Sherrill Administration Revisits PACT REAL Rule

The Sherrill Administration has taken an important step toward revisiting New Jersey’s Protecting Against Climate Threats (PACT) Resilient Environments and Landscapes (REAL) rule by proposing a one-year extension of the rule’s legacy provisions and creating an opportunity for additional public review. Published in the June 3, 2026, New Jersey Register click here, the proposal would provide additional time for projects currently in the development pipeline while the Administration evaluates the rule click here and considers public comment.

The REAL rule is intended to address flood risk, sea-level rise, and climate resilience through updates to New Jersey’s land-use and environmental permitting framework. Because of its potential implications for housing, redevelopment, infrastructure investment, and permitting throughout the State, the rule has generated significant discussion across New Jersey.

Throughout the rulemaking process, concerns have been raised regarding potential impacts on housing affordability, redevelopment opportunities, infrastructure investment, permitting timelines, and the feasibility of future development projects. Questions have also been raised regarding the effect of the rule on redevelopment projects in already-developed communities where housing growth, adaptive reuse, and infill development are often encouraged. Many have expressed concern that portions of the rule could affect project costs, discourage redevelopment, and create additional challenges for addressing New Jersey’s ongoing housing shortage.

New Jersey continues to face significant housing affordability challenges as housing production has struggled to keep pace with population growth, household formation, and demand. Because permitting requirements, project timelines, financing costs, and regulatory uncertainty all influence the cost of delivering housing, changes to New Jersey’s land-use and environmental permitting framework can have significant implications for housing affordability, redevelopment activity, and future housing opportunities.

Residential, mixed-use, and redevelopment projects frequently spend years moving through planning, engineering, environmental review, permitting, financing, and local approvals before construction begins. The proposed extension would provide additional time for review and public engagement while helping provide greater certainty for projects currently moving through the approval process. It also creates an opportunity to avoid unnecessary disruption while the Administration evaluates the rule and considers additional feedback. For applicants, municipalities, property owners, and development teams, predictability within the permitting process remains critical as projects move from planning and approvals to construction and occupancy.

NJBA has consistently supported policies that advance both environmental stewardship and housing opportunity. New Jersey’s climate resilience goals and housing affordability goals should work together, not compete with one another. As the State continues evaluating the

REAL rule, it is important that future policies balance environmental protection with practical implementation, redevelopment feasibility, housing production, and long-term economic growth.

“You cannot solve a housing crisis by making it harder to build housing,” said NJBA CEO Jeff Kolakowski. “This review creates an opportunity to ensure New Jersey’s climate resilience policies are effective while still allowing communities to grow and provide housing opportunities for current and future residents.”

NJBA appreciates the Administration’s willingness to revisit the rule and provide additional engagement. We look forward to working with the Governor’s Office, DEP, policymakers, and interested parties to ensure New Jersey’s climate resilience efforts remain practical, effective, and supportive of housing affordability, redevelopment, and responsible housing production.

Related Resources

• NJBA Article on REAL Rule Litigation and Appeal Click here
• New Jersey Builders Association and NJBIA Notice of Appeal Click here