By Amy Batista, Special Writer
The Planning Board has recommended the Borough Council amend its tax exemption regulations to benefit homeowners who rehabilitate their homes.
The New Jersey “Five-Year Exemption and Abatement Law” permits municipalities to adopt an ordinance to grant, for periods of five years, exemptions from taxation relating to the construction and/or rehabilitation of certain structures within an area of the municipality delineated to be an “area in need of rehabilitation,” according to the draft ordinance the Planning Board will recommend to the Borough Council.
“This encourages someone to come in and buy a house that has been sitting there,” Councilman Charles “Lee” Stults, who is the council’s liaison to the Planning Board, said.
Mayor Larry Quattrone explained the house would still receive a tax bill but any improvements would be tax exempt for a five-year period.
Borough Planning Board Attorney Gary Rosensweig said there are residential properties that need rehabilitation.
Councilman Steven Misiura proposed the amendment at a prior council meeting and requested it be passed along to the Planning Board for review and discussion.
Planning Board Chairman Fred Montferrat asked if the draft ordinance is being modeled after any other in the county or state.
Councilman Stults said it is being modeled after similar ordinances, such as one adopted in Jamesburg.
“What Jamesburg did is they determined their entire town as an area in need of redevelopment, which then allowed for folks to pursue the five-year tax exemption rehabilitation because the entire town fell under that area and anyone can do it,” he said.
Borough Planner Tamara Lee said, “My observation in reading this was that the entire town is going to be labeled as an area in need of rehabilitation but only the residential areas get the benefit of that,” she said.
Councilman Stults said, “It works in some towns but if it doesn’t work there is no harm that I know of that the town itself being designated as an area in need of rehab.”
Planning Board member Ron Hansen asked if there is a financial impact.
Mayor Quattrone and Councilman Stults said no.
“People aren’t doing the work, is what we are finding, so this is being seen as a motivational aspect,” Councilman Stults said.
The draft ordinance states that the mayor and council believe that the establishment of a program to grant exemptions from taxation relating to the rehabilitation of existing residential dwellings within the borough, for periods of five years, will constitute an effective tool to promote rehabilitation of the borough’s existing housing stock, and therefore that the program will benefit the residents of the borough.
Planning Board member Dimitri Musing said he would like to see renovations in town.
“There are a lot of great homes here and I think a lot of these homes can be had at a great price right now, so encourage people to put the money and rehab into the homes,” he said.
