In an effort to stimulate the construction and real estate development industries, acting Gov. Kim Guadagno today signed into a law a bill extending a moratorium on a fee designed to fund affordable housing.
The 2.5 percent fee, which is applicable to nonresidential projects, is now being delayed until July 1, 2013. The moratorium on the fee originally was instituted in 2009, but ended July 1 of last year. Developers who paid the fee from 2010 until now will have the ability to “clawback” any funds not spent.
“By taking action today, we are making it easier for commercial developers to invest in New Jersey; create jobs; and help us building the positive, early progress we’ve made in returning our state to prosperity and affordability,” Guadagno said in an announcement.
Day Pitney LLP attorney Jeffrey Kantowitz said the bill is a victory for the business community.
“In a bigger picture … you could make the argument that in this difficult economic time, and anything that spurs business and business development in this state is good for everybody,” he said.
The moratorium was part of legislation drafted last year that would reform the affordable housing rules, but that legislation was vetoed by Gov. Chris Christie. The current version of the moratorium was passed unanimously in both houses of the state Legislature.