City of Englewood, NJ Article XVII Development Fees

[Added 3-13-2007 by Ord. No. 07-03]

§ 250-118 Purpose.

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.

§ 250-119 Definitions.

As used in this article, the following terms shall have the meanings indicated:

COAH

The New Jersey Council on Affordable Housing established under the Fair Housing Act of 1985.

DEVELOPMENT FEE

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.

EQUALIZED ASSESSED VALUE

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.

FINAL EQUALIZED ASSESSED VALUE

Will be determined at project completion by the Tax Assessor.

§ 250-120 Residential fees; nonresidential fees; additional fees.

A. Residential development fees.

(1) Within residential zoning districts, developers shall pay a development fee of 1% of the equalized assessed value for residential development.

(2) 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. 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. 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.

§ 250-121 Exemptions.

A. Developers of low- and moderate-income units shall be exempt from paying development fees.

B. Developers of existing residential structures shall be exempt from paying a development fee.

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. 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.

§ 250-122 Collection of fees.

A. 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. 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.

§ 250-123 Housing trust fund.

A. 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. 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.

§ 250-124 Use of funds.

A. 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. 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. 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.

§ 250-125 Monitoring.

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.

§ 250-126 Expiration of provisions.

This article shall expire if:

A. COAH dismisses or denies the City's petition for substantive certification.

B. COAH revokes substantive certification or this article.

C. 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.