[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:
The New Jersey Council on Affordable Housing.
Money paid by an individual, person, partnership, association,
company or corporation for the improvement of property as permitted
in COAH's rules.
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.
A judgment issued by the Superior Court approving a municipality's
plan to satisfy its fair share obligation.
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.
