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THE TOWNSHIP OF EWING

COUNTY OF MERCER, NEW JERSEY

ORDINANCE NO. #06-37

1st Reading _________________ Date to Mayor _________________

2nd Reading &


Public Hearing _________________ Date Returned _________________

Date Adopted: Date Resubmitted to Council ___________

_______________________________ Approved as to Form of Legality

Effective Date:

_______________________________

AN ORDINANCE AMENDING THE REVISED GENERAL ORDINANCES OF THE TOWNSHIP OF EWING,


COUNTY OF MERCER, STATE OF NEW JERSEY, AMENDING CHAPTER 15, LAND DEVELOPMENT, TO
INCREASE THE TOWNSHIP’S AFFORDABLE HOUSING DEVELOPMENT FEES PURSUANT TO COAH’S
THIRD ROUND RULES

First Reading

MEMBER AYE NAY ABS NV RES SEC

Murphy

Apai

Steinmann

Wollert

Summiel

Second Reading

MEMBER AYE NAY ABS NV RES SEC

Murphy

Apai

Steinmann

Wollert

Summiel

By ____________________________Date _____________Accepted ______Rejected ______


Mayor

Reconsidered
By Council _________________________________Override Vote YEA ______NAY _____

__________________________________ _________________________________
President of the Council Municipal Clerk

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TOWNSHIP OF EWING

ORDINANCE NO. 2006-37

AN ORDINANCE AMENDING THE REVISED GENERAL ORDINANCES OF THE


TOWNSHIP OF EWING, COUNTY OF MERCER, STATE OF NEW JERSEY, AMENDING
CHAPTER 15, LAND DEVELOPMENT, TO INCREASE THE TOWNSHIP’S AFFORDABLE
HOUSING DEVELOPMENT FEES PURSUANT TO COAH’S THIRD ROUND RULES

NOW, THEREFORE, BE IT ORDAINED by the Township Council of the Township


of Ewing that CHAPTER 15, LAND DEVELOPMENT, of the Code of the Township of
Ewing, is hereby amended and supplemented as follows:

Section 1.

Chapter 15, Land Development, Section §15-102 Affordable Housing Development Fees, is
hereby amended to increase the affordable housing development fees pursuant to COAH’s Third
Round Growth Share Regulations, as follows:

§15-102.2 DEVELOPMENT FEE SCHEDULE.

(a) Residential development fees. In ALL Township residential zones (R1, R2, R3, RM, R-
TH) the residential development fee shall be a maximum of one-half of one percent
(0.5%)

(1) Any residential development consisting of eight (8) or fewer market-rate units for
which minor or major subdivision or site plan approval is required shall pay a
development fee of one percent (1%) of the equalized assessed value for
residential development, provided no increase in density is permitted.

(1)(2) Residential Development Fees. If a “d” variance is granted pursuant to N.J.S.A.


40:55D-70d(5) 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 will be
required to pay then the additional residential units realized (above what is
permitted by right under the existing zoning) will incur a bonus development fee
of six percent (6%) of the equalized assessed value for residential development,
rather than the development fee of one half of one percent (0.5%) one percent
(1%). However, if the zoning on a site has changed during the two (2) year period
preceding the filing of the “d” 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 (2) years preceding the filing of the “d” variance
application.

Example: If an approval allows for four (4) units to be constructed on a site that
was zoned for two units, the fees could equal one percent (1%) of the equalized
assessed value on the first two units; and six percent (6%) of the equalized
assessed value for the two additional units. 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.

(2) Deleted.

(3) Deleted.

(4) Deleted.

(b) Non-residential development fees. In ALL Township zones (IP1, IP2, IP3, OP1, OP2,
OP3, PRO) nonresidential development fees shall be a maximum of one (1%) percent

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(1) All non-residential development shall pay a development fee of two percent (2%)
of the equalized assessed value of the non-residential in the event that the
developer does not secure an increased floor area ratio (FAR) pursuant to N.J.S.A.
40:55D-70d(4) (known as a “d” variance).

(1)(2) Nonresidential development fees. If a “d” variance is granted pursuant to


pursuant to N.J.S.A. 40:55D-70d(4), 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 permitted by right under the existing zoning) will incur a bonus
development fee of six percent (6%) of the equalized assessed value for
nonresidential development, rather than the development fee of one percent. two
percent (2%). However, if the zoning on a site has changed during the two year
period preceding the filing of the “d” 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 years year period preceding the filing
of the “d” variance application.

(2) Deleted.

(c) Eligible exactions, ineligible exactions and exemptions.

(1) Except as provided in paragraph (a)(3) above, inclusionary developments in tracts


shall be exempt from development fees. Affordable housing developments shall
be exempt from development fees. All other forms of new construction shall be
subject to development fees.

(2) Development fees may only be collected for any residential structure which
requires the installation of a new foundation (excluding foundations required for
an addition to or renovation of an existing residential structure or a foundation
required for an accessory structure to an existing residential structure).
Development fees shall be imposed and collected when an existing structure is
expanded or undergoes a change to a more intense use. The development fee
shall be calculated on the increase in the equalized assessed value of the improved
structure.

(3) Deleted.

(4)(3) Developments that have received preliminary or final approval for which the
statutory protection period pursuant to N.J.S.A. 40:55D-49 and/or N.J.S.A.
40:55D-52 has not expired prior to the imposition of a development fee are
exempt from the payment of a development fee hereunder unless the developer
seeks a major change in the approval. Developments that have received
preliminary or final approval prior to the imposition of a municipal development
fee shall be exempt from development fees unless the developer seeks a
substantial change in the approval.

(5)(4) Text of section 5 remains the same; only section number revised.

§15-102.3 COLLECTION OF DEVELOPMENT FEES.

(a) – (e) No change.

(f) Contested fees. Imposed and collected development fees that are challenged shall
be placed in an interest bearing escrow account by the Township of Ewing. 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.

§15-102.4 AFFORDABLE HOUSING TRUST FUND. The Chief Financial Officer is


hereby directed to create and maintain an interest bearing housing trust fund in a
financial institution designated by the Township for the purpose of receiving
development fees from residential and nonresidential developers. All
development fees paid by developers pursuant to this ordinance shall be deposited

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in this fund. No money shall be expended from the housing trust fund unless the
expenditure conforms to a spending plan approved by COAH.

(a) There is hereby created a separate, interest-bearing housing trust fund in Yardville
National Bank for the purpose of depositing development fees collected from
residential and non-residential developers and proceeds from the sale of units with
extinguished controls. All development fees paid by developers pursuant to this
ordinance shall be deposited into this fund.

(b) Within seven (7) days from the opening of the trust fund account, the Township
of Ewing shall provide COAH with written authorization, in the form of a three-
party escrow agreement between the municipality, Yardville National Bank, and
COAH to permit COAH to direct the disbursement of the funds as provided for in
N.J.A.C. 5:94-6.16(b).

(c) No funds shall be expended form the affordable housing trust fund unless the
expenditure conforms to a spending plan approved by COAH. All interest
accrued in the housing trust fund shall only be used on eligible affordable housing
activities approved by COAH.

§15-102.5 USE OF MONEY FUNDS.

(a) The Township shall use revenues collected from development fees for any
activity approved by the Council for addressing the Township’s fair share
obligation. Such activities include, but are not limited to, rehabilitation, new
construction, regional contribution agreements, purchase of land for low and
moderate incoming housing, extension and/or improvements of roads and
infrastructure to low and moderate income housing sites, assistance designed to
render units to be affordable to low and moderate income households and
administration of the implementation of the housing element. Funds deposited in
the housing trust fund may be used for any activity approved by COAH to address
the municipal fair share. Such activities include, but are not limited to:
rehabilitation, new construction, Regional Contribution Agreements (“RCAs”)
subject to the provisions of N.J.A.C. 5:94-4.4(d), Elder Cottage Housing
Opportunities (“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 affordable housing
sites, financial assistance designed to increase affordability, or administration
necessary for implementation of the Housing Element and Fair Share Plan. The
expenditure of all funds shall conform to a spending plan approved by COAH.

(b) Funds shall not be expended to reimburse housing activities that preceded a first
or second round sub certification. the Township of Ewing for past housing
activities.

(c) At least thirty (30%) percent of the revenues collected from development fees
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. COAH may waive this requirement in whole, or in part, if the
municipality demonstrates the ability to address the affordability assistance
requirement from another source. Expenditures for rehabilitation, municipal new
construction and RCAs are exempt from this requirement. After subtracting
development fees collected to finance an RCA, a rehabilitation program or a new
construction that are necessary to address the Township of Ewing’s affordable
housing obligation, at least thirty percent (30%) of the balance remaining shall be
used to provide affordability assistance to low- and moderate-income households
in affordable units included in the municipal Fair Share Plan. One-third of the
affordability assistance portion of development fees collected shall be used to
provide affordability assistance to those households earning thirty percent (30%)
or less of median income by region.

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(i) Affordability assistance programs may include down payment assistance,
security deposit assistance, low interest loans, and rental assistance.

(ii) Affordability assistance to households earning thirty percent (30%) 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 thirty percent (30%) or less of median
income. The use of development fees in this manner shall entitle the
Township of Ewing to bonus credits pursuant to N.J.A.C. 5:94-4.22.

(iii) Payments in lieu of constructing affordable units on site and funds from
the sale of units with extinguished controls shall be exempt from the
affordability assistance requirement.

(d) No more than 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 directly
associated with plan development or plan implementation. No more than twenty
percent (20%) of the revenues collected from development fees each year,
exclusive of the fees used to fund an RCA, 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, a
Housing Element and Fair Share Plan, and/or an affirmative marketing program.
In the case of a rehabilitation program, no more than twenty percent (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 COAH’s monitoring requirements. Development fee
administrative costs are calculated and may be expended at the end of each year
or upon receipt of the fees.

(e) The Township of Ewing 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. 5:94-7.

§15-102.6 EXPIRATION OF ORDINANCE. Deleted.

§15-102.6 MONITORING. (New section)

(a) The Township of Ewing shall complete and return to COAH all monitoring forms
included in the annual monitoring report related to the collection of development
fees from residential and non-residential developers, payments in lieu of
constructing affordable units on site, and funds from the sale of units with
extinguished controls, and the expenditure of revenues and implementation of the
plan certified by COAH. All monitoring reports shall be completed on forms
designed by COAH.

§15-102.7 ONGOING COLLECTION OF DEVELOPMENT FEES. The Township’s


ability to collect development fees shall expire with substantive certification.

(a) The ability for the Township of Ewing to impose, collect and expend
development fees shall expire with its substantive certification on February 7,
2007, unless the Township of Ewing has filed an adopted Housing Element and
Fair Share Plan with COAH, has petitioned for substantive certification and has
received COAH’s approval of its development fee ordinance. If the Township of
Ewing fails to renew its ability to impose and collect development fees prior to
February 7, 2007, it may resume the imposition and collection of development
fees only by complying with the requirements of N.J.A.C. 5:94-6. The Township
of Ewing shall not impose a development fee on a development that receives
preliminary or final approval after the expiration of its substantive certification on
February 7, 2007, nor will the Township of Ewing retroactively impose a
development fee on such development. The Township of Ewing will not expend
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development fees after the expiration of its substantive certification on February
7, 2007.

Section 2. This Ordinance shall take effect immediately upon passage and publication
according to law.

STATEMENT

This Ordinance amends the Revised General Municipal Ordinances of the Township of Ewing,
Chapter 15, Land Development, to increase the affordable housing development fees pursuant to
COAH’s Third Round Growth Share Regulations.

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