The Council on Affordable Housing (COAH) was created to ensure that New Jersey municipalities provided their fair share of affordable housing. COAH was established in 1985 in response to the Fair Housing Act and the Mount Laurel doctrine. The Mount Laurel doctrine established that municipalities have a constitutional obligation to provide a variety of housing choices, including affordable housing. On March 20, 2024, New Jersey enacted legislation which substantially revises the Fair Housing Act governing housing for low-income and moderate-income families in New Jersey. Although COAH was disbanded, the obligation of DEVELOPERS remains.

DEVELOPERS (which includes homeowners) looking to add an addition to a home or increasing the footprint of the building may be subject to a COAH development fee.

DEVELOPER means: “The legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land."

Residential Development Fees

Residential Development Fees are required under the following conditions:

1. All residential developers, except for certain types of developments specifically exempted, must pay a fee of 1.5% of the equalized assessed value for all new residential development provided no increased density is permitted. Development fees shall also be imposed and collected when an additional dwelling unit is added to an existing residential structure; in such cases, the fee shall be calculated based on the increase in the equalized assessed value of the property due to the additional dwelling unit.
2. When an increase in residential density is permitted pursuant to a "d" variance granted under N.J.S.A. 40:55D-70(d)(5), developers shall be required to pay a "bonus" development fee of 6% of the equalized assessed value for each additional unit that may be realized, except that this provision shall not be applicable to a development that will include affordable housing.
3. Development fees shall be imposed and collected when an existing structure undergoes a change to a more intense use, is demolished and replaced, or is expanded, if the expansion is not otherwise exempt from the development fee requirement. The development fee shall be calculated on the increase in the equalized assessed value of the improved structure.

NOTE: Exactions and Exemptions do apply

Non-Residential Development Fees

Non-Residential Development Fees are required under the following conditions:

1. Within all zoning districts, nonresidential developers, except for certain types of developments specifically exempted, must pay a fee equal to 2.5% of the equalized assessed value of the land and improvements, for all new nonresidential construction on an unimproved lot or lots.
2. Within all zoning districts, nonresidential developers, except for developers of the types of developments specifically exempted below, shall also pay a fee equal to 2.5% of the increase in equalized assessed value resulting from any additions to existing structures to be used for nonresidential purposes.
3. Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of 2.5% shall be calculated on the difference between the equalized assessed value of the preexisting land and improvements and the equalized assessed value of the newly improved structure; i.e., land and improvements.
4. The nonresidential portion of a mixed-use inclusionary or market-rate development shall be subject to the development fee of 2.5% unless otherwise exempted.

NOTE: Exactions and Exemptions do apply

READ THE ENTIRE AFFORDABLE HOUSING ORDINANCE HERE FOR FULL DETAILS