The "Municipal Development Impact Fee Authorization Act" empowers New Jersey municipalities to levy development impact fees on new construction projects to address the strain on local infrastructure caused by economic growth. The bill establishes a framework for municipalities to create ordinances that impose these fees, which can be used for necessary capital improvements related to transportation, water and wastewater management, educational facilities, and public safety. Importantly, the bill exempts low and moderate-income housing from these fees and requires municipalities to have an adopted master plan and capital improvement program before implementing any impact fee ordinances.

Key provisions include the formation of a Development Impact Fee Review and Advisory Commission (DIFRAC) to assist municipalities in developing fair fee standards and to evaluate the implementation of these ordinances. The bill outlines the requirements for calculating fees, mandates that 50% of the fee be paid before a construction permit is issued, and allows for appeals of assessed fees. Additionally, it specifies that impact fees must be segregated in a special infrastructure trust fund and sets limits on how long municipalities can hold unexpended fees. Overall, the act aims to provide a structured approach for municipalities to fund infrastructure improvements while ensuring fairness for developers.

Statutes affected:
Introduced: 40:55D-3, 40:55D-29, 40:55D-10, 40:55D-42, 52:27D-130, 52:27D-133