Town of Dover, NJ
Morris County
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Table of Contents
Table of Contents
[Added 11-7-2005 by Ord. No. 20-2005]
A. 
In Holmdel Builder's Association v. Holmdel Town, 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 COAH developing rules.
B. 
The purpose of this article is to establish standards for the collection, maintenance and expenditure of development fees to be used for the sole purpose of providing low- and moderate-income housing opportunities and assistance, which are consistent with regulations adopted by the New Jersey Council on Affordable Housing, as set forth in N.J.A.C. 5:94-6.1 et seq.
C. 
This article shall be interpreted within the framework of COAH's rules on development fees.
As used in this article, the following terms shall have the meanings indicated:
COAH
The New Jersey Council on Affordable Housing.
DEVELOPMENT FEES
Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.
EQUALIZED ASSESSED VALUE
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 building permit may be obtained by the Tax Assessor utilizing estimates for construction costs. Final equalized assessed value will be determined at project completion by the Municipal Tax Assessor.
JUDGMENT OF REPOSE
A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.
SUBSTANTIVE CERTIFICATION
A determination by the Council approving a municipality's Housing Element and Fair Share Plan in accordance with the provisions of the Act and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six years in accordance with the terms and conditions contained therein.
The Town of Dover shall not spend development fees until COAH has approved a plan for spending such fees.
A. 
Developers of residential developments shall pay a development fee of 1% of the equalized assessed value of any eligible residential activity pursuant to § 236-63.6.
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% rather than the development fee of 1%. However, if the zoning on the 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.
A. 
Developers of nonresidential developments shall pay a fee of 2% of equalized assessed value for eligible nonresidential activities pursuant to § 236-63.6.
B. 
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% rather than the development fee of 2%. However, if the zoning on the 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.
A. 
Any development exclusively for low- and moderate-income units shall be exempt from paying development fees.
B. 
Any development that expands an existing structure shall pay a development fee. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.
C. 
Developments that have received preliminary or final site plan or subdivision approval prior to the effective date of this article, or have secured a building permit, shall be exempt from paying a development fee, unless the developer seeks a substantial change in the approval.
D. 
Developers who incorporate low- and moderate-income housing units into their development in accordance with COAH's growth share formula shall be exempt from paying a development fee.
E. 
Designated redevelopers of developments within designated redevelopment areas shall be exempt from paying a development fee if the redevelopment agreement specifically provides provisions for exemptions.
F. 
Other exemptions include all single- and two-family residential additions, renovations and accessory structures, however all new residential dwelling units shall pay a development fee; all multifamily additions, renovations and accessory structures not requiring site plan approval; all nonresidential renovations and alterations not requiring site plan approval.
A. 
Developers shall pay 50% of the calculated development fee to the Town of Dover at the time of issuance of a building permit. Payment shall be made to the Town of Dover Chief Financial Officer. The amount of the development fee shall be based initially on an estimate by the Tax Assessor of the increase in equalized assessed value attributable to the improvements to be constructed. Prior to receiving a building permit, a developer shall submit to the Construction Official a request for calculation of the development fee amount, which request shall be forwarded to the Tax Assessor. The Tax Assessor shall calculate the development fee and provide the calculation to the developer with a copy to the Construction Official and the Chief Financial Officer. Once the development fee is deposited with the Chief Financial Officer, a certification of payment shall be provided to both the developer and the Construction Official by the Chief Financial Officer. The Construction Official shall not issue a building permit until he has received a certification that the development fee has been paid.
B. 
Developers shall pay the balance of the development fee to the Town of Dover Chief Financial Officer prior to the issuance of certificates of occupancy by the Construction Official. Prior to receiving a certificate of occupancy, a developer shall submit to the Construction Official a request for calculation of the development fee amount, which request shall be forwarded to the Tax Assessor. The Tax Assessor shall calculate the equalized assessed value, which may differ from the estimate provided prior to issuance of the building permit. The amount of the development fee shall be recalculated, and the developer shall be responsible for paying the difference between that development fee amount and the amount paid prior to issuance of the building permit. The Tax Assessor shall provide the calculation to the developer with a copy to the Construction Official and the Chief Financial Officer. Once the development fee is deposited with the Chief Financial Officer, a certification of payment shall be provided to both the developer and the Construction Official by the Chief Financial Officer. The Construction Official shall not issue a certificate of occupancy until he has received a certification that the difference between that development fee amount and the amount paid prior to issuance of the building permit has been paid.
Imposed and collected development fees that are challenged shall be placed in an interest-bearing escrow account by the Town of Dover. 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 in a financial institution designated by the Chief Financial Officer of the Town of Dover for the purpose of collecting development fees from residential and nonresidential developers and proceeds from the sale of units with extinguished controls. All development fees paid by developers pursuant to this ordinance shall be deposited into this fund.
B. 
Within seven days from the opening of the trust fund account, the Chief Financial Officer of the Town of Dover shall provide COAH with written authorization, in the form of a three-party escrow agreement between the municipality, the financial institution named above, and COAH, to permit COAH to direct the disbursement of the funds as provided for in N.J.A.C. 5:94-6.16(b).
C. 
No funds shall be expended from the housing trust fund unless the expenditure conforms to a spending plan approved by COAH. All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by COAH.
A. 
Money deposited in a housing trust fund may be used for any activity approved by COAH to address the municipal fair share. Such activities include, but are not limited to, rehabilitation, new construction, RCAs subject to the provisions of N.J.A.C. 5:94-4.4(d), 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 the Housing Element and Fair Share Plan. The expenditure of all money shall conform to a spending plan approved by COAH.
B. 
Funds shall not be expended to reimburse municipalities for past housing activities.
C. 
After subtracting development fees collected to finance an RCA, a rehabilitation program or a new construction project that are necessary to address the municipality's affordable housing obligation, 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 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, and rental assistance.
(2) 
Affordability assistance to households earning 30% or less of median income may include buying down the cost of low-income units in the municipal Fair Share Plan to make them affordable to households earning 30% or less of median income. The use of development fees in this manner shall entitle the Town of Dover to bonus credits pursuant to N.J.A.C. 5:94-4.22.
(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 Town of Dover 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. 5:94-7.
E. 
No more than 20% of the revenues collected from development fees each year, exclusive of the fees used to fund an RCA, 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, 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. Development fee administrative costs are calculated and may be expended at the end of each year or upon receipt of the fees.
The Town of Dover 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.
The ability for the Town of Dover to impose, collect and expend development fees shall expire with its substantive certification on the date of expiration of its substantive certification, unless the Town of Dover 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 Town of Dover fails to renew its ability to impose and collect development fees prior to the date of expiration of substantive certification, it may resume the imposition and collection of development fees only by complying with the requirements of this section. The Town of Dover shall not impose a development fee on a development that receives preliminary or final approval after the date of expiration of substantive certification, nor will the Town of Dover retroactively impose a development fee on such a development. The Town of Dover will not expend development fees after the date of expiration of substantive certification.