On June 24, League staff testified before the Assembly State and Local Government Committee in opposition to A-2623, the “Home Based Job Creation Act.” This bill would permit a family home business to exist in a residential zone as an accessory use and not require a use variance under section 57 of P.L.1975, c.291 (C.40:55D-70). Despite the League’s opposition, the legislation was favorably reported out of the committee.
This bill creates a loophole that allows home-based businesses, currently illegal under a municipality’s zoning law, to become legal and protected by overriding any inconsistent local ordinance but then permits a municipality to adopt a later ordinance that could be the same as the original local ordinance that was overridden.
In addition, if a municipality presently prohibits, by ordinance, certain home occupations and such use is permitted by the legislation, upon readoption of the same ordinance, such use would be protected as a preexisting nonconforming use. In municipalities with no specific provision regarding home-based businesses or occupations, there is typically a provision in their ordinance that provides that no uses are permitted unless they are specifically permitted. In these cases, this legislation would work to permit all home-based businesses or occupations, allowing the municipality to adopt a subsequent ordinance to restrict or prohibit those uses. However, businesses currently illegal under the existing zoning law but legal according to this bill would benefit from preexisting nonconforming use status in the interim.
Additionally, this bill imposes restrictions on the number of invitees or guests that apply to home-based businesses or occupations. The effect of such a provision would be to restrict social gatherings; Scout meetings; birthday parties; and all sorts of events that presently occur in residential homes if the municipality attempted to limit the number of business invitees or guests who could frequent the business in the residential zone. These normal residential activities should not be bound by the same regulations as business interests.
This legislative concept of overriding local zoning rules for home-based businesses has existed in various forms and has been proposed multiple times over the past decade. The League has consistently opposed it.
A-2623 waits for consideration by the full Assembly. The Senate companion, S-116, has not been scheduled for consideration. We will alert you if this legislation advances further but encourage you to reach out to your Assembly and Senate representatives to express your specific concerns.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.