New Jersey Land Use Law

The bill proposes an Urban Transit Hub Tax Credit Program, which would promote corporate capital investment and development near mass transit centers through a 100% tax credit to companies that invest at least $75 million and create or relocate at least 250 jobs near mass transit stations in nine urban municipalities.

The bill also seeks to revitalize local redevelopment by implementing a new Economic Redevelopment and Growth Grant Program, which would implement new financing mechanisms for redevelopment projects such as credits for future sales and business taxes as an alternative to traditional borrowing.

Perhaps the most important piece of the bill is a provision that would place a temporary moratorium on the 2.5% "affordable housing" fee that all nonresidential developers are responsible for paying under a state law established last year. The proposed bill would suspend the fee until July 1, 2010, provided that developers obtain preliminary site plan or subdivison approval by that date, and obtain building permits by January 1, 2013. Developers who previously paid the fee would be reimbursed. The proposed bill would also wipe away any affordable housing obligations incurred by municipalities as a result of nonresidential growth during the moratorium.

The bill now awaits Governor Corzine's signature, after which it will become law.