New Jersey Lawmakers Adopt Measure to Protect Developers
New “Time of Application” Law Prohibits Municipalities from Rezoning During Development Application Process
New Jersey’s Legislature has revised the Municipal Land Use Law to remove the ability of municipalities to revise zoning codes in an effort to thwart development applications the municipality opposes but which otherwise comply with local zoning laws. Previously, it was not unusual for a developer to expend significant resources (money and time) to complete its development application for a construction project based on the applicable zoning, only to have a municipality modify zoning in the area after the application was filed but before it was approved. The application would be denied, and the developer would be forced to walk away from the project or to expend more resources seeking a variance for a project to which the municipality was clearly opposed. The revised rule now binds a municipality to the zoning in effect at the time a development application is submitted by a developer. However, developers must still be wary because a municipality will not be bound by the submission of an informal site plan review.
The new rule may be important to property owners in condemnation cases because a municipality would not be permitted to downzone a property with a pending development application in anticipation of condemning the property and seeking a lower highest and best use.
A copy of the original legislation may be viewed by clicking here.
A copy of the new law may be viewed by clicking here.
A press release on the legislation from Governor Chris Christie’s Office may be viewed by clicking here.
The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.
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