FAQ on Non-Residential Fee Moratorium

UPDATE: Public Notice on Non-Residential Fee Moratorium

On July 27, 2009 Governor Corzine signed the NJ Economic Stimulus Act of 2009 into law.  Part of this law temporarily suspends the Non-Residential Development Fee Act described below.  Projects that receive preliminary or final site plan approval prior to July 1, 2010, and for which a building permit is issued prior to January 1, 2013 will not be subject to any non-residential development fee.  Also, any developer that has paid a non-residential development fee since July 17, 2008 may claim a refund based on certain criteria (see the FAQ for more specific information) by submitting the N-RDF Claim Form and supporting documentation by November 30, 2009.  A municipality may seek reimbursement from the State for any development fee refunds issued, no later than March 30, 2010.  See the N-RDF Claim Form for instructions.

The Statewide Non-Residential Development Fee Act, incorporated into the Municipal Land Use Law, imposes a 2.5% development fee on all non-residential new construction and additions. The fee takes effect on certificates of occupancy issued on and after Friday, July 18, 2008. Municipalities that have an affordable housing trust fund approved by COAH or a court of competent jurisdiction may retain these funds. Every municipality shall impose the statewide non-residential fee in the amount of 2.5% and no certificate of occupancy can be issued without the fee being paid. The Departments of Community Affairs and Treasury have developed the N-RDF form which outlines the process and must be used for all non-residential developments seeking a certificate of occupancy.

Presentation: A Review of NRDF
Frequently asked questions 

Construction Officials can contact the Division of Codes and Standards at 609-292-7899 and Tax Assessors can contact the Division of Taxation at 609-292-7974 with additional questions.
The following development types are exempt from the fee:
  • Non-profit and public education buildings
  • Houses of worship
  • Public amenities (recreational, community, or senior centers)
  • Parking lots and structures
  • Nursing home or non-profit hospital relocation or improvement
  • State, County and local government buildings
  • Transit Hubs, Villages, and Light Rail Hubs
  • Commercial farm buildings and Use Group U structures
  • Developments with a general development plan approval, or executed developer’s or redeveloper’s agreement, prior to July 17, 2008 with a fee or affordable housing requirement the equivalent of at least 1% of EAV