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NJDEP Blue Acres Program Adverse Impact on the Tax base of Local Municipalities

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the staff of the Ridgewood blog
Westwood NJ, the Mayor of Westwood Ray Arroyo spoke at length in a Facebook post on the impact of the NJDEP Blue Acres Program on the tax base of the municipality .
The NJDEP Blue Acres Program (within the Green Acres Program) purchases improved residential lots in flood prone areas in cooperation with FEMA and once acquired, removes the structures and improvements from the floodplain.   The project area for surveys may include lands that have already closed or are under contract pending closing.

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“The NJ League of Municipalities Legislative Committee has formally voted to endorse S 790.Senator Schepisi’s bill has languished in Committee since January 18 of this year.
It has bipartisan support and is co-signed by D Senator Joe Lagana (NJ 38). The Flood Group that Councilwomen Collins and Hodges is working with has now garnered over 800 signatures on its Change. Org Petition in support of the legislation.
The Increasing importance of passing S-790 (A-4200) is underscored by the recent communication the Borough received from the Blue Acres Program .Blue Acres is looking at 8 SRL homes in Westwood for potential buyouts pending confirmation of eligibility AND availability of Federal funding. Should all eight come off the tax rolls that would represent a net tax revenue loss of $71,647 (school AND municipal portion equals $63,197, per 2022 valuations and tax rates).
That may seem like a reasonable price to pay for additional greenspace. However as we are a fully developed community, returning improved parcels to nature, on a scale that significantly reduces aggregate flood loss; can increase pressure for higher density redevelopment projects elsewhere in the borough, to offset that revenue reduction. The state’s policy preference is to remove these flood threatened homes, families and businesses through negotiated buyouts .
The Borough would like our residents to have the option of remaining members of the Westwood family, and not be forced to uproot themselves and their children to start anew someplace else. We’d like to keep the unique businesses that contribute to the serendipitous shopping and services Westwood offers.
The state’s DCA Ida Recovery program offers elevation funding as reimbursable grants – a harder option for most homeowners than a simple buyout. The property owner must front the elevation expense ( $150 K on average); and get reimbursed up to 75% – upon completion. There is also a federal FEMA program that reimburses qualified grantees 100% of eligible costs .A piecemeal loss of ratable extrapolated, at scale, over time, can eventually present revenue challenges; that the governing body will have to flag as a “what if” in its fiscal planning. Inflation and recessionary economies place additional stresses upon municipal budgets.
The responsible flood mitigation protocols required by S-790, can help keep residents in their homes and tamp down rising flood insurance premiums.
It can help preserve the tax ratable that local government, county government and school districts depend upon to deliver quality services and infrastructure improvements. It can reduce pressure for high density overdevelopment.
And it’s a low cost alternative to more effective, system-wide infrastructure interventions that neither county, state nor federal governmental entities have, to date, deemed worthy of pursuit.”
Ray Arroyo
Westwood Mayor

3 thoughts on “NJDEP Blue Acres Program Adverse Impact on the Tax base of Local Municipalities

  1. They need to get the county to dredge all the Brooks. That would be a big help

  2. Keep the street’s clean.

  3. The manager needs to keep the storm drain’s cleaned. That will help.

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