This Ordinance shall be known and may be cited as: Development Fee Ordinance City of Ocean City. (Ord. #99-14, I)

In Holmdel Builder's Association v. Holmdel Borough, 121 N.J. 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 the Council on Affordable Housing's developing rules. The purpose of this Ordinance is to establish standards for the collection, maintenance and expenditure of development fees pursuant to COAH's rules. Fees collected pursuant to this Ordinance shall be used for the sole purpose of providing low and moderate income housing. This Ordinance shall be interpreted within the framework of COAH's rules on development fees. (Ord. #99-14, III)

a. Developers constructing two (2) family (duplex) or multiple family dwelling units, except as otherwise set forth, shall pay to the City of Ocean City a development fee of one-half of one percent (1/2%) of the added value to the property as a result of the construction as determined by the Tax Assessor when placing an added assessment on the real property. (Ord. #99-14, IV)

a. Developers of low and moderate income units shall be exempt from paying development fees.

b. Developers of single family detached dwellings shall be exempt from paying development fees. For purposes of this section, a single unit in a residential multifamily structure or building shall not be considered a single family detached dwelling unit.

c. Developers that have received preliminary or final approval prior to the effective date of this Ordinance shall be exempt from paying a development fee unless the developer seeks a substantial change in the approval.

d. Developers that expand an existing structure shall not pay a development fee unless the expansion of the existing structure creates an additional dwelling unit. (Ord. #99-14, V)

a. Developers shall pay the development fee to the City of Ocean City at the issuance of the Certificate of Occupancy. (Ord. #99-14, VI)

a. There is hereby created an interest bearing Housing Trust Fund for the purpose of receiving development fees from resident and nonresidential developers. All development fees paid by developers pursuant to this Ordinance shall be deposited in this fund. No money shall be expended from the Housing Trust Fund unless the expenditure conforms to the spending plan approved by COAH. (Ord. #99-14, VII)

a. Money deposited in a Housing Trust Fund may be used for any activity approved by COAH for addressing the City of Ocean City's low and moderate income housing obligation. Such activities may include, but are not necessarily limited to: housing rehabilitation, buy-down/write-down of previously owned units, new construction, regional contribution agreements, the purchase of land for low and moderate income housing, purchase of low and moderate income units for rental purposes, extension and/or improvements of roads and infrastructure to low and moderate income housing sites, assistance designed to render units for affordable to low and moderate income households and administrative costs necessary to implement the City of Ocean City's housing element. The expenditure of all money shall conform to a spending plan approved by COAH.

b. At least thirty percent (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, buy-down/write-down assistance, low interest loans and rental assistance.

c. No more than twenty percent (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.

d. Development fee revenues shall not be expended to reimburse the City of Ocean City for housing activities that preceded substantive certification. (Ord. #99-14, VIII)

This Ordinance shall expire if:

a. COAH dismisses or denies the City of Ocean City's petition for substantive certification;

b. COAH revokes substantive certification or its certification of this Ordinance.

c. Substantive certification/judgment of repose expires prior to Ocean City's filing an adopted housing element with COAH petitioning for substantive certification or receiving COAH's approval of this Ordinance. (Ord. #99-14, IX)