Bill

Bill > S3228


NJ S3228

NJ S3228
Enhances transparency in exercise of municipal redevelopment powers.


summary

Introduced
02/02/2026
In Committee
02/02/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill would make procedural modifications to the process through which municipalities exercise redevelopment power. First, the bill would require that municipalities act by ordinance rather than resolution in acting under the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.). This would require a more elaborate publication and hearing process than that which is required when a municipality acts by resolution. The bill enhances notification requirements under this law. Under current law, when a municipal governing body designates properties within a redevelopment area, it is required to authorize the planning board to undertake a preliminary investigation to determine whether the proposed area fulfills those criteria which the law establishes in order to be so designated. Although the current law does provide for notification when an area is to be designated, the hearing notice is only required to set forth the general boundaries of the area to be investigated and notice that the map shall be made available at the office of the municipal clerk. Property owners in the proposed redevelopment area are to be notified by regular mail, under the current law, with no information to be provided as to what a redevelopment designation means. This bill would require that the hearing notice clearly delineate the properties which are to be included in the redevelopment area and that notice to property owners be provided by certified mail. In addition, the bill requires that a Public Advisory Statement be sent to every property owner within the redevelopment area as part of the required notification and prescribes the content of this statement. The purpose of this Public Advisory Statement is to explain to property owners within the redevelopment area that municipalities are granted broad powers to facilitate economic development within redevelopment areas, which includes the power to exercise eminent domain. Additionally, the notification is designed to inform property owners of their recourse in this situation and who to contact for further information. The bill requires both the planning board and municipal governing body to hold public hearings on the redevelopment plan, which is required to be prepared before a municipality is authorized to undertake a redevelopment project under existing law. In addition, the bill requires that property owners within the designated redevelopment area be provided with certified mail notice in advance of the public hearing held by the municipal governing body. Under current law, the redevelopment plan is to be adopted by ordinance and the municipality is only required to provide that notice associated with the adoption of an ordinance under general law. Under current law, when the governing body originates the redevelopment plan, it is required to transmit a copy of the proposed redevelopment plan to the planning board for recommendations and an analysis of the consistency of that plan with the municipal master plan. The law gives the planning board 45 days within which to report back to the governing body. Given the addition of a mandatory public hearing process by this bill, this 45 day review period is extended to 90 days. Current law authorizes municipalities to lease or convey property or improvements "without public bidding and at such prices and upon such terms as it deems reasonable." By removing this exception from public bidding and vague language deferring to the municipality as to the establishment of a price for such property or improvements, this bill would require open public bidding and, thereby, the establishment of a market price through a transparent transaction process.

AI Summary

This bill enhances transparency and procedural safeguards in how municipalities exercise their redevelopment powers under the Local Redevelopment and Housing Law. Key provisions include requiring municipalities to act by ordinance, which necessitates more extensive public notice and hearings, instead of by resolution. It mandates that notices for public hearings clearly delineate the properties within a proposed redevelopment area and be sent to property owners via certified mail, accompanied by a "Public Advisory Statement" explaining the municipality's broad redevelopment powers, including eminent domain, and informing owners of their rights and contacts for more information. The bill also extends the review period for the planning board's analysis of redevelopment plans and requires both the planning board and the municipal governing body to hold public hearings on these plans, with certified mail notice to property owners before the governing body's hearing. Furthermore, it removes an exception that allowed municipalities to lease or convey redevelopment property without public bidding, now requiring open bidding to ensure market-driven pricing.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/02/2026)

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