Township of Teaneck, NJ
Bergen County
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Table of Contents
Table of Contents
Every development which increases the number of affordable housing units that must be addressed by the Township of Teaneck's housing element and fair share plan is subject to the following:
(a) 
Legislative intent. The legislative intent and recitals set forth in the preamble to Ordinance No. 3924 (adopting this section) are hereby adopted and incorporated by reference herein as if set forth herein at length.
(b) 
Applicability. The provisions of this section shall apply to the following developments, subject to the exemptions in Subsection (c) below:
(1) 
Any development which results in a net increase in the number of market-rate dwelling units in the Township of Teaneck.
(2) 
Any development which results in a net increase in the gross floor area of any nonresidential building in the Township of Teaneck of the following use groups, as defined by the International Building Code (IBC) [which has been incorporated by reference into the Uniform Construction Code (UCC)]:
Use Group Description*
B
Office buildings. Places where business transactions of all kinds occur. Includes banks, corporate offices, government offices, professional offices, car showrooms and outpatient clinics.
M
Mercantile uses. Buildings used to display and sell products. Includes retail stores, strip malls, shops and gas stations.
F
Factories where people make, process or assemble products. Includes automobile manufacturers, electric power plants, foundries and incinerators. F Use Group includes F1 and F2.
S
Storage uses. Includes warehouses, parking garages, lumberyards and aircraft hangers. S Group includes S1 and S2.
H
High hazard manufacturing, processing, generation and storage uses. H Group includes H1, H2, H4 and H5.
A1
Assembly uses, including concert halls and TV studios.
A2
Assembly uses, including casinos, nightclubs, restaurants and taverns.
A3
Assembly uses, including libraries, lecture halls, arcades, galleries, bowling alleys, funeral parlors, gymnasiums and museums but excluding houses of worship.
A4
Assembly uses, including arenas, skating rinks and pools.
E
Schools K through 12.
I
Institutional uses such as hospitals, nursing homes, assisted living facilities and jails. I Group includes I1, I2, I3 and I4.
R1
Hotels and motels.
*Note: The descriptions in the above table are not intended to be exhaustive, and additional uses are or may be included within the use group; in all cases, the IBC definitions control. The inclusion of any use in the above table is not to be construed to mean that such use is permitted in the Township of Teaneck or in any particular zoning district; such use shall only be permitted in accordance with the balance of the provisions in the Development Regulations Ordinance.
(c) 
Exemptions. Notwithstanding the provisions of Subsection (b) above, the following developments shall be exempt from the provisions of this section:
(1) 
Market-rate dwelling units within developments that provide affordable housing units in accordance with the housing element of the Township of Teaneck Master Plan and the Township's fair share plan regulations, in accordance with either the first- or second-round rules of the Council on Affordable Housing and in accordance with the applicable affordable housing requirements of the respective zone districts; provided, however, that such exemption shall only apply to the number of market-rate dwelling units in the development that do not exceed a ratio of four market-rate units for every one affordable unit in the development.
(2) 
Developments of federal, state, county and municipal governments.
(3) 
Developments that received all required approvals from the Planning Board and/or Board of Adjustment, as applicable, prior to the effective date of this section, including final subdivision, site plan, conditional use and/or variance approval.
(d) 
Developer's obligation. Prior to or as a condition precedent to the grant of any approval of a development application by the Planning Board, Board of Adjustment, Zoning Officer or Construction Official, as applicable, the developer shall be required to comply with the requirements of this section and to enter into an agreement with the Township Council, in order to address the affect of the development upon the Township's affordable housing obligation, in accordance with the following requirements:
(1) 
Residential development and residential portion of mixed residential-nonresidential development.
a. 
A net increase (new construction less demolition) of every eight market-rate dwelling units, or fraction thereof, shall increase the obligation of the Township of Teaneck by one affordable housing unit, or fraction thereof.
b. 
For every unit increase, or fraction thereof, in the Township's affordable housing obligation resulting from the development, the developer shall be required to increase the number of affordable housing units in the Township by an equal number, as set forth in Subsection (d)(1)c and d below.
c. 
For every whole unit of increase in the Township's obligation resulting from residential development or, in the case of mixed residential-nonresidential development, from the residential portion of the development, one affordable unit shall be developed on the site or tract being developed, in accordance with the applicable zoning regulations. Thus, for example, a nine-dwelling-unit development shall be required to be comprised of no more than eight market-rate dwelling units and at least one affordable dwelling unit.
d. 
For every fractional unit of increase in the Township's obligation resulting from the residential development or, in the case of mixed residential-nonresidential development, from the residential portion of the development, the developer shall have the option to develop an affordable unit on the site or tract being developed or at another location in the Township of Teaneck, in accordance with the applicable zoning regulations, and to claim a credit for any resulting fractional unit surplus as set forth in Subsection (d)(3) below and/or pay a fee to the Township in accordance with Subsection (f) of this section, below.
e. 
None of the foregoing shall be construed as increasing the permitted floor area ratio or density above that which the zoning regulations would otherwise permit for the development.
(2) 
Nonresidential development and nonresidential portion of mixed residential-nonresidential development.
a. 
A net increase (new construction less demolition) of every 25 estimated jobs, or fraction thereof, shall increase the obligation of the Township of Teaneck by one affordable housing unit, or fraction thereof. The number of estimated jobs shall be based on the gross floor area in square feet of new buildings or additions to existing buildings, less the gross floor area of any building to be demolished on the site, and on the use group of the development, in accordance with the following table:
Use
Description
Square Feet of Gross Floor Area Generating Obligation of One Affordable Unit
Jobs Per 1,000 Square Feet
B
Office buildings. Places where business trans- actions of all kinds occur. Includes banks, corporate offices, government offices, professional offices, car showrooms and out- patient clinics.
8,333
3
M
Mercantile uses. Buildings used to display and sell products. Includes retail stores, strip malls, shops and gas stations.
25,000
1
F
Factories where people make, process or assemble products. Includes auto- mobile manufacturers, electric power plants, foundries and incinerators. F Use Group includes F1 and F2.
12,500
2
S
Storage uses. Includes warehouses, parking garages, lumberyards and aircraft hangers. S Group includes S1 and S2.
125,000
0.2
H
High hazard manufact- uring, processing, generation and storage uses. H Group includes H1, H2, H3, H4 and H5.
25,000
1
A1
Assembly uses, including concert halls and TV studios.
12,500
2
A2
Assembly uses, including casinos, nightclubs, restaurants and taverns.
8,333
3
A3
Assembly uses, including libraries, lecture halls, arcades, galleries, bowling alleys, funeral parlors, gymnasiums and museums but excluding houses of worship.
8,333
3
A4
Assembly uses, including arenas, skating rinks and pools.
8,333
3
A5
Assembly uses, including bleachers, grandstands, amusement park structures and stadiums.
Exclude
Exclude
E
Schools K through 12
25,000
1
I
Institutional uses such as hospitals, nursing homes, assisted living facilities and jails. I Group includes I1, I2, I3 and I4.
12,500
2
R1
Hotels and motels.
31,250
0/8
U
Miscellaneous uses. Fences, tanks, barns, agricultural buildings, sheds, greenhouses, etc.
Exclude
Exclude
b. 
For every unit increase, or fraction thereof, in the Township's affordable housing obligation resulting from the development, the developer shall be required to increase the number of affordable housing units in the Township by an equal number, set forth in Subsection (d)(2) c and d below.
c. 
For every whole unit of increase in the Township's affordable housing obligation resulting from the nonresidential development or, in the case of mixed residential-nonresidential development, from the nonresidential portion of the development, the developer shall have the option to develop an affordable unit on the site or tract being developed, in the case of mixed residential-nonresidential development; develop an affordable unit at another location in the Township of Teaneck, in accordance with the applicable zoning regulations; and/or pay a fee to the Township in accordance with Subsection (f) of this section, below.
d. 
For every fractional unit of increase in the Township's obligation resulting from the nonresidential development or, in the case of mixed residential-nonresidential development, from the nonresidential portion of the development, the developer shall have the option to develop an affordable unit as set forth in Subsection (d)(2)c above, and to claim a credit or any resulting fractional unit surplus as set forth in Subsection (d)(3) below and/or pay a fee to the Township in accordance with Subsection (f) of this section, below.
e. 
None of the foregoing shall be construed as increasing the permitted floor area ratio or density above that which the regulations for the zone district would otherwise permit for the development.
(3) 
Surplus units; credits. As a means of addressing a fractional increase in the Township's affordable housing obligation, or for other reasons, a developer may provide more affordable housing units than required. In addition, the Township Council may negotiate with a developer to provide a subsidy for the provision of more affordable housing units than required. The following provisions shall apply:
a. 
Any developer that provides more affordable housing units than required, or fraction thereof, which units or fractions of units have not been subsidized by the Township, shall be credited with such surplus. If the Township or some other entity subsidized the creation of surplus units, the Township or such entity shall be credited with such surplus.
b. 
Credits for surplus units may be applied to a subsequent development by the same developer or may be sold or otherwise transferred to other developers, who may then apply such credits to a subsequent development in the Township of Teaneck.
c. 
The sale or other transfer of such credits shall require the approval of both parties to the transaction.
d. 
The Township Clerk shall maintain a record of the creation of surplus units and credits for the same; credits available to interested parties for sale or transfer; and prior sales or transfers of credits in the Township. The Clerk shall make such records available for public inspection upon request.
(e) 
Requirements for affordable housing units. All affordable housing units shall be subject to the requirements of the Development Regulations Ordinance that apply to comparable market-rate housing units of the same type in the same zone district. In addition, affordable housing units provided pursuant to this section shall be subject to the following requirements.
(1) 
All affordable units to be created shall be eligible for credit against the Township's affordable housing obligations and, to that end, shall comply with all applicable regulations of the New Jersey Council on Affordable Housing. No age-restricted affordable units and/or affordable sales units may be credited in excess of the number of such units permitted to be credited within the Township by such regulations.
(2) 
Affordable housing units, excluding such units to be funded by a payment pursuant to Subsection (f) below, shall be built in accordance with the following schedule:
Percentage of Market-rate Units Units Completed
Minimum Percentage of Low- and Moderate-IncomeCompleted
25
0
25 + 1 unit
10
50
50
75
75
90
100
(3) 
Affordable units shall utilize the same heating source as market units within the development.
(4) 
The developer, in cooperation with the Township Council, shall:
a. 
Demonstrate capacity to administer the units in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.
b. 
Demonstrate that the units will have a low/moderate-income split in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26. For example, in each affordable development, at least 50 percent of the restricted units within each bedroom distribution shall be low-income units and the remainder may be moderate-income units. Where an odd number of affordable units are required to be provided, a majority of the units shall be low-income units.
c. 
Demonstrate that the rents or sale prices of affordable units shall be established in accordance with the N.J.A.C.5:94-7 and with the Uniform Housing Authority Controls, N.J.A.C. 5:80-26. For example:
1. 
The maximum rent for affordable units within each affordable development shall be affordable to households earning no more than 60% of median income. The average rent for low- and moderate-income units shall be affordable to households earning no more than 52% of median income. The developers and/or municipal sponsors of restricted rental units shall establish at least one rent for each bedroom type for both low-income and moderate-income units which shall be affordable to households earning no more than 35% of median income.
2. 
The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70% of median income. Each affordable development must achieve an affordability average of 55% for restricted ownership units. In achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type, insofar as is possible given the number of affordable units in the development.
d. 
Demonstrate that the units will be affirmatively marketed in accordance with N.J.A.C. 5:94-7 and with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26;
e. 
Demonstrate that the units will have the appropriate controls on affordability in accordance with N.J.A.C. 5:94-7 and with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26; and
f. 
Demonstrate that the units will have the appropriate bedroom distributions in accordance with the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.
1. 
Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that:
[i] 
The combined number of efficiency and one-bedroom units is no greater than 20% of the total low- and moderate-income units;
[ii] 
At least 30% of all low- and moderate-income units are two bedroom units;
[iii] 
At least 20% of all low- and moderate-income units are three bedroom units; and
[iv] 
The remainder, if any, may be allocated at the discretion of the developer.
[v] 
Where there are an insufficient number of affordable units provided to meet the above bedroom distribution, the first unit shall be a two-bedroom unit, the second unit shall be a three-bedroom unit and the third unit shall be a one-bedroom unit.
2. 
Age-restricted low- and moderate-income units may utilize a modified bedroom distribution. At a minimum, the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the affordable development. The standard may be met by creating all one-bedroom units or by creating a two-bedroom unit for each efficiency unit.
g. 
Comply with all other applicable requirements of the substantive rules of the New Jersey Council on Affordable Housing, N.J.A.C. 5:94, and the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26.
(f) 
Payments in lieu of developing affordable housing. Only when permitted by Subsection (d)(1) and (d)(2) above, a developer may make a payment to the Township in lieu of developing affordable housing units. The following provisions shall apply to such payments:
(1) 
The amount of payments in lieu of constructing affordable units shall be negotiated between the Township Council and the developer. The amount of the payment shall be based upon the cost of the Township to create, or subsidize the creation of the same number, or fraction thereof, of affordable housing units within the Township as the increased obligation resulting from the development, using any of the methods permitted by the New Jersey Council on Affordable Housing (COAH) as set forth in Subsection (f)(2) below. Both hard and soft costs shall be included in the calculation. The Township Council may require the preparation of a pro forma to confirm that the payment is accurate and based upon realistic costs within the Township to create such affordable units, and the Council may submit such pro forma for review by a third party retained by the Council.
(2) 
Payments in lieu of constructing affordable units on site shall only be used to fund eligible affordable housing activities within the Township of Teaneck, limited to the following as described and regulated by COAH's substantive rules at N.J.A.C. 5:94-4.5, 5:94-4.6 and 5:94-4.8 through 5:94-4.15, provided that such activities are eligible for credit against the Township's affordable housing obligation, comply with all applicable requirements of COAH's substantive rules and comply with the zoning regulations of the Township of Teaneck:
a. 
New construction with an affordable housing component.
b. 
Municipally-sponsored and 100% affordable programs.
c. 
Alternative living arrangements.
d. 
Up to 10 accessory apartments within the Township.
e. 
Buy-down program.
f. 
Municipally-sponsored rental program.
g. 
ECHO units.
h. 
Assisted living residences.
i. 
Affordable housing partnership programs.
j. 
Expanded crediting opportunities.
(3) 
Payments in lieu of constructing affordable units shall be deposited in a separate interest-bearing housing trust fund or deposited in the housing trust fund established pursuant to N.J.A.C. 5:94-6.11(a) and Section 33-8(d)(6) of the Township Code and shall at all times be identifiable from development fees. No funds shall be spent by the Township until and unless COAH has approved a spending plan for such funds. The Township Clerk shall maintain a record of the amount deposited in the account, plus interest, and shall make such record available for public inspection upon request.
(4) 
In the event that a developer makes such a payment, but then does not proceed to develop the project that resulted in the affordable housing obligation, the developer may request a refund of the payment. Such request shall be made in writing to the Township Council. If requested, the Township shall refund such fee, plus any interest in the account resulting from the payment, less any administrative expenses required to administer the account. Any refund issued by the Township shall be construed as a failure of the applicant to satisfy a condition precedent to the development approval and shall therefore terminate any and all rights to such development. The developer may reinstate such rights by making a new payment, with the amount of such payment to be negotiated as set forth in Subsection (f)(1) above. The foregoing shall not be construed to extend or otherwise alter any rights to proceed with the development as established by the New Jersey Municipal Land Use Law, the rules of the New Jersey Council on Affordable Housing or other applicable law.
[Ord. No. 3924, 12-6-2005, § 2.]
(a) 
Purpose.
(1) 
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.
(2) 
Pursuant to P.L.2008, c.46, Section 8 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential 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.
(3) 
This section establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's regulations and in accordance with P.L.2008, c.46, Sections 8 and 32 through 38. Fees collected pursuant to this section shall be used for the sole purpose of providing low- and moderate-income housing. This section shall be interpreted within the framework of COAH's rules on development fees, codified at N.J.A.C. 5:97-8.
(b) 
Basic requirements.
(1) 
This section shall not be effective until approved by COAH pursuant to N.J.A.C. 5:96-5.1.
(2) 
The Township of Teaneck shall not spend development fees until COAH 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.
(c) 
Definitions. The following terms, as used in this section, shall have the following meanings:
AFFORDABLE HOUSING DEVELOPMENT
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.
COAH or the COUNCIL
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.
DEVELOPMENT FEE
Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3.
DEVELOPER
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.
EQUALIZED ASSESSED VALUE
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 Sections 1, 5, and 6 of P.L.1973, c.123 (N.J.S.A. 54:1-35a through 54:1-35c).
GREEN BUILDING STRATEGIES
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.
(d) 
Residential development fees.
(1) 
Imposed fees.
a. 
Within the R-S Residential Single-Family Detached, R-M Residential Multifamily, B-R Special Business-Residential, RR-M Redevelopment Residential Multifamily, R-TH Residential Townhouse, MX-1 Mixed Use-1, and MX-2 Mixed Use-2 Zoning Districts, 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.
b. 
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.
c. 
Example: If an approval allows four units to be constructed on a site that was zoned for two units, the fees could equal 1.5% of the equalized assessed value on the first two units; and 6% of the equalized assessed value for the two additional units, provided zoning on the site has not changed during the two-year period preceding the filing of such a variance application.
(2) 
Eligible exactions, ineligible exactions and exemptions for residential development.
a. 
Affordable housing developments and developments where the developer is providing for the construction of affordable units elsewhere in the municipality, and developments where the developer has made a payment in lieu of on-site construction of affordable units, shall be exempt from development fees.
b. 
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.
c. 
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.
d. 
Owner-occupied residential structures that were demolished and replaced as a result of a fire, flood or natural disaster shall be exempt from paying a development fee.
e. 
Within the R-SCH Residential Senior Citizen Housing District, residential developers shall be exempt from paying a development fee.
(e) 
Nonresidential development fees.
(1) 
Imposed fees.
a. 
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.
b. 
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.
c. 
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 section results in a negative number, the nonresidential development fee shall be zero.
(2) 
Eligible exactions, ineligible exactions and exemptions for nonresidential development.
a. 
The nonresidential portion of a mixed-use inclusionary or market-rate development shall be subject to the development fee of 2.5%, unless otherwise exempted below.
b. 
The fee of 2.5% shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs.
c. 
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 Form N-RDF, "State of New Jersey Non-Residential Development Certification/Exemption Form." Any exemption claimed by a developer shall be substantiated by that developer.
d. 
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 as 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.
e. 
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 section 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 Teaneck as a lien against the real property of the owner.
(f) 
Collection procedures.
(1) 
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.
(2) 
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF, State of New Jersey Non-Residential 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 Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided in Form N-RDF.
(3) 
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.
(4) 
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.
(5) 
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.
(6) 
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.
(7) 
Should the Township of Teaneck 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 Section 37 of P.L.2008, c.46 (N.J.S.A. 40:55D-8.6).
(8) 
The developer shall pay 100% of the calculated development fee amount prior to the municipal issuance of a final certificate of occupancy for the subject property.
(9) 
Appeal of development fees.
a. 
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 the Township of Teaneck. 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.
b. 
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 the Township of Teaneck. 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.
(g) 
Affordable Housing Trust Fund.
(1) 
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.
(2) 
The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identifiable by source and amount:
a. 
Payments in lieu of on-site construction of affordable units;
b. 
Developer-contributed funds to make 10% of the adaptable entrances in a townhouse or other multistory attached development accessible;
c. 
Rental income from municipally operated units;
d. 
Repayments from affordable housing program loans;
e. 
Recapture funds;
f. 
Proceeds from the sale of affordable units; and
g. 
Any other funds collected in connection with the Township of Teaneck's affordable housing program.
(3) 
Within seven days from the opening of the trust fund account, the Township of Teaneck 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).
(4) 
All interest accrued in the Housing Trust Fund shall only be used on eligible affordable housing activities approved by COAH.
(h) 
Use of funds.
(1) 
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 Teaneck'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.
(2) 
Funds shall not be expended to reimburse the Township of Teaneck for past housing activities.
(3) 
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.
a. 
Affordability assistance programs may include downpayment assistance, security deposit assistance, low-interest loans, rental assistance, assistance with homeowners' association or condominium fees and special assessments, and assistance with emergency repairs.
b. 
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.
c. 
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.
(4) 
The Township of Teaneck 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.
(5) 
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.
(i) 
Monitoring. The Township of Teaneck 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 the Township of Teaneck's housing program, as well as to the expenditure of revenues and implementation of the plan certified by COAH. All monitoring reports shall be completed on forms designed by COAH.
(j) 
Ongoing collection of fees. The ability for the Township of Teaneck to impose, collect and expend development fees shall expire with its substantive certification unless the Township of Teaneck has filed an adopted Housing Element and Fair Share Plan with COAH, has petitioned for substantive certification, and has received COAH's approval of its development fee ordinance. If the Township of Teaneck fails to renew its ability to impose and collect development fees prior to the expiration of substantive certification, 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 Section 20 of P.L.1985, c.222 (N.J.S.A. 52:27D-320). The Township of Teaneck 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 Teaneck retroactively impose a development fee on such a development. The Township of Teaneck shall not expend development fees after the expiration of its substantive certification or judgment of compliance.
[Ord. No. 4104, 12-9-2008, § 1; Ord. No. 4117, 2-3-2009, § 1.]