Schepisi-Ciattarelli Bill Aiding Homeowners of Flood-Prone Properties Approved by Assembly

WASHINGTON, D.C. – January 14, 2014 – (RealEstateRama) — Bipartisan legislation sponsored by Assemblywoman Holly Schepisi and Assemblyman Jack Ciattarelli to exempt flood-prone properties acquired by municipalities from county, school and fire district property taxes for the following tax year, was approved today by the General Assembly.

Under current law, if a municipality acquires such a property, it must pay the county, school, and fire district property taxes owed for all or the remainder of the following tax year.

Holly Schepisi

“The flooding caused by Superstorm Sandy and the devastation left by Hurricane Irene and Tropical Storm Lee in 2011 has increased the awareness of towns that continuously deal with this problem,” said Schepisi, R-Bergen and Passaic. “A municipality should not be deterred from purchasing property from a willing seller because they cannot afford that property’s tax liability. ‘Once-in-a-generation’ storms are occurring more frequently, and proper planning is necessary to limit the impact. ”

Municipalities receive grants for acquiring flood-prone property for conservation purposes under the Blue Acres Program. Towns may also receive funding from the Federal Emergency Management Agency (FEMA) for a similar purpose.

Jack Ciattarelli

“One of the best remedies for repetitive flooding is for municipalities to purchase homes in flood-prone areas,” said Ciattarelli, R- Somerset, Hunterdon, Mercer and Middlesex. “To provide relief to affected homeowners, we should be doing all we can to eliminate hurdles and make the Blue Acres and FEMA programs as successful as possible.”

“The effort to preserve open space should not be derailed because a town cannot afford to assume the obligation of paying a seller’s property taxes. That financial responsibility may thwart an otherwise beneficial transaction to both the homeowner and the town,” Schepisi added. “Conservation programs, such as Blue Acres, or funds received from FEMA for acquiring properties that are chronically subject to flooding, are extremely beneficial in the effort to reduce the impact on a municipality.”

The bill, A-3362, is co-sponsored by Schepisi and Ciattarelli’s Assembly Republican colleagues, Mary Pat Angelini, Scott Rudder, Scott Rumana, Jay Webber and Amy Handlin and Democrats Valerie Vainieri Huttle, Timothy Eustace, Peter Barnes III, L.Grace Spencer, Patrick J. Diegnan and Connie Wagner.