[HISTORY: Adopted by the Township Committee
of the Township of Plainsboro 12-30-1985 by Ord. No. 0-85-27. Amended in entirety 12-14-1985 by Ord. No.
0-94-19. Amendments noted where applicable.]
A.
The New Jersey Supreme Court, in Holmdel Builders
v. Holmdel, Township, 121 N.J. 550 (1990), determined that mandatory
development fees are both statutorily and constitutionally permissible.
The Court further anticipated that the Council would promulgate appropriate
development fee rules specifying, among other things, the standards
for these development fees. The purpose of this section is to provide
such rules pursuant to N.J.A.C. 5:92-18 et seq.
B.
The Township Committee finds and declares that the
creation and preservation of affordable housing in the Township serves
the public interest. Maintaining and improving a stock of sound affordable
housing requires affirmative steps by local government working cooperatively
with public bodies at all levels and with the private sector. The
purpose of this section is to create in the Township of Plainsboro
a trust fund from payment of development fees to assist in the marshaling
of public and private moneys dedicated to affordable housing projects
and programs.
As used herein the following terms shall have
the following definitions:
A.
"Affordable housing" means any housing unit with an
acquisition price or rent level not exceeding the maximum resale or
rent level for low and moderate income housing as set forth in N.J.A.C.
5:92-1.2.
B.
"Council" means the New Jersey Council on Affordable
Housing established under the Fair Housing Act of 1985, and which
has primary jurisdiction for the administration of low and moderate
housing delegations in accordance with sound regional planning considerations
in this state.
C.
"Development fees" mean money paid by an individual,
person, partnership, association, company, or corporation for the
improvement of property as permitted in N.J.A.C. 5:92-18 et seq.
D.
"Equalized assessed value" means 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 and ratios required by law. Estimates at the
time of building permit may be obtained by the tax assessor utilizing
estimates for construction cost. Final equalized assessed value will
be determined at project completion by the municipal tax assessor.
A.
Residential development.
(1)
The Township will not collect residential development fees except as provided in Subsection A(2).
(2)
The Township may allow developers of sites zoned for
inclusionary development to pay a fee in lieu of building low and
moderate income units provided the Council determines the Township's
housing element and fair share plan provides a realistic opportunity
for addressing the Township's fair share obligation. The fee may equal
the cost of subsidizing the low and moderate income units that are
replaced by the development fee. For example, an inclusionary development
may include a 20% set-aside, no set aside, and a fee that is the equivalent
of a 20% set-aside or a combination of a fee and set-aside that is
the equivalent of a 20% set-aside. All such arrangements must first
be approved by the Council on Affordable Housing.
(3)
The Township may collect fees exceeding those permitted
in this section provided the Township enters into agreements with
developers that offer a financial incentive for paying higher fees.
The financial incentive may be in the form of a tax abatement. No
agreement may provide for a voluntary development fee without also
providing for a comparable off-setting incentive. All agreements are
subject to a Council approval.
B.
Nonresidential development.
(1)
Nonresidential development fees shall be a maximum
of 2% of the equalized assessed value for nonresidential development.
The following zoning districts are subject to the nonresidential development
fees: General Business GB, Neighborhood Business Zone NB, OB-1 Office
Business Zone, I-100 Limited Industrial Zone, S-R Service-Residential
Zone, PCD Planned Unit Development Zone, PMUD Planned Unit Development,
and Village Center Zone VC.
[Amended 10-13-2004 by Ord. No. 0-04-19; 2-9-2005 by Ord. No. 0-05-02; 12-27-2007 by Ord. No. 0-07-26]
(2)
The Township may collect fees exceeding those permitted
in this section provided they enter into agreements with developers
that offer a financial incentive for paying higher fees. Such agreements
may include, but are not limited to, a tax abatement, increased commercial/industrial
square footage, increased commercial/industrial lot coverage and/or
increased commercial/industrial impervious coverage in return for
an increased development fee. The development fee negotiated must,
bear a reasonable relationship to the additional commercial-industrial
consideration to be received. All agreements are subject to approval
by the Council.
A.
Except as provided for in § 57-3 above, inclusionary developments shall be exempt from development fees.
B.
Development fees shall be collected when an existing
structure is expanded or undergoes a more intense use. The development
fee that may be collected shall be calculated on the increase in the
equalized value of the improved structure.
C.
The Township shall not reduce densities from preexisting
levels and then require developers to pay development fees in exchange
for an increased density.
D.
Developments that have received preliminary or final
approval prior to the imposition of a development fee shall be exempt
from development fees unless the developer seeks a substantial change
in the approval.
E.
The Township exempts the following types of development
from the imposition of development fees:
The Township shall collect 50% of the fee on
any specific development prior to and as a condition of the issuance
of the building permit therefor. The remaining portion shall be collected
prior to and as a condition of the issuance of the certificate of
occupancy. After an issuance of a building permit, the construction
official shall refer the plans for the development to the Tax Assessor.
The Tax Assessor shall certify to the construction official the final
equalized assessed value in advance of the issuance of a certificate
of occupancy by the construction official. The remaining portion of
the development fee shall be adjusted to reflect any change in the
estimated equalized assessed value so that the total of the two payments
shall equal 100% of the total development fee based upon the final
equalized assessed value.
A.
All development fees shall be deposited with the Chief Financial Officer of the Township in a separate designated interest-bearing housing trust fund. The development fees placed in the housing trust fund shall be deemed "dedicated revenues" as such term is defined in N.J.S.A. 40A:4-36. In establishing the housing trust fund, the Township shall provide whatever express written authorization that may be required by the bank utilized by the Township in order to permit the Council to direct the disbursement of development fees pursuant to § 57-8 of this article.
B.
The Township shall use revenues collected from development
fees for any activity approved by the Council for addressing the Township's
fair share obligation. Such activities include, but are not limited
to, rehabilitation, new construction, regional contribution agreements,
purchase of land for low and moderate income housing, improvement
of land to be used for low and moderate income housing, extension
and/or improvements of roads and infrastructure to low and moderate
income housing sites, assistance designed to render units to be more
affordable and administration of the implementation of the housing
element.
C.
Funds shall not be expended to reimburse the Township
for past housing activities.
D.
At least 30% of the revenues collected from development
fees shall be devoted to render units more affordable. Examples of
such activities include, but are not limited to, down payment assistance,
low interest loans, and rental assistance. This requirement may be
waived in whole or in part when the Township demonstrates to the Council
the ability to address the requirement of affordability assistance
from another source.
E.
No more than 20% of the revenues collected from development
fees shall be expended on administration, but not limited to, salaries
and benefits for Township employees or consultant fees necessary to
develop or implement a rehabilitation program, a new construction
program, a regional contribution agreement, a housing element, and
an affirmative marketing program. Administrative funds may be used
for income qualification of households, monitoring the turnover of
sale and rental units, and compliance with the Council's monitoring
requirements.
A.
The Township shall submit to the Council a spending
plan for the development fees collected by it prior to the expiration
of its substantive certification period. Plans to spend development
fees shall consist of the following information:
(1)
A projection of revenues anticipated from imposing
fees on development, based on historic activity;
(2)
A description of the administrative mechanism that
the Township will use to collect and distribute revenues;
(3)
A description of the anticipated use of all development
fees;
(4)
A schedule for the creation or rehabilitation of housing
units;
(5)
In the event the Township envisions being responsible
for public sector or non-profit construction of housing, a pro-forma
statement of the anticipated costs and revenues associated with the
development; and
(6)
The manner through which the Township will address
any expected or unexpected shortfall if the anticipated revenues from
development fees are not sufficient to implement the plan.
A.
In the event that any of the conditions set forth in Subsection B below occur, the Council shall be authorized, on behalf of the Township, to direct the manner in which all development fees collected pursuant to this article shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of the Council upon the Township Clerk's receipt of written notification from the Council that such a condition has occurred. In furtherance of the foregoing, the Township shall, in establishing a bank account pursuant to § 57-6 of this article, ensure that the Township has provided whatever express written authorization which may be required by the bank to permit the Council to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by the Council to the Township Clerk.
B.
Occurrence of the following may result in the Council taking an action pursuant to Subsection A above:
(1)
Failure to submit a spending plan pursuant to § 57-7 above within the time limits imposed by the Council;
(2)
Failure to meet deadlines for information required
by the Council in its review of this article, the Township's housing
element, or spending plan;
(3)
Failure to address the Council's conditions for approval
of a plan to spend development fees within the deadlines imposed by
the Council;
(4)
Failure to address the Council's conditions for substantive
certification within the deadlines imposed by the Council;
(5)
Failure to submit accurate monitoring reports within
the time limits imposed by the Council;
(6)
Failure to implement the spending plan for development
fees within the time imposed by the Council, or within reasonable
extensions granted by the Council;
(7)
Expenditure of development fees on activities not
permitted by the Council;
(8)
Revocation of the Township's substantive certification;
or
(9)
Other good cause demonstrating that the revenues are
not being used for the intended purposes.
The Township's ability to collect development
fees shall expire with substantive certification unless the Township
has filed an adopted housing element with the Council, petitioned
for substantive certification, and received the Council's approval
of its development fee ordinance.
The Township shall complete and return all monitoring
forms related to the collection of fees, expenditure of revenues,
and implementation of the plans certified by the Council or approved
by the Court. Quarterly financial reports and annual program implementation
and auditing reports shall be completed on forms designed by the Council.
If any part of this article of Chapter 57 of the Code of the Township of Plainsboro shall be held invalid, the holding shall not affect the validity of the remaining parts of this article. If any part of this article is held invalid in one or more of their applications, the rules shall remain in effect in all valid applications that are severable from the invalid application.
