[HISTORY: Adopted by the Borough Council of the Borough of
Carteret as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Land use and development — See Ch. 160.
[Adopted 10-23-2008 by Ord. No. 08-36]
This article establishes standards for the collection, maintenance,
and expenditure of development fees which shall be used for the sole
purpose of providing low- and moderate-income housing. This article
shall be interpreted within the framework of applicable law on development
fees.
The Borough of Carteret shall not spend development fees until
it decides to seek COAH approval for a plan for spending such fees
and the Borough of Carteret has voluntarily sought any substantive
certification from COAH or a judgment of compliance.
The following terms, as used in this article, shall have the
following meanings:
A development included in any adopted 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.
Funds paid by an individual, person, partnership, association,
company or corporation for the improvement of property as provided
for herein.
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 issuance of a building permit may be obtained
utilizing estimates for construction cost. Final equalized assessed
value shall be determined at project completion by the municipal Tax
Assessor.
A.
Within any zoning district, nonresidential developers shall pay a
fee of 2 1/2% of the equalized assessed value for nonresidential
development.
B.
If an increase in floor area ratio is approved 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) shall incur a bonus
development fee of 6% of the equalized assessed value for nonresidential
development. However, if the zoning on a site has changed during the
two-year period preceding the filing of such a variance application,
the base floor area for the purposes of calculating the bonus development
fee shall be the highest floor area permitted by right during the
two-year period preceding the filing of the variance application.
A.
Affordable housing developments shall be exempt from development
fees. All other forms of new construction shall be subject to development
fees, unless exempted below.
B.
Developments that have received preliminary or final 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.
C.
Development fees shall be imposed and collected when an existing
structure is expanded or undergoes a change to a more intense use.
The development fee shall be calculated on the increase in the equalized
assessed value of the improved structure.
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.
Imposed and collected development fees that are challenged shall
be placed in an interest-bearing escrow account by the Borough of
Carteret. If all or a portion of the contested fees are returned to
the developer, the accrued interest on the returned amount shall also
be returned.
A.
There is hereby created a separate, interest-bearing housing trust
fund for the purpose of depositing development fees collected from
nonresidential developers. All development fees paid by developers
pursuant to this article shall be deposited into this fund.
B.
No funds shall be expended from the Affordable Housing Trust Fund
unless the expenditure conforms to a spending plan approved by COAH,
or as may otherwise be permitted by law. All interest accrued in the
housing trust fund shall only be used on eligible affordable housing
activities.
A.
Funds deposited in the housing trust fund may be used for any activity
approved by COAH to implement an affordable housing program adopted
by the Borough. Such activities include, but are not limited to: rehabilitation,
new construction, ECHO housing, purchase of land for affordable housing,
improvement of land to be used for affordable housing, purchase of
housing, extensions or improvements of roads and infrastructure to
affordable housing sites, financial assistance designed to increase
affordability, or administration necessary for implementation of such
affordable housing program. The expenditure of all funds shall conform
to an adopted and approved spending plan.
B.
Funds shall not be expended to reimburse the Borough of Carteret
for past housing activities.
C.
After subtracting development fees collected to finance a rehabilitation
program or a new construction project that are included in the Borough
of Carteret's affordable housing program, at least 30% of the
balance remaining shall be used to provide affordability assistance
to low- and moderate-income households in affordable units included
in the municipal 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 downpayment assistance,
security deposit assistance, low-interest loans, and rental assistance.
(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 third round 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.
The Borough of Carteret may contract with a private or public entity
to administer any part of its affordable housing plan, including the
requirement for affordability assistance.
E.
No more than 20% of the revenues collected from development fees
each year shall 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,
any Housing Element and Fair Share Plan to be prepared by the Borough,
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 established
monitoring requirements. Development fee administrative costs are
calculated and may be expended at the end of each year or upon receipt
of the fees.
The Borough of Carteret shall establish a monitoring program
and issue monitoring forms related to the collection of development
fees from nonresidential developers and the expenditure of revenues
and implementation of the Borough of Carteret's affordable housing
plan as may be required.
Concurrent with the authority to impose and collect the within
development fees, the Borough of Carteret shall only do so for the
period so authorized in its adopted housing plan and spending plan.
[Adopted 11-21-2013 by Ord. No. 13-23]
Officiant services performed under N.J.S.A. 37:1-13 shall be
$100 to $250.
