Bill Text: NJ S1554 | 2020-2021 | Regular Session | Introduced
Bill Title: Establishes home elevation fund and dedicates up to $5 million of realty transfer fee revenue annually for this purpose.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-02-13 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S1554 Detail]
Download: New_Jersey-2020-S1554-Introduced.html
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
SYNOPSIS
Establishes home elevation fund and dedicates up to $5 million of realty transfer fee revenue annually for this purpose.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning home elevations, dedicating a portion of the realty transfer fee revenue for this purpose, and amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. There is created in the Department of Environmental Protection a special non-lapsing fund to be known as the "Flood Protection and Home Elevation Fund." The money in this fund is to be dedicated and shall be used only to carry out the purpose specified in subsection b. of this section. The fund shall be credited with all revenues collected and deposited in the fund pursuant to section 4 of P.L.1968, c.49 (C.46:15-8), all interest and other income received from the investment of money in the fund, and any money which, from time to time, may otherwise become available for the purposes of the fund. Pending the use thereof pursuant to the provisions of subsection b. of this section, the money deposited in the fund shall be held in interest-bearing accounts in public depositories, as defined pursuant to section 1 of P.L.1970, c.236 (C.17:9-41), and may be invested or reinvested in such securities as are approved by the State Treasurer. Interest or other income earned on monies deposited into the fund shall be credited to the fund for use as set forth in subsection b. of this section for other money in the fund.
b. Monies deposited in the "Flood Protection and Home Elevation Fund" shall be used to reimburse a homeowner who undertakes a home elevation project subsequent to the effective date of this act in an amount equal to 25 percent of the annual interest payment made by the homeowner on any loans taken to finance the home elevation project, or $750, whichever is less; provided, however, that the county in which the home elevation project takes place provides matching funds to the homeowner in the same amount.
c. In order to qualify for reimbursement pursuant to subsection b. of this section, a homeowner shall first obtain all necessary State and local zoning and land use approvals for the home elevation project, and approval from the financing institution for any loan taken to finance the home elevation project. The homeowner shall then apply to the department and to the county on a form and in a manner established by the department. No payment shall be made by the State to the homeowner until the home elevation is complete, and proof thereof to the satisfaction of the department has been provided to the department. A qualifying homeowner shall be eligible to reapply to the State and county for reimbursement each year the homeowner continues to pay interest on a loan taken to finance the home elevation project.
d. Before a county provides matching funds to homeowners pursuant to subsection b. of this section, the governing body of the county shall establish, by ordinance or resolution, as appropriate, a source of funding for the matching funds, which may include, but need not be limited to, the county portion of the basic fee collected pursuant to paragraph (1) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7) or county open space trust funds as specified in paragraph (1) of subsection a. of section 2 of P.L.1997, c.24 (C.40:12-15.2).
e. As used in this section:
"Department" means the Department of Environmental Protection.
"Home elevation project" means a project to elevate or raise a single family or two-family house that is the primary residence of the owner to eliminate or significantly mitigate the threat of flooding and its attendant damage and destruction to the property, whether the single family or two-family house is intact or is being restored and reconstructed at its original location to a higher elevation.
2. Section 1 of P.L.1997, c.24 (C.40:12-15.1) is amended to read as follows:
1. As used in P.L.1997, c.24 (C.40:12-15.1 et seq.):
"Acquisition" or "acquire" means the securing of a fee simple or a lesser interest in land, including but not limited to an easement restricting development, by gift, purchase, installment purchase agreement, devise, or condemnation.
"Blue Acres project" means any project to acquire, for recreation and conservation purposes, lands that have been damaged by, or may be prone to incurring damage caused by, storms or storm-related flooding, or that may buffer or protect other lands from such damage, and includes the demolition of structures on, the removal of debris from, and the restoration of those lands to a natural state or to a state useful for recreation and conservation purposes.
"Charitable conservancy" means a corporation or trust exempt from federal income taxation under paragraph (3) of subsection (c) of section 501 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.501(c)(3)), whose purposes include (1) acquisition and preservation of lands in a natural, scenic, or open condition, or (2) historic preservation of historic properties, structures, facilities, sites, areas, or objects, or the acquisition of such properties, structures, facilities, sites, areas, or objects for historic preservation purposes.
"County trust fund" means a "County Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Fund" created pursuant to subsection c. of section 2 of P.L.1997, c.24 (C.40:12-15.2).
"Development" means any improvement to land acquired for recreation and conservation purposes designed to expand and enhance its utilization for those purposes.
"Farmland" means land actively devoted to agricultural or horticultural use that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).
"Farmland preservation purposes" means the long-term preservation of farmland for agricultural or horticultural use.
"Historic preservation" means the performance of any work relating to the stabilization, repair, rehabilitation, renovation, restoration, improvement, protection, or preservation of an historic property, structure, facility, site, area, or object.
"Historic property, structure, facility, site, area, or object" means any property, structure, facility, site, area, or object approved for inclusion, or which meets the criteria for inclusion, in the New Jersey Register of Historic Places pursuant to P.L.1970, c.268 (C.13:1B-15.128 et seq.).
"Home elevation project" means a project to elevate or raise a single family or two-family house that is the primary residence of the owner to eliminate or significantly mitigate the threat of flooding and its attendant damage and destruction to the property, whether the single family or two-family house is intact or is being restored and reconstructed at its original location to a higher elevation.
"Land" or "lands" means real property, including improvements thereof or thereon, rights-of-way, water, lakes, riparian and other rights, easements, privileges and all other rights or interests of any kind or description in, relating to or connected with real property.
"Municipal trust fund" means a "Municipal Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Fund" created pursuant to subsection c. of section 7 of P.L.1997, c.24 (C.40:12-15.7).
"Public indoor recreation" means public recreation in enclosed structures or facilities, and includes but is not limited to swimming pools, basketball courts, and ice skating rinks open for public use.
"Recreation and conservation purposes" means the use of lands for parks, open space, natural areas, ecological and biological study, forests, water reserves, wildlife preserves, fishing, hunting, camping, boating, winter sports, or similar uses for either public outdoor recreation or conservation of natural resources, or both, or the use of lands for public indoor recreation.
(cf: P.L.2011, c.173, s.1)
3. Section 2 of P.L.1997, c.24 (C.40:12-15.2) is amended to read as follows:
2. a. (1) The governing body of any county may submit to the voters of the county in a general or special election a proposition authorizing imposition of an annual levy for an amount or at a rate deemed appropriate for any or all of the following purposes, or any combination thereof, as determined by the governing body:
(a) acquisition of lands for recreation and conservation purposes;
(b) development of lands acquired for recreation and conservation purposes;
(c) maintenance of lands acquired for recreation and conservation purposes;
(d) acquisition of farmland for farmland preservation purposes;
(e) historic preservation of historic properties, structures, facilities, sites, areas, or objects, and the acquisition of such properties, structures, facilities, sites, areas, or objects for historic preservation purposes;
(f) payment of debt service on indebtedness issued or incurred by a county for any of the purposes set forth in subparagraph (a), (b), (d), (e) or (g) of this paragraph; [or]
(g) Blue Acres projects; or
(h) Home elevation projects pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) .
(2) The amount or rate of the annual levy may be subdivided in the proposition to reflect the relative portions thereof to be allocated to any of the respective purposes specified in paragraph (1) of this subsection or may be depicted as a total amount or rate, to be subdivided in a manner determined previously, or to be determined at a later date, by the governing body of the county after conducting at least one public hearing thereon.
b. Upon approval of the proposition by a majority of the votes cast by the voters of the county, the governing body of the county may annually raise by taxation a sum not to exceed the amount or rate set forth in the proposition approved by the voters for the purposes specified therein. If the amount or rate set forth in the proposition was not subdivided among the various purposes, the governing body of the county may determine the appropriate amount or rate to be allocated to each purpose after conducting at least one public hearing thereon.
c. Amounts raised by the levy imposed pursuant to this section shall be deposited into a "County Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Fund" to be created by the county, and shall be used exclusively for the purposes authorized by the voters of the county. Any interest or other income earned on monies deposited into the county trust fund shall be credited to the fund to be used for the same purposes as the principal. Separate accounts may be created within the county trust fund for the deposit of revenue to be expended for each of the purposes specified in the proposition approved by the voters of the county. A county may deposit other funds into the County Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Fund, as it may, from time to time, deem appropriate.
d. (1) (a) Selection of lands for acquisition for recreation and conservation purposes shall be in accordance with an open space and recreation plan prepared and adopted by the county.
(b) Selection of projects to develop or maintain lands acquired for recreation and conservation purposes shall be in accordance with an open space and recreation development and maintenance plan prepared and adopted by the county.
(c) Selection of farmland for acquisition for farmland preservation purposes shall be in accordance with a farmland preservation plan prepared and adopted by the county or pursuant to the provisions of the "Agriculture Retention and Development Act," P.L.1983, c.32 (C.4:1C-11 et al.) or any other law enacted for the purpose of preserving farmland, or any rules or regulations adopted pursuant thereto.
(d) Selection of historic preservation projects shall be in accordance with a historic preservation plan prepared and adopted by the county.
(2) Monies in the county trust fund may be used to pay the cost of preparing and adopting the plans required by this subsection.
e. The governing body of a county may submit to the voters of the county in a general or special election a proposition amending or supplementing a proposition previously submitted, approved, and implemented as provided pursuant to this section either (1) changing the amount or rate of the annual levy, or (2) adding or removing purposes authorized pursuant to this section for which the levy may be expended. Upon approval of the amendatory or supplementary proposition by a majority of the votes cast by the voters of the county, the governing body of the county shall implement it in the same manner as set forth in P.L.1997, c.24 (C.40:12-15.1 et seq.) for implementation of the original proposition.
f. Upon petition to the governing body of a county signed by the voters of the county equal in number to at least 15% of the votes cast therein at the last preceding general election, filed with the governing body at least 90 days before a general or special election, the governing body of the county shall submit to the voters of the county in the general or special election the proposition otherwise authorized pursuant to subsection a. or subsection e. of this section, as the case may be.
(cf: P.L. 2011, c.173, s.2)
4. Section 4 of P.L.1968, c.49 (C.46:15-8) is amended to read as follows:
4. a. The proceeds of the fees collected by the county recording officer, as authorized by P.L.1968, c.49 (C.46:15-5 et seq.), shall be accounted for and remitted to the county treasurer.
b. (1) The county portion of the basic fee collected pursuant to paragraph (1) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7) shall be retained by the county treasurer for the use of the county. The county may use all or a portion of this money to provide matching funds for home elevation projects pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) The State portion of the basic fee, the additional fee, and the general purpose fee shall be paid to the State Treasurer for the use of the State. Payments shall be made to the State Treasurer on the tenth day of each month following the month of collection.
c. (1) Amounts, not in excess of $25,000,000, paid during the State fiscal year to the State Treasurer from the payment of the State portion of the basic fee shall be credited to the "Shore Protection Fund" created pursuant to section 1 of P.L.1992, c.148 (C.13:19-16.1), in the manner established under that section.
(2) In addition to the amounts credited to the "Shore Protection Fund" pursuant to paragraph (1) of this subsection, amounts equal to $12,000,000 in each of the first 10 years after the date of enactment of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.) and to $5,000,000 in each year thereafter, paid during the State fiscal year to the State Treasurer from the payment of fees collected by the county recording officer other than the additional fee of $0.75 for each $500.00 of consideration or fractional part thereof recited in the deed in excess of $150,000.00 shall be credited to the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19), in the manner established under that section. No monies shall be credited to the "Highlands Protection Fund" pursuant to this paragraph until and unless the full amount of $25,000,000 has first been credited to the "Shore Protection Fund" pursuant to paragraph (1) of this subsection.
(3) In addition to the amounts credited to the "Shore Protection Fund" pursuant to paragraph (1) of this subsection and the "Highlands Protection Fund" pursuant to paragraph (2) of this subsection, amounts of up to $5,000,000, as determined by the department, paid during the State fiscal year to the State Treasurer from the payment of the State portion of the basic fee shall be credited to the "Flood Protection and Home Elevation Fund," created pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). No monies shall be credited to the "Flood Protection and Home Elevation Fund" pursuant to this paragraph unless the full amount of $25,000,000 has been credited to the "Shore Protection Fund" pursuant to paragraph (1) of this subsection and the full amount of $5,000,000 has been credited to the "Highlands Protection Fund" pursuant to paragraph (2) of this subsection.
d. All amounts paid to the State Treasurer from the payment of the additional fee shall be credited to the Neighborhood Preservation Nonlapsing Revolving Fund established pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), in the manner established under section 20 thereof (C.52:27D-320).
(cf: P.L.2004, c.120, s.61)
5. Section 2 of P.L.1992, c.148 (C.46:15-10.2) is amended to read as follows:
2. a. The annual appropriations act for each State fiscal year shall, without other conditions, limitations or restrictions on the following:
(1) credit amounts paid to the State Treasurer, if any, in payment of fees collected pursuant to paragraph (1) or paragraph (2) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7) to the "Shore Protection Fund" created pursuant to section 1 of P.L.1992, c.148 (C.13:19-16.1), the Neighborhood Preservation Nonlapsing Revolving Fund established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), and the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19), pursuant to the requirements of section 4 of P.L.1968, c.49 (C.46:15-8);
(2) appropriate the balance of the "Shore Protection Fund" created pursuant to section 1 of P.L.1992, c.148 (C.13:19-16.1), for the purposes of that fund;
(3) appropriate the balance of the Neighborhood Preservation Nonlapsing Revolving Fund established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), for the purposes of that fund; [and]
(4) appropriate the balance of the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19), for the purposes of that fund ; and
(5) appropriate the balance of the "Flood Protection and Home Elevation Fund" created pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), for the purposes of that fund .
b. If the requirements of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate any of the requirements of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates any of the requirements of subsection a. of this section, certify to the Director of the Division of Taxation that the requirements of subsection a. of this section have not been met.
(cf: P.L.2004, c.120, s.62)
6. The Commissioner of Environmental Protection shall, in consultation with the State Treasurer, and in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations to implement P.L. , c. (C. ) (pending before the Legislature as this bill), including procedures and standards of eligibility for reimbursement pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
7. This act shall take effect immediately, but sections 1 through 5 shall apply to the fiscal years beginning on and after July 1 next following the date of its enactment.
STATEMENT
This bill would establish a special, non-lapsing fund within the Department of Environmental Protection to be known as the "Flood Protection and Home Elevation Fund." Monies in the fund would be used to reimburse a homeowner who undertakes a home elevation project for 25 percent of the annual interest payment made by the homeowner on a loan to finance the home elevation project, or $750, whichever is less. However, a homeowner will only be reimbursed if the county in which the home elevation project takes place agrees to provide matching funds in the same amount.
In order to qualify for reimbursement, a homeowner would first need to obtain all necessary State and local zoning and land use approvals for the home elevation project, as well as approval from the financing institution for any loan taken to finance the project. The homeowner would then apply to the State and county for reimbursement. No payment would be made by the State to the homeowner until the home elevation is complete and proof of completion has been submitted to the department. A qualifying homeowner would be eligible to reapply to the State and county for reimbursement during each year the homeowner pays interest on a loan taken to finance the home elevation project.
The bill would dedicate up to $5 million of the State share of the realty transfer fee annually to the "Flood Protection and Home Elevation Fund." The fund would also be credited with all interest and other income received from the investment of money in the fund. However, the bill provides that no money would be credited to the fund unless $25 million of the State share of the realty transfer fee has first been credited to the "Shore Protection Fund," and $5 million of the State share of the realty transfer fee has been credited to the "Highlands Protection Fund," both of which are required by current law.
Finally, the bill provides that, before a county can provide matching funds to homeowners for home elevation projects, the county must first establish a source of funding, which may include, but need not be limited to, the county share of the realty transfer fee or county open space trust funds. The bill would amend the county open space trust fund law to explicitly allow counties to use trust funds for home elevation projects pursuant to this bill.
