NJBIA and other business and labor organizations have urged intervention by the governor and Legislature to prevent the New Jersey Department of Environmental Protection from implementing a rule altering current flood hazard and land use regulations. This request comes after the end of the public comment period on the proposed regulation known as the Resilient Environment and Landscapes (REAL) rule, which the DEP plans to finalize and adopt by summer 2025. NJBIA and various stakeholders have voiced their opposition to this rule during public hearings.
The coalition communicated their concerns in letters to Governor Phil Murphy and all 120 legislative members, stating that "the businesses and labor groups who have signed this letter believe that this proposal is extreme and will harm homeowners, workers, and the economy of the state." They emphasized the possibility of achieving environmental protection goals through "a more balanced, well-thought-out approach."
One of the critical aspects of the rule is the establishment of "inundation risk zones" (IRZs) and "climate adjusted flood elevation" (CAFE) areas for new, expanded, redeveloped, or significantly improved developments. These rules mandate that properties in IRZs be constructed five feet higher than current flood standards.
The business and labor groups highlighted several concerns about the DEP PACT rule, arguing that it could lead to devalued properties, halted development, and increased property taxes due to newly defined flood zones. They also claim that it will raise housing costs and complicate affordable housing efforts. Moreover, they assert that the rule will negatively impact urban redevelopment, impose numerous new requirements on all developments, result in decreased property values due to mandatory flood notices, and lead to a rise in required flood insurance costs.
The letters and concerns can be viewed through provided links.
