Legislature Adopts Bill to extend the “Permit Extension Act of 2008”
By Michael J. Lipari, Esq.
As the economic recession continues, the New Jersey Legislature took another proactive and necessary measure to aid builders and developers struggling to save approvals for jobs that are not currently able to proceed. On January 11, 2010, both houses passed legislative bill A-4347 that extends certain permits and approvals that were subject to the Permit Extension Act of 2008 (“PEA”) through 2012.
The PEA applies to extend or “toll” such permits that otherwise lapsed on or after January 1, 2007 and extend them through at least July 1, 2010, and possibly up to six months thereafter as well, depending on applicable tolling periods. If A-4347 becomes law, it would extend the PEA from July 1, 2010 to December 31, 2012, with no approval to be tolled beyond June 30, 2013.
This controversial bill has been met with opposition from various groups, and is awaiting a signature from the Governor. If signed, it would alleviate a substantial burden on builders and developers who have obtained permits and approvals, but are unable to obtain financing in this economic climate.