[Repealed and replaced 11-13-2025 by Ord. No. 1656-20-25. Prior history includes: Ord. No. 1257-16-08, §§ 1 through 10.]
[11-13-2025 by Ord. No. 1656-20-25]
a. 
In Holmdel Builder's Association v. Holmdel Township, 121 N.J. 550 (1990), the New Jersey Supreme Court 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, subject to the adoption of Rules by the Council on Affordable Housing (COAH).
b. 
Pursuant to P.L. 2008, c. 46, Section 8 (C. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (C. 40:55-8.1 through 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 an approved Spending Plan may retain fees collected from nonresidential development.
c. 
This article established standards for the collection, maintenance, and expenditure of development fees pursuant to COAH'S regulations and in accordance P.L. 2008, c. 46, Sections 8 and 32-38. 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 rules on development fees, codified at N.J.A.C. 5:97-8.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
This article shall not be effective until approved by the Court or a successor agency to COAH.
b. 
The Borough of Little Ferry shall not spend development fees until the Court or a successor agency to COAH has approved a plan for spending such fees (Spending Plan) in conformance with N.J.A.C. 5:97-8.10.
[11-13-2025 by Ord. No. 1656-20-25]
As used in this article:
AFFORDABLE HOUSING DEVELOPMENT
Shall mean 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 housing development.
COAH OR THE COUNCIL
Shall mean the New Jersey Council on Affordable Housing established under the Act, which had primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the State.
DEVELOPER
Shall mean any person, partnership, association, company or corporation that is 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 person having an enforceable proprietary interest in such land.
DEVELOPMENT FEE
Shall mean money paid by a developer for the improvement of property as permitted at N.J.A.C. 5:97-8.3. and as required by N.J.S.A. 52:27D-329.2.
EQUALIZED ASSESSED VALUE
Shall mean the assessed value of a property divided by the current average ratio of assessed to true value for the municipality in which the property is situated, 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).
GREEN BUILDING STRATEGIES
Shall mean 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.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
Imposition of Fees.
1. 
Within the Borough of Little Ferry, all residential developers, except for developers of the types of developments specifically exempted below and developers of developments that include affordable housing, shall pay a fee of 1.5% of the equalized assessed value for all new residential development provided no increased density is permitted.
2. 
Where an increase in residential density is permitted pursuant to a "d" variance granted under N.J.S.A. 40:55D-70d(5), developers shall be required to pay a "bonus" development fee of 6% of the equalized assessed value for each additional unit that may be realized, except that this provision shall not be applicable to a development that will included affordable housing. 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 would equal 1.5% of the equalized assessed value on the first two units, and 6% of the equalized assessed value for the two additional units, provided that zoning on the site has not changed during the two-year period preceding the filing of such a variance application.
b. 
Eligible Exactions, Ineligible Exactions and Exemptions for Residential Developments.
1. 
Affordable housing developments and/or developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from the payment of development fees.
2. 
Developments that have received preliminary or final site plan approval prior to the adoption of this article shall be exempt from the payment of development fees, unless the developer seeks a substantial change in the original approval. Where site plan approval is not applicable, the issuance of a Zoning Permit and/or Construction Permit shall be synonymous with preliminary or final site plan approval for the purpose of determining the right to an exemption. In all cases, the applicable fee percentage shall be determined based upon the Development Fee Ordinance in effect on the date that the Construction Permit is issued.
3. 
Improvements or additions to existing one- and two-family dwellings on individual lots shall not be required to pay a development fee, but a development fee shall be charged for any new dwelling constructed as a replacement for a previously existing dwelling on the same lot that was or will be demolished, unless the owner resided in the previous dwelling for a period of one-year or more prior to obtaining a demolition permit.
4. 
Homes replaced as a result of a natural disaster such as a fire or a flood shall be exempt from the payment of a development fee.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
Imposition of Fees.
1. 
Within all zoning districts, nonresidential developers, except for developers of the types of developments specifically exempted below, 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. 
Within all zoning districts, nonresidential developers, except for developers of the types of development specifically exempted below, 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 pre-existing land and improvements and the equalized assessed value of the newly improved structure, i.e. land and improvements, and such calculation shall be made at the time a 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 Developments.
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% development fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within the existing building footprint, reconstruction, renovations and repairs.
3. 
Nonresidential developments shall be exempted from the payment of nonresidential development fees in accordance with the exemptions required pursuant to P.L. 2008, c. 46, 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.
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 as 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 Little Ferry as a lien against the real property of the owner.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
Upon the granting of a preliminary, final or other applicable approval for a development, the approving authority or entity shall notify or direct its staff to notify the Construction Official responsible for the issuance of a Construction Permit.
b. 
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF "State of New Jersey 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 by 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 responsible for the issuance of a Construction Permit shall notify the Borough Tax Assessor of the issuance of the first Construction Permit for a development which is subject to a development fee.
d. 
Within 90 days of receipt of such notification, the Borough Tax Assessor shall prepare an estimate of the equalized assessed value of the development based on the plans filed.
e. 
The Construction Official responsible for the issuance of a final Certificate of Occupancy shall notify the Borough Tax Assessor of any and all requests for the scheduling of a final inspection on a property which is subject to a development fee.
f. 
Within 10 business days of a request for the scheduling of a final inspection, the Borough Tax Assessor shall confirm or modify the previously estimated equalized assessed value of the improvements associated with the development; calculate the development fee, and thereafter notify the developer of the amount of the fee.
g. 
Should the Borough of Little Ferry 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 17 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
h. 
Except as provided in § 35-1505.a.3. above, 50% of the initially calculated development fee shall be collected at the time of issuance of the Construction Permit. The remaining portion shall be collected at the time of issuance of the Certificate of Occupancy. The developer shall be responsible for paying the difference between the fee calculated at the time of issuance of the Construction Permit and that determined at the time of issuance of the Certificate of Occupancy.
i. 
Appeal of Development Fees.
1. 
A developer may challenge residential 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 Little Ferry. 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.
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 Borough of Little Ferry. 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.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
There has previously been created a separate, interest-bearing Affordable Housing Trust Fund that will continue to be maintained by the Chief Financial Officer of the Borough of Little Ferry for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls.
b. 
The following additional funds shall 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. 
Funds contributed by developers to make 10% of the adaptable entrances in a townhouse or other multistory attached unit 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 Little Ferry's affordable housing program.
c. 
The Borough has previously provided COAH with written authorization, in the form of a three-party escrow agreement between the municipality, the bank with which the affordable housing fees are deposited by the Borough and maintained by said bank, and COAH. That authority now rests with the Court.
d. 
Interest accrued in the Affordable Housing Trust Fund shall only be used to fund eligible affordable housing activities approved by the Court or a successor agency to COAH.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
The expenditure of all funds shall conform to a Spending Plan approved by the Court or a successor agency to COAH. Funds deposited in the Affordable Housing Trust Fund may be used for any activity approved by the Court to address the Borough of Little Ferry'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; housing rehabilitation, new construction of affordable housing units and related costs; accessory apartments; a market to affordable program; 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 designated to increase affordability; administration necessary for implementation of the Housing Element and Fair Share Plan; and/or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through 8.9 and specified in the approved Spending Plan.
b. 
Except as specifically provided by Court order, funds shall not be expended to reimburse the Borough of Little Ferry for past housing activities.
c. 
At least 30% of all development fees collected and interest earned on such fees 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 the median income for Housing Region 1, in which Little Ferry is located.
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. The use of development fees in this manner may entitle the Borough of Little Ferry to bonus credits pursuant to N.J.A.C. 5:97-3.7.
3. 
Payments in lieu of constructing affordable housing units on site and funds from the sale of units with extinguished controls shall be exempt from the affordability assistance requirement.
d. 
The Borough of Little Ferry may contract with a private or public entity to administer any part of its Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:96-18.
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 consultants' fees necessary to develop or implement a new construction program, prepare a Housing Element and Fair Share Plan, and/or administer an affirmative marketing program.
1. 
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.
2. 
Administrative funds may be used for income qualifications of households, monitoring the turnover of sale and rental units, and compliance with COAH's or the Court's monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council's regulations and/or actions are not eligible uses of the Affordable Housing Trust Fund.
f. 
Court approval of Little Ferry's spending plan constitutes a "commitment" on the part of The Borough of Little Ferry for expenditure of funds pursuant to N.J.S.A. 52:27D-329.2 and -329.3, with the four-year time period for expenditure designated pursuant to those provisions to commence with the entry of a final Judgment of Repose in accordance with the provisions of In re Tp. Of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (Aff'd 442 N.J. Super. 563.)
[11-13-2025 by Ord. No. 1656-20-25]
Beginning on August 9, 2023, and on every August 9 thereafter through July 2, 2025, the Borough shall provide annual reporting of the status of all affordable housing activity within the municipality through posting on the municipal website, with a copy of such posting provided to Fair Share Housing Center, using forms previously developed for this purpose by the Council on Affordable Housing or any other forms endorsed by the Special Master and Fair Share Housing Center.
[11-13-2025 by Ord. No. 1656-20-25]
a. 
The ability for the Borough of Little Ferry to impose, collect and expend development fees shall expire with the expiration of its Judgment of Compliance unless the Borough of Little Ferry has first filed an adopted Housing Element and Fair Share Plan with COAH or the Court, and has petitioned substantive certification or a Declaratory Judgment of Compliance.
b. 
If the Borough of Little Ferry fails to renew its ability to impose and collect development fees prior to the expiration of its Judgment of Compliance, it may be subject to forfeiture of any or all funds remaining within its Affordable Housing Trust Fund. Any funds to be 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).
c. 
The Borough of Little Ferry shall not impose a residential development fee on a development that receives preliminary or final site plan approval after the expiration of its Judgment of Compliance, nor shall the Borough of Little Ferry retroactively impose a development fee on such a development. The Borough of Little Ferry also shall not expend any of its collected development fees after the expiration of its Judgment of Compliance.