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.
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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.
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
|
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Year 1
|
3 units
|
$30,000
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Year 2
|
2 units
|
$20,000
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Year 3
|
1 unit
|
$10,000
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Year 4
|
1 unit
|
$10,000
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Year 5
|
1 unit
|
$10,000
|
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8 Total
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$80,000
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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.