[Added 4-14-1997 by Ord. No. 1587; amended 10-26-2015 by Ord. No. 2292; 11-23-2020 by Ord. No. 2391]
The purpose of this article is to establish standards for the
collection, maintenance and expenditure of development fees pursuant
to applicable law. 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 applicable
law on development fees and on municipal obligations to provide a
realistic opportunity for the municipality's fair share of affordable
housing.
Developers of multifamily residential developments shall pay
a development fee of 1 1/2% of the equalized assessed value of
the development. When an increase in residential density in a multifamily
residential development pursuant to N.J.S.A. 40:55D(5) has been permitted,
the developer shall pay a development fee of 6% of the equalized assessed
value for each additional unit of housing that is realized.
A.
Imposed fees.
(1)
Within all zoning districts, 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
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 improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement,
at the time final certificate of occupancy is issued. If the calculation
required under this section results in a negative number, the nonresidential
development fee shall be zero.
B.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development.
(1)
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the 2.5% development fee, unless
otherwise exempted below.
(2)
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within existing footprint,
reconstruction, renovations and repairs.
(3)
Nonresidential developments shall be exempt from the payment
of nonresidential development fees in accordance with the exemptions
required pursuant to P.L. 2008, c. 46,[1] as specified in the Form N-RDF "State of New Jersey Non-Residential
Development Certification/Exemption" Form. Any exemption claimed by
a developer shall be substantiated by that developer.
[1]
Editor's Note: See N.J.S.A. 52:27D-329.1 et seq.
(4)
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.
(5)
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 section within 45 days of the termination of the property tax
exemption. Unpaid nonresidential development fees under these circumstances
may be enforceable by the Borough of Ridgefield as a lien against
the real property of the owner.
A.
Developers of affordable housing developments, developments where
the developer is providing for the construction of affordable units
elsewhere in the municipality shall be exempt from paying development
fees.
B.
Developers that expand an existing multifamily residential structure
for residential purposes shall pay a development fee. The development
fee shall be calculated based on the increase in the equalized assessed
value of the improved structure.
C.
Developers that have received preliminary or final approval prior
to the effective date of this article shall be exempt from paying
a development fee unless the developer subsequent to the original
approval seeks a substantial change in that approval.
D.
Developers of one- and two-family standalone structures are exempt
from paying development fees.
A.
Developers shall pay 50% of the calculated development fee to the
Borough of Ridgefield prior to the issuance of building permits. The
development fee shall be estimated by the Tax Assessor prior to the
issuance of building permits, and shall be paid as a precondition
to the issuance of building permits for the development.
B.
Developers shall pay the remaining fee to the Borough of Ridgefield
prior to the issuance of certificates of occupancy. Prior to the issuance
of certificates of occupancy, the Tax Assessor shall calculate the
equalized assessed value and the appropriate development fee. The
developer shall be responsible for paying the difference between the
fee previously paid prior to the issuance of building permits and
the total amount calculated by the Tax Assessor.
C.
Developers wishing to appeal the calculation of a development fee
pursuant to this article shall file an appeal with the Borough Clerk
within 20 days of receiving notice of the assessed fee. The appeal
shall be heard by the Mayor and Council, or its representative, within
60 days of filing. Pending the hearing and decision, the assessed
fees will be collected but held in a suspense account so as to not
be expended by the Borough until a decision on the appeal.
A.
There is hereby created an interest-bearing Housing Trust Fund to
be situated at a banking institution at the Borough's choosing, for
the purpose of receiving development fees from residential and nonresidential
developers. All development fees paid by developers pursuant to this
article shall be deposited in this fund. No money shall be expended
from this Housing Trust Fund unless the expenditure conforms to a
spending plan that has received whatever approvals are required by
existing law.
B.
The operation of the Borough's Housing Trust Fund shall be in accordance
with applicable law. The operation of this Housing Trust Fund shall
be amended as necessary, from time to time, based on applicable law.
A.
Money deposited in a housing trust fund may be used for any activity
deemed appropriate under applicable law for addressing the Borough
of Ridgefield'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 sites, assistance
designed to render units more affordable to low- and moderate-income
households and administrative costs necessary to implement the Borough
of Ridgefield's housing element. The expenditure of all money shall
conform to applicable legal standards.
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 assistance, low-interest loans and rental
assistance.
The following definitions should be added to or amended within
the current development ordinances:
A developer is the legal or beneficial owner 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 person having
an enforceable proprietary interest in such land.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH's rules.
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
by the Tax Assessor utilizing estimates for construction cost. Final
equalized assessed value will be determined at project completion
by the Municipal 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 judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
Residential housing consisting of three units or more.
A determination by an appropriate authority approving a municipality's
fair share plan in accordance with the provisions of applicable law
and the rules and criteria as set forth herein.
In the event of any inconsistency between the provisions of this section and any other section of Chapter 390, the provisions of this section shall prevail.
If any provision or portion of a provision of this ordinance
is held to be unconstitutional, preempted by federal or state law,
or otherwise invalid by any court of competent jurisdiction, the remaining
provisions of the ordinance shall not be invalidated and shall remain
in full force and effect.
This article shall take effect immediately upon final publication
as required by law.
