New Jersey Senate Bill S2508

New Jersey 2024-2025 Regular Session

• Introduced: 2/5/24
• Refer: 2/5/24

Caption

Authorizes municipal assessment of development impact fees following State guidelines and makes an appropriation.

Impact

The bill is designed to ensure that the burden of new development is borne by developers, specifically in terms of funding necessary infrastructure improvements such as transportation, water supply systems, and educational facilities. By enabling local governments to collect these fees, the legislation aims to create a more sustainable development environment that can accommodate growth without compromising existing public services. Additionally, it excludes low and moderate income housing from impact fees to avoid placing undue financial pressure on affordable housing developments.

Summary

Senate Bill S2508, known as the "Municipal Development Impact Fee Authorization Act," aims to authorize municipalities in New Jersey to impose development impact fees on property developers. The bill recognizes the unprecedented economic growth and subsequent development activities over recent years, which have increased the pressure on existing infrastructure and public services. It mandates that municipalities can only assess these fees if they have a valid capital improvement program and master plan in place, providing a structured approach to managing the funds collected through these fees.

Contention

Notable points of contention regarding S2508 arise from concerns about the potential consequences for housing affordability and development costs. Critics may argue that the imposition of impact fees could lead to increased costs for housing developers, which, in turn, might translate into higher housing prices for consumers. The bill also permits the establishment of a Development Impact Fee Review and Advisory Commission, tasked with overseeing and providing technical assistance for municipalities regarding the implementation of these fees. There is concern from various stakeholders about the adequacy of regulatory measures to prevent unreasonable fees that could further strain housing affordability.