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S2960 SBA Statement 6/28/26
SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE,
No. 2960
with
committee amendments
STATE
OF NEW JERSEY
DATED:
� JUNE
28, 2026
����� The Senate Budget and Appropriations Committee reports
favorably and with committee amendments Senate Bill No. 2960.
����� As amended and reported, this bill establishes a
program to incentivize municipalities to amend their master plans and
development regulations by incorporating certain housing strategies for the
purpose of enhancing the development potential of property for residential
purposes at greater densities.
����� Under the bill, the governing body of a municipality
that is interested in qualifying for preferential status in the distribution of
financial assistance competitively awarded by the State pursuant to the bill
may direct the municipal planning board to undertake and provide for a special
reexamination of the municipality�s master plan and development regulations.� A
planning board directed to undertake and provide for a special reexamination of
the municipality�s master plan and development regulations is to, at a minimum,
review the provisions of the municipality�s existing master plan and
development regulations that address areas of the municipality within which
residential development is permitted, and is authorized to consider
recommending specific changes to the master plan and development regulations
for the purpose of enhancing the potential development of the municipality for
residential purposes.� The bill provides that a planning board undertaking a
special reexamination of the municipality�s master plan and development
regulations is also authorized to consider whether to include in the master
plan and development regulations one or more housing strategies that may
enhance the development potential of property for residential purposes at
greater densities.� The bill identifies housing strategies to potentially be
considered by a planning board conducting a special reexamination.
����� A planning board that has undertaken a special
reexamination of the municipality�s master plan and development regulations is
required to prepare and adopt by resolution a report on the findings of the
special reexamination, a copy of which is to be sent to the Division of Local
Planning Services in the Department of Community Affairs (DCA), the Office of
Planning Advocacy, and the county planning board.
����� If a special reexamination report recommends changes
to a municipality�s existing master plan, the bill requires the planning board
to forward its recommendations to the governing body, which is to, by
resolution, accept, reject, or modify the recommendations and direct the
planning board to commence the process of amending the master plan.� This
procedure requires the planning board to hold a hearing on the proposed
amendments after providing public notice of the hearing.
����� If a planning board amends a master plan pursuant to
the bill, the governing body of the municipality is authorized to commence the
process of amending the municipality�s zoning ordinance for the purpose of
making the ordinance substantially consistent with the land use plan element
and the housing plan element of the municipality�s master plan.
����� The bill provides that, within 45 business days
following the date of adoption of any revisions to the municipality�s zoning or
other land development ordinances, the clerk of the municipality is to transmit
copies of the ordinances to the Division of Local Planning Services in the
DCA.� If a municipality has already adopted ordinances substantially similar to
the bill�s requirements, the municipality is to transmit copies of the
ordinances to the Division of Local Planning Services in the DCA for evaluation
in preferential status determinations.
����� The bill directs the DCA to establish a preference in
the award of State financial assistance for those municipalities that have
amended their development regulations pursuant to the bill to allow for the use
of additional housing strategies and have reasonably increased the rate of
housing units permitted for development.� The preference is to apply to all
types of competitively-awarded financial assistance that the DCA may distribute
to one or more municipalities pursuant to a program administered by the DCA,
other than a program that awards funds to help a municipality fulfill its fair
share housing obligation.� The bill specifically identifies the Neighborhood
Preservation Program, established pursuant to P.L.1975, c.248 (C.52:27D-142 et
seq.) as State financial assistance programs subject to the bill�s provisions.�
Funds awarded under the Transitional Aid to Localities program or any successor
discretionary aid program pursuant to P.L.2011, c.144 (C.52:27D-118.42), as
Consolidated Municipal Property Tax Relief Aid, or as Energy Tax Receipts
Property Tax Relief Aid are not to be considered a type of
competitively-awarded financial assistance under the provisions the bill.
����� Additionally, the bill directs the DCA to publish on
the DCA�s Internet website a list of municipalities that have amended their
development regulations pursuant to the bill to allow for the use of additional
housing strategies and have reasonably increased the rate of housing units
permitted for development in the municipality.� The DCA is to, in a manner
determined by the DCA, order the municipalities within three tier categories
based on the impact of, and the amount of changes made, relative to their planning
area.� The DCA is required to update the list on a quarterly basis.� Each State
agency that awards a grant or other type of competitively-awarded financial
assistance to municipalities is to utilize this list to establish an award
preference for those municipalities that have amended their development
regulations pursuant to the bill to allow for the use of additional housing
strategies and have reasonably increased the rate of housing units permitted
for development within the municipality.
����� The bill directs the DCA to adopt rules and
regulations, as specified in the bill, and as the DCA deems necessary or
desirable to effectuate these provisions of the bill.
����� Additionally, the bill provides that the Commissioner
of Transportation, in determining the allocation of funds for municipal
projects from the "Transportation Trust Fund Account" is to establish
a criterion to provide, at the commissioner�s discretion, in conformity with
criteria established by the DCA, within the schedule of all other criteria for
prioritization.� Current law provides that that the Commissioner of
Transportation may consider several criteria in allocating monies from the Transportation
Trust Fund for county and municipal transportation projects.
����� The bill permits increases to certain State shares of
school facilities projects as specified in the bill, subject to availability,
and increases to a school district�s district aid percentage of no more than 10
percent if the school district is within a municipality that has implemented
the provisions of the bill.� Under the bill, a regional school district may be
eligible for a district aid percentage increase if one or more constituent
municipalities of the district has implemented the provisions of the bill.� The
increase for a regional district, however, may not exceed 10 percent, and the
maximum district aid percentage increase due to any one constituent
municipality�s implementation of the bill is to be calculated in proportion to
the constituent municipality�s share of the overall resident enrollment of the
regional school district.
����� The bill directs the Commissioner of Education and the
Commissioner of Community Affairs to develop a uniform methodology to determine
the district aid percentage increase for school districts if a municipality has
implemented the provisions of the bill.
����� The bill directs the Commissioner of Community Affairs
and the Commissioner of Transportation to submit a report to the Legislature,
and to the Governor making recommendations concerning whether to continue the
existing priorities established by the bill or to propose new priorities.� The
provisions of the bill are to expire five years from the date of enactment.
����� As amended and reported by the committee, Senate Bill
No. 2960 is identical to Assembly Bill No. 3877, as that bill was also amended
and reported by the committee on this date.
COMMITTEE AMENDMENTS
:
����� The committee amended the bill for the purpose of:
�
specifying that a special reexamination of the municipality�s
master plan and development regulations may be conducted to qualify for
preferential status in the distribution of financial assistance competitively
awarded by the State;
�
changing "shall" to "may" concerning a
planning board�s consideration of recommending certain changes to master plan
and development regulations;
�
changing "shall" to "may" concerning a
planning board�s consideration of whether to include in the master plan and
development regulations one or more housing strategies for certain development
potential;
�
requiring a planning board to send a copy of the special
reexamination to the Division of Local Planning Services in the Department of
Community Affairs;
�
requiring a planning board to forward its recommendations to the
governing body of a municipality if the reexamination report recommends changes
to the master plan, in which case the governing body is to accept, reject, or
modify the recommendations by resolution;
�
changing "shall" to "may" concerning a
municipality�s initiation of the process of amending the municipality�s zoning
ordinance;
�
requiring the clerk of the municipality to transmit copies of the
revised ordinances to the Division of Local Planning Services within 45
business days of the adoption;
�
requiring the municipality to transmit copies of the ordinances
to the Division of Local Planning Services for evaluation in preferential
status determinations pursuant to the bill if the municipality has already
adopted ordinances substantially similar to the provisions of the bill;
�
adding to the definition of a "grant or other type of
competitively-awarded financial assistance" that financial assistance
distributed by a State agency is solely funded by State funds, other than a
program:
o
administered by the department and that awards funds to
municipalities in support of shared services and consolidation;
o
where multiple municipalities may join a single application; or
o
where other entities in addition to municipalities may apply.
�
removing reference to the Main Street New Jersey Program in the
definition of "grant or other type of competitively-awarded financial
assistance;"
�
removing the exception for a program that awards funds for fair
share housing obligations in the definition of "grant or other type of
competitively-awarded financial assistance;"
�
specifying that "grant or other type of
competitively-awarded financial assistance" is to include, but not be
limited to, the Neighborhood Preservation Program;
�
adding funds awarded under the Transitional Aid to Localities
program or any successor discretionary aid program pursuant to P.L.2011, c.144
(C.52:27D-118.42a), as Consolidated Municipal Property Tax Relief Aid, or as
Energy Tax Receipts Property Tax Relief Aid, is not to be considered a type of
competitively-awarded financial assistance under the bill;
�
removing the requirement that the Department of Community Affairs
(DCA) is to research and analyze each grant or other type of
competitively-awarded financial assistance awarded to municipalities;
�
specifying that municipalities have amended their development
regulations pursuant to the bill to allow for the use of additional housing
strategies and have reasonably increased the rate of housing units permitted
for development within the municipality;
�
removing the requirement for a memorandum of understanding
between the DCA and each State agency that awards a grant or other type of
competitively-awarded financial assistance;
�
requiring the DCA to publish on its Internet website a list of
municipalities, to be updated on a quarterly basis, that have amended their
development regulations pursuant to the bill and to order the municipalities
into three tiers of categories based on the impact and amount of changes made
relative to the municipalities� planning areas;
�
requiring State agencies to utilize the list on the DCA's
Internet website to establish award preferences for certain municipalities;
�
removing from the DCA rules and regulations the requirement for
model ordinances;
�
requiring DCA rules and regulations concerning the provision of a
housing siting and best practices guide;
�
removing State debt service aid formula language and allowing
increases to certain State shares of school facilities projects as specified in
the bill, subject to availability;
�
specifying that the district aid percentage is not to be less
than 44 percent for school facilities projects of non-SDA districts, subject to
the availability of certain funding;
�
providing that the Commissioner of Transportation�s criterion in
determining the allocation of funds is to be in conformity with criteria
established by the DCA;
�
directing the Commissioner of Community Affairs and the
Commissioner of Transportation to submit a report to the Legislature and
Governor making recommendations concerning whether to continue the existing
priorities established by the bill or to propose new priorities;
�
providing that the bill is to expire five years from the date of
enactment; and
�
making technical changes.
FISCAL IMPACT
:
����� This bill is not certified as requiring a fiscal note.