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Township of Cedar Grove, NJ
Essex County
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Table of Contents
Table of Contents
A. 
Meetings of both the Planning Board and Zoning Board of Adjustment shall be public and shall be scheduled no less often than once a month, and any meeting so scheduled shall be held as scheduled unless canceled for lack of applications for development to process.
B. 
Special meetings may be provided for at the call of the Chairman or on the request of any two Board members, which meetings shall be held on notice to its members and the public in accordance with all applicable legal requirements.
C. 
No action shall be taken at any meeting without a quorum being present.
D. 
All action shall be taken by majority vote of a quorum except as otherwise required by any provision of this chapter or N.J.S.A. 40:55D-1 et seq.
E. 
Meetings shall be designated as executive sessions, regular meetings or special meetings. Executive sessions shall be for the purpose of discussing and studying any matters that come before the Board. All meetings shall be subject to the requirements of the Open Public Meetings Act (N.J.S.A. 10:4-6 et seq.).
Minutes of every executive session, regular meeting and special meeting shall be kept, showing the time and place of the meeting, the members present, the subjects considered, the names of the persons appearing and addressing the Board and of the persons appearing by attorney, the actions taken by the Board, the findings, if any, made by the Board and reasons therefor and the vote of each member. The minutes shall thereafter be made available for public inspection during normal business hours at the office of the Planning and Zoning Coordinator. Any interested party shall have the right to compel production of the minutes for use as evidence in any legal proceeding concerning the subject matter of such minutes. Such interested party shall be charged a fee established by the Township Council for reproduction of the minutes for his use.
[Amended 5-21-1984 by Ord. No. 84-219]
A. 
The following schedule of fees is hereby established for the filing of applications or appeals, as the case may be, before the Planning Board, Zoning Board of Adjustment or Township Council:
(1) 
Preliminary major subdivision:
(a) 
Base fee: $500.
[Amended 11-7-1988 by Ord. No. 88-326]
(b) 
Plus each additional lot: $50.
(2) 
Final major subdivision:
[Amended 11-7-1988 by Ord. No. 88-326]
(a) 
Base fee: $250.
(b) 
Plus each additional lot: $50.
(3) 
Minor subdivision:
(a) 
Base fee: $200.
[Amended 11-7-1988 by Ord. No. 88-326]
(b) 
Plus each additional lot: $50.
(4) 
Site plan:
(a) 
Multifamily, major:
[Amended 6-4-1984 by Ord. No. 84-220; 4-2-2001 by Ord. No. 01-556]
[1] 
For the first acre: $500.
[2] 
Plus each additional acre or fraction thereof: $75.
[3] 
Plus each unit: $50
(b) 
Multifamily, minor:
[Amended 6-4-1984 by Ord. No. 84-220; 4-2-2001 by Ord. No. 01-556]
[1] 
Base application: $250.
[2] 
Plus each additional unit: $50.
[3] 
Plus each unit: $50.
(c) 
Other than multifamily, new:
[1] 
For the first acre: $500.
[2] 
Plus each additional acre or fraction thereof: $75.
[3] 
Plus total floor area, per square foot: $0.05.
[Amended 6-4-1984 by Ord. No. 84-220]
(d) 
Other than multifamily, additions:
[1] 
Base fee: $250.
[2] 
Plus total floor area, per square foot: $0.05.
[Amended 6-4-1984 by Ord. No. 84-220]
(5) 
A variance pursuant to N.J.S.A. 40:55D-70c in connection with a one- or two-family detached dwelling:
[Amended 11-7-1988 by Ord. No. 88-326; 4-2-2001 by Ord. No. 01-556]
(a) 
For the first variance application: $100.
(b) 
For each additional variance application: $15.
(6) 
A variance pursuant to N.J.S.A. 40:55D-70c in all cases other than Subsection A(5) above:
[Amended 11-7-1988 by Ord. No. 88-326; 4-2-2001 by Ord. No. 01-556]
(a) 
For the first variance application: $300.
(b) 
For each additional variance application: $50.
(7) 
A variance pursuant to N.J.S.A. 40:55D-70d:
[Amended 11-7-1988 by Ord. No. 88-326; 4-2-2001 by Ord. No. 01-556]
(a) 
For one- and two-family dwellings: $350.
(b) 
For all other structures: $1,000.
(8) 
Conditional use: $500.
[Amended 11-7-1988 by Ord. No. 88-326]
(9) 
An appeal pursuant to N.J.S.A. 40:55D-70a: $75.
(10) 
A request for interpretation pursuant to N.J.S.A. 40:55D-70b: $75.
(11) 
An appeal to the Township Council from a decision of municipal agency: $75.
B. 
In the event of an application involving a combination of two or more of the above applications, the fee shall be computed by totaling the sum of the fees required in connection with each type of application required.
C. 
The aforesaid fees shall be paid at the time the application is made for review to the administrative officer of the Township of Cedar Grove, and checks shall be made payable to the Township of Cedar Grove.
D. 
In the event that the applicant requests a special meeting and the request is granted by the Board, the applicant shall pay an additional fee for each such meeting in the amount of $250. Such fee must be paid no later than 10 days before the scheduled special meeting.
[Added 3-4-1991 by Ord. No. 91-378]
[Added 3-4-1991 by Ord. No. 91-378]
A. 
In connection with any application to the Planning Board or Zoning Board of Adjustment, in addition to the application fee, an applicant shall deposit a cash escrow with the Board at the time of filing of an application. The escrow shall be paid to the Township of Cedar Grove and used by the municipality to pay for expenses incurred in connection with any review of the application, including the following:
(1) 
Professional services by outside consultants and/or the Township’s professional staff retained to conduct a review or report and/or testify in connection with the application.
[Amended 6-4-2007 by Ord. No. 07-678]
(2) 
Attorney's fees incurred in connection with time spent in preparation of written reports and opinions and preparation of resolutions. The escrow shall not be used to pay for normal preparation for meetings or attendance at meetings which are compensated through the attorney's meeting stipend or retainer.
B. 
Initial escrow.
(1) 
The initial amount of escrow to be posted shall be as follows:
(a) 
Minor subdivision: $1,000.
(b) 
Preliminary major subdivision: $750 per lot; minimum $3,000.
(c) 
Final major subdivision: $500 per lot; minimum $2,000.
(d) 
Preliminary site plan: $250 for each 1,000 square feet or part thereof of floor area for commercial or industrial uses; $350 per dwelling unit for residential uses. The minimum fee shall be $3,000 for a major site plan, or $1,000 for a minor site plan.
[Amended 4-2-2001 by Ord. No. 01-556]
(e) 
Final site plan: $125 for each 1,000 square feet of floor area or part thereof for commercial or industrial uses; $75 per dwelling unit for residential uses; minimum for any use $2,000.
(f) 
Informal review pursuant to N.J.S.A. 40:55D-10.1: $1,000.
(g) 
Conditional use: $5,000.
(h) 
Appeal pursuant to N.J.S.A. 40:55D-70a: $1,000.
(i) 
Interpretation or special question pursuant to N.J.S.A. 40:55D-70b: $1,000.
(j) 
C variance (each variance): $1,000, except for detached one- or two-dwelling unit uses.
(k) 
D variance:
[Amended 4-2-2001 by Ord. No. 01-556]
[1] 
For one- and two-family dwellings: $1,000.
[2] 
For all other structures: $7,500.
(2) 
Where an application to a Board involves more than one of the above-listed matters, the escrow shall be computed by addition of all appropriate escrow amounts.
C. 
Within 45 days after the filing of an application for development, the Planning Board or Zoning Board of Adjustment shall have the power, after receipt of a recommendation from the Director of Community Development, to determine whether the escrow amount set forth in Subsection B above is adequate based upon the anticipated complexity of issues to be presented or the number of professionals necessary to be retained. In the event that the Board determines that the initial escrow may be insufficient, then and in that event, the Board may adopt a resolution requiring payment of a specific supplemental amount of escrow. Such supplemental escrow shall be paid by the applicant prior to the first scheduled date for hearing on the application. Failure to pay the supplemental escrow shall result in a denial of the application.
[Added 3-4-1991 by Ord. No. 91-378]
Subsequent to an approval of a final major subdivision or final site plan and prior to any land disturbance taking place on the site, the developer shall deposit with the municipality a post-approval cash escrow in an amount equal to 5% of the anticipated cost of the installation of the proposed improvements, as agreed to by the Township, including streets, grading, pavement, gutters, curbs, sidewalks, streetlighting, shade trees, surveyors' monuments, water mains, culverts, storm sewers, sanitary sewers or other means of sewage disposal, drainage structures, erosion control and sedimentation control devices, public improvements of open space and, in the case of site plans only, other on-site improvements and landscaping. The escrow shall be used by the municipality for payment of all fees and costs incurred by the municipality in connection with the post-approval review process, including the following:
A. 
Professional fees incurred by outside consultants and/or the Township’s professional staff in connection with inspection of the various improvements, together with any reports or information which may be requested by the municipality from those professionals.
[Amended 6-4-2007 by Ord. No. 07-678]
B. 
Attorneys' fees incurred in preparation of a developer's agreement, opinions and reports obtained during the course of the development and resolutions and other documents in connection with sureties, acceptance of public improvements and other matters directly related to the development.
[Added 3-4-1991 by Ord. No. 91-378; amended 4-2-2001 by Ord. No. 01-556]
A. 
The municipality shall make all of the payments for the fees and costs to be charged against any initial, supplemental or post-approval escrow. All payments charged to the escrow shall be made pursuant to vouchers stating the hours spent, the hourly rate and the expenses incurred. All unexpended sums shall be returned to the applicant or developer that posted the escrow after all final charges are incurred. Charges to any such escrow shall be made at the same rate as all other work of the same nature charged by the professional to the municipality. Prior to payment being authorized by the Township Council, vouchers for services incurred by the Board shall be subject to review and recommendation by the Board. Upon return of the balance of either the initial or supplemental escrow or the post-approval escrow, the municipality shall render a written final accounting to the applicant or developer, as appropriate, indicating the uses to which the deposit was put.
B. 
If at any time expenditures from an escrow account cause the account balance to diminish to less than 25% of the initial deposit, that escrow account shall be replenished to its full original balance. The procedure to obtain these replenished escrow contributions shall be consistent with this ordinance and the Municipal Land Use Law.
A. 
Necessity. The Planning Board and Zoning Board of Adjustment shall hold a hearing on each application for development, or adoption, revision or amendment of the Master Plan.
B. 
Rules. The Planning Board and Zoning Board of Adjustment may make rules governing the conduct of hearings before such Boards, which rules shall not be inconsistent with the provisions of N.J.S.A. 40:55D-1 et seq. or of this chapter. Any maps and documents for which approval is sought at a hearing shall be on file and available for public inspection at least 10 days before the date of the hearing during normal business hours in the office of the Planning and Zoning Coordinator. The applicant may produce other documents, records or testimony at the hearing to substantiate, clarify or supplement the previously filed maps and documents.
C. 
Oaths. The officer presiding at the hearing or such person as he may designate shall have power to administer oaths and issue subpoenas to compel the attendance of witnesses and the production of relevant evidence, including witnesses and documents presented by the parties, and the provisions of the County and Municipal Investigations Law (N.J.S.A. 2A:67A-1 et seq.) shall apply.
D. 
Testimony. The testimony of all witnesses relating to an application for development shall be taken under oath or affirmation by the presiding officer, and the right of cross-examination shall be permitted to all interested parties through their attorneys, if represented, or directly, if not represented, subject to the discretion of the presiding officer and to reasonable limitations as to time and number of witnesses.
E. 
Evidence. Technical rules of evidence shall not be applicable to the hearing, but the Board may exclude irrelevant, immaterial or unduly repetitious evidence.
F. 
Records.
(1) 
Each Board shall provide for the verbatim recording of the proceedings by either stenographic, mechanical or electronic means. The Board shall furnish a transcript or duplicate recording in lieu thereof on request made, in writing, to any interested party at his expense.
(2) 
In the event that a hearing is started but not concluded at the same meeting, the applicant, at its cost and expense, shall provide to the Board three copies of a transcript of such hearing. The transcript shall be prepared and submitted to the Board at least 10 days prior to the scheduled continuation of the hearing.
[Added 3-4-1991 by Ord. No. 91-378]
Whenever a hearing is required on an application for development pursuant to § 38-27A, notice thereof shall be given as follows:
A. 
Notice shall state the date, time and place of the hearing; the nature of the matters to be considered; an identification of the property proposed for development by street address, if any, and by reference to lot and block numbers as shown on the current Township Tax Map; and the location and times at which any maps and documents for which approval is sought are available for inspection pursuant to § 38-27B.
B. 
The applicant shall cause notice of the hearing to be given by publication in the official newspaper of the Township at least 10 days prior to the date of the hearing. Proof of such publication shall be supplied by the applicant to the Planning and Zoning Coordinator prior to the hearing date.
[Amended 6-16-1986 by Ord. No. 86-272]
C. 
The applicant shall cause notice to be given to the owners of all real property, as shown on the current Township Tax Map, located within 200 feet in all directions of the property which is the subject of the hearing. Such notice shall be given by serving a copy thereof on the owner as shown on the said current Township Tax Map or his agent in charge of the property, or by mailing a copy thereof by certified mail to the property owner at his address shown on the said current Township Tax Map. Notice to a partnership owner may be made by service upon any partner. Notice to a corporate owner may be made by service upon its president, a vice president, secretary or other person authorized by appointment or by law to accept service on behalf of the corporation.
D. 
The applicant shall cause notice of all hearings on applications for development involving property located within 200 feet of an adjoining municipality to be given by personal service or certified mail to the Clerk of such municipality, which notice shall be in addition to the notice required to be given pursuant to Subsection C herein to the owners of land in such adjoining municipality which are located within 200 feet of the subject premises.
E. 
The applicant shall cause notice to be given by personal service or certified mail to the County Planning Board of a hearing of any application for development of property adjacent to an existing county road or proposed road shown on the Official County Map or on the County Master Plan, adjoining other county land or situate within 200 feet of a municipal boundary.
F. 
The applicant shall cause notice to be given by personal service or certified mail to the Commissioner of Transportation of a hearing on an application for development of property adjacent to a state highway.
G. 
The applicant shall cause notice to be given by personal service or certified mail to the Director of the Division of State and Regional Planning in the Department of Community Affairs of a hearing on an application for development of property which exceeds 150 acres or 500 dwelling units. Such notice shall include a copy of any maps or documents required to be on file with the Planning and Zoning Coordinator pursuant to § 38-27B.
H. 
All notices hereinabove specified in this section to be given by the applicant shall be given at least 10 days prior to the date fixed for the hearing, and the applicant shall file an affidavit of proof of service with the Board holding the hearing on the application for development.
I. 
Any notice made by certified mail as hereinabove required shall be deemed to be complete upon mailing in accordance with the provisions of N.J.S.A. 40:55D-14.
The Planning Board shall give public notice of a hearing on adoption, revision or amendment of the Master Plan as follows:
A. 
Notice shall be given by publication in the official newspaper of the Township at least 10 days prior to the date of the hearing.
B. 
Notice shall be given by personal service or certified mail to the Clerk of an adjoining municipality of all hearings on adoption, revision or amendment of a Master Plan involving property situated within 200 feet of such adjoining municipality at least 10 days prior to the date of any such hearing.
C. 
Notice shall be given by personal service or certified mail to the County Planning Board of all hearings on the adoption, revision or amendment of the Master Plan at least 10 days prior to the hearing, and such notice shall include a copy of any proposed Master Plan, or any revision or amendment thereto, and the adoption, revision or amendment of the Master Plan not more than 30 days after the date of such adoption, revision or amendment, and such notice shall include a copy of the Master Plan or revision or amendment thereto.
D. 
The form of notice shall be the same as that required in § 38-28A.
E. 
Any notice made by certified mail as hereinabove required shall be deemed to be complete upon mailing in accordance with the provisions of N.J.S.A. 40:55D-14.
Pursuant to the provisions of N.J.S.A. 40:55D-12c, the Planning and Zoning Coordinator of the Township shall, within seven days after receipt of a request therefor and upon receipt of payment of a fee of $10 make and certify a list from the current tax duplicate of names and addresses of owners to whom the applicant is required to give notice pursuant to § 38-28C.
A. 
Each decision on any application for development shall be in writing and shall include findings of facts and conclusions based thereon.
B. 
A copy of the decision shall be mailed by the Board within 10 days of the date of decision to the applicant, or if represented, then to his attorney, without separate charge. A copy of the decision shall also be mailed to all persons who have requested it in writing and who have paid the fee prescribed by the Township Council. A copy of the decision shall also be filed in the office of the Planning and Zoning Coordinator, who shall make the decision available for public inspection at his office during reasonable hours.
C. 
A brief notice of the decision shall be published in the official newspaper of the Township. The Planning and Zoning Coordinator shall cause the notice to be published, shall charge the applicant the fee prescribed by the Township Council and shall provide the applicant with proof of publication.
A. 
Pursuant to the provisions of N.J.S.A. 40:55D-39 and 40:55D-65, every application for development submitted to the Planning Board or to the Zoning Board of Adjustment shall be accompanied by proof that no taxes or assessments for local improvements are due or delinquent on the property which is the subject of such application; or, if it is shown that taxes or assessments are delinquent on said property, any approvals or other relief granted by either Board shall be conditioned upon either the prompt payment of such taxes or assessments or the making of adequate provisions for the payment thereof in such manner that the Township will be adequately protected.
B. 
In the event that a developer submits an application for development proposing a development that is barred or prevented, directly or indirectly, by a legal action instituted by any state agency, political subdivision or other party to protect the public health and welfare or by a directive or order issued by any state agency, political subdivision or court of competent jurisdiction to protect the public health and welfare, the Board shall process such application for development in accordance with this chapter and Township development regulations; and, if such application for development complies with Township development regulations and this chapter, the Board shall approve such application conditioned on removal of such legal barrier to development.
C. 
In the event that development proposed by an application for development requires an approval by a governmental agency other than the Board, the Board shall, in appropriate instances, condition its approval upon the subsequent approval of such governmental agency, provided that the Board shall make a decision on any application for development within the time period provided in the development regulations of the Township, including this chapter, or within an extension of such period as may be agreed to by the applicant, unless the Board is prevented or relieved from so acting by operation of law.
[Added 2-3-1992 by Ord. No. 92-395]
Subsequent to every final approval of a development application and prior to any land disturbance or construction on the property which is the subject of such development application, the developer shall enter into a developer's agreement with the Township. The Township Council shall have the power to waive the requirement of a developer's agreement, by resolution, in the event that it determines the matter is of such a nature that an agreement is not necessary for purposes of enforcement of the decision of the municipal agency and the protection of the public health, safety or welfare. In the event that a developer seeks a final approval in phases, each such approval shall require a developer's agreement in accordance with this section. Notwithstanding the requirement of this section, no developer's agreement shall be required in connection with a "C" variance for a one- or two-family home which does not involve any subdivision, site plan or conditional use application.
[Added 6-21-2004 by Ord. No. 04-610; amended 4-17-2006 by Ord. No. 06-641; 2-3-2020 by Ord. No. 20-853]
A. 
Purpose.
(1) 
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 (the Act), N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject to the Council on Affordable Housing's (COAH's) adoption of rules.
(2) 
Pursuant to P.L. 2008, c. 46, Section 8 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), COAH is authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that are under the jurisdiction of the Council or court of competent jurisdiction and have a COAH-approved spending plan may retain fees collected from nonresidential development.
(3) 
In Re: Adoption of N.J.A.C. 5:96 and 5:97[1] by the New Jersey Council on Affordable Housing, 221 N.J. 1 (2015), also known as the "Mount Laurel IV" decision, the Supreme Court remanded COAH's duties to the Superior Court. As a result, affordable housing development fee collections and expenditures from the municipal affordable housing trust funds to implement municipal third round fair share plans through July 1, 2025, are under the Court's jurisdiction and are subject to approval by the Court.
[1]
Editor's Note: The provisions of N.J.A.C. 5:96 and 5:97 expired 6-2-2015.
(4) 
This section establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH's regulations and in accordance P.L. 2008, c. 46, Sections 8 and 32 through 38.[2] Fees collected pursuant to this section shall be used for the sole purpose of providing low- and moderate-income housing. This section shall be interpreted within the framework of COAH's rules on development fees, codified at N.J.A.C. 5:93-8.
[2]
Editor's Note: See N.J.S.A. 52:27D-329.2 and N.J.S.A. 40:55D-8.1 through N.J.S.A. 40:55D-8.7, respectively.
B. 
Basic requirements.
(1) 
This section shall not be effective until the Superior Court approves the Borough's development fee ordinance in accordance with N.J.A.C. 5:93-8.
(2) 
The Township of Cedar Grove shall not spend development fees until the Superior Court has approved a plan for spending such fees in conformance with N.J.A.C. 5:93-8.
C. 
Definitions. The following terms, as used in this section, shall have the following meanings:
AFFORDABLE HOUSING DEVELOPMENT
A development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development.
COAH or the COUNCIL
The New Jersey Council on Affordable Housing established under the Act which has primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the state. Pursuant to the opinion and order of the New Jersey Supreme Court dated March 10, 2015, in the matter of "In re Adoption of N.J.A.C. 5:96 and 5:97[3] by N.J. Council on Affordable Housing (M-392-14) 067126," any reference to "COAH" or the "Council" shall be understood to refer to the Superior Court of New Jersey, Law Division, Essex County.
DEVELOPER
The legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land.
DEVELOPMENT FEE
Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3.[4]
EQUALIZED ASSESSED VALUE
The assessed value of a property divided by the current average ratio of assessed to true value for the municipality in which the property is situated, as determined in accordance with Sections 1, 5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
GREEN BUILDING STRATEGIES
Those strategies that minimize the impact of development on the environment and enhance the health, safety and well-being of residents by producing durable, low-maintenance, resource-efficient housing while making optimum use of existing infrastructure and community services.
[3]
Editor's Note: The provisions of N.J.A.C. 5:96 and 5:97 expired 6-2-2015.
[4]
Editor's Note: The provisions of N.J.A.C. 5:97 expired 6-2-2015.
D. 
Residential development fees.
(1) 
Imposed fees.
(a) 
Within all zoning districts, residential developers, the developers of all new development of principal and accessory residential buildings, except for developers of the types of development specifically exempted below, shall pay a fee of 1.5% of the equalized assessed value for residential development, provided no increased density is permitted.
(b) 
When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5) (known as a "d" variance) has been permitted, developers may be required to pay a development fee of 6% of the equalized assessed value for each additional unit that may be realized. However, if the zoning on a site has changed during the two-year period preceding the filing of such a variance application, the base 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 variance application.
(2) 
Eligible exactions, ineligible exactions, and exemptions for residential development.
(a) 
Affordable housing developments, developments where the developer is providing for the construction of affordable units elsewhere in the municipality, and developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from development fees.
(b) 
Developments that have received preliminary or final site plan 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. Where a site plan approval does not apply, a zoning and/or building permit shall be synonymous with preliminary or final site plan approval for this purpose. The fee percentage shall be vested on the date that the building permit is issued.
(c) 
Owner-occupied residential structures demolished and replaced as a result of a fire, flood, or natural disaster shall be exempt from paying a development fee.
(d) 
Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use, is demolished and replaced, or is expanded, if the expansion is not otherwise exempt from the development fee requirement. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.
E. 
Nonresidential development fees.
(1) 
Imposed fees.
(a) 
Within all zoning districts, nonresidential developers, except for developers of the types of development specifically exempted, shall pay a fee equal to 2.5% of the equalized assessed value of the land and improvements for all new nonresidential construction on an unimproved lot or lots.
(b) 
Nonresidential developers, except for developers of the types of development specifically exempted, shall also pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures to be used for nonresidential purposes.
(c) 
Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 2.5% shall be calculated on the difference between the equalized assessed value of the preexisting land and improvement and the equalized assessed value of the newly improved structure, i.e., land and improvement, at the time final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the nonresidential development fee shall be zero.
(2) 
Eligible exactions, ineligible exactions, and exemptions for nonresidential development.
(a) 
The nonresidential portion of a mixed-use inclusionary or market-rate development shall be subject to the 2.5% development fee, unless otherwise exempted below.
(b) 
The 2.5% fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs.
(c) 
Nonresidential developments shall be exempt from the payment of nonresidential development fees in accordance with the exemptions required pursuant to P.L. 2008, c. 46, as specified in Form N-RDF, State of New Jersey Non-Residential Development Certification/Exemption form. Any exemption claimed by a developer shall be substantiated by that developer.
(d) 
A developer of a nonresidential development exempted from the nonresidential development fee pursuant to P.L. 2008, c. 46 shall be subject to it at such time the basis for the exemption no longer applies, and shall make the payment of the nonresidential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy of the nonresidential development, whichever is later.
(e) 
If a property which was exempted from the collection of a nonresidential development fee thereafter ceases to be exempt from property taxation, the owner of the property shall remit the fees required pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid nonresidential development fees under these circumstances may be enforceable by the Township of Cedar Grove as a lien against the real property of the owner.
F. 
Collection procedures.
(1) 
Upon the granting of a preliminary, final or other applicable approval for a development, the applicable approving authority shall direct its staff to notify the construction official responsible for the issuance of a building permit.
(2) 
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF, State of New Jersey Non-Residential Development Certification/Exemption, to be completed as per the instructions provided. The developer of a nonresidential development shall complete Form N-RDF as per the instructions provided. The construction official shall verify the information submitted by the nonresidential developer in accordance with the instructions in Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments in keeping with the instructions in Form N- RDF.
(3) 
The construction official responsible for the issuance of a building permit shall notify the local tax assessor of the issuance of the first building permit for a development which is subject to a development fee.
(4) 
Within 90 days of receipt of that notice, the municipal tax assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development.
(5) 
The construction official responsible for the issuance of a final certificate of occupancy shall notify the local assessor of any and all requests for the scheduling of a final inspection on property which is subject to a development fee.
(6) 
Within 10 business days of a request for the scheduling of a final inspection, the municipal assessor shall confirm or modify the previously estimated equalized assessed value of the improvements of the development; calculate the development fee; and thereafter notify the developer of the amount of the fee.
(7) 
Should the Township of Cedar Grove fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of Section 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
(8) 
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.
(9) 
Appeal of development fees.
(a) 
A developer may challenge residential development fees imposed by filing a challenge with the County Board of Taxation. Pending a review and determination by the Board, collected fees shall be placed in an interest-bearing escrow account by the Township of Cedar Grove. Appeals from a determination of the Board may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
(b) 
A developer may challenge nonresidential development fees imposed by filing a challenge with the Director of the Division of Taxation. Pending a review and determination by the Director, which shall be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest-bearing escrow account by the Township of Cedar Grove Appeals from a determination of the Director may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
G. 
Affordable Housing Trust Fund.
(1) 
There is hereby created a separate, interest-bearing housing trust fund to be maintained by the chief financial officer for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls.
(2) 
The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identifiable by source and amount:
(a) 
Payments in lieu of on-site construction of affordable units;
(b) 
Developer-contributed funds to make 10% of the adaptable entrances in a townhouse or other multistory attached development accessible;
(c) 
Rental income from municipally operated units;
(d) 
Repayments from affordable housing program loans;
(e) 
Recapture funds;
(f) 
Proceeds from the sale of affordable units; and
(g) 
Any other funds collected in connection with the Township of Cedar Grove's affordable housing program.
(3) 
In the event of a failure by the Township of Cedar Grove to comply with trust fund monitoring and reporting requirements or to submit accurate monitoring reports; or a failure to comply with the conditions of the judgment of compliance or a revocation of the judgment of compliance; or a failure to implement the approved spending plan and to expend funds within the applicable required time period as set forth in In re Tp. of Monroe, 442 N.J. Super. 565 (Law Div. 2015) (aff'd 442 N.J. Super. 563); or the expenditure of funds on activities not approved by the Court; or for other good cause demonstrating the unapproved use(s) of funds, the Court may authorize the State of New Jersey, Department of Community Affairs, Division of Local Government Services (LGS), to direct the manner in which the funds in the Affordable Housing Trust Fund shall be expended, provided that all such funds shall, to the extent practicable, be utilized for affordable housing programs within the Township of Cedar Grove or, if not practicable, then within the county or the housing region.
(4) 
Any party may bring a motion before the Superior Court presenting evidence of such condition(s), and the Court may, after considering the evidence and providing the municipality a reasonable opportunity to respond and/or to remedy the noncompliant condition(s), and upon a finding of continuing and deliberate noncompliance, determine to authorize LGS to direct the expenditure of funds in the trust fund. The Court may also impose such other remedies as may be reasonable and appropriate to the circumstances.
(5) 
All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by the Court.
H. 
Use of funds.
(1) 
The expenditure of all funds shall conform to a spending plan approved by the Court. Funds deposited in the housing trust fund may be used for any activity approved by the Court to address the Township of Cedar Grove's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to: preservation or purchase of housing for the purpose of maintaining or implementing affordability controls, rehabilitation, new construction of affordable housing units and related costs, accessory apartment, market-to-affordable, or regional housing partnership programs, conversion of existing nonresidential buildings to create new affordable units, green building strategies designed to be cost-saving and in accordance with accepted national or state standards, purchase of land for affordable housing, improvement of land to be used for affordable housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, or any other activity as permitted pursuant to N.J.A.C. 5:93-8 and specified in the approved spending plan.
(2) 
Funds shall not be expended to reimburse the Township of Cedar Grove for past housing activities.
(3) 
At least 30% of all development fees collected and interest earned 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.
(a) 
Affordability assistance programs may include down payment assistance, security deposit assistance, low-interest loans, rental assistance, assistance with homeowners' association or condominium fees and special assessments, and assistance with emergency repairs.
(b) 
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 municipal Fair Share Plan to make them affordable to households earning 30% or less of median income.
(c) 
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.
(4) 
The Township of Cedar Grove 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.
(5) 
No more than 20% of all revenues collected from development fees may 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 monitoring requirements for the affordable housing in compliance with the Housing Element and Fair Share Plan. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council's regulations and/or action are not eligible uses of the Affordable Housing Trust Fund.
I. 
Monitoring. On an annual basis, commencing with the first anniversary of the entry of the order granting a final judgment of compliance and repose, the Township of Cedar Grove shall provide annual reporting of trust fund activity to the New Jersey Department of Community Affairs (DCA), COAH, or Local Government Services (LGS), or other entity designated by the State of New Jersey, with a copy provided to Fair Share Housing Center and posted on the municipal website, using forms developed for this purpose by the DCA, COAH, or LGS. This reporting shall include an accounting of all housing trust fund activity, including the collection of development fees from residential and nonresidential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier-free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with the Township's housing program, as well as to the expenditure of revenues and implementation of the plan approved by the Court.
J. 
Ongoing collection of fees. The ability for the Township of Cedar Grove to impose, collect and expend development fees shall expire with its substantive certification unless the Township of Cedar Grove has filed an adopted Housing Element and Fair Share Plan with the court or other appropriate jurisdiction, has filed a declaratory judgment action and has received court approval of its development fee ordinance. If the Township of Cedar Grove fails to renew its ability to impose and collect development fees prior to the expiration of substantive certification, it may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds so forfeited shall be deposited into the New Jersey Affordable Housing Trust Fund established pursuant to Section 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The Township of Cedar Grove shall not impose a residential development fee on a development that receives preliminary or final site plan approval after the expiration of its judgment of compliance and repose, nor shall the Township of Cedar Grove retroactively impose a development fee on such a development. The Township of Cedar Grove shall not expend development fees after the expiration of judgment of compliance and repose.