[Added 3-14-2006 by Ord. No. 2006-02]
A.Â
Purpose. 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 COAH rules. The purpose of this article is to establish
standards for 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.
B.Â
Residential development fees. All residential development
shall pay a fee of 1% of equalized assessed value for any eligible
residential development.
C.Â
Nonresidential development fees. All nonresidential
development shall pay a fee of 2% of equalized assessed value for
any eligible nonresidential development.
D.Â
Eligible development, ineligible development and exemptions.
(1)Â
Developers of low- and moderate-income units and inclusionary
housing units shall be exempt from paying development fees.
(2)Â
Developers that have received municipal approvals
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.
(3)Â
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.
E.Â
Collection of fees.
(1)Â
Developers shall pay 50% of the calculated development
fee to the Township at the issuance of building permits. The development
fee shall be estimated by the tax assessor prior to the issuance of
building permits.
(2)Â
Developers shall pay the remaining fee to the Township
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.
There is hereby created an interest-bearing
Housing Trust Fund for the purpose of receiving development fees from
residential and nonresidential development. All development fees paid
by developers pursuant to this article shall be deposited in this
fund.
A.Â
Money deposited in a Housing Trust Fund may be used
for any activity approved by COAH for addressing the Township's low-
and moderate-income housing obligation. Such activities may include,
but are not necessarily limited to: housing rehabilitation and administrative
costs necessary to implement Independence Township's housing element.
The expenditure of all money shall conform to a spending plan approved
by COAH.
B.Â
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: housing consultant services; personnel; consultant services;
space costs; consumable supplies; and rental or purchase of equipment.
C.Â
Development fee revenues shall not be expended to
reimburse Independence Township for housing activities that preceded
substantive certification.
A.Â
COAH dismisses or denies Independence Township petition
for substantive certification;
B.Â
COAH revokes substantive certification or its certification
of this article;
C.Â
Substantive certification expires prior to Independence
Township filing an adopted housing element with COAH, petitioning
for substantive certification or receiving COAH's approval of this
article.
As used in this article, the following terms
shall have the meanings indicated:
The New Jersey Council on Affordable Housing.
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.
The division of a parcel of land into two or more parcels,
the construction, reconstruction, conversion, structural alteration,
relocation, or enlargement of any building or other structure except
minor construction as herein defined, or of any mining, excavation
or landfill, and any use of change in the use of any building or other
structure, or land or extension of use of land, for which permission
may be required pursuant to this chapter.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property.
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.
Which shall be exempt from the development fees provided
herein and shall be defined as any construction activity relating
to an existing residential structure that will not result in an increase
in the square foot calculation of the building footprint by more than
500 square feet or enhancements to an existing residential structure
such as the construction of a deck, porch, patio, sidewalks or walkways.
A determination by COAH approving a municipality's housing
element and fair share plan in accordance with the provisions of the
Fair Housing 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.
