Bill Designed to Promote Economic Growth and Job Creation
(TRENTON) – Legislation Assembly Democrats John J. Burzichelli, Troy Singleton, Pamela R. Lampitt and Benjie E. Wimberly sponsored to reinstate a moratorium on nonresidential construction fees while the state economy continues to rebound was approved Monday by the Assembly.
The bill (A-1907) reinstates the moratorium on the imposition of fees on nonresidential construction projects that expired on July 1, 2013 and continues the moratorium through Dec. 31, 2014. Such fees fund affordable housing projects.
“We all support affordable housing, but we also must recognize that the state still struggles with high unemployment and paltry economic growth,” said Burzichelli (D-Gloucester/Salem/Cumberland). “This moratorium is the right thing to do until we’re confident the economy has rebounded and we’ve created enough jobs to sustain the recovery.”
“Job creation and overall economic growth have to be top priorities right now,” said Singleton (D-Burlington). “This is not the time for more fees that can reduce business confidence, cost the state jobs and slow economic development.”
“We must continue our focus on creating jobs and growing our economy,” said Lampitt (D-Camden/Burlington). “This is sound public policy designed to spark expanded economic growth that would benefit working class residents struggling to make ends meet. It’s the right thing to do.”
“While affordable housing is critical for many New Jersey residents, we have to keep in mind the positive impact this bill can have for low-income families,” said Wimberly (D-Passaic/Bergen). “Rolling back these fees will ease a burden on the construction industry and allow developers to create jobs that will ultimately put our residents back to work.”
Under the provisions of the bill, municipalities must return any fees collected between July 1 and the effective date of the legislation. However, municipalities eligible to collect nonresidential development fees would not be required to refund monies already spent on affordable housing projects.
The statewide nonresidential development fee serves to raise revenue for the construction and rehabilitation of affordable housing. Current law requires the first $20 million from the state portion of fee revenues to be deposited into the Urban Housing Assistance Fund for the purpose of assisting urban municipalities with the rehabilitation and production of housing.