NJ A5883

Authorizes municipalities to adopt ordinances imposing one-time impact fees on developers to fund infrastructure improvements necessitated by new development, as an alternative to existing authority under the Municipal Land Use Law

Requires impact fees to be calculated using recent, localized data including population projections, traffic data, school enrollment forecasts, public safety response data, and construction costs, with fees proportional to the development's impact

Establishes phased-in rate increase limits: increases up to 25% implemented over 2 years, 25-50% increases over 4 years, and increases above 50% require a demonstrated need study, two public hearings, and two-thirds governing body approval

Mandates developers receive credits against impact fees for contributions such as land dedications, infrastructure construction, or proportionate fair share agreements, with credits applied at fair market value

Requires municipalities to submit annual reports to the Commissioner of Community Affairs detailing impact fee collection and expenditure, with certification by the local chief financial officer that funds were used in compliance with the law