S1481 - The Rice Bill Unveiled

Recently, the New Jersey Senate Community and Urban Affairs Committee reported favorably on Senate Bill No. 1451 (S1451) with Committee amendments. The so-called Rice Bill, named after the State Senator primarily responsible for seeking reform, proposes to amend significantly the Local Redevelopment and Housing Law. The Eminent Domain Act of 1971 and the Relocation Assistance Act of 1971 would also be amended. As a basis for reform, the legislation itself states that the Legislature received input from a number of interested citizens and interest groups over an extended period of time. 

S1451 proposes to create two tracks for municipal designation of redevelopment areas: the first as a non-condemnation redevelopment area and the second as a condemnation redevelopment area. For the latter, enhanced requirements will be built into the statute consistent with two seminal cases decided within the last few years, Harrison Redev. Agency v. DeRose, 398 N.J. Super. 361 (App. Div. 2008) and Gallenthin Realty Development, Inc. v. Borough of Paulsboro, 191 N.J. 344 (2007). Under this legislation, a municipality will be required to give notice to a property owner informing that their property is at risk of being forcibly taken for redevelopment purposes, giving them a time frame within which they can contest the redevelopment designation. Further, blight determinations must be recorded at the County Recording Office. Finally, the redevelopment designation will lapse after a period of time unless redevelopment work is ongoing.

Continue Reading...