Category: Development/Redevelopment

Landmark Flood Disclosure Bill Now Law in New Jersey, Applies to Both Commercial and Residential Property

On June 30, 2023, the New Jersey General Assembly unanimously passed Bill S3110/A4783, which will require sellers of real property and landlords to make specific disclosures regarding a commercial or residential property’s flood risk. The bill was amended to concur with the recommendations of Governor Murphy’s May 8, 2023, Conditional Veto Statement and was enacted into law upon passage. New Jersey was previously one of less than half of the states in the country that did not require any flood disclosures for real estate transactions. Landlord & Seller Flood Disclosure Requirements Specifically, Senate Bill No. 3110 requires landlords and sellers of commercial or residential real property to disclose to prospective tenants and buyers if a property is located in an area designated by the Federal Emergency Management Agency (FEMA) as a Special Flood Hazard Area (known as the 100-year flood plain) or Moderate Risk Flood Hazard Area (known as the 500-year flood plain), and if the property has suffered flood damage in the past to the owner’s knowledge. Sellers are also required to disclose additional facts related to the property’s flood insurance and flood damage history. Additionally, landlords are required to notify tenants of the possible availability of flood insurance via the National Flood Insurance Program. The New Jersey Department of Community Affairs (NJDCA) is...

Governor Murphy Announces First-in-the-Nation Environmental Justice Rules

On Monday, April 17,  2023, New Jersey Governor Phil Murphy announced the adoption of the New Jersey Department of Environmental Protection’s (DEP) Environmental Justice Rules (EJ Rules) implementing New Jersey’s landmark Environmental Justice (EJ) Law signed in 2020. The EJ Law and implementing rules are the first in the nation aimed at reducing pollution in historically overburdened communities that have been subjected to a disproportionately high number of environmental and public health stressors. In his announcement, Governor Murphy stated, “As we enter Earth Week 2023, the final adoption of DEP’s EJ Rules will further the promise of environmental justice by prioritizing meaningful community engagement, reducing public health risks through the use of innovative pollution controls, and limiting adverse impacts that new pollution-generating facilities can have in already vulnerable communities.” DEP Commissioner Shawn M. LaTourette added that, “With the adoption of the nation’s first EJ Rules, New Jersey is on a course to more equitably protect public health and the environment we share.” Under the new rules, which are effective immediately, state environmental officials considering permit requests of eight specific types of facilities must include impacts to residents of affected communities in their decision-making process. The eight types of facilities that must comply with the new EJ Rules are: gas-fired power plants, cogeneration facilities, and other...

New Enforcement Rules for New York City Environmental Remediation Programs

Owners and developers of sites enrolled in New York City’s environmental remediation programs should be aware of new enforcement rules. The rules provide for new reporting requirements and strengthened enforcement mechanisms and penalties. Background About New York City Environmental Remediation Programs The New York City (NYC) Mayor’s Office of Environmental Remediation (OER) manages NYC’s Voluntary Cleanup Program (VCP) and E-Designation Program (EDP). Under the VCP, environmental site investigations and remediations are conducted with OER oversight. After a site is remediated, OER issues a notice of completion (NOC), which provides that NYC “shall not take or require any further investigatory or remedial action” at the site.[1] The New York State Department of Environmental Conservation (NYSDEC) is also unlikely to require further action at sites with NOCs, pursuant to a Memorandum of Agreement between NYSDEC and OER.[2] NOCs may be assigned to third parties, such as the purchaser of a site that has been cleaned up.[3] The VCP also provides other benefits, including hazardous waste fee exemptions and monetary grants. By contrast to the VCP, the EDP is a mandatory program. It applies to specific sites given “E-Designations” or similar Restrictive Declarations because of potential contamination or other issues identified during a zoning action. For instance, sites previously zoned only for manufacturing that have been rezoned to...

New Jersey Adopts Private Construction Inspection Bill

On January 5, 2023, New Jersey Governor Phil Murphy signed into law Assembly Bill 573, which authorizes private inspections under the State Uniform Construction Code (UCC) Act, upon the satisfaction of certain conditions (the “Act”). The New Jersey Department of Community Affairs (DCA) now has six months to propose rules to effectuate the provisions of the Act and three months thereafter to adopt those rules. The Act is a result of efforts throughout the commercial real estate industry to address the growing shortage of available municipal code inspectors and recent increased demand for inspections due to the high frequency of construction activity throughout the state, as well as an ongoing backlog due to COVID-19 staffing shortages. There is consensus within the industry that the processes codified within the Act will minimize project disruptions and delays and create a more streamlined construction inspection process, in order to expedite the timely construction and occupancy of inclusionary housing and non-residential development alike. The Act creates a new process by which private inspectors can perform required construction inspections under the UCC. Once work undertaken pursuant to a construction permit is ready for any required inspection under the UCC, the owner, agent, or other person in charge of the work (collectively, the “Owner”) shall notify the enforcing agency (presumably the...

New Jersey Adopts 2021 International Building Code and Grace Period for Permit Applications

The New Jersey Department of Community Affairs (DCA) has recently amended the Building Subcode of the Uniform Construction Code (UCC) to incorporate the 2021 Edition of the International Building Code (IBC). Builders, developers, and others currently applying for construction permits should be aware of the provision within the UCC that provides for a grace period from application of the newly adopted regulations until March 6, 2023. On April 18, 2022, DCA posted in the New Jersey Register proposed amendments to the Building Subcode, located within the New Jersey Administrative Code at N.J.A.C. 5:23-3.14, to incorporate the 2021 Edition of the IBC. The model codes for buildings, which include residential and commercial structures, energy, fire protection, mechanical, and fuel gas, are published by the International Code Council, and DCA proposes and adopts the model codes as part of the UCC. Since 1996, DCA has undertaken a review of each subsequent model code edition and has proposed and adopted the new edition of the national model codes. The most recently adopted amendments to the UCC’s Building Subcode incorporate the 2021 edition of the IBC. The Building Subcode amendments were adopted on September 6, 2022. Of particular importance to builders and developers, the UCC contains a grace period provision at N.J.A.C. 5:23-1.6, which provides that for a period...

David J. Freeman and Matthew J. Sinkman to Chair Panels at Upcoming Superfund/Brownfield Program Update 2022

David J. Freeman and Matthew J. Sinkman of the Gibbons Environmental Group will serve as Panel Chairs at the upcoming annual Superfund/Brownfield Program Update 2022, presented by the Environmental & Energy Law Section of the New York State Bar Association. The program will take place virtually on December 7, 2022. Mr. Freeman, Co-Chair of the conference, will moderate a panel regarding developments in the federal Superfund program over the past year. Mr. Sinkman will moderate a panel regarding renewable energy issues and the New York State Brownfield Cleanup Program (BCP). An outstanding faculty of government officials, attorneys, and consultants will participate on these panels as well as panels regarding statutory amendments to the BCP and proposed changes to BCP regulations, affordable housing issues, and a case law update. Julie Tighe, President of the New York League of Conservation Voters (NYLCV) and NYLCV Education Fund, will be the Keynote Speaker and discuss the results of the 2022 elections and what they mean for New York’s environmental agenda. You can register for this timely program by clicking here.

NAIOP-NJ’s Public Policy Symposium

Gibbons P.C. is proud to serve as Event Sponsor for NAIOP-NJ’s Public Policy Symposium, on March 23, 2022 at the Carpenters Apprentice Training Center in Edison, NJ. We hope that you can join us and the greater NAIOP-NJ membership as we hear from the new Senate and Assembly leadership teams, along with the Mayors of Newark and Paterson, and the development community as they discuss how to keep New Jersey prosperous and growing. To register: NAIOP New Jersey – Public Policy Symposium (1 Credit) (wildapricot.org).

In a Case of First Impression in the Second Circuit, the District Court Clarifies When the Statute of Limitations Begins to Run on a Natural Resource Damages Claim Under CERLCA

A case that shares the elements of a crime thriller – massive illegal dumping of toxic construction debris in a public park and playground, corrupt public officials, a special grand jury investigation and criminal prosecutions – has broken new ground on when the statute of limitations runs on a natural resource damages claim. Seggos v. Datre, a case relating to the closure of a public park in an environmental justice area due to illegal dumping of hazardous waste, will proceed now that a federal judge has rejected a request brought by 17 law firms to find that it had been filed too late. The complaint in the case, pending in the U.S. District Court the Eastern District of New York, alleged that in 2013 and 2014, tens of thousands of tons of construction and demolition debris and related waste (“C&D”) were dumped in Roberto Clemente Park (“Park”) in the hamlet of Brentwood, New York, an environmental justice community located in the Town of Islip on Long Island. The C&D was brought to the Park from construction sites throughout the New York City metropolitan area. The New York Attorney General, suing on behalf of the New York State Department of Environmental Conservation (NYSDEC) Commissioner and the State of New York (together, the “State”), brought the case to...

David J. Freeman Co-Authors Article for Bloomberg News on the Future of New York’s Brownfield Cleanup Program

David J. Freeman, a Director in the Gibbons P.C. Environmental Group, has co-authored an article with Lawrence P. Schnapf for Bloomberg Law on New York’s Brownfield Cleanup Program (BCP). The two authors, who co-chair the New York State Bar Association’s Brownfields Task Force, are well positioned to offer insights on the future of the program. The tax credit provisions of the BCP, a key feature of the highly successful program, are scheduled to expire at the end of this year. New York Governor Kathy Hochul has supported efforts to expand and reauthorize the tax credit provisions. The article describes the current tax credit provisions and the key features of Governor Hochul’s proposal, which would result in a ten-year extension of the BCP tax credits. The article also describes changes to the BCP program recommended by other interested stakeholders and in bills introduced by the legislature in last year’s session. The article notes that, while a positive step, the Governor’s proposed reforms “fall short of the changes recommended by the New York State Bar Association, community groups, and developers, and in bills introduced in last year’s legislative session.” Noting that developments in the next two months may impact the shape of BCP for the next ten years, the authors recommend that interested stakeholders make their voices...

Jennifer Phillips Smith Named Co-Chair of Gibbons Real Property Group

Gibbons P.C. is pleased to announce that Jennifer Phillips Smith has been named Co-Chair of the firm’s Real Property Group, effective February 1, 2022. She joins Co-Chair Douglas J. Janacek, who has been a leader of the Real Property Group for over a dozen years. Ms. Smith is lead land use attorney on several of New Jersey’s largest, most high-profile development and redevelopment projects, which garner extensive media coverage. Examples include a $2.5 billion redevelopment, which is being called the “largest mixed-use development site in New Jersey’s history,” the transformation of the Asbury Park Waterfront, and the repositioning of a former manufacturing and office site, named “Mixed-Use Deal of the Year” by the leading statewide commercial real estate development association. As Co-Chair of the Real Property Group, she will work with Mr. Janacek in overseeing the work of group attorneys and managing group activities and workload, including fees and billings, matter management, case staffing, associate training and broader professional development, client relations, and business development. In her legal practice, Ms. Smith helps businesses in New Jersey expand and optimize the reach of their markets and operations through the development and redevelopment of real property for their facilities, directing project and case strategies, guiding teams, and serving as primary Gibbons contact broadly responsible for these client...