August 25, 2019

August 23, 2019

Subscribe to Latest Legal News and Analysis

Will Governor Christie Extend the Moratorium on Non-Residential Development Fees?

A new bill (A1907) that would extend the statewide moratorium on the collection of non-residential development fees (“NRDFs”) recently passed both the New Jersey State Assembly and Senate. It now awaits Governor Christie’s signature. If signed into law, the bill would reinstate the moratorium on the collection of NRDFs that expired July 1, 2013, extending it to December 31, 2014. Developers who paid NRDFs during that period would be eligible to seek a refund, which must be granted so long as the NRDF has not already been expended for affordable housing.

NRDFs were initially established in New Jersey by P.L. 2008, c. 46 and codified in the Municipal Land Use Law. For any non-residential development, the required NRDF is 2.5% of the equalized assessed value of land and proposed improvements. The NRDF is collected at the municipal level and paid into a state fund for the development of affordable housing.

The initial moratorium on the collection of NRDFs was contained in P.L. 2009, c. 90 and ended July 1, 2010. The second moratorium was found in P.L. 2011, c. 122, which extended the moratorium to July 1, 2013. As of July 1, 2013, municipalities were again required to impose a n NRDF on new non-residential development. No NRDFs may be assessed against projects that received site plan approval prior to July 1, 2013, provided that a construction permit is issued by July 1, 2015.

If signed into law, the re-imposition of the moratorium would be an important albeit relatively short lived, benefit to non-residential developers.

© 2019 Giordano, Halleran & Ciesla, P.C. All Rights Reserved


About this Author

Michael A. Bruno Shareholder Giordano Halleran & Ciesla Real Estate Land Use & Development Law Corporate & Business Litigation Renewable Energy Affordable Housing Energy, Climate Change and Public Utilities Business and Banking

Mike, chair of Giordano, Halleran & Ciesla's Redevelopment practice area and co-chair of our Real Estate practice area, focuses his practice area on real estate transactions and approvals with an emphasis on redevelopment, planned residential development, affordable housing, and mixed use development. Mike represents and counsels companies and developers in every phase of real estate acquisitions, financing and development including redevelopment agreements and long and short term financial agreements and other state, regional and local agency financing programs available in connection...

Steven P. Gouin, Giordano Law Firm, Real Estate Attorney

Steve is a shareholder and member of the firm’s Real Estate and Renewable Energy practice groups. Across all aspects of his practice, Steve strives to provide clients with quick, efficient, and practical solutions to complex problems.

Steve regularly represents developers, investors, landowners, and other business interests before municipal planning and zoning boards across the state in connection with site plan, subdivision, and variance applications and other land use matters. He has a particular expertise in redevelopment matters, including redevelopment area designations, long-...