News Flash

Legislation (A-2078) that requires the State Treasurer to establish a public registry for out-of-state contractors awarded public works contracts was released from the Assembly Commerce and Economic Committee and now awaits consideration by the full Assembly. The Senate companion bill, S-3131, awaits consideration by the Senate State Government, Wagering, Tourism and Historic Preservation Committee. 

A-2078 requires the State Treasurer to establish and maintain an up-to-date and public registry of out-of-state contractors who are awarded public works contracts subject to the Prevailing Wage Act. The registry must include the trade name, owner’s name, principal business address, and description of the public works project. The registry must be available on the State Treasurer’s website and must be provided in print or electronic to any contractor, out-of-state contractor or public body upon request.

A-2078 defines “out-of-state contractor” as a contractor, including subcontractors, whose principal place of business is not in New Jersey. A principal place of business does not include a satellite office, an office maintained, occupied, and used by an out-of-state contractor only for the duration of a contract, or an office maintained, occupied, and used by a person affiliated with an out-of-state contractor.

The League opposes the bill as the Business Registration Certificate (N.J.S.A. 52:32-44) provides the State Treasurer with the information required by A-2078, except the project the out-of-state contractor has performed for a public entity. However, that information is provided to the Department of Labor when filing certified payroll records through the New Jersey Wage Hub. 

Contact: Lori Buckelew, Deputy Executive Director, 609-695-3481 x. 112, lbuckelew@njlm.org.

The U.S. Environmental Protection Agency (EPA) has announced the Wildfire Smoke Preparedness in Community Buildings Grant Program, a competitive federal funding opportunity designed to help communities protect public health during wildfire smoke events. The program supports projects that improve indoor air quality in community buildings, including municipal facilities, community centers, schools, and emergency shelters.

Eligible activities include developing smoke readiness and response plans, public outreach and training, deployment of indoor air quality monitoring equipment and portable air cleaners, designation of cleaner air shelters, and capital improvements such as HVAC upgrades, filtration enhancements, and weatherization. The EPA will award grants ranging from $350,000 to $2.5 million, with project periods of up to three years.  

Applications are due April 15, 2026, at 11:59 p.m. through Grants.gov.

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

Last Thursday, the Assembly Oversight, Reform, and Federal Relations Committee advanced A-3877, which proposes to establish certain state funding preferences for municipalities that enhance opportunities to develop housing. This legislation passed both chambers last session and was pocket vetoed last session by former Governor Murphy.  

The League, along with the New Jersey Conference of Mayors, has long argued against proposals which preempt local zoning, and override local master plans, redevelopment proposals, and municipal housing plans. This legislation advances an incentive-based approach. For this to be most effective, this legislation needs an appropriation. 

Amendments to the bill in the last session, which are reflected in the current version, removed all references to “State aid” and replaced it with “financial assistance competitively awarded by the State” and clarified that the bill places no new mandates and requirements on municipalities. In addition to State aid, the bill does not apply to programs administered by the Department of Community Affairs in support of shared services, programs that allow multiple municipalities to join a single application for competitively awarded financial assistance, and programs where other entities in addition to municipalities may apply, as well as the Main Street New Jersey Program. 

We would like to thank Assembly Speaker Coughlin and the other sponsors for positively addressing so many of our concerns in this legislation regarding local discretion, the process, potentially impacted funding programs, and providing broader opportunities for municipal consideration. 

We hope that this approach can serve as a model going forward for partnering between the State and local governments. Importantly, this bill is permissive for municipalities and does not seek to preempt local zoning, land use, and municipal objectives.  

The legislation stands at 2nd reading in the Assembly. S-2960. The Senate counterpart has not yet been considered in the Senate Community and Urban Affairs Committee.  

Contacts: Mike Cerra, Executive Director, 609-695-3481 x. 120, mcerra@njlm.org or Paul Penna, Director of Government Affairs, 609-695-3481 x. 110, ppenna@njlm.org

The New Jersey Protecting Against Climate Threats Resilient Environments and Landscapes (NJPACT REAL) rules were adopted to impact communities throughout New Jersey through the development process to influence climate change, reduce flooding impact with stormwater requirements, provide wetlands protections, and streamline the permit process. 

The Association of New Jersey Environmental Commissions (ANJEC) and the New Jersey Society of Professional Engineers are hosting two identical webinars concerning the NJPACT REAL rules and how they apply to your municipality and projects in your community and what actions you need to take to comply with the rules. These webinars are for planners and engineers engaged in site plan design and infrastructure planning, planning and zoning board members, and environmental commissioners.  

The webinars will be held via Zoom on Tuesday, March 3 at noon and Thursday, March 5 at 7 p.m. The webinars are free for ANJEC members and $25 for non-ANJEC attendees. Please register to attend and the Zoom link will be sent as confirmation.  

Contact: Erin Knoedler, Legislative Analyst, 609-695-3481 x. 116, eknoedler@njlm.org

A new federal funding opportunity is available through the U.S. Environmental Protection Agency (EPA)’s Environmental Education Grant Program. This grant program supports local- and regional-focused environmental education projects designed to increase public awareness, build environmental literacy, and promote community stewardship. Funded projects should help participants develop the knowledge and skills needed to make informed decisions that protect human health and the environment, with an emphasis on measurable educational outcomes. Eligible applicants include municipalities, state agencies, nonprofit organizations, colleges and universities, and other qualifying entities 

The EPA anticipates awarding approximately $3.2 million in total funding, with individual awards generally ranging from $200,000 to $250,000 for project periods of up to two years. We encourage applicants to review the full Notice of Funding Opportunity on Grants.gov for eligibility requirements, project priorities, and the March 3 application deadlines before applying. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The League recently signed onto a letter with other state municipal leagues and local government organizations advocating positions beneficial to local governments in the upcoming surface transportation reauthorization legislation. 

The current surface transportation funding is due to expire on September 30.  

The committees in both the House and the Senate are actively negotiating over base text, which means that we are at a pivotal moment in the process.  

The letter focuses on three core priorities that are important for local governments in every state in the country: 

Local Partnership: As the level of government closest to our shared constituents, local governments are best positioned to identify which transportation investments will deliver the greatest benefit on the ground. To do this, Congress should: 

• Expand the suballocated share of Federal-aid Highway Program formula funding, including the most flexible formula program--the Surface Transportation Block Grant (STBG).
• Strengthen project selection processes to ensure that regional planning organizations in urban and rural area scan effectively access and program available funds.
• Preserve discretionary funding programs with a strong local nexus, such as the Safe Streets, BUILD, and the Railroad Crossing Elimination grant programs, to advance discrete, high-impact projects that fall outside traditional formula structures.

Safety First: Local governments strongly agree that safety must be a top priority for the transportation system. We urge Congress to retain the Safe Streets program in the next bill and consider adding local suballocation provisions to the Highway Safety Improvement Program (HSIP), giving local governments predictable, formula-based funding to address urgent needs and advance traffic safety goals in our communities.  

Rebuild Bridges: Local governments play a role in bridge ownership and maintenance in every state in the country. We urge the continuation of a formula bridge program paired with a suballocation requirement to ensure meaningful improvement to both local and state-owned bridges. Suballocation levels could be calibrated based on local ownership within each state. 

During this reauthorization process, we may communicate a need for you to reach out to your Member of Congress about the importance of these principles in the reauthorization. 

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

The Department of Environmental Protection sent a letter to Mayors, Municipal Public Works Superintendents, and Stormwater Program Coordinators in anticipation of the 2026 beach season, reminding municipalities to take proactive steps to meet Municipal Stormwater Permit (MS4) requirements.  

From mid-May through September, local health authorities monitor recreational beach water quality for bacteria such as Enterococci (marine) and E. coli (freshwater). Elevated levels can lead to swimming advisories or beach closures, affecting community safety and economic activity. Tourism is a major economic driver for coastal communities, and water quality issues have the potential to harm public confidence and local revenue.  

Best Practices for DEP-W and Technical Teams:  

• Inspect and clean storm drain inlets and catch basins to prevent debris and bacteria buildup.
• Conduct street sweeping and dry weather outfall inspections to detect illicit discharges early.
• Enforce ordinances addressing improper waste disposal, pet waste, and wildlife feeding.
• Educate residents on stormwater impacts and ensure private stormwater facilities are maintained.

For assistance or questions, contact Environmental Scientist 4, NJ’s Beach Monitoring Program Manager Sheri Shifren at 609-940-4823 or Sheri.Shifren@dep.nj.gov.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

On February 5, the Senate Community and Urban Affairs Committee amended and released S-1807, which requires municipalities to share PILOT funds with school districts and inform counties, school districts, and the Department of Community Affairs (DCA) of certain information related to property tax exemptions and abatements. The bill has been referred to the Senate Budget and Appropriations Committee. The League opposes S-1807. 

As amended, the bill would require that any revenue received from a PILOT’s annual service charge be used solely and exclusively by the municipality, county, or school district for the purpose of reducing the amount that is required to be raised through the local property tax levy.  

In addition, the bill would require: 

• The urban renewal entity provides copies of their applications for informational purposes to the County Executive, County Commissioners, School Superintendent, and Board of Education. If the municipality is in a regional school district, copies must be provided to the regional School Superintendent and Board of Education. 
• The urban renewal entity must also provide the Division of Local Government Services with a copy of the application, which will then be posted on the Division’s website. 
• The Mayor or the municipality’s Chief Executive Officer and the urban renewal entity, within five business days of receipt of a PILOT application, must notify the school district(s) Board of Education and School Superintendent of the application and the urban renewal entity and municipality’s desire to enter into good faith negotiations for an agreement. 
• The Superintendent(s) will lead the negotiations on behalf of the board(s) concerning the agreement with the municipality and urban renewal entity. The board(s) must approve by resolution within 90 days to enter into an agreement. If an agreement is not entered into within 90 days, the municipality must continue to process the application.  
• The municipality must copy the county and school(s) of the Mayor’s recommendations to the governing body on the application simultaneously. The county and school(s) will have 10 days to submit recommendations to the agreement. The municipality is required to give “due consideration” to the submitted recommendations.  
• Requires the urban renewal entity, within 90 days of the close of its fiscal year, to certify to the municipality the number of school-age children residing in the approved project who are attending a public school. Copies of this certification must be submitted to the DCA, which must post the certification on its website.  
• Provides the Commissioner of Education, in consultation with the Division of Local Government Services, with rulemaking authority for the calculation and distribution of PILOT funds to the schools. 

If the school does not enter into an agreement with the urban renewal entity, the amount of the PILOT funds to be given to the school(s) for non-residential projects or mixed-use projects will be 5% of the annual service charge. For residential projects, the amount owed to school(s) is based on the following formula: number of school-age children attending public school that reside in the project multiplied by the base per pupil amount determined by the Commissioner of Education for the previous school year. The payment received by the school district(s) cannot exceed the percentage of the amount of property taxes. The remittance requirements pertaining to school districts will not be applicable to a 100% low- and moderate-income housing project dedicated to housing 100% senior citizen occupants, age 62 years or older, and who qualify as low- and moderate-income households. 

While the League continues to oppose S-1807, we would like to thank the sponsor, Senator Singleton, for continuing to work with us to make the process more workable.  

Payments in lieu of taxes (PILOTs) are the single-most powerful tool available to municipalities to encourage businesses and developers to make improvements to property or to locate a project in a distressed or blighted area.  

The requirements proposed in S-1807 will significantly weaken the ability of municipalities to spur redevelopment in blighted areas through the use of PILOTs. Reallocating the PILOTs will require an increase in total PILOT payments so that the municipality, which provides the bulk of public services, can maintain services.  

This will have a critical adverse impact on the economics of redevelopment projects, and most especially those projects that require greater assistance due to environmental contamination, site conditions, or extreme blight, or which have smaller returns, for example, the construction of affordable housing.  

In authorizing PILOT agreements, municipalities determine that a project would not be built without the PILOT. A significant increase in the amount of PILOT a project pays reduces the possibility that the project will be built at all. Further consideration should be given to the negative impact on development. We have requested a fiscal note for S-1807 to understand the actual financial impact and potential disincentives that the bill will have on PILOT agreements. 

We have also requested that any discussions on the reallocation of PILOT payments be delayed until there is a broader discussion regarding the entire property tax collection process. Municipalities, not counties or school districts, expend the energy and resources to spur economic development for the benefit of the entire community. These efforts encourage new tax ratables while also promoting job growth in areas in need of redevelopment. Municipalities are also responsible for not only collecting the property tax levies of other taxing districts but guaranteeing 100% of the levy regardless of the collection. Municipalities are also responsible for defending tax appeals and paying out any judgments. In essence, municipalities assume greater risks and receive less benefit. 

We urge you to contact your Senators to explain the adverse effect S-1807 will have on your community.  

Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.

The New Jersey Department of Environmental Protection (DEP) is now accepting applications for the Youth Inclusion Initiative (YII) with $100,000 in grants. As a grant program that partners with community-based organizations to provide summer workforce training and environmental career exposure for New Jersey youth ages 16–20. Through this initiative, DEP seeks municipal youth services departments, such as recreation as well as environmental commissions, local nonprofits, and other community partners to design and implement six-week summer programs for training and development.  

With grants of up to $100,000 available to support programs, municipalities are encouraged to apply to build stronger community connections and to share with other community groups. Interested applicants can find grant guidelines, application instructions, and submission deadlines on the DEP YII Grant webpage, with proposals submitted through the DEP’s online grant system.  

The deadline is March 12, 2028. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

AARP has opened the 2026 Community Challenge grant program, offering funding to help communities become more livable through improvements to public spaces, transportation, housing, digital access, and disaster resilience. Applications are due by March 4, 2026, at 5:00 p.m. 

In its 10th year, AARP has doubled its investment and will award more than $8 million nationwide. The funding will be available across three tracks:  

• Flagship Grants (up to $15,000) for local improvements.
• CapacityBuildingMicrogrants ($2,500) paired with expert support for walkability, bikeability, home modifications, and preparedness.
• Demonstration Grants ($10,000–$25,000)to scale projects focused on pedestrian safety, broadband expansion, and housing choice.
• Eligible applicants include local governments. allprojects must be completed by December 15, 2026.

Program details and past grantees are available at AARPs Community Challenge page. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

On January 20, the DEP adopted the amendments to the NJPACT Resilient Environments and Landscapes (REAL) Rules. The adoption incorporates the August 2024 proposal and the July 2025 Notice of Substantial Change. This adoption significantly amends the Coastal Zone Management rules, the Freshwater Wetlands Protection Act rules, the Flood Hazard Area Control Act rules, and the Stormwater Management rules. In addition to changes in flood areas to account for sea-level rise and requiring higher elevations and improved stormwater management, the amended rules contain several regulations that allow certain applications to be reviewed under the previous regulations for 180 days after the REAL rules’ adoption (referred to as “legacy” provisions). The legacy period expires on July 20. The DEP will be providing a document on guidance that explains the rules’ legacy provisions, which will be available on the agency’s website.  

The League expressed concerns about this proposal during the comment period. Municipalities are still encouraged to review the adopted REAL rules to better understand how these changes would impact their community.  

The DEP’s previous REAL Rules publications can be accessed on their website. You can also review the League’s previous blog posts.  

Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

On January 20, Governor Sherrill was sworn in as New Jersey’s 57th Governor. In her inauguration speech, she declared a state of emergency on utility costs and, in turn, signed two Executive Orders on the topic. Later in the day in Trenton, she signed four additional Executive Orders.   

Each executive order is summarized below. Executive Order No. 1 This Executive Order uses the State’s authority to offset upcoming rate increases from the regional grid operator PJM. The Executive Order will: 

• Require Board of Public Utilities (BPU) to provide for Residential Universal Bill Credits to offset increases, due to take effect in 2026, in the cost of electricity supply relying on the same or similar sources of funding addressed in BPU’s August 13,2025order,
• Empowers the Board of Public Utilities (BPU) to pause or modify utility actions that could further increase bills.
• Requires BPU, within180 days, to complete and issue a study regarding modernization of the traditional electric distribution utility business model.BPU will be required to hold at least one public stakeholder session during the development of the study.

Executive Order No. 2 This Executive Order declares a State of Emergency under the Disaster Control Act and creates and expands multiple, expedited State programs to develop massive amounts of new power generation in New Jersey It also tackles permitting challenges and drive-up costs. The Executive Order will address the state-level and interconnection delays at the utility level that hold up projects 

• Require BPU toaccelerates thedevelopment of distributed and utility scale solarelectrity
• programs to add thousands of megawatts of new solar and battery storage generation.
• Directs state agencies to identify permit reforms to more rapidly deploy new energy projects.
• Requires the Department of Environmental Protection (DEP) to take certain measures to modernize the natural gas-fired power plants already operating in New Jersey and better enable those plants to generate more electricity more efficiently, with less carbon output, and at their maximum capacity.
• Directs BPU to take action on artificial intelligence “ghost loads” by requiring electric utilities to report on energy requests from data centers.
• Establishes a Nuclear Power Task Force to position theState to lead on building new nuclear power generation.

 Executive Order No. 3 This Executive Order establishes the ethical standards to be followed by public employees and officers serving in the Sherrill administration. The Executive Order will continue the: 

•  personal financial disclosurestatementrequirements for designated public employees and officers.
• provision for the establishment of a blind trust for certain public employees and officers.
• disclosure of a public employee or officer's interests in closely held corporations or other business entities.
• Code of Conduct applicable to the Governor and Lieutenant Governor.

Executive Order No. 4 This Executive Order establishes the Office of the Chief Operating Officer (COO) within the Office of the Governor, a position designed to drive efficiency, transparency, and accountability across State government. The order outlines key roles and responsibilities of the COO, as well as the structure of the Office and how State agencies will interact with the Office of the COO. The Executive Order will: 

• Establishes the roles and responsibilities of the COO, includingto serveas the Governor's principal advisor on strategic initiatives, operational performance, and organizational effectiveness , and to leadthe Governor’s efforts to improve customer service and streamline permitting and regulatory processes across agencies.
• Establishes the overall structure of the Office of the COO, including an Office of Strategic Initiatives & Economic Opportunity to support the implementation of the Governor’s strategic priorities and an Operational Performance Office to improve processes and effectiveness across government.
• Establishes other roles within the Office of the COO focused oncabinet affairs, constituent relations, administration, and the Governor’s office operations.
• Requires State agencies to designate liaisons to coordinate with the Office of the COO.

Executive Order No. 5 This Executive Order takes action to reduce permitting delays and costs, boost accountability in the permitting and regulatory process, and expand transparency into how taxpayer dollars are spent. The Executive Order will:  

• Establish a Cross-Agency Permitting Team within the Office of the Chief Operating Officer to streamline and expedite the State permitting processes to reduce project delays and costs and to improve customer service, transparency, and accountability for permit applicants.
• Requires State agencies, within90 days, to catalog all the types of permits they issue and submit this information to the Cross-Agency Permitting Team.
• Directs the Cross-Agency Permitting Team to develop apermittingdashboard that displays the status and progress ofState permit applications for projects in New Jersey and permitting process timeframes (shot clocks) that reduce permitting review and approval delays.
• Establishes a Regulatory Simplification Team, within the Office of the Chief Operating Officer, to reform State regulatory structures and processes to reduce project delays and costs.
• Creates the New Jersey Report Card, an interactive public-facing online portal that provides information onState-funded programs and what they are delivering for residents, and includes an interactive budget analysis tool.

Please note that part of the Cross-Agency Permitting Team mandate is to “work with local governments to integrate and streamline local permitting processes and state permitting processes where possible”.  In addition, the Permit Catalog requires a detailed description of all stages of the approval process, including “any involvement of other federal, state, or local government entities in the approval process.”  

Executive Order No. 6 This Executive Order takes action to protect kids online and improve children’s mental health. It creates a new office within the Department of Health to coordinate whole-of-government efforts to keep kids safe online and directs all State agencies with jurisdiction over issues pertaining to children and their interaction with technology platforms to prioritize children’s mental health outcomes. The Executive Order will: 

• Orders relevant agencies to prioritize children’s mental health outcomes and conduct ongoing stakeholder engagement with kids, parents, educators, and mental health professionals to inform their efforts.
• Requires agencies to review their existing policies and regulatory frameworks to identify opportunities to promote healthy internet and social media use.
• Tasks the COOwithcoordinating with agencies on this matter.
• Establishes the Office of Youth Online Mental Health Safety and Awareness in the Department of Health to coordinate with State agencies and generate policy proposals to improve children’s safety.

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

The National League of Cities (NLC), the League’s federal partner, alerted us to the fact that the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee opened their internal Congressional portals to accept nominations/requests from Congressional members for Army Corps projects and/or water infrastructure projects. The parameters are slightly different for each committee: 

House Transportation and Infrastructure Committee 

• Members of Congress can submit requests on Army Corps projects/authorizations pertaining to flood control, navigation, and ecosystem restoration through the end of January.

Senate Environmental and Public Works Committee (no specific Water Resources Development Act page) 

• Members of Congress can submit requests on Army Corps projects/authorizations pertaining to flood control, navigation, and ecosystem restoration through Feb. 6.
• Members of Congress can also submit water infrastructure reauthorization requests to the portal. This is not for specific project earmarks, but rather general requests around maintaining level funding from IIJA levels (plusinflation) for keywater infrastructure funding and financing programs, such as the Clean Water and Drinking Water State Revolving Funds, Water Infrastructure Finance and Innovation Act, and direct grants to local governments. 
• NLC also has an online form for local leaders to take action on both surface transportation and water infrastructure reauthorization

On EPA water infrastructure programs, the reauthorization process is beginning in the House and Senate, but only the Senate has an official portal open for Senator priorities. 

We encourage you to review this information from NLC and reach out to your member of Congress if there is a specific request in your municipality.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

In a year of celebrations, municipalities have so much going on to share with residents! 

Finalize your plans for Local Government Week 2026. We invite you to join in with municipalities across the Garden State from April 12-18 to engage citizens while celebrating the work of local government.  

NJ Local Government Week is a time for municipalities to encourage civic education, community collaboration, volunteerism, and local pride. Share your activities with the League and use the hashtag #NJLocalGovt on social media when sharing event reminders, updates, and interesting facts via X and Facebook. 

For more information, visit the NJ Local Government Week page. 

Contacts: Amy Spiezio, Editor, aspiezio@njlm.org, 609-695-3481, x123, or Taran Samhammer, tsamhammer@njlm.org, 609-695-3481, x124.

The New Jersey Economic Development Authority (EDA) is hosting an upcoming Garden State CPACE informational webinar. The Garden State Commercial Property Assessed Clean Energy (CPACE) Program allows eligible commercial property owners to access capital for energy efficiency upgrades, renewable energy projects, and water conservation improvements repaid through a property-based assessment. This webinar is an opportunity to learn how adopting a local CPACE ordinance can support economic development while advancing sustainability goals. 

Interested municipal officials, planners, and economic development staff are encouraged to attend the free virtual session held on January 28 at 1:00 p.m.  

Registration is open through the NJEDA event page.  

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The New Jersey Historic Trust, an affiliate of the Department of Community Affairs (DCA), has announced a new round of funding through the Historic Preservation Fund Grant Program for community preservation planning with up to $10 million anticipated for this round. Through this grant program, municipalities can pursue funding for preservation planning, local historic preservation ordinances, architectural surveys, heritage tourism initiatives, and capital construction projects.  

Eligible applicants include municipal governments, counties, state agencies, and qualified nonprofits. The full guidelines and the application portal are available on the New Jersey Historic Trust webpage. Applications and supporting documents are due by April 16, 2026. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The Division of Local Government Services (DLGS) has issued Local Finance Notice 2026-01 (LFN) concerning the changes to legal notice publication requirements after the passage of P.L. 2025, c. 72.  

As defined in the Open Public Meetings Act (N.J.S.A. 10:4-8, OPMA) a newspaper utilized, or permitted to be utilized, by a person or public body for the purpose of complying with issuing or publishing legal notices is deemed eligible for the same purposes until March 1, 2026, regardless of whether the newspaper publishes in print or electronic (i.e., online) format. 

After March 1, 2026, the local government entity must make the complete text of the legal notice accessible on its official website free of charge. The website publication requirement will supersede the current newspaper publication of legal notices, including any requirements to publish in a newspaper with statewide circulation. A local government entity must set up a dedicated legal notices webpage on its official website and make the complete text of each legal notice available for at least one week from the date of initial posting or the time period required by law. For notices that are to be prepared in a specific manner (i.e., specific font), the local government entity should follow the same format. Additionally, the direct hyperlink to the local government entity’s legal notices webpage should be conspicuously posted on the home page of the official website, so it is easily accessible to the public. Local government entities should be mindful of formatting as members of the public may be using their mobile devices to view notices and the webpage.  

By March 1, 2026, local government entities must start maintaining an archive for legal notices that have been removed from the webpage, and the archive must be published on the official website by July 1, 2026. An archived legal notice must be maintained in the local government entity’s Internet archive for at least one year after having been transferred from the official webpage. The archive is not subject to any records retention schedule adopted by the State Records Committee or the Destruction of Public Records Law of 1953 (N.J.S.A. 47:3-15 et seq.). Archived legal notices should also be maintained offline to enable restoration in the event of a technical malfunction or a cybersecurity incident. 

Starting on January 1, 2026, and for at least twice per month through December 31, 2026, a local government entity must provide an advertisement in an online news publication meeting the eligibility requirements of the law. The publication should state that the complete text of each legal notice can be obtained and viewed by the public on the local government entity’s official website. Additionally, the publication should state that upon establishment of the hyperlink webpage by the New Jersey Secretary of State that the listed hyperlink will also be available on that website.  

Local government entities will need to implement ADA-compliant design principles for rendering links and notice content accessible to the visually impaired. Title II of the ADA prohibits discrimination against people with disabilities in all services, programs, and activities of state and local governments. A local government entity should review the Final Rule with its webmaster and legal counsel to ensure compliance. 

Local Finance Notice 2026-01 (LFN) provides additional information concerning specifics for tax collection and procurement procedures. Furthermore, additional details are provided within Local Finance Notice 2026-01 (LFN) and should be reviewed. If you have any questions, please review the LFN or call the DLGS at 609-292-6613. 

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

Earlier today, Governor Murphy delivered his final State of the State Address before a joint session of the legislature. The Governor’s address focused on his past eight years as Governor.  

Reflecting on the “stronger and fairer” agenda, the Governor highlighted his administration’s accomplishments, including the following:

• Responding to Covid 19 pandemic 
• Increasing the minimum wage 
• Enacting the millionaire’s tax 
• Doubling property tax relief
• Reforming criminal justice system 
• Increasing funding for k-12 schools 
• Completing election reforms, such as expanding early in-person voting, restoring voting rights to people on probation or parole, establishing automatic voter registration 
• Restoring funding for pensions, public transit, women’s healthcare 
• Achieving nine consecutive credit rating upgrades 
• Establishing New Jersey as a safe haven for reproductive freedom
• Appointing five State Supreme Court justices
• Securing investments in infrastructure such as the Portal North Bridge
• Launching 12 Strategic Innovation Centers
• Growing film and television production industry, with Netflix, Lionsgate, and 1888 Studios, as well as Paramount Skydance’s signing of a long-term lease
• Developing New Jersey’s AI Moonshot
• Enacting laws to mitigate the risk of new tools and technologies
• Increasing State surplus from $409 million to nearly $7 billion

In addition, the Governor’s press release on his final 2026 State of State Address highlighted Governor Murphy’s enactment of “landmark legislation that streamlined the process for ensuring every municipality meets its affordable housing obligations under the Fair Housing Act, accelerating construction of new affordable housing.”

Looking forward, Governor Murphy noted, “With the dawn of 2026, we mark the beginning of one of the most iconic chapters in our state’s history. A chapter in which our New Jersey pride will be on full display, with the 250th anniversary of the American Revolution and the 2026 FIFA World Cup. These will be two of the most defining events of the century. Period."

Governor Murphy’s term will end on January 20, when Governor-Elect Mikie Sherrill is sworn in as New Jersey’s 57^th Governor. 

The New Jersey Housing and Mortgage Finance Agency recently adopted the revised Uniform Housing Affordability Controls (UHAC) pursuant to the Fair Housing Act. These rules are in effect as of December 15, 2025. 

UHAC governs the administration of affordable units and affordability controls for many affordable units in New Jersey. 

The adopted rules made several changes to the administration and affordability controls of affordable housing units in New Jersey, mostly revising previously proposed deadlines, including: 

• Affordability Average and Bedroom Distribution: 
  • Adds that for rental affordability requirements for developments approved as part of a compliance certification or that otherwise contain restricted units subject to the UHAC regulations with rent affordable to households earning 70% of regional median income may not exceed the number of very low-income unitsin excess of13% of the restricted units.
• Control Periods for Ownership Units: 
  • Changes notice requirement for exit sale from “effective date of extension” to “execution of a new deed restriction extending affordability controls.” 
  • Adds criteria for municipality to extend the affordability controls on a restricted ownership unit after receiving notice if the restricted unit is governed by a deed restriction executed prior to November 6, 2025, provided that a new deed restriction is executed according to the requirements of subsection 5:80-26.6 (h). 
  • Changes language to state that the entry and enforcement of any judgment of foreclosure on restricted ownership units shall not extinguish the affordability controls.
  • Deletes language pertaining to purchasing the unit after foreclosure.
  • Extends control period coverage for extensions of affordability controls on any restricted ownership including95/5 restrictions(previously referred to as“95/5 units” by HMFApertaining tothe apportionment and distribution of proceeds that result from a non-exempt sale after theaffordabilitycontrols expire and are notextended) toNovember 6, 2025. 
• Price Restrictions for Ownership Units: 
  • Changesmaximumresale price for a restricted ownership unit from the original purchase price to the “most recent non-exempt” purchase price increased to reflect the cumulative annual percentage increases to the regional median income. 
  • Deletes language thatstatesthat condominium or homeowner association fees and special assessments charged to affordable units shall be based on the common interest percentage and the full build-out budget. 
• Control periods for rental units: 
  • Changes the deed restricted control period for municipality extension from when it “has not already ended but will” end to when it “ends.”
  • Changes notice requirement for municipality to extend affordability controls from no later than180 daysprior to the “effective date of extension” to “execution of a new deed restriction extending affordability controls.” 
  • Extends notice requirement for owner of intent to extinguish affordability controls on the unit at the end of the control period from no earlier than180 daysto “1 year” before the end of the control period.  
  • Extends control period coverage for extensions of affordability controls on restricted rental units to November 6, 2025.
• Affirmative Marketing: 
  • Changes the plan to a “process.” 
  • Includes group homes to supportive housing units required tocomply withthe affirmative marketing requirements of their respective sponsoring programs, where applicable. 
• Household Certification and Referral: 
  • Removes language stating that supportive housing units may be exempted from the random selection process when referring households to affordable units, with the approval of the Division.  
  • Adds that supportive housing units, including group homes, must comply with the selection processes of their respective sponsoring programs, where applicable.
  • Adds a fourth occupancy preference option for municipalities involving existing restricted units undergoing approved rehabilitation for the purpose of preservation or to restricted units newly created to replace existing restricted units undergoing demolition, and a preference for the very-low, low, and moderate-income households that are displaced by the rehabilitation or demolition and replacement. 

Please read the HMFA’s FAQ on the rule proposal for additional information about the rules. The League has reassembled the working group to review the new UHAC Rule proposed changes and comments, and will provide a more in-depth review.  

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

The Division of Local Government Services (DLGS) and the State’s Shared Services Czars has announced the FY 2026 Local Efficiency Achievement Program (LEAP) Grants program to continue the advancement of shared services initiatives by offering financial support to counties, municipalities, school districts, county colleges, commissions, authorities, and fire districts.  

Grants will be accepted on a rolling basis, with a final submission deadline of April 15, 2026.  Due to limited funding, municipalities are encouraged to apply early. 

Per the LEAP guidelines, $2 million is available in funding and allocated across three grant types, each with its own purpose and spending rules. Counties can receive up to $75,000 through the County Shared Services Coordinator Grant to fund a coordinator for advancing shared services opportunities. Challenge Grants offer up to $150,000 for shared services proposals and planning efforts that demonstrate potential cost savings or improved service delivery. Implementation Grants provide up to $200,000 to cover shared services agreements, such as technology upgrades, equipment purchases, personnel transition costs, legal or professional services, training, and facility modifications needed to consolidate or merge services. 

Applications must be submitted through the Department of Community Affairs’ (DCA) SAGE portal under the “Local Efficiency Achievement Program 2026 Grant” ID. Other comprehensive program guidelines, application materials, and supplemental resources are available on the DLGS website.  

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

Acting Governor Way signed into law S-1277, which requires each municipality to submit to the Department of Community Affairs information quarterly on the affordable housing units, affordable veterans housing units, and affordable senior citizens housing units located within the municipality. The information must include the following information: 

• Name and address of each building, complex,or development in which such affordable housing is located.
• Name of the administrative agent who manages the placement of occupants in the property.
• Whether applications are being accepted for tenancy or purchase in any identified housing unit.
• Whether there is a wait list for tenancy or purchase in any identified housing unit.
• Instructions on how to apply for placement in any identified housing unit, including a link to apply online if applicable.
• Any other information useful to the public as determined by the Department of Community Affairs Commissioner.

This information must also be published on the websites of the municipality, Department of Community Affairs (DCA), and New Jersey Housing Resource Center of the New Jersey Housing and Mortgage Finance Agency (NJHMFA).  

P.L. 2025, c. 178 will take effect on February 15, 2027. However, the law permits the DCA and NJHMFA to take anticipatory action prior to the effective date.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x. 110 

Acting Governor Way signed into law S-3041, which prohibits cooperatives from receiving public works contracts when cooperative-approved vendors fail to pay prevailing wage; concerns cooperative purchasing agreements with other states; and permits contracting units to award certain indefinite contracts.  

Specifically, the new law prohibits a cooperative from being awarded a public works contract if they have failed to pay prevailing wages. A cooperative is defined as a “system of collective ownership of a corporation or other legal entity in which the shareholders or other co-owners each have a long-term proprietary interest or other long-term arrangement of control over the operation of the business.” 

In addition, the new law permits a contracting unit to only purchase and contract for construction services for a public works project through a cooperative purchasing agreement competitively bid in compliance with this law and set by a contracting unit in the State of New Jersey. Public works projects undertaken by a contracting unit through a cooperative purchasing agreement are subject to the “Public Works Contractor Registration Act” and the “New Jersey Prevailing Wage Act.” A contractor is prohibited from performing public works projects under a cooperative purchasing agreement if they fail to provide copies of submitted certified payroll records on more than three occasions or have been found to violate the New Jersey Prevailing Wage Act.  

Such contractors must submit copies of certified payroll records for every public works construction project performed under the contract and retain such documents for three years. To ensure compliance with the Prevailing Wage Act, a contracting unit must verify and maintain an accurate copy of the name, principal business address in the state, and telephone number of the contractor; or if the contractor’s principal business address is not within the state, the name and address of the contractor’s custodian of records and agent for service of process in this state. 

A contracting unit that uses a cooperative contract must post on their website upon award of such contract the following information for all public works projects: the contracting unit where the project will be completed, the cooperative purchasing contract number, the contractor performing the work, the cost of the project, and confirmation certified payroll records were received.  

A contracting unit implementing a cooperative purchasing agreement must solicit the Debarment List from the Department of Labor. A contracting unit is prohibited from awarding a contract to a debarred contractor or subcontractor. In addition, the contracting unit must verify on a monthly basis after contract award and through the duration of the contract term that the contractor or subcontractor has not been added to the debarment list.

The use of nationally recognized and accepted cooperative purchasing agreements by a contracting unit are subject to the rules and regulations adopted and promulgated by the Division of Local Government Services, in consultation with the Division of Purchase and Property Director, Commissioner of Education, and Secretary of Higher Education.

The new law also permits a contracting unit to award indefinite delivery, indefinite quantity contracts with a set term for goods or services, including public works, without final plans and specifications for an individual project, provided that the contract advertisement promotes free, open, and competitive bidding and sets forth a process by which individual purchase orders may be issued. A contracting unit may issue purchase orders under an indefinite delivery, indefinite quantity contract, provided the items for delivery were specified in the contract advertisement and a process for adding items for delivery is provided in the contract advertisement. The Division of Local Government Services, in consultation with the Commissioner of Education and Secretary of Higher Education, must adopt rules to implement this new provision. 

The new law prohibits a contracting unit from using “time and materials” contracts available through cooperative purchasing agreements for public works projects subject to the New Jersey Prevailing Wage Act.  

P.L. 2025, c. 180 will take effect on March 23, 2026. 

Contact:  Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x. 112 

On December 17, the State Planning Commission formally adopted a new State Development and Redevelopment Plan. This is the first update since 2001.  

The State Development and Redevelopment Plan serves as a guide to inform the public and encourage State agencies, counties, and municipalities to align their land use policies with its vision. It aims to promote a balanced and inclusive strategy for managing and guiding growth across New Jersey, centered on 10 key land-use priorities. 

At its most fundamental level, the plan is an advisory framework for good planning in every region and at every level of government in New Jersey. While certain principles of the planning discipline are universal and evergreen, the efficacy of their application requires the informed consideration of context. As such, the 10 goals of this State Plan represent an articulation of 10 enduring principles to ensure a bright, sustainable, and resilient future for New Jersey. They are presented with equal weight and significance and are presented without ranking or enumeration.  

The updated Plan lays out 10 goals and builds upon the State’s ongoing initiatives to address the following areas: 

1. Economic Development
2. Housing
3. Infrastructure
4. Revitalization and Re-centering
5. Climate Change
6. Natural and Water Resources
7. Pollution and Environmental Cleanup
8. Historic and Scenic Resources
9. Equity
10. Comprehensive Planning

Included along with the adoption, the cost of New Jersey’s estimated infrastructure needs through Fiscal Year 2031 ranges from $104 billion to $311 billion on a range of priorities including transportation; energy; telecommunications; farmland retention; shore protection; water supply; wastewater disposal; stormwater management and flood protection; public recreation and open space; public healthcare; solid waste management; public education; higher education; public libraries; arts, culture, and historic resources; public safety, justice, and corrections; and publicly subsidized affordable housing. 

The League will review the plan and report back in the near future. As local governments are responsible for land use planning, we encourage municipalities to review the plan and enact priorities that you determine are appropriate and in the best interests of your community and its residents.  

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

The Assembly Science, Innovation and Technology Committee heard from academic experts on ways to alert the public when flooding is imminent. None of the legislation was considered at this hearing but will likely be in the next legislative session. 

Several academic experts from Rutgers University, NJIT, and Stevens Institute of Technology provided their thoughts and shared examples of instruments that could help alert systems.  

Impacted League affiliates reviewed the legislation and provided comments. League staff testified that there are concerns regarding increased costs, increased regulation, and the need for flexibility. We offered to be a resource to the sponsor to improve the legislation. The legislation that was discussed and listed on the agenda are:  

A-5991: Requires DEP to establish online flood, rainfall, river levels, and sewer capacity dashboard. 

A-5992: Establishes “Smart Stormwater Sensor Pilot Program” in DEP; appropriates $1 million. 

A-5993: Requires State Office of Emergency Management to establish hyperlocal text alert system for flood and severe weather conditions.  

A-5994: Requires DEP to establish program to map stormwater infrastructure. 

A-6036: Directs DEP to establish artificial intelligence flood prediction and mapping tool. 

If you would like to share comments on this package of legislation, please email Paul Penna at ppenna@njleg.org who will share the information with the sponsor.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

Governor Phil Murphy announced the release of the 2024 Energy Master Plan (EMP), a guide for future energy policy in New Jersey. The report compiles data and recommends steps for future goals based on supply and demand. 

The EMP focuses on compiled data through October 25 from over the past 22 months. The goal was to incorporate the latest advancements in technology, policy, and programming to create affordable and clean energy. The report was prepared by a consulting team from Energy and Environmental Economics (E3), ILLUME Advising, and BW Research.  The output of the 2024 EMP is a framework of strategies and policies that includes: 

• Accelerating Clean Energy Deployment: Increasing clean energy growth, such as solar, wind, advanced nuclear, green hydrogen, and battery storage. In doing so, the goal is to reduce electricity imports, boost in-state generation, grow clean energy jobs, increase resource diversity, and support long-term cost stability.
• Expanding Decarbonization and Efficiency Programs: The goal in expanding energy efficiency programming is for long-term bill reduction for participating residential and commercial customers.
• Ensuring a Reliable and Modern Grid: The New Jersey Board of Public Utilities has adopted the first set of regulatory changes aimed at improving transparency and the speed of interconnection for distributed energy resources.
• Transportation Electrification: New Jersey has made strides in advancing transportation electrification across multiple agencies to accelerate zero-emission vehicle (ZEV) adoption and expand charging infrastructure. The State’s strategy has included consumer incentives, utility investments, regulatory streamlining, and public-private partnerships.
• Ensuring Energy Affordability and Environmental Fairness: The Energy Equity and Affordability Report recommended expanding bill assistance, piloting time-of-use rates that offer lower-cost charging during off-peak periods, and lowering upfront costs of energy efficiency, heat pumps, and EVs for low- and moderate-income customers.
• Enhancing Regional Coordination and Advocacy: New Jersey recently joined with 10 other PJM States to sign a Statement of Intent to create a formal PJM Governor’s Collaborative to jointly address key challenges facing the region. The report recommends the continuation of that collaboration. 
• Driving Innovation and Workforce Development: The 2025 Growing Green Jobs report notes a 12% increase in the green economy workforce. Initiatives would include clean energy training hubs, apprenticeship expansion, and funding wraparound services for trainees in overburdened communities.

Please review the components of the Energy Master Plan for the impact on your municipality. 

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

In a recent decision, the New Jersey Supreme Court denied certification in a long-running case between Blackridge Realty and the City of Long Branch. The Court’s denial significantly clarifies a major issue within the redevelopment law community-the scope and lawfulness of redevelopment fee payments under the Local Redevelopment and Housing Law (LRHL). The Court’s denial of certification confirms the Appellate Court ruling that such payments may be lawful, provided they are reasonably related to and supportive of the broader purposes of the municipality’s redevelopment program.  

The Blackridge Realty v. City of Long Branch case arose from a redevelopment agreement between the City and a private redeveloper involving property within the City’s Oceanfront-Broadway Redevelopment Area. Under the agreement, the redeveloper agreed to pay the city a $2 million “redevelopment fee” provided that the fee would benefit the City’s redevelopment areas and serve as an additional community benefit to address redevelopment activity impacts within the City. The City used the redevelopment fee to renovate a neighboring senior center for local residents. Although the senior center was near but outside of the official redevelopment area, both the City and the courts determined that the use of funds was consistent with the purposes of the LRHL. Blackridge Realty, a property owner within the same designated redevelopment area subsequently challenged both the payment and the plan amendment and appealed the planning board’s approval of the site plan as well as the New Jersey Department of Environmental Protection’s issuance of a Coastal Area Facility Review Act (CAFRA) permit for the project.  

The Appellate Court rejected Blackridge Realty’s claims, highlighting the distinction between the Municipal Land Use Law (MLUL) and the LRHL. The Appellate Court found that the latter does not impose a direct nexus or statutory-use limitation but grants municipalities broad flexibility in authorization of negotiations and collection of payments from redevelopers. The court concluded that so long as payment is reasonably related to the municipality’s broader redevelopment purposes, it is lawful under the LRHL.  

The Blackridge Realty decision gives municipalities flexibility under the LRHL to apply redevelopment-related funds to projects that serve the public interest and advance broader revitalization goals, even when those projects are not actually located within the redevelopment zone.  

Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

Governor Murphy recently signed legislation requiring that members of Historic Preservation Committees complete training to serve on the committees. P.L. 2025, c. 149 will take effect on November 30.  

The new law requires the Department of Community Affairs (DCA) to prepare and offer a one-day course with no more than five hours of scheduled instruction in historic preservation planning. The standards for the curriculum and administration of the course will be in conjunction with DCA, New Jersey Historic Trust, and New Jersey State Historic Preservation Office.  

Starting after the first date in which the course is offered, regular, alternate, and prospective members of a Historic Preservation Committee must complete the course within 18 months of assuming committee membership. Existing members must complete the course within 18 months of the first course offering. Licensed professional planners and those offering proof of completing a more extensive training course are exempted from the new training requirements. 

A hearing or proceeding held or decisions or recommendations made by the Historic Preservation Committee are not invalidated if a member participating in the hearing, proceeding, decision-making, or recommendations has not completed the historic preservation planning course required by the new law. 

Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.

On Monday, Governor Murphy conditionally vetoed A-4124/S-2961 that establishes qualifications for public works contracts.  

This bill establishes minimum qualifications for persons employed through a public works contract. Any contractor submitting a bid for a contract which is paid for in whole or in part out of the funds of a public body in this state will certify that each employee completing work established in the contract meets at least one of the following qualifications: (1) has earned a high school or a General Educational Development (GED) diploma; (2) is currently enrolled in an apprenticeship program that is equivalent to the apprenticeship standards of the building and construction trade union that is specific to their craft; or (3) has completed four years of documented work as a tradesperson that can be verified by their tax filings. 

Governor Murphy conditionally vetoed the legislation proposing changes to provide the Department of Labor and Workforce Development (DOLWD) properly and more effectively administer the requirements of the bill and to effectuate a uniform procedure for the submission of documentation by requiring that contractors submit a form to DOLWD.  

The Governor’s veto also would require that journeypersons meet one of two requirements: journeypersons must either (1) have graduated from a registered apprenticeship program that meets the “Standards of Apprenticeship” as provided in 29 C.F.R. s. 29.5 for the craft or trade of the respective journeyperson that are equivalent to those of a United States Department of Labor registered apprenticeship program; or (2) have completed four years of documented work experience verified through pay records or sworn statements of the craft worker and their employer.  

If the legislation moves forward, we will keep you updated.  

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

Governor Murphy recently signed legislation that requires employers or contractors engaged in work for a public body, which includes PILOT projects, to submit payroll records to the Department of Labor. P.L. 2025, c. 152 will take effect October 20, 2026; however, the Department of Labor may take anticipatory administrative actions in advance to implement this new law. 

N.J.S.A. 34:11-56.31 has been amended to expand the Department of Labor Commissioner’s authority to investigate and ascertain the wages of workers to include other work for a public body. The new law defines “work for a public body” used in N.J.S.A. 34:11-56.31 as construction, reconstruction, demolition, alteration, custom fabrication, duct cleaning, or repair work, or maintenance work, which is done under contract and paid for in whole or in part out of the funds of a public body, done on any property or premises owned or leased by the public body or under agreement to be owned or leased by the public body, or undertaken in connection with any loan, loan guarantee, grant, incentive, expenditure, investment, tax exemption or other financial assistance approved, funded, authorized, administered, or provided by a public body, or undertaken to fulfill any condition of receiving any of the financial assistance. 

In addition, any employer or contractor engaged in any work for a public body, within 10 days of receipt of a request, is required to file with the Department of Labor any and all records, books, registers, payroll, and other records related to the question of wages, hours, and other conditions of employment. If the employer fails to provide the requested records within 10 days, the Department of Labor may direct, within 15 days, that the public entity’s financial officer charged with disbursement of funds for the public project to withhold up to 25% of the payment, not to exceed $100,000. Any funds held must be immediately released upon a notice from the Department of Labor indicating that the records request has been satisfied.  

The law requires the Department of Labor to differentiate between the manner of filing records for a contractor subject to the Prevailing Wage Act and a contractor not subject to the Prevailing Wage Act. The law also exempts a contractor who performs work for a public body and who is not otherwise required to register under the Public Works Contractor Registration Act from the definition of contractor as it pertains to that registration requirement.  

We suggest that you review this new law with your municipal attorney and procurement officials.  

Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.

The New Jersey Department of Community Affairs (DCA) has announced plans to launch a online portal for new home builders and homebuyers in early 2026. The portal will modernize how new home builders register and apply for home warranties, thereby reducing paperwork and increasing efficiency in the home warranty process.  

The portal will provide prospective homebuyers with a Builder Lookup tool that will allow them to determine whether a builder is current with their registration, which must be renewed every two years. Homeowners will be able to submit warranty claims through the portal. Upon application approval, builders will receive a QR code for their registration. The new portal can also support credit card and e-check payments. 

Builders can apply for new home warranties when a dwelling unit (single-family home, condo, townhouse, etc.) is at least 80% complete. Warranties protect homebuyers from defects in materials and workmanship for one year; defects in design and installation of HVAC, plumbing, and electrical systems for two years; and major structural defects for 10 years. 

More information about the launch can be found on the DCA’s website.  

Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

In celebration of America’s upcoming 250th anniversary, LocalGov 250 and the National Academy of Public Administration are calling for nominations for 250 individuals for recognition as Government Champions 250. The program honors exceptional individuals working in government who exemplify “democracy at the doorstep.”  

This includes elected officials, public safety personnel, public works staff, and professionals in areas like parks, libraries, transportation, health, and environmental management. Nominees must be currently employed or retired within the last ten years and demonstrate the highest standards of public service, innovation, and impact in their communities.  

The nomination window is open now and closes on November 15 with finalists selected by December 15 and honorees announced on February 1, 2026. Up to 250 Champions will be recognized with a certificate and may be invited to an event in Philadelphia in May 2026, hosted by ICMA.  

Full details and submission form available at the LocalGov 250 Champions page. 

New Jersey Funding One Stop Shop, a new online tool designed to help municipalities, has been launched to identify funding opportunities for climate mitigation and clean energy projects.  The program is developed by the New Jersey Department of Environmental Protection( DEP ) in partnership with Atlas Public Policy and funded by the U.S. EPA.  

This interactive platform matches users with federal, state, local, and utility funding based on project questions such as location, category (energy efficiency, transportation, resilience), and utility providers. The tool also flags programs that are currently closed but may reopen, helping local governments plan ahead.  

DEP is hosting a free public webinar on Monday, October 20, 2025, from 11 a.m. to noon. Municipal officials are encouraged to sign up and attend. For more information and to access the tool, visit the DEP Funding One Stop Shop.

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The New Jersey Infrastructure Bank (NJIB) announced SFY2026 Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF), an opportunity for municipalities to secure low-interest financing for water infrastructure projects. These programs allow for the upgrading of wastewater treatment facilities, replacing aging water mains, or implementing green infrastructure. They also offer cost-effective solutions that protect public health and enhance environmental sustainability.  

Applications are accepted on a rolling basis: 

• January 2026, NJDEP starts review of submissions.
• Spring 2026 loan issuance for approved projects begins.
• June 30, 2026 all funding allocated.

Municipalities, their utility managers, and engineers are encouraged to review the Applicant Guidance and visit njib.gov to access the SFY2026 Clean Water Program Brochure. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

As recently reported by the League, on July 21, the New Jersey Department of Environmental Protection (DEP) published a Notice to Receive Interested Party Comments on the JCO approving a settlement with 3M Company (3M). The settlement releases 3M from liability stemming from its sale, marketing, distribution, use, or manufacture of PFAS in New Jersey. It also precludes existing and future claims by the state’s political subdivisions.  

Comments to extend the 60-day comment period for the 3M Notice of Proposed JCO were declined by the DEP and the public comment period closed on September 19. The League submitted comments in response to the Notice as well as several of its members, experts, and other interested parties.  

Please read the League’s previous blog post with additional information on this settlement, as well as the settlement with DuPont arising out of the same incident. The 60-day public comment period for the DuPont settlement commenced on September 2. The U.S. District Court’s scheduling order has directed DEP to file its motion to approve both settlements by November 21, 2025.  

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

On September 19, the League submitted comments to the NJDEP regarding this Notice of Substantial Change, expressing continued concerns over the impact they will have on municipal governments and taxpayers. Other stakeholders, including individual municipalities and counties, have also submitted comments expressing concerns regarding the changes.  

As we have previously reported, on July 21, the New Jersey Department of Environmental Protection (DEP) proposed a Notice of Substantial Change to land use regulations through the Resilient Environments and Landscapes (REAL) Rule proposal. The DEP also published its responses to comments made during the public comment period following the agency’s August 5 changes.  

The NJDEP has indicated that final rules will be adopted in January 2026.  

Please read the League’s recent blog post with additional information on the rules and their potential impacts on municipalities. The League also held a REAL/Pact Lunch & Learn on October 3, 2024, with experts to further explain these rules.  

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

The Division of Local Government Services recently issued Local Finance Notice 2025-12 providing guidance on recently enacted legislation regarding Payment-in-Lieu of Taxes (PILOTs).  P.L. 2025, c.91, was signed by Governor Murphy on July 8 and becomes effective on October 1, 2025. The new legislation amends the Long-Term Tax Exemption Law to strengthen counties’ ability to collect their 5% share of a Long-Term PILOT annual service charge (5% county portion). The new law requires municipal tax collectors or chief financial officer who obtain payments-in-lieu-of-taxes under “Long Term Exemption Law” to transmit county portion directly to the county. The new law only applies to annual service charges received on or after October 1, 2025. 

Another key change is the requirement that, beginning with the county tax installment due on November 15, a chief municipal finance officer (CMFO) provides, with each quarterly county tax installment paid to the county, the following information for each Long-Term PILOT entered into after July 9, 2003: 

1. Project name, address, and block/lot/qualifier;  
2. Date on which the municipality entered into the agreement;  
3. Expiration date of the agreement;  
4. The annual amount due to the county; 
5. The quarterly installment of the annual service charge collected by the municipality;
6. The portion of the quarterly service charge installment due to the county [i.e. 5% of the quarterly annual service charge installment collected by the municipality] and confirming that said amount is included in the amount of county tax due; and  

Another change allows the county to now sue the municipality for the unpaid balance and interest, at the rate of 1% per month in addition to attorneys’ fees and court costs in the event that a municipality fails to pay the 5% county portion for a Long-Term PILOT when due. CMFOs may also be subject to revocation or suspension of a municipal finance officer certificate as a result of willfully and intentionally failing, neglecting, or refusing to comply with the 5% county portion requirement.  

Municipalities should also note that the 5% county portion only applies to post-July 9, 2003 Long-Term PILOT Agreements. PILOT agreements executed pursuant to a law other than the Long-Term Tax Exemption Law are not subject to the provisions of P.L. 2025, c.91.  

The CMFO will also be required to verify that the entire portion of the quarterly service charge installment due to the county is included in the quarterly county tax installment.  

Starting November 15, 2025, a CMFO will have to provide quarterly reporting to the county. A model quarterly report template has been created by the Division of Local Government Services to standardize the reporting process. The project name and address, along with the PILOT agreement start and end dates, must be identical to the information listed in the municipal User-Friendly Budget for the same project. If the Chief County Finance Officer (CCFO) and the county treasurer positions are held by different individuals, the CCFO should also receive a copy of the report. 

In addition, the Local Finance Notice provides guidance on P.L. 2024, c. 6, which authorizes a municipality to grant a PILOT to the housing sponsor of an affordable housing project for affordable housing unit development or preservation that is wholly or partially supported by the State or municipal affordable housing trust funds. While the tax exemptions provided in P.L. 2024, c. 6 are different than Long-Term PILOTs the municipal governing body must adopt an ordinance to grant the tax exemption and authorize entering into the financial agreement.  

The financial agreement authorized by P.L. 2024, c. 6 may require the housing sponsor to pay the municipality up to 20% of the annual gross revenue from the housing project for each year of operation of the financial agreement following the substantial completion of the project. The payment cannot be less than the greater of 4% of the annual gross revenue or the amount of taxes attributable to the land value component of the property comprising the project site for the year preceding the recording of the mortgage. If the property is a farmland assessed property then the minimum amount of the housing sponsor must pay is 4% of the annual gross revenue.  

Within 30 calendar days of ordinances effective date or the execution of the underlying financial agreement between a housing sponsor and a municipality, whichever is later, the municipal clerk must electronically transmit a certified copy of the ordinance and the agreement to the Division at DLGS@dca.nj.gov with the heading “Affordable Housing PILOT.” 

We suggest you review this Local Finance Notice with your municipal professionals.  

Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

On September 19, Acting Governor Tahesha Way signed A2929/S1034 into law, requiring landlords to report information about known or potential lead in drinking water to tenants of residential units. Additionally, it requires public water systems to conduct a no-cost lead water test at the request of the tenant and requires landlords to be cooperative with the replacement of lead pipes.In 2021, Governor Murphy signed the Lead Service Line Replacement Law mandating that public water systems replace lead lines by 2031. P.L. 2025, c. 144 amends the existing law to include the disclosure and testing requirements.  

Landlords are required to inform current and potential tenants if the property has a service line that may contain lead. Additionally, landlords are required to disclose any violations of the law. If landlords deny access for a lead line replacement, a tenant may terminate their lease without penalty.  

Under the law, the New Jersey Department of Health (DOH), Department of Community Affairs (DCA), and Department of Environmental Protection (DEP) will develop information for consumers regarding the health risks associated with lead in drinking water and ways to minimize exposure.

In 1986, the federal government prohibited the use of lead in service lines and other plumbing; however, the removal has proved to be challenging, with both property owners and public water systems having split ownership of lines. According to the Governor’s press release, “over the past four years, New Jersey has replaced 22,007 lead service lines. The state has a total of 135,547 lead service lines and 872,942 service lines of unknown materials.”For more information about lead service lines in New Jersey, visit https://dep.nj.gov/lead/.To learn more about lead impacts on our health, visit nj.gov/health/childhood-lead/.Parents and guardians can view their child’s lead test results by downloading the Docket® app (available on the Apple App Store and Google Play Store) or visiting myHealthNJ.com.For more information about environmental lead exposure reduction, visit dep.nj.gov/lead/. 

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

On September 2, the DEP and the NJ Spill Compensation Fund agreed to a settlement with DuPont, et al. to resolve pending litigation involving discharges of PFAS in the state.  

The DEP published a Notice to Receive Interested Party Comments on the Proposed Judicial Consent Order (JCO) approving a settlement with EIDP, Inc. (formerly known as E.I. du Pont de Nemours and Company), Corteva, Inc., DuPont de Nemours, Inc., DuPont Specialty Products, USA, LLC, The Chemours Company, and the Chemours Company FC ,LLC. The NJDEP also published a Notice of Withdrawal of Discretionary Oversight in the Matter of NJDEP, et al. v. E.I. Du Pont de Nemours and Company, et al., Case No.: 1:19-CV-14766-RMB-JBC (D.N.J.).  

The JCO would resolve certain claims against these companies in pending litigation for past and future cleanup and removal costs, unmet remediation obligations, and injuries to natural resources resulting from discharges at, from, and/or related to the following properties:  

• “Chambers Works Property,” 67 Canal Road and Route 130, Pennsville and Carney’s  
• Point Townships, Salem County
• “Parlin Property,” 250 Cheesequake Road, Parlin, Old Bridge Township, and Sayreville Borough, Middlesex County.“ Pompton Lakes Works Property,” 2000 Cannonball Road, Pompton Lakes/Wanaque Borough, Passaic County 
• “Repauno Works Property,” 200 North Repauno Avenue, Gibbstown, Greenwich Township, Gloucester County
• All properties listed in the Statewide Directive, and broadly related to the Settling Defendants’ sale, marketing, distribution, use of, and/or any other conduct related to per- or polyfluoroalkyl substances (PFAS) in or into the State prior to entry of the proposed JCO or January 1, 2026, whichever is later. 

The JCO will also result in binding final judgment of the extensions of the State including the DEP and Commissioner of the DEP, the NJ Division of Consumer Affairs and its Directors, the Attorney General on behalf of the State of New Jersey, all of the State’s political subdivisions, departments, agencies, authorities, divisions, boards, commissions, districts, and instrumentalities of any kind, as well as any person or entity acting or purporting to act on behalf of the general public. The JOC will preclude future claims related to the Settling Defendants’ conduct regarding PFAS.  

The DEP also entered into a settlement agreement with 3M Company (3M) arising out of the same incident, in which a notice of the proposed JCO was published on July 21, 2025. The U.S. District Court of New Jersey has directed the DEP to file its motion to approve the DuPont settlement by November 21.  

Requests to extend the 60-day comment period for the 3M Notice of Proposed JCO have been declined. Comments on the 3M Proposed JCO may be submitted until September 19, on the DEP’s site, by email, or by mailing to the NJDEP.  

Comments on the DuPont Proposed JCO may be submitted on the DEP’s site, by email, or in hard-copy form to the DEP. Comments must be submitted by November 1.  

The League is in discussions with other interested stakeholders, including the Association of Environmental Authorities and individual MUAs, in develop its response.

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110, or Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.

The New Jersey Department of Community Affairs (DCA) announced the 2026 Recreation Opportunities for Individuals with Disabilities (ROID) Grants programdesigned to help municipalities and counties create inclusive, engaging recreational programs for residents with disabilities. This funding supports both short-term special events and long-term integrated programs such as sports, arts, after-school activities, and more, allowing all community members to participate in local recreation. 

Each grant requires a 20% local match and must demonstrate a community impact by promoting participation and helping meet Americans with Disabilities Act (ADA) requirements. Applications are due by September 26, 2025. Municipalities are encouraged to apply through the DCA Grants Portal. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

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Last week, the House Transportation & Infrastructure Committee advanced the Fixing Emergency Management for Americans Act of 2025 to reform the Federal Emergency Management Agency by a vote of 57-3.  

As we reported when the legislation was introduced, key provisions include Public Assistance, Individual Assistance, Mitigation, and Transparency/Accountability.  

• Public Assistance (PA)
  • Block grants for small disasters defined as up to 125% of the state’s per capita damage threshold)
  • Incorporating mitigation measures into funding for repair, restoration, reconstruction, or replacement of public facilities.
  • Expedited funding for emergency protective work, including debris removal to no more than 120 days once 90% of the costs are validated.
  • Create a temporary task force and process for closing out existing disasters not moved into the new process.
  • Provide greater weight and consideration to disasters impacting economically distressed or rural areas.
  • Reimbursement of costs to shelter emergency response personnel.
• Standardized closeouts and procurement guidance.
• Individual Assistance (IA):
  • Universal application for survivors.
  • Plain-language notices.
  • Expanded non-congregate sheltering, rental aid, and repair/rebuild options.
  • Cover substance abuse under existing crisis counseling assistance.
  • Allow for permanent repairs for homes, if it is more cost-effective than a temporary housing solution.
  • Prohibits FEMA from issuing denial letters prior to final determinations on available insurance.
  • Amount of displacement assistance immediately following a disaster for victims can provide for expenses such as hotel rooms, gas, and food for disaster survivors.
• Mitigation
  • Pre-approved projects.
  • Support for utility resilience and cybersecurity.
  • Expanded revolving loan funds.
  • Incentives for modern building code.
  • Incentivizes faster power restoration after a disaster by clarifying eligibility to build in mitigation.
  • Consolidated grant application for pre-disaster and post-disaster hazard mitigation funding, streamlining the application and review process.
• Transparency & Oversight
  • Public dashboards.
  • Uniform eligibility/appeals guidance.
  • Risk-based audits.
• Prohibit discrimination based on political affiliation in disaster areas.
• Assessment of issues of identity theft and fraud in disaster areas.
• Safe harbor protections for compliant procurement.

The legislation may be considered by the full House. It is not yet clear what path the Senate will take. We will report as developments warrant.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

On July 21, the DEP published a Notice of Proposed Substantial Changes and responses to comments made during the public comment period following the agency’s August 5, 2024 changes to the Resilient Environment and Landscapes (REAL) rules. 

The Notice included the following proposed substantial changes:  

• Changing to reflect a likely four feet of sea-level rise by 2100, rather than five feet. This includes changes to the tidal climate-adjusted flood elevation and the extent of flood hazard area jurisdiction (N.J.A.C .7:13-3.2(B)1) and Inundation Risk Zone at (N.J.A.C. 7:13-3.4 (c)2).  
• Re-evaluating sea-level rise and precipitation data incorporated into these chapters every five years and will amend accordingly  
• Eliminating the signage requirement in N.J.A.C. 7:7-9.50 (c)5 and 7:13-11.5 (c)5.  
• Providing “legacy provisions” for projects that are already in development prior to the adoption of REAL amendments including “New Jersey studio partners” and “New Jersey film-lease partner facilities” as designated by the New Jersey Economic Development Authority prior to rulemaking.  
• Clarifying that projects need to be “allowable within” an existing right-of-way or easement rather as originally proposed “permitted condition of.”
• Proposing to exempt the installation, replacement, or repair of underground utility lines constructed within a previously recorded easement from deed notice requirements. Additionally, an exemption will be extended to repairs and maintenance activities that may alter the height of a building.  
• Changing the list of regulated waters that do not possess a riparian zone to delete two existing exemptions that are proposed for deletion in the Flood Hazard Area Control Act rules (FHACA) but not in the Coastal Zone Management rules (CZM).  
• Changing to make language relating to critically dependent species consistent with the corresponding language used in FHACA rules.  
• Changing of provisions to clarify burial depth for 2.0 meters for submerged transmission cables are required in certain areas, that depth be measured by top cables and that depth is no shallower than 1.2 meters. This includes a proposed removal of “and the Department determines that a different depth is appropriate” and deference to the project area, ground conditions, and seabed mobility since these items are included in a cable burial assessment.  
• Changing of “man-made” to “human-made” and is allowing for temporary impacts to human-made wetlands in and around stormwater basins in certain situations and allows for thin layer placement on site for mosquito control purposes in certain instances as long as it doesn’t impede the character of the wetlands or impair water quality.  
• Proposing changes to include the removal of the term “or reconstruction” of any motor vehicle or other impervious surface, not just “regulated” surfaces as a “major development” and require 80% total suspended solid removal for stormwater runoff. DEP notes the amendment is consistent between the developments subject to the State’s review pursuant to Stormwater Management rules, but also to developments subject to municipal review pursuant to local stormwater ordinances.  
• Exempting of certain isolated water that has no surface or subsurface hydrological connection to regulated waters.  
• Clarifying the placement of underground jacking or regulated water or 25 feet of a top of a bank.  
• Changing of the requirements for permits-by-registration, permits-by-certification, and general permits for fencing to be consistent with the Uniform Construction Code (UCC).  
• Removing the requirement that general permits need certification from the State Office of Mosquito Control Coordination  
• Clarifying the proposed requirement for “dry access.”  
• Correcting standards for evaluating the feasibility and location of proposed building sites and clarifies that areas subject to fluvial flooding may or may not be subject to tidal flooding.  
• Clarifying that portions of existing buildings being converted to another use must meet the requirements applicable for the proposed use.  
• Clarifying that dry flood proofing is prohibited only in flood hazard areas in which the flood velocity is greater than five feet per second, Costal A zone and the V and VE zones.  
• Specifying that a compelling public need meriting a hardship exception including the need to provide affordable housing.  

A public hearing to discuss the DEP’s proposed changes was held virtually, on September 3. The 60-day public comment period ends on September 19. Comments can be submitted electronically. The DEP anticipates adoption of the REAL rules to take place in January 2026. The League has received comments in opposition to the amendments is reviewing and preparing comments in response to the amendments.  

Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137, or Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

On July 16, 2025, the New Jersey Board of Public Utilities (BPU) released information regarding the Direct Install Energy Efficiency Program offered by many electric and gas utilities throughout the State. The BPU established procedures to ensure that local governments, boards of education, and county colleges can participate.  NJ Department of Community Affairs, Division of Local Government Services (DLGS) provided Local Finance Notice 2025-11 explaining the process a contracting unit must follow in utilizing a Direct Install Program. 

The Direct Install Program implements a “turnkey” energy savings program for lighting, refrigeration, and HVAC that would be eligible for substantial incentives and repayment options with 0% interest. The program is open to small and mid-size non-residential facilities with an average annual energy demand of less than 300 kilowatts/40,000.  

There are two different models through which a utility can implement Direct Install; “open network” and “closed network.” Under the “open network” model, a contracting unit procures a contractor that will perform the work recommended in the energy assessment. The contracting unit must procure the contractor through competitive bidding if the dollar value of the contract exceeds the contracting unit’s bid threshold, with the contract awarded to the lowest responsible, responsive bidder. The Program provides for additional requirements depending on the project. Under the “close network” the utility itself serves as the general contractor, preselecting through competitive solicitation the subcontractors perform work according to standard pricing schedules. Please note that while a utility could meet the exceptions to competitive bidding under the laws, no utilities have been approved by BPU in accordance with this exception. 

Prior to procuring a contractor for an “open network” Direct Install project the contracting unit must obtain an energy audit through either the BPU’s Local Government Energy Audit program or by separately contracting for an ASHRAE Level 1 or 2 audit.  

After the completion of the energy audit, the estimated dollar value of the project is used to determine procurement. If the estimated dollar value exceeds the contracting unit’s bid threshold competitive bid solicitation is open to all interested bidders including the energy utility’s trade allies. A contractor that performed the contracting unit’s energy audit is not eligible to respond to the bid solicitation for the project. The LFN encourages eligible bidders to participate in pre-bid conference and walk-through to inspect areas covered within the audit. 

For additional requirements and information, please consult LFN 2025-11 or contact the DLGS at dlgs@dca.nj.gov.  

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

House of Representatives Transportation and Infrastructure Committee Chairman Sam Graves (R-MO); Transportation and Infrastructure Committee Ranking Member Rick Larsen (D-WA); former Economic Development, Public Buildings, and Emergency Management Subcommittee lead Republican Daniel Webster (R-FL); and Economic Development, Public Buildings, and Emergency Management Subcommittee Ranking Member Greg Stanton (D-AZ) introduced the section-by-section summary of the "Fixing Emergency Management for Americans (FEMA) Act of 2025 (H.R. 4669). 

The summary covers key provisions across Public Assistance, Individual Assistance, Mitigation, and Transparency/Accountability, including:  

• Public Assistance (PA): Block grants for small disasters defined as up to 125% of the state’s per capita damage threshold); incorporating mitigation measures into funding for repair, restoration, reconstruction, or replacement of public facilities; expedited funding for emergency protective work, including debris removal to no more than 120 days once 90% of the costs are validated; create a temporary task force and process for closing out existing disasters not moved into the new process; provide greater weight and consideration to disasters impacting economically distressed or rural areas; reimbursement of costs to shelter emergency response personnel; standardized closeouts and procurement guidance.
• Individual Assistance (IA): Universal application for survivors; plain-language notices; expanded non-congregate sheltering, rental aid, and repair/rebuild options; cover substance abuse under existing crisis counseling assistance; allow for permanent repairs for homes, if it is more cost-effective than a temporary housing solution; prohibits FEMA from issuing denial letters prior to final determinations on available insurance; amount of displacement assistance immediately following a disaster for victims can provide for expenses such as hotel rooms, gas, and food for disaster survivors.
• Mitigation: Pre-approved projects; support for utility resilience and cybersecurity; expanded revolving loan funds; incentives for modern building code; incentivizes faster power restoration after a disaster by clarifying eligibility to build in mitigation; consolidated grant application for pre-disaster and post-disaster hazard mitigation funding, streamlining the application and review process.
• Transparency & Oversight: Public dashboards, uniform eligibility/appeals guidance, risk-based audits, prohibit discrimination based on political affiliation in disaster areas, assessment of issues of identity theft and fraud in disaster areas, and safe harbor protections for compliant procurement. 

 Please review the legislation and share your thoughts with Paul Penna, Director of Government Affairs.

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

The New Jersey Department of Environmental Protection (NJDEP) has announced $30 million in Natural Climate Solutions grants available to local governments and nonprofits. 

Funding supports blue and green carbon projects that enhance coastal wetlands, forests, and urban tree canopies, as well as strategies in reaching New Jersey’s 2050 climate goals. Eligible projects include living shorelines, tidal marsh restoration, reforestation, and urban forestry initiatives. Grants range from $250,000 to $5 million, with applications accepted on a rolling basis for one year starting August 4, 2025, through NJDEP’s online portal. 

Municipalities are encouraged to apply early, as awards will be made on a first-come, first-served basis. Learn more on the NJDEP Natural Climate Solutions Grant page. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The Department of Housing and Urban Development (HUD) is offering grants to interested municipalities to apply for funding to address problems related to housing lead-based paint hazards. This grant is intended to enhance public health and improve housing conditions. With a total funding of $364.5 million, awards range from $1 million to $7 million. Eligible applicants include local governments, counties, states, and tribal governments.  

Applications must be submitted by August 14, 2025, and require EPA-authorized lead abatement certification. For more details, please visit grants.gov.  

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The New Jersey Department of Environmental Protection (DEP) published a Notice of Substantial Change in the July 21, 2025, edition of the New Jersey Register. The DEP’s Notice provided responses to public comments received, updated scientific data, and other input on its original Resilient Environment and Landscapes (REAL) Rules. A public hearing regarding these changes will be held virtually on September 3, 2025, at 6:00 PM. A link to the virtual public hearing and more information about the live hearing can be found on the NJDEP’s website.  The DEP’s Notice and response is followed by an additional 60-day period for public comment, which will close on September 19, 2025. The League will review the proposed changes, provide timely updates, and submit comments to the agency.  

Contacts: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, ext. 137, Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112, and Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3481, x116.

The New Jersey Board of Public Utilities (NJBPU) is now accepting applications for its $5 million Urban Heat Island Mitigation Program, designed to help municipalities reduce energy costs and combat extreme heat through targeted cooling infrastructure. 

Grant Tiers Available: 

• Comprehensive Interventions – $1 million each for two large-scale projects such as green infrastructure, cool pavements, or misting systems. 
• Built-Environment Upgrades – $500,000 each for four projects, including cool/green roofs, geothermal heat pumps, or resilient cooling centers. 
• Micro-Climate Projects – $50,000 each for twenty community-led initiatives such as shaded bus stops, water stations, or community gardens. 

Eligibility Requirements:

• All projects must be located on public or publicly accessible land. 
• Priority will be given to proposals serving overburdened municipalities and communities with high energy burdens. 

*Note - Overburdened municipalities and high energy communities in face elevated environmental and socioeconomic stress, marked by poverty, minority populations, limited English proficiency, and high Municipal Revitalization Index (MRI) distress scores (40+). Criteria are set by NJDEP and the BPU’s CEPG program. These designations prioritize funding and support. 

Due Dates:

• Application Period Opens: September 2025 
• Application Deadline: December 2025 (90-day window) 
• Award Announcements: Spring 2026 
• Project Launch: Summer 2026 

How to Apply: 

• Visit the NJBPU Urban Heat Island Mitigation Program page for full eligibility criteria, application instructions, and updates.

 Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

We invite you to explore the latest updates on grant opportunities for FY26 featured in the League’s Town Crier blog. The latest post provides timely and helpful information designed to help your municipality stay informed, prepared for forthcoming grants. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The NJ Board of Public Utilities (NBPU) is now accepting applications for its $5 million Urban Heat Island Mitigation Program. Municipalities can get grants in three tiers to help cut energy costs.  

The program funds three grant tiers: two Comprehensive Interventions of up to $1 million each for large‐scale green infrastructure, cool pavements, or misting systems; four Built-Environment Upgrades of up to $500 thousand each for cool/green roofs, geothermal heat pumps, or resilient cooling centers; and twenty Micro-Climate Projects of up to $50 thousand each for shaded bus stops, community gardens, water stations, and other spot-cooling solutions. 

All projects must be on public or publicly accessible land. For updates, eligibility details, and application instructions, visit www.nj.gov/bpu. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The Division of Local Government Services has issued Local Finance Notice 2025-08 advising of the adjustments to the Public Bidding thresholds and Office of State Comptroller Reporting thresholds. The new thresholds took effect on July 1, 2025. 

The maximum bid threshold has increased from $44,000 to $53,000 for contracting units with a Qualified Purchasing Agent (QPA). Without a QPA, the bid threshold remains at $17,500 for contracting units subject to the Local Public Contracts Law (LPCL). For contracting units subject to the Public School Contracts Law (PSCL), the maximum bid threshold without a QPA increased from $32,000 to $39,000. 

The threshold for soliciting quotations, which is 15% of the bid threshold, also increased with the new bid thresholds. The new quote thresholds are as follows: 

In addition, the State Treasurer and Office of State Comptroller released adjusted threshold amounts. Please see the June 2 State Comptroller Adjusts Contract Review Thresholds post for more information on the recent changes.  

As a reminder, the governing body has the authority to adjust the bid and quote threshold amounts but cannot exceed the maximum thresholds.  

We suggest you review Local Finance Notice 2025-08 with your procurement officials. 

Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.

On Thursday, the Senate Budget and Appropriations Committee, by a vote of 7 in favor, 1 against, and 5 abstentions, favorably reported out of committee S-4048 with committee amendments, which limits development in specifically designed historic districts. The League opposes this legislation as it usurps municipal authority. 

This amended legislation narrowly defines historic district and grants waiver authority to the Planning Board where the historic district is located. 

S-4048 defines “historic district” as an area in this state listed as a historic district on the National Register of Historic Places in accordance with the provisions of chapter 3021 of Title 54, United States Code (54 U.S.C. s.302101 et seq.) and on the New Jersey Register of Historic Places pursuant to N.J.S.A. 13:1B-15.128 et seq. which historic district consists of at least 100 contributing or not-assessed resources, according to the State Historic Preservation Office; and is located along a roadway designated for inclusion in the New Jersey Scenic and Historic Highways Program, established N.J.S.A. 27:5K-3. “Historic district,” however, shall not include an otherwise qualifying district if the district has been designated exclusively to preserve, in whole or in part, a waterway, including, but not limited to, a lake, river, or canal.  

Under this narrow definition of historic district, this legislation applies to about eight locations throughout the state. However, in one instance, the historic district is in a neighboring municipality from the proposed development and grants land use authority to the neighboring municipality where there is no responsibility or accountability to the residents of the developing municipality.  

The League opposes this legislation because it violates the long-held tenet of home rule where municipalities are able to make decisions for their communities and stand accountable to their residents. We encourage you to reach out to your Senators prior to Monday’s vote to register your objection to this legislation. The League thanks Senator Testa for voting no, as well as Chairman Sarlo, and Senators Johnson, Steinhardt, O’Scanlon, and Amato for abstaining from this vote.  

S-4048 is scheduled for a Senate vote on Monday. The Assembly counterpart, A-5241, was favorably reported out of Assembly Commerce, Economic Development and Agriculture Committee on May 15 and was referenced to the Assembly State and Local Government Committee where it has yet to receive a hearing.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

While the League’s magazine, NJ Municipalities, is on its summer break, a new blog will feature a series of stories from communities around the state. 

This week, we share a report on Project "Keep Wood-Ridge Beautiful." The group celebrated its 25th year anniversary by cleaning Hackensack Street and Valley Boulevard and planting flowers at the Library, Civic Center, Senior Center, Veterans Park on Valley Boulevard, and the Bianchi House historical property. 

Want to share your local story this summer? Please send in your 300- to 1,000-word items and photos to Managing Editor Amy Spiezio at aspiezio@njlm.org.  

Contact: Amy Spiezio, Managing Editor, aspiezio@njlm.org; ext.123.

The “Fixing Emergency Management for Americans (FEMA) Act of 2025” is a bi-partisan draft legislation aim at overhauling FEMA and streamlining disaster response programs. The proposed FEMA Act of 2025 proposes a significant restructuring of the Federal Emergency Management Agency (FEMA) and reforms across mitigation, preparedness, response, and recovery functions.  In joint release on the bill the sponsors Transportation and Infrastructure Committee Chair Sam Graves (R-MO) and Transportation and Infrastructure Committee Ranking Member Rick Larsen (D-WA) noted that the “bill also rewards effective state and local preparedness, protects taxpayers, cuts red tape, and ensures that relief efforts are fast, fair, and free from political bias.” 

Not only is this an opportunity to comment on any changes that are based on your experience that you think should be made to FEMA but to provide input on the proposed legislation. Please review the information and share your comments with the League via email with Paul Penna at ppenna@njlm.org.  

Adjust Disaster Declaration Thresholds 

The Act formalizes “small disasters” as a distinct category and sets an upper limit for this designation at 125% of the per capita damage indicator multiplied by a state’s population. This change expands the number of disasters that would qualify as “small disasters,” allowing them to be managed by states under alternative procedures with reduced federal oversight. 

Importantly, disasters that exceed the per capita damage indicator – such as those causing $9 million to $11 million in damages in a state with 5 million residents – already qualify for major disasters declarations under current FEMA policy. However, under the Act, those same disasters would be reclassified as “small disasters” and handled by the state with streamlined federal assistance, shifting responsibility for compliance, audit, and recovery program delivery more heavily to state and local governments.  

Alternative Procedures for Small Disasters 

This section authorizes the use of simplified and expedited procedures for disasters classified as “small” under the new thresholds established in Section 103 (Adjust Disaster Declaration Thresholds). The goal is to reduce administrative burdens, accelerate recovery timelines, and cut down on paperwork and audit requirements for events that have relatively limited impacts. 

It allows states and local governments to access federal assistance through a more flexible framework, including the option to receive fixed-cost estimates and lump-sum payments rather than navigating the traditional reimbursement model. By delegating more authority to state and enabling streamlined project management, this section seeks to improve efficiency, lower costs, and ensure that communities affected by smaller-scale disasters can access timely support without being entangled in complex federal processes. 

Information Sharing for Federal Agencies 

This section aims to improve coordination among federal agencies by allowing secure data sharing to streamline aid delivery and reduce paperwork for disaster survivors. The goal is to eliminate duplicate application and accelerate support by enabling a unified federal response. 

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

Pursuant to N.J.S.A. 52:15C-10(d), the Office of the State Comptroller, with consultation with the Department of the Treasury, has adjusted the threshold amounts for contracting units for procurement.  

As of July 1, contracting units should notify the Office of the State Comptroller when contracts meet or exceed the following terms:  

• For contracts involving consideration or an expenditure of more than $3 million, but less than $15.2 million, no later than 20 business days after the contract award. 
• For contracts involving an expenditure of $15.2 million or more, at the earliest time practicable as the contracting unit commences the procurement process, but no later than the time the contracting unit commences preparation ofany bid specification or request for proposal; concession offering; proposal to purchase, sell, or lease real estate; or other related activities and contracts, but not less than 30 days prior to public advertisement or other public or private solicitation. 
• For contracts issued pursuant to an emergency or public exigency involving consideration or an expenditure of more than $3 million, no later than 30 business days after the award of a contract. 

Questions regarding this notice should be submitted to contracts@osc.nj.gov. 

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, x116.

The Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program is administered by the Federal Emergency Management Agency (FEMA) under the Department of Homeland Security (DHS). It offers funding opportunities for municipal fire departments to hire additional firefighters and enhance recruitment and retention efforts for volunteer firefighters, ensuring adequate emergency response capabilities. 

The grant will help municipalities improve public safety, reduce response times, and enhance fire protection services for residents. The grant funding will also enable communities to address workforce shortages and strengthen emergency response systems. The application is due July 3, 2025, at 5 p.m.  

To learn more about the SAFER grant and to obtain technical assistance documents, visit Staffing for Adequate Fire and Emergency Response (SAFER) Documents or Grants.gov. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The deadline for local governments to submit their Local Efficiency Achievement Program (LEAP) grant applications is May 30.  

Applications should be filed in the Department of Community Affairs (DCA) System for Administering Grants Electronically (SAGE). Required documents include lead agency and participant agency resolutions, completed supplemental forms, and a draft or finalized shared service agreement. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The Safe Streets and Roads for All (SS4A) program has supported applicants by recording and posting "How to Apply" webinars on its website, covering essential aspects of the grant process.  

Please note that a significant policy adjustment was implemented in March 2025, modifying the minimum funds designated for the development of Action Plans. The previous requirement of 40% has been updated to 30%, as specified in the Full-Year Continuing Appropriations and Extensions Act, 2025 (H.R. 1968). This adjustment allows for greater flexibility in the distribution of grant funding while still ensuring that communities focus on strategic planning for safer roadways. 

For more information, visit the SS4A How to Apply page. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The New Jersey Board of Public Utilities (BPU) has announced its Community Energy Plan Grant (“CEPG”) program, which will provide $900,000 in funding for municipalities to develop localized energy plans. All municipalities are eligible to receive grant awards of $10,000, with Overburdened Municipalities (OBM) eligible to receive grant awards of $25,000. 

The CEPG allows municipalities to develop energy plans that address local needs while supporting the State’s energy goals outlined in the New Jersey Energy Master Plan.  To be considered for funding, municipalities must complete and submit an application through SAGE. Applicants can access a CEPG grant guidance packet at www.njcleanenergy.com/cep, and for any additional questions, email Community.energy@bpu.nj.gov. 

The application deadline is Friday, July 11, 2025, no later than 5:00 p.m. 

The U.S. Department of Transportation (USDOT) announced the Safe Streets and Roads for All (SS4A) Grant Program, a federal initiative that provides funding to improve roadway safety and reduce fatalities. The SS4A grant provides $5 billion over five years to support projects to reduce roadway fatalities and serious injuries; nearly $2 billion is still available for future funding rounds.

Municipalities, Counties, Metropolitan Planning Organizations (MPOs), and Tribal governments are eligible to apply for funding that can be used for strategic safety improvements, such as pedestrian-friendly crosswalks, updated traffic signals, and innovative roadway designs. The application deadline is Thursday, June 26, 2025, at 12:00 p.m.

More details can be found on the Federal Grants website.

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The U.S. EPA and Army Corp of Engineers are hosting a listening session for local governments on Tuesday, May 6 from 3 p.m.–5 p.m. to share your perspectives on the waters of the United States. 

On March 12, 2025, EPA Administrator Lee Zeldin announced the agencies' intent to revise the definition of “waters of the United States” (WOTUS) to follow the clear direction of the Supreme Court in Sackett v. EPA (2023), while eliminating red tape, cutting compliance costs, and reducing the cost of living. To achieve this vision, the agencies will develop a proposed rule to revise the amended 2023 definition of WOTUS.  

The listening sessions are intended to help EPA and Army Corp of Engineers understand stakeholders’ real-world perspectives and experiences with WOTUS implementation to inform the agencies’ upcoming proposed rule. The agencies are seeking input on key topics related to the definition of "waters of the United States," consistent with the Supreme Court's ruling in Sackett, regarding continuous surface connection, relatively permanent, and jurisdictional versus non-jurisdictional ditches.  

The Waters of the U.S. defines which waterbodies are federally regulated under the Clean Water Act. The WOTUS definition has been an ongoing issue since the Obama Administration and subject to numerous court challenges, including at the U.S. Supreme Court level. It is one of several regulatory reviews/rollbacks that the EPA is currently undertaking. 

This session is free to attend, but requires advanced registration that closes at noon on May 5.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

On Friday, April 25, New Jersey Department of Community Affairs (DCA) Commissioner Jacquelyn Suárez announced the NJ HOMES Choice Technical Assistance and RFP process for affordable housing funding and professional assistance.

DCA rolled out a beta test of a technical assistance tool to assist municipalities with housing development. The NJ HOMES Choice website would allow municipalities to create hypothetical scenarios of diverse types of housing stock to see how it would impact a municipality’s affordable housing obligation and fit with their master plan. Additionally, the website will provide contacts and data concerning specific types of projects of interest to municipalities. DCA expects to launch the official website after the start of FY2026.

Additionally, the DCA announced that it will be releasing a Request for Proposals on May 1 for municipalities seeking financial and professional assistance in developing affordable housing projects. DCA is seeking 10 to 20 municipalities interested in building lifecycle housing within the next 2 years. They are allocating $8-10 million in funding, along with funding for a staff person to manage the development process. Priority will be given to municipalities looking to supplement funding through their Affordable Housing Trust Fund and willing to work with non-profit stakeholder organizations in their communities.

The League will continue to provide updates as more information is released.

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, 609-695-3841 x116.

With the creation of the Council to Assess from the Federal Emergency Management Agency by President Trump, funding authorized by the Building Resilient Infrastructure and Communities (BRIC) has been cancelled.

If that is the case in your municipality, please email Paul Penna, Director of Government Affairs, at ppenna@njlm.org and include a brief project description, expected funding, and any reason that was given for the termination.

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

The Build America Bureau issued a Notice of Funding Opportunity for the Rural and Tribal Assistance (RTA) Pilot Program, which would allow firms to assist with advanced transportation. The Program invites eligible communities to apply for up to $27 million in no-match grants for planning and design phase activities for developing transportation projects in the RTA communities. Funds may also be used for pre-development activities, including feasibility studies, project planning, environmental reviews, and financial analyses.  

Your project is eligible if the project is not in a Census Bureau 2020 designated urban area or the project is in a Census Bureau 2020 designated urban area with a population of 150,000 or less.  

Your project is not eligible if it is in a Census Bureau 2020 designated urban area that has a population of more than 150,000 people.  

The US Department of Transportation also offers a guide to rural eligibility.  

The application will be available beginning at 2 p.m. on March 18 and will close at 5 p.m. on April 17. 

For the eligibility criteria and application details, visit Grants.gov or email RuralandTribalTA@dot.gov. 

Funding is first-come, first-served. 

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

On Monday, S-4157 requires DCA to enable certain construction subcode applicants to electronically submit certain materials for permit application review and limits requirements for physical seal on documents at worksite was favorably advanced from the Senate Community and Urban Affairs Committee. 

S-4157 requires the DCA to accept electronic submissions from a licensed plumbing, electrical, or heating, ventilating, air conditioning, and refrigeration contractor corresponding to the contractor’s discipline. Submissions for which the bill requires DCA to accept electronic submissions include, but are not limited to, subcode application forms or documents supporting the applications, such as shop drawings or documents displaying the calculations necessary for compliance with the electrical, fire protection, or energy subcode. The bill prohibits DCA from requiring the physical seal or signature of these contractors to be affixed to the subcode application form.  

Additionally, this bill prohibits DCA from requiring physical copies of plans at the worksite of a licensed plumbing, electrical, or heating, ventilating, air conditioning, and refrigeration contractor to have an affixed physical seal. 

The League adopted Conference Resolution 2024-15 in favor of S-4157 noting that inconsistencies may cause permitting delays and that the legislation sets forth a reasonable goal to expedite the permitting process.  

This bill is to take effect on the first day of the fourth month following the enactment, except that the Commissioner of Community Affairs is permitted to take anticipatory actions necessary to comply with the provisions of the bill.  

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, x116. 

On Monday, the Senate Committee Substitute for S-2974, which reduces the number of parking spaces required in Statewide site improvement standards at residential developments relative to the development’s proximity to public transportation was favorably reported by the Committee. The legislation also requires the Commissioner of the Department of Community Affairs to adopt regulations implementing certain reductions in the maximum required for on- and off-street parking spaces in the Statewide site improvement standards by 20%, 30%, and 50% depending on a residential development’s proximity to certain public transportation services.  

The bill would restrict a municipality’s ability to make land use decisions that best suit its community and that are reflected in their Master Plan. By mandating specific zoning obligations without local input, it would undermine local officials’ ability to properly manage land use in their municipality. Without local review, planning and decision-making authority, local officials are unable to be as effective to their respective communities. 

S-2974 assumes that reduced parking is appropriate for all projects based on their proximity to public transportation. While this may be true in some instances, it may not be true in others. Decisions on minimum parking for projects are best done on a case-by-case basis and should be made by local officials with an understanding of specific needs of the community. Under current law, a developer can already obtain relief from minimum parking standards. 

Eliminating minimum parking requirements may be suitable for some areas, but in others could cause congestion and parking shortages. Limited parking availability increases “cruising” or the amount of time drivers spend looking for parking.  

Reductions in parking impact commuters to varying degrees even down to the type of transportation utilized (e.g., bus, rail, car). Advocates for the reduction in parking also seek increased investments in public transportation infrastructure to accommodate all types of commuters. This legislation does not include those increases. Reducing parking minimums without other similar efforts aimed at reducing driving will only create different problems. 

Contact: Erin Knoedler, Legislative Analyst, eknoedler@njlm.org, x116.

On Monday, March 17, the Senate Community and Urban Affairs Committee advanced an amended, version of S-1408, which authorizes the conversion of certain office parks and retail centers to mixed-use developments. The amended SCS for S-1408 does not address the concerns raised by local officials and removing the two-year sunset, makes the bill even more objectionable.  

As amended, the SCS for S-1408 would: 

• Require a municipal planning board to permit the conversion of eligible properties, so-called “stranded assets” into mixed-use developments, effectively bypassing the existing variance procedure and preempting local zoning. 
• An eligible property is defined as: 
  1. An office park that is at least 50,000 square feet or a retail center of at least 15,000 square feet; and 
     1. Has a vacancy rate of at least 25% rate for at least 18 months immediately preceding the application; or  
     2. Has suffered an economic downturn over the immediately preceding 3 years, demonstrated by evidence of a quantifiable loss in revenue such that the developer’s expenses for the premises have exceeded revenues by at least 30% or more each year. 
• The substitution eliminates the 2-year sunset in the original bill, meaning that this would be a permanent preemption of local planning. 

A mixed-use development, which may include the demolition of existing structures, that is subject to a preemptive conversion shall be considered a permitted use and not require a variance, provided that: 

1. The development otherwise complies with zoning requirements in the municipality’s mixed-use zone (see below).
2. The application proposes at least two types of uses, one of which shall be residential, and no use shall be industrial. 
3. At least 20% of the residential units to be constructed shall be reserved as very-low-income housing, low-income housing, or moderate-income housing 
   1. At least 50% within each bedroom distribution are low income units 
   2. At least 13% of the low income units are very low income units; and 
   3. Must comply with the Uniform Housing Affordability Controls in N.J.S.A. 52:27D-301 et seq.

The bill goes on to establish the criteria to follow if there are multiple mixed-use zones and legislates mixed-use zones if the municipality does not have a mixed-use zone. This is likely to result in costly litigation.  

In addition, the bill’s legislative findings declares that “one significant impediment to converting stranded retail centers and office parks into dynamic mixed-use communities is the application of outdated, rigid municipal zoning regulations that often separate residential and commercial uses from each other.” Then states that in order “to encourage the development of vibrant and desirable mixed-use communities, further to the public good, it is appropriate for the Legislature to set standards to modernize local land use regulations that stand in the way of the repurposing and redevelopment of stranded retail centers and office parks.” 

The League testified in strong opposition to the legislation based on the unnecessary and unwarranted preemption of local master planning. In our statement, we noted that any such application can be made through the variance process or a redevelopment process. Further, we noted that the criteria in the bill is ripe for litigation and expressed concern that this could turn into a backdoor means to challenge a town’s approved affordable housing plan and expose the municipality to litigation. 

The bill now stands at 2nd reading in the Senate. SCS-S-1408 could be scheduled for a Senate floor vote as soon as next Monday, March 24. For this reason, it is critical to reach out to your State Senator as soon as possible and ask for a NO vote on S-1408, also known as the “stranded assets” bill.  

The Assembly companion, A-2757, has not advanced to date and is referenced to the Assembly Commerce and Economic Development Committee.  

Contact: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.

On Monday, March 17, the Senate Community and Urban Affairs Committee is scheduled to consider S-1408. As introduced, this legislation would authorize the conversion of office parks of at least 50,000 square feet and retail centers of at least 15,000 square feet, which have a vacancy rate of at least 40%, to mixed-use developments regardless of municipal zoning regulations. Under the legislation a mixed-use development, that is those containing both non-residential and a residential component, would be permitted use, not requiring a variance, when the application seeks to convert an eligible office park or retail center.  

This bill would require the planning board to approve an application for development to convert an eligible property to a mixed-use development if the planning board determines that the application does cause substantial detriment to public good and without substantially impairing the intent of the zoning ordinance and the application complies with the requirement of the bill. The planning board would be able to give conditional approval for complying with requirements for parking, water supply, sanitary sewer capacity, storm water management, bulk standards, and all reasonable site plan review, recreation, and design standards. However, the height and setback limitations shall be at the greatest height and least restrictive setback limitations allowed within the zone under municipal ordinance or variance approved by the planning board.  

While the League is cognizant of the evolving nature of development trends within the state, we oppose S-1408, as it undermines the careful planning and consideration that has gone into municipal zoning. The State’s intervention to require a property zoned strictly commercial to convert to mixed-use undermines the careful and thoughtful zoning practices of local governments. It is through the variance procedures provided for within the Municipal Land Use Law that an appropriate review of any deviation from the zoning requirements is made. This important procedure should not be preempted. 

Further, municipal leaders are intimately aware of their zoning as well as the trends in development towards a more centralized, walkable living environment. With this in mind, many municipalities have already begun to reexamine their zoning to accommodate these developments from a more holistic approach, taking into consideration all aspects of zoning and their Master Plans. It is unnecessary to adopt legislation that makes a wholesale change to all municipalities throughout the state. 

The League recently met with the sponsor’s office and we understand that amendments are forthcoming and may be considered and acted on Monday. These amendments are not yet public. We do not expect the amendments to address the fundamental flaw in the legislation, which is the unnecessary and unwarranted preemption of local planning.  

For that reason, we ask that you review S-1408 and consider reaching out to your legislators and to the Senate Community and Urban Affairs Committee  to express concerns with this attempt to preempt local zoning. 

Contact: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.

On or before April 30, local officials must submit their annual financial disclosure statement (FDS) using the online filing system of the Local Finance Board. However, municipal clerks must first prepare and maintain the roster of local government officials required to file the FDS. Join us on March 24 at noon for Lunch & Learn with Nick Bennett, Executive Secretary, Local Finance Board, and Cherie Saranin, Administrative Analyst, as they review the process and answer any questions you may have as you finalize your roster.

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

S-116, the Home-Based Business Legislation, was scheduled to be considered at the February 27 Voting Session. The legislation was removed from the agenda.  

For more than 25 years, the League has opposed this type of legislation as an infringement on municipal planning and that illegal home businesses would now be permitted as a preexisting, nonconforming use for municipalities that do not have specific prohibitions for home-based businesses.  

As amended, this legislation provides guardrails to ensure that the activity is compatible with the residential use, including the volume of visitors, prohibition of outside appearance of a home business including signage, no equipment in use that creates noise or odors, and the volume of deliveries is compatible with the area.  

A municipality may by ordinance establish standards to apply to home businesses within residential districts, but is limited to the volume of visitors, the volume of deliveries, and parking acceptable for home businesses in a residential area.  

We will alert you if this legislation is posted for consideration.  

Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.

T-Mobile Hometown Grants is a five-year initiative designed to assist municipalities, individuals, and organizations that contribute to communities’ growth and success. Each quarter, Hometown Grants are awarded to as many as 25 towns up to $50,000 for shovel-ready projects. Municipalities can apply for funding for projects that build, rebuild, or refresh community spaces that help foster location connections in your municipality. Examples of projects include but are not limited to, revitalizing or repurposing historic buildings, creating downtown assets or attractions, improvements to outdoor parks or trails, or technology projects for the public library. Funds cannot be used for engineering and architectural plans or fees, salaries, annual operating expenses, or reimbursement for completed projects.  

For more information or to apply, visit the T-Mobile homepage or the FAQ page. Please note that the information required for application includes a project plan proposal with a detailed budget and timeline, up to five letters of support from community stakeholders, examples of in-kind donations or additional funding to cover the remainder of the project., and details on permits needed or obtained. Projects selected must be completed within the budget and within 12 months of receiving funding.  

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.

The Department of Environmental Protection (DEP) has announced the National Park Services’ Outdoor Recreation Legacy Partnership Program (ORLP), which would fund the acquisition or development of new parks, as well as the major renovation of existing parks, in economically disadvantaged areas with populations of at least 25,000.  

The initiative focuses on creating new or improved nature based parks in urban, disadvantage communities that are underserved and lack accessible walkable outdoor recreational spaces, often referred to as park deserts.  

To qualify for consideration the project must be located in a municipality with a population of 30,000 or more based on 2020 Census, located within a Census tract  

This funding opportunity will be active for a period of five years, with an anticipated 25 to 40 awards each year. The due dates for the preliminary applications are June 1, 2025, and November 1, 2025. For the June 1 deadline proposals are due to Green Acres by March 7, 2025. For the November 1 deadline proposals are due to Green Acres by August 1, 2025.  

Visit the DEP’s website under Grants and Loans for more information and to apply.  

Contact: Ciara Bradley, Research Associate, cbradley@njlm.org, 609-695-3481, x128.