Builders, businesses and homeowners have won a one-year reprieve on the former Murphy administration’s controversial land use rules that will require new and some renovated buildings in expanded flood zones to be elevated 4 feet above the federal standard.
State Department of Environmental Commissioner Ed Postosnak said DEP intends to publish a rulemaking proposal in the New Jersey Register on Monday that extends the compliance date in Resilient Environments and Landscapes (REAL) rules from July 20, 2026, to July 20, 2027. Projects submitted for approval before then would not need to meet the higher flood-elevation standard that the REAL rules require.
“We are taking a close, comprehensive look at the REAL rules to ensure they reflect our core priorities of protecting lies and property, supporting responsible development and improving government efficiency,” Gov. Mikie Sherrill said Friday. “This extension gives us time to meaningfully engage with local leaders, communities and other stakeholders across New Jersey to get this right.”
During the review period, the DEP will engage with interested parties, including residents, municipalities, counties, regional planning entities, real estate developers and members of the environmental, business, and insurance communities, the DEP announcement said. The rulemaking will include a 60-day public comment period including a virtual public hearing. Information including a link to the virtual public hearing will be provided on DEP’s website.
“We are grateful to the Sherrill administration for its plans to extend the legacy period in these rules and we look forward to working with them over the next year on practical and pragmatic solutions to provide our residents and businesses flood protection, while also accounting for affordability, fewer burdens and our overall economy, and well as an emphasis on resiliency,” NJBIA Deputy Chief Government Affairs Officer Ray Cantor said.
The rules were adopted by the Murphy administration on the former governor’s last day in office. NJBIA has led a nearly two-year effort to stop the REAL rules and in March joined with the New Jersey Builders Association in filing a notice of appeal in the Appellate Division of Superior Court to have the rules overturned.
NJBIA has argued that the rules are based on outdated science and were adopted without meaningful stakeholder collaboration or any credible economic analysis. The rules, which were adopted without legislative involvement, would saddle towns, developers, and residents with added regulatory burdens and greatly increase housing costs in coastal and river communities.
Additionally, new expanded flood zones mean property owners would be required to purchase flood insurance for homes and buildings in areas that have never flooded and may never flood, and impacted towns would find it increasingly difficult to meet affordable housing goals.
The REAL rules are also opposed by more than 130 mayors, multiple municipal and county associations, and the New Jersey Business Coalition.
Meanwhile, a bipartisan resolution is also pending in the state Legislature that would invalidate the rules on the grounds that they are inconsistent with legislative intent.
The REAL rule applies to proposed construction, such as new development, redevelopment and substantial improvements to residential, commercial, and critical buildings and infrastructure that are regulated under the state’s Coastal Zone Management rules, Freshwater Wetlands Protection Act rules, Stormwater Management rules, and Flood Hazard Area Control Act rules.
“DEP is committed to stewarding a thoughtful and comprehensive review of the REAL rules that brings all stakeholders to the table and advances the Governor’s priorities of streamlining permitting, supporting new and resilient development, and protecting life and property,” Potosnak said. “We look forward to engaging closely with all stakeholders, so we can identify targeted improvements that will balance these priorities and deliver a framework that balances efficiency with safety."
