2024

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

Legislation establishing the new fourth round of rules for affordable housing could become law in short order. The Assembly passed its version of the bill, A-4, on February 12.  The Senate Budget and Appropriations Committee moved the Senate’s version of the bill forward to a vote by the full Senate with minor amendments. The Senate is scheduled to vote on its version of the bill, S-50, today, Monday, March 18.Continue Reading Update on Affordable Housing Legislation

Beginning on March 20, 2024, all property owners seeking to lease (including renewals) or sell real property in New Jersey, including commercial real estate, must make certain disclosures to potential tenants and/or buyers regarding historic and potential flood conditions on the subject property. Pursuant to the law codified at P.L. 2023, c.93, which was the subject of prior posts on this law blog, the disclosures must be made by property owners for all new leases, lease renewals, sales or exchanges of real property in New Jersey.Continue Reading UPDATE: Comply With New Flooding Condition Disclosures & Landowner Notification Requirements Beginning March 20, 2024 – Or Risk Losing Your Tenant Or Buyer

Pending legislation aimed at establishing the new fourth round of rules for affordable housing has taken a major step forward. On February 8, the Assembly Appropriations Committee considered the bill, made significant amendments, and moved the bill forward to a vote by the full Assembly. The Assembly is scheduled to vote on the bill, A-4, on Monday, February 12.Continue Reading Affordable Housing Legislation Takes Major Step Forward

Legislation aimed at establishing the new fourth round of rules for affordable housing and the process for same was re-introduced as Assembly Bill A-4 and Senate Bill S-50 in the new legislative session with minor changes from the previous session’s bills (click here and here to view my earlier posts on this subject). Most of the provisions in the previous session’s bills remain unchanged. Notably, the re-introduced bills remove the requirement for the Supreme Court to appoint special masters for regional areas of the state to calculate regional needs on municipal present and future obligations, instead assigning the Department of Community Affairs to calculate these needs. Both bills are progressing through the two houses and have been moved to appropriations committees.Continue Reading Update on Re-Introduced Sweeping Affordable Housing Legislation