ARTICLE IX Affordable Housing
§ 250-64. Purpose.

The purpose of these special regulations is to satisfy, in part, the terms of a certain settlement agreement between the Township and the Urban League of Greater New Brunswick, et al, which was entered into as the result of mediation before the New Jersey Council on Affordable Housing and its resolution of substantive certification, dated December 11, 1989. The approving board shall grant no deviation from the regulations set forth in this Article IX.

§ 250-65. Mandatory set aside.

A. Each application for development for new housing for resale or rental shall comply with these provisions.

B. Each application for development subject to these provisions shall clearly state the number of low- and moderate-income units, as defined in the aforesaid affordable housing ordinance, and each resolution of approval adopted by the approving board shall clearly state the number of low- and moderate-income units that are approved as part of the development.

C. Each approved development subject to these provisions shall contain moderate-income units in a minimum of 5% of the total number of units that may be developed, assuming full development at the maximum gross density allowed by right in the zone, and low-income units in a minimum proportion of 5% of the total number of units that may be developed, assuming full development at the maximum gross density allowed by right in the zone.

D. Developers of 99 or fewer units may make a contribution in accordance with the standards of § 250-66A herein, in lieu of constructing the housing in accordance with the procedures established by said agency. Developers of nine or fewer units must make a contribution in accordance with the standards of § 250-66A herein, in lieu of constructing the housing in accordance with the procedures established by said agency.

§ 250-66. Development fees.

[Amended 2-21-1995 by Ord. No. 4-95]

A. Purpose. In Holmdel Builders Association v. Holmdel Township, 121 NJ 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 COAH developing rules. The purpose of this amendment 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 chapter shall be interpreted within the framework of COAH's rules on development fees.

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



COAH - The New Jersey Council on Affordable Housing.



DEVELOPMENT FEES - Money paid by an individual, person, partnership, association, company or corporation for the improvement of property as permitted in COAH rules.



EQUALIZED ASSESSED VALUE - 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 building permit may be obtained by the Tax Assessor utilizing estimates for construction costs. Final equalized assessed value will be determined at project completion by the Municipal Tax Assessor.

JUDGMENT OF REPOSE - A judgment issued by the Superior Court approving a municipality's plan to satisfy its fair share obligation.

SUBSTANTIVE CERTIFICATION - A determination by the Township Council approving a municipality's housing element and fair share plan in accordance with the provisions of the Act and the rules and criteria as set forth herein. A grant of substantive certification shall be valid for a period of six years in accordance with the terms and conditions contained therein.



C. Residential development fees.

(1) Within the Township of Old Bridge, developers shall pay a development fee of 1/2 of 1% of the equalized assessed value of any eligible residential activity pursuant to Subsection E of this section.

(2) Developers of more than 99 lots eligible residential units may pay a fee of $27,500 in lieu of constructing a low-income unit and $12,500 in lieu of constructing a moderate-income housing unit. This option shall not apply to developers of sites that are designated as mandatory inclusionary sites in Old Bridge Fair Share Plan certificate of COAH.

(3) If a "D" variance is granted to permit residential development where no residential development is permitted or to increase the number of dwelling units on a tract, then the additional residential units realized (above what is permitted by right under the existing zoning) will incur a bonus development fee of 6% rather than the development fee of 1/2 of 1%. However, if the zoning on a site has changed during the two-year period, the base for the purposes of calculating the bonus development fee shall be the highest density or number of residential units permitted by right during the two years preceding the filing of the "D" variance application. [Added 3-27-2000 by Ord. No. 07-00]

D. Ineligible exaction and exemptions. [Amended 4-14-1997 by Ord. No. 5-97]

(1) Developers of low- and moderate-income housing units shall be exempt from paying development fees.

(2) Developers which have received preliminary or final approval prior to March 16, 1995, and are protected pursuant to the provisions of N.J.S.A. 40:55D-52 shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.

E. Collection of fees.

(1) Developers shall pay 50% of the calculated development fee to Old Bridge Township 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 of Old Bridge Township at the issuance of certificates of occupancy. At the issuance of certificate 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 building permit.

F. Housing Trust Fund.

(1) There is hereby created an interest-bearing Housing Trust Fund in the Amboy National Bank for the purpose of receiving development fees from residential 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.

(2) If COAH determines the Old Bridge Township is not in conformance with COAH's rules on development fees, COAH is 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 Amboy National Bank.

G. Use of funds.

(1) Money deposited in a Housing Trust Fund may be used for any activity approved by COAH for addressing Old Bridge Township'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 improvements of roads and infrastructure to low- and moderate-income housing sites; assistance designed to render units to be more affordable to low- and moderate-income people; and administrative costs necessary to implement Old Bridge Township housing element. The expenditure of all money shall conform to a spending plan approved by COAH.

(2) At least 30% 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 20% 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 be expended to reimburse Old Bridge Township for housing activities that preceded substantive certification.

H. Expiration of ordinance amendment. This amendment shall expire if:

(1) COAH dismisses or denies Old Bridge Township's petition for substantive certification.

(2) COAH revokes substantive certification or its certification of this chapter.

(3) Substantive certification/judgment of repose expires prior to Old Bridge Township's filing an adopted housing element with COAH, petitioning for substantive certification or receiving COAH's approval of this chapter amendment.

§ 250-67. Phasing.

A. Any approval of a development application subject to these provisions shall require that construction of the low- and moderate-income units be phased in with the balance of the development in accordance with the following standard:

B. Certificates of occupancy shall not be issued for more than 25% of the total number of market units until certificates of occupancy have been issued for at least 25% of the total number of low- or moderate-income units; certificates of occupancy shall not be issued for more than 50% of the total number of market units until certificates of occupancy have been issued for at least 60% of the total number of low- or moderate-income units; certificates of occupancy shall not be issued for more than 75% of the total number of market units until certificates of occupancy have been issued for at least 85% of the total number of low- or moderate-income units; certificates of occupancy shall not be issued for more than 90% of the total number of market units until certificates of occupancy have been issued for 100% of the low- or moderate-income units.

C. Where construction of low- or moderate-income units is being phased in with the balance of a development, each phase shall include a mixture of low- and moderate-income units reasonably consistent with the percentage distribution of each category within the development as a whole.

§ 250-68. Special design standards.

A. No more than 50% of the low- or moderate-income units in any development subject to these provisions shall be one-bedroom units or efficiency units. At least 20% of these units shall be three-bedroom units or larger, except for units in senior citizen complexes. Construction of the various-sized units shall be phased proportionately according to the standards set forth in the above section.

B. Such units shall not be smaller than the following:

C. No more than 20% of the total number of low- or moderate-income units that may be developed in any development subject to these provisions may have occupancy restrictions based on the age of household members, except for the senior citizen projects provided for in the aforesaid settlement agreement. Where such age restrictions are permissible, occupancy shall be restricted to persons aged 62 or over. The Township may not require a developer of low- or moderate-income housing to impose any age-based occupancy restrictions with respect to such units as a condition of approval.

D. Developments containing low- and moderate-income units shall physically disperse such units as follows:

(1) No more than 24 low- or moderate-income units may be located in any single building. No building, cluster or section shall be required to contain any lower income units. In any section containing low- or moderate-income housing units, no more than 1/3 of the total number of units may be low- or moderate-income units. Clusters may contain only low- or moderate-income units; provided that such a cluster is as much a part of a section as the clusters of market units, and market clusters, such as grassy areas, internal roads or sidewalks shall be no different than the boundaries between market clusters. Moreover, the landscaping buffers provided shall not differ from those generally used in other portions of the development nor differ from those buffers generally used to separate sections of the development with different types of housing.

(2) The restrictions contained in Subsection D(1) above shall not apply to any building, cluster or section when necessary to finance the development of the building, cluster or section through public or tax-exempt funding, but in no event shall any one building, cluster or section developed pursuant to this subsection contain more than 150 lower income units.

(3) Low- or moderate-income housing units must be located so as to afford similar access to transportation, community shopping, recreation, and other amenities as is provided to other units in the same development.

§ 250-69. Other regulations.

Applicants and the approving board should also refer to Chapter 5, Article XXIX, Affordable Housing Agency, of the Code of the Township of Old Bridge, for additional requirements relating to the required provision of affordable housing. Such additional requirements are incorporated herein by reference as though they were set forth herein at length.