Bill > A5883

Introduced Session

This bill establishes the "New Jersey Impact Fee Act" to regulate the imposition and use of impact fees by municipalities for infrastructure improvements necessitated by the development of real property. The bill is intended to function as an alternative to the existing authority of municipalities to impose an impact fee, provided by the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.). The bill permits a municipality to adopt an ordinance to collect an impact fee for a development on the basis of recent, localized data, including population projections, traffic and transportation data, school enrollment forecasts, public safety and emergency response data, construction and land acquisition costs, and inflation and property value adjustments. The bill requires notice to be provided at least 90 days prior to the effective date of an impact fee ordinance that imposes a new or increased impact fee. The bill prohibits the amount of an impact fee required for a development from being altered after the date of issuance of preliminary approval. The bill requires an impact fee to be proportional and reasonably connected to the increased impact generated by the development. The bill requires contributions of land, infrastructure, and other contributions to be credited against an impact fee that would otherwise support the same infrastructure. The proceeds of an impact fee are to be assignable and transferable between municipalities and school districts that share services, have a sending-receiving relationship, or that have consolidated. The proceeds of an impact fee credit are to be assignable and transferable among developments in municipalities and school districts that share services, have a sending-receiving relationship, or that have consolidated. The bill requires impact fees for public school facilities to be segregated in a separate municipal account, and transferred upon request of the school board to the school district's capital reserve account. An impact fee ordinance adopted by a municipality pursuant to this bill may permit a developer to request an exemption or waiver from an impact fee, or a portion of an impact fee, for a development, in proportion to the benefit to the public provided by the development. In an action challenging an impact fee, or a municipality's failure to provide a required credit, a municipality is to have the burden of demonstrating, by a preponderance of the evidence, that the fee or credit is in compliance with the bill. An impact fee ordinance is to require the submission of an annual report to the Commissioner of Community Affairs (commissioner), to be published on the Internet website of the Department of Community Affairs, detailing the collection and use of impact fee revenues. The bill requires the commissioner to adopt rules and regulations to effectuate the provisions of the bill on or before the first day of the fifth month following enactment, on which date, the bill is to take effect.

AI Summary

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John Azzariti (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 06/25/2025)

Official Document