New Jersey Assembly Bill A137

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Repeals "Statewide Non-Residential Development Fee Act."

Impact

The proposed changes in A137 are likely to influence how municipalities manage development fees and their associated responsibilities towards housing obligations. Currently, municipalities must collect and allocate these fees to support community housing efforts. With the repeal, municipalities may have more autonomy regarding development but could also lose a significant funding source that was intended for affordable housing projects. This could lead to a gap in financing for future housing developments designed to meet the needs of low and moderate-income families.

Summary

Assembly Bill A137 aims to repeal the Statewide Non-Residential Development Fee Act, which established a statewide fee for non-residential development. This fee, set at two and one-half percent of the assessed value of land and improvements for new non-residential construction, was designed to support affordable housing initiatives across New Jersey. By repealing this act, the bill seeks to relieve municipalities from the obligation of collecting this fee, thus altering the financial landscape for non-residential development projects, and potentially impacting the funding available for affordable housing initiatives in the state.

Contention

There is likely to be contention surrounding the bill, as proponents may argue that it allows local governments greater flexibility in managing development without the burden of statewide regulations. However, opponents could raise concerns about the implications for affordable housing access, especially for vulnerable populations that rely on these initiatives. The repeal of the fee might limit the resources needed to subsidize affordable housing projects, thus exacerbating housing challenges in municipalities across the state.