SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 4379

STATE OF NEW JERSEY

DATED:  MAY 12, 2025

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 4379.

      This bill replaces the fixed interest rate award in eminent domain cases with an interest rate based on just compensation awards. 

      Under current law, interest rate awards in certain eminent domain cases are either: (1) fixed at 6 percent, or (2) set at an applicable “legal rate.”  This bill eliminates the fixed rate and provides that the interest will be determined by the court in a summary manner after final determination of compensation. 

      Under the bill, in making its determination, the court is permitted to consider any relevant factors, including but not limited to:

      (1) prevailing commercial interest rates;

      (2) the prime rate or rates;

      (3) the applicable legal rates of interest; and

      (4) an appropriate interest rate on a just compensation award that justly indemnifies the condemnee for the loss of the use of the compensation to which the condemnee was entitled.

      As reported by the committee, Senate Bill No. 4379 is identical to Assembly Bill No. 4468, which was also reported by the committee on this date.