New ordinance updates development fees for affordable housing in Mount Arlington.

Mount Arlington Borough  COUNTY OF MORRIS, STATE OF NEW JERSEY  NOTICE OF ORDINANCE ORDINANCE 04-2026 NOTICE IS HEREBY GIVEN that the following Ordinance was introduced by the Governing Body of the Borough of Mount Arlington, in the County of Morris, State of New Jersey, at a regular meeting held on February 3, 2026: AN ORDINANCE OF THE BOROUGH OF MOUNT ARLINGTON, COUNTY OF MORRIS, STATE OF NEW JERSEY, REPEALING AND REPLACING ARTICLE XVIII, "DEVELOPMENT FEES," IN THE BOROUGH OF MOUNT ARLINGTON'S LAND DEVELOPMENT ORDINANCE The purpose of this Ordinance is to repeal and replace Article XVIII of the Borough of Mount Arlington's Land Development Ordinance in order to update and codify standards for the collection, maintenance, and expenditure of development fees in accordance with P.L. 2024, c.2, Sections 8 and 32\D38, and N.J.A.C. 5:97-8. All fees collected pursuant to this Ordinance shall be used for the sole purpose of providing low- and moderate-income housing. The Ordinance, as amended and restated, includes the following subject matter: \c 17-90 \D Development Fee Ordinance. Establishes the authority and framework for the collection of development fees from residential and nonresidential developers, authorized pursuant to the Fair Housing Act, P.L. 1985, c.222, and P.L. 2024, c.2, with rulemaking authority delegated to the Department of Community Affairs. \c 17-91 \D Basic Requirements. Provides that this Ordinance shall not take effect until approved by the Department of Community Affairs, and that the Borough shall not expend development fees until a spending plan has been approved in conformance with N.J.A.C. 5:97-8.10 and N.J.A.C. 5:96-5.3. \c 17-92 \D Definitions. Sets forth definitions applicable to Article XVIII, including Affordable Housing Development, Construction, Department, Developer, Development Fee, Equalized Assessed Value, Mixed-Use Development, Non-Residential Development, Non-Residential Development Fee, and others consistent with State law and DCA regulations. \c 17-93 \D Residential Development Fees. Imposes a residential development fee of 1.5% of equalized assessed value within the Borough's affordable housing district(s). Where a "d" variance permits increased density, a fee of up to 6% of equalized assessed value may be imposed on each additional unit. Fees also apply when an existing structure is demolished and replaced or converted to a more intense use. Single-family additions and one- and two-family owner-occupied structures demolished and replaced due to fire, flood, or natural disaster are exempt. \c 17-94 \D Nonresidential Development Fees. Imposes a nonresidential development fee of 2.5% of equalized assessed value for all new nonresidential construction on unimproved lots and for additions to existing nonresidential structures. Establishes eligible and ineligible exactions, exemptions, and collection procedures, including the requirement that 50% of the fee be collected at building permit issuance and the remainder at certificate of occupancy. Provides appeal procedures for both residential and nonresidential development fees. \c 17-95 \D Affordable Housing Trust Fund. Establishes a separate, interest-bearing Affordable Housing Trust Fund to receive development fees, payments in lieu of on-site construction, rental income from municipally operated units, loan repayments, recapture funds, and proceeds from the sale of affordable units. Requires a three-party escrow agreement with DCA. Mandates that at least 30% of all development fees and interest earned be used to provide affordability assistance to low- and moderate-income households, with one-third of that amount directed to households earning 30% or less of regional median income. Limits administrative expenditures to no more than 20% of revenues. \c 17-96 \D Monitoring. Requires the Borough to complete and return all monitoring forms to DCA regarding the collection and expenditure of development fees and related funds, through the Affordable Housing Monitoring System (AHMS). \c 17-97 \D Ongoing Collection of Fees. Provides that the Borough's authority to impose, collect, and expend development fees shall expire with its substantive certification unless the Borough maintains a filed and approved Housing Element and Fair Share Plan, petitions for substantive certification, and obtains DCA approval of this Ordinance. Failure to renew may result in forfeiture of trust fund balances to the New Jersey Affordable Housing Trust Fund. Said Ordinance will be further considered for final passage after a Public Hearing to be held on Tuesday, March 3, 2026, at 7:00 p.m., at the Municipal Building, Mount Arlington, New Jersey. Copies of this Ordinance are available in the office of the Borough Clerk for members of the general public who request the same. This Ordinance shall take effect after final adoption and publication and otherwise as provided by applicable law.  Ashley N. Todd Acting Borough Clerk, Borough of Mount Arlington P.F.$77.52 02/19/T1