Residential Leases

Due to the decline in property values and the unstable real estate market, a lot of our clients have been renting out apartments, condominiums and houses, rather than selling, in order to cover carrying costs until the market returns. Darrell Felsenstein, Esq., Partner in the firm’s Litigation Department reminds us that all Landlords of any residential properties must file a statement with the municipality in which the residential property is located, pursuant to N.J.S.A. 46:8-27. A copy must also be provided to the Tenant. The statement must include such information as name and addresses for the record owner of the property, the registered agent and corporate offices, the property manager (if any), emergency contact information, an address within the county where notices from tenant are to be sent, name and address of any mortgage holder and if fuel oil is used, the grade, as well as, the name and address of the dealer servicing the property.

TAX EXEMPTIONS REINSTATED FOR GROUP HOMES FOR THE MENTALLY DISABLED

TAX EXEMPTIONS REINSTATED FOR GROUP HOMES

FOR THE MENTALLY DISABLED

 

 

 

In our winter 2010 Legal Update, we reported on a state tax court decision eliminating real property tax exemptions for certain private, not-for-profit companies.

 

In the case of Advance Housing Inc. versus Township of Teaneck, a New Jersey Appellate Court has reversed the State Court determination, finding that a non-profit organization that provides housing and counseling services to people with psychiatric disabilities should be granted property tax exemptions.  The Court reviewed the New Jersey Statutes Section 54:4-3.6 dealing with the definition of a charitable organization that is exempt from property taxation.

 

The lower Tax Court Judge had stated that the company has no “institutional aspect”, has no “hospital purpose”, and he found it significant that the people residing in the housing are not required to undergo counseling.  The Appeals Court addressed the Tax Court ruling by stating “To the extent he meant that the services had to be provided in an ‘institutional setting’ we disagree”, and the Appeals Court was not troubled by the fact that the company also provides counseling and supportive services to others who are not residents of the group home.

 

These cases are always fact sensitive.  The Tax Court ruling that has been reversed was a particularly troublesome ruling.  As we reported in our Legal Update article, the State has incentivized institutions to place more residents in local group home settings, by shutting down many of the institutions!  Bona fide group homes that provide these services cannot exist if they are required to pay real property taxes.  With all due respect to the Tax Court Judge, we think the Appellate Court got this one right.

Stuart D. Liebman, Esq.

Extension of non-residential fee moratorium

Extension of Nonresidential Development Fee Moratorium

 

On August 24, 2011 Acting New Jersey Governor Kim Guadagno signed into law legislation which extends the moratorium on requiring developers to pay a nonresidential development fee to those projects which obtain final approval prior to July 1, 2013 provided a construction permit is issued before January 1, 2015.  As you may recall, this was a state-mandated fee which was meant to provide municipalities with the means to provide affordable housing.  Since the initial moratorium expired on June 30, 2010, the legislation also retroactively applies to those projects which were approved since July 1, 2010.  For those projects which have already paid the nonresidential development fee, a claim for a refund must be submitted, in writing, by December 22, 2011 to the governmental body in which the original payment was made. 

 If you believe that your project is entitled to such a refund it is imperative that you contact our firm immediately.  The reason being that any portion of your development fee already spent on affordable housing projects is not entitled to a return. 

 Please feel free to contact our office to discuss your particular approval in greater detail. 

Andrew S. Kohut, Esq.

Non-residential Fee Act

On June 27, 2011 both the New Jersey Senate (S2974) and Assembly (A4221) unanimoulsy introduced legislation modifying the “Statewide Non-Residential Fee Act”. The bill seeks to extend a moratorium on the requirement of these fees to any projects which obtained final approval prior to July 1, 2013 provided a construction permit is issued before January 1, 2015. A developer is also entited to a refund if the fee has already been paid for a project approved after June 30, 2010. A claim must be submitted, in writing, within 120 days of the effective date of this bill, to the same entity to which the moey was paid. However, if the money was already spent on affodable housing projects a developer ise not entitled to a return!!!

We will continue to monitor this situation as it develops. In the meantime, if you believe you are entitled to a refund, we recommend that you begin to gather any pertinent information with regard to your claim. Once this bill is passed, it will be imperative that you submit your claim immediately in order to avoid any unreasonable delay. Please feel free to contact our office to discuss your partiular approval in greater detail.

Andrew S. Kohut, Esq.