Lakewood Township City Zoning Code
ARTICLE XII
AFFORDABLE HOUSING PROVISIONS
18-1200 Municipal Housing Liaison.
[Added 3-5-2020 by Ord. No. 2020-08]
A.
The Township of Lakewood has established the position of Municipal Housing Liaison. The Township of Lakewood shall appoint a specific municipal employee to serve as a Municipal Housing Liaison for purposes of administering the Township’s affordable housing program. The Municipal Housing Liaison shall be responsible for overseeing the Township’s affordable housing program, including overseeing the administration of affordability controls on the affordable units and the affirmative marketing of available affordable units in accordance with the Township’s Affirmative Marketing Plan; overseeing the Township’s rehabilitation program and affordability assistance programs and fulfilling monitoring and reporting requirements; and supervising administrative agent(s). Lakewood Township shall adopt a resolution appointing the person to fulfill the position of Municipal Housing Liaison. The Municipal Housing Liaison shall be appointed by the Township Committee and may be a full-time or part-time municipal employee. Compensation may be fixed by the Township Committee at the time of appointment of the Municipal Housing Liaison. The Municipal Housing Liaison shall be approved by the Court and shall be duly qualified through a training program sponsored by Affordable Housing Professionals of New Jersey before assuming the duties of Municipal Housing Liaison.
B.
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Lakewood Township, including the following responsibilities which may not be contracted out to the administrative agent:
1.
Serving as Lakewood Township’s primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;
2.
Compiling, verifying, submitting and posting all monitoring reports as required by the Court and by this chapter;
3.
Coordinating meetings with affordable housing providers and administrative agents, as needed; and
4.
Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing at least annually and more often as needed.
C.
Subject to the approval of the Court, the Township of Lakewood shall designate one or more administrative agent(s) to administer and to affirmatively market the affordable units constructed or rehabilitated in the Township in accordance with UHAC and this chapter and to administer the Township’s rental affordability program. An operating manual for each affordable housing program shall be provided by the administrative agent(s) to be adopted by resolution of the Township Committee and subject to approval of the Court. The operating manual(s) shall be available for public inspection in the office of the Township Clerk, in the office of the Municipal Housing Liaison, and in the office(s) of the administrative agent(s). The Municipal Housing Liaison shall supervise the work of the administrative agent(s).
18-1201 Administrative Agent.
[Added 3-5-2020 by Ord. No. 2020-08]
An administrative agent shall be an independent entity serving under contract to and reporting to the municipality. The fees of the administrative agent shall be paid by the owners of the affordable units for which the services of the administrative agent are required. The administrative agent shall perform the duties and responsibilities of an administrative agent as set forth in UHAC, including those set forth in Sections 5:80-26.14, 16 and 18 thereof. In addition to acting as administrative agent for the Township’s Rehabilitation program, the administrative agent shall oversee the Township’s Affordability Assistance program.
18-1209 Development Fees to Fund Affordable Housing.
[Ord. No. 2018-9]
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, § 8 (N.J.S.A. 52:27D-329.2), and the Statewide Nonresidential 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 or court-approved spending plan may retain fees collected from nonresidential development.
3.
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, §§ 8 and 32 through 38. 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.
B.
Basic requirements.
1.
This section shall not be effective until approved by the Superior Court of New Jersey pursuant to N.J.A.C. 5:93-8.
2.
The Township of Lakewood shall not spend development fees until the Superior Court of New Jersey has approved a plan for spending such fees in conformance with N.J.A.C. 5:93-5.1(c).
3.
Because the Township of Lakewood is an urban aid municipality pursuant to N.J.S.A. 52:27D-178 et seq., its adoption of a Municipal Development Fee Ordinance is governed by N.J.A.C. 5:94-6.3, which provides that its Municipal Development Fee Ordinance can be approved without first petitioning for substantive certification. Additionally, pursuant to N.J.A.C. 5:94-6.2(b), because the Township is an urban aid municipality, the approval of its Municipal Development Fee Ordinance does not require that the Township first petition with an adopted housing element and fair share plan.
C. AFFORDABLE HOUSING DEVELOPMENT COAH OR THE COUNCIL DEVELOPER DEVELOPMENT FEE DEVELOPMENT FEE PERIOD EQUALIZED ASSESSED VALUE GREEN BUILDING STRATEGIES
Definitions. The following terms, as used in this section, shall have the following meanings:
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 one-hundred-percent affordable development.
The New Jersey Council on Affordable Housing, established under the Act, or such other Agency as is created by the Legislature which has primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the state.
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.
Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:93-8.
The period of time for which the Court or COAH specifies that the Township's Development Fee Ordinance will be in effect pursuant to N.J.A.C. 5:94-6.3.
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 §§ 1, 5 and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through N.J.S.A. 54:1-35c).
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.
D.
(Reserved)
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 two and one-half (2.5%) percent 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 two and one-half (2.5%) percent 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 two and one-half (2.5%) percent 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 a 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 development fee of two and one-half (2.5%) percent, unless otherwise exempted below.
b.
The fee of two and one-half (2.5%) percent 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 the Form N-RDF, State of New Jersey Nonresidential 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, or P.L. 2016, c. 14 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 Lakewood 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 Zoning Officer.
2.
For nonresidential developments only, the developer shall also be provided with a copy of Form N-RDF, State of New Jersey Nonresidential 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 as per the instructions provided in Form N-RDF. The Tax Assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided 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 notifies 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 Lakewood 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 § 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
8.
50% of the development fee shall be collected by the Zoning Officer at the time of issuance of the zoning 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 the time of the issuance of the zoning permit and that determined at issuance of the certificate of occupancy.
9.
Appeal of development fees.
a.
(Reserved)
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 Lakewood. 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.
Establishment of fund. There is hereby established in the Township of Lakewood an interest-bearing account known as the "Lakewood Township Affordable Housing Trust Fund," which shall have as its primary purpose support of low- and moderate-income housing in the Township of Lakewood and the region in which it is included, in furtherance of the mandates of the Constitution of the State of New Jersey. Trustees of the fund shall be the Township Committee of the Township of Lakewood, and, in accordance with the provisions of N.J.A.C. 5:93-8.19, the Superior Court of the State of New Jersey may, upon notice to the Township Clerk, direct the disbursement of development fees.
2.
The Township Committee, acting as trustees of the fund, shall have the power to appoint a person or organization as Housing Officer to administer the fund on its behalf and at its direction.
3.
Development fees collected from nonresidential developers and proceeds from the sale of units with extinguished controls shall be deposited in the Township of Lakewood's affordable housing trust fund maintained by the Chief Financial Officer.
4.
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 Lakewood's affordable housing program.
5.
All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by COAH or the Court.
6.
The Township of Lakewood shall provide COAH and/or the DCA with written authorization, in the form of a three-party escrow agreement between the Township, the bank, and COAH and/or DCA to permit COAH and/or DCA to direct the disbursement of the funds as provided for in N.J.A.C. 5:93-8.19.
H.
Use of Funds.
1.
The expenditure of all funds shall conform to a spending plan approved by COAH or the Court. Funds deposited in the housing trust fund may be used for any activity approved by COAH or the Court to address the Township of Lakewood's fair share obligation or the need for Affordable Housing in Lakewood 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. 5:93-8.16 and specified in the approved spending plan.
2.
Funds shall not be expended to reimburse the Township of Lakewood 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 Lakewood 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. 5:93–8.16(d).
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, 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 COAH's or the Court's monitoring requirements. 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. The Township of Lakewood shall complete and return to COAH and/or the Court all monitoring forms included in monitoring requirements related to the collection of development fees from 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 of Lakewood's housing program, as well as to the expenditure of revenues and implementation of the plan certified by COAH or approved by the Court. All monitoring reports shall be completed on forms designed by COAH and/or the Court.
J.
Ongoing collection of fees. The ability for the Township of Lakewood to impose, collect and expend development fees shall expire at the end of the Development Fee Period. If the Township of Lakewood fails to renew its ability to impose and collect development fees prior to the expiration of the Development Fee Period, 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 § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). Unless extended, the Township of Lakewood shall not expend development fees after the expiration of the Development Fee Period.