Everything You Should Know About Proposed Assembly Bill No 1921
Owners of contaminated residential properties often have great difficulty selling them due to real or perceived health threats associated with said contamination. However, if Assembly Bill No 1921 is enacted into law, owners of residential property contaminated with volatile organic compounds (VOCs) may be able to demand that the New Jersey Department of Environmental Protection (DEP) offer to purchase the property.
Levels of VOCs in the indoor air of the residence exceed applicable screening levels and require remedial action to protect the health of the residents;
Levels of VOCs in the soil at the property exceed applicable soil remediation standards; and
The owner had no notice that the property was contaminated with VOCs at the time of purchase.
Components of Assembly Bill No 1921
The bill would require homeowners to request purchase by the DEP within one year after the date of enactment of the bill or within one year after the date of discovery of the contamination – whichever is later. The DEP would then be required to make its purchase offer within 60 days. In addition, the DEP would be required to purchase the property at fair market value without allowing for any diminution in value caused by the contamination.
Once purchased, the structures at the property would be demolished and the property would be remediated for use as open space. Funding for the proposed actions would be made available from the New Jersey Spill Compensation Fund. The Assembly passed the proposed bill by a vote of 60-13 in June, and it is currently pending before the Senate Budget and Appropriations Committee. The DEP opposes the bill, citing the costs of purchasing contaminated properties. We will be closely tracking Assembly Bill No 1921 as it proceeds through the Legislature and we will post updates as they become available.
Are you a residential property owner? Are you unsure how Assembly Bill No 1921 could affect you? Please contact me, Dan McKillop, with any questions regarding the proposed bill.
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
