On January 8, the New Jersey Legislature passed bill S3499/A5250 (the bill), which amends the sewer and water connection fee law in several ways to address existing inequities regarding connection (or tapping) fees. The bill establishes certain credits for and reductions in sewer and water connection fees, including those for all affordable housing.
New Jersey sewer and water laws have frustrated developers for many years because they are outdated and charge connection fees based on math that is not very transparent. Sewer and water connection fees are typically an important line item in a developer's pro forma. Both residential and commercial developers will welcome this bill if it is signed into law.
Most notably, under the existing statute, public housing authorities and nonprofit organizations (but not for-profit developers) building affordable housing projects were entitled to a 50 percent reduction in sewer and water connection fees for connecting new units to the sewer and water system. The bill amends this section of the statute to expand to all affordable housing (including that built by for-profit developers) the 50 percent reduction in new connection fees and the credit against the connection fee for affordable units previously connected to the sewer and water system that were demolished or refurbished.
Additionally, the bill generally allows credits to be applied to connection fees for reconnection of certain disconnected properties that were previously connected to the sewer or water system for at least 20 years and have not been disconnected for more than five years. The credit is calculated based on several factors, including but not limited to whether the reconnection does not require any new physical connection, increase the nature or size of service, or expand the use of the system or whether a connection fee was previously paid for the existing use.
For properties already connected to the sewer and water system, the bill allows local or regional authorities to charge a new connection fee for an addition, alteration or change in use that "materially increases" (as defined in the bill) the level of use and imposes a greater demand on the utility system but does not involve a new physical connection of the property to the system. The connection fees for any new or additional connections are still imposed.
This bill, if signed into law, would be a first step in addressing some of the shortcomings of the existing sewer and water laws. This alert only summarizes the bill. For more information or questions as to the status of the bill, please contact Craig M. Gianetti, Nicole M. Magdziak or any member of the Day Pitney real estate team.
Day Pitney Real Estate, Environmental and Land Use practice co-chair Craig Gianetti was featured in Law360 article "NJ Bill Paves An Aggressive Affordable-Housing Path."
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The arrival of Steven Wernick and Joseph Ruiz of Wernick & Co to Day Pitney's Miami office was featured in Miami Today's People column. Wernick and Ruiz are joining the firm's real estate, environmental and land use practices as a partner and counsel. Wernick & Co. built its reputation in the Miami area through experience in land use and zoning.
The Day Pitney Real Estate, Environmental, and Land Use Team, led by practice co-chair Katharine Coffey, represented the developers Russo Development, Onyx Equities LLC, and Dinallo Development LLC/Terminal Construction in connection with multiple transactions facilitating the development of Hackensack Meridian Health's $200 million, first-of-its-kind health care facility at Metropark, a mass transit hub in Woodbridge, NJ.
The arrival of Miami Attorneys Steven J. Wernick and Joseph Ruiz was featured in The Real Deal's Movers and Shakers column. Wernick, who joined as a partner, previously founded Wernick & Co, a Miami-based law firm specializing in land use and urban redevelopment.
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The announcement of Day Pitney's most recent step in its commitment to strategic growth in South Florida by adding Steven Wernick and Joseph Ruiz of Wernick & Co. to its Miami office was featured in CityBiz.
Day Pitney Real Estate Partner Steven J. Wernick is featured in the Law360 article, "Revisions Show Fla.'s Dedication To Affordable Housing Law."
The arrival of Miami Real Estate and Land Use Attorneys Steven J. Wernick and Joseph Ruiz were featured in a Law360 article. Wernick and Ruiz joined from Wernick & Co, a land use boutique noted for numerous development projects in Miami's arts-focused Wynwood neighborhood.
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