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Economic Stimulus and COAH Update!
On June 25th, both houses of the New Jersey Legislature passed the "New Jersey Economic Stimulus Act of 2009" by wide margins! The bill is awaiting the Governor's signature. The 2009 Stimulus Act is a comprehensive measure aimed at assisting the development community while providing much needed stimulus to New Jersey's economy. Of significant interest is the fact that the 2009 Stimulus Act includes sweeping changes to the "Statewide Non Residential Development Fee Act" (the "2008 COAH Fee Act") which has imposed a 2.5% affordable housing tax on most non-residential development for the past year.
Gibbons In-Sites Alerts have previously advised of a possible moratorium exempting non-residential developers from the 2.5% Affordable Housing Fee (COAH Fee) in legislation that has been pending since early January. In the last few weeks, that legislation was wrapped into the more comprehensive 2009 Stimulus Act with the result that upon the signing of the 2009 Stimulus Act by the Governor, non-residential development projects are:
- Exempt from payment of the 2008 COAH Fee where the project receives preliminary or final site plan approval before July 1, 2010 and obtains a building permit prior to January 1, 2013;
- Entitled to a refund of most fees paid pursuant to the 2008 COAH Fee Act;
- Entitled to a refund of increased fees paid by projects approved prior to, but granted certificates of occupancy after, the 2008 COAH Fee Act took effect;
- Free of the imposition of municipal affordable housing fee ordinances, since the 2009 Stimulus Act specifically continues this prohibition.
The Gibbons Real Property & Environmental Department and the Gibbons Government Affairs Department worked together with the Bill's sponsors to ensure that key refund provisions were included in this Legislation. This effort will maximize the benefits of the 2009 Stimulus Act particularly with respect to the refunding of the 2.5% COAH Fee payments already made under the 2008 Fee Act.
Additional development stimulus adopted in the 2009 Stimulus Act include a streamlined redevelopment grant program, Urban Transit Hub Tax Credits, opportunities for expansion of higher education facilities, and provisions for bonding in State Plan areas. Watch for future Gibbons In-Sites articles on these important development opportunities.
Since the 2.5% COAH Fee refunds must be claimed within 120 days of the effective date of the 2009 Stimulus Act, we will continue to monitor the Bill's signing and provide the information and assistance necessary to claim the refunds.
Please contact us if you have any questions or comments.
Douglas J. Janacek, Esq.: djanacek@gibbonslaw.com
Nancy A. Lottinville, Esq.: nlottinville@gibbonslaw.com
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