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Committee releases amended bill requiring construction-permit funding disclosures despite industry objections
Summary
The committee released A4626, which would require applicants for construction permits to disclose anticipated project funding amounts and sources and to certify funding information prior to certificate-of-occupancy issuance; commercial real estate, builders and municipal officials raised concerns about feasibility and litigation risk.
The Assembly Housing Committee moved to amend and release Assembly Bill 4626, which would require construction-permit applicants to disclose anticipated amounts and sources of funding for proposed construction projects and would direct construction-code enforcing agencies to require certification or updated funding information as a condition of issuance of certificates of occupancy, with several exemptions for single-family homes and certain renovations.
Opposition testimony from NAIOP (commercial real estate), the New Jersey State League of Municipalities, the New Jersey Apartment Association and the New Jersey Builders Association argued the measure would require construction code officials to act as fiscal experts, could create project delays and litigation over financing plans (because construction-permit information can be public records), and would duplicate underwriting already performed by lenders. Testifiers urged further discussions with the sponsor and recommended rejecting or substantially revising the bill.
Committee members acknowledged concerns and asked witnesses to meet with the prime sponsor. Despite objections from industry groups, the committee voted to amend and release the bill; roll-call results showed mixed votes, with some members voting no and others voting yes, and one member reserving their final position pending conversations with the sponsor. The bill was released for further consideration.
