Independence Township
City Zoning Code
City Zoning Code
ARTICLE V
Affordable Housing Development Fees
§ 255-37 Purpose; establishment and collection of fees.
A.
Purpose. 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 COAH rules. The purpose of this article is to establish standards for collection, maintenance and expenditure of development fees pursuant to COAH's rules. Fees collected pursuant to this article shall be used for the sole purpose of providing low- and moderate-income housing. This article shall be interpreted within the framework of COAH's rules on development fees.
B.
Residential development fees. All residential development shall pay a fee of 1% of equalized assessed value for any eligible residential development.
C.
Nonresidential development fees. All nonresidential development shall pay a fee of 2% of equalized assessed value for any eligible nonresidential development.
D.
Eligible development, ineligible development and exemptions.
(1)
Developers of low- and moderate-income units and inclusionary housing units shall be exempt from paying development fees.
(2)
Developers that have received municipal approvals prior to the effective date of this article shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.
(3)
Developers that expand 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.
E.
Collection of fees.
(1)
Developers shall pay 50% of the calculated development fee to the Township at the issuance of building permits. The development fee shall be estimated by the tax assessor prior to the issuance of building permits.
(2)
Developers shall pay the remaining fee to the Township 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 building permit.
§ 255-38 Housing Trust Fund.
There is hereby created an interest-bearing Housing Trust Fund for the purpose of receiving development fees from residential and nonresidential development. All development fees paid by developers pursuant to this article shall be deposited in this fund.
§ 255-39 Use of funds.
A.
Money deposited in a Housing Trust Fund may be used for any activity approved by COAH for addressing the Township's low- and moderate-income housing obligation. Such activities may include, but are not necessarily limited to: housing rehabilitation and administrative costs necessary to implement Independence Township's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
B.
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: housing consultant services; personnel; consultant services; space costs; consumable supplies; and rental or purchase of equipment.
C.
Development fee revenues shall not be expended to reimburse Independence Township for housing activities that preceded substantive certification.
§ 255-40 Expiration of provisions.
A.
COAH dismisses or denies Independence Township petition for substantive certification;
B.
COAH revokes substantive certification or its certification of this article;
C.
Substantive certification expires prior to Independence Township filing an adopted housing element with COAH, petitioning for substantive certification or receiving COAH's approval of this article.
§ 255-41 Definitions.
As used in this article, the following terms shall have the meanings indicated:
The New Jersey Council on Affordable Housing.
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.
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 except minor construction as herein defined, or of any mining, excavation or landfill, and any use of change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to this chapter.
Money paid by an individual, person, partnership, association, company or corporation for the improvement of property.
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 cost. Final equalized assessed value will be determined at project completion by the municipal Tax Assessor.
Which shall be exempt from the development fees provided herein and shall be defined as any construction activity relating to an existing residential structure that will not result in an increase in the square foot calculation of the building footprint by more than 500 square feet or enhancements to an existing residential structure such as the construction of a deck, porch, patio, sidewalks or walkways.
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 contained therein.