New Providence council adopts resolution opposing Senate Bill 4736, warns of zoning preemption

The New Providence Borough Council voted to oppose Senate Bill 4736, a measure that would allow certain religious and tax‑exempt nonprofit properties to be converted into inclusionary developments that include affordable housing units without local use‑variance review.

Council members said the resolution (2025‑298) follows guidance circulated by the League of Municipalities and reflects concern that the bill would effectively preempt local zoning by making such conversions a permitted use if statutory criteria are met. "The bill preempts local zoning and planning regulations," a council member said, arguing the change could allow large conversions of church or nonprofit properties without the same local controls currently required.

Council discussion cited practical scenarios the sponsors say the bill would enable: a 501(c)(3) nonprofit with a parcel in a residential neighborhood converting the property to multiple housing units under the bill’s framework. Members warned such changes could shift control over land use decisions from municipal planning boards to a statutorily defined right for qualifying nonprofits and questioned whether that would shift costs to residents.

During Q&A, council members raised concerns about whether nonprofit institutions such as Summit Speech School could later transfer property to a developer and how reversionary deed language might limit future sales. Staff and council members said final contract language and reversionary clauses should be tightened before the borough moves forward with property transactions involving nominal consideration.

The council’s resolution does not change state law; it registers the borough’s opposition and asks legislators to consider the local government impacts described in the resolution.