[Added 3-13-2007 by Ord. No. 07-03]
In Holmdel Builders Association v. Holmdel, 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 Committee on Affordable
Housing 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 article 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:
The New Jersey Council on Affordable Housing established
under the Fair Housing Act of 1985.
Money paid by an individual, person, partnership, association,
company, or corporation for the improvement of property as permitted
by COAH rules and regulations, N.J.A.C. 5:94-6 et seq.
The value of property determined by the Municipal Tax Assessor
through a process designed to ensure that all property in the City
of Englewood is assessed at the same assessment ratio or ratios required
by law. Estimates at the time of a construction permit may be obtained
by the Tax Assessor utilizing estimates for construction cost.
Will be determined at project completion by the Tax Assessor.
A.Â
Residential development fees.
(1)Â
Within residential zoning districts, developers shall pay a
development fee of 1% of the equalized assessed value for residential
development.
(2)Â
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(5),
then the 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 a site has changed during the two-year period preceding the filing
of the "d" variance application, the density for 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.
B.Â
Nonresidential development fees. All nonresidential developers shall
pay a development fee of 2% of the equalized assessed value for nonresidential
development. If a "d" variance is granted pursuant to N.J.S.A. 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% of the equalized assessed value of the nonresidential development.
C.Â
Additional development fees. The City of Englewood may provide for
additional development fees as allowed by N.J.S.A. 5:94-6 et seq.,
as currently adopted or as may be amended in the future.
A.Â
Developers of low- and moderate-income units shall be exempt from
paying development fees.
B.Â
Developers of existing residential structures shall be exempt from
paying a development fee.
C.Â
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.Â
Developers of any church, library, school, college, governmental
facility, hospital for humans, nursing home, or public utility shall
be exempt from paying a development fee.
A.Â
Developers shall pay $500 to the City of Englewood at the issuance
of building permits. The developer shall submit to the Housing Officer
an estimate of the assessed value of the new construction and lot
to be verified, if required, by the Tax Assessor.
B.Â
Developers shall pay the remaining fee to the City of Englewood upon
the issuance of certificates of occupancy. At the issuance of certificates
of occupancy, the Tax Assessor shall calculate the equalized assessed
value, and the developer shall submit the Homeowner's Warranty Act
evaluation to the Assessor. The developer (or owners upon default)
shall be responsible for paying the difference between the fee calculated
at certificate of occupancy and the amount paid at building permit,
which amount shall be paid as a condition of issuance of the certificate
of occupancy.
A.Â
There is hereby created a separate interest-bearing housing trust
fund in the name of the City of Englewood for the purpose of receiving
development fees from 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.Â
If COAH determines that the City of Englewood 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 City Council.
A.Â
Money deposited in the housing trust fund, including all accrued
interest, may be used for any activity approved by COAH for addressing
the City of Englewood'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 infrastructure to low- and moderate-income
housing sites, assistance designed to render units more affordable
to low- and moderate-income households, and administrative costs necessary
to implement the City of Englewood's housing element. The expenditure
of all money shall conform to a spending plan approved by COAH.
B.Â
At least 30% of the revenues collected shall be devoted to render
units more affordable. Examples of such activities include, but are
not limited to, down payment, closing cost assistance, low-interest
loans, and rental assistance. No more than 20% of the revenues collected
each year shall be expended on administrative costs necessary to develop,
revise, or implement the housing plan element of the City of Englewood
Master Plan. 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.
C.Â
Development fee revenue shall not be expended to reimburse the City
of Englewood for housing activities that preceded a first or second
round of substantive certification.
The City of Englewood shall complete and return to COAH all
monitoring forms included in the annual monitoring report related
to the collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
and funds from the sale of units with extinguished controls, and the
expenditure of revenues and implementation of the plan certified by
COAH. All monitoring reports shall be completed on forms designed
by COAH.
This article shall expire if:
A.Â
COAH dismisses or denies the City's petition for substantive certification.
B.Â
COAH revokes substantive certification or this article.
C.Â
The substantive certification expires prior to the City's filing
an adopted housing element with COAH, petitioning for substantive
certification, or receiving COAH's approval of this article.