[HISTORY: Adopted by the Mayor and Council
of the Borough of Glassboro 12-30-2008 by Ord. No. 08-99.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Development regulations and zoning — See Ch. 107.
Uniform construction codes — See Ch. 203.
Housing standards — See Ch. 285.
[1]
Editor's Note: This ordinance also repealed
former Ch. 223, Development Fees, adopted 12-26-1995 by Ord. No. 95-27,
as, amended.
The following terms, as used in this chapter,
shall have the following meanings:
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 development.
The New Jersey Council on Affordable Housing established
under the Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the state.
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.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:97-8.3.[1]
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 §§ 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through c).
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.
[1]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
A.
Imposed fees.
(1)
Within all zoning districts of the Borough, residential
developers, except for developers of the types of development specifically
exempted below, shall pay a fee of 1.5% of the equalized assessed
value for residential development provided no increased density is
permitted.
(2)
When an increase in residential density pursuant to
N.J.S.A. 40:55D-70d(5) (known as a "d" variance) has been permitted,
residential 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.
(3)
Example: If an approval allows four units to be constructed
on a site that was zoned for two units, the fees could equal 1.5%
of the equalized assessed value on the first two units; and the specified
higher percentage up to 6% of the equalized assessed value for the
two additional units, provided 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 development.
(1)
Affordable housing developments 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)
Developments that have received preliminary or final
site plan approval prior to the adoption of this chapter shall pay
the residential development fee in effect at the time of these aforementioned
approvals, 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)
Development fees shall be imposed and collected when
an existing structure undergoes a change to a more intense use, is
demolished and replaced, or is expanded, if the expansion is not otherwise
exempt from the development fee requirement. The development fee shall
be calculated on the increase in the equalized assessed value of the
improved structure.
(4)
Developers of residential structures demolished and
replaced as a result of a natural disaster shall be exempt from paying
a development fee.
[Amended 6-27-2023 by Ord. No. 23-15]
(5)
Within duly designated redevelopment areas, residential
developers shall pay the development fee set forth in the redevelopment
agreement between the Borough and the developer.
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, 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 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 Glassboro as a lien
against the real property of the owner.
A.
Upon the granting of a preliminary, final or other
applicable approval for a development, the applicable approving authority
shall direct its staff to notify the construction official responsible
for the issuance of a building permit.
B.
For nonresidential developments only, the developer
shall also be provided with a copy of Form N-RDF "State of New Jersey
Non-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 in the
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 building permit shall notify the local tax assessor of the issuance
of the first building permit for a development which is subject to
a development fee.
D.
Within 90 days of receipt of that notice, the Gloucester
County Tax Assessor, based on the plans filed, shall provide an estimate
of the equalized assessed value of the development.
E.
The Construction Official responsible for the issuance
of a final certificate of occupancy notifies the local assessor of
any and all requests for the scheduling of a final inspection on property
which is subject to a development fee.
F.
Within 10 business days of a request for the scheduling
of a final inspection, the Gloucester County Assessor shall confirm
or modify the previously estimated equalized assessed value of the
improvements of the development; calculate the development fee; and
thereafter notify the developer of the amount of the fee.
G.
Should Glassboro 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 § 37 of P.L. 2008, c. 46 (N.J.S.A.
40:55D-8.6).
H.
Fifty percent of the development fee shall be collected
at the time of issuance of the building permit. The remaining portion
shall be collected at the issuance of the certificate of occupancy.
The developer shall be responsible for paying the difference between
the fee calculated at building permit and that determined at issuance
of certificate of occupancy.
I.
Appeal of development fees.
(1)
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 Glassboro. 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 Glassboro.
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.
A.
This section confirms that Glassboro previously created
an Affordable Housing Trust Fund which COAH approved in 1990. The
Affordable Housing Trust fund is 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 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)
Developer-contributed funds to make 10% of the adaptable
entrances in a townhouse or other multistory attached 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 the Borough
of Glassboro's affordable housing program.
C.
Glassboro shall provide COAH with written authorization,
in the form of a three-party escrow agreement between the municipality,
its bank and COAH, to permit COAH to direct the disbursement of the
funds as provided for in N.J.A.C. 5:97-8.13(b).[1]
[1]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
D.
All interest accrued in the Housing Trust Fund shall
only be used on eligible affordable housing activities approved by
COAH.
A.
The expenditure of all funds shall conform to a spending
plan approved by COAH. Funds deposited in the Housing Trust Fund may
be used for any activity approved by COAH to address Glassboro'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, rehabilitation, new construction of affordable housing units
and related costs, accessory apartment, market to affordable, or 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 designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through
5:97-8.9[1] and specified in the approved spending plan.
[1]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
B.
Funds shall not be expended to reimburse Glassboro
for past housing activities.
C.
At least 30% of all development fees collected and
interest earned 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 median income
by region.
(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.
(3)
Payments in lieu of constructing affordable units
on site and funds from the sale of units with extinguished controls
shall be exempt from the affordability assistance requirement.
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 consultant fees
necessary to develop or implement a new construction program, a Housing
Element and Fair Share Plan, and/or an affirmative marketing program.
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. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Legal or other fees
related to litigation opposing affordable housing sites or objecting
to the Council's regulations and/or action are not eligible uses of
the Affordable Housing Trust Fund.
Glassboro shall complete and return to COAH
all monitoring forms included in monitoring requirements related to
the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
funds from the sale of units with extinguished controls, barrier-free
escrow funds, rental income, repayments from affordable housing program
loans, and any other funds collected in connection with Borough of
Glassboro's housing program, as well as to the expenditure of revenues
and implementation of the plan certified by COAH. All monitoring reports
shall be completed on forms designed by COAH.
The ability for Glassboro to impose, collect
and expend development fees shall expire with its substantive certification
unless Glassboro has filed an adopted Housing Element and Fair Share
Plan with COAH, has petitioned for substantive certification, and
has received COAH's approval of its Development Fee Ordinance. If
Glassboro fails to renew its ability to impose and collect development
fees prior to the expiration of substantive certification, it may
be subject to forfeiture of any or all funds remaining within its
municipal trust fund. Any funds so forfeited shall be deposited into
the New Jersey Affordable Housing Trust Fund established pursuant
to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). Glassboro
shall not impose a residential development fee on a development that
receives preliminary or final site plan approval after the expiration
of its substantive certification or judgment of compliance, nor shall
Glassboro retroactively impose a development fee on such a development.
Glassboro shall not expend development fees after the expiration of
its substantive certification or judgment of compliance.
