June 30, 2011
New Jersey Legislature Extends Moratorium on 2.5% Affordable Housing Fee for Non-Residential Developers
On June 29, 2011, the New Jersey Legislature unanimously passed legislation (S2974/A4221) extending the moratorium on the 2.5% affordable housing fee that non-residential developers were required to pay as part of a revision of the “Fair Housing Act,” P.L.2008, c.46. The legislation will take effect when it is signed by Governor Christie. The original moratorium was included as part of the Economic Stimulus Act of 2009, P.L.2009, c.90. It expired on July 1, 2010. This bill extends the moratorium until July 1, 2013, provided that a non-residential developer obtains preliminary site plan or subdivision approval prior to that date, and obtains building permits prior to January 1, 2015. The developer of a non-residential project that paid the non-residential development fee subsequent to June 30, 2010 will be reimbursed, unless the money has already been spent by a municipality. A developer must submit, in writing, a claim to the same entity to which the moneys were paid, for the return of any non-residential development fees within 120 days of the effective date of the bill. The bill also clarifies that any affordable housing obligation imposed under the “Fair Housing Act” as a result of non-residential construction is suspended whenever the imposition of Statewide non-residential fees is suspended. For more information on this legislation, please contact William F. Harrison, Esq. at (973) 535-4430 or email@example.com.