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]
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.