Sparta Township City Zoning Code
§ 18-8.4
Residential Development Fees for Low and Moderate Income Housing.
[Ord. No. 12-9-97 §§ I — X; Ord. No. 958 §§ 1, 2; Ord. No. 05-05 § 1; Ord. No. 08-03 § 1; Ord. No. 08-08 § 1]
a.
Purpose. 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. 52:270-301 et seq., and the State Constitution subject to Council on Affordable Housing developing rules. The purpose of this subsection is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's rules. Fees collected pursuant to this subsection shall be used for the sole purpose of providing low and moderate income housing. This subsection shall be interpreted within the framework of COAH's rules on development fees.
b.
Residential Development Fees. Residential development in the Township of Sparta that includes less than four residential lots and/or dwelling units shall pay a development fee of 1 1/2% of the equalized assessed value of any eligible residential activity. The term developer shall mean the legal or beneficial owner or owners of a lot or any land proposed to be included in a proposed development including the holder of an option to contract or purchase, or other person having an enforceable proprietary interest in such land. Teardowns and reconstruction of previously existing dwellings are subject to the requirements of this section except existing housing units reconstructed after being destroyed by a catastrophic event such as fire, flood or other natural disaster.
c.
Eligible Exaction, Ineligible Exaction and Exemptions.
1.
Inclusionary developments providing the requirements set-aside of low and moderate income units shall be exempt from paying development fees.
2.
Expansion of existing residential structures shall be exempt.
3.
Developers that have received preliminary or final approval prior to the effective date of this subsection[1] shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval, or the plan is abandoned, approval lapses, or the period of protection pursuant to N.J.S.A. 40:55D-52 expires without extension.
[1]
Editor's Note: This subsection was adopted by ordinance adopted 12-9-97.
4.
Developers of any church, school, governmental facility, or public utility shall be exempt from paying a development fee.
5.
Developers of nonresidential development are exempt as to not limit economic growth in appropriately zoned areas.
d.
Collection of Fees.
1.
Developers shall pay 50% of the calculated development fee to the Township of Sparta at the issuance of building permits. The developer shall submit to the Housing Officer an estimate of the assessed value of the new construction and lot to be verified if required by the Tax Assessor.
2.
Developers shall pay the remaining fee to the Township of Sparta at the issuance of certificates of occupancy. At the issuance of certificates of occupancy, the Tax Assessor shall calculate the equalized assessed value and the appropriate development fee. The developer shall be responsible for paying the difference between the fee calculated at certificate of occupancy and the amount paid at building permit.
e.
Housing Trust Fund.
1.
There is hereby created an interest bearing Housing Trust Fund in the name of Sparta Township for the purpose of receiving development fees from residential developers. All development fees paid by developers pursuant to this subsection 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.
2.
If COAH determines that the Township of Sparta 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 subsection shall be expended. Such authorization is pursuant to this subsection; COAH's rules on development fees; and the written authorization from the Governing Body.
f.
Use of Funds.
1.
Money deposited in the Housing Trust Fund may be used for any activity approved by COAH for addressing the Township of Sparta'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 sites; assistance designed to render units to be more affordable to low and moderate income people, and administrative costs necessary to implement the Township's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.
2.
No more than 20% of the revenues shall be expended on administrative costs necessary to develop, revise, or implement the housing plan element of the Township Master Plan. Examples of eligible administrative activities include personnel; consultant services; space costs; consumable supplies; and rental or purchase of equipment.
3.
Development fees shall not be expended to reimburse the Township of Sparta for housing activities that preceded substantive certification.
g.
Monitoring. The Township shall complete and return to COAH all monitoring forms related to the collection of development fees, expenditures of revenues and implementation of the spending plan certified by COAH. Quarterly financial reports and annual program implementation and auditing reports shall be completed by the Township on forms designed by COAH.
h.
Penalties.
1.
In the event that any of the conditions set forth below occur, COAH shall be authorized, on behalf of the Township, to direct the manner in which all development fees collected pursuant to this subsection shall be expended. Should any such condition occur, such revenues shall immediately become available for expenditure at the direction of COAH upon the Township Clerk's receipt of written notification from COAH that such a condition has occurred. In furtherance of the foregoing, the Township shall, in establishing a bank account pursuant to Subsection e of this subsection, ensure that the Township has provided whatever express written authorization which may be required by the bank to permit COAH to direct disbursement of such revenues from the account following the delivery to the bank of the aforementioned written notification provided by COAH to the Township Clerk.
2.
Occurrence of the following may result in COAH taking an action pursuant to Subsection h1 above.
(a)
Failure to submit a spending plan within the time limits imposed by COAH;
(b)
Failure to meet deadlines for information required by COAH in its review of this subsection, the Township's housing element or spending plan;
(c)
Failure to address COAH's conditions for approval of a plan to spend development fees within the deadlines imposed by COAH;
(d)
Failure to address COAH's condition for substantive certification within the deadlines imposed by COAH;
(e)
Failure to submit accurate monitoring reports within the time limits imposed by COAH;
(f)
Failure to implement the spending plan for development fees within the time limits imposed by COAH, or within reasonable extensions granted by COAH;
(g)
Expenditure of development fees on activities not permitted by COAH;
(h)
Revocation of the Township's substantive certification;
(i)
Other good cause demonstrating that the revenues are not being used for the intended purpose.
i.
Expiration of Subsection. This subsection shall expire if:
1.
COAH dismisses or denies Sparta's petition for substantive certification.
2.
COAH revokes substantive certification or its certificate of this subsection.
3.
Substantive certification expires prior to Sparta's filing an adopted housing element with COAH, petitioning for substantive certification or receiving COAH's approval of this subsection.
j.
Effective Date. This subsection shall take effect after publication and passage according to law.