Bill Text: NJ A1038 | 2024-2025 | Regular Session | Introduced
Bill Title: Imposes credit rating requirement upon ability for municipality to exercise powers under "Local Redevelopment and Housing Law."
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Housing Committee [A1038 Detail]
Download: New_Jersey-2024-A1038-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman NANCY F. MUNOZ
District 21 (Middlesex, Morris, Somerset and Union)
SYNOPSIS
Imposes credit rating requirement upon ability for municipality to exercise powers under "Local Redevelopment and Housing Law."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning ability of municipalities to exercise powers under the "Local Redevelopment and Housing Law," and amending P.L.1992, c.79.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.1992, c.79 (C.40A:12A-4) is amended to read as follows:
4. In exercising the redevelopment and rehabilitation functions provided for in [this act] P.L.1992, c.79 (C.40A:12A-1 et seq.):
a. A municipal governing
body shall have the [power
to:] following
powers only if the municipality has attained, during the prior three-year
period, a credit rating of: A- or lower by Standard & Poor's Corporation or
Fitch Ratings, A3 or lower by Moody's Investor Services, Inc., or the
equivalent thereof from a "nationally recognized statistical rating
organization," as that term is defined in section 3 of the federal "Securities
and Exchange Act of 1934"
(15 U.S.C. s.78c).
(1) Cause a preliminary investigation to be made pursuant to subsection a. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment;
(2) Determine pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) that an area is in need of redevelopment;
(3) Adopt a redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7);
(4) Determine pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14) that an area is in need of rehabilitation.
b. A municipal planning board shall have the power to:
(1) Conduct, when authorized by the municipal governing body, a preliminary investigation and hearing and make a recommendation pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment;
(2) Make recommendations concerning a redevelopment plan pursuant to subsection e. of section 7 of P.L.1992, c.79 (C.40A:12A-7), or prepare a redevelopment plan pursuant to subsection f. of that section;
(3) Make recommendations concerning the determination of an area in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14).
c. The municipality shall be responsible for implementing redevelopment plans and carrying out redevelopment projects pursuant to section 8 of P.L.1992, c.79 (C.40A:12A-8). The municipality may execute these responsibilities directly, or in addition thereto or in lieu thereof, through either a municipal redevelopment agency, a parking authority authorized to exercise redevelopment powers within the municipality pursuant to section 1 of P.L.2017, c.253 (C.40:11A-4.1), or a municipal housing authority authorized to exercise redevelopment powers pursuant to section 21 of P.L.1992, c.79 (C.40A:12A-21), but there shall be only one redevelopment entity responsible for each redevelopment project. A county improvement authority authorized to undertake redevelopment projects pursuant to the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.) may also act as a redevelopment entity pursuant to this act. Within a municipality that has been designated the capital of the State, the Capital City Redevelopment Corporation, established pursuant to P.L.1987, c.58 (C.52:9Q-9 et seq.) may also act as a redevelopment entity pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.). The redevelopment entity, so authorized, may contract with any other public body, in accordance with the provisions of section 8 of P.L.1992, c.79 (C.40A:12A-8), for the carrying out of a redevelopment project or any part thereof under its jurisdiction. Notwithstanding the above, the governing body of the municipality may, by ordinance, change or rescind the designation of the redevelopment entity responsible for implementing a redevelopment plan and carrying out a redevelopment project and may assume this responsibility itself, but only the redevelopment entity authorized to undertake a particular redevelopment project shall remain authorized to complete it, unless the redevelopment entity and redeveloper agree otherwise, or unless no obligations have been entered into by the redevelopment entity with parties other than the municipality. This shall not diminish the power of the municipality to dissolve a redevelopment entity pursuant to section 24 of P.L.1992, c.79 (C.40A:12A-24), and section 20 of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-20).
(cf: P.L.2017, c.253, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill would limit the ability to exercise the redevelopment and rehabilitation functions authorized pursuant to section 4 of the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-4), P.L.1992, c.79, to municipalities that have attained, during the prior three-year period, a credit rating of: A- or lower by Standard & Poor's Corporation or Fitch Ratings, A3 or lower by Moody's Investor Services Inc., or the equivalent thereof from a "nationally recognized statistical rating organization," as provided in the bill. In so doing, this bill would limit the use of those redevelopment and rehabilitation functions to municipalities with lower credit ratings.
