The bill amends New Jersey law concerning financial agreements for urban renewal projects, requiring that every approved project be documented through a financial agreement between the municipality and the urban renewal entity, which must be sanctioned by municipal ordinance. This financial agreement will detail project terms, including profit limitations, tax exemptions for improvements, and mandates for annual reporting and inspections. Additionally, it allows municipalities to impose an administrative fee of up to two percent of the annual service charge. The bill also extends the duration of tax exemptions for urban renewal projects to a maximum of 30 years from project completion or 35 years from the execution of the financial agreement, while establishing a structured schedule for annual service charges based on a percentage of gross revenue or project costs.

Moreover, the bill modifies the "Long Term Tax Exemption Law" to include new reporting requirements for municipalities regarding financial agreements made after the effective date of P.L.2003, c.125. Municipalities are now required to provide comprehensive details about each financial agreement, including project specifics and financial obligations to the county. The act will take effect on the first day of the third month following its enactment and applies to annual service charges for agreements entered into on or after the effective date of P.L.2003, c.125, ensuring accountability and transparency in the reporting of financial agreements and their associated charges. The bill was approved on July 8, 2025.

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