[Adopted 11-27-2000]
In Holmdel Builder's Ass'n 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 Council on Affordable Housing's (COAH) adoption of rules. The purpose of this article is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's rules. 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.
As part of the development approval process, the Township shall collect a fee on new residential development within the Township for the purpose of contributing to the costs associated with the Township's development program.
A. 
Residential development fee. Within all zones, developers shall pay a development fee of 1% of the equalized assessed value of each housing unit, provided no increase in density is permitted. In addition, the Township shall assess a development fee of 1% of the equalized assessed value of the improvement for any substantial improvement to an existing housing unit.
[Amended 10-11-2006[1]]
[1]
Editor's Note: This ordinance also provided that it would be null and void if the Township failed to petition for third-round substantive certification pursuant to N.J.A.C. 5:94-6.14(c)2.
B. 
Exemptions.
(1) 
No fee will be assessed on the rehabilitation of substandard units or the construction of accessory apartments for occupancy by low- and moderate-income units, or upon ECHO accessory residential dwelling units.
[Amended 2-10-2010 by Ord. No. 2010-01-01]
(2) 
No fee will be assessed on any new affordable housing constructed within the Township in accordance with the rules and restrictions for such housing imposed by COAH.
(3) 
No fee will be assessed on construction by nonprofit organizations.
(4) 
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 seeks a substantial change in the approval.
(5) 
Any improvement to a residential unit that has an equalized value of $20,000 or less shall not be subject to the fee.
C. 
Collection of fees.
(1) 
Fifty percent of the calculated development fee shall be paid at the issuance of building permits. The development fee shall be estimated by the Construction Code Official prior to the issuance of building permits based on the estimated equalized assessed value of each new housing unit.
(2) 
The remaining fee shall be paid to the Township as a precondition of the issuance of a certificate of occupancy. Prior to the issuance of a certificate of occupancy, the Tax Assessor shall calculate the equalized assessed value or increase in equalized assessed value and the appropriate development fee. The remaining development fee shall be the difference between the fee calculated prior to the issuance of the certificate of occupancy and the amount paid at the time of the issuance of the building permit.
D. 
Housing trust fund.
(1) 
There is hereby created an interest-bearing housing trust fund bank account in the Summit Bank for the purpose of receiving development fees from residential developers. All development fees paid by developers pursuant to this article shall be deposited in this fund. No money shall be expended from the development fund unless the expenditure conforms to a spending plan approved by COAH.
(2) 
If COAH determines that Alexandria Township 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. Such authorization is pursuant to this article, COAH's rules on development fees and the written authorization from the Township Committee to the designated bank.
E. 
Disposition and use of collected funds.
(1) 
Money deposited from the development fee in the Township's housing trust fund may be used for any activity approved by COAH for addressing the Township's low- and moderate-housing obligation. Such activities may include, but are not limited to, housing rehabilitation, the construction of accessory apartments, regional contribution agreements and the administrative costs necessary to implement the Township's development program. The expenditure of all money shall conform to a spending plan approved by COAH.
(2) 
At least 30% of the development fee revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to, low-interest loans.
(3) 
No more than 20% of the revenues shall be expended on administrative costs 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 implementation.
(4) 
Development fee revenues shall not be expended to reimburse the Township of Alexandria for housing activities that preceded substantive certification.
F. 
Expiration of development fee article. This development fee article shall expire if:
(1) 
COAH dismisses or denies Alexandria Township's petition for substantive certification.
(2) 
COAH revokes substantive certification or its certification of this development fee article.
(3) 
Substantive certification expires prior to Alexandria Township's filing with COAH an adopted housing element, petitioning for substantive certification or receiving COAH's approval of this development fee article.