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Bill

S 1408

Establishes an educational program related to the prevention of anti-Semitism, Islamophobia bias and discrimination based on religion, race, sexual orientation or gender identity or expression

2025 Regular Session Introduced by Andrew Gounardes and 2 co-sponsors

New Jersey bill preempts local zoning to convert underused office parks and retail centers into mixed-use developments, including at least 20% affordable housing and tax incentives

REFERRED TO EDUCATION
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WeVote Research Nonpartisan
Bill Summary · S 1408

Summary — S.1408 (as reflected in substitute and reprint documents)

Note on source materials: the packet provided contains multiple, partly conflicting documents (including an unrelated title about an educational program, a Massachusetts docket for a different S.1408, and legislative-action stamps from several committees). The text that is consistent across the committee substitute, reprint, and version content relates to a New Jersey bill to facilitate conversion of certain office parks and retail centers into mixed‑use developments. The summary below describes that New Jersey proposal.

Main purpose and intent

The bill creates a limited state-level preemption of local zoning to encourage repurposing of underused or vacant suburban office parks and retail centers (“stranded assets”) into mixed‑use developments. The goal is to revitalize underperforming commercial properties, increase housing (including affordable units), and promote walkable, mixed‑use communities.

Key provisions and thresholds

  • Definitions:

    • “Office park” and “retail center” defined as single‑site, planned nonresidential developments.
    • “Vacancy rate” (floor amendment): percentage of unoccupied/unused square footage relative to total building square footage.
    • “Eligible property”: must meet size and distress criteria (below).
  • Eligibility criteria for conversion:

    • Size: office park ≥ 50,000 sq ft; retail center ≥ 15,000 sq ft.
    • Distress: either (a) vacancy rate ≥ 25% for a continuous period of at least 18 months immediately preceding application; or (b) an economic downturn shown by expenses exceeding revenues by ≥ 30% per year over the prior three years.
    • Owner requirement (floor amendment): owner must have made and maintained a continuous, good‑faith effort to redress vacancy — actively renting or marketing the property during the vacancy period.
  • Use and zoning relief:

    • Converting an eligible property to a mixed‑use development is a permitted use and does not require a use variance if statutory requirements are met.
    • Mixed‑use projects must include at least two different uses and one must be residential (no industrial uses permitted).
    • If the municipality has a mixed‑use zone, the project must meet that zone’s requirements; if multiple mixed‑use zones exist, the municipality designates which zone’s rules apply.
    • If no mixed‑use zone exists, default rules apply for height (greater of tallest existing building or most permissive municipal height), setbacks (lesser of existing setbacks or least‑restrictive municipal setbacks), and impervious coverage (not less than the greater of 125% of existing impervious coverage or the municipal maximum).
  • Affordable housing:

    • At least 20% of new residential units must be reserved as very‑low, low, or moderate‑income housing.
    • Within those reserved units: at least 50% in each bedroom distribution must be low‑income, and 13% of the low‑income units must be very‑low income.
    • Units must comply with Uniform Housing Affordability Controls (UHAC).
  • Incentives and designation:

    • Projects are eligible for long‑term tax exemption under the State Long Term Tax Exemption Law and may be deemed an “area in need of redevelopment” or “rehabilitation” without triggering Local Redevelopment and Housing Law prerequisites.
    • Applicants may still seek variances, tax incentives, financing, or grants.
  • Compliance:

    • Developments remain subject to the Municipal Land Use Law and applicable municipal site‑plan and design standards (parking, utilities, stormwater, etc.).

Who is affected

  • Developers and property owners of qualifying office parks/retail centers.
  • Municipal planning boards and local governments (limited preemption of local use restrictions).
  • Current tenants and local communities — potential increases in housing, commercial mix, traffic, utility demand, and local tax base.
  • Affordable housing seekers (20% set‑aside requirement).

Procedural/timeline aspects

  • Applications are to be reviewed and approved by the municipal planning board if they meet statutory eligibility and compliance requirements.
  • If the municipality lacks a mixed‑use zone, the bill prescribes default dimensional and coverage standards to guide approvals.
  • Floor amendments clarified vacancy definition, required an 18‑month continuous vacancy period, and added the owner’s continuous marketing/effort requirement.

Potential impacts to consider

  • Facilitates reuse of declining commercial properties and creation of mixed‑use, walkable places.
  • Expands affordable housing through statutory set‑asides.
  • Limits some municipal discretion on use decisions (state standardization for eligible properties), which may accelerate redevelopment but raise local control concerns.
  • Infrastructure, parking, and service capacity pressures could accompany conversions and will be subject to municipal review and conditioning.

If you want, I can prepare a one‑page checklist for developers (eligibility evidence to gather), or draft a short one‑paragraph summary suitable for a public notice.

Compiled from official sources — confirm details with the bill’s official record.

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