The bill amends New Jersey law concerning financial agreements for urban renewal projects, establishing that all approved projects must be supported by a financial agreement requiring full performance within 30 years of completion. Key provisions of these agreements include profit limitations, tax exemptions for improvements, annual service charge payments for municipal services, and mandates for annual audits and inspections. Additionally, municipalities are permitted to impose an administrative fee of up to two percent on the annual service charge. The bill also extends the duration of tax exemptions for urban renewal projects to a maximum of 30 years post-completion or 35 years from the financial agreement's execution, with a structured schedule for annual service charges based on gross revenue or total project cost.

Moreover, the bill introduces specific reporting requirements for municipalities regarding financial agreements made after the effective date of P.L.2003, c.125. Municipalities must now provide detailed project information, including the project name, agreement dates, annual service charge amounts, and county tax details. These reporting requirements aim to enhance transparency and accountability in municipal financial dealings related to long-term tax exemptions. The act will take effect on the first day of the third month following its enactment, applying to all annual service charges received from that date onward for agreements made after the specified effective date.

Statutes affected:
Introduced: 40A:20-9, 40A:20-12
Advance Law: 40A:20-9, 40A:20-12
Pamphlet Law: 40A:20-9, 40A:20-12