NJ Looking for Ways to Encourage Economic Recovery: The State of New Jersey Permit Extension Act

The following post was written over one year ago. Laws often change and recent case decisions may impact how the law is applied. As such, the information in this article may not be current. We encourage you to contact our firm for information on this particular article and to make sure the analysis is still up-to-date.

On December 8, 2011, the Assembly Housing and Local Government Committee overwhelmingly approved bipartisan legislation sponsored by Assemblyman Lou Greenwald, D-Camden, and Republican Leader Alex DeCroce, R-Morris and Passaic, that seeks to extend the expiration date of the “Permit Extension Act of 2008.” Under the current law, the extension is set to expire on December 31, 2012. If approved, the extension would now expire on December 31, 2014.

The “Permit Extension Act of 2008” protects governmental approvals for a broad range of development projects from unnecessarily expiring due to the mere passage of time during one of the longest economic downturns since the Great Depression of the 1930’s.

The process of obtaining planning board and zoning board of adjustment approvals for subdivisions, site plans, and variances (including other State permits such as environmental approvals), can be difficult, time consuming and expensive.  Additionally, you should have legal representation involved to ensure that these approvals are in your best interest. In order to help avoid the unnecessary added expense of obtaining extensions on previously approved permits, New Jersey enacted the “Permit Extension Act of 2008.” Now, to further assist banks, real estate developers and construction contractors, the New Jersey Legislature will seek to extend the expiration date of governmental approvals to December 31, 2014. In accordance with the tolling provision in the Act, no approval would be extended beyond six months after the conclusion of the extension period, or until June 30, 2015 under the bill.

However, there are several exemptions and exclusions to the Act, and you should seek competent legal assistance to determine whether your particular governmental approval or permit is extended.

Jason R. Rittie, Esq.