[Added by Ord. No. 2004-28]
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, N.J.S.A.
52:27D-301 et seq., and the State Constitution subject to the adoption
of rules by the Council on Affordable Housing (COAH). The purpose
of this chapter is to establish standards for the collection, maintenance
and expenditure of affordable housing development fees in the Township
of Ocean pursuant to COAH's rules. Fees collected pursuant to this
chapter shall be used for the sole purpose of providing low- and moderate-income
housing and funding eligible affordable housing activities pursuant
to COAH's rules. This chapter shall be interpreted within the framework
of COAH's rules on development fees.
[Amended by Ord. No. 2005-16; 3-30-2017 by Ord. No.
2017-5]
A.
Unless otherwise exempted as per § 410-173 of this chapter, developers of residential development shall pay development fee of 1% of the equalized assessed value (EAV) of the residential development; provided that no increased density is permitted greater than that currently permitted.
B.
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% of the EAV rather than the development fee of 1%. If the
zoning on a site has changed during the two-year period preceding
the filing of the "d" variance application, the 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 "d" variance application.
C.
Within the Edgemont Redevelopment Area, the Waretown Village Redevelopment
Area, and the Route 9 Phase 1 Redevelopment Area, or any other redevelopment
area designated by the Township governing body pursuant to the requirements
of the Local Redevelopment and Housing Law, P.L. 1992, c. 79 (N.J.S.A.
40A:12A-1 et seq.), any developer designated as a redeveloper by the
Township's redevelopment entity may pay a fee in lieu of constructing
low- or moderate-income housing units, if permitted by the redevelopment
plan adopted for that area. The terms and requirements for such payments
in lieu of construction shall be in accordance with COAH regulations
and shall be specified in the redevelopment plan governing the area.
[Amended by Ord. No. 2005-16; 3-30-2017 by Ord. No.
2017-5]
A.
Unless otherwise exempted as per § 410-173 of this chapter, developers of nonresidential development shall pay an affordable housing development fee as follows:
(1)
Two and one-half percent of the equalized assessed value (EAV)
for all new nonresidential development.
(2)
Two and one-half percent of the increase in equalized assessed
value (EAV) due to expansion, full or partial demolition and reconstruction,
improvement and/or alteration of any nonresidential building.
B.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(4),
then the additional floor area realized greater than that which is
permitted by right under the existing zoning will incur a bonus development
fee of 6% of the EAV rather than the development fee of 2 1/2%.
If the zoning on a site has changed during the two-year period preceding
the filing of the "d" variance application, the floor area permitted
by right for the purposes of calculating the bonus development fee
shall be the maximum amount of floor area permitted by right during
the two-year period preceding the filing of the "d" variance application.
A.
Developers of inclusionary developments shall be exempt from paying
affordable housing development fees. Developers making a payment to
the Ocean Township housing trust fund in lieu of construction of on-site
affordable housing units shall be deemed to be developers of inclusionary
developments within the meaning of this chapter and shall be exempted
from paying an affordable housing development fee other than the payment
in lieu of construction.
B.
Developments that have received preliminary or final approval prior
to the effective date of this chapter and where the rights and protections
for such approval granted under N.J.S.A. 40:55D-49 have not expired
or were extended as permitted by law, shall be exempted from the payment
of a development fee pursuant to this chapter unless the developer
seeks a substantial change in the approval. The phases or sections
of a planned development or planned residential development that were
approved as part of a general development plan approval, but have
not yet received preliminary or final approval shall be subject to
an affordable housing development fee in accordance with the requirements
of this chapter.
C.
Development by any churches or places of worship, or any nonprofit
fraternal, social, charitable, or eleemosynary organizations formed
and legally established in accordance with the laws of the State of
New Jersey, or any public school district or board of education, or
any other public authority, shall be exempted from paying a development
fee pursuant to this section.
The Township Tax Assessor shall estimate the required development
fee prior to the issuance of building permits. Developers shall pay
50% of the estimated fee to the Township prior to the issuance of
building permits. Prior to issuance of a certificate of occupancy,
the Township Tax Assessor shall estimate the remaining fee required
pursuant to this subsection based on one of the options in N.J.A.C.
5:93-8.13. The developer shall be responsible for paying the difference
between the portion of the estimated fee paid at building permit and
the full amount of the fee determined at the time of certificate of
occupancy.
[Amended 7-18-2023 by Ord. No. 2023-14]
A.
There is created an interest-bearing housing trust fund in a federally
insured banking institution determined by the Township for the purpose
of receiving affordable housing development fees pursuant to this
chapter. All fees paid pursuant to this chapter 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 Ocean Township 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 chapter
shall be expended. Such authorization is pursuant to this chapter,
COAH's rules on development fees, and the written authorization from
the Township governing body to the federally insured banking institution.
A.
Money deposited in the housing trust fund may be used for any activity
approved by COAH addressing the Township'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 Township's housing plan element and
fair share plan. The expenditure of all money shall conform to a spending
plan approved by COAH.
B.
At least 30% of the fees collected shall be devoted to render units
more affordable unless exempt as per N.J.A.C. 5:93-8.16(c). Such exemptions
include fees used to fund the Township's rehabilitation program, a
regional contribution agreement (RCA), or a new construction project.
Examples of activities that render units more affordable include,
but are not limited to, down payment and closing cost assistance,
low-interest loans and rental assistance.
C.
No more than 20% of the fees collected shall be expended on administrative
costs necessary to develop, revise or implement the housing element.
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.
D.
Development fee revenues shall not be expended to reimburse the Township
for housing activities that preceded a first- or second-round substantive
certification or a judgement of repose.
This chapter shall expire if:
A.
COAH dismisses or denies the Township's petition for substantive
certification;
B.
COAH revokes substantive certification or this chapter; or
C.
The Township's substantive certification expires prior to Ocean Township
filing an adopted housing element with COAH that addresses its third-round
housing obligation and petitioning for third-round substantive certification
and COAH's approval of its development fee ordinance.
[Added 5-9-2013 by Ord. No. 2013-12]
The owner of any residential structure located within the Township
of Ocean which sustains substantial damage as a result of a natural
disaster, and which is located in an area which has been declared
a Federal Disaster Area, shall be exempt from paying a development
fee as otherwise required by this chapter. "Substantial damage" shall
mean damage to the structure which is equal to or greater than 50%
of the assessed value of the structure in question.
