Within all Zoning Districts, developers shall pay a development fee of one and one-half (1.5%) percent of the equalized assessed value of any eligible residential activity pursuant to subsection 26-1101.7.

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. Example: If an approval allows four units to be constructed on a site that was zoned for two units, the fees could equal one and one-half (1.5%) percent of the equalized assessed value on the first two units; and the specified higher percentage up to 6% of the equalized assessed value for the two additional units, provided zoning on the site has not changed during the two year period preceding the filing of such a variance application.

Developers of low and moderate income units shall be exempt from paying development fees.

Developers that expand an existing structure shall be exempt from paying a development fee.

Developers that have received preliminary or final approval prior to the effective date of this section shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.

Developers shall pay 50% of the calculated development fee to the Borough at the issuance of building permits. The development fee shall be estimated prior to the issuance of building permits.

Developers shall pay the remaining fee to the Borough at the issuance of Certificates of Occupancy. At the issuance of Certificates of Occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at Certificate of Occupancy and the amount paid at issuance of building permit.

An interest-bearing housing trust fund shall be established in Bank of New Jersey for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers pursuant to this section 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 the court.

If the court determines that the Borough is not in conformance with COAH's rules on development fees, the court is authorized to direct the manner in which all development fees collected pursuant to this section shall be expended. Such authorization is pursuant to this section, COAH's rules on development fees and the written authorization from the governing body to the Bank of New Jersey.

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

At least 30% 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. If any development fees are collected to finance a regional contribution agreement, a rehabilitation program or a new construction project, such fees shall be exempt from this requirement.

No more than 20% 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.

Development fee revenues shall not be expended to reimburse the Borough for housing activities that preceded substantive certification.

The court dismisses or denies the Borough's petition for substantive certification.

The court revokes substantive certification or its certification of this § 26-1100.

Substantive certification judgment of repose expires prior to the Borough filing an adopted housing element, with COAH petitioning for substantive certification or receiving COAH's approval of this section.