Environmental/NJDEP

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New Rule Would Devastate Most Brownfield Redevelopment

Last November, NJDEP proposed voiding current law and instead mandating the reporting of contamination discovered during due diligence by prospective buyers and their professionals, even non-LSRPs. Such reporting would trigger liability for the current owner even if the proposed sale did not go through – a risk most sellers would not want to take. The brownfield redevelopment community testified during the rule comment period that the proposed rule would kill the vast majority of brownfield transactions. Yet, despite such fierce opposition and compelling logic on the side of fostering brownfield redevelopment, NJDEP has announced that it is re-proposing this controversial rule.Continue Reading NJDEP Re-Proposes Highly Controversial Due Diligence Rule

The latest proposed rule as part of DEP’s ongoing Protecting Against Climate Threats (PACT) Resilient Environments and Landscapes (REAL) program is currently expected to be adopted early this summer. The proposed rules are vast in scope and warrant attention by all owners, landlords, property managers, lenders, and insurers of properties near any tidal water body as well as anyone planning to develop, expand, or redevelop those sites.Continue Reading Just What the Regulated Community Didn’t Need: DEP’s Proposed Coastal PACT/REAL Rule Creates Uncertainty for Existing and Proposed Development

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

Disclosures affect all properties including commercial and industrial.

Specifics of the scope of the disclosures left unresolved.

On December 21, 2023, the Department of Community Affairs (DCA) published forms applying to:

  • Sales of any property in New Jersey after March 20, 2024.
  • New leases and lease renewals for any leased property, including commercial and industrial leaseholds.

Continue Reading New Flooding Condition Disclosures Published – Effective March 20, 2024

A new statute imposes sweeping new notice requirements affecting properties that are subject to flooding. All owners of land in New Jersey, including commercial and industrial property owners, who lease their sites or are considering a transfer of improved or unimproved land should consider whether the new notice requirements apply. A copy of the adopted statute can be found here.Continue Reading Landlords and Sellers of Property Beware: New Law Requires Disclosure of Flood Risks for Commercial, Industrial and Multi-Family Sites

DEP has adopted new Inland Flood and Stormwater rules effective upon publication in either the July 3, 2023 or July 17, 2023 New Jersey Register. We will post an update when the exact date is known. A courtesy copy of the rule adoption document can be found here.

As summarized in our June 3, 2022 post regarding the initial proposals, anyone with a pending or planned project that involves either an area near a non-tidal river or stream or a project that is subject to DEP’s stormwater rules, will likely need to reassess the scope of the project if approvals are pending.

After extensive comments from the regulated community were received, the Department revised the various “grandfather” provisions from the initial proposal. The following categories of “activities” would be subject to the current rules:Continue Reading DEP Adopts New Inland Flood and Stormwater Rules That Will Require Many Projects to Be Redesigned or Abandoned

Recently passed legislation on Governor Murphy’s desk for enactment would require all new leases and lease renewals in New Jersey – both commercial and residential – to include specific disclosures regarding potential and past flooding. Similar disclosures would also be required to be added to the “Property Condition Disclosure Statement” for the sale of “any real property located in the State.” (A separate post on this law blog will summarize the bill’s impact on sale contracts.)Continue Reading Bill on Governor Murphy’s Desk Would Impose New Flood Disclosure Notice Requirement on All Commercial & Residential Leases and Sales of Property

DEP Commissioner announced that the Department is moving forward with proposing rules relating to inland flood areas. Earlier this year, DEP had prepared to issue new flood area rules on an “Emergency” basis. The rule concepts put forward by DEP would dramatically expand areas identified as Flood Hazard Areas, and further limit activities in those areas. After significant uproar from municipalities, counties, other state agencies and the development community, the “Emergency Rule” concept was pulled back.
Continue Reading DEP to Move Forward Towards Releasing a New “Inland Flood Protection Rule”

On September 1, the New Jersey Economic Development Authority (EDA) announced its plan to institute a new financial incentive program called the “Brownfields Redevelopment Incentive (BRI) Program,” part of the New Jersey Economic Recovery Act, to spur brownfield redevelopment in New Jersey. The EDA requested public feedback based on information it provided to the public (EDA Information), so that it may tweak the program before the program is established. The EDA held information sessions on September 7 and 8, to present a summary of the program. The slides provided by the EDA at the BRI information sessions are linked here and provide a detailed summary of the program. Following are highlights of key aspects of the proposed program, as set forth in the EDA Information:
Continue Reading New Jersey Economic Development Authority Proposes Brownfields Redevelopment Incentive Program

Sources in Trenton report that the Department of Environmental Protection (DEP) will announce on Monday a delay in publishing the “emergency rule” that was the subject of our June 3 Alert. After feedback from a number of impacted stakeholders, including municipalities, DEP is expected to announce a pause in the publication of the “emergency rule” to allow for more stakeholder input, issue FAQs and release a schedule of stakeholder meetings.
Continue Reading Update: DEP to Delay Publication of “Emergency Rule” on Flood Hazard and Stormwater Regulations