The Borough of Lawnside shall not spend development fees until COAH has approved a plan for spending such fees and the Borough of Lawnside has received third round substantive certification from COAH or a judgment of compliance.

The following terms, as used in this Article, shall have the following meanings:

Within all residential zoning districts, residential developers shall pay a fee of 1% of the equalized assessed value for residential development provided no increased density is permitted.

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.

Within all nonresidential zoning districts, nonresidential developers shall pay a fee of 2% of the equalized assessed value for nonresidential development.

If an increase in floor area ratio is approved 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 6% of the equalized assessed value for nonresidential development. However, if the zoning on a site has changed during the two-year period preceding the filing of such a variance application, the base floor area for the purposes of calculating the bonus development fee shall be the highest floor area permitted by right during the two-year period preceding the filing of the variance application.

Affordable housing developments shall be exempt from development fees. All other forms of new construction shall be subject to development fees unless exempted below.

Developments that have received preliminary or final approval prior to the enactment of a municipal development fee ordinance shall be exempt from development fees unless the developer seeks a substantial change in the approval.

Development fees shall be imposed and collected when an existing structure is expanded or undergoes a change to a more intense use. The development fee shall be calculated based on the increase in the equalized assessed value of the improved structure.

50% of the development fee will be collected at the time of issuance of the building permit. The remaining portion will 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 the building permit is issued and that determined at issuance of certificate of occupancy.

Imposed and collected development fees that are challenged shall be placed in an interest bearing escrow account by the Borough of Lawnside. If all or a portion of the contested fees are returned to the developer, the accrued interest on the returned amount shall also be returned.

There is hereby created a separate, interest-bearing Housing Trust Fund in Susquehanna Patriot Bank, Lawnside, New Jersey, for the purpose of depositing development fees collected from residential and nonresidential developers and proceeds from the sale of units with extinguished controls. All development fees paid by developers pursuant to this Article shall be deposited into this fund.

Within seven days from the opening of the trust fund account, the Borough of Lawnside shall provide COAH with written authorization, in the form of a three-party escrow agreement between the municipality, Susquehanna Patriot Bank, and COAH to permit COAH to direct the disbursement of the funds as provided for in N.J.A.C. 5:94-6.16(b).

No funds shall be expended from the Affordable Housing Trust Fund unless the expenditure conforms to a spending plan approved by COAH. All interest accrued in the Housing Trust Fund shall only be used on eligible affordable housing activities approved by COAH.

Funds deposited in the Housing Trust Fund may be used for any activity approved by COAH to address the municipal fair share. Such activities include, but are not limited to: rehabilitation, new construction, RCAs subject to the provisions of N.J.A.C. 5:94-4.4(d), ECHO housing, purchase of land for affordable housing, improvement of land to be used for affordable housing, purchase of housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, or administration necessary for implementation of the Housing Element and Fair Share Plan. The expenditure of all funds shall conform to a spending plan approved by COAH.

Funds shall not be expended to reimburse the Borough of Lawnside for past housing activities.

After subtracting development fees collected to finance an RCA, a rehabilitation program or a new construction project that are necessary to address the affordable housing obligation of the Borough of Lawnside, at least 30% of the balance remaining 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.

The Borough of Lawnside 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. 5:94-7.

No more than 20% of the revenues collected from development fees each year, exclusive of the fees used to fund an RCA, shall 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, a Housing Element and Fair Share Plan, 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 monitoring requirements. Development fee administrative costs are calculated and may be expended at the end of each year or upon receipt of the fees.

The Borough of Lawnside shall complete and return to COAH all monitoring forms included in the annual monitoring report related to the collection of development fees from residential and nonresidential developers, payments in lieu of constructing affordable units on site, and funds from the sale of units with extinguished controls, and the expenditure of revenues and implementation of the plan certified by COAH. All monitoring reports shall be completed on forms designed by COAH.

The ability for the Borough of Lawnside to impose, collect and expend development fees shall expire with its substantive certification unless the Borough of Lawnside has filed an adopted Housing Element and Fair Share Plan with COAH, has petitioned for substantive certification, and has received COAH's approval of its development fee ordinance. If the Borough of Lawnside fails to renew its ability to impose and collect development fees prior to the expiration of substantive certification, it may resume the imposition and collection of development fees only by complying with the requirements of N.J.A.C. 5:94-6. The Borough of Lawnside shall not impose a development fee on a development that receives preliminary or final approval after the expiration of its substantive certification, nor will the Borough of Lawnside retroactively impose a development fee on such a development. The Borough of Lawnside will not expend development fees after the expiration of its substantive certification.