[HISTORY: Adopted by the Mayor and Borough Council of the Borough of Merchantville as indicated in article histories. Amendments noted where applicable.]
[Adopted 8-16-2016 by Ord. No. 16-10]
ATTACHMENTS
Attachment 1 - Exhibit E Spending Plan
This article establishes standards for the collection, maintenance, and expenditure of development fees for the sole purpose of providing low- and moderate-income housing. It also authorizes the creation of an Affordable Housing Trust Fund.
A. 
Imposed fees.
(1) 
Residential dwelling units. In all zoning districts, all new residential dwelling units shall pay a development fee of 1.5% of the equalized assessed value of any new residential development, provided no increased residential density is approved.
(2) 
Increased dwelling unit density. When an increase in residential density is approved pursuant to N.J.S.A. 40:55D-70d(5), developers shall be required to 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.
B. 
Exemptions and waivers.
(1) 
Affordable units. Affordable housing developments, developments where the developer is providing for the construction of affordable units elsewhere in the municipality, and developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from development fees.
(2) 
Grandfather clause. Developments that have received preliminary or final site plan approval prior to the adoption of the municipal development fee ordinance shall be exempt from development fees, 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 or final site plan approval for this purpose. The fee percentage shall be vested on the date that the building permit is issued.
(3) 
Demolition and reconstruction. Residential structures demolished and replaced shall be exempt from paying a development fee.
(4) 
Additions and alternations. Additions and alterations to existing residential dwelling units shall be exempt from the development fee, unless the construction results in a net gain in the number of residential dwelling units. In the event the addition or alteration results in a net gain in the number of residential dwelling units, the development fee shall be based on the increase in the equalized assessed value of the improved structure.
(5) 
Redevelopment areas. Borough Council may waive all or a portion of the residential development fee for new residential development if:
(a) 
The project is located in a designated area in need of redevelopment;
(b) 
The applicant can demonstrate that the project will be financially infeasible if it is required to pay residential development fees; and
(c) 
The proposed development is consistent with the adopted redevelopment plan.
A. 
Purpose. This section is intended to be consistent with the Statewide nonresidential development fees, as amended, as set forth in (N.J.S.A. 40:55D-8.1 through 40:55D-8.7).
B. 
Imposed fees.
(1) 
New construction. In all zoning districts, new nonresidential development 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) 
Expansion. Nonresidential development expansion shall pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures.
(3) 
Demolition and reconstruction. Nonresidential development fees shall also 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.
(4) 
Mixed-use buildings. The nonresidential portion of a mixed-use inclusionary or market rate development shall be subject to the 2.5% development fee, unless otherwise exempted.
C. 
Exemptions.
(1) 
Alterations; change in use. The 2.5% fee shall not apply to an increase in equalized assessed value resulting from alterations, renovations, repairs, and changes in use within existing footprint.
(2) 
Houses of worship and educational uses. 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 exemption shall be exempt from the imposition of a nonresidential development fee, subject to the requirements of N.J.S.A. 40:55D-8.4.
(3) 
Parking lots and parking structures. Parking lots and parking structures, regardless of whether it is constructed in conjunction with a nonresidential development, such as an office building, or whether it is developed as an independent nonresidential development.
(4) 
Public amenities. 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, which are developed in conjunction with, or funded by a nonresidential developer.
(5) 
Nonprofit hospital or a nursing home facility. Nonresidential constructing resulting from a relocation of, or an on-site improvement to, a nonprofit hospital or nursing home facility.
D. 
Inconsistency. To the extent that this article may be inconsistent with any provisions of the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), this article is superseded to the extent of such inconsistencies.
The construction official responsible for the issuance of a building permit shall notify the local Tax Assessor of the issuance of the first building permit for a development which may be subject to an affordable housing development fee. Within 90 days of receipt of that notice, the Municipal Tax Assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development. The construction official responsible for the issuance of a final certificate of occupancy shall notify the local Tax Assessor of any and all requests for the scheduling of a final inspection on property which may be subject to a nonresidential development fee. Within 10 business days of a request for the scheduling of a final inspection, the Municipal Assessor shall confirm or modify the previously estimated equalized assessed value of the improvements, calculate the development fee, and thereafter notify the developer of the amount of the development fee. Should the municipality 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 below in § 3-5.
A. 
Residential development fees. A developer may challenge residential development fees imposed by filing a challenge with the 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 Borough of Merchantville. Appeals from a determination of the Board may be made to the Tax Court in accordance with the provisions of the State Tax Uniform 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.
B. 
Nonresidential development fees. 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 Borough of Merchantville. Appeals from a determination of the Director may be made to the Tax Court in accordance with the provisions of the State Tax Uniform 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.
The development fee shall be paid directly to the municipality prior to the issuance of a certificate of occupancy for such development. A final certificate of occupancy shall not be issued for any residential or nonresidential development subject to this article until such time as the fee imposed has been paid by the developer. A developer may deposit with the appropriate entity the development fees as calculated by the municipality under protest, and the local Code Enforcement Official shall issue the certificate of occupancy provided that the construction is otherwise eligible for a certificate of occupancy. All fees must be deposited in a separate interest-bearing account for the purposes of affordable housing, known as the "Borough's Affordable Housing Trust Fund."
There is hereby created a separate, interest-bearing Housing Trust Fund to be maintained by the Chief Financial Officer for the purpose of depositing development fees collected from residential and nonresidential developers and other activities that generate affordable housing funds, including, but not limited to, proceeds from the sale of affordable units, rental income from municipally operated units, repayments from affordable housing program loans, recapture funds, and any other funds collected in connection with the Borough of Merchantville's Affordable Housing Program All interest accrued in the Housing Trust Fund shall only be used on eligible affordable housing activities.
Release of the funds requires the adoption of a Council resolution in accordance with the Borough's adopted spending plan. Once a request is approved, the Municipal Chief Financial Officer releases the revenues from the Trust Fund for the specific use, as per the governing body's resolution. Funds shall not be expended to reimburse the Borough for past housing activities.