vii. Any other funds collected in connection with the municipal affordable

housing program including but not limited to interest earned on fund

deposits.

c. The municipality shall provide the Division with written authorization, in the

form of a tri-party escrow agreement(s) between the municipality, the Division

and the financial institution in which the municipal affordable housing trust

fund has been established to permit the Division to direct the disbursement of

the funds as provided for in N.J.A.C. 5:99-2.1 et seq.

d. Occurrence of any of the following deficiencies may result in the Division

requiring the forfeiture of all or a portion of the funds in the municipal

Affordable Housing Trust Fund:

i. Failure to meet deadlines for information required by the Division in its

review of a development fee ordinance;

ii. Failure to commit or expend development fees within four years of the

date of collection in accordance with N.J.A.C. 5:99-5.5;

iii. Failure to comply with the requirements of the Non-Residential

Development Fee Act and N.J.A.C. 5:99-3;

iv. Failure to submit accurate monitoring reports pursuant to this subchapter

within the time limits imposed by the Act, this chapter, and/or the Division;

v. Expenditure of funds on activities not approved by the Superior Court or

otherwise permitted by law;

vi. Revocation of compliance certification or a judgment of compliance and

repose;

vii. Failure of a municipal housing liaison or administrative agent to comply

with the requirements set forth at N.J.A.C. 5:99-6, 7, and 8;

viii. Other good cause demonstrating that municipal affordable housing funds

are not being used for an approved purpose.

e. All interest accrued in the housing trust fund shall only be used on eligible

affordable housing purposes approved by the Court.

8. Use of Funds

a. The expenditure of all funds shall conform to a Spending Plan approved by

Superior Court. Funds deposited in the municipal Affordable Housing Trust

Fund may be used for any activity approved by the Court to address the fair

share obligation and may be set up as a grant or revolving loan program.

Such activities include, but are not limited to: preservation or purchase of

housing for the purpose of maintaining or implementing affordability controls;

housing rehabilitation; new construction of affordable housing units and

related costs; accessory apartments; a market-to-affordable program;

conversion of existing non-residential buildings to create new affordable units;

green building strategies designed to be cost-saving and in accordance with

accepted national or state standards; purchase of land for affordable housing;

improvement of land to be used for affordable housing; extensions or