The deadline for municipalities to pass a binding resolution determining their present and prospective fair share obligation under the fourth round of affordable housing was January 31. Linked here is a chart showing both the Department of Community Affairs (“DCA”) and the municipalities’ present and prospective need calculations. The chart also identifies the reduction, if any, in what municipalities believe to be their prospective need obligations. In total, municipalities which adopted binding resolutions have reduced their prospective need obligations by over 13,000 units.

Continue Reading Municipalities Have Determined Their Affordable Housing Present and Prospective Need Obligations; What Are The Numbers, What Do They Mean, and What Comes Next?

Governor Murphy today signed Senate Bill 1323/Assembly Bill 2076, the long-awaited legislation correcting many of the impediments holding-back the use of “NJ Aspire” – a potentially powerful financial incentive that was designed to address project financing gaps through the awarding of transferable, pledgeable state tax credits to eligible proposed redevelopment projects.

Click here to view the summary of Aspire 3.0.

Earlier today, the Superior Court judge hearing a lawsuit on behalf of now 26 municipalities challenging the fourth-round rules of affordable housing obligations issued an Order denying their requests for injunctive relief pending the Court’s final judgment of the litigation. The Order, which followed oral arguments held two weeks ago, states that the municipalities’ challenge to the fourth-round rules can proceed without delaying the fourth round or its deadlines. The Court also scheduled oral arguments on the defendants’ pending motions to dismiss the municipal plaintiffs’ complaint for January 31 at 10:00 am via Zoom, which will be livestreamed.

Continue Reading Breaking News: Court Denies Municipalities’ Request for a Stay of Fourth Round of Affordable Housing

In our previous summary of the Aspire legislation approved by both houses of the State Legislature two weeks ago and now awaiting Governor Murphy’s enactment into law (click here to view the summary of Aspire 3.0), we noted the following with respect to the usability of Aspire tax credits:

State Buyback of Tax Credits: The Aspire tax credits are only usable against the Corporate Business Tax and insurance premium taxes. Should a project redeveloper be unable to use directly or sell its credits, the State Treasury will have the discretion to purchase such credits at a floor of 0.85 cents per dollar. (Note that many of the bills’ sponsors will be introducing legislation early in the new year that would obligate the State Treasury to be the “buyer of last resort” for unutilized credits—a step that would provide the certainty and predictability that many equity investors and debt financiers give considerable weight (if not require) in the course of the underwriting process.)

Continue Reading Update on NJ Aspire 3.0

Redevelopers have always struggled to make the numbers work on their proposed projects due to the unique added expenses of redevelopment not typically encountered on “greenfield” new construction projects—costs of land assemblage, environmental remediation, and structured parking, to name a few. Project financing-gaps only widened during and following COVID, as inflation drove up the cost of labor and materials and the Federal Reserve launched a rapid series of interest rate hikes. Adding to the challenge, local incentives—specifically, long-term tax exemptions (PILOTs), even when coupled with redevelopment area bond (RAB) sale proceeds—have generally not been generous enough to make the numbers work.  As a result, even proposed redevelopment projects in tested, primary New Jersey cities have not always penciled-out.

Continue Reading Breaking News: State Legislature Just Approved NJ Aspire 3.0

Just about two months after the New Jersey Economic Development Authority (“NJEDA”) approved the Garden State Commercial Property Assessed Clean Energy program, or “C-PACE”, it has released form documents for municipalities wanting to opt into the Program.  The documents include a sample ordinance and form Program Agreement to be executed by the NJEDA and the municipality. The C-PACE program will provide low interest rate loans to certain property owners, including commercial and industrial property owners and tax-exempt/nonprofit entities, seeking to undertake certain improvements expand or implement energy efficiency and water conservation (i.e. electric vehicle charging stations and improved stormwater management systems). Municipalities are required to first opt-in before property owners in their town can apply for the Program. The application process for owners has yet to commence, but the NJEDA states it will start accepting applications shortly on a rolling basis.

Continue Reading NJEDA Releases Opt-In Documents for Municipalities to Participate in Garden State C-PACE Program

For the first time in nearly a quarter-century, the NJ State Planning Commission is making a concerted effort to update the State Development and Redevelopment Plan.  Today, the Commission released a preliminary draft of a new plan and set an ambitious timeline for adopting the document by the end of 2025.  Historically, the State Development and Redevelopment Plan has served as a guide to align state, county and local land use policies and objectives.

Continue Reading Murphy Administration Releases Preliminary Draft of New State Plan (The First Since 2001)

A Superior Court judge yesterday granted an order to show cause in connection with a lawsuit filed by 21 municipalities challenging the fourth-round rules of affordable housing obligations. (The Court’s Order can be found here.) As a result, the State and other defendants will have to show why the Court should not Order for the legislation enacting the fourth-round rules and all obligations of New Jersey municipalities under the legislation to be stayed pending final judgment of the Court. The viability and, if they survive, the timing of the fourth-round rules are now in limbo.

Continue Reading Breaking News: Court Potentially Stays Fourth Round of Affordable Housing Obligations

By now, most residential and mixed-use developers doing business in New Jersey have read that the Department of Community Affairs (“DCA”) late last Friday released its report calculating regional and municipal obligations for the fourth round of affordable housing units that must be built. DCA calculated the statewide affordable housing “present need” to be 65,410 units and “prospective need” to be 84,698 units. The report, along with each municipality’s present and prospective affordable housing needs, can be found here.

Continue Reading Fourth Round Affordable Housing Obligation Calculations Have Been Released; What Do They Mean for Developers and What Comes Next?

As seen on: The Weekender Brief (NAIOP NJ)

Acting Governor Nicholas P. Scutari yesterday signed into law the New Jersey Design Professional Self-Certification Act (S3402/A4350). Championed by NAIOP NJ, the new law will help streamline approvals and advance development and redevelopment projects.

Continue Reading Plan Review Bill Becomes Law