Bill Text: NJ A4438 | 2016-2017 | Regular Session | Introduced
Bill Title: Eliminates authorization for municipalities to impose mandatory affordable housing development fees.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2017-01-10 - Introduced, Referred to Assembly Housing and Community Development Committee [A4438 Detail]
Download: New_Jersey-2016-A4438-Introduced.html
Sponsored by:
Assemblyman PARKER SPACE
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Eliminates authorization for municipalities to impose mandatory affordable housing development fees.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the imposition of development fees for affordable housing purposes, amending P.L.2008, c.46, and repealing parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.2008, c.46 (C.52:27D-329.2) is amended to read as follows:
8. a. [The council may authorize a] A municipality [that has petitioned for substantive certification, or that has been so authorized by a court of competent jurisdiction, and which has adopted a municipal development fee ordinance to] shall not impose and collect mandatory development fees from developers [of residential property, in accordance with rules promulgated by the council]. [Each amount collected shall be deposited and shall be accounted for separately, by payer and date of deposit.]
A municipality may not spend or commit to spend any affordable housing development fees, including Statewide non-residential fees collected and deposited into the municipal affordable housing trust fund prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), without first obtaining [the council's] approval of the expenditure from the council or a court of competent jurisdiction. The council shall promulgate regulations regarding the establishment, administration and enforcement of the expenditure of affordable housing development fees by municipalities. [The council shall have exclusive jurisdiction regarding the enforcement of these regulations, provided that any municipality which is not in compliance with the regulations adopted by the council 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 section 20 of P.L.1985, c.222 (C.52:27D-320).]
b. A municipality shall deposit all fees collected, whether or not such collections were derived from fees imposed upon non-residential or residential construction into a trust fund dedicated to those purposes as required under this section, and such additional purposes as may be approved by the council or a court of competent jurisdiction.
c. (1) A municipality may only spend development fees for an activity approved by the council or a court of competent jurisdiction to address the municipal fair share obligation.
(2) Municipal development
trust funds shall not be expended to reimburse municipalities for activities
which occurred prior to the
authorization of a municipality to collect development fees.
(3) A municipality shall set aside a portion of its development fee trust fund for the purpose of providing affordability assistance to low and moderate income households in affordable units included in a municipal fair share plan, in accordance with rules of the council.
(a) Affordability assistance programs may include down payment assistance, security deposit assistance, low interest loans, common maintenance expenses for units located in condominiums, rental assistance, and any other program authorized by the council.
(b) Affordability assistance to households earning 30 percent or less of median income may include buying down the cost of low income units in a municipal fair share plan to make them affordable to households earning 30 percent or less of median income. The use of development fees in this manner shall not entitle a municipality to bonus credits except as may be provided by the rules of the council.
(4) A municipality 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, or any program or activity for which the municipality expends development fee proceeds, in accordance with rules of the council.
(5) Not more than 20 percent of the revenues collected from development fees shall be expended on administration, in accordance with rules of the council.
d. The council shall establish a time by which all development fees collected within a calendar year shall be expended; provided, however, that all fees shall be committed for expenditure within four years from the date of collection, or the date specified by the council or a court of competent jurisdiction. [A municipality that fails to commit to expend the balance required in the development fee trust fund by the time set forth in this section shall be required by the council to transfer the remaining unspent balance at the end of the four-year period to the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), as amended by P.L.2008, c.46 (C.52:27D-329.1 et al.), to be used in the housing region of the transferring municipality for the authorized purposes of that fund.]
e. Notwithstanding any provision of this section, or regulations of the council, a municipality shall not collect a development fee from a developer whenever that developer is providing for the construction of affordable units, either on-site or elsewhere within the municipality.
[This section shall not apply to
the collection of a Statewide development fee imposed upon non-residential
development pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1
et seq.) by the State Treasurer, when such collection is not
authorized to be retained by a municipality.]
(cf: P.L.2008, c.46, s.8)
2. Section 9 of P.L.2008, c.46 (C.52:27D-329.3) is amended to read as follows:
9. a. [The council may authorize a] A municipality [that has petitioned for substantive certification to] shall not impose and collect mandatory payments-in-lieu of constructing affordable units on site upon the construction of residential or non-residential development [, which payments may be imposed and collected as provided pursuant to the rules of the council]. Payment-in-lieu fees shall be deposited into a trust fund, and accounted for separately from any other fees collected by a municipality. [Whenever a payment-in-lieu is charged by a municipality pursuant to this subsection, a development fee authorized pursuant to section 8 of P.L.2008, c.46 (C.52:27D-329.2) shall not be charged in connection with the same development.]
b. A municipality shall commit to expend collections from payments-in-lieu imposed , prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), pursuant to subsection a. of this section within four years of the date of collection, or the date specified by the council or a court of competent jurisdiction. The council or a court of competent jurisdiction may extend this deadline if the municipality submits sufficient proof of building or other permits, or other efforts concerning land acquisition or project development. The council shall provide such administrative assistance as may be required to aid in the construction of affordable housing units. [A municipality that fails to commit to expend the amounts collected pursuant to this section within the timeframes established shall be required to transfer any unexpended revenue collected pursuant to subsection a. of this section to the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), to be used within the same housing region for the authorized purposes of that fund, in accordance with regulations promulgated by the council.]
(cf: P.L.2008, c.46, s.9)
3. The following sections of law are repealed:
Sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7);
Sections 39 and 40 of P.L.2009, c.90 (C.40:55D-8.8 and C.52:27D-311.3);
Section 14 of P.L.2008, c.46 (C.52:27D-329.8); and
Section 41 of P.L.2009, c.90 (C.52:27D-320.1).
4. This act shall take
effect immediately.
STATEMENT
This bill would eliminate the ability of a municipality to impose mandatory development fees upon real estate developers for the purpose of funding municipal affordable housing obligations. The bill would repeal or amend provisions of law that specifically authorized municipalities to impose and collect mandatory affordable housing development fees upon residential and non-residential construction.
Mandatory development fee ordinances are simply revenue raising devices imposing fees upon a discrete group of landowners and taxpayers for the purpose of funding the general municipal obligation to provide a realistic opportunity for affordable housing. It is highly inequitable to shift a public responsibility from all property owners to a small segment of the community, current and future builders, to remedy a municipality's prior default in providing for inclusionary housing.
