Bill > S4379

This bill replaces the fixed interest rate method for calculating interest in eminent domain cases with a more flexible approach that gives courts greater discretion in determining appropriate interest rates. Under current law, interest rates in certain eminent domain proceedings were either fixed at 6% or set at a standard "legal rate." The bill modifies multiple existing statutes to require courts to determine interest rates in a summary manner after the final determination of compensation. When making this determination, courts may consider various factors, including prevailing commercial interest rates, prime rates, applicable legal interest rates, and an appropriate rate that fairly compensates the property owner for the loss of use of their compensation. The goal is to create a more nuanced and context-specific method for calculating interest that better reflects current economic conditions and ensures just compensation for property owners whose land is taken through eminent domain. The bill applies this new interest rate calculation method across different types of governmental entities and condemnation proceedings, including those conducted by municipalities, counties, state authorities, and other public bodies.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S4379