NJBIA, Building, Labor Groups Urge Sherrill Administration to Reconsider DEP Land Use Rules 

On Feb 6, 2026

NJBIA and several building and labor groups are urging the Sherrill administration to reconsider NJDEP Land Use rules finalized before the governor’s recently signed Executive Order 7, which institutes a 90-day pause on new rule proposals and adoption of pending regulations to ensure a more affordable New Jersey.  

The controversial Resilient Environments and Landscape (REAL) rules, which greatly expand New Jersey’s flood zones despite dated science, will make it more difficult to develop and raise overall building costs. 

After more than a year of contentious debate about the rules, they were adopted on Jan. 20 in the final hours of the Murphy administration. 

Gov. Mikie Sherrill signed Executive Order 7 three days later. 

As a result, NJBIA, ELEC 825, NAIOP – New Jersey, New Jersey Builders Association and New Jersey Realtors issued the following letter to the Sherrill administration this week: 

“The undersigned organizations congratulate you on your inauguration and commend the ambitious vision you have articulated for restoring affordability, improving government performance, and expanding economic opportunity in New Jersey. As representatives of the state’s employers, housing providers, developers, and job creators, we share your belief that New Jersey must remain a place where businesses can invest, families can prosper, and communities can grow. 

Building on this shared objective, we write to urge your administration to apply the “first, do no harm” principles of Executive Order No. 7 to the NJDEP Protecting Against Climate Change (PACT) Resilient Environments and Landscapes (REAL) rule, which was adopted on the final day of the previous administration.  

While we recognize that the REAL rule may not technically fall within the automatic embargo provisions of EO 7, its timing, scope, and unresolved impacts warrant the same pause for careful review by the Office of the COO, the Cross-Agency Permitting Team, and the Regulatory Simplification Team to evaluate the rule’s consistency with your affordability, efficiency, and economic growth agenda, as well as its interaction with existing housing laws. 

The REAL Rule Conflicts with the Intent of EO 4 and EO 5 and Hurts Affordability 
Your early executive actions, particularly Executive Orders No. 4 and No. 5, demonstrate a commitment to improving regulatory accountability, streamlining permitting, reducing unnecessary costs, and ensuring that state policies align with measurable outcomes for residents and employers alike. These principles are especially critical as New Jersey confronts a severe housing affordability crisis and mounting economic competitiveness challenges. The REAL rule directly conflicts with these objectives and was adopted without the cross-agency efficiencies contemplated by EO 4 and EO 5.  

The REAL rule imposes excessive flood elevation and stormwater standards along with dozens of other significant rule changes that significantly increase development costs and timelines, discourage investment and reduce the production of both market-rate and affordable housing. The public, businesses and your incoming administration deserve a rule that has been robustly stakeholdered and which properly balances our need to address affordability and grow our economy with our need to increase resiliency.  

Although NJDEP proposed amendments in response to widespread opposition from the New Jersey Urban Mayors Association, the League of Municipalities, the Association of Counties, more than 100 mayors, multiple counties, and nearly 100 business and trade organizations, the core structure and economic consequences of the REAL rule remain largely unchanged.  

The seriousness of these concerns is highlighted by the litigation authorized by multiple counties, citing conflicts with the Fair Housing Act, the Mount Laurel doctrine and NJ Constitution. We agree with those concerns and are concerned that any further uncertainty surrounding the rule with a drawn-out litigation process will further discourage investment in the production of both market-rate and affordable homes at a time of acute statewide housing need.  

 A Pause for Review Is Consistent with EO 7’s Purpose
Executive Order No. 7 reflects your administration’s recognition that major proposed at the close of a prior administration deserves careful review before taking effect. The REAL rule fits squarely within the spirit of that directive. Its late-term adoption, unprecedented scope, and far-reaching economic consequences justify an embargo to allow your administration to work through the Office of the COO, the Cross-Agency Permitting Team, and the Regulatory Simplification Team to fully evaluate its economic effects and its consistency with your policy priorities. 

 Accordingly, we respectfully request that your administration hold the REAL rule for further review under the authority and intent of EO 7. Doing so would allow for meaningful stakeholder engagement, rigorous economic and housing impact analysis, alignment with the permitting and regulatory reforms established under EO 4 and EO 5, and for compliance with the state’s affordable housing laws and goals. 

 We strongly support efforts to improve climate resilience and environmental protection. However, these goals must be pursued in a manner that is economically sound, administratively efficient, and compatible with New Jersey’s urgent need for housing, investment, and job creation. We appreciate your consideration and look forward to working with your administration to advance balanced and effective solutions for New Jersey.”

 

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