Source: https://ecode360.com/34587072
Timestamp: 2020-01-22 10:25:00
Document Index: 702204332

Matched Legal Cases: ['§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 65', '§ 8', '§ 8', '§ 37', '§ 20']

City of Hoboken, NJ Development Fees
§ 65B-1 Purpose.
§ 65B-2 Basic requirements.
§ 65B-3 Definitions.
§ 65B-4 Residential development fees.
§ 65B-5 Nonresidential development fees.
§ 65B-6 Collection procedures.
§ 65B-7 Affordable housing trust fund.
§ 65B-8 Use of funds.
§ 65B-9 Monitoring.
§ 65B-10 Ongoing collection of fees.
Chapter 65B Development Fees
[HISTORY: Adopted by the City Council of the City of Hoboken 8-7-2019 by Ord. No. B-174. Amendments noted where applicable.]
Affordable housing — See Ch. 65A.
Pursuant to P.L. 2008, c. 46, § 8 (N.J.S.A. 52:27D-329.2) and the Statewide Nonresidential Development Fee Act (N.J.S.A. 40:55D-8.1 through 40:55D-8.7), COAH is authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that are under the jurisdiction of a court of competent jurisdiction and have a court-approved spending plan may retain fees collected from nonresidential development.
Pursuant to the Executive Reorganization Act of 1969, P.L. 1969, c. 203 (N.J.S.A. 52:14C-1 et seq.), the governor abolished COAH and transferred all functions, powers, and duties to the Commissioner of the Department of Community Affairs, effective August 29, 2011. Any and all references to COAH shall mean the Department of Community Affairs (the Department) or the Superior Court.
This chapter establishes standards for the collection, maintenance, and expenditure of development fees pursuant to the Department's regulations and in accordance P.L. 2008, c. 46, §§ 8 and 32 through 38. Fees collected pursuant to this chapter shall be used for the sole purpose of providing low- and moderate- income housing. This chapter shall be interpreted within the framework of the Department's rules on development fees, codified at N.J.A.C. 5:97-8.[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter 97, Substantive Rules of the New Jersey Council on Affordable Housing for the Period Beginning June 2, 2008, expired on June 2, 2015. See: 43 N.J.R. 1203(a).
This chapter shall not be effective until approved by the Superior Court pursuant to N.J.A.C. 5:96-5.1.[1]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter 96, Procedural Rules of the New Jersey Council on Affordable Housing for the Period Beginning on June 2, 2008, expired on June 2, 2015. See: 43 N.J.R. 1203(a).
The City of Hoboken shall not spend development fees until the Superior Court has approved a plan for spending such fees in conformance with N.J.A.C. 5:97- 8.10 and N.J.A.C. 5:96-5.3.[2]
Editor's Note: In accordance with N.J.S.A. 52:14B-5.1b, Chapter 96, Procedural Rules of the New Jersey Council on Affordable Housing for the Period Beginning on June 2, 2008, and Chapter 97, Substantive Rules of the New Jersey Council on Affordable Housing for the Period Beginning June 2, 2008, expired on June 2, 2015. See: 43 N.J.R. 1203(a).
The New Jersey Council on Affordable Housing established under the Fair Housing Act which previously had primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the state. Pursuant to the Executive Reorganization Act of 1969, P.L. 1969, c. 203 (N.J.S.A. 52:14C-1 et seq.), the governor abolished the Council and transferred all functions, powers, and duties to the Commissioner of the Department of Community Affairs, effective August 29, 2011. As such, any and all references to COAH shall mean the Court.
Money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3.[1]
Within the zones permitting, residential development, 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 no increased density is permitted.
[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 either on site or 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.
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 nonresidential development fee shall be zero.
If a property which was exempted from the collection of a nonresidential 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 nonresidential development fees under these circumstances may be enforceable by City of Hoboken as a lien against the real property of the owner.
Should the City of Hoboken fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in Subsection b of § 37 of P.L. 2008, c. 46 (N.J.S.A. 40:55D-8.6).
Fifty percent of the development fee shall be collected at the time of issuance of the building permit. The remaining portion shall be collected at the issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at the time of issuance of the building permit and that determined at the time of issuance of the certificate of occupancy.
A developer may challenge residential development fees imposed by filing a challenge with the County Board of Taxation. Pending a review and determination by the Board, collected fees shall be placed in an interest-bearing escrow account by the City of Hoboken. Appeals from a determination of the Board may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
A developer may challenge nonresidential development fees imposed by filing a challenge with the Director of the Division of Taxation. Pending a review and determination by the Director, which shall be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest-bearing escrow account by the City of Hoboken. Appeals from a determination of the Director may be made to the Tax Court in accordance with the provisions of the State Tax Uniform Procedure Law, N.J.S.A. 54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party.
Any other funds collected in connection with the City of Hoboken's affordable housing program.
Within seven days from the opening of the trust fund account, the City of Hoboken shall provide the Department with written authorization, in the form of a three-party escrow agreement between the municipality, the bank linked to the Cash Management Fund, and the Department to permit the Department to direct the disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b).[1]
All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by the Superior Court.
The expenditure of all funds shall conform to a spending plan approved by the Superior Court of New Jersey. Funds deposited in the housing trust fund may be used for any activity approved by the Superior Court to address the City of Hoboken's fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to: preservation or purchase of housing for the purpose of maintaining or implementing affordability controls, rehabilitation, new construction of affordable housing units and related costs, accessory apartment, market to affordable or regional housing partnership programs, conversion of existing nonresidential buildings to create new affordable units, green building strategies designed to be cost-saving and in accordance with accepted national or state standards, purchase of land for affordable housing, improvement of land to be used for affordable housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through N.J.A.C. 5:97-8.9[1] and specified in the approved spending plan.
Funds shall not be expended to reimburse the City of Hoboken for past housing activities.
The City of Hoboken may contract with a private or public entity to administer any part of its Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:96-18.[2]
No more than 20% of all revenues collected from development fees may be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to develop or implement a new construction program, a Housing Element and Fair Share Plan, and/or an affirmative marketing program. In the case of a rehabilitation program, no more than 20% of the revenues collected from development fees shall be expended for such administrative expenses. Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units, and compliance with the Department's monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council's regulations and/or action are not eligible uses of the affordable housing trust fund.
The City of Hoboken shall complete and return to the Fair Share Housing Center (FSHC) and the Department all monitoring forms included in monitoring requirements related to the collection of development fees from residential and nonresidential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier-free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with City of Hoboken's housing program, as well as to the expenditure of revenues and implementation of the plan approved by the Superior Court. All monitoring reports shall be completed on forms designed by the Department or any designated agency.
The ability for the City of Hoboken to impose, collect and expend development fees shall expire with its judgment of compliance unless the City of Hoboken has filed an adopted Housing Element and Fair Share Plan with the Court, and has received the Superior Court's approval of its development fee ordinance. If the City of Hoboken fails to renew its ability to impose and collect development fees prior to the expiration of a judgment of compliance, it may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds so forfeited shall be deposited into the New Jersey Affordable Housing Trust Fund established pursuant to § 20 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-320). The City of Hoboken shall not impose a residential development fee on a development that receives preliminary or final site plan approval after the expiration of its substantive certification or judgment of compliance, nor shall the City of Hoboken retroactively impose a development fee on such a development. The City of Hoboken shall not expend development fees after the expiration of its judgment of compliance.