[HISTORY: Adopted by the Township Committee
of the Township of Pilesgrove as indicated in article histories. Amendments
noted where applicable.]
[Adopted 3-8-1977]
[Amended 10-13-81; 6-14-1988; 3-14-1989; 7-10-1990]
A.
The following fees shall be charged an applicant for
permit or review of an application for development by a municipal
agency:
(1)
Use permit: $10.
(2)
Temporary use permit: $25.
(3)
Conditional use: $400 plus review fee deposit.
(4)
Variance pursuant to N.J.S.A. 40:55D-70d (use variance):
$600 plus review fee deposit.
(5)
Any other type variance: $300.
(6)
Direction pursuant to N.J.S.A. 40:55D-35 or 40:55D-36
(building lot in bed or mapped street, etc., or not abutting improved
street): $300.
(8)
Appeals from the Zoning Board of Adjustment and the
Planning Board to governing body: $400.
(11)
Conceptual review fee: $150 (includes any miscellaneous
applications).
B.
Escrow fund fees.
(1)
Review fee deposit.
(a)
The review fee deposit is to be used to pay
the fees of any professional personnel retained or employed by the
township to assist in processing, reviewing and making recommendations
concerning the subject application. If at any time it becomes evident
that the escrow fund is or will become insufficient to cover all reasonable
fees for the required professional services, the applicant shall increase
the fund as determined by the reviewing agency. Any excess funds in
the escrow fund remaining after 45 days from the date action is taken
by the Zoning Officer with respect to the applicant shall be returned
to the applicant.
(b)
Whenever a review fee is required, the developer
shall deposit with the Township Treasurer a sum of money which the
Treasurer shall, in turn, deposit in a separate escrow account and
carry under the township's trust fund section of accounts on the books
of the township as an inspection fee escrow fund. The amount of money
so deposited, exclusive of all other fees, shall be as follows:
(2)
Inspection fees.
(a)
This escrow fund shall be used to pay the fees
of professional personnel employed to inspect and approve the construction
of the improvements for subdivision and site approval. Any excess
of funds in the escrow at the time when all improvements have been
finally accepted shall be returned to the developer. If at any time
it becomes evident that the escrow fund is or will be insufficient
to cover said inspection fees, the developer shall increase the fund
as required by the approving municipal agency.
(b)
Prior to final approval of the plat, the developer
is required to deposit with the Township Treasurer a sum of money
which the Township Treasurer shall, in turn, deposit in a separate
escrow account and carry under the township's trust fund section of
accounts on the books of the township as an inspection fee escrow
fund. The amount of money so deposited exclusive of all other fees
shall equal 4% of the cost of all improvements required as a condition
of subdivision approval as such cost is estimated by the Township
Engineer. However, there shall be a minimum inspection fee escrow
deposit of $300 even though the aforesaid computation produces a lesser
amount, unless there are no improvements required for subdivision
approval, in which case there shall be no inspection fee escrow fund
established.
All fees, unless otherwise specified, shall
be paid by the applicant or appellant to the Secretary or Clerk of
the municipal agency to which the application or appeal is being made
at the same time as his application is submitted or his appeal is
filed. Said fee shall then be turned over to the Municipal Treasurer
at the end of each month.
Whenever a term is used in this article which
is defined in the Municipal Land Use Law,[1] such term is intended to have the meaning set forth in
the definition of such term found in such statute, unless a contrary
intention is clearly expressed from the context of this article.
[1]
Editor's Note: See N.J.S.A. 40:55D-1 et seq.
[Adopted 12-9-2003 by Ord. No. 0224; amended
in its entirety 12-30-2008 by Ord.
No. 08-17]
A.
In Holmdel Builder's Association 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 (the
Act), N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject
to the Council on Affordable Housing's (COAH's) adoption of rules.
B.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2)
and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1
through 8.7), COAH is authorized to adopt and promulgate regulations
necessary for the establishment, implementation, review, monitoring
and enforcement of municipal affordable housing trust funds and corresponding
spending plans. Municipalities that are under the jurisdiction of
the Council or court of competent jurisdiction and have a COAH-approved
spending plan may retain fees collected from nonresidential development.
C.
This article establishes standards for the collection, maintenance,
and expenditure of development fees pursuant to COAH's regulations
and in accordance P.L. 2008, c. 46, §§ 8 and 32 through
38. 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, codified at N.J.A.C. 5:97-8.
A.
This article shall not be effective until approved by COAH or the
Court pursuant to N.J.A.C. 5:96-5.1, except that residential fees
may be collected pursuant to the previously approved fee ordinance
until such time as this article takes effect, and nonresidential fees
shall be collected in accordance with the Statewide Nonresidential
Development Fee Act, N.J.S.A. 40:55D-8.1 et seq.
B.
The Township of Pilesgrove shall not spend development fees until
COAH or the Court has approved a plan for spending such fees in conformance
with N.J.A.C. 5:97-8.10 and N.J.A.C. 5:96-5.3.
The following terms, as used in this article, shall have the
following meanings:
A development included in the Housing Element and Fair Share
Plan and includes, but is not limited to, an inclusionary development,
a municipal construction project or a one-hundred-percent affordable
development.
The New Jersey Council on Affordable Housing established
under the Act which has primary jurisdiction for the administration
of housing obligations in accordance with sound regional planning
consideration in the state.
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.
Money paid by a developer for the improvement of property
as permitted in N.J.A.C. 5:97-8.3.
The assessed value of a property divided by the current average
ratio of assessed to true value for the municipality in which the
property is situated, as determined in accordance with §§ 1,
5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
Those strategies that minimize the impact of development
on the environment, and enhance the health, safety and well-being
of residents by producing durable, low-maintenance, resource-efficient
housing while making optimum use of existing infrastructure and community
services.
A.
Imposed fees.
(1)
Within the Township of Pilesgrove district(s), residential developers,
except for developers of the types of development specifically exempted
below, shall pay a fee of 1.5% of the equalized assessed value for
residential development, provided no increased density is permitted.
(2)
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5)
(known as a "d" variance) has been permitted, developers may be required
to pay a development fee of 6% of the equalized assessed value for
each additional unit that may be realized. However, if the zoning
on a site has changed during the two-year period preceding the filing
of such a variance application, the base density for the 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 variance application.
B.
Eligible exactions, ineligible exactions and exemptions for residential
development.
(1)
Affordable housing developments and developments where the developer
has made a payment in lieu of on-site construction of affordable units
shall be exempt from development fees.
(2)
Developments that have received preliminary or final site plan approval
prior to the adoption of a municipal development fee ordinance shall
be exempt from development fees, unless the developer seeks a substantial
change in the approval. Where a site plan approval does not apply,
a zoning and/or building permit shall be synonymous with preliminary
or final site plan approval for this purpose. The fee percentage shall
be vested on the date that the building permit is issued.
(3)
Development fees shall be imposed and collected when an existing
structure undergoes a change to a more intense use, is demolished
and replaced, or is expanded, if the expansion is not otherwise exempt
from the development fee requirement. The development fee shall be
calculated on the increase in the equalized assessed value of the
improved structure.
(4)
Structural alterations that do not increase gross floor area of a
building or structure or increase the equalized assessed value of
a property shall be exempted from paying a development fee.
(5)
Nonprofit organizations constructing residential projects which have
received tax exempt status pursuant to Section 501(c)(3) of the Internal
Revenue Code, providing current evidence of that status is submitted
to the Municipal Clerk, together with a certification that services
of the organization are provided at reduced rates to those who establish
an inability to pay existing charges, shall be exempted from paying
a development fee.
(6)
Residential reconstruction projects resulting from fire, flood, or
natural disaster.
A.
Imposed fees.
(1)
Within all zoning districts, nonresidential developers, except for
developers of the types of development specifically exempted, shall
pay a fee equal to 2.5% of the equalized assessed value of the land
and improvements for all new nonresidential construction on an unimproved
lot or lots.
(2)
Nonresidential developers, except for developers of the types of
development specifically exempted, shall also pay a fee equal to 2.5%
of the increase in equalized assessed value resulting from any additions
to existing structures to be used for nonresidential purposes.
(3)
Development fees shall be imposed and collected when an existing
structure is demolished and replaced. The development fee of 2.5%
shall be calculated on the difference between the equalized assessed
value of the preexisting land and improvement and the equalized assessed
value of the newly improved structure, i.e., land and improvement,
at the time final certificate of occupancy is issued. If the calculation
required under this subsection results in a negative number, the nonresidential
development fee shall be zero.
B.
Eligible exactions, ineligible exactions and exemptions for nonresidential
development.
(1)
The nonresidential portion of a mixed-use inclusionary or market
rate development shall be subject to the 2.5% development fee, unless
otherwise exempted below.
(2)
The 2.5% fee shall not apply to an increase in equalized assessed
value resulting from alterations, change in use within existing footprint,
reconstruction, renovations and repairs.
(3)
Nonresidential developments shall be exempt from the payment of nonresidential
development fees in accordance with the exemptions required pursuant
to P.L. 2008, c. 46, as specified in the Form N-RDF "State of New
Jersey Nonresidential Development Certification/Exemption" Form. Any
exemption claimed by a developer shall be substantiated by that developer.
(4)
A developer of a nonresidential development exempted from the nonresidential
development fee pursuant to P.L. 2008, c. 46 shall be subject to it
at such time the basis for the exemption no longer applies, and shall
make the payment of the nonresidential development fee, in that event,
within three years after that event or after the issuance of the final
certificate of occupancy of the nonresidential development, whichever
is later.
(5)
If a property which was exempted from the collection of a nonresidential
development fee thereafter ceases to be exempt from property taxation,
the owner of the property shall remit the fees required pursuant to
this subsection within 45 days of the termination of the property
tax exemption. Unpaid nonresidential development fees under these
circumstances may be enforceable by the Township of Pilesgrove as
a lien against the real property of the owner.
A.
Upon the granting of a preliminary, final or other applicable approval
for a development, the applicable approving authority shall direct
its staff to notify the Construction Official responsible for the
issuance of a building permit.
B.
For nonresidential developments only, the developer shall also be
provided with a copy of Form N-RDF "State of New Jersey Nonresidential
Development Certification/Exemption" to be completed as per the instructions
provided. The developer of a nonresidential development shall complete
Form N-RDF as per the instructions provided. The Construction Official
shall verify the information submitted by the nonresidential developer
as per the instructions provided in the Form N-RDF. The Tax Assessor
shall verify exemptions and prepare estimated and final assessments
as per the instructions provided in Form N-RDF.
C.
The Construction Official responsible for the issuance of a building
permit shall notify the local Tax Assessor of the issuance of the
first building permit for a development which is subject to a development
fee.
D.
Within 90 days of receipt of that notice, the Municipal Tax Assessor,
based on the plans filed, shall provide an estimate of the equalized
assessed value of the development.
E.
The Construction Official responsible for the issuance of a final
certificate of occupancy notifies the local Assessor of any and all
requests for the scheduling of a final inspection on property which
is subject to a development fee.
F.
Within 10 business days of a request for the scheduling of a final
inspection, the Municipal Assessor shall confirm or modify the previously
estimated equalized assessed value of the improvements of the development;
calculate the development fee; and thereafter notify the developer
of the amount of the fee.
G.
Should the Township of Pilesgrove fail to determine or notify the
developer of the amount of the development fee within 10 business
days of the request for final inspection, the developer may estimate
the amount due and pay that estimated amount consistent with the dispute
process set forth in Subsection b of § 37 of P.L. 2008,
c. 46 (N.J.S.A. 40:55D-8.6).
H.
Fifty percent of the development fee shall be collected at the time
of issuance of the building permit. The remaining portion shall be
collected at the issuance of the certificate of occupancy. The developer
shall be responsible for paying the difference between the fee calculated
at building permit and that determined at issuance of certificate
of occupancy.
I.
Appeal of development fees.
(1)
A developer may challenge residential development fees imposed by
filing a challenge with the County Board of Taxation. Pending a review
and determination by the Board, collected fees shall be placed in
an interest-bearing escrow account by Township of Pilesgrove. Appeals
from a determination of the Board may be made to the Tax Court in
accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
(2)
A developer may challenge nonresidential development fees imposed
by filing a challenge with the Director of the Division of Taxation.
Pending a review and determination by the Director, which shall be
made within 45 days of receipt of the challenge, collected fees shall
be placed in an interest-bearing escrow account by Township of Pilesgrove.
Appeals from a determination of the Director may be made to the Tax
Court in accordance with the provisions of the State Tax Uniform Procedure
Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such
determination. Interest earned on amounts escrowed shall be credited
to the prevailing party.
A.
There is hereby created a separate, interest-bearing housing trust
fund to be maintained by the chief financial officer for the purpose
of depositing development fees collected from residential and nonresidential
developers and proceeds from the sale of units with extinguished controls.
B.
The following additional funds shall be deposited in the Affordable
Housing Trust Fund and shall at all times be identifiable by source
and amount:
(1)
Payments in lieu of on-site construction of affordable units;
(2)
Developer contributed funds to make 10% of the adaptable entrances
in a townhouse or other multistory attached development accessible;
(3)
Rental income from municipally operated units;
(4)
Repayments from affordable housing program loans;
(5)
Recapture funds;
(6)
Proceeds from the sale of affordable units; and
(7)
Any other funds collected in connection with Township of Pilesgrove's
affordable housing program.
C.
Within seven days from the opening of the trust fund account, Township
of Pilesgrove shall provide COAH with written authorization, in the
form of a three-party escrow agreement between the municipality, the
bank, and COAH, to permit COAH to direct the disbursement of the funds
as provided for in N.J.A.C. 5:97-8.13(b).
D.
All interest accrued in the housing trust fund shall only be used
on eligible affordable housing activities approved by COAH.
A.
The expenditure of all funds shall conform to a spending plan approved
by COAH. Funds deposited in the housing trust fund may be used for
any activity approved by COAH to address the Township of Pilesgrove's
fair share obligation and may be set up as a grant or revolving loan
program. Such activities include, but are not limited to: preservation
or purchase of housing for the purpose of maintaining or implementing
affordability controls, rehabilitation, new construction of affordable
housing units and related costs, accessory apartment, market to affordable,
or regional housing partnership programs, conversion of existing nonresidential
buildings to create new affordable units, green building strategies
designed to be cost saving and in accordance with accepted national
or state standards, purchase of land for affordable housing, improvement
of land to be used for affordable housing, extensions or improvements
of roads and infrastructure to affordable housing sites, financial
assistance designed to increase affordability, administration necessary
for implementation of the Housing Element and Fair Share Plan, or
any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through
8.9 and specified in the approved spending plan.
B.
Funds shall not be expended to reimburse Township of Pilesgrove for
past housing activities.
C.
At least 30% of all development fees collected and interest earned
shall be used to provide affordability assistance to low- and moderate-income
households in affordable units included in the municipal Fair Share
Plan. One-third of the affordability assistance portion of development
fees collected shall be used to provide affordability assistance to
those households earning 30% or less of median income by region.
(1)
Affordability assistance programs may include down payment assistance,
security deposit assistance, low-interest loans, rental assistance,
assistance with homeowners' association or condominium fees and
special assessments, and assistance with emergency repairs.
(2)
Affordability assistance to households earning 30% or less of median
income may include buying down the cost of low- or moderate-income
units in the municipal Fair Share Plan to make them affordable to
households earning 30% or less of median income.
(3)
Payments in lieu of constructing affordable units on site and funds
from the sale of units with extinguished controls shall be exempt
from the affordability assistance requirement.
D.
Township of Pilesgrove may contract with a private or public entity
to administer any part of its Housing Element and Fair Share Plan,
including the requirement for affordability assistance, in accordance
with N.J.A.C. 5:96-18.
E.
No more than 20% of all revenues collected from development fees
may be expended on administration, including, but not limited to,
salaries and benefits for municipal employees or consultant fees necessary
to develop or implement a new construction program, a Housing Element
and Fair Share Plan, and/or an affirmative marketing program. In the
case of a rehabilitation program, no more than 20% of the revenues
collected from development fees shall be expended for such administrative
expenses. Administrative funds may be used for income qualification
of households, monitoring the turnover of sale and rental units, and
compliance with COAH's monitoring requirements. Legal or other
fees related to litigation opposing affordable housing sites or objecting
to the Council's regulations and/or action are not eligible uses
of the Affordable Housing Trust Fund.
Township of Pilesgrove shall complete and return to COAH all
monitoring forms included in monitoring requirements related to the
collection of development fees from residential and nonresidential
developers, payments in lieu of constructing affordable units on site,
funds from the sale of units with extinguished controls, barrier-free
escrow funds, rental income, repayments from affordable housing program
loans, and any other funds collected in connection with Township of
Pilesgrove's housing program, as well as to the expenditure of
revenues and implementation of the plan certified by COAH or approved
by the Court. All monitoring reports shall be completed on forms designed
by COAH.
The ability for the Township of Pilesgrove to impose, collect
and expend development fees shall expire with its substantive certification
or judgment of compliance unless the Township of Pilesgrove has filed
an adopted Housing Element and Fair Share Plan with COAH or the Court,
has petitioned for substantive certification or filed a declaratory
action pursuant to § 313 of the New Jersey Fair Housing
Act, and has received COAH's or the Court's approval of
its development fee ordinance. If the Township of Pilesgrove fails
to renew its ability to impose and collect development fees prior
to the expiration of substantive certification or judgment of compliance,
it may be subject to forfeiture of any or all funds remaining within
its municipal trust fund. Any funds so forfeited shall be deposited
into the "New Jersey Affordable Housing Trust Fund" established pursuant
to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The
Township of Pilesgrove shall not impose a residential development
fee on a development that receives preliminary or final site plan
approval after the expiration of its substantive certification or
judgment of compliance, nor shall the Township of Pilesgrove retroactively
impose a development fee on such a development. The Township of Pilesgrove
shall not expend development fees after the expiration of its substantive
certification or judgment of compliance.