The URL can be used to link to this page

Home My Public Portal AboutOrd. 08-36 No, 08-% @rohm:ttce of fq? ~or01tg4 ofC!Inderd, ~t W ~ Councilman Presents the following Ordinance Seconded by Councilman ,\MENDING AND SUPPLEMENTING THE CODE OF THE BOROUGH OF CARTERET TO ESTABLISH A DEVELOPMENT FEE FOR THE PROVISION OF AFFORDABLE HOUSING Section 1. Purpose a) This ordinance establishes standards for the collection, maintenance, and expenditure of development fees which shall be used for the sole purpose of providing low- and moderate-income housing. This ordinance shall be interpreted within the frame,vork of applicable law on development fees. 2. Basic requirements a) Borough of Carterct shall not spend development fees until it decides to seek COAH approval for a plan for spending such fees and Borough of Carteret has voluntarily sought any substantive certification from COAH or a judgment of compliance. 3. Definitions aJ, The following tenns, as used in this ordinance, shall have .:the following meanings: i. "Affordable housing development" means a development included in any adopted Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100 percent affordable development. Ii. "COAH" means the New Jersey Council on Affordable Housing, iii. "Development fee" means funds paid by an individual, person, partnership, association, company or corporation for the improvement of property as provided for herein. IV. "Equalized assessed value" means the value of a property determined by the ffilmicipaI 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 utilizing estimates for constmction cost. Final equalized assessed value shall be determined at project completion by the municipal tax assessor. NO, (H~_1:~ PAG'R 2 4. Non-residential Development fees a) Within any zoning district, non-residential developers shall pay a fee of two and one-half (ZY,) percent of the equalized assessed value for non- residential development. b) If an increase in floor area ratio is approved pursuant to N.J.S.A. 40:55D- 70d(4), then the additional floor area realized (above what is pennitted by right under the existing zoning) shall incur a bonus development fee of six (6) percent of the equalized assessed value for non-residential development. 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 pennitted by right during the two-year period preceding the filing ofthe variance application. 5. Eligible exactions, ineligible exactions and exemptions a) Affordable housing developments shall be exempt from development fees, All other forms of new constmction shall be subject to development fees, unless exempted below. b) Developments that have received preliminary or fmal 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 c) Development fees shall be imposed and collected when an existing structure is expanded or undergoes a change to a more intense lise. The development fee shall be calculated on the increase in the equalized assessed value of the improved stmcture. 6, Coll~ction offees a) Fifty (50) 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 building permit and that determined at issuance of certificate of occupancy. 7. Contested rees a) Imposed and collected development fees that are challenged shall be placed in an interest bearing escrow account by the Borough of Carteret. If all or a portion of the contested fees are returned to the developer, the accmed interest on the returned amount shall also be returned. NO, OR-% PAOE 8. Affordable Housing trust fuud a) There is hereby created a separate, interest-bearing housing trust fund for the purpose of depositing development fees collected from non-residential developers, All developmeut fees paid by developers pursuaut to this ordinance shall be deposited into this fund, b) No funds shall be expended from the affordable housing trust fund unless the expenditure conforms to a spending plan approved by COAH, or as may otherwise be permitted by law. All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities, . 9, Use offunds a) Funds deposited in the housing trust fund may be used for any activity approved by COAH to implement an affordable housing program adopted by the Borough. Such activities include, but are not limited to: rehabilitation, ne\'( constmction, ECHO housing, purchase of land for affordable housing, improvement of land to be used for affordable housing, purchase of housing, extensions or improvements of roads and infrastructure to '}ffordable housing sites, financial assistance designed to increase affordability, or administration necessary for implementation of such affordable housing program, The expenditure of all funds shall confonn to an adopted and approved spending plan. 11) Funds shall not be expended to reimburse the Borough of Carteret for past housing activities. c) After subtracting development fees collected to finance a rehabilitation program or a new construction project that are included in the Borough of Carteret's affordable housing program, at least 30 percent of the balance remaining shall be used to provide affordability assistance to low- and moderate-income households in affordable units included in the municipal plan, One-third ofthe affordability assistance portion of development fees collected shall be used to provide affordability assistance to those \ households earning 30 percent or less of median income by region. i. Affordability assistance programs may include down payment assistance, security deposit assistance, low interest loans, and rental assistance. ii. Affordability assistance to households earning 30 percent or less of median income may include buying down the cost of low or moderate income units in the third round municipal Fair Share Plan to make them affordable to households earning 30 percent or less of median income. iii. Payments in lieu of constructing affordable units on site and funds from the sale of units with extinguished control$ shall be exempt from the affordabiIity assistance requirement. d) The Borough of Carteret may contract with a private or public entity to administer any part of its affordable housing plan, including the requirement for affordability assistance. 3 NO, 08-16 PAGE 4 e) No more than 20 percent of the revenues collected from development fees each year shall 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, any Housing Element and Fair Share Plan to be prepared by the Borough, and/or an affilfllative marketing program. In the case of a rehabilitation program, no more than 20 percent 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 established monitoring requirements. Development fee administrative costs are calculated and may be expended at the end of each year or upon receipt of the fees. 10. l\'IOllitorillg a) The Borough of Carteret shall establish a monitoring program and issue monitoring fonus'related to the collection of development fees from non- residential developers and the expenditure of revenues and implementation ofthe Borough of Carteret's affordable housing plan as may be required, II. Ongoing collection offees Section 2. Section 3. Section 4. a) Concurrent with the authority to impose and collect the within development fees, the Borough of Carteret shall only do so for the period so authorized in its adopted housing plan and spending plan. All ordinances and/or provisions thereof inconsistent with the provision 0 this Alticle shall be and are hereby repealed as to the extent of any such inconsistencies, except however should another municipal ordinance contain provisions which are more restrictive then those set forth in this Article, the more restrictive provision shall apply. If any section, subsection, part, clause or phrase of this Article'shall be de.clared invalid by judgment of any Court of competent jurisdiction, the sectiQll, subsection, part, clause or phrase shall be deemed to be severable from the remainder of this Article. This Article shall take effect upon passage and publication according to applicable law, DO NOT USE SPACE BELOW THIS LINE COUNCILMAN YES NO NV A.B. BELLINO COLON DIA.Z RECORD OF COUNCIL VOTE YES NO NY A.B. COUNCILMAN KRUM NAPLES SITARZ x x X x . Indicale VOle AB - Absent NV - NOI Voting XOR - Indicates Vole to Overrule Veto Adopted on first reading of the Council of the Borough of"Carteret, N.J" on September 9. 2008 Adopted on second reading after heari gon Oc.tohPr. ?i, ?MB APPROVED Y ON MAYOR to, ,n. 08 ~ b::> " C':? ' ,'tF;'i:lFea" '. c.-" ~~#' .., ! MUNICIPAL CLERK (~~~_._ AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Home News Tribune, a newspaper which is printed in Freehold, New Jersey and published in Neptune, in said County and State and of general circulation in said county. One ill time(s), once in each issue as follows: October 10.2008 ~ 9r~" . Kathleen M. Barney, Municipal Clerk c':;;{/YJ4v (7 ~~ Notary Public of New Jersey LINDA A RIVERA NOTARY PUBLIC Of NEW JERSEY MY COMMISSION eXPIRES MAY 2, 2011 Sworn and subscribed before me this, IWv, day of (')(':t;;re tV'" I a oof? <' D- v' ijO OD" AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Home News Tribune, a newspaper which is printed in Freehold, New Jersey and published in Neptune, in said County and State and of general circulation in said county. One ill time(s), once in each issue as follows: October 29. 2008 ---, c:;t~ O. ~~ Notary Public of New Jersey LINDA A RIVERA NOTARY PUBLIC OF NEW JERSEY MY COMMISSION EXPIRES MAY 2,2011 ~~ . A-/'L Kathleen M. Barne , Municipal Clerk Sworn and subscribed before me this~o.J.t, day of II) ;I~ ,;;l CAD f~ o .. () b <) Y