Norris, McLaughlin & Marcus

Posts Tagged ‘state’

Foreclosed Homes = Affordable Housing

Senators Ray Lesniak and Barbara Buono have introduced legislation (S-1566) to transform foreclosed homes into affordable housing.  The bill would create the New Jersey Foreclosure Relief Corporation and would allow municipalities to buy foreclosed houses through the state’s $268 million affordable housing trust fund, and thereby earn two-for-one credit toward their affordable housing obligations.  If municipalities decide not to buy the vacant homes, the Corporation would be able to purchase them through federal and state financing sources and deed restrict them as affordable housing for three decades.  The corporation could also issue bonds to buy and sell vacant foreclosed houses with the goal of selling them at market rates.   Assemblyman Jerry Green is expected to introduce the Assembly version of the measure, which Lesniak says will create more than 10,000 new affordable homes: “It does not address the ongoing complex, incomprehensible and so far insolvable obligations of municipalities, but it will make those obligations more readily attainable,” he said.  S-1566 was released unanimously by the Senate Economic Growth Committee on Thursday.

IN THE NEWS: Bill Being Debated by New Jersey Leaders Would Decrease Municipal Oversight reports: Bill passed by state Senate, headed to the Assembly in the Fall, would prevent municipalities from conducting routine inspections of apartment buildings or charge for them, making those duties the sole domain of the state.  Opponents of the bill say the municipal inspections save lives.  Meanwhile, supporters say the municipal inspections are redundant and an unnecessary cost.

N.J. leaders clash over bill that would decrease municipal oversight of apartment buildings

Brownfields Fund Is Shut Down

The State announced Thursday, June 2, 2011, that the Hazardous Discharge Site Remediation Fund (HDSRF), which helps developers and communities clean up brownfields sites, has run out of funds and is being shut down.  Although the HDSRF is supposed to receive constitutionally dedicated funding via the corporate business tax, the Christie Administration proposes to divert any new monies generated by that tax to balance next year’s budget.  According to DEP Deputy Commissioner Irene Kropp, the state cannot afford to fund the $71 million worth of projects awaiting approval, and no new applications will be considered until the backlog is cleared. “We’re very sensitive to the fact that some developers’ financing could be contingent upon the funding,” Kropp told the Senate Environment and Energy Committee. She said the DEP and the NJ EDA are working to change the program in an effort to keep it alive.

The Interstate Land Development Act – Does It Apply to Commercial Developers?

Some laws and statutes develop a “reputation” over the years as applying only to certain industries or activities only because of the manner in which these laws are regularly applied.  This can lull some into a false sense of security that certain laws do not apply to them when, in actuality, they do apply. One of these situations is the application of the Interstate Land Development Act (“ILSA”) to commercial development.

ILSA was passed in 1968 in reaction to “swamp land” schemes in which consumers were fleeced by unscrupulous purveyors of useless land. ILSA requires land developers of 100 or more non-exempt lots to file with HUD a “statement of record” and provide each purchaser with a “property report” detailing information about the proposed subdivision. Failure to comply with ILSA can result in a broad range of serious consequences for the errant developer ranging from criminal liability to fines, equitable actions, and civil suits.

Read the rest of this entry »