By Michael Smith, Esq., LEEP, AP.
On November 28, 2011, the New Jersey Legislature introduced A-4367 — proposed legislation standing to lengthen the protection of the Permit Extension Act of 2008 (the “PEA”), for an additional 3 years (i.e.,until at least December 31, 2015, after which the running of the approval periods would resume for up to 6 months, until June 30, 2016).
By way of background, the Permit Extension Act automatically suspended the expiration of many (but not all) state, county and local permits and approvals, for an “extension period” intially lasting from January 1, 2007 through July 1, 2010. However, by a legislative amendment, the duration of that “extension period” was extended until December 31, 2012, after which, under current law, the running of the approval periods will resume for up to 6 months, until June 30, 2013.
With the introduction of A-4367, the Legislature is now proposing to extend (again) the duration of this so-called extension period until December 31, 2015. A-4367 stands to benefit all approvals that were extended by the Permit Extension Act. This proposal does not, conversely, stand to limit the scope of protection provided under the Permit Extension Act. » Read the rest of this entry «

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On June 29, 2011, Governor Christie issued Reorganization Plan No. 001-2011, that would, if not rejected within 60 days by the Legislature, abolish the Council on Affordable Housing (“COAH”) and transfer all responsibilities to the Department of Community Affairs (“Department”). The purpose of the plan “is to reduce the unnecessary complexity of affordable housing administration in New Jersey, lower the administrative costs associated with the present regulatory process, and streamline the development of new housing projects.” The plan transfers all functions, powers and duties to the Commissioner of the Department.
Today, the Appellate Division issued a decision invalidating the Council of Affordable Housing’s growth share methodology, commonly referred to as the third round rules. The Court provided the following conclusion:
As of July 1, 2010, the 2.5% fee on non-residential development is once again in effect. This 2.5 % fee was originally applied in 2008 with the enactment of the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1-8.7) and was later suspended as part of the New Jersey Stimulus Act of 2009. With the introduction of Senate Bill S-1, it was anticipated that the 2.5% commercial fee would be eliminated or removed from the affordable housing formula. S-1 passed the Senate in June, 2010 but has been held up by the House for further discussion. As we work through the affordable housing mess, developers and municipalities should be cognizant that the 2.5% non-residential development fee is currently in effect. This could and should change soon but as of July 1, 2010, the fee is no longer suspended. Stay tuned as these issues will be further reviewed and discussed this fall.

If adopted, a bill before the New Jersey Senate (S-1) will abolish COAH and reform the Fair Housing Act. The bill stands at second reading and can be voted upon at the next voting session in May 2010. If it is not amended, the bill will change the entire landscape of how affordable housing requirements are calculated and applied. With regard to nonresidential development, it will essentially eliminate affordable housing requirements. Here is the story:
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The New Jersey Senate and Assembly recently passed a bill (S-58: A-437) that overrides the “time of decision rule,” which has governed decision making under the Municipal Land Use Law for decades. 
