Within all residential zone districts, Marmora Town Center District (MTCD), Waterfront Town Center (WTC), Town Center (TC) and Town Center Core (TCC) Zone Districts, and other zone districts which permit residential uses, 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 of the land and improvements for all new residential construction on an unimproved lot or lots, provided no increased density is permitted.

Residential developers, except for the developers of the types of development specifically exempted below, shall also pay a fee equal to 1.5% of the equalized value resulting from any new accessory structure or alteration, reconstruction, renovation, repair, and/or addition to an existing structure used for residential purposes that increases the building footprint or volume.

Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 1.5% shall be calculated on the difference between the equalized assessed value of 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 residential development fee shall be zero.

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 may be required to pay a development fee of 6% of the equalized assessed value for each additional unit that may be 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 could equal 1.5% of the equalized assessed value on the first two units; and the specified higher percentage up to 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.

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 a payment in lieu of on-site construction of affordable units shall be exempt from development fees.

Developments that have received preliminary or final site plan approval prior to the adoption of the development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval or the approval required compliance with future municipal COAH ordinances and regulations. Where a site plan approval does not apply, a zoning and/or construction 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 construction permit is issued.

The fee shall not apply to an increase in equalized assessed value resulting from alterations, reconstruction, renovations or repairs that do not result in an increase in building footprint or volume.

Any entity or organization specified in N.J.S.A. 40A:12-21 or structure that is exempt from the payment of ad valorem real estate taxes.