Statewide Non-Residential Development Fee Act Moratorium (continued)
In response to what many have called the “Great Recession”, the Economic Stimulus Act of 2009 targeted the N-RDF by placing a temporary moratorium on the collection of these fees by municipalities. It also authorized reimbursement of these fees, either in part or in full, that were collected under P.L. 2008, c. 46.
More specifically, the Economic Stimulus Act provides for the following scenarios:
- Municipalities that collected monies under Sections 32 through 38 of P.L. 2008, c. 46 (N-RDF) are to be reimbursed at an amount equivalent to the difference between what was paid under said provision and what would have been paid under any ordinance or agreement in place prior to July 17, 2008;
- Municipalities that collected monies at 2.5% on or after July 17, 2008 under Sections 32 through 38 of P.L. 2008, c. 46 (N-RDF) are to be reimbursed that amount in full; and
- Effective July 27, 2009, non-residential development is exempt from all fee collection provided the development meets both of the following stipulations:
- It must receive preliminary or final site plan approval prior to July 1, 2010; and
- Building permits must be issued prior to January 1, 2013.
A developer seeking reimbursement must file a claim to the governmental entity, which collected the fee (state or local) by November 30, 2009. The governmental entity will have 30 days from the developer’s request to pay the reimbursement. Any claims received after close of business November 30, 2009 will be denied. A municipality that has returned all or a portion of non-residential fees to a developer in accordance with the Economic Stimulus Act shall be reimbursed from the funds available through the $15 million appropriation made into the New Jersey Affordable Housing Trust Fund.
A municipality that seeks reimbursement from the New Jersey Affordable Housing Trust Fund must submit its request to COAH by the close of business on March 30, 2010. The reimbursement will be provided by COAH and shall be made within 30 days of the municipality providing written notice. COAH and the New Jersey Department of Treasury have provided N-RDF claim forms for both developers and municipalities seeking reimbursement. They can be found at the following website: http://www.state.nj.us/dca/affiliates/coah/regulations/nrdf.html.
The amendments also provide that the affordable housing obligation generated by a project exempted by Section 40 of the Economic Stimulus Act of 2009 may be “eliminated or reduced” if replacement revenues “available to the municipality” are identified by COAH. There may be instances to potentially reduce and/or eliminate any given obligation generated by a project that would have otherwise provided financing for the construction of affordable housing. Although the New Jersey Department of Community Affairs has projected $60 to $80 million in fee generation for the first year alone, it has been estimated that the Statewide Non-residential Development Fee has only generated $10 million – a likely reflection of the “Great Recession”.
Proof of request for reimbursement is necessary for municipalities that seek to have their affordable housing obligations reduced or eliminated. COAH has two years from the effective date of the Economic Stimulus Act to make this determination, or by July 28, 2011.
Triad Associates is currently the League’s Grant Consulting Firm. Their firm, which is known for its expertise in community and economic development, including strategic planning, redevelopment, acquisition, relocation and funding, has brought diverse plans and projects to life by generating more than $580,000,000 for over 120 public, private and nonprofit clients throughout the Northeast region since 1978. Every member of the Triad team is personally committed and dedicated to the success of its clients and the projects that benefit communities.
