Welcome to the latest edition of Cutting Edge, a semi-annual publication of timely and important articles impacting the building industry. These articles were written by some of the most knowledgeable and informative entities and individuals in the building industry who, not coincidently, are also Master Sponsors of NJBA. This publication is one of the many ways that our Master Sponsors serve NJBA and the building industry. Not surprisingly, Cutting Edge, has quickly become one of the best read newsletters published by NJBA.
That is the typical question posed whenever I raise or mention affordable housing issues with developers, municipalities and sometimes other attorneys. My response: Yes, COAH is gone in the same way the DMV is gone; however, we are still required to have a driver’s license and to register our cars.
The “for sale” market has been a challenge in this economic environment. High unemployment, falling housing prices, and buyer fear have all contributed to the decline of home sales. The potential onslaught of new foreclosure inventory over the coming 6-18 months, combined with the lack of improved land tracks to develop in New Jersey (limited to mostly redevelopment parcels) and the limited amount of lenders willing to underwrite “for sale” financing including land acquisition and construction have all impacted this segment of the building industry. It has become a buyer’s market with a “bargain” pricing mentality.
IS THIS WHAT YOU REALLY AGREED TO?
The charm of the construction industry is that many things still get done – and done well – on a handshake. When dealing with union labor agreements, however, contractors have to ensure that the promises being made to them are in writing, and they understand all of the provisions in the agreements they sign.
The status of Sewer Service Area (SSA) mapping is currently up in the air. As a result, the potential for development in numerous areas in the State is also up in the air. To date, no WMP has been formally adopted and yet, no SSA has been withdrawn nor has the implementation date been extended. It is unclear when or how DEP will address this issue. So, don’t be caught off guard - know where you stand now.
After many years of inaction, there are new developments coming out of Trenton with respect to state land use planning.
The State Planning Commission (SPC) has recently issued a “Proposed Final Draft: State Strategic Plan” (Strategic Plan). The SPC has also formally approved the draft Strategic Plan for comment, while declaring that the 2001 State Plan Policy Map would remain in effect until the Strategic Plan is formally adopted.
When I talk with clients or prospective clients about our managed service plans, many seem uncertain because they think it’s just insurance for when something bad happens.
According to Wikipedia, managed services is the practice of transferring day-to-day management responsibilities as a strategic method for improved effective and efficient operations.
Many business owners find their wealth is mostly tied up in their businesses, which provides well for them and their families. When it comes to protecting their business, however, business owners often have not quantified how they would replace their income when the time comes for them to exit or sell their business and retire.
Home builders arecontinuing to struggle with a challenging market. The good news is that with this lagging demand for new homes, the opportunity forremodeling is increasing. Remodeling spending has nearly doubled in the last decade and is expected to see an even sharper increase over the next five years.
In a recent decision affecting many business owners, the New Jersey Supreme Court held that a corporate principal or employee can be held personally liable under the Consumer Fraud Act (CFA) for regulatory violations. While the Court has previously held that an individual could be held liable under the CFA for an affirmative act of misrepresentation or knowing omission, the difference here is that regulatory violations are analyzed in terms of strict liability, meaning the individual’s intent to violate the regulation is irrelevant. Moreover, the Court did not require a traditional “corporate veil piercing” analysis which requires proving that the corporate principals used the corporation to perpetuate a fraud, commit a crime or otherwise evade the law. Instead, the Court held that the determination “must rest on the language of the particular regulation in issue and the nature of the actions undertaken by the individual defendant.”
As a result of the lengthy recession, it has been increasingly difficult for developers to deal with the high costs of obtaining project approvals and secure project financing. Lending institutions are hesitant to provide financing without assurances that projects will remain viable over time. New legislation, known as the “Vertical GDP” law, allows developers to obtain general development plan (GDP) approvals for projects typically located in more urban and developed areas of the State.
After an incredible surge, as a result of some of the most beneficial incentives in the nation, the New Jersey solar energy market is experiencing volatility that may cause the state to lose its position as the fastest growing solar market in the nation. Spurred by compensatory Solar Renewable Energy Credits (SRECs) and the state's requirement that utility companies meet Renewable Portfolio Standards (RPS) or be subject to Solar Alternate Compliance Payments (SACPs), more than 11,000 commercial and residential solar installations have come on-line as of September 2011. However, the over-production of installations caused SREC values to drop dramatically, from approximately $640 in June of 2011 to approximately $165 in September of 2011. Like most market-based pricing, the drop in SREC pricing is likely the result of supply outpacing demand.
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