REAL rules delay draws praise, criticism in New Jersey

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The basics:

• Builders and business groups welcome New Jersey REAL rules delay
• Environmental advocates criticize one-year extension
• Supporters cite housing affordability, permitting concerns
• Opponents warn of increased flooding, climate risks

Many industry players went into the weekend breathing a sigh of relief with the state seeking to extend legacy provisions for the Resilient Environment and Landscapes – or REAL – rules for one year.

While trade associations have highlighted much of the package as a burden that would hinder economic development, environmentalists continue to sound the alarm about the need to adapt to a changing climate. The New Jersey Department of Environmental Protection published the proposed extension to the New Jersey Public Register June 1. The move would extend the REAL rules legacy period until July 20, 2027.

Revealed May 29, this yearlong extension would allow stakeholders from all sides of the matter, along with the public, to work with the NJDEP and the governor on the regulations.

Part of the NJ PACT, or Protecting Against Climate Threats, the REAL rule applies to construction (new development, redevelopments or substantial improvements) across residential, commercial and infrastructure that are regulated by four sets of New Jersey rules:

• Coastal Zone Management
• Freshwater Wetlands Protection Act
• Stormwater Management
• Flood Hazard Area Control Act

Proponents of the pause highlighted the adverse impacts they say the REAL regulations would have brought to affordability, housing development and streamlining permitting.

Climate, community & construction concerns

For certain lawmakers, the move also aims to rectify seeming misdirection from the prior gubernatorial administration.

In February, the introduction of a bipartisan resolution in the state Legislature sought to address concerns the NJ PACT rules, as adopted, conflicted with legislative intent. Sponsors particularly noted the potential impacts for residential projects.

Senate President Nicholas Scutari, D-22nd District, and state Sen. Paul Sarlo, D-36th District, issued a joint statement May 29 welcoming the delay in implementation.

“As previously written, the regulations … would have increased the cost of housing, created barriers for homeowners, hindered redevelopment and stifled economic growth,” the lawmakers stated, later adding, “For many families and businesses, improvement projects could have become unmanageable and financially out of reach. That can now be prevented.”

New Jersey Builders Association CEO Jeff Kolakowski commended the move.

“You cannot solve a housing crisis by making it harder to build housing,” he said. “Diverse stakeholders raised important concerns about the rule’s impact … This review creates an opportunity to ensure New Jersey’s climate resilience policies are effective while still allowing communities to grow and provide housing opportunities for current and future residents.”

In March, attorneys from Giordano Halleran & Ciesla PC filed an appeal to stop the regulations from taking effect on behalf of NJBA and the New Jersey Business & Industry Association.

NJBIA also celebrated the stay, last week. Deputy Chief Government Affairs Officer Ray Cantor said his group looks forward to collaborating “on practical and pragmatic solutions.”

Weathering the impacts

In a May 29 message to its membership, NAIOP NJ also commended the “decisive leadership” on this issue. “The commercial real estate industry … would view this delay as a critical opportunity to right-size what the organization considers an over-the-top regulatory action into a workable set of solutions …”

On the other end of the spectrum, environmental groups have raised concerns about the costs of postponing or diluting NJ PACT and REAL regulations.

New Jersey League of Conservation Voters interim Executive Director Allison McLeod said the group is “deeply troubled by any decision to delay implementation.” It also said the move would raise costs for families and local businesses.

“We have the opportunity to not only dramatically reduce insurance costs, but to also limit the devastating emotional and financial toll of rebuilding after the severe storms we unfortunately know will come,” McLeod noted.

A recent report identifies New Jersey as first in the U.S. when it comes to flood damage per square mile.

And, according to the National Oceanic and Atmospheric Administration (NOAA), the Garden State has experienced 75 confirmed weather/climate disaster events with losses in excess of $1 billion each from 1980–2024. Severe storms lead most incidents from 2018 onward, with winter storms, flooding, tropical cyclone and drought also featured in the mix.

In a piece for The Jersey Vindcator, longtime advocate Jeff Tittel characterized the delay as “a victory for flooding, overdevelopment, and disaster.”

“Right now, New Jersey is treading water,” the former director of the New Jersey Sierra Club wrote.