New Jersey § 52:27d-329

§ 52:27d-329.

a. The council may authorize 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 impose and collect 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, without first obtaining the council's approval of the

expenditure. 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. c. (1) A municipality may only spend development fees for an activity approved by

the council 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. 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.