New Jersey Assembly Bill A5010

New Jersey 2024-2025 Regular Session

• Introduced: 11/14/24
• Refer: 11/14/24

Caption

Requires SADC and any local board acquiring farmland for preservation purposes to provide partial payment to landowner, in advance of settlement, to demonstrate good faith intent to proceed with settlement and acquisition.

Impact

The enactment of A5010 will amend existing laws pertaining to farmland preservation in New Jersey. By establishing a policy for advance payments, the bill aims to strengthen the process of acquiring farmland while reassuring landowners of the government's serious intent to facilitate these transactions. This could lead to increased participation from landowners in farmland preservation programs, as the financial commitment demonstrated by the advance payment might make selling development easements more appealing. The bill also stipulates that any advance payment is deductible from the final purchase price, thus ensuring that it does not result in additional financial burden to the state or local entities involved.

Summary

Assembly Bill A5010 requires the State Agriculture Development Committee (SADC) and any local boards involved in acquiring farmland for preservation to provide a partial payment to landowners in advance of settlement. This advance payment is intended to demonstrate a good faith intention to proceed with the acquisition of development easements or fee simple titles. Specifically, the bill mandates that upon receipt of a completed application from a landowner seeking to sell farmland, the committee or board must award and disburse an advance payment that amounts to 20 percent of the appraised fair market value or the final negotiated purchase price of the land, whichever is greater. The payment is to be made before settlement takes place, which serves as a commitment to finalize the acquisition.

Contention

Notably, the bill contains provisions that could lead to disputes regarding repayment obligations. If a purchase agreement is voided or the settlement does not occur, the landowner is required to repay the advance payment. This aspect has the potential to become a point of contention among stakeholders. Furthermore, the bill introduces mechanisms for debt recovery, stating that any unpaid advance payment could result in a lien against the landowner's properties, further complicating the process should disputes arise. The implications for landowners regarding potential financial liabilities associated with these advance payments may lead to concerns about the risks involved in entering such agreements.