[Adopted 7-14-1999 by Ord. No. 99-07-5331]
Pine Beach has a development fee ordinance that was approved by the Council on Affordable Housing (COAH) and adopted by Pine Beach on September 17, 1997. This spending plan is prepared in accordance with N.J.A.C. 5:93-5.1(c) and includes the following:
A. 
Projection of development fee revenues based on known development approvals and historic rate of development activity.
B. 
A description of the administrative mechanism that the municipality will use to collect and distribute revenues.
C. 
A description of the anticipated use of all development fees.
D. 
A schedule for the rehabilitation of housing units (if applicable).
E. 
If the municipality envisions being responsible for public sector or nonprofit construction of housing, a pro-forma statement of the anticipated costs and revenues associated with the developments (if applicable).
F. 
The manner in which the municipality will address any expected or unexpected shortfall if the anticipated revenues from development fees are not sufficient to implement the plan (if applicable).
To date, Pine Beach has collected $0 in development fees. All development fees collected and interest generated by the fees are deposited in a separate interest bearing account in the official depository of the Borough for the purposes of affordable housing.
To calculate a projection of revenues anticipated between calendar year 1999 and the expiration of substantive certification, Pine Beach considered the following:
A. 
Based on the residential and nonresidential projects which have had development fees imposed upon them at the time of preliminary or final development approvals, Pine Beach anticipates the collection of $0 in development fees at issuance of building permits and/or certificates of occupancy during the period of substantive certification.
B. 
Pine Beach considered all projects currently before the Planning Board for development approvals. Based on an estimate of when these may apply for building permits and certificates of occupancy, Pine Beach anticipates the collection of $50,000 in development fees during the period of substantive certification.
C. 
Additionally, Pine Beach looked at the historic rate of development and determined that between now and the expiration of substantive certification, and additional $0 to $10,000 in development fees could be anticipated.
Therefore, Pine Beach has projected a total of $50,000 in development fee revenues to be collected between now and the expiration of substantive certification. All development fees collected and interest generated by the fees will be deposited in a separate interest bearing account in Summit Bank for the purposes of affordable housing.
The following procedural sequence for the collection and distribution of development fee revenues is proposed by Pine Beach.
A. 
Collection of development fee revenues. The Zoning Officer notifies the Building Code Official whenever a preliminary or final approval is granted development which is subject to a development fee.
The Planning Board recording secretary notifies the Building Code Official whenever a preliminary or final approval is granted development which is subject to a development fee.
When a request is made for a building permit, the Building Code Official determines if the project is subject to the imposition of a mandatory development fee. If so, the Building Code Official obtains an approximate value of the completed project from the developer or Tax Assessor who calculates the fee.
The developer pays 50% of the estimated development fee to the Building Code Official at the time the building permit is issued. The funds are then forwarded to the Chief Financial Officer and deposited in the affordable housing trust fund.
Upon request of a certificate of occupancy by the developer, the Building Code Official will notify the Borough Tax Assessor to calculate the equalized assessed value of the project and set the fee. The balance of the development fee will be paid by the developer to the Building Code Official prior to issuance of the certificate of occupancy. The funds are then forwarded to the Chief Financial Officer and deposited in the affordable housing trust fund.
B. 
Distribution of development fee revenues. A resolution is reviewed by the governing body recommending the expenditure of development fee revenues as set forth in this spending plan and adopts the recommendation.
The use and release of the funds require the adoption of a resolution in accordance with the COAH approved spending plan. Once a request is approved, the Chief Financial Officer releases the revenues from the trust fund for the specific use as per the governing body's resolution.
A. 
Pine Beach will dedicate 20% of development fees collected each year to be dedicated for administrative purposes as follows:
Administration of all affordable housing activities as defined by COAH rules and regulations.
B. 
Pine Beach will devote 80% of development fees collected each year to render units more affordable as follows:
Through the establishment of a local housing rehabilitation program for low and moderate income applicants of the borough. The implementation of a process and officer for the pursuit of affordable housing activities.
C. 
If sufficient funds are collected through the development fee ordinance, funding will be utilized for the support and the administration of the borough-wide housing rehabilitation program. If not, local resources, through bond, will be dedicated to the program.
Pine Beach intends to use development fee revenues for the rehabilitation of housing units. The rehabilitation schedule, which will parallel the schedule set forth in the certified housing element and fair share plan, is shown below:
Year
Number of Rehabs
Funds Needed
Year 1
3 units
$30,000
Year 2
2 units
$20,000
Year 3
1 unit
$10,000
Year 4
1 unit
$10,000
Year 5
1 unit
$10,000
8 Total
$80,000
Pursuant to the housing element and fair share plan, the governing body of Pine Beach has adopted a resolution agreeing to fund any shortfall of funds required for implementing the housing rehabilitation program. In the event that a shortfall of anticipated revenues occurs, Pine Beach will bond for funding (see resolution of record).
Pine Beach has collected $0 to date and anticipates an additional $50,000 in development fee revenues between now and the expiration of substantive certification for a total of $50,000. The municipality will dedicate 20% to administrative costs, 80% to render units more affordable and if sufficient resources are collected funding will be used for affordable housing activities, specifically the support of the local housing rehabilitation program. Any shortfall of funds will be offset by municipal funds.