SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 1766
with committee amendments
STATE OF NEW JERSEY
DATED: MAY 11, 2026
The Senate Community and Urban Affairs Committee reports favorably and with committee amendments Senate Bill No. 1766.
As amended and reported, this bill establishes a limited preemption from local zoning regulations for applications to convert certain office parks and retail centers that meet the eligibility requirements of the bill into mixed-used developments. A developer of a proposed project to repurpose or redevelop a retail center or office park into a mixed-use development is required to demonstrate that the retail center or office park located on the lot, or contiguous lots, or land included in the application for development meets the following requirements to be deemed an eligible property:
(1) the office park is at least 50,000 square feet or the retail center is at least 15,000 square feet;
(2) (a) the office park or retail center has a vacancy rate of at least 25 percent for a continuous period of at least 18 months immediately preceding the application for development; or
(b) the office park or retail center has suffered an economic downturn over the three-year period immediately preceding the date of the application; and
(c) require that the owner of the property has made and maintained a continuous, good faith effort to redress the vacancy rate, actively rent, or actively market the property during the vacancy period set forth in the bill.
The bill provides that a mixed-use development that is the subject of an application for development to convert an eligible property is to be a permitted use and is not to require a use variance if the application for development complies with certain requirements provided in the bill.
The bill further provides that the municipal planning board is to approve an application to repurpose or redevelop an eligible property into a mixed-use development notwithstanding the eligible property’s location in the municipality, if the project complies with the zoning requirements applicable to projects within the municipality’s mixed-use zone. If the municipality has multiple mixed-use zones in its zoning ordinance, the municipality is to designate which of its mixed-use zones’ regulations are to apply to mixed-use developments that meet the requirements of the bill. Furthermore, a municipality’s mixed-use zoning ordinance must have been adopted prior to the date of enactment of the bill.
If the municipality’s zoning ordinance does not have a mixed-use zone, a development that meets the bill’s requirements is to be subject to certain other requirements provided in the bill.
The bill also directs the Department of Community Affairs to develop Statewide baseline density and bulk standards that would apply to municipalities with and without a current mixed use zone.
The bill provides that a municipal planning board cannot approve an application to repurpose or redevelop an eligible property into a mixed-use development if the project would cause a residential development to be located on a site with unresolved or unremediated contamination that poses a risk to residential use and also cannot approve an application to repurpose or redevelop an eligible property into a mixed-use development if the project would cause a residential development to be located on a site where there is a clear and direct incompatibility with adjacent high-impact uses, consistent with Department of Environmental Protection regulations, unless appropriate mitigation measures are demonstrated as part of the application for development.
A project undertaken pursuant to the bill is to be eligible for long term tax exemption pursuant to the "Long Term Tax Exemption Law," P.L.1991 (C.40A:20-1 et seq.) and is to be deemed an "area in need of redevelopment" or an "area in need of rehabilitation" without consideration of the requirements of the "Local Redevelopment and Housing Law," P.L.1991, c.431 (C.40A:12A-1 et seq.).
The provisions of the bill are not to prohibit or limit an applicant’s ability to apply and qualify for variances, tax incentives, financing, or grants.
A development project and any municipal action undertaken pursuant to the bill is to be in compliance with the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) and all other applicable municipal zoning ordinance requirements.
The bill defines the term “vacancy rate” to mean the percentage of unoccupied or unused square footage in a structure or facility, compared to the total square footage of the structure or facility.
The bill directs the Commissioner of Community Affairs to adopt rules and regulations necessary to effectuate the provisions of the bill.
This bill was prefiled for introduction in the 2026-2027 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
• add a definition of "mixed-use zone;"
• add specificity to the definition of "office park" to include a non-residential land use developed as a single entity combining general, business, professional, or medical offices that contain ancillary personal services primarily for employees located on one or more contiguous tax lots and planned, developed, and managed as a unit;
• add specificity to the definition of "retail center" to include a non-residential land use developed as a single entity combining retail stores and potentially other commercial uses located on one or more contiguous tax lots, and planned, developed, and managed as a unit;
• specify that mixed-use zoning ordinances are to have been adopted prior to the date of enactment of the bill;
• add language directing the Department of Community Affairs to develop Statewide baseline density and bulk standards that apply in certain specified circumstances; and
• add language prohibiting a municipal planning board from approving an application to repurpose or redevelop an eligible property into a mixed-use development on certain properties, as specified in the bill.