Governor Corzine Signs Economic Stimulus Bill Eliminating 2.5% Non-Residential Development Fee
By: Henry T. Chou, Esq.
On July 27, 2009, Governor Corzine signed into law an economic stimulus bill (A-4048/S-2299) aimed at reinvigorating the real estate development industry through innovative tax incentives and fee moratoriums, among other measures.
The bill establishes an Urban Transit Hub Tax Credit Program, which will 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.
It will also attempt to revitalize local redevelopment through a new Economic Redevelopment and Growth Grant Program, which implements 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 imposes 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 fees may be entitled to a reimbursement of a portion of paid fees in certain circumstances. The proposed bill also wipes away any affordable housing obligations incurred by municipalities as a result of nonresidential growth during the moratorium.
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This has been really interesting but how do I bookmark this? I tried Digg but do I have to sign up first?
Posted by: Corporate Housing | January 9, 2010 01:20 AM