On Aug. 24, Acting Gov. Kim Guadagno signed legislation that extends the moratorium on the imposition of fees on non-residential construction projects until July 1, 2013.
According to a press release from the governor’s office, this moratorium sends another signal to businesses seeking to invest in New Jersey that Gov. Chris Christie’s administration is working to create a positive, pro-growth environment and restore predictability to the commercial real estate industry.
“Suspending this onerous and arbitrary fee is yet another example of how this administration is focused on creating meaningful and sustainable jobs and giving a much needed boost to the state’s economy,” Guadagno said.
“By taking action today, we are making it easier for commercial developers to invest in New Jersey, create jobs and help us build on the positive, early progress we have made in returning our state to prosperity and affordability,” she said. According to the press release, the statewide non-residential development fees were enacted as part of revisions to the Fair HousingAct and Municipal Land Use Law. The 2.5 percent fee was charged to office, commercial and industrial real estate developers to help municipalities meet affordable housing obligations.
A moratorium of the non-residential fee requirement was initially placed on the imposition of fees until July 1, 2010, pursuant to the Economic Stimulus Act of 2009.
“With the economy still very much in flux, the suspension of the non-residential development fee will assist New Jersey’s non-residential real estate to get back on track, produce the jobs, taxable revenue and ratables this state desperately needs,” said New Jersey Department of Community Affairs Commissioner Lori Grifa, who oversees affordable housing development efforts.