GREENWALD/CRYAN 'PERMIT EXTENSION ACT'ADVANCES IN ASSEMBLY HOUSING PANEL

GREENWALD/CRYAN 'PERMIT EXTENSION ACT'ADVANCES IN ASSEMBLY HOUSING PANEL
Measure Would Extend Building Permits For Six Years, Part of Stimulus Package to Help Business and Keep New Jersey Competitive

(TRENTON) - The Assembly Housing and Local Government Committee today released legislation Assemblymen Louis Greenwald and Joseph Cryan sponsored that would extend for six years the life of building permits for commercial and residential development projects stalled by the possible lack of funding or revenues due to the current economic downturn.

The Permit Extension Act (A-2867) would extend all permits and approvals granted to businesses by state and local governments.

"Businesses struggling to survive the current economic slowdown shouldn't be forced to use limited vital resources to apply for new permits," said Greenwald (D-Camden). "Businesses will continue to simply up-and-leave and take jobs with them without this relief. It is important for New Jersey to stay competitive with neighboring states like Massachusetts and Pennsylvania, where are businesses are going."

An increasing number of permits are scheduled to expire due to inability of the banking, real estate and construction industries to obtain financing in the current economic downturn. The lapse of the permit approvals could cause a decline in the value of real estate involved in the projects and require a reclassifications of loans.

"The expiration of permits can have a devastating impact on our building and construction industries and the thousands of jobs they support," said Cryan (D-Union). "Without this relief, it could cost business tens of millions of dollars for re-permitting. Allowing already approved projects to go ahead once the economy turns around will send a strong message to businesses that we want them to stay in New Jersey."

The measure would stop the clock automatically on the expiration of building approvals granted after Jan. 1, 2006. The measure would provide projects permitted in past years but stalled for financial reasons an exemption from changes in environmental law, public health standards, building codes, or local zoning made after the permit was granted.

The legislation is backed by a coalition of a dozen business groups including the International Council of Shopping Centers, the Commerce and Industry Association of New Jersey, the New Jersey Builders Association, and the National Association of Office and Industrial Properties.

Business leaders say the measure is needed to counter the current economic emergency in the state and the nation.

The measure also is sponsored by Assembly members Joseph Malone (R-Burlington), Peter Biondi (R-Somerset), and Alison McHose (R-Sussex).

It is similar to legislation passed in the early 1990s to help the state economy after the recession at the turn of that decade.

The bill would extend all government permit approvals until Dec. 31, 2012. It would not apply to:

·        Any permit issued by the federal government;

·        Any permit or approval issued pursuant to the "Pinelands Protection Act,"  if the extension would result in a violation of federal law;

·        Any approval granted under the "Municipal Land Use Law" involving a residential development where the master plan and zoning ordinance have been amended to rezone the property to industrial or commercial use subsequent to the expiration of the permit but prior to Jan. 1, 2005, when the permit was issued for residential use;

·        If an approval was based upon the acquisition of a hookup to a sanitary sewer system, the approval's extension would be contingent upon the availability of sufficient capacity to accommodate the development.

The Assembly panel released the measure in a unanimous yes vote of 6-0. It now heads to the Assembly Environment and Solid Waste Committee for further review.

- 30 -