New Jersey § 13:20-13

§ 13:20-13.

a. The council shall use the regional master plan elements prepared pursuant to sections

11 and 12 of this act, 1 including the resource assessment and the smart growth component, to establish a

transfer of development rights program for the Highlands Region that furthers the

goals of the regional master plan. The transfer of development rights program shall be consistent with the “State Transfer

of Development Rights Act,” P.L.2004, c. 2 ( C.40:55D-137 et seq. ) or any applicable transfer of development rights program created otherwise by law,

except as otherwise provided in this section. b. In consultation with municipal, county, and State entities, the council shall,

within 18 months after the date of enactment of this act, and from time to time thereafter

as may be appropriate, identify areas within the preservation area that are appropriate

as sending zones pursuant to P.L.2004, c. 2 ( C.40:55D-137 et seq. ). c. In consultation with municipal, county, and State entities, the council shall,

within 18 months after the date of enactment of this act, and from time to time thereafter

as may be appropriate, identify areas within the planning area that are appropriate

for development as voluntary receiving zones pursuant to P.L.2004, c. 2 ( C.40:55D-137 et seq. ) considering the information gathered pursuant to sections 11 and 12 of this act,

including but not limited to the information gathered on the transfer of development

rights pursuant to paragraph (6) of subsection a. of section 11 of this act. For the purposes of the council establishing a transfer of development rights program

prior to the preparation of the initial regional master plan, the council in identifying

areas appropriate for development as voluntary receiving zones shall consider such

information as may be gathered pursuant to sections 11 and 12 of this act and as may

be available at the time, but the council need not delay the creation of the transfer

of development rights program until the initial regional master plan has been prepared. The council shall set a goal of identifying areas within the planning area that

are appropriate for development as voluntary receiving zones that, combined together,

constitute four percent of the land area of the planning area, to the extent that

the goal is compatible with the amount and type of human development and activity

that would not compromise the integrity of the ecosystem of the planning area. d. The council shall work with municipalities and the State Planning Commission to

identify centers, designated by the State Planning Commission, as voluntary receiving

zones for the transfer of development rights program. e. In consultation with municipal, county, and State entities, the council shall assist

municipalities or counties in analyzing voluntary receiving zone capacity. f. In consultation with municipal, county, and State entities, the council shall work

with municipalities outside of the preservation area to assist these municipalities

in developing ordinances necessary to implement the transfer of development rights. The council shall also establish advisory or model ordinances and other information

for this purpose. The council shall make assistance available to municipalities that desire to create

additional sending zones on any lands within their boundaries which lie within the

planning area and are designated for conservation in the regional master plan. g. Notwithstanding the provisions of P.L.2004, c. 2 ( C.40:55D-137 et seq. ) to the contrary, the council shall perform the real estate analysis for the Highlands

Region that is required to be performed by a municipality prior to the adoption or

amendment of any development transfer ordinance pursuant to P.L.2004, c. 2 . h. (1) The council shall set the initial value of a development right. The Office of Green Acres in the Department of Environmental Protection and the

State Agriculture Development Committee shall provide support and technical assistance

to the council in the operation of the transfer of development rights program. The council shall establish the initial value of a development right considering

the Department of Environmental Protection rules and regulations in effect the day

before the date of enactment of this act. (2) The council shall give priority consideration for inclusion in a transfer of development

rights program any lands that comprise a major Highlands development that would have

qualified for an exemption pursuant to paragraph (3) of subsection a. of section 30

of this act but for the lack of a necessary State permit as specified in subparagraph

(b) or (c), as appropriate, of paragraph (3) of subsection a. of section 30 of this

act, 2 and for which an application for such a permit had been submitted to the Department

of Environmental Protection and deemed by the department to be complete for review

on or before March 29, 2004. i. (1) The council may use the State Transfer of Development Rights Bank established

pursuant to section 3 of P.L.1993, c. 339 ( C.4:1C-51 ) for the purposes of facilitating the transfer of development potential in accordance

with this section and the regional master plan. The council may also establish a development transfer bank for such purposes. (2) At the request of the council, the Department of Banking and Insurance, the State

Transfer of Development Right s Bank, the State Agriculture Development Committee, and the Pinelands Development

Credit Bank shall provide technical assistance to the council in establishing and

operating a development transfer bank as authorized pursuant to paragraph (1) of this

subsection. (3) Any bank established by the council shall operate in accordance with provisions

of general law authorizing the creation of development transfer banks by municipalities

and counties. j. The Office of Smart Growth shall review and coordinate State infrastructure capital

investment, community development and financial assistance in the planning area in

furtherance of the regional master plan. Prior to the council establishing its transfer of development rights program, the

Office of Smart Growth shall establish a transfer of development rights pilot program

that includes Highlands Region municipalities. k. Any municipality in the planning area whose municipal master plan and development

regulations have been approved by the council to be in conformance with the regional

master plan in accordance with section 14 or 15 of this act, 3 and that amends its development regulations to accommodate voluntary receiving zones

within its boundaries which are identified pursuant to subsection c. of this section

and which provide for a minimum residential density of five dwelling units per acre,

shall, for those receiving zones, be: eligible for an enhanced planning grant from

the council of up to $250,000; eligible for a grant to reimburse the reasonable costs

of amending the municipal development regulations; authorized to impose impact fees

in accordance with subsection m. of this section; entitled to legal representation

pursuant to section 22 of this act; 4 accorded priority status in the Highlands Region for any State capital or infrastructure

programs; and eligible for any other appropriate assistance, incentives, or benefits

provided pursuant to section 18 of this act. 5 l . Any municipality located outside of the Highlands Region that (1) has received plan endorsement by the State Planning Commission pursuant to the “State

Planning Act,” P.L.1985, c. 398 ( C.52:18A-196 et al.), or the State Planning Commission, in coordination with the Highlands Water Protection

and Planning Council, determines has designated an appropriate project area as a receiving

zone, (2) establishes a receiving zone which provides for a minimum residential density of

five dwelling units per acre for the transfer of development rights from a sending

zone in the Highlands Region, and (3) accepts that transfer of development rights , shall, for those receiving zones, be eligible for the same grants, authority, and

other assistance, incentives, and benefits as provided to municipalities in the planning

area pursuant to subsection k. of this section except for legal representation as

provided pursuant to section 22 of this act and priority status in the Highlands Region

for any State capital or infrastructure programs. m. (1) A municipality that is authorized to impose impact fees under subsection k.

of this section shall exercise that authority by ordinance. (2) Any impact fee ordinance adopted pursuant to this subsection shall include detailed

standards and guidelines regarding: (a) the definition of a service unit, including

specific measures of consumption, use, generation or discharge attributable to particular

land uses, densities and characteristics of development; and (b) the specific purposes

for which the impact fee revenues may be expended. (3) An impact fee ordinance shall also include a delineation of service areas for

each capital improvement whose upgrading or expansion is to be funded out of impact

fee revenues, a fee schedule which clearly sets forth the amount of the fee to be

charged for each service unit, and a payment schedule. (4) An impact fee may be imposed by a municipality pursuant to this subsection in

order to generate revenue for funding or recouping the costs of new capital improvements

or facility expansions necessitated by new development, to be paid by the developer

as defined pursuant to section 3.1 of P.L.1975, c. 291 ( C.40:55D-4 ). Improvements and expansions for which an impact fee is to be imposed shall bear

a reasonable relationship to needs created by the new development, but in no case

shall an impact fee assessed pursuant to this subsection exceed $15,000 per dwelling

unit unless and until impact fees are otherwise established by law at which time the

impact fee shall be 200% of the calculated impact fee. (5) No impact fee shall be assessed pursuant to this subsection against any low or

moderate income housing unit within an inclusionary development as defined under P.L.1985,

c. 222 ( C.52:27D-301 et al.). No impact fee authorized under this subsection shall include a contribution for any

transportation improvement necessitated by a new development in a county which is

covered by a transportation development district created pursuant to the “New Jersey

Transportation Development District Act of 1989,” P.L.1989, c. 100 ( C.27:1C-1 et al.). 1

N.J.S.A. §§ 13:20-11 and 13:20-12. 2

N.J.S.A. § 13:20-28. 3

N.J.S.A. §§ 13:20-14 and 13:20-15. 4

N.J.S.A. § 13:20-20. 5

N.J.S.A. § 13:20-18.