Ocean Township Ocean County
City Zoning Code
City Zoning Code
ARTICLE XXI
Affordable Housing Development Fees
§ 410-170 Purpose and intent.
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, N.J.S.A. 52:27D-301 et seq., and the State Constitution subject to the adoption of rules by the Council on Affordable Housing (COAH). The purpose of this chapter is to establish standards for the collection, maintenance and expenditure of affordable housing development fees in the Township of Ocean pursuant to COAH's rules. Fees collected pursuant to this chapter shall be used for the sole purpose of providing low- and moderate-income housing and funding eligible affordable housing activities pursuant to COAH's rules. This chapter shall be interpreted within the framework of COAH's rules on development fees.
§ 410-171 Residential development fees.
[Amended by Ord. No. 2005-16; 3-30-2017 by Ord. No. 2017-5]
A.
Unless otherwise exempted as per § 410-173 of this chapter, developers of residential development shall pay development fee of 1% of the equalized assessed value (EAV) of the residential development; provided that no increased density is permitted greater than that currently permitted.
B.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(5), then the additional residential units realized above what is permitted by right under the existing zoning will incur a bonus development fee of 6% of the EAV rather than the development fee of 1%. If the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the 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 "d" variance application.
C.
Within the Edgemont Redevelopment Area, the Waretown Village Redevelopment Area, and the Route 9 Phase 1 Redevelopment Area, or any other redevelopment area designated by the Township governing body pursuant to the requirements of the Local Redevelopment and Housing Law, P.L. 1992, c. 79 (N.J.S.A. 40A:12A-1 et seq.), any developer designated as a redeveloper by the Township's redevelopment entity may pay a fee in lieu of constructing low- or moderate-income housing units, if permitted by the redevelopment plan adopted for that area. The terms and requirements for such payments in lieu of construction shall be in accordance with COAH regulations and shall be specified in the redevelopment plan governing the area.
§ 410-172 Nonresidential development fees.
[Amended by Ord. No. 2005-16; 3-30-2017 by Ord. No. 2017-5]
A.
Unless otherwise exempted as per § 410-173 of this chapter, developers of nonresidential development shall pay an affordable housing development fee as follows:
(1)
Two and one-half percent of the equalized assessed value (EAV) for all new nonresidential development.
(2)
Two and one-half percent of the increase in equalized assessed value (EAV) due to expansion, full or partial demolition and reconstruction, improvement and/or alteration of any nonresidential building.
B.
If a "d" variance is granted pursuant to N.J.S.A. 40:55D-70d(4), then the additional floor area realized greater than that which is permitted by right under the existing zoning will incur a bonus development fee of 6% of the EAV rather than the development fee of 2 1/2%. If the zoning on a site has changed during the two-year period preceding the filing of the "d" variance application, the floor area permitted by right for the purposes of calculating the bonus development fee shall be the maximum amount of floor area permitted by right during the two-year period preceding the filing of the "d" variance application.
§ 410-173 Eligible exaction, ineligible exaction and exemptions.
A.
Developers of inclusionary developments shall be exempt from paying affordable housing development fees. Developers making a payment to the Ocean Township housing trust fund in lieu of construction of on-site affordable housing units shall be deemed to be developers of inclusionary developments within the meaning of this chapter and shall be exempted from paying an affordable housing development fee other than the payment in lieu of construction.
B.
Developments that have received preliminary or final approval prior to the effective date of this chapter and where the rights and protections for such approval granted under N.J.S.A. 40:55D-49 have not expired or were extended as permitted by law, shall be exempted from the payment of a development fee pursuant to this chapter unless the developer seeks a substantial change in the approval. The phases or sections of a planned development or planned residential development that were approved as part of a general development plan approval, but have not yet received preliminary or final approval shall be subject to an affordable housing development fee in accordance with the requirements of this chapter.
C.
Development by any churches or places of worship, or any nonprofit fraternal, social, charitable, or eleemosynary organizations formed and legally established in accordance with the laws of the State of New Jersey, or any public school district or board of education, or any other public authority, shall be exempted from paying a development fee pursuant to this section.
§ 410-174 Determination and collection of fees.
The Township Tax Assessor shall estimate the required development fee prior to the issuance of building permits. Developers shall pay 50% of the estimated fee to the Township prior to the issuance of building permits. Prior to issuance of a certificate of occupancy, the Township Tax Assessor shall estimate the remaining fee required pursuant to this subsection based on one of the options in N.J.A.C. 5:93-8.13. The developer shall be responsible for paying the difference between the portion of the estimated fee paid at building permit and the full amount of the fee determined at the time of certificate of occupancy.
§ 410-175 Housing trust fund.
[Amended 7-18-2023 by Ord. No. 2023-14]
A.
There is created an interest-bearing housing trust fund in a federally insured banking institution determined by the Township for the purpose of receiving affordable housing development fees pursuant to this chapter. All fees paid pursuant to this chapter 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 COAH.
B.
If COAH determines that Ocean Township is not in conformance with COAH's rules on development fees, COAH is authorized to direct the manner in which all development fees collected pursuant to this chapter shall be expended. Such authorization is pursuant to this chapter, COAH's rules on development fees, and the written authorization from the Township governing body to the federally insured banking institution.
§ 410-176 Use of funds.
A.
Money deposited in the housing trust fund may be used for any activity approved by COAH addressing the Township'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 of 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 Township's housing plan element and fair share plan. The expenditure of all money shall conform to a spending plan approved by COAH.
B.
At least 30% of the fees collected shall be devoted to render units more affordable unless exempt as per N.J.A.C. 5:93-8.16(c). Such exemptions include fees used to fund the Township's rehabilitation program, a regional contribution agreement (RCA), or a new construction project. Examples of activities that render units more affordable include, but are not limited to, down payment and closing cost assistance, low-interest loans and rental assistance.
C.
No more than 20% of the fees collected 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.
D.
Development fee revenues shall not be expended to reimburse the Township for housing activities that preceded a first- or second-round substantive certification or a judgement of repose.
§ 410-177 Expiration of chapter.
This chapter shall expire if:
A.
COAH dismisses or denies the Township's petition for substantive certification;
B.
COAH revokes substantive certification or this chapter; or
C.
The Township's substantive certification expires prior to Ocean Township filing an adopted housing element with COAH that addresses its third-round housing obligation and petitioning for third-round substantive certification and COAH's approval of its development fee ordinance.
§ 410-178 (Reserved) [1]
[1]
Editor's Note: Former § 410-78, Exemption for certain residential structures sustaining substantial damage, added 5-9-2013 by Ord. No. 2013-12, was repealed 2-20-2024 by Ord. No. 2024-2.