[Adopted 5-30-2002 by Ord. 06-02]
In Holmdel Buildings Assn. 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 COAH development 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 chapter shall be interpreted within the framework of COAH's rules on development fees.
As used in this article, the following terms shall have the meanings indicated:
COAH
The New Jersey Council on Affordable Housing.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.
EQUALIZED ASSESSED VALUE
The value of a 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 required by law. Estimates at the time of 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.
JUDGMENT OF REPOSE
A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair-share obligation.
SUBSTANTIVE CERTIFICATION
A determination by COAH approving a municipality's housing element and fair-share plan in accordance with the provisions of the 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 contained therein.
A. 
Developers shall pay a development fee of 1/2 of 1% of the equalized assessed value of any eligible residential activity pursuant to § 72-5 of this article.
B. 
Where a density bonus has been permitted by rezoning or by variance, residential developers shall pay a development fee of 6% of the equalized assessed value for each additional unit permitted as a result of the density bonus. Example: If the rezoning permits two additional units to be constructed, developers shall pay 6% of the equalized assessed value on each additional unit permitted by the rezoning. On the remaining units, the developer shall pay a development fee of 1/2 of 1% of equalized assessed value. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the density for the purposes of calculating the bonus development fee shall be the highest permitted by right during the two-year period preceding the filing of the "d" variance application.
A. 
Developers shall pay a fee of 1% of equalized assessed value of eligible nonresidential activities pursuant to § 72-5 of this article.
B. 
Where a density bonus has been permitted by rezoning or by variance, nonresidential developers shall pay a development fee of 6% of the equalized assessed value for the additional square footage permitted as a result of the density bonus. Example: If the rezoning permits 1,000 additional square feet to be constructed, developers shall pay 6% of the equalized assessed value on the additional square footage permitted by the rezoning. On the remaining square footage, the developer shall pay a development fee of 1% of equalized assessed value. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the density for the purposes of calculating the bonus development fee shall be the highest permitted by right during the two-year period preceding the filing of the "d" variance application.
A. 
Developers of low- and moderate-income units shall be exempt from paying development fees.
B. 
Developers that expand 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
C. 
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.
D. 
Developments by governmental entities or agencies or by charitable or nonprofit entities shall be exempt from paying a development fee.
E. 
Development by owners of single-family or two-family homes that do not result in any additional dwelling units shall be exempt from paying a development fee.
A. 
Developers shall pay 50% of the calculated development fee to the Borough at the issuance of building permits.
B. 
Developers shall pay the remaining fee to the Borough at the issuance of certificates of occupancy. At the issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at certificate of occupancy and the amount paid at building permit.
A. 
There is hereby created an interest-bearing Housing Trust Fund in a bank to be designated by resolution of the Borough Council for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers pursuant to this article shall be deposited in this fund. No money shall be expended from the Housing Trust Fund unless the expenditure conforms to a spending plan approved by COAH.
B. 
If COAH determines that the Borough 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 governing body to the designated bank.
A. 
Money deposited in a Housing Trust Fund may be used for any activity approved by COAH for addressing the Borough's low- and moderate-income housing obligation. Such activities may include, but are not necessarily limited to, housing rehabilitation; new construction; the purchase of land for low- and moderate-income housing; extensions and/or improvements of roads and infrastructure to low- and moderate-income housing sites; assistance designated to render units to be more affordable to low- and moderate-income people; and administrative costs necessary to implement the Borough's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
B. 
At least 30% of the revenues collected shall be devoted to render units to be more affordable. Examples of such activities include, but are not limited to, down payment assistance, low-interest loans and rental assistance.
C. 
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.
D. 
Development fee revenues shall not be expended to reimburse the Borough for housing activities that preceded substantive certification or a judgment of repose.
This chapter shall expire if:
A. 
COAH dismisses or denies a petition for substantive certification by the Borough.
B. 
COAH revokes substantive certification or its certification of this chapter.
C. 
Substantive certification/judgment of repose expires prior to the Borough filing an adopted housing element with COAH, petitioning for substantive certification or receiving approval of this article.