On Monday, March 17, the Senate Community and Urban Affairs Committee favorably reported S-3481, which requires construction permit applicants to disclose the financing for their construction projects.
The League opposed this measure because the legislation adds an additional unfunded burden by requiring municipalities to determine whether a project is financially feasible or not. The determination of appropriate financing for a project is generally outside the general expertise of municipal personnel who approve construction permits. We are concerned about the potential for legal challenges over any denial of a construction permit based on funding.
In addition, as construction permits are a government record subject to disclosure under the Open Public Records Act (OPRA). Governor McGreevey’s Executive Order 26, section 4(b) does exclude from disclosure “information describing a natural person's finances, income, assets, liabilities, net worth, bank balances, financial history or activities, or creditworthiness, except as otherwise required by law to be disclosed.” The legislation does not explicitly exempt the information from disclosure under OPRA, therefore, we anticipate legal challenges.
If it is the intent of the sponsor that this information be available to contractors or other participating in the development process, there has to be a better way for that information to be transmitted that does not involve municipal government.
The bill may now be considered by the full Senate. The Assembly companion, A-4626, is referred to the Assembly Regulated Professions Committee.
Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110.