A.

Residential development. Except as otherwise provided below, any residential development in any zoning district in the Borough proposing more than four (4) lots or more units shall set aside twenty-five (25) percent (rounded to the next higher number if .5 percent or greater) of said units for affordable housing as said term is defined under the FHA and COAH's rules.

B.

Nonresidential development. All nonresidential development applications submitted to the planning board or board of adjustment shall be required to produce one (1) nonage-restricted affordable home meeting COAH's eligibility criteria for every twenty-five (25) new jobs or employment opportunities created in the borough as a result of the proposed nonresidential development project, provided that a minimum of thirteen (13) jobs are created. 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".

C.

The applicant may choose to satisfy its affordable housing production obligation(s) through the mechanisms permitted in COAH's rules, including, with Stratford Borough's advanced written permission:

(a)

On-site housing production in connection with residential projects;

(b)

The purchase of an existing market-rate home at another location in the community and its conversion to an affordable price-restricted home in accordance with COAH's criteria, regulations and policies;

(c)

The funding of a regional contribution agreement ("RCA"), subject to COAH rules; and/or

(d)

Participation in gut rehabilitation and/or buy-down/write-down, buy-down/rent-down programs.

Evidence of compliance shall be produced to the combined planning and zoning 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.

D.

Low and moderate income split and compliance with COAH's rules. The affordable unit(s) to be produced pursuant to subsections A., B. and C. (above), shall be available to a low income individual or household should only one (1) 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 borough-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.

E.

Exemption. All growth share affordable units produced by virtue of the ordinance from which this chapter derives, 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 borough's court approved development fee ordinance except for exempt residential inclusionary developments.

(Ord. No. 2005:21, § 2, 10-11-2005)

A.

Short title. This shall be know and may be cited as the development fee ordinance of the Borough of Stratford as amended.

B.

Purpose. In Holmdel Builder's Ass'n 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 Council on Affordable Housing's (COAH) developing rules. The purpose of this section is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's Rules. Fees collected pursuant to this section shall be used for the sole purpose of providing low and moderate income housing. This section shall be interpreted within the framework of COAH's Rules on Development Fees. The section has been amended in accordance with the provisions of P.L. 2008,c.46.

C.

Residential development fees.

1.

In accordance with N.J.A.C. 5:94-6.6 (a) and (b) of COAH's "Substantive Rules" and P.L. 2008, c.46, all new development of residential dwelling units within the Borough of Stratford, not exempt from the collection of development fees in accordance with the provisions of this section, shall pay to Stratford Borough one (1) percent of either the equalized assessed value of each housing unit, the coverage amount of the home owner warranty document of a for-sale unit, or the appraised value on the document utilized for construction financing for a rental unit, provided no increased density is permitted. No certificate of occupancy shall be issued until this fee is paid.

2.

In the event that an increase in residential density is permitted pursuant to N.J.S.A. 40:55D-70d (5) (known as a "d" variance), the fee shall increase to six (6) percent of either the equalized assessed value for each additional unit that is realized, the coverage amount on the home owner warranty document for each additional for-sale unit, or the appraised value on the document utilized for construction financing for each additional rental unit. However, if the zoning on a site has changed during the two-year period preceding the filing of such a 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 variance application.

D.

Nonresidential development fees.

1.

In accordance with N.J.A.C. 5:94-6.7 (a) and (b) of COAH's "Substantive Rules", all new development of nonresidential buildings and structures, not exempt from the collection of development fees in accordance with the provisions of this section, for which a certificate of occupancy is issued on or after July 18, 2008, shall pay a fee to the Borough of Stratford of two and one-half (2.5) percent of either the equalized assessed value for nonresidential development or the appraised value on the document utilized for construction financing. No certificate of occupancy shall be issued until this fee is paid.

2.

In the event that an increase in floor area is permitted pursuant to N.J.S.A. 40:55D-70d(4) (known as a "d" variance), the fee shall increase to six (6.0) percent) on the additional floor area 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 floor area for the purposes of calculating the bonus development fee shall be the highest floor area permitted by right during the two-year preceding the filing of the variance application.

3.

The construction official shall complete Form N-RDF and forward it to the appropriate state officials, as indicated on the form.

E.

Eligible exaction, ineligible exaction and exemptions.

1.

Except as provided for in N.J.A.C. 5:93-8.10, inclusionary developments shall be exempt from development fees.

2.

Developers that expand existing non-residential improvements and structures shall pay a development fee. The development fee shall be calculated based on the increase in the equalized assessed value of the improvement or structure.

3.

Developers that have received preliminary or final approval prior to the effective date of the ordinance from whichshall be exempt from paying a development fee unless the developers seeks a substantial change in the approval.

4.

Religious organizations that engage in construction activities for religious purposes shall be exempt from paying development fees.

F.

Collection of fees.

1.

Developers shall pay fifty (50) percent of the calculated development fee to the Borough of Stratford at the issuance of building permits. The development fee shall be estimated by the tax assessor prior to the issuance of building permits.

2.

Developers shall pay the remaining fee to the Borough of Stratford 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 the issuance of building permit.

3.

Residential development fees that are challenged shall be placed in an interest bearing escrow account by the municipality. 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.

4.

Nonresidential development fees shall be forwarded to the New Jersey Department of Revenue until such time as a Borough of Stratford receives substantive certification from the New Jersey Council on Affordable Housing. Once said substantive certification is obtained, the nonresidential development fees may be deposited directly into the borough's housing trust fund.

G.

Housing trust fund.

1.

There is hereby created an interest bearing trust fund bank account with [approved bank] for the purpose of receiving development fees from residential and nonresidential developers. All development fees paid by developers pursuant to this section 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 or the Superior Court, as the case may be.

2.

If COAH or the Superior Court (as the case may be) determines that the Borough of Stratford is not in conformance with COAH's Rules on development fees, COAH or the court are authorized to direct the manner in which all development fees collected pursuant to this section shall be expended. Such authorization is pursuant to: this section, COAH's rules on development fees and the written authorization from the governing body to the aforesaid bank.

H.

Use of funds.

1.

Money deposited in a housing trust fund may be used for an activity approved by COAH or the Superior Court (as the case may be) for addressing Stratford Borough'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 assistance designed to render units more affordable to low and moderate income households and administrative costs necessary to implement Stratford Borough's housing element. The expenditure of all money shall conform to a spending plan approved by COAH and/or the Superior Court.

2.

At lease thirty (30) percent of the revenues collected shall be devoted to render units more affordable. Examples of such activities include, but are not limited to: down payment assistance, low interest loans and rental assistance.

3.

No more than twenty (20) percent of the revenues 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.

4.

Development fee revenues shall not be expanded to reimburse the borough for housing activities that preceded substantive certification by COAH or the issuance of a final order of repose by the Superior Court. Development fees may be used to reimburse the borough for the outlay of funds or bonding for current housing activities prior to the collection of development fees.

I.

Expiration of ordinance. This section permitting the collection of development fees shall expire as a result of any or the following:

1.

An action of the court with jurisdiction or COAH's dismissal or denial of a petition for substantive certification.

2.

An action by the court with jurisdiction or COAH's revocation of either substantive certification or its certification of this section.

3.

The expiration of the time defined by a judgment of repose or substantive certification unless the borough has filed an adopted housing element with COAH or the court; petitioned for substantive certification and/or entry of a final judgment of compliance; and received COAH's and/or the court's approval of its development fee ordinance.

J.

Definitions. The following definitions apply to these regulations:

"COAH" means the New Jersey Council on Affordable Housing.

"Development fees" means money paid by an individual. person, partnership, association, company or corporation for the improvement of property as permitted in COAH's rules.

"Equalized assessed value" means the value of a property determined by the municipal tax assessor through a process designed to ensure that all property in the municipality is assessed at the same assessment ratio or ratios required by law. Estimates at the time of issuance of a building permit may be obtained by the tax assessor utilizing estimates for construction cost. Final equalized assessed value will be determined at project completion by the municipal tax assessor.

"Housing trust fund" means the interest bearing account in which all development fees will be deposited pursuant to N.J.A.C. 5:93-8.15.

"Judgment of repose" means a judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.

"Substantive certification" means a determination by COAH approving a municipality's housing element and fair share plan in accordance with the provisions of the New Jersey Fair Housing Act of 1985 and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six (6) years or ten (10) years in accordance with the terms and conditions contained therein depending upon the housing cycle in question.

(Ord. No. 2005:20, §§ 1—11, 10-11-2005; Ord. No. 2008:17, §§ 1—11, 12-9-2008; Ord. No. 2009:12, §§ 1—10, 5-12-2009; Ord. No. 2010:10, § 1, 9-14-2010)

A.

Purpose. The purpose of this article is to create the administrative mechanisms needed for the execution of the Borough of Stratford's responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985.

B.

Definitions. As used in this article, the following terms shall have the meanings indicated:

Municipal housing liaison. The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for the Borough of Stratford.

Administrative agent. The entity responsible for administering the affordability controls of some or all units in the affordable housing program for the Borough of Stratford to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low and moderate income households.

C.

Establishment of municipal housing liaison position and compensation; powers and duties.

1.

Establishment of position of municipal housing liaison. There is hereby established the position of municipal housing liaison for the Borough of Stratford.

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 Borough of Stratford, including the following responsibilities which may not be contracted out, exclusive of item (6) which may be contracted out:

(1)

Serving as the Borough of Stratford's primary point of contact for all inquiries from the state, affordable housing providers, administrative agents and interested households;

(2)

Monitoring the status of all restricted units in the Borough of Stratford's Fair Share Plan;

(3)

Compiling, verifying and submitting annual reports as required by COAH;

(4)

Coordinating meetings with affordable housing providers and administrative agents, as applicable;

(5)

Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by COAH;

(6)

If applicable, serving as the administrative agent for some or all of the restricted units in the Borough of Stratford as described.

4.

Subject to approval by COAH, the Borough of Stratford 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 Borough of Stratford, except for those responsibilities which may not be contracted out pursuant to subsection C.3., above. If the Borough of Stratford 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.

5.

Compensation. Compensation shall be fixed by the governing body at the time of the appointment of the municipal housing liaison.

(Ord. No. 2007:21, §§ 1—3, 10-9-2007)