Senate Community & Urban Affairs committee amended and advanced legislation (S-4069) requiring cost benefit analysis for PILOTs. The bill has been referred to the Senate Budget & Appropriations Committee.
S-4069 requires a cost benefit analysis for PILOT projects on the impact of the PILOT on municipal, school, county, and other taxing districts finances. The cost benefit analysis must include the net impact based on estimated PILOT payment and one-time and periodic expenses to the municipality, municipal revenue to be gained or lost, estimated financial impact if the project is not approved, property tax revenue foregone by the county and school district, and impacts on equalization and component of school funding. In addition to the cost benefit analysis by the municipality, there also must be an independent cost benefit analysis. Both cost benefit analyses must be published on the municipal website within 30 days. A resolution approving the PILOT agreement must include the findings of the financial impact.
The Senate Community & Urban Affairs Committee amended the bill to exempt inclusionary development that is part of a municipality’s compliance certification or a pending request for a compliance certification pursuant to the "Fair Housing Act," from the cost benefit analysis.
The amended bill now heads to the Senate Budget & Appropriations Committee for consideration.
Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.