As of July 1, 2010, the 2.5% fee on non-residential development is once again in effect. This 2.5 % fee was originally applied in 2008 with the enactment of the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1-8.7) and was later suspended as part of the New Jersey Stimulus Act of 2009. With the introduction of Senate Bill S-1, it was anticipated that the 2.5% commercial fee would be eliminated or removed from the affordable housing formula. S-1 passed the Senate in June, 2010 but has been held up by the House for further discussion. As we work through the affordable housing mess, developers and municipalities should be cognizant that the 2.5% non-residential development fee is currently in effect. This could and should change soon but as of July 1, 2010, the fee is no longer suspended. Stay tuned as these issues will be further reviewed and discussed this fall.