[Amended 2-26-2004 by Ord. No. 2004-003; 4-8-2004 by Ord. No. 2004-05; 11-22-2004 by Ord. No. 2004-27; 12-22-2005 by Ord. No. 2005-35; 5-8-2008 by Ord. No. 2008-06]
A.
Purpose. The purpose of the mandatory development fee is to provide funding for the Township's Housing Element and Fair Share Plan approved by the governing body of the Township.
B.
Definitions.
(1) AFFORDABLE COUNCIL or COAH DEVELOPMENT FEES EQUALIZED ASSESSED VALUATION INCLUSIONARY DEVELOPMENT JUDGMENT OF RESPONSE MANDATORY DEVELOPMENT FEE MANDATORY FEE ORDINANCE SUBSTANTIVE CERTIFICATION
The following words used in this subsection are intended to have the same meaning as given to them by the New Jersey Supreme Court in the Mount Laurel II decision and as clarified or otherwise modified by subsequent decisions, if any, by a Court of competent jurisdiction, and N.J.A.C. 5:93-1.3,[1] if applicable:
A sales price or rent within the means of a low or moderate income household as defined in N.J.A.C. 5:93-7.4.[2]
The New Jersey Council on Affordable Housing.
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 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 as 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.
A residential development in which a substantial percentage of the housing units is provided for a reasonable range of low and moderate income households.
A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.
A fee paid pursuant to a Mandatory Fee Ordinance.
An ordinance which prohibits development pursuant to an existing permitted use in the zoning ordinance[3] without compelling the affected developer to contribute monies to the municipality's affordable housing trust fund.
A determination by COAH approving a municipality's housing element and fair share plan in accordance with the provisions of the Fair Housing Act and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six years in accordance with the terms and conditions therein.
(2)
All other terms contained herein shall be as set forth in the Municipal Land Use Act, N.J.S.A. 40:55D-1 et seq., and this chapter.
C.
Residential development fees: amount. All developers of residential major subdivisions shall pay a mandatory development fee equal to 1% of the equalized assessed valuation for each residential unit constructed. This mandatory fee shall be calculated as follows: 0.01% x equalized assessed valuation x number of units.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(5), then additional residential units realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% rather than the development fee of 1%. However, if the zoning on the site is changed during the two-year period preceding the filing of a "d" variance application, the density for the purposes of calculating the bonus development fee shall be the highest density permitted by right during the two years preceding the filing of the "d" variance application with the Little Egg Harbor Township Zoning Board of Adjustment.
D.
Non-Residential development fees: amount. All non-residential developers shall pay a mandatory development fee equal to 1.0% for new construction of less than 10,000 square feet of gross floor area or 2.0% for new construction greater than 10,000 square feet of gross floor area of the total equalized assessed valuation of the non-residential development, provided however, no development fee shall be required where the total equalized assessed value of the development is less than $15,000 as established by the Tax Assessor. This mandatory fee shall be calculated as follows: 1.0% (or 2.0%) x total equalized assessed valuation.
If a "d" variance is granted pursuant to N.J.SA. 40:55D-70d(4), then the additional floor area realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% rather than the development fee of 1.0% or 2.0%. However, if the zoning on a site has changed during the two-year period preceding filing of the "d" variance application, the 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 "d" variance application.
E.
Collection of fees.
(1)
50% of the total mandatory development fee owed by Little Egg Harbor Township, whether for residential or non-residential development, shall be paid prior to the issuance of any building permit required in connection with the development, and shall be calculated as follows:
(a)
For residential developments, the 50% payment required prior to the issuance of any building permit shall be calculated using an estimated equalized valuation of each residential unit as determined by the Little Egg Harbor Township Tax Assessor.
(b)
For non-residential developments, the 50% payment required prior to the issuance of any building permit shall be calculated using an estimated total equalized assessed valuation of the non-residential development as determined by the Little Egg Harbor Township Tax Assessor.
(2)
The remaining portion of the development fee shall be paid prior to the issuance of any Certificate of Occupancy for any development or any part thereof, whether residential or non-residential, and shall be calculated using the actual assessed valuation of the development as determined by the Little Egg Harbor Township Tax Assessor.
(3)
Because the initial payment required prior to the issuance of a building permit is calculated using an estimated assessed valuation based on estimates for construction costs, the following adjustments are permitted to compensate for differences between the estimated assessed valuation and the actual assessed valuation:
If the estimated assessed valuation used to calculate the initial 50% payment was over-estimated or under-estimated, causing the actual assessed valuation to be less than or greater than the estimated assessed valuation used to calculate the initial 50% payment, the developer's Certificate of Occupancy payment shall be equal to the difference between the actual assessed valuation and the initial 50% payment as determined by the Little Egg Harbor Township Tax Assessor.
F.
Eligible exactions, ineligible exactions and exemptions.
(1)
Inclusionary developments, as defined herein, are exempt from development fees.
(2)
Developments that have received preliminary or final approval, prior to the effective date of this chapter, are exempt from development fees during the effective period of said approval, unless the developer seeks a substantial change in the approvals granted.
(3)
Low and moderate income dwelling units shall be exempt from paying development fees.
(4)
Development that expands an existing structure shall pay a development fee. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.
(5)
Houses of worship, including, but not limited to, churches, temples, synagogues and other religious organizations which are exempt under 26 U.S.C.A. § 501(c)(3), are exempt from development fees.
G.
Housing trust fund.
(1)
All mandatory development fees collected pursuant to this section shall be deposited in the interest bearing escrow account entitled the "Affordable Housing Trust Fund:" Mandatory Fee Account. No money shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by COAH.
(2)
If COAH determines that Little Egg Harbor Township's spending is not in conformance with COAH's rules on development fees, COAH is authorized to direct the manner in which all development fees collected pursuant to this article shall be expended.
H.
Use of funds.
(1)
Money deposited in a housing trust fund may be used for any activity approved for addressing the Township'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; extensions and/or improvements of roads and infrastructures to low and moderate income housing sites; assistance designed to render units to be more affordable to low and moderate income households; and administrative costs necessary to implement the Township's housing element. The expenditure of all money shall conform to the spending plan approved by COAH.
(2)
At least 30% of the revenues collected from development fees collected pursuant to this chapter shall be devoted to rendering existing units more affordable to low and moderate income households unless exempt as per N.J.A.C. 5:93-8.16(c).[4] Examples of such activities include, but are not limited to, down payment and closing cost assistance, low interest loans and rental assistance.
[4]
Editor's Note: So in original.
(3)
Not more than 20% of the revenues collected from development fees collected pursuant to this chapter shall be expended on administrative expenses necessary to develop, revise or implement the housing element. Examples of eligible administrative activities include personnel, consultant services, space costs, consumable supplies and rental or purchase of equipment directly associated with plan development or plan implementation.