On September 19, Gov. Chris Christie signed Bill A1338 to amend
the Permit Extension Act of 2008 (the PEA).
The process of obtaining land development approvals and permits
can be difficult, time-consuming and expensive. Because of this,
these approvals typically afford a protection period to allow a
developer time to secure financing and complete a project without
the fear of changes to governmental regulations or repeated
application processes. Unfortunately, as a result of the national
recession, in recent years projects have taken longer to complete,
because of financing and marketability issues.
Thus, the New Jersey Legislature initially enacted the PEA in 2008
"to prevent the wholesale abandonment of approved projects and
activities due to the present unfavorable economic conditions, by
tolling the term of these approvals for a period of time, thereby
preventing a waste of public and private resources."
N.J.S.A. 40:55D-136.2(m). The PEA extended the life span
of certain governmental approvals to December 31, 2014, to provide
additional time to build a project. However, given the duration of
the current economic downturn, the Legislature identified in A1338
the need to further extend and expand the PEA, as follows.
First, the expiration of the PEA's tolling period is extended
from December 31, 2012, to December 31, 2014. This means that a
qualifying permit or approval covered under the PEA may now be
valid up to June 30, 2015.
Second, the scope of the PEA is retroactively expanded to include
properties that were previously excluded from PEA protection. The
PEA does not extend the life of all government permits and
approvals. To qualify for an extension, a permit must meet the
act's definition of an approval and fall outside its list of
exceptions. The broadest exception excludes any permit or approval
involving land located in an Environmentally Sensitive Area. This
term initially included any land within the Highlands and Pinelands
that was not designated as a growth center.
A1338 redefines and narrows the Environmentally Sensitive Area
exception to afford PEA protection to more properties, including
the following lands:
- The Highlands planning area, provided the land is (i) not located in State Planning Areas 4B or 5; (ii) not a critical environmental site; and (iii) not located in a town that has adopted a Highlands master plan element, Highlands land use ordinance or an environmental resource inventory as of May 1.
- Villages and towns designated in the Pinelands Commission's comprehensive management plan, provided the land is (i) not located in State Planning Areas 4B or 5 and (ii) not a critical environmental site.
Finally, A1338 applies the new, narrower exception
retroactively. This can significantly impact development by
breathing life into several dormant projects in the Highlands and
Pinelands.
The full text of the act is available at http://www.njleg.state.nj.us/2012/Bills/AL12/48_.PDF.
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