt from the payment of nonresidential development fees in accordance
with the exemptions required pursuant to the Statewide Non-residential
Development Fee Act, P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1 et seq.),
as specified in the Form N-RDF, State of New Jersey Non-residential
Development Certification/Exemption Form. Specifically, all nonresidential
construction of buildings or structures on property used by churches,
synagogues, mosques, and other houses of worship, and property used
for educational purposes, which is tax exempt pursuant to N.J.S.A.
54:4-3.6, shall be exempt from the imposition of a nonresidential
development fee, provided that the property continues to maintain
its tax-exempt status under the statute for a period of at least three
years from the date of issuance of the certificate of occupancy. In
addition, the following shall be exempt from the imposition of a nonresidential
development fee:
(1)
Parking lots and parking
structures, regardless whether the parking lot or parking structure
is constructed in conjunction with a nonresidential development, such
as an office building, or whether the parking lot is developed as
an independent nonresidential development;
(2)
Any nonresidential development
which is an amenity to be made available to the public, including,
but not limited to, recreational facilities, community centers, and
senior centers, as defined by the Statewide Non-residential Development
Fee Act, which are developed in conjunction with or funded by a nonresidential
developer;
(3)
Nonresidential construction
resulting from a relocation of or an on-site improvement to a nonprofit
hospital or a nursing home facility;
(4)
Projects that are located
within a specifically delineated urban transit hub, as defined pursuant
to N.J.S.A. 34:1B-208;
(5)
Projects that are located
within an eligible municipality, as defined under N.J.S.A. 34:1B-208,
where a majority of the project is located within a one-half-mile
radius of the midpoint of a platform area for a light rail system;
and
(6)
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.
G.
Any exemption claimed by a developer
shall be substantiated by that developer. A developer of a nonresidential
development exempted from the nonresidential 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 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.
H.
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 article 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 Raritan as a lien against the real property of the owner.
I.
Owner-occupied residential structures
demolished and replaced as a result of fire, flood or natural disaster
shall be exempt from paying a development fee.
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 or other designated Township official responsible for the
issuance of a building permit.
B.
For nonresidential 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 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 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 or
other Township official responsible for the issuance of a building
permit shall notify the Township 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 Township 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 Tax 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 Township Tax
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 Township 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).
H.
The Township may collect up to
50% of the calculated development fee at the time of the issuance
of the building permit, with the remaining portion to 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 issuance of the building permit and that determined at the
issuance of the certificate of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge
residential development fees imposed by filing a challenge with the
Hunterdon 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 Township of Raritan. Appeals from a determination
of the Board may be made to the Tax Court in accordance with the provisions
of the State Uniform Tax 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.
(2)
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 Raritan. Appeals from a determination
of the Director may be made to the Tax Court in accordance with the
provisions of the State Uniform Tax 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.
A.
There is hereby created a separate,
interest-bearing housing trust fund to be maintained by the Chief
Financial Officer of the Township for the purpose of depositing development
fees collected from residential and nonresidential developers and
proceeds from the sale of units with extinguished controls, which
shall be designated as the "Affordable Housing Trust Fund."
B.
The following additional funds
may be deposited in the Affordable Housing Trust Fund and shall at
all times be identifiable by source and amount:
(1)
Payments in lieu of on-site
construction of affordable units;
(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 units;
(4)
Repayments from affordable
housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of
affordable units; and
(7)
Any other funds collected
in connection with the Township of Raritan's affordable housing program.
C.
Within seven days from the opening
of the trust fund account, the Township shall provide COAH with written
authorization, in the form of a three-party escrow agreement between
the municipality, the bank, and COAH, to permit COAH to direct the
disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b).[1]
[1]
Editor's Note: N.J.A.C. 5:97 expired 6-2-2015.
D.
All interest accrued in the housing
trust fund shall only be used on eligible affordable housing activities
approved by COAH.
A.
The expenditure of all funds
shall conform to a spending plan approved by COAH. Funds deposited
in the Affordable Housing Trust Fund may be used for any activity
approved by COAH to address the Township of Raritan's fair share obligation
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. 5:97-8.7 through
5:97-8.9 and specified in the approved spending plan.[1]
[1]
Editor's Note: N.J.A.C. 5:97 expired 6-2-2015.
B.
Funds shall not be expended to
reimburse the Township for past housing activities.
C.
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.
(1)
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.
(2)
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.
(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.
E.
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, 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 COAH'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.
The Township shall complete and submit to COAH all monitoring
reports included in the monitoring requirements related to the collection
of development fees from residential and 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's affordable
housing program, as well as to the expenditure of revenues and implementation
of the plan certified by COAH.
The Township's ability to impose, collect and expend development
fees shall expire with its substantive certification unless the Township
has filed an adopted housing element and fair share plan with COAH,
has petitioned for substantive certification, and has received COAH's
approval of this article. If the Township fails to renew its ability
to impose and collect development fees prior to the expiration of
its substantive certification, it may be subject to forfeiture of
any of all funds remaining within its Affordable Housing Trust Fund.
Any funds 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 Township shall not impose a residential
development fee on a development that receives preliminary or final
site plan approval after the expiration of its substantive certification
or judgment of compliance, nor shall the Township retroactively impose
a development fee on such a development. The Township shall not expend
development fees after the expiration of its substantive certification
or judgment of compliance.[1]
[1]
Editor's Note: Original Ch. 16.11, Growth Share Affordable
Housing Production, which immediately followed this article, as amended
by Ord. Nos. 06-5 and 08-20, was repealed 2-4-2020 by Ord. No. 20-01.
