New law expedites construction permit process in NJ

During an event surrounded by lawmakers, leaders and other stakeholders Jan. 5, Gov. Phil Murphy signed legislation that makes changes to the Uniform Construction Code (UCC) Act in an effort to speed up the state’s construction permitting and inspection process.

Assembly Bill 573, which brings the Garden State in line with several others, codifies a three-day construction inspection turnaround from the date it is requested.

If local officials are unable to complete the inspection within that time frame, builders would be permitted to use private, on-site inspection agencies. Ultimate approval and certificate of occupancy, though, will still come from local construction officials.

“Today’s bill signing will speed up the construction permitting process, making sure that developers are able to complete their projects without delay,” said Murphy.

The measure also offers more tools to help local governments expedite inspections, such as a streamlined bidding process to contract with private inspection agencies or by consolidating the work among municipalities through a shared services agreement.

The signing of the legislation was applauded by business organizations around the state, including the New Jersey Business & Industry Association (NJBIA) and the New Jersey Chamber of Commerce, who each thanked leaders and lawmakers – especially the bill sponsors – for their support in getting the measure across the finish line.

“This law provides a more expeditious process for obtaining construction inspections, which is greatly needed to avoid unnecessary delays for certificates of occupancy,” said NJBIA President and CEO Michele Siekerka in a statement. “As we know, building a home or development can be expensive and time consuming. Delays caused by the inability to obtain local inspections only drive up those costs. This law will help eliminate some of these delays by establishing an expedited program to ensure inspections are done within three business days.”

NJ Chamber President and CEO Tom Bracken noted that his organization advocated for the bill because it streamlines the inspection, which ultimately benefits economic development efforts in New Jersey.

“Economic development projects in New Jersey are often subject to lengthy delays because municipalities may not have the resources to turn-around construction inspections in a timely manner,” said Bracken in a statement. “This unfairly stalls projects and increased costs for developers. In the meantime, towns and cities miss out on the much-needed tax revenue that result from completed projects. Today’s action eliminates an impediment to economic development that results in our state becoming more business-friendly and helps in our quest to improve our competitiveness.”

“We look forward to more successful collaborations between the Murphy Administration’s new permitting and regulatory group and the business community as we continue to encourage other ways to bring relief from other similar types of avoidable burdens,” Siekerka added.

“We thank Gov. Phil Murphy for signing A573 and the bill sponsors (Karabinchak, Freiman, Calabrese, Greenwald, Scutari, Diegnan) for tackling this important issue,” Bracken added. “We especially thank the prime sponsor, Assemblyman Robert Karabinchak, for his diligent work with all the stakeholders and his expertise and guidance on this important issue.”

“By codifying the required three-day inspection turnaround, we ensure things can move along expeditiously,” said Karabinchak, D-18th District. “Right now, three days is the standard but because it’s not set in stone; it’s often ignored and at the expense of a business or contractor experiencing costly delays.”

Jeff Kolakowski, CEO, New Jersey Builders Association, said that this collaborative process is a prime example of good governance and how the public and private sectors coming together to find a sensible solution to a problem that has long plagued the Garden State.

“The bill signed today will foster a more efficient system of handling building code inspections that will result in a more affordable housing market, revitalized economic strength, and additional career and business opportunities in the construction industry,” said Kolakowski.

Affordable housing help

Also, during the ceremony, Murphy and Lt. Gov. Sheila Oliver announced the awarding of more than $19 million to 17 organizations around the Garden State through the Affordable Housing Trust Fund (AHTF), National Housing Trust Fund (NHTF), and the HOME Community Housing development Organization (CHDO) Production Program.

“The over $19 million investment will aid in the completion of 79 affordable housing units across our state,” said Murphy. “These steps will bring us closer to providing quality and affordable homes to our residents.”

The awards were given to smaller projects, sized at 25 units or fewer, which often have difficulty with financing.

The state says that these projects will help fill gaps within the existing affordable housing framework and are being developed by community-based organizations that are well-tuned to the housing equity issues in their own communities.

Oliver says that she and the governor are committed to addressing the shortage of affordable housing here in the Garden State.

“We are contributing significant funding for these projects, which will create decent, stable housing throughout the state that is affordable and accessible,” said Oliver. “Through this investment, we will strengthen neighborhoods, create more diverse communities and stimulate economic development.”