As developers we are sure you aware that the moratorium of the 2.5% nonresidential development (“COAH Fee”) established by the New Jersey Stimulus Act of 2009 expired on July 1, 2013. Since July 1st developers have been required to pay 2.5% of the increase in the equalized assessed value of the land and improvements caused by the completed development.
The New Jersey Legislature has just passed Bill A1907 which extends the moratorium to all nonresidential projects which 1) receive preliminary or final site plan approval prior to January 1, 2015; and 2) obtain a building permit prior to July 1, 2016. This moratorium is also applicable to all projects which were approved since July 1, 2013. Furthermore, any developer which paid the “COAH Fee” subsequent to June 30, 2013 but prior to the effective date of Bill A1907 is entitled to a return of those monies paid, provided 1) the monies have not been spent by the municipality on affordable housing projects; and 2) Bill A1907 does not permit the imposition of the COAH Fee.
Please note that Bill A1907 still needs to be signed by Governor Christie. However, our office wanted to give you an advance warning of these latest events. This is of particular importance to those that have already paid a COAH Fee and are entitled to a reimbursement. You will only have 120 days to contact the municipality, in writing, demanding reimbursement of your payment. We will update you as this legislation makes its way to Governor Christie’s desk. In the meantime, if you would like to further discuss this legislation or begin to prepare requests for reimbursement from certain municipalities, please feel free to contact our office.
– Andrew S. Kohut