Attorneys for the New Jersey Builders Association and NJBIA have filed a notice of appeal to challenge a controversial set of Land Use rules finalized on Gov. Phil Murphy’s last day in office that will saddle towns, residents and developers throughout the state with added costs and regulatory burdens.

Both groups clarified that the filing with the state’s Appellate Division of Superior Court is not in any way a challenge against the current Sherrill administration, but against the state Department of Environmental Protection Resilient Environment and Landscape (REAL) Rules under Murphy.

The groups also added that they wholeheartedly support Sherrill’s regulatory reform agenda and the prioritization of making housing more affordable, and noted that the last-minute Murphy-era rule goes directly against both missions.

Meanwhile, a new bipartisan resolution, sponsored by Senate President Nicholas Scutari, has been introduced, stating the DEP's Protecting Against Climate Threats (PACT) rules are inconsistent with legislative intent.

“In addition to this being the next strike against affordability in New Jersey, the rule was drafted without meaningful stakeholder collaboration or any credible economic analysis,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor. “It was fundamentally flawed, and its provisions were too numerous and complicated to be merged into one regulatory framework.

“Adding insult to injury, the Murphy administration left New Jersey on its very last day with a set of rules that will greatly increase the costs of housing in coastal and river communities, increase flood insurance costs, or require flood insurance in areas that have never flooded and may never flood. Property values will also be lowered in some cases – all while impacting the state’s affordable housing goals.”

“NJBA strongly supports climate resilience and environmental protection,” said NJBA President and CEO Jeff Kolakowski. “But those goals must be pursued in a way that is legally sound, economically responsible, and compatible with New Jersey’s urgent need for housing.

“The 1,000-plus page REAL rule goes far beyond sea level rise resilience and is laden with DEP wish list items that do little to nothing to improve resiliency. They are inconsistent with the state’s economic growth strategy, redevelopment goals, state plan and overall housing strategy.”

“Governor Sherrill has made affordability, ‘Getting to Yes’ permitting, and government efficiency top priorities. Her administration should not have to inherit the unintended consequences of a rushed rule adopted in the final few hours of the previous administration. The prescriptive and stringent standards of the rule ultimately hurt our state’s ability to adapt to climate change as communities will suffer from a lack of investment and flexibility in how to meet this challenge,” Kolakowski added.

“Further, this rule was adopted at the worst possible time—right in the middle of implementing New Jersey’s landmark Fourth Round affordable housing framework. Changing the regulatory rules of the game now will create confusion for municipalities, developers, and the courts, and risks derailing the real progress that has finally been made toward addressing our state’s housing shortage,” he said.

Among the many requirements of the 1,000-plus-page rule was a provision that new homes constructed in expanded flood-risk areas be raised 4 feet higher than the current FEMA-base flood elevations.

It will also apply to homes undergoing renovations that add 50% more than the home’s value.

In addition to strong opposition from NJBIA and NJBA over the past 20 months, the PACT rules were also opposed by more than 130 mayors, multiple municipal and county associations, and the New Jersey Business Coalition, none of whom are part of the legal filing.

NJBA and NJBIA are represented by the firm of Giordano, Halleran & Ciesla.