Jersey City Tax Abatement/market rate housing fee question

3 Replies

I recently purchased a 3 family in the Journal Square.  My understanding was that there was a tax abatement since it was new construction.  I found out upon going to the tax collectors office that the application for the 5 year tax abatement was filed by the builder, but the Market Rate Housing fee was not paid.  JC requires $1500 per unit is given to the affordable housing trust fund.

My question is who is responsible for the $4500, the buyer or the builder/developer?  Of course the developer feels it is my responsibility and I feel it is his.   Anyone have insight on this?

I do development. It should be the builder's responsibility. Typically the builder will file for it and contribute to the trust fund as part of the application. Usually the builder applies while under construction or after it's approved by city planning or the bldg department.  It would be pretty cheap of the builder not to pay it.  Maybe it's a small time builder. Ask the realtor on it or your attorney.

Not too familiar with this, but I think you buying the property and it not being paid means you're on the hook unless the law says the builder needs to pay it. Did this not come up in a title search?

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