Manasquan City Zoning Code
§ 35-35.4
Residential Development Fees.
[Amended 3-16-2026 by Ord. No. 2587-26]
a.
Imposed fees:
1.
In the R-1, R-2, and R-3 One-Family Residential, R-4 Beachfront One-Family Residential, R-5 One-Family, R-M Multi-Family Residential, and R-PM Planned Multi-Family Residential Zones, where a developer develops land for residential purposes and receives no right to increased density, the developer shall pay a development fee of 0.5% of the equalized assessed value for residential development. Development fees shall also be imposed and collected when an additional dwelling unit is added to an existing residential structure; in such cases, the fee shall be calculated based on the increase in the equalized assessed value of the property due to the additional dwelling unit.
2.
When an increase in residential density is permitted pursuant to a "d" variance granted under N.J.S.A. 40:55D-70d(5), developers shall be required to pay a "bonus" development fee of 6.0% of the equalized assessed value for each additional unit that may be realized, except that this provision shall not be applicable to a development that will include affordable housing. 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 0.5% of the equalized assessed value on the first two units; and the specified higher percentage of 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.
b.
Eligible exactions, ineligible exactions and exemptions for residential development.
1.
Affordable housing developments, developments where the developer is providing for the construction of affordable units elsewhere in the municipality, and developments where the developer has made an eligible payment in lieu of on-site construction of affordable units, if permitted by ordinance, or by agreement with the municipality and if approved by a municipality prior to the statutory elimination of payments in-lieu on March 20, 2024 per P.L. 2024, c.2, shall be exempt from development fees.
2.
Developments that have received preliminary or final site plan approval prior to the adoption of this section and any preceding ordinance permitting the collection of development fees shall be exempt from the payment of development fees, unless the developer seeks a substantial change in the original approval. Where a site plan approval does not apply, the issuance of a building permit shall be synonymous with preliminary or final site plan approval for the purpose of determining the right to an exemption. In all cases, the applicable fee percentage shall be determined based upon the development fee ordinance in effect on the date that the building permit is issued.
3.
Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use, is demolished and replaced, or is expanded, if the expansion is not otherwise exempt from the development fee requirement. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.
(a)
Residential additions and expansions that result in an increase in equalized assessed value (EAV) that are equal to, or less than, 50% of the EAV of the original structure shall not be subject to a fee, provided that the expansion does not increase the number of dwelling units. However, if a property owner applies for two or more construction permits within a five-year period, then the cumulative increase in EAV compared to the EAV of the original structure shall be used to determine the percentage increase in the EAV.
Example: If in Year One, the EAV is $200,000, and the property owner constructs an addition which increases the EAV to $300,000, then the addition is exempt from the payment of a development fee since the increase in equalized assessed value of $100,000 is 50% of the EAV of the original structure.
($300,000 - $200,000 = $100,000) which is equal to 50% of the EAV of the original structure ($100,000/$200,000 = 0.50 or 50%).
If in Year Three, the property owner seeks to construct a second addition that increases the EAV by an additional $50,000, then the property owner would have to pay a development fee because the cumulative increase to the original EAV is more than 50%. In that case, the fee would be based on the total cumulative increase in EAV of $150,000.
(Original EAV ($200,000) + EAV increase of Year One addition ($100,000) + EAV increase of Year Three ($50,000) = New EAV ($350,000). New EAV ($350,000) - Original EAV ($200,000) = Cumulative EAV Increase ($150,000) which is equal to 75% of the EAV of the original structure ($150,000/$200,000 = 0.75 or 75%).
4.
The Borough exempts the following types of development from residential development fees:
(a)
Nonprofit organizations, which have received tax exempt status pursuant to Section 501(c) 3 of the Internal Revenue Code, providing evidence of that status is submitted to the Borough Clerk and the Borough Tax Assessor together with a certification that services of the organization are provided at reduced rates to those who establish an inability to pay such charges.
(b)
Federal, State, County, and local governments.
(c)
Reconstruction of existing owner occupied residential structures as a result of fire, flood or natural disaster.
