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Southampton Township
City Zoning Code

12-4.12 Fair

share plan and affordable housing.

[Amended by Ord. No. 2004-6; Ord. No. 2005-4; Ord. No. 2005-15; Ord. No. 2005-16; Ord. No. 2010-5; 9-19-2017 by Ord. No. 2017-06; 2-20-2024 by Ord. No. 2024-01; 3-18-2025 by Ord. No. 2025-02]
a. 
Purpose. This subsection sets forth regulations regarding low and moderate income housing units in Southampton Township that are consistent with the provisions of N.J.A.C. 5:93 et seq. as effective on June 6, 1994. These rules are pursuant to the Fair Housing Act of 1985 and Southampton Township's constitutional obligation to provide for its fair share of low and moderate income housing.
b. 
General requirements.
1. 
Southampton Township's new construction or inclusionary component will be divided equally between low and moderate income households as per N.J.A.C. 5:93-2.20.
2. 
At least 1/2 of all units within each inclusionary development shall be affordable to low income households; and at least 1/2 of all rental units will be affordable to low income households; and at least 1/3 of all units in each bedroom distribution pursuant to N.J.A.C. 5:93-7.3 will be affordable to low income households.
3. 
The Board shall deny subdivision and site plan approval unless the developer complies with the requirements to provide low and moderate income housing pursuant to the provisions of this chapter. The Board may impose any reasonable conditions to ensure compliance.
4. 
Inclusionary developments that are not restricted to senior citizens will be structured in conjunction with realistic market demands so that:
(a) 
The combination of efficiency and one bedroom units is at least 10% and no greater than 20% of the total low and moderate income units;
(b) 
At least 30% of all low and moderate income units are two bedroom units;
(c) 
At least 20% of all low and moderate income units are three bedroom units; and
(d) 
Low and moderate income units restricted to senior citizens may utilize a modified bedroom distribution. At a minimum, the number of bedrooms will equal the number of senior citizen low and moderate income units within the inclusionary development.
5. 
In conjunction with realistic market information, the following criteria will be used in determining maximum rents and sales prices:
(a) 
Efficiency units will be affordable to one person households;
(b) 
One bedroom units will be affordable to 1.5 person households;
(c) 
Two bedroom units will be affordable to three person households;
(d) 
Three bedroom units will be affordable to 4.5 person households;
(e) 
Median income by household size will be established by a regional weighted average of the uncapped § 8 income limits published by HUD as per N.J.A.C. 5:93-7.4(b);
(f) 
The maximum average rent and price of low and moderate income units within each inclusionary development will be affordable to households earning 57.5% of median income;
(g) 
Moderate income sales units will be available for at least three different prices and low income sales units will be available for at least two different prices;
(h) 
Owner occupied and rental units for low and moderate income units will utilize the same heating source as market units within an inclusionary development;
(i) 
Low income units will be reserved for households with a gross household income less than or equal to 50% of the median income approved by COAH; moderate income units will be reserved for households with a gross household income less than 80% of the median income approved by COAH as per N.J.A.C. 5:93-9.16; and
(j) 
The regulations outlined in N.J.A.C. 5:93-9.15 and 9.16 will be applicable for purchased and rental units.
6. 
Affordability; sales price and rental limitations.
(a) 
Sales unit.
(1) 
Monthly cost of a low or moderate income unit, including mortgage (principal and interest), taxes, insurance and homeowner's or condominium association fees, shall not exceed 28% of the eligible gross household income for low and moderate income households. The initial purchase price assumes a down payment of 5%. See N.J.A.C. 5:93-9.1(b).
(2) 
The master deeds of inclusionary developments will regulate condominium or homeowner association fees or special assessments of low and moderate income purchasers at 1/3 of those paid by market purchasers. The ratio is consistent with the requirement per N.J.A.C. 5:93-7.4(e). Once established within the master deed, the ratio will not be amended without prior approval from COAH.
(3) 
Southampton Township will follow the general provisions concerning uniform deed restriction liens and enforcement through certificates of occupancy or reoccupancy on sale units as per N.J.A.C. 5:93-9.3.
(4) 
Southampton Township will require a certificate of reoccupancy for any occupancy of a low or moderate income sales unit resulting from a resale as per N.J.A.C. 5:93-9.3(c).
(5) 
Municipal, State, nonprofit and seller options regarding sale units will be consistent with N.J.A.C. 5:93-9.5 through 9.8. Municipal rejection of repayment options for sale units will be consistent with N.J.A.C. 5:93-9.9.
(6) 
The continued application for options to create, rehabilitate or maintain low and moderate income sale units will be consistent with N.J.A.C. 5:93-9.10.
(7) 
Eligible capital improvements prior to the expiration of controls on sale units will be consistent with N.J.A.C. 5:93-9.11.
(8) 
The regulations detailed in N.J.A.C. 5:93-9.12 through 9.14 will be applicable to low and moderate income units that are for sale units.
(b) 
Rental unit. The monthly cost of a low or moderate income unit, including contract, rent and utilities (gas, electric, oil, water and sewer) shall not exceed 30% of the gross monthly household income for low and moderate income households.
7. 
Maintaining affordability.
(a) 
Low and moderate income units, whether for sale or rental, shall remain affordable to low and moderate income households for 30 years from the date of issuance of Certificate of Occupancy for low and moderate income units. The thirty-year period for rental units shall commence on the date of issuance of the Certificate of Occupancy in such development. The low and moderate income for sale and rental units shall be controlled by a deed restriction and mortgage lien as adopted by COAH (N.J.A.C. 5:93-9.2) which shall ensure maintaining affordability of such units.
(b) 
To provide assurances that low and moderate income units are created with controls on affordability over time and that low and moderate income households occupy these units, Southampton Township will designate the Housing Affordability Service (HAS) with the responsibility of ensuring the affordability of sales and rental units over time. The HAS will be responsible for those activities detailed in N.J.A.C. 5:93-9.1(a).
(1) 
In addition, the HAS will be responsible for utilizing the verification and certification procedures outlined in N.J.A.C. 5:93-9.1(b) in placing households in low and moderate units.
(2) 
Housing units created through the conversion of a nonresidential structure will be considered a new housing unit and will be subject to thirty-year controls on affordability. The HAS will require an appropriate deed restriction and mortgage lien subject to COAH's approval.
(c) 
In zoning for inclusionary developments the following is required:
(1) 
Low and moderate income units will be built in accordance with N.J.A.C. 5:93-5.6(d):
Minimum % of Low/Moderate Income Units Completed
% of Market Housing Units Completed
0
25
10
25 + 1 unit
50
50
75
75
100
90
100
(d) 
Municipal housing liaison.
(1) 
Establishment of position of Municipal Housing Liaison. There is hereby established the position of Municipal Housing Liaison for the Township of Southampton, which is the employee charged by the Governing Body with the responsibility for oversight and administration of the Township's affordable housing program.
(2) 
Subject to the approval of the Council on Affordable Housing (COAH), the Municipal Housing Liaison shall be appointed by the Governing Body and may be a full- or part-time municipal employee.
(3) 
The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Township, including the following responsibilities which may not be contracted out, exclusive of item 6 which may be contracted out:
(i) 
Serving as the Township's primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents, and interested households;
(ii) 
Monitoring the status of all restricted units in the Township's Fair Share Plan;
(iii) 
Compiling, verifying, and submitting annual reports as required by COAH;
(iv) 
Coordinating meetings with affordable housing providers and Administrative Agents, as applicable;
(v) 
Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH;
(vi) 
If applicable, serving as the Administrative Agent for some or all of the restricted units in the Township as described in paragraph (4) below.
(4) 
Subject to approval by COAH, the Township may contract with or authorize a consultant, authority, government or any agency charged by the Governing Body, which entity shall have the responsibility of administering the affordable housing program of the Township, except for those responsibilities which may not be contracted out pursuant to paragraph (3) above. If the Township contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting Administrative Agent.
8. 
Rehabilitated units:
(a) 
Rehabilitated owner-occupied single-family housing units that are improved to code standard will be subject to affordability controls for at least six years.
(b) 
Rehabilitated renter-occupied housing units that are improved to code standard will be subject to affordability controls for at least 10 years.
9. 
Rental units:
(a) 
Affordability controls in accessory apartments will be for a period of at least 10 years, except if the apartment is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.13, then the controls on affordability will extend for 30 years.
(b) 
Alternate living arrangements will be controlled in a manner suitable to COAH, that provides assurances that such a facility will house low and moderate income households for at least 10 years except if the alternative living arrangement is to receive a rental bonus credit pursuant to N.J.A.C. 5:93-5.13, then the controls on affordability will extend for 30 years.
10. 
Section 14(b) of the Fair Housing Act, N.J.A.C. 52:27D-301 et seq., incorporates the need to eliminate cost generating features from Southampton Township's Land Use Ordinances. Accordingly, Southampton Township will adhere to the components of N.J.A.C. 5:93-10.1 through 10.3.
11. 
Southampton Township will undertake a rehabilitation program to rehabilitate 48 substandard housing units occupied by low and moderate income households. Southampton Township has designated the Burlington County Department of Economic Development to administer the rehabilitation program. The Burlington County Department of Economic Development will prepare a marketing plan for rehabilitation program. The rehabilitation program will be consistent with N.J.A.C. 5:93-5.2(b) through 5.2(1). Southampton Township will administer the rental rehabilitation program. A rental rehabilitation manual is available through the Township.
12. 
The following sites have been designated to meet Southampton Township's inclusionary component outlined in the housing and fair share plan which was adopted by the Land Development Board in August 2002; RR1 (Rural Residential) and TC1 (Town Center Extension).
c. 
Affirmative marketing plan. Southampton Township has a fair share obligation of 153 units of which 86 is new construction. This subsection will apply to all developments that contain proposed low and moderate income units and any future developments that may occur. The affirmative marketing plan is a regional marketing strategy designed to attract buyers and/or renters of all majority and minority groups, regardless of sex, age or number of children, to housing units which are being marketed by a developer/sponsor, municipality and/or designated administrative agency of affordable housing. The plan will address the requirements of N.J.A.C. 5:93-11. In addition, the plan prohibits discrimination in the sale, rental, financing or other services related to housing on the basis of race, color, sex, religion, handicap, age, familial status/size or national origin. Southampton Township is in Housing Region 5 consisting of Burlington, Camden and Gloucester Counties. The affirmative marketing program is a continuing program and will meet the following requirements:
1. 
All newspaper articles, announcements, and requests for applications for low and moderate income units will appear in the official newspaper of record such as The Burlington County Times and The Central Record.
2. 
The primary marketing will take the form of at least one press release and one paid display advertisement sent to the above publication. Additional advertising and publicity will be on an "as needed" basis.
3. 
The advertisement will include a description of the:
Street address of units;
Directions to housing units;
Number of bedrooms per unit;
Range of prices/rents;
Size of units;
Income information; and
Location of applications including business hours and where/how applications may be obtained.
4. 
The following regional radio and/or cable television stations will be used:
Lenape District Television Station
National Public Radio - WHYY
5. 
The following is the location of applications, brochures, signs, and/or posters used as part of the affirmative marketing program including specific employment centers within the region:
Memorial Hospital; and
Lenape High School District;
Burlington County College;
Township Administrative Building;
Township Library;
Developer's sales office;
Burlington County Library;
Camden County Library; and
Gloucester County Library.
6. 
The following is a listing of community contact persons and/or organizations that will aid in the affirmative marketing program with particular emphasis on contacts that will reach out to groups that are least likely to apply for housing within the region:
Burlington County Community Development;
Public Housing Directors' Association; and
NJ Association of Housing and Redevelopment Organization.
7. 
Quarterly flyers and applications will be sent to each of the following agencies for publication in their journals and for circulation among their members:
Board of Realtors in Burlington, Camden and Gloucester Counties.
8. 
Applications will be mailed to prospective applicants upon request.
9. 
Additionally, quarterly informational circulars and applications will be sent to the chief administrative employees of each of the following agencies in the counties of Burlington, Camden and Gloucester:
Office on Aging;
Housing Agency or Authority; and
Area Community Action Agencies.
10. 
The following is a description of the random selection method that will be used to select occupants of low and moderate income housing:
HAS follows all guidelines and marketing plans as prescribed by the Department of Housing and Urban Development and the State of New Jersey.
11. 
The HAS is the agency under contract with Southampton Township to administer the affirmative marketing program. The HAS has the responsibility to income qualify low and moderate income households; to place income eligible households in low and moderate income units with income qualified households; to continue to qualify households for reoccupancy of units as they become vacant during the period of affordability controls; to assist with advertising and outreach to low and moderate income households; and to enforce the terms of the deed restriction and mortgage loan as per N.J.A.C. 5:93-9.1. The specified municipal staff person in Southampton Township is the designated Housing Officer to act as a liaison to the COAH. The HAS will provide counseling services to low and moderate income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements and landlord/tenant law. Southampton Township designates the Housing Officer as the official staff person to act as an affordable housing liaison with COAH.
12. 
Households who live or work in the Housing Region 5 may be given preference for sales and rental units constructed within that housing region. Applicants living outside the housing region will have an equal opportunity for units after regional applicants have been initially serviced. Southampton Township intends to comply with N.J.A.C. 5:93-11.7.
13. 
All developers of low and moderate income housing units will be required to assist in the marketing of the affordable units in their respective developments.
14. 
The marketing program will commence at least 120 days before the issuance of either temporary or permanent certificates of occupancy. The marketing program will continue until all low and moderate income housing units are initially occupied and for as long as affordable units are deed restricted and occupancy or reoccupancy of units continues to be necessary.
15. 
The Southampton Township will comply with monitoring and reporting requirements as per N.J.A.C. 5:93-11.6 and 12.1.
d. 
(Reserved)
e. 
Uniform affordable housing productions based upon "growth share."
1. 
Residential development. Except as otherwise provided below, any residential development in any zoning district in the Township shall provide one unit of affordable housing as defined in COAH's rules for every eight new market-rate units that are produced. Any fraction 0.5% or above shall be rounded to the next higher number. Any subdivision or site plan proposing between three units and seven units shall be responsible for making a monetary contribution to the Township's Affordable Housing Trust Fund by multiplying the total number of new lots and/or units by the sum of $4,375. Said payment shall be in addition to the payment of affordable housing development fees and shall be due and owing at the time of execution of the subdivision plat or subdivision deeds and/or execution of the approved site plan by the Township.
2. 
Nonresidential development. All nonresidential development applications submitted to the Land Development Board shall be required to produce one non-age-restricted affordable housing unit meeting COAH's eligibility criteria for every 25 new jobs or employment opportunities created in the Township as a result of the proposed nonresidential development project. The calculation of the number of jobs and employment opportunities shall be in accordance with Appendix E to N.J.A.C. 5:94-1 et seq., entitled "UCC Use Groups for Projecting and Implementing Nonresidential Components of Growth Share." All calculations resulting in a number of jobs or housing units that is not a whole number shall be rounded to the next higher number if the result is 0.5 or greater. Any nonresidential development application that will produce less than 25 new jobs or employment opportunities pursuant to Appendix E, shall be responsible for making a monetary contribution to the Township's Affordable Housing Trust Fund by multiplying each new job that is produced by the sum of $1,400. Said payment shall be in addition to the payment of affordable housing development fees and shall be due and owing at the time of execution of the subdivision plat or subdivision deeds and/or execution of the site plan by the Township.
3. 
The applicant may choose to satisfy its affordable housing production obligation(s) through the mechanisms permitted in COAH's rules, including, with Southampton Township's advanced written permission (a) on-site housing production in connection with residential projects, (b) the purchase of one or more existing market-rate homes at another location in the community and their conversion to affordable price-restricted homes in accordance with COAH's criteria, regulations and policies, (c) the funding of a Regional Contribution Agreement ("RCA"), and/or (d) participation in gut rehabilitation and/or buydown/write-down, buy-down/rent-down programs. Evidence of compliance shall be produced to the Land Development Board at the time of application filing and shall be a condition of all "completeness" determinations. Thereafter, evidence of satisfaction of affordable housing compliance shall be an automatic condition of all approvals that must be satisfied prior to the issuance of the project's first building permit.
4. 
Low and moderate income split and compliance with COAH's rules. The affordable unit(s) to be produced pursuant to Subsections 1, 2 and 3 (above) shall be available to a low income individual or household should only one affordable unit be required. Thereafter, each of the units shall be split evenly between low and moderate income individuals and households except in the event of an odd number in which event the unit shall be a low income unit. All affordable units shall strictly comply with COAH's rules and policies including, but not limited to, phasing, bedroom distribution, controls on affordability, range of affordability, affirmative marketing, income qualification, etc. It shall be the developer's responsibility, at its cost and expense, to arrange for a COAH and Township approved qualification service to ensure full COAH compliance and file such certifications, reports and/or monitoring forms as may be required by COAH or the Court to verify COAH compliance of each affordable unit.
5. 
Exemption. Residential inclusionary projects constructed in the affordable housing districts identified in the Township's COAH and/or judicially approved second round Housing Element and Fair Share Plan shall be exempt from the requirements of this Subsection 5. However, a nonresidential growth share responsibility in accordance with this paragraph shall be attributable to all nonresidential uses constructed in mixed-use and/or nonresidential projects in the Township's existing affordable housing districts. Moreover, all growth share affordable units produced by virtue of this paragraph shall be exempt from the payment of residential affordable housing development fees. However, market-rate residential and nonresidential development fees shall remain due and owing pursuant to the Township's COAH and/or Court approved Development Fee Ordinance except for exempt residential inclusionary developments.
f. 
Development fees.
1. 
Purpose. This subsection establishes standards for the collection, maintenance, and expenditure of development fees that are consistent with DCA's regulations developed in response to P.L. 2024, c. 2, Sections 33-35 (N.J.S.A. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7). Fees collected pursuant to this subsection shall be used for the sole purpose of providing very-low-, low- and moderate-income housing in accordance with a Court-approved spending plan.
2. 
Basic requirements.
(a) 
This subsection shall not be effective until approved by the Court.
(b) 
The Township of Southampton shall not spend development fees until the Court has approved a plan for spending such fees (spending plan).
3. 
Definitions. The following terms, as used in this subsection, shall have the following meanings:
AFFORDABLE HOUSING DEVELOPMENT
Means 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 100% affordable housing development.
COMMISSIONER
Means the Commissioner of Community Affairs.
CONSTRUCTION
Means new construction and additions, but does not include alterations, reconstruction, renovations, and repairs as those terms are defined under the State Uniform Construction Code promulgated pursuant to the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 et seq.).
DEPARTMENT
Means the Department of Community Affairs.
DEVELOPER
Means 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.
DEVELOPMENT FEE
Means money paid by a developer for the improvement of property as authorized by Holmdel Builder's Association v. Holmdel Township, 121 N.J. 550 (1990) and the Fair Housing Act of 1985, N.J.S.A. 52:27d-301 et seq., and regulated by applicable COAH Rules.
EQUALIZED ASSESSED VALUE
Means 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 Sections 1, 5, and 6 of P.L. 1973, c. 123 (N.J.S.A. 54:1-35a through 54:1-35c).
GREEN BUILDING STRATEGIES
Means 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.
MIXED-USE DEVELOPMENT
Means any development which includes both a non-residential development component and a residential development component, and shall include developments for which 1) there is a common developer for both the residential development component and the non-residential development component, provided that for purposes of this definition, multiple persons and entities may be considered a common developer if there is a contractual relationship among them obligating each entity to develop at least a portion of the residential or non-residential development, or both, or otherwise to contribute resources to the development; and 2) the residential and non-residential developments are located on the same lot or adjoining lots, including but not limited to lots separated by a street, a river, or another geographical feature.
NON-RESIDENTIAL DEVELOPMENT
Means: 1) any building or structure, or portion thereof, including but not limited to any appurtenant improvements, which is designated to a use group other than a residential use group according to the State Uniform Construction Code promulgated to effectuate the State Uniform Construction Code Act, P.L. 1975, c. 217 (N.J.S.A. 52:27D-119 et seq.), including any subsequent amendments or revisions thereto; 2) hotels, motels, vacation timeshares, and child-care facilities; and 3) the entirety of all continuing care facilities within a continuing care retirement community which is subject to the Continuing Care Retirement Community Regulation and Financial Disclosure Act, P.L. 1986, c. 103 (N.J.S.A. 52:27D-330 et seq.).
NON-RESIDENTIAL DEVELOPMENT FEE
Means the fee authorized to be imposed pursuant to Sections 32 through 38 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.1 through 40:55D-8.7).
RELATING TO THE PROVISION OF HOUSING
Shall be liberally construed to include the construction, maintenance, or operation of housing, including but not limited to the provision of services to such housing and the funding of any of the above.
SPENDING PLAN
Means a method of allocating funds collected and to be collected pursuant to an approved municipal development fee ordinance, or pursuant to P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.1 et seq.) for the purpose of meeting the housing needs of low- and moderate-income individuals.
TREASURER
Means the Treasurer of the State of New Jersey.
4. 
Mandatory development fees.
(a) 
Residential development fees.
(1) 
Imposed fees.
(i) 
Within all residential zones and/or developments in the Township of Southampton, residential developers, except for developers of the types of development specifically exempted below, shall pay a fee of 1.5% of the equalized assessed value for residential development, provided that no increased density is permitted.
(ii) 
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 are required to pay a development fee of 6% of the equalized assessed value for each additional unit that is realized. However, 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 would equal 1.5% of the equalized assessed value on the first two units, and 6% of the equalized assessed value for the two additional units, provided that zoning on the site has not changed during the two-year period preceding the filing of such a variance application.
(2) 
Eligible exactions, ineligible exactions and exemptions for residential development.
(i) 
Affordable housing developments and developments where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from development fees.
(ii) 
Developments that have received preliminary or final site plan approval prior to the adoption of a municipal development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval. Where a site plan approval does not apply, a zoning and/or building permit shall be synonymous with preliminary or final site plan approval for this purpose. The fee percentage shall be vested on the date that the building permit is issued.
(iii) 
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.
(iv) 
Developers of residential structures demolished and replaced as a result of fire damage, flood or similar natural disaster, shall be exempt from paying a development fee.
(b) 
Non-residential development fees.
(1) 
Imposed fees.
(i) 
Within all zoning districts, non-residential developers, except for developers of the types of development specifically exempted, shall pay a fee equal to 2.5% of the equalized assessed value of the land and improvements for all new non-residential construction on an unimproved lot or lots.
(ii) 
Non-residential developers, except for developers of the types of development specifically exempted, shall also pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures to be used for non-residential purposes.
(iii) 
Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 2.5% shall be calculated on the difference between the equalized assessed value of the pre-existing land and improvement and the equalized assessed value of the newly improved structure, i.e., land and improvement, at the time final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the non-residential development fee shall be zero.
(2) 
Eligible exactions, ineligible exactions and exemptions for non-residential development.
(i) 
The non-residential portion of a mixed-use inclusionary or market-rate development shall be subject to the 2.5% development fee, unless otherwise exempted below.
(ii) 
The 2.5% fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs.
(iii) 
Non-residential developments shall be exempt from the payment of non-residential 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 Non-Residential Development Certification/Exemption" form. Any exemption claimed by a developer shall be substantiated by that developer.
(iv) 
A developer of a non-residential development exempted from the non-residential development fee pursuant to P.L. 2008, c. 46 shall be subject to it at such time the basis for exemption no longer applies, and shall make the payment of the non-residential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy of the non-residential development, whichever is later.
(v) 
If a property which was exempted from the collection of a non-residential 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 non-residential development fees under these circumstances may be enforceable by the Township as a lien against the real property of the owner.