Enhances transparency in exercise of municipal redevelopment powers.

S3228

SENATE, No. 3228

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 2, 2026

Sponsored by:

Senator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Enhances transparency in exercise of municipal
redevelopment powers.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning certain procedural requirements associated with the exercise of
municipal redevelopment powers, amending and supplementing P.L.1992, c.79
(C.40A:12A-1 et seq.), and amending P.L.1971, c.199.

����
Be It Enacted

by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 6 of P.L.1992,
c.79 (C.40A:12A-6) is amended to read as follows:

���� 6.��� a. No area of a
municipality shall be determined a redevelopment area unless the governing body
of the municipality shall, by
[
resolution
]

ordinance
,
authorize the planning board to undertake a preliminary investigation to
determine whether the proposed area is a redevelopment area according to the
criteria set forth in section 5 of P.L.1992, c.79 (C.40A:12A-5). Such
determination
by the planning board
shall be made after public notice
and public hearing as provided in subsection b. of this section.� The governing
body of a municipality shall assign the conduct of the investigation and
hearing to the planning board of the municipality.� The
[
resolution
]

ordinance

authorizing the planning board to undertake a preliminary investigation shall
state whether the redevelopment area determination shall authorize the
municipality to use all those powers provided by the Legislature for use in a
redevelopment area other than the use of eminent domain (hereinafter referred
to as a "Non-Condemnation Redevelopment Area") or whether the
redevelopment area determination shall authorize the municipality to use all
those powers provided by the Legislature for use in a redevelopment area,
including the power of eminent domain (hereinafter referred to as a
"Condemnation Redevelopment Area").

���� b.��� (1)� Before proceeding
to a public hearing on the matter, the planning board shall prepare a map
showing the boundaries of the proposed redevelopment area and the location of
the various parcels of property included therein.� There shall be appended to the
map a statement setting forth the basis for the investigation.

���� (2)�� The planning board shall
specify a date for and give notice of a hearing for the purpose of hearing
persons who are interested in or would be affected by a determination that the
delineated area is a redevelopment area.

���� (3)�� (a)� The hearing notice
shall set forth the general boundaries of the area to be investigated and
[
state that
]
a map
[
has been
prepared and can be inspected at the office of the municipal clerk
]

which clearly
delineates the properties which are included in the redevelopment area.� In
addition, the hearing notice shall include a Public Advisory Statement which
shall be substantially in the form set forth in section 2 of P.L.��� c.���
(C.������ ) (pending before the Legislature as this bill)
.

���� (b)�� If the governing body
[
resolution
]

ordinance

assigning the investigation to the planning board, pursuant to subsection a. of
this section, stated that the redevelopment determination shall establish a
Non-Condemnation Redevelopment Area, the notice of the hearing shall
specifically state that a redevelopment area determination shall not authorize
the municipality to exercise the power of eminent domain to acquire any
property in the delineated area.

���� (c)�� If the
[
resolution
]

ordinance

assigning the investigation to the planning board, pursuant to subsection a. of
this section, stated that the redevelopment determination shall establish a
Condemnation Redevelopment Area, the notice of the hearing shall specifically
state that a redevelopment area determination shall authorize the municipality
to exercise the power of eminent domain to acquire property in the delineated
area.

���� (d)�� A copy of the notice
shall be published in a newspaper of general circulation in the municipality
once each week for two consecutive weeks, and the last publication shall be not
less than ten days prior to the date set for the hearing.� A copy of the notice
shall be
[
mailed
]

sent by
certified mail,
at least
[
ten
]

14

days prior to the date set for the hearing to the last owner
[
, if any,
]
of each
parcel of property within the area according to the assessment records of the
municipality.� A notice shall also be sent
by certified mail
to all
persons at their last known address,
[
if
any,
]

whose names are noted on the assessment records as claimants of an interest in
any such parcel.� The assessor of the municipality shall make a notation upon
the records when requested to do so by any person claiming to have an interest
in any parcel of property in the municipality.� The notice shall be published
and mailed
by certified mail
by the municipal clerk, or by such clerk or
official as the planning board shall otherwise designate.� Failure to mail any
such notice shall
[
not
]
invalidate
the investigation or determination thereon.

���� (4)�� At the hearing, which
may be adjourned from time to time, the planning board shall hear all persons
who are interested in or would be affected by a determination that the
delineated area is a redevelopment area. All objections to such a determination
and evidence in support of those objections, given orally or in writing, shall
be received and considered and made part of the public record.

���� (5)�� (a)� After completing
its hearing on this matter, the planning board shall recommend that the
delineated area, or any part thereof, be determined, or not be determined, by
the municipal governing body to be a redevelopment area.�
In the event that
the planning board does not recommend that the entire delineated area be
designated as a redevelopment area, the planning board shall state its reasons,
in writing, for not designating any property or properties, as proposed by the
governing body.

���� (b)�� After receiving the
recommendation of the planning board, the municipal governing body may adopt
[
a resolution
]

an ordinance

determining that the delineated area, or any part thereof, is a redevelopment
area.

���� (c)�� Upon the adoption of
[
a resolution
]

an ordinance
,
the clerk of the municipality shall, forthwith, transmit a copy of the
[
resolution
]

ordinance

to the Commissioner of Community Affairs for review
, along with the
recommendations of the planning board
.� If the area in need of
redevelopment is not situated in an area in which development or redevelopment
is to be encouraged pursuant to any State law or regulation promulgated
pursuant thereto, the determination shall not take effect without first receiving
the review and the approval of the commissioner.� If the commissioner does not
issue an approval or disapproval within 30 calendar days of transmittal by the
clerk, the determination shall be deemed to be approved.� If the area in need
of redevelopment is situated in an area in which development or redevelopment
is to be encouraged pursuant to any State law or regulation promulgated
pursuant thereto, then the determination shall take effect after the clerk has
transmitted a copy of the
[
resolution
]

ordinance

to the commissioner.� The determination, if supported by substantial evidence
and, if required, approved by the commissioner, shall be binding and conclusive
upon all persons affected by the determination.

���� (d)�� Notice of the
determination shall be served, within 10 days after the determination, upon all
record owners of property located within the delineated area, those whose names
are listed on the tax assessor's records, and upon each person who filed a
written objection thereto and stated, in or upon the written submission, an
address to which notice of determination may be sent.

���� (e)�� If the governing body
[
resolution
]

ordinance

assigning the investigation to the planning board, pursuant to subsection a. of
this section, stated that the redevelopment determination shall establish a
Condemnation Redevelopment Area, the notice of the determination required
pursuant to subparagraph (d) of this paragraph shall indicate that:

���� (i)��� the determination
operates as a finding of public purpose and authorizes the municipality to
exercise the power of eminent domain to acquire property in the redevelopment
area, and

���� (ii)�� legal action to
challenge the determination must be commenced within 45 days of receipt of
notice and that failure to do so shall preclude an owner from later raising
such challenge.

���� (f)�� No municipality or
redevelopment entity shall exercise the power of eminent domain to acquire
property for redevelopment purposes within a Non-Condemnation Redevelopment
Area.

���� (g)�� If a municipal governing
body has determined an area to be a Non-Condemnation Redevelopment Area and is
unable to acquire property that is necessary for the redevelopment project, the
municipality may initiate and follow the process set forth in this section to
determine whether the area or property is a Condemnation Redevelopment Area.�
Such determination shall be based upon the then-existing conditions and not
based upon the condition of the area or property at the time of the prior
Non-Condemnation Redevelopment Area determination.

���� (h)�� A property owner who has
received notice pursuant to this section who does not file a legal challenge to
the redevelopment determination affecting his or her property within 45 days of
receipt of such notice shall thereafter be barred from filing such a challenge
and, in the case of a Condemnation Redevelopment Area and upon compliance with
the notice provisions of subparagraph (e) of this paragraph, shall further be
barred from asserting a challenge to the redevelopment determination as a
defense in any condemnation proceeding to acquire the property unless the
municipality and the property owner agree otherwise.

���� (6)��
[
The
municipality shall, for 45 days next following its determination, take no
further action to acquire any property by condemnation within the redevelopment
area.
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� (7)�� If any person shall,
within 45 days after the adoption by the municipality of the determination,
apply to the Superior Court, the court may grant further review of the
determination by procedure in lieu of prerogative writ; and in any such action
the court may make any incidental order that it deems proper.

���� c.���� An area determined to
be in need of redevelopment pursuant to this section shall be deemed to be a
"blighted area" for the purposes of Article VIII, Section III,
paragraph 1 of the Constitution.� If an area is determined to be a
redevelopment area and a redevelopment plan is adopted for that area in
accordance with the provisions of this act, the municipality is authorized to
utilize all those powers provided in section 8 of P.L.1992, c.79 (C.40A:12A-8),
except that a municipality may not acquire any land or building by condemnation
pursuant to subsection c. of that section unless the land or building is
located within (1) an area that was determined to be in need of redevelopment
prior to the effective date of P.L.2013, c.159, or (2) a Condemnation Redevelopment
Area for which the municipality has complied with the provisions of
subparagraph (e) of paragraph (5) of subsection b. of this section.

(cf: P.L.2013, c.159, s.2)

���� 2.��� (New section)� Each
hearing notice circulated as required pursuant to paragraph (3) of subsection
b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) shall include notice which
shall be in substantially the following form:

"PUBLIC
ADVISORY STATEMENT

���� The governing body of
...................... (insert name of municipality) in which you reside has
authorized the planning board to undertake a study to determine whether your
neighborhood fulfills the definition of a redevelopment area under New Jersey State
law.� Your property has been included by your governing body in the proposed
redevelopment area.

���� State law requires those
property owners whose properties are included within the redevelopment area to
receive notice prior to the holding of a hearing by your municipal planning
board.� The first hearing by the planning board will be held at ........ (insert
time) on� ........... (insert date) at ................... (insert place).

���� Municipalities are granted
broad powers to facilitate economic development in a redevelopment area,
including the acquisition of properties using eminent domain.� In other words,
by being located in the redevelopment area, your property could be subject to
condemnation.

���� All interested persons are
entitled to testify before the planning board under State law, either verbally
or through written objection. All objections shall be made part of the public
record.� Any determination by the governing body that an area is a redevelopment
area is considered binding on all property owners included within the
redevelopment area.� Any person who files a written objection to this
determination is entitled to a copy of the determination within 10 days of
municipal action.

����
A property owner who
filed a written objection to municipal declaration of a redevelopment area and
who remains opposed to the declaration has 45 days following the declaration by
the municipality to apply to the Superior Court for review of the municipal
action.

���� Any person seeking further
clarification of your rights under the redevelopment law may contact the
municipal clerk at ................. (insert telephone number) or the
Commissioner of Community Affairs in Trenton at (609) 292-6420."

���� 3.��� Section 7 of P.L.1992,
c.79 (C.40A:12A-7) is amended to read as follows:

���� 7.��� a.� No redevelopment
project shall be undertaken or carried out except in accordance with a
redevelopment plan adopted by
[
ordinance of
]
the municipal governing body,
[
upon its finding
]

as
provided in this section and section 4 of P.L.��� , c.���� (C.���������� )
(pending before the Legislature as this bill).� The redevelopment plan shall be
adopted by ordinance only after the municipal governing body has conducted at
least one public hearing thereon following the receipt of the report of the
planning board as required pursuant to section 4 of P.L.��� , c.����
(C.���������� ) (pending before the Legislature as this bill).� In addition,
the municipal governing body shall include within the ordinance detailed
findings
that the specifically delineated project area is located in an
area in need of redevelopment or in an area in need of rehabilitation, or in
both, according to criteria set forth in section 5 or section 14 of P.L.1992,
c.79 (C.40A:12A-5 or 40A:12A-14), as appropriate
and that the plan fulfills
all of the criteria set forth in this section
.

���� The redevelopment plan shall
include an outline for the planning, development, redevelopment, or
rehabilitation of the project area sufficient to indicate:�

���� (1)�� Its relationship to
definite local objectives as to appropriate land uses, density of population,
and improved traffic and public transportation, public utilities, recreational
and community facilities and other public improvements.

���� (2)�� Proposed land uses and
building requirements in the project area.

���� (3)�� Adequate provision for
the temporary and permanent relocation, as necessary, of residents in the
project area, including an estimate of the extent to which decent, safe and
sanitary dwelling units affordable to displaced residents will be available to
them in the existing local housing market.�

���� (4)�� An identification of any
property within the redevelopment area which is proposed to be acquired in
accordance with the redevelopment plan.�

���� (5)�� Any significant
relationship of the redevelopment plan to (a) the master plans of contiguous
municipalities, (b) the master plan of the county in which the municipality is
located, and (c) the State Development and Redevelopment Plan adopted pursuant
to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.).

���� (6)�� As of the date of the
adoption of the resolution finding the area to be in need of redevelopment, an
inventory of all housing units affordable to low and moderate income
households, as defined pursuant to section 4 of P.L.1985, c.222 (C.52:27D-304),
that are to be removed as a result of implementation of the redevelopment plan,
whether as a result of subsidies or market conditions, listed by affordability
level, number of bedrooms, and tenure.

���� (7)�� A plan for the
provision, through new construction or substantial rehabilitation of one
comparable, affordable replacement housing unit for each affordable housing
unit that has been occupied at any time within the last 18 months, that is
subject to affordability controls and that is identified as to be removed as a
result of implementation of the redevelopment plan.� Displaced residents of
housing units provided under any State or federal housing subsidy program, or
pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et
al.), provided they are deemed to be eligible, shall have first priority for
those replacement units provided under the plan; provided that any such
replacement unit shall not be credited against a prospective municipal obligation
under the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.),
if the housing unit which is removed had previously been credited toward
satisfying the municipal fair share obligation.� To the extent reasonably
feasible, replacement housing shall be provided within or in close proximity to
the redevelopment area.� A municipality shall report annually to the Department
of Community Affairs on its progress in implementing the plan for provision of
comparable, affordable replacement housing required pursuant to this section.

���� (8)�� Proposed locations for
public electric vehicle charging infrastructure within the project area in a
manner that appropriately connects with an essential public charging network.

���� b.��� A redevelopment plan may
include the provision of affordable housing in accordance with the "Fair
Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the housing
element of the municipal master plan.

���� c.���� The redevelopment plan
shall describe its relationship to pertinent municipal development regulations
as defined in the "Municipal Land Use Law," P.L.1975, c.291
(C.40:55D-1 et seq.).� The redevelopment plan shall supersede applicable
provisions of the development regulations of the municipality or constitute an
overlay zoning district within the redevelopment area.� When the redevelopment
plan supersedes any provision of the development regulations, the ordinance
adopting the redevelopment plan shall contain an explicit amendment to the
zoning district map included in the zoning ordinance.� The zoning district map
as amended shall indicate the redevelopment area to which the redevelopment
plan applies.�
[
Notwithstanding
the provisions of the "Municipal Land Use Law," P.L.1975, c.291
(C.40:55D-1 et seq.) or of other law, no notice beyond that required for
adoption of ordinances by the municipality shall be required for the hearing on
or adoption of the redevelopment plan or subsequent amendments thereof.
]
�

���� d.��� All provisions of the
redevelopment plan shall be either substantially consistent with the municipal
master plan or designed to effectuate the master plan; but the municipal
governing body may adopt a redevelopment plan which is inconsistent with or not
designed to effectuate the master plan by affirmative vote of a majority of its
full authorized membership with the reasons for so acting set forth in the
redevelopment plan.

���� e.���� Prior to the adoption
of a redevelopment plan, or revision or amendment thereto, the
governing
body shall refer the plan, revision, or amendment, as appropriate, to the

planning board
[
shall transmit to the governing
body, within 45 days after referral, a report containing its recommendation
concerning the redevelopment plan
]
, which
shall report back to the governing body within 90 days of referral, following a
public hearing held by the planning board according to the procedure followed
by the municipality in adopting the master plan, as required pursuant to
subsection a. of section 19 of P.L.1975, c.291 (C.40:55D-28)
.�
[
This
]

The planning
board
report shall include an identification of any provisions in the
proposed redevelopment plan which are inconsistent with the master plan and
recommendations concerning these inconsistencies and any other matters as the
board deems appropriate.� The governing body, when considering the adoption of
a redevelopment plan or revision or amendment thereof, shall review the report
of the planning board and may approve or disapprove or change any recommendation
by a vote of a majority of its full authorized membership and shall record in
its minutes the reasons for not following the recommendations.� Failure of the
planning board to transmit its report within the required
[
45
]

90
days
shall relieve the governing body from the requirements of this subsection with
regard to the pertinent proposed redevelopment plan or revision or amendment
thereof.� Nothing in this subsection shall diminish the applicability of the
provisions of subsection d. of this section with respect to any redevelopment
plan or revision or amendment thereof.��

���� f.���� The governing body of a
municipality may direct the planning board to prepare a redevelopment plan or
an amendment or revision to a redevelopment plan for a designated redevelopment
area.� After completing the redevelopment plan, the planning board shall
transmit the proposed plan to the governing body for its adoption.� The
governing body, when considering the proposed plan, may amend or revise any
portion of the proposed redevelopment plan by an affirmative vote of the
majority of its full authorized membership and shall record in its minutes the
reasons for each amendment or revision.� When a redevelopment plan or amendment
to a redevelopment plan is referred to the governing body by the planning board
under this subsection, the governing body shall be relieved of the referral
requirements of subsection e. of this section.

����
Regardless of whether the
redevelopment plan is prepared by the governing body or the planning board as
provided in this subsection, the governing body shall not consider the proposed
redevelopment plan or any amendment or revision thereto for a vote until it has
complied with the notification and public hearing requirements set forth in
section 4 of P.L.���� , c.������ (C.������������ ) (pending before the
Legislature as this bill).

(cf: P.L.2021, c.168, s.2)

���� 4.��� (New section)� a.� Prior
to adopting the redevelopment plan, the governing body shall hold at least one
public hearing on the redevelopment plan.� If the boundaries of the
redevelopment area have been amended since the designation by the governing
body of that area pursuant to paragraph (5) of subsection b. of section 6 of
P.L.1992, c.79 (C.40A:12A-6), the governing body shall prepare and include
within the notice to be provided a revised map showing the boundaries of the
redevelopment area and the location of the various parcels of property included
therein.

���� b.��� Not less than 10 days
prior to the public hearing, the governing body shall provide notice,
specifying a date for and giving notice of a hearing for the purpose of hearing
persons who are interested in or would be affected by the implementation of the
redevelopment plan.� The hearing notice shall set forth the boundaries of the
redevelopment area, including a map of the redevelopment area if the boundaries
have changed, as required in subsection a. of this section, and state how
interested members of the public can gain access to the proposed redevelopment
plan, including the specific hours and location at which the plan may be
inspected.

���� c.���� A copy of the notice
shall be published in a newspaper of general circulation in the municipality
once each week for two consecutive weeks, and the last publication shall be not
less than 10 days prior to the date set for the hearing.� A copy of the notice
shall be sent by certified mail, at least 14 days prior to the date set for the
hearing to the last owner of each parcel of property within the area according
to the assessment records of the municipality.� In the event that the
boundaries of the redevelopment area have changed since the previous notice,
notice also shall be provided to those owners previously situated within the
redevelopment area.� A notice shall also be sent by certified mail to all
persons at their last known address, whose names are noted on the assessment
records as claimants of an interest in any such parcel.� The assessor of the
municipality shall make a notation upon the records when requested to do so by
any person claiming to have an interest in any parcel of property in the municipality.�
The notice shall be published and mailed by the municipal clerk by certified
mail, or by such clerk or official as the governing body shall otherwise
designate.

���� d.��� At the hearing, which
may be adjourned from time to time, the governing body shall hear all persons
who are interested in or would be affected by the implementation of the
redevelopment plan.� All objections to the plan and evidence in support of
those objections, given orally or in writing, shall be received and considered
and made part of the public record.

���� 5.��� Section 8 of P.L.1992,
c.79 (C.40A:12A-8) is amended to read as follows:

���� 8.��� Upon the adoption of a
redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7), the
municipality or redevelopment entity designated by the governing body may
proceed with the clearance, replanning, development and redevelopment of the area
designated in that plan.� In order to carry out and effectuate the purposes of
this act and the terms of the redevelopment plan, the municipality or
designated redevelopment entity may:

���� a.���� Undertake redevelopment
projects, and for this purpose issue bonds in accordance with the provisions of
section 29 of P.L.1992, c.79 (C.40A:12A-29).

���� b.��� Acquire property
pursuant to subsection i. of section 22 of P.L.1992, c.79 (C.40A:12A-22).

���� c.���� Acquire, by
condemnation, any land or building which is necessary for the redevelopment
project, pursuant to the provisions of the "Eminent Domain Act of
1971," P.L.1971, c.361 (C.20:3-1 et seq.), provided that the land or
building is located within (1) an area that was determined to be in need of
redevelopment prior to the effective date of P.L.2013, c.159, or (2) a
Condemnation Redevelopment Area.

���� d.��� Clear any area owned or
acquired and install, construct or reconstruct streets, facilities, utilities,
and site improvements essential to the preparation of sites for use in
accordance with the redevelopment plan.

���� e.���� Prepare or arrange by
contract for the provision of professional services and the preparation of
plans by registered architects, licensed professional engineers or planners, or
other consultants for the carrying out of redevelopment projects.

���� f.���� Arrange or contract
with public agencies or redevelopers for the planning, replanning,
construction, or undertaking of any project or redevelopment work, or any part
thereof; negotiate and collect revenue from a redeveloper to defray the costs
of the redevelopment entity, including where applicable the costs incurred in
conjunction with bonds, notes or other obligations issued by the redevelopment
entity, and to secure payment of such revenue; as part of any such arrangement
or contract, provide for extension of credit, or making of loans, to
redevelopers to finance any project or redevelopment work, or upon a finding
that the project or redevelopment work would not be undertaken but for the
provision of financial assistance, or would not be undertaken in its intended
scope without the provision of financial assistance, provide as part of an
arrangement or contract for capital grants to redevelopers; and arrange or
contract with public agencies or redevelopers for the opening, grading or
closing of streets, roads, roadways, alleys, or other places or for the
furnishing of facilities or for the acquisition by such agency of property
options or property rights or for the furnishing of property or services in
connection with a redevelopment area.

���� g.��� Except with regard to
property subject to the requirements of P.L.2008, c.65 (C.40A:5-14.2 et al.),
lease or convey property or improvements to any other party pursuant to this
section
[
,
without public bidding and at such prices and upon such terms as it deems
reasonable
]
,
provided that the lease or conveyance is made in conjunction with a
redevelopment plan
[
,
notwithstanding the provisions of any law, rule, or regulation to the contrary
]
.

���� h.��� Enter upon any building
or property in any redevelopment area in order to conduct investigations or
make surveys, sounding or test borings necessary to carry out the purposes of
this act.

���� i.���� Arrange or contract
with a public agency for the relocation, pursuant to the "Relocation
Assistance Law of 1967," P.L.1967, c.79 (C.52:31B-1 et seq.) and the
"Relocation Assistance Act," P.L.1971, c.362 (C.20:4-1 et seq.), of
residents, industry or commerce displaced from a redevelopment area.

���� j.���� Make, consistent with
the redevelopment plan: (1) plans for carrying out a program of voluntary
repair and rehabilitation of buildings and improvements; and (2) plans for the
enforcement of laws, codes, and regulations relating to the use and occupancy of
buildings and improvements, and to the compulsory repair, rehabilitation,
demolition, or removal of buildings and improvements.

���� k.��� Request that the
planning board recommend and governing body designate particular areas as being
in need of redevelopment or rehabilitation in accordance with the provisions of
this act and make recommendations for the redevelopment or rehabilitation of such
areas.

���� l.���� Study the
recommendations of the planning board or governing body for redevelopment of
the area.

���� m.�� Publish and disseminate
information concerning any redevelopment area, plan or project.

���� n.��� Do all things necessary
or convenient to carry out its powers.

(cf: P.L.2013, c.159, s.3)

���� 6.��� Section 14 of P.L.1992,
c.79 (C.40A:12A-14) is amended to read as follows:

���� 14.� a.� A delineated area may
be determined to be in need of rehabilitation if the governing body of the
municipality determines by
[
resolution
]

ordinance

that a program of rehabilitation, as defined in section 3 of P.L.1992, c.79
(C.40A:12A-3), may be expected to prevent further deterioration and promote the
overall development of the community; and that there exist in that area any of
the following conditions such that (1) a significant portion of structures
therein are in a deteriorated or substandard condition; (2) more than half of
the housing stock in the delineated area is at least 50 years old; (3) there is
a pattern of vacancy, abandonment or underutilization of properties in the
area; (4) there is a persistent arrearage of property tax payments on
properties in the area; (5) environmental contamination is discouraging
improvements and investment in properties in the area; or (6) a majority of the
water and sewer infrastructure in the delineated area is at least 50 years old
and is in need of repair or substantial maintenance.� Where warranted by
consideration of the overall conditions and requirements of the community, a
finding of need for rehabilitation may extend to the entire area of a
municipality.� Prior to adoption of the
[
resolution
]

ordinance
,
the governing body shall submit it to the municipal planning board for its
review.� Within
[
45
]

90

days of its receipt of the proposed
[
resolution
]

ordinance
,
the municipal planning board shall submit its recommendations regarding the
proposed
[
resolution
]

ordinance
,
including any modifications which it may recommend, to the governing body for
its consideration.� Thereafter, or after the expiration of the
[
45
]

90

days if the municipal planning board does not submit recommendations, the
governing body may adopt the
[
resolution
]

ordinance
,
with or without modification.� The
[
resolution
]

ordinance

shall not become effective without the approval of the commissioner pursuant to
section 6 of P.L.1992, c.79

(C.40A:12A-6), if otherwise required pursuant to that section.

���� b.��� A delineated area shall
be deemed to have been determined to be an area in need of rehabilitation in
accordance with the provisions of this act if it has heretofore been determined
to be an area in need of rehabilitation pursuant to P.L.1975, c.104

(C.54:4-3.72 et seq.), P.L.1977, c.12 (C.54:4-3.95 et seq.) or P.L.1979, c.233
(C.54:4-3.121 et al.).

���� c.���� (1)� A municipality may
adopt an ordinance declaring a renovation housing project to be an area in need
of rehabilitation for the purposes of Article VIII, Section I, paragraph 6 of
the New Jersey Constitution if the need for renovation resulted from conflagration.

���� (2)�� For the purposes of this
subsection, "renovation housing project" means any work or
undertaking to provide a decent, safe, and sanitary dwelling, to exclusively
benefit a specific household, by the renovation, reconstruction, or replacement
of the household's home on the same lot by either a charitable entity organized
to perform home renovations or by a for-profit builder using
[
75%
]

75 percent

or more volunteer labor-hours to accomplish the construction for the project.�
The undertaking may include any buildings; demolition, clearance, or removal of
buildings from land; equipment; facilities; or other personal properties or
interests therein which are necessary, convenient, or desirable appurtenances
of the undertaking.

���� d.��� (1)� A municipality may
adopt an ordinance declaring a renovation housing project to be an area in need
of rehabilitation for the purposes of Article VIII, Section I, paragraph 6 of
the New Jersey Constitution if at least half of the number of people occupying
the dwelling as their primary residence qualify for a federal income tax credit
pursuant to 26 U.S.C. s.22 as a result of being permanently and totally
disabled and the improvements to be made to the dwelling are made substantially
to accommodate those disabilities.

���� (2)�� For the purposes of this
subsection, "renovation housing project" means any work or
undertaking to provide a decent, safe, and sanitary single-family dwelling, to
exclusively benefit at least half of the number of people occupying a dwelling
as their primary residence, by the renovation, reconstruction, or replacement
of that dwelling on the same lot by either a charitable entity organized to
perform home renovations or by a for-profit builder using
[
75%
]

75 percent

or more volunteer labor-hours to accomplish the construction for the project.�
The undertaking may include any buildings; demolition, clearance, or removal of
buildings from land; equipment; facilities; or other personal properties or
interests therein which are necessary, convenient, or desirable appurtenances
of the undertaking.

(cf: P.L.2013, c.159, s.4)

���� 7.��� Section 13 of P.L.1971,
c.199 (C.40A:12-13) is amended to read as follows:

���� 13.�
[
Sales
of real property, capital improvements or personal property; exceptions;
procedure.
]
Any county or municipality may sell
any real property, capital improvement or personal property, or interests
therein, not needed for public use, as set forth in the resolution or ordinance
authorizing the sale, other than county or municipal lands, real property
otherwise dedicated or restricted pursuant to law, and, except as otherwise
provided by law, all such sales shall be made by one of the following methods:

���� (a)�� By open public sale at
auction to the highest bidder after advertisement thereof in a newspaper
circulating in the municipality or municipalities in which the lands are
situated, by two insertions at least once a week during two consecutive weeks,
the last publication to be not earlier than seven days prior to such sale.� In
the case of public sales, the governing body may by resolution fix a minimum
price or prices, with or without the reservation of the right to reject all
bids where the highest bid is not accepted.� Notice of such reservation shall
be included in the advertisement of the sale and public notice thereof shall be
given at the time of sale. Such resolution may provide, without fixing a
minimum price, that upon the completion of the bidding, the highest bid may be
accepted or all the bids may be rejected.� The invitation to bid may also
impose restrictions on the use to be made of such real property, capital
improvement or personal property, and any conditions of sale as to buildings or
structures, or as to the type, size, or other specifications of buildings or
structures to be constructed thereon, or as to demolition, repair, or
reconstruction of buildings or structures, and the time within which such
conditions shall be operative, or any other conditions of sale, in like manner
and to the same extent as by any other vendor.� Such conditions shall be
included in the advertisement, as well as the nature of the interest retained
by the county or municipality.� Such restrictions or conditions shall be
related to a lawful public purpose and encourage and promote fair and
competitive bidding of the county or municipality and shall not, in the case of
a municipality, be inconsistent with or impose a special or higher standard
than any zoning ordinance or building, plumbing, electrical, or similar code or
ordinance then in effect in the municipality.

���� In any case in which a county
or municipality intends to retain an estate or interest in any real property,
capital improvement or personal property, in the nature of an easement,
contingent or reversionary, the invitation to bid and the advertisement required
herein shall require each bidder to submit one bid under each Option A and
Option B below.

���� (1)�� Option A shall be for
the real property, capital improvement or personal property subject to the
conditions or restrictions imposed, or interest or estate retained, which the
county or municipality proposes to retain or impose.

���� (2)�� Option B shall be for
the real property, capital improvement or personal property to be sold free of
all such restrictions, conditions, interests or estates on the part of the
county or municipality.

���� The county or the municipality
may elect or reject either or both options and the highest bid for each.� Such
acceptance or rejection shall be made not later than at the second regular
meeting of the governing body following the sale, and, if the governing body
shall not so accept such highest bid, or reject all bids, said bids shall be
deemed to have been rejected.� Any such sale may be adjourned at the time
advertised for not more than one week without readvertising.

���� (b)�� At private sale, when
authorized by resolution, in the case of a county, or by ordinance, in the case
of a municipality, in the following cases:

���� (1)�� A sale to any political
subdivision, agency, department, commission, board or body corporate and
politic of the State of New Jersey or to an interstate agency or body of which
the State of New Jersey is a member or to the United States of America or any department
or agency thereof.

���� (2)�� A sale to a person
submitting a bid pursuant to subsection (a) of this section, where all bids
have been rejected, provided that the terms and price agreed to shall in no
event be less than the highest bid rejected, and provided further that the
terms and conditions of sale shall remain identical.

���� (3)�� A sale by any county or
municipality, when it has or shall have conveyed its right, title and interest
in any real property, capital improvement or personal property not needed for
public use, and it was assumed and intended that there should be conveyed a
good and sufficient title in fee simple to said real property, capital
improvement or personal property, free of all encumbrances and the full
consideration has been paid therefor, and it shall thereafter appear that the
title conveyed was insufficient or that said county or municipality at the time
of said conveyance was not the owner of some estate or interest in said real
property, capital improvement or personal property or of some encumbrances
thereon, and the county or municipality shall thereafter acquire a good and
sufficient title in fee simple, free of all encumbrances of said real property,
capital improvement or personal property or shall acquire such outstanding
estate or interest therein or outstanding encumbrance thereon and said county or
municipality, by resolution of the governing body and without the payment of
any additional consideration, has deemed to convey or otherwise transfer to
said purchaser, his heirs or assigns, such after-acquired title, or estate or
interest in, or encumbrance upon, such real property, capital improvement or
personal property to perfect the title or interest previously conveyed.

���� (4)�� A sale of an easement
upon any real property previously conveyed by any county or municipality may be
made when the governing body of any county, by resolution, or any municipality,
by ordinance, has elected to release the public rights in the nature of easements,
in, on, over or under any real property within the county or the municipality,
as the case may be, upon such terms as shall be agreed upon with the owner of
such lands, if the use of such rights is no longer desirable, necessary or
required for public purposes.

���� (5)�� A sale to the owner of
the real property contiguous to the real property being sold; provided that the
property being sold is less than the minimum size required for development
under the municipal zoning ordinance and is without any capital improvement thereon;
except that when there is more than one owner with real property contiguous
thereto, said property shall be sold to the highest bidder from among all such
owners.� Any such sale shall be for not less than the fair market value of said
real property. When there is only one owner with real property contiguous to
the property being sold, and the property is less than an eighth of the minimum
size required for development under the municipal zoning ordinance and is
without any capital improvement thereon, the fair market value of that property
may be determined by negotiation between the local unit and the owner of the
contiguous real property.� The negotiated sum shall be subject to approval by
resolution of the governing body, but in no case shall that sum be less than
one dollar.

���� In the case of any sale of
real property hereafter made pursuant to subsection (b) of this section, in no
event shall the price agreed upon with the owner be less than the difference
between the highest bid accepted for the real property subject to easements
(Option A) and the highest bid rejected for the real property not subject to
easements (Option B).� After the adoption of the resolution or ordinance, and
compliance by the owner of said real property with the terms thereof, said real
property shall be free, and entirely discharged of and from such rights of the
public and of the county or municipality, as the case may be, but no such
release shall affect the right of lawful occupancy or use of any such real
property by any municipal or private utility to occupy or use any such real
property lawfully occupied or used by it.� A list of the property so authorized
to be sold, pursuant to subsection (b) of this section, together with the
minimum prices, respectively, as determined by the governing body, shall be
included in the resolution or ordinance authorizing the sale, and said list
shall be posted on the bulletin board or other conspicuous space in the
building which the governing body usually holds its regular meetings, and
advertisement thereof made in a newspaper circulating in the municipality or
municipalities in which the real property, capital improvement or personal
property is situated, within five days following enactment of said resolution
or ordinance.� Offers for any or all properties so listed may thereafter be
made to the governing body or its designee for a period of 20 days following
the advertisement herein required, at not less than said minimum prices, by any
prospective purchaser, real estate broker, or other authorized representative.�
In any such case, the governing body may reconsider its resolution or
ordinance, not later than 30 days after its enactment, and advertise the real
property, capital improvement, or personal property in question for public sale
pursuant to subsection (a) of this section.

���� Any county or municipality
selling any real property, capital improvement or personal property pursuant to
subsection (b) of this section shall file with the Director of the Division of
Local Government Services in the Department of Community Affairs, sworn
affidavits verifying the publication of advertisements as required by this
subsection.

���� (c)��
[
By
private sale of a municipality in the following case:� A sale to a private
developer by a municipality, when acting in accordance with the "Local
Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et al.).
]

(Deleted by amendment, P.L. ,
c.��� ) (pending before the Legislature as this bill)

���� (d)�� A county or municipality
is also authorized to use electronic procurement practices in accordance with
the provisions of P.L.2018, c.156 (C.40A:11-4.7 et al.) for the sale or lease
of real property pursuant to the "Local Lands and Buildings Law,"
P.L.1971, c.199 (C.40A:12-1 et seq.).

���� All sales, either public or
private, may be made for cash or upon credit.� A deposit not exceeding
[
10%
]

10 percent

of the minimum price or value of the property to be sold may be required of all
bidders.� When made upon credit, the county or municipality may accept a
purchase-money mortgage, upon terms and conditions which shall be fixed by the
resolution of the governing body; provided, however, that such mortgage shall
be fully payable within five years from the date of the sale and shall bear
interest at a rate equal to that authorized under Title 31 of the Revised
Statutes, as amended and supplemented, and the regulations issued pursuant
thereto, or the rate last paid by the county or municipality upon any issue of
notes pursuant to the "Local Bond Law" (N.J.S.40A:2-1 et seq.),
whichever is higher.� The governing body may, by resolution, fix the time for
closing of title and payment of the consideration.

���� In all sales made pursuant to
this section, the governing body of any county or municipality may provide for
the payment of a commission to any real estate broker, or authorized
representative other than the purchaser actually consummating such sale; provided,
however, that no commission shall be paid unless notice of the governing body's
intention to pay such a commission shall have been included in the
advertisement of sale and the recipient thereof shall have filed an affidavit
with the governing body stating that said recipient is not the purchaser.� Said
commissions shall not exceed, in the aggregate,
[
5%
]

5 percent
of the sale
price, and be paid, where there has been a public sale, only in the event that
the sum of the commission and the highest bid price does not exceed the next
highest bid price (exclusive of any real estate broker's commission). As used
in this section, "purchaser" shall mean and include any person,
corporation, company, association, society, firm, partnership, or other
business entity owning or controlling, directly or indirectly, more than
[
10%
]

10 percent

of the purchasing entity.

(cf: P.L.2018, c.156, s.7)

���� 8.��� This act shall take
effect immediately.

STATEMENT

���� This bill would make
procedural modifications to the process through which municipalities exercise
redevelopment power.

���� First, the bill would require
that municipalities act by ordinance rather than resolution in acting under the
"Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et
seq.).� This would require a more elaborate publication and hearing process
than that which is required when a municipality acts by resolution.

���� The bill enhances notification
requirements under this law. Under current law, when a municipal governing body
designates properties within a redevelopment area, it is required to authorize
the planning board to undertake a preliminary investigation to determine
whether the proposed area fulfills those criteria which the law establishes in
order to be so designated.

���� Although the current law does
provide for notification when an area is to be designated, the hearing notice
is only required to set forth the general boundaries of the area to be
investigated and notice that the map shall be made available at the office of
the municipal clerk.� Property owners in the proposed redevelopment area are to
be notified by regular mail, under the current law, with no information to be
provided as to what a redevelopment designation means.

���� This bill would require that
the hearing notice clearly delineate the properties which are to be included in
the redevelopment area and that notice to property owners be provided by
certified mail.� In addition, the bill requires that a Public Advisory Statement
be sent to every property owner within the redevelopment area as part of the
required notification and prescribes the content of this statement.� The
purpose of this Public Advisory Statement is to explain to property owners
within the redevelopment area that municipalities are granted broad powers to
facilitate economic development within redevelopment areas, which includes the
power to exercise eminent domain.� Additionally, the notification is designed
to inform property owners of their recourse in this situation and who to
contact for further information.

���� The bill requires both the
planning board and municipal governing body to hold public hearings on the
redevelopment plan, which is required to be prepared before a municipality is
authorized to undertake a redevelopment project under existing law.� In addition,
the bill requires that property owners within the designated redevelopment area
be provided with certified mail notice in advance of the public hearing held by
the municipal governing body.� Under current law, the redevelopment plan is to
be adopted by ordinance and the municipality is only required to provide that
notice associated with the adoption of an ordinance under general law.

���� Under current law, when the
governing body originates the redevelopment plan, it is required to transmit a
copy of the proposed redevelopment plan to the planning board for
recommendations and an analysis of the consistency of that plan with the
municipal master plan.� The law gives the planning board 45 days within which
to report back to the governing body.� Given the addition of a mandatory public
hearing process by this bill, this 45 day review period is extended to 90 days.

���� Current law authorizes
municipalities to lease or convey property or improvements "without public
bidding and at such prices and upon such terms as it deems reasonable."�
By removing this exception from public bidding and vague language deferring to
the municipality as to the establishment of a price for such property or
improvements, this bill would require open public bidding and, thereby, the
establishment of a market price through a transparent transaction process.