In Holmdel Builder's Ass'n. 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 council on affordable housing's (COAH) adoption of rules. The purpose of this chapter is to establish standards for the collection, maintenance and expenditure of development fees 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. This chapter shall be interpreted within the framework of COAH's rules on development fees.

(Ord. 2004-04 § 1: Ord. 2004-03 § 1: Ord. 2003-03 § 1)

For the purposes of this chapter and consistent with all borough of Califon ordinances relating to the borough of Califon housing element and fair share housing plan, the following definitions shall apply:

"COAH" means the New Jersey Council on Affordable Housing.

"Developer" means 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" means the division of a parcel of land into two or more parcels; the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any building or other structure; any man-made change to improved or unimproved real estate, including mining, dredging, filling, grading, paving, excavation, drilling, or storage of equipment or materials; any use or change in the use of any building or other structure or land; or any extension of the use of land.

"Development fees" means 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" 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 or ratios required by law. Estimates at the time of issuance of a building permit may be obtained utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the municipal tax assessor.

"Housing unit" means a house, apartment, room, or group of rooms occupied or intended to be occupied by a household living independently of other households.

"Judgment of repose" means a judgment issued by the superior court approving a municipality's plan to satisfy its fair share obligation.

"Substantive certification" means a determination by COAH approving a municipality's housing element and fair share plan in accordance with the provisions of the Fair Housing 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 therein.

(Ord. 2004-04 § 2: Ord. 2004-03 § 2: Ord. 2003-03 § 2)

A.

Developers shall pay a development fee of one-half of one percent or 0.005 of the equalized assessed value for development of any new residential housing unit or units in any zoning district in the borough, provided no increased density is permitted. If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(1) to permit construction of a residential unit or units in a district restricted against such use, this provision shall apply equally to the new unit(s).

B.

The fee shall be realized on the equalized assessed value, whether units are for sale or for rent.

C.

If a "d" variance is granted for density, 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 six percent rather than the development fee of one-half of one percent. However, 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. The fee shall be based on the equalized assessed value, whether units are for sale or for rent.

(Ord. 2004-04 § 3: Ord. 2004-03 § 3: Ord. 2003-03 § 3)

A.

For nonresidential development in any zoning district within the borough, developers shall pay a fee of one percent, or 0.01 of the equalized assessed value. If a "d" variance is granted to permit nonresidential development in a district restricted against such use, this provision shall apply equally to the nonresidential construction. The fee shall be based on the equalized assessed value, whether units are for sale or for rent.

B.

Where an existing nonresidential structure in any zoning district is expanded, the development fee shall be calculated on the increase in the equalized assessed value of the improved structure.

C.

If a "d" variance is granted for floor area 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 six percent rather than the development fee of one percent. However, if the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the floor area for the purposes of calculating the bonus development fee shall be the highest permitted by right during the two-year period preceding the filing of the "d" variance application. The development fee shall be based on the equalized assessed value of the nonresidential development.

(Ord. 2004-04 § 4: Ord. 2004-03 § 4: Ord. 2003-03 § 4)

A.

Developers of sites zoned for inclusionary development shall be exempt from development fees.

B.

Developers of low- and moderate-income housing units outside of an area zoned for inclusionary development shall be exempt from paying development fees for such units provided said units are fully compliant with all COAH regulations inclusive of those governing construction, occupancy, affordability controls, and affirmative marketing.

C.

Developers that have received preliminary or final site plan or subdivision approval prior to the effective date of the ordinance codified in this chapter shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval. Such exemption shall expire at the time of expiration of the applicable period of statutory protections provided pursuant to the New Jersey Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.).

D.

Developers of additions or improvements to existing residential housing units shall be exempt from paying a development fee.

E.

Developers of land, buildings, outbuildings, and/or other structures dedicated to farming and/or agricultural uses shall be exempt from paying a development fee.

F.

Developers of land, buildings, outbuildings, and/or other structures dedicated to any public park, playground, school, library, museum, or municipal facility, inclusive of volunteer fire and rescue facilities, shall be exempt from paying a development fee.

G.

Developers of land, buildings, accessory buildings and/or other structures dedicated to a house of worship shall be exempt from paying a development fee.

(Ord. 2004-04 § 5: Ord. 2004-03 § 5: Ord. 2003-03 § 5)

Developers shall pay twenty-five (25) percent of the calculated development fee to the borough of Califon at the time of issuance of building permits. The remaining seventy-five (75) percent shall be paid at the issuance of certificate(s) of occupancy.

(Ord. 2004-04 § 6: Ord. 2004-03 § 6: Ord. 2003-03 § 6)

A.

There is created an interest bearing housing trust fund in PNC Bank for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers 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 the borough of Califon 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 written authorization from the governing body to the PNC Bank.

(Ord. 2004-04 § 7: Ord. 2004-03 § 7: Ord. 2003-03 § 7)

A.

Money deposited in the housing trust fund may be used for any activity approved by COAH for addressing the borough of Califon'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 borough of Califon's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.

B.

At least thirty (30) percent of the revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to, down payment and closing cost assistance, low interest loans, and rental assistance. This provision shall not apply in the case of development fees collected to finance an RCA, a rehabilitation program, a new construction project, or unless otherwise exempt as per N.J.A.C. 5:93-8-16(c).

C.

No more than twenty (20) percent of the revenues 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.

(Ord. 2004-04 § 8: Ord. 2004-03 § 8: Ord. 2003-03 § 8)

The ordinance codified in this chapter shall expire if COAH dismisses or denies the borough of Califon's petition for substantive certification, if substantive certification expires prior to the borough receiving COAH's approval of the ordinance codified in this chapter, or if COAH revokes Califon's substantive certification or the ordinance codified in this chapter.

(Ord. 2004-04 § 9)