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Builders and municipal groups push back as committee advances disclosure bill for construction financing
Summary
A substitute of Senate Bill 34 81 that would require construction project applicants to disclose project financing drew sharp opposition from builders, developers and the League of Municipalities, who warned of OPRA exposure, added municipal burdens and litigation risk; the committee amended and released the bill.
Senate Bill 34 81, amended in committee, would require construction project applicants to disclose financing documents for certain projects and defines terms to exempt single-family homes and routine renovations.
The bill prompted sustained opposition from trade and developer groups. Paul Pennell of the New Jersey League of Municipalities said the League shares the bill’s goals but is opposed because municipalities lack capacity to review complex financing documents, which may contain confidential information and increase OPRA-related costs and litigation exposure. “There has to be another way that doesn't involve municipalities,” Pennell said.
Construction trade groups and developer representatives also urged the committee to hold the bill. Jeff Kolakowski of the New Jersey Builders Association asked that the measure be held, saying the scope is unclear and could apply to small apartment projects and renovations in ways that create administrative burdens. Tony Pizzitulo and other industry witnesses warned that the requirement could be a significant obstacle to economic development.
Supporters framed the measure as transparency for large development projects but the hearing surfaced concerns about municipal capacity, confidentiality, and whether the UCC or financial underwriting processes are appropriate responsibilities for building code officials.
The committee moved, amended and released the bill; sponsors and stakeholders indicated more detailed conversations are expected as the legislation progresses.
