Bulletin Board Magazine 2018 Volume 3

VOLUME 3 | 2018 Bulletin Board The Bui lder Connect ion

New Jersey Budget Deal

Builder Spotlight

Multi-State Tax News

Companies Win Big with FAME

Member Community Outreach

SHORE BUILDERS Association of Central NJ, Inc.

Covering Monmouth, Ocean, Mercer, & Middlesex Counties

XXXXX President’s Report

C ontents 01 President's Report by Michael J. Kokes 03 Our Association Is Strong Because Members LikeYou Belong! by Gina McNamara 05 Welcome New Members 2017 07 Associate Spotlight All County Enterprises 09 Opioid Deaths Plague Construction Industry 12 Governor Murphy and Legislative Houses Reach Budget Deal by Kevin Donovan, Curchin Group 15 Green Field Construction Group Managing Diversified Construction Projects for Developers 19 New Jersey’s Clean Energy Program 23 Multi-State Tax News by Kevin Donovan 26 SBA Membership by Kim Manicone 30 Young Professionals Committee by Chris Cowan 33 Legal/Legislative by Michael J. Gross, Esq. and Steven M. Dalton, Esq. 37 AwardWinning CompaniesWin BigWith FAME by Marge Karahuta, & Stephanie Shaffery 39 Governor Murphy Signs Legislation by Robert S. Goldsmith & Irene Hsieh 43 Shore Builders Association Events Recap 49 Let’s Hear it for the Boys! 55 Member Community Outreach 57 TheValue of an Active Associate Member by Michael Kurpiel VOLUME 3 | 2018

EDITORIAL CONSULTANT Flair Marketing Group - Stephanie Shaffery

DESIGNER Flair Marketing Group

PRESIDENT'S Message by Michael J. Kokes - SBACNJ

OFFICERS President – Michael J. Kokes

First Vice President – Christopher Amato

Vice President of Associates – Kim Manicone

Michael J. Kokes President - SBACNJ

Treasurer – James Pittenger

I believe in the Strength of this Association

Our Young Professionals committee and Professional Women in Building council are very involved in community outreach, which I believe builds and strengthens our association’s standing in the communities we do business in. Having engaged members is part of what makes the association strong, but having members that take their mission beyond our association elevates our strength to a whole different level. Our members continue to bring their community outreach causes to our association, and our membership is always ready, willing, and able to take part in helping further these efforts. From past President Corey Wescoe’s mission to run the NYC Marathon this fall to raise money and awareness for Duchene’s Muscular Dystrophy, to past President Tom Bovino’s son Eric Mason raising money for a few of our favorite charities like Foodstock, MCSPCA, and Big Brothers Big Sisters of Monmouth County, our members are not only generous with their donations, but with their time as well. We also had great community outreach programs with the Collier’s Youth Services Group Home,

to introduce and attract younger generations to our industry. As many of you know, we have a nationwide shortage of skilled trades and workforce in the building industry. It is the mission of NJBA to have the local associations partner with schools and organizations to provide resources and opportunities in the building industry to students in high school and beyond. I believe attracting new and skilled workers is important for the strength and survival of our industry. Once again, our Young Professionals Committee and our Professional Women in Building council have both been at the forefront of this effort, spearheading efforts to make contacts, grow relationships, and provide programs to schools and VOTECs in our area. This issue of Bulletin Board Magazine is dedicated to the strength of our industry. I believe a large part of what makes SBACNJ so successful is our engaged membership and the creative ideas our members have in supporting our association’s goals. I believe if we continue to work together as builders and associates not only will our association continue to strength, we will be able to continue the mission of meeting the needs

Secretary – Dave Eareckson

I would like to start out by congratulating our award winning members who were recently recognized at our Night of Honor event in September. Every year the Awards Committee selects members who exemplify what it means to be an active, engaged member of Shore Builders Association of Central New Jersey. I believe the strength of our association lies in the efforts and dedication of these, and other, members who have worked tirelessly on behalf of our industry. In addition to our annual awards, we also presented the BEAM Award in September. My sincerest congratulations goes out to American Properties on being named this year’s recipient. For those of you that are not familiar with BEAM, it stands for Builders Employing Associate Members. This award is presented each year to a builder member who has used the goods and services offered by associate member companies. As a past recipient of this prestigious award, I can tell you it is an honor to be among the building companies that have previously been awarded the BEAM, and we proudly display ours in the front of our office for everyone to see. I believe the partnership of builder and associate members doing business together is another element of what makes our association strong.

Immediate Past President – Thomas Bovino

SBACNJ STAFF Executive Officer – Gina McNamara

Office Manager – Chris Boyle

The Bulletin Board magazine is published quarterly and is distributed to the membership and others.

eMagazine by member company Flair Marketing Group stephanie@flairmg.com

Unless otherwise noted Photography by member company: All is Sharp Photography Howell, New Jersey Photos can be viewed and ordered online at allissharp.com

68 Continuous years of publication to our members

HOPE Sheds Light, United Way of Monmouth & Ocean County, and the ARC Group Home.

THE BUILDER CONNECTION

Interested in Joining SBACNJ?

of our communities, as we have done as an association for over 70 years.

Another recent initiative that will strengthen the association is an ongoing effort

CLICK HERE As a Builder

CLICK HERE As an Associate

CLICK HERE As a Remodeler

190 Oberlin Avenue North Lakewood, NJ 08701 | P (732) 364-2828 | F (732) 905-2577

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EO Corner

OUR ASSOCIATION IS STRONG Because Members LikeYou Belong! by Gina McNamara, SBACNJ Executive Officer

Bulletin Board Magazine recently sat down with Shore Builders Association’s Executive Officer Gina McNamara, for a special one- on-one interview about how this local home builders association views membership, the mission of the association, and how it’s ripple affect is felt across the state of New Jersey. Q: What is the most important element behind Shore Builders Association’s longevity in the state of New Jersey? A: Industry trade associations are built on the premise that there is strength in numbers. Individuals or companies with similar interests group together and amplify their collective voices to affect change on the issues important to them. With a similar mission to help the building industry Q & thrive every local home builders association across the country helps keep the building industry strong. Q: Does Shore Builders Association’s mission meld with that of other associations in our state? A: While the mission of associations may differ, the common denominator is that an association exists to serve its members. The scope of the association,

Gina McNamara SBACNJ Executive Officer

whether local, state or national will drive its strategic plan to help members in different ways.

Q: What kind of internal support do you have and how do you accomplish SBACNJ’s mission:

A: People are often surprised to learn that SBACNJ only operates with 2 employees and NJBA with only 9. Our efforts are maximized through the volunteer work of our members, consultants and through partnerships we have formed with other likeminded organizations in the State. Q: What is the most important aspect of membership and how does it relate to the strength of SBACNJ? contribute. “What are my benefits?” But in fact, the strongest associations have the most member contribution. I feel lucky to have the support of many of our members who understand the importance of giving not only sponsorship dollars but their time. We are also constantly striving to develop better benefits and programs to assist our membership in their success. A: Most people join associations for what they can get, not for what they can

Continued ›

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WELCOME New Members 2018 We would like to take this opportunity to welcome the following new members and thank their sponsor.

Ronique Joe Puma, Jr.

Ward Wight Sotheby’s Richard Wight

Atlantic Realty Development William Hayes 90 Woodbridge Center Drive Woodbridge, NJ 07095 (732) 750-1111 Green Field Construction Group Russell Lewis 333 W. 39th Street, 11th Floor New York, NY 10018 (646) 862-1190 Sponsor: Stephanie Shaffery Flair Marketing Group Fulton Bank of NJ Ilene Jacobs 2 Ryan Road Marlboro, NJ 07746 (732) 610-0260 Sponsor: Jack Klugman Accurate Builders & Developers

11 Emmons Court Marlboro, NJ 07746 917-748-6226 Sponsor: John Rod John Rod & Co. CertainTeed Gypsum Francesca Vaughn 20 Moores Road, Malvern, PA 19355 610-893-6042 Sponsor: Brad Campbell D&D Disposal Katie Olander PO Box 4618, Toms River, NJ 8754 732-341-6900 Sponsor: Jon Scherer Ferguson Enterprises Sandler Training Scott Bliss PO Box 4052, Brick, NJ 08723 (732) 948-2266 Sponsor: Michael J. Kokes Homestake Capital, LLC Alpha Funding Solutions Pat Szymanski 29 Union Avenue, Lakehurst, NJ 08733 (732) 657-2014 Sponsor: Michael Skea Amboy Bank

206 East Main Street Manasquan, NJ 08736 (732) 223-2266 Sponsor: Michael Skea Amboy Bank Shore Hills Painting Jacqueline Brown 1525 Prospect Street, Suite 6 Lakewood, NJ 08701 (732) 886-0400 Sponsor: Michael J. Kokes Homestake Capital, LLC PF Valente Associates Douglas Valente 1119 State Highway 77 Building 2, Suite A Bridgeton, NJ 08302 (856) 459-2016 Sponsor: Jennifer Boyle Ferguson Enterprises

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A to Z Site Contractors Irving Pearlstein 50 Houston Avenue, Jackson, NJ 08527 732-886-8000 Sponsor: Jack Klugman Accurate Builders By Design Landscapes Brian Hatfield 175 Lehigh Avenue, Lakewood, NJ 08701 732-901-5566 Sponsor: Bob Martin Dolphin Homes Advanced Dimensions Building Group Charlie Looman 43 Abe Vorhees Drive, PO Box 78 Manasquan, NJ 08736 908-413-7165 Sponsor: Dave Fisher K. Hovnanian Companies Deanna’s Interior Designs Deanna Lorenti 233 Roberts Avenue, Horsham, PA 19044 267-918-9182 Sponsor: Giovanna Pergola Metrostudy Flagstar Bank Michele Fiore 125 Half Mile Road, Red Bank, NJ 07701 732-276-1964 Sponsor: Ed Walters Walters Group

Lawson, Riscinio & Schibell Sal Schibell 1806 Route 35, Oakhurst, NJ 07755 732-539-7328 Sponsor: Michael J. Kokes Homestake Capital Michael J. Wright Construction Gregg Capoano 8 Robbins Street, Toms River, NJ 08753 732-281-0222 Sponsor: Jim Franklin American Properties Realty PDR Designs Architecture Paul Rugabar 501 Laurel Avenue, Point Pleasant, NJ 08742 732-703-3799 Sponsor: Walter Hopkin WJH Engineering Pine Belt Chevrolet Igor Sidirov 1088 Route 88, Lakewood, NJ 08701 732-363-2900

Wiring Solutions David Bernstein 10C Timber Drive, Marlboro, NJ 07746 732-886-8500 Sponsor: Jim Franklin American Properties Realty Wishbow Construction John Wishbow 199 Paint Island Spring Road Millstone, NJ 08510 908-770-9148 Sponsor: Dwight Pittenger Pittenger Builders John deRouville 1565 Lakewood Road, Toms River, NJ 08755 732-773-3629 Sponsor: Mike Frankovich Ocean First Bank Patwin Timothy Hannen 300 E. Linen Avenue, Linden, NJ 07036 908-413-5578 Sponsor: Tim Lurie DW Smith Associates HVACR Comfort Pro Joe Navarra

S H O R E B U I L D E R S A s s o c i a t i o n o f C e n t r a l N J , I n c .

EO Corner Continued

Q: How important

Q: What can new members expect from SBACNJ when it comes to benefits?

Q: What would you say is

Sponsor: Jon Scherer Ferguson Enterprises

is member engagement to the association?

the constant in the formula for SBACNJ’s success?

Velux America Brian Skerlanitz 204 Summit Avenue, Gilette, NJ 07933 732-894-7439 Sponsor: Kristin Marzarella All County Enterprises

A: Shore’s goal is to create life long members who perpetually renew and are engaged in making us stronger as an organization. I like to focus on maximizing members who understand the industry and will champion for the organization.

A: Our association provides opportunities for the sharing of ideas, networking, and cultivating important industry initiatives. State and National also provide group buying capabilities of products or services ranging from supplies to insurances.

A: Many things have changed since the development of our association, the one tried and true that hasn’t is that we exist to serve our members. At the end of the day it’s all about strength in numbers.

36 Mount Arrarat Lane Toms River, NJ 08753 848-992-7392 Sponsor: Fred Patterson Robertson Douglas Group

Be sure to save the dates for these important upcoming programs: Click here for Shore Builders Events

S A V E THE DAT E S !

February 28, 2019 FAME Awards South Gate Manor Freehold, NJ

November 13th - 6–8 PM Annual Elections & Networking Oceanfirst Bank, Red Bank

April 3-4, 2019 Atlantic Builders Convention NEWVENUE Harrah’s Hotel & Resort Atlantic City, NJ

December 13th Holiday Cocktail Party & Installation Jumping Brook Country Club, Neptune

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Associate Spotlight

The success of the company and its continuing support of the Shore Builders Association resulted in the company being inducted into its Hall of Fame in 1995 following Ray Sr. being inducted as an individual in 1992. Realizing and appreciating its good fortune to be able to partner with great builders in a region of tremendous growth and development, the company has been all too happy to give back. It supports many charitable organizations on both a national and local level. These include American Cancer Society, Make A Wish, Homes for All, Hands for All, POAC Autism services, Hope Sheds Light and just about any other organization that wishes to enlist its support. The company was also proud to participate in ABC’S Extreme Home Makeover, helping to build a 5,000-square foot home in Irvington for an underprivileged family. A true team effort, requiring almost 60 workers on site for 36 straight hours. In 2009 the company was fortunate to add Ray Marzarella III and Kristin Marzarella to its management group. Kristin has been the driving force in All County once again becoming heavily involved in the Shore Builder Association. These efforts resulted into a 2nd induction into the Hall of Fame in 2018. Ray Sr. would have been very proud today to see his grandchildren following in his footsteps. Kristin’s love and support of the Shore Builders Association and its members are continuously helping the company grow. It is a great example of a company and organization coming full circle.

flair {fler} noun A special or instinctive aptitude or ability for doing something well.

ASSOCIATE SPOTLIGHT All County Enterprises

LOGO DESIGN

CORPORATE BRANDING

I n his 30 years in the construction field prior to 1982 as both a home builder and a project manager, Ray Marzarella Sr. made many valuable connections with builders throughout the area. These connections served him well when, in 1982, Ray Marzarella Sr.

of the largest home builders in the nation. This was the springboard to gradually begin working for most of the major, midsize, and smaller builders throughout the state. No job was too big or too small and the company prided itself on serving both large and small equally.

Throughout the years they have enjoyed their association with the Shore Builders, especially Ray Sr. who was always supporting and participating in its many activities and events. The Shore Builders Association has been a great resource in forming and maintaining new and existing relationships. There are too many to list but they are all equally important.

PRINT COLLATERAL

INSIGHTS Magazine | 2017YearEnd

& Ray Marzarella Jr. decided to start All County Aluminum, later growing into All County Enterprises.

In 1985, Vincent Marzarella joined the company as its 3rd partner and was also

INSIGHTS

DIGITAL MARKETING

instrumental in managing its rapid growth. In 2002, the partners formed All County Exteriors as the retail division of All County Enterprises. This division focuses on both residential and commercial renovation projects from small repairs to entire community renovations.

Initially the company was new construction siding only, but eventually expanded into roofing and gutters. The company’s first prominent customer was US Homes which was not only a distinguished local company but one

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flairmg.com

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XXXXX NAHB Update

OPIOID DEATHS Plague Construction Industry

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assachusetts construction industry workers are six times more likely to die of an opioid overdose than the average worker, according to a recent report from the state's Department of Public Health. The report summarized the findings of a study funded by the U.S. Centers for Disease Control and Prevention. Researchers examined the death certificates of everyone in the state who died of an opioid overdose from 2011 to 2015 with an occupation listed on the certificate. "Construction and extraction" workers had an opioid overdose death rate of 150.6 deaths per 100,000 workers over the study period, with 1,096 deaths recorded, accounting for almost a quarter of all opioid-related deaths among the working population.

The report also highlighted specific jobs within the construction industry listed on death certificates. The highest rates of overdose deaths among construction workers were: Construction laborers (374 deaths representing 34.2% of overdose deaths among construction workers) and carpenters (201 deaths representing 18.4%).

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Budget Deal

Governor Murphy and Legislative Houses REACH BUDGET DEAL by Kevin Donovan, Curchin Group

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n July 1, 2018, Governor Phil Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin announced that their respective branches of New Jersey’s government had reached a compromise agreement for the fiscal year 2019 state budget. The upcoming fiscal year budget will include certain tax increases as part of the budgeted $37.4 Billion in revenues. Highlights of the tax increases include corporate and individual tax increases. Although proposed by the Governor, the sales tax rate remains at its current rate of 6.625 percent. For individual taxpayers earning over $5 Million, the top New Jersey Gross Income Tax rate will be raised from the current 8.97 percent to 10.75 percent. For corporations with taxable income over $1 Million, there will be a 4-year increase in the corporate tax rate as follows: For the first two years, there will be a surcharge of 2.5 percent applied to the current corporate tax rate of 9 percent. The surcharge will phase down over the remaining two years. New Jersey will have one of the highest corporate tax rates in the country. In addition, the Corporation Business Tax will require combined reporting of affiliated corporations and modification to income sourcing rules for state allocation of service revenue to New Jersey.

Effective October 1, 2018, a new surcharge will apply to prearranged rides provided by transportation network companies (the surcharge will be $0.50 or $0.25 for shared rides). A transportation network company e.g., Uber, uses a digital network to connect a transportation network company rider to a transportation network driver to provide a prearranged ride. This law change does not apply to taxi or limousine companies. In addition, certain transient accommodations will be subject to sales and local occupancy taxes. Transient space marketplaces such as Airbnb will be required to collect taxes on behalf of lessors. Transient accommodations do not include hotels or private residential property where keys or other access mechanisms are provided to the lessee at the location of a New Jersey licensed real estate broker. For individual taxpayers, the state deduction for property taxes will be increased from $10,000 to $15,000. Eligible taxpayers who benefit from the Federal Earned Income Tax Credit will receive an increase in the New Jersey earned income percentage from the current law 35 percent of the federal credit. The credit will gradually increase to 40% in 2020.

In addition, certain taxpayers will receive a dependent care credit on their New Jersey individual income tax return. To qualify, New Jersey taxable income must be $60,000 or less. The credit is a percentage of the federal credit. The New Jersey budget agreement will also include a tax amnesty program that will require the Director of the New Jersey Division of Taxation to establish a 90-day amnesty period that shall end no later than January 15, 2019. In general, under the amnesty legislation, taxpayers owing “back taxes” will avoid late payment and late filing penalties and one-half of applicable interest.

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SHORE BUILDERS Association of Central NJ, Inc.

COMMITTEES

Committees are a vital functional of our Association. Make your membership more meaningful by getting involved.

Become an active member of a committee! Committees general meet one hour, once a month

 ASSOCIATE MEMBERS: This committee works for the betterment of all associate members. This committee is responsible for the BEAM (Builders Employing Associate Members) Award as well as the SBACNJ and NJBA Associate of the Quarter nominations.  BY-LAWS, POLICIES, PROCEDURES & ETHICS: This committee has been formed to review and update the SBACNJ bylaws, when necessary, as well as set policy for the betterment of the Association.  GOLF CLASSIC: This committee meets 6 times per year, beginning in February, to plan the SBACNJ Annual Golf Outing. As a committee member it is important to be available the day of the outing to work as an event volunteer.  LEGAL/LEGISLATIVE & ENVIRONMENTAL: This committee interfaces with local and state municipalities to maintain good relations, provide exchange information flow, and oppose adverse government regulations on the building industry in Monmouth, Ocean, Middlesex and Mercer Counties. The committee considers challenging ordinances, practices, and policies of municipalities which are harmful to SBACNJ members.  MEMBERSHIP SERVICES AND PROGRAMS : This committee recruits new members, screen prospective applicants, retains current members as well as conducts new member orientation and special membership drives.  SALES & MARKETING: This committee promotes professionalism in sales and marketing and further educates the members on the latest ideas available to Builder and Associate members. This committee also plans the Annual FAME (Fabulous Achievement in Marketing Excellence) Awards Banquet. The committee keeps industry views before the public and creates a better public image of the Association and the role it plays in the community.  MARTELL’S: This committee promotes professionalism in responsible for setting up and running the Builder Dune Buggy Race the evening of Martell’s BBQ on the beach. As a committee member it is important to be available the day of the event.  YOUNG PROFESSIONALS: This committee promotes participation and increases opportunities for young professionals in the building industry by developing interesting programs that provide a forum for networking, continuing education, professional growth, development of leadership skills and access to a professional community.  PROFESSIONAL WOMEN IN BUILDING COUNCIL: This council is recognized and chartered by NAHB and is dedicated to promoting, enhancing, and supporting home building and women in the home building industry. This council is open to all member companies and their employees. There is a fee of $50 per member to join the council and is open to men as well. If you are interested in joining one of the committees or being a member of the Professional Women in Building Council, please contact the SBACNJ Office in Lakewood at 732-364-2828.

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Builder Member Spotlight

GREEN FIELD CONSTRUCTION GROUP Managing Diversified Construction Projects for Developers

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Account Executive, Senior Project Manager, Site Superintendent, Assistant Project Manager, Project Accountant, and on site laborers. Each position will fulfill certain roles and tracking services to manage the overall project through completion. Green Field Construction has had the privilege of adding many high profile projects to their portfolio in the past, including the commercial project Bell Works in Holmdel, New Jersey and the Dream, Chatwal, and Grace hotel renovations in New York City. In the last stages of construction is the Henley on Hudson multi-family project in Weehawken, New Jersey by Lennar Corporation. As the company

Bulletin Board | 16 | www.shorebuilders.org Many large scale real estate developers, investors, and builders choose Green Field Construction Group to manage the projects they trust to no one else. continues to grow, it has added several new projects to its portfolio over the past year. Pier Village Lofts in Long Branch, New Jersey for Extell Development, as well as Hunters Point Shipyard Block 48 in San Francisco, California are two of its newest projects. Pier Village Lofts includes 244 residences with upscale amenities and is currently under construction. The San Francisco project will consist of 404 residential units in 17 buildings and ground breaking is expected to take place this fall.

If your company has a new or existing project you would like to review with the Green Field Construction team, please contact us or visit our website.

reen Field Construction Group is a construction management firm with vast experience in managing a variety of high profile projects in the residential, hospitality, and commercial industries for some of the most distinguished builders and development companies in the industry. Providing turn-key project management for all phases of a project from site acquisition through completion, the company is led by C.E.O and Founder, Michael Tennyson. During his professional career, Mr. Tennyson has led numerous large-scale, high profile projects in major cities across the globe,

including New York, London, and Dublin. As C.E.O. of Green Field Construction Group, Mr. Tennyson’s unfaltering leadership has been the existential key to the company’s wide spread success. Green Field Construction offers a full array of project services, from pre-construction to construction to close out. With pre- construction services such as plan review, bid packages, trade requisitions, budgeting, and value engineering, to name a few, the company provides the necessary up-front planning to ensure each project is completed to exceed all expectations. In addition, the

company’s area of expertise includes the assembly of a project management team dedicated to expertly handling the scheduling, trade coordination, and site management, providing an all-inclusive approach to each project. Construction services include project schedule control and coordination of all trades, site safety management, document control, weekly meetings, accounting, and requisitions. Green Field Construction will devise a handpicked team to service the project goals and needs. This team will incorporate an

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YOU BUILD. WE’LL TAKE CARE OF THE REST.

Our team of seasoned professionals offers a “one stop shop” of expertise allowing you more time to do what you do best—build. LET’S GET STARTED.

/ Civil Engineers / Land Surveyors

/ Planners / Architects

/ Landscape Architects / Reserve Specialists

NEARLY 30 YEARS

FWHassociates.com 1856 Route 9 | Toms River, NJ 08755 | 732.797.3100 100 N Krome Ave. | Florida City, FL 33034 | 305.307.5343

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New Jersey’s Clean Energy Program

New Jersey’s CLEAN ENERGY PROGRAM

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ew Jersey’s Clean Energy Program™ (NJCEP) has provided hundreds of millions of dollars to businesses and homeowners to implement energy efficient measures. These rebates are available to every energy consumer that pays into the societal benefits charge, a surcharge collected by New Jersey’s investor owned utilities. 70,000 rebates for building energy-efficient homes and multifamily apartments since 2001. Residences built under the program are not only constructed to save energy and its related costs, but also provide a more comfortable and healthier lifestyle for their occupants. RNC pairs builders and contractors with a program rater, who help guide participants through the program process, including filling out paperwork, carrying out inspections and offering continuous assistance throughout the project. The RNC Program has made some changes in the rebate structure, starting on August 1,2018, for Fiscal Year 2019 (July 1, 2018 – June 30, 2019). A base incentive is provided for each type of home and level of participation in RNC, plus a program incentive based on incremental MMBtu (million Btu) energy savings above a reference home meeting the 2015 International Energy Conservation Code (IECC), currently NJ’s Energy Code. NJCEP’s Residential New Construction (RNC) Program has given builders and developers over

The first level of rebates is for ENERGY STAR® Homes, offering a $1,000 base rebate and $30 per MMBtu (measure of energy content in fuel) saved for single family homes. ENERGY STAR Homes, whether single- family, multi-single or multifamily, are the most common projects in the program and have significant energy savings and comfort impacts for thousands of homeowners across the state. The most progressive homes incentivized in Residential New Construction are the Zero Energy Ready Home and Zero Energy Ready Home with 100% renewables. Rebates for qualifying single-family homes range from $4,000 plus $30/MMBtu to $6,000 plus $30/ MMBtu. Zero Energy Ready Homes promote innovation in building design, materials, techniques and operations. These homes are designed to save energy, money and create a comfortable and safe environment for its occupants. Zero Energy Ready Homes typically have a more comfortable air temperature, better indoor air quality and less sound pollution than an average dwelling. New Jersey Clean Energy Program’s Residential New Construction Program is designed to create comfortable energy-efficient homes throughout the state. Rebates are available for those who are looking to build above and beyond with an ENERGY STAR or Zero Energy Ready Home.

If you are interested in participating in the program or have any questions, please email us at NJRNCinfo@NJCleanEnergy.com or call 866-NJSMART.

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You need attorneys with in-depth knowledge and experience with the complex issues facing the building industry.

You need attorneys who provide high quality legal services.

You want attorneys who listen to you.

You want attorneys who understand your work and the challenges you face.

Environmental, Real Estate, Land Use and Planned Real Estate Development practices please contact: Michael J. Gross, Esq. John A. Giunco, Esq. Michael A. Bruno, Esq. J. Scott Anderson, Esq. Marc D. Policastro, Esq. Paul H. Schneider, Esq. Steven M. Dalton, Esq. Laurence I. Rothstein, Esq.

You want attorneys who are responsive and attentive.

You want attorneys who frequently work with governmental regulatory agencies on applications and approvals and anticipate future legislation that could a ect your projects.

You want attorneys who take that extra step to ensure that you are satis ed.

Michael J. Vitiello, Esq. Tara Phelan Carver, Esq. Timothy J. DeHaut, Esq. Steven P. Gouin, Esq. Todd D. Greene, Esq. C. Justin McCarthy, Esq. John A. Sarto, Esq. Louis J. Seminski, Esq. A yfa H. Ellington, Esq.

You want attorneys who provide exceptional value for the fees you pay.

(732) 741 -3900 info@ghclaw.com

www.ghclaw.com www.njenvironmentlaw.com

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Multi-State Tax News

Multi-State Tax NEWS U.S. Supreme Court Overrules Longstanding Sales Tax Nexus Requirements in its Recent South Dakota v.Wayfair, Inc. Decision by Kevin Donovan Curchin Group

Kevin Donovan Curchin Group

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n June 21, 2018, in a highly anticipated U.S. Supreme Court decision, the court overturned longstanding multi-state nexus rules requiring what is referred to as a “physical presence” test be met in a state before a state could require an out of state business to collect and remit sales tax. Two key Supreme Court cases, Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois have provided the fundamental judicial doctrine for decades having required an out of state business to have a “physical presence”, e.g. a place of business, employees, or other business property in a state, before such state could impose its sales and use tax requirements on the out of state business. In the modern economy, internet sales are frequently and typically made into states where the company does not have any physical presence while enjoying significant sales volume. State tax administrators and legislators view the e-commerce or “click through” economy as costing millions of dollars in lost sales tax revenue.

As states work to increase their tax revenues to meet increasingly higher spending budgets, they have become increasingly aggressive in challenging the old physical presence standards. For example, states such as California have imposed taxes based on sales volume in their state even if no physical presence is established. States have attempted to impose sales tax collection requirements on out of state businesses through “affiliate nexus” or “amazon rules” for e-commerce companies. For example, a New Jersey business with an affiliate company located in California could be subject to California sales tax due to certain sales solicitation activities on behalf of the New Jersey business by its California affiliate. South Dakota imposed a sales tax requirement based on a minimum sales volume ($100,000 of goods or services delivered into the state or engaging in 200 or more sales transactions). Thus, an out of state business would be responsible for sales tax collection even though it has no employees or property in the state if the sales volume requirements are met. The South Dakota sales tax statute was the focus of the Supreme Court case.

The U.S. Supreme Court upheld the South Dakota sales tax statute in its recent decision, effectively overruling the longstanding prior court doctrine requiring physical presence. Thus, taxpayers who sell tangible property over the internet or who otherwise have no physical presence in the state need to carefully consider their multi-state tax requirements and discuss these multi-state issues with their tax advisors. In New Jersey, both houses of the state legislature have introduced similar sales tax bills that are similar to the South Dakota statutes. Numerous states are likely to introduce similar sales tax law changes. The impact of the Supreme Court Decision in overruling the longstanding prior case law will create increased complexity in administering a company’s state tax responsibilities as well as the necessity of avoiding unexpected adverse tax consequences resulting from sales into other states. The tax advisors at the Curchin Group are well versed with the increasingly complex maze of multi-state tax requirements and are available to advise you and your business.

If you have questions or need to discuss your multi-state tax responsibilities, please call us at (732) 747-0500.

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SBA Membership

XXXX Article by XXXX

SBA Membership by Kim Manicone, Vice President of Associates, Membership & Associates Committee Chair

Kim Manicone USI Insurance Services

T

and beyond in the past year to demonstrate their commitment and dedication to our association. On September 12th we presented these distinguished members with the following Frank Swol, EAM Associates Jack Meyer Memorial Rookie of theYear Tom Bovino, Jackson Development Company, LLC - Cornerstone Award

industry awards during our Night of Honor, held at the Jumping Brook Country Club in Neptune. Congratulations to these individuals for their service to our association.

he New Jersey Builders Association Board of Directors passed a resolution declaring this September as Associate Appreciation Month. While we appreciate our Associate members all year long, this month in particular we are celebrating the contributions and recognizing the importance of our Associate members to our industry! As the Vice President of Associates and Membership & Associates Committee Chair for Shore Builders Association of Central New Jersey, it is my honor to official thank all of our associate members for everything they do for our association. Just in case you aren’t familiar with an “Associate Member”, the term refers to members who are trade contractors, professional service providers, and consultants that are not builders, but who specialize in the new home building industry. These members provide valuable products and services, and help keep our association running. Through their support of programs, events, sponsorships, committee involvement, and community service our association remains strong and viable. Now in its 33rd year, the Shore Builders Association of Central New Jersey will be showing gratitude to the innovative associates members who have gone above

James Pittenger, Pittenger Builders Remodeler of theYear

Vito Cardinale, Cardinale Enterprises Builder of theYear

Chris Cowan, CohnReznick Associate of theYear Adam Lepore, Citizens Bank Associate Continuous Service All County Enterprises Associate Hall of Fame, Company Marge Karahuta Exit 98 George Realty Associate Hall of Fame, Individual

CoreyWescoe, Pulte Group Builder Continuous Service John Cummins K. Hovnanian Companies Builder Hall of Fame

Arvo Prima, Pr-1-ma Corporation Community Service Award

American Properties - BEAM Award

In addition, we were honored to present the annual BEAM Award to American Properties. The BEAM (Builders Employing Associate Members) Award is one of the most prestigious awards for a builder member. Established by our Associate Members Committee, this award was designed to encourage builder members to use the goods and services offered by member companies and to annually recognize the one builder who exemplifies this vitally important teamwork. Join us in congratulating all of our award recipients!

The Annual Awards program is designed to celebrate associate member contributions to the Shore Builders local. They help increase the visibility of the successful associate members and demonstrate that participation is an investment. All associate members are eligible for the awards with nominees and winners selected by our awards committee members. We encourage all members to be active in the association, as your participation is what helps our local association, and our industry thrive.

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Your Power to Save April 2018

866-NJSMART

STAY CONNECTED!

CustomHomeby ManciniCustomHomes

KitchenDesign& Installationby WoodhavenKitchen&DesignCenter Designer:MelodyAnnWells

Stairs & Railings

Join the thousands of New Jersey homeowners, businesses and municipalities that have taken advantage of incentives offered by New Jersey's Clean Energy Program™ . These programs provide opportunities for you to save energy, money and help protect our climate and shoreline.

Check out the latest list of rebates and promotions .

David & Alan Robinson, Owners

BUILD BETTER WITH WOODHAVEN.

TESTIMONIAL: ONE ON ONE WITH DAN With the frigid temperatures last month, did you notice some rooms in your house were colder than others? Dan's home had a very noticeable difference in temperature on certain levels - the second floor was much colder in the winter and much hotter in the summer than the first floor. Dan knew he probably needed more insulation and likely some air sealing for his 50-year-old home, and decided that a home energy audit was the best place to start.

Woodhaven understands a builder’s reputation needs to be as strong as oak. You can count on us for a comprehensive selection of building supplies at competitive prices, along with the friendly, knowledgeable, go-the-extra-mile service that only a family-run business can provide. Since 1977, we’ve been building long-lasting relationships with our customers. We take pride in providing builders and contractors with a wide-range of products and services; from the finest lumber and millwork to windows, doors, cabinetry, and more. A home is likely the biggest investment a homeowner will ever make. We take that investment seriously, and work hard to ensure everyone has a better building experience.

Decking & Railing Doors Drywall & Insulation Flooring

Hardware & Tools Kitchen & Bath Lumber & Plywood Millwork & Moulding

Siding Stairs & Railing Trusses & Wall Panels Windows & Patio Doors

Dan says "The Home Performance with ENERGY STAR® Program is nothing short of amazing. To be able to upgrade my home to be more comfortable and energy efficient while receiving a $3,000 financial incentive from the State of New Jersey is a win-win for everyone involved. I don't know why everyone isn't taking advantage of this program!". Read more about this project . Call us at 866-NJSMART (866-657-6278) or visit www.NJCleanEnergy.com for information on these and other energy-saving programs for your home or business. New Jersey's Clean Energy Program 44 South Clinton Avenue | PO Box 350 | Trenton, NJ 08625

Lakewood 200 James Street 732-901-5518

Manahawkin 725 E. Bay Avenue 609-597-1118

Point Pleasant Beach 1303 Richmond Avenue 732-295-8800

Shrewsbury* 845 Broad Street 732-933-0313

*Kitchen & Design Center & Showroom only

WoodhavenLumber.com

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Young Professionals Committee Young Professionals Committee by Chris Cowan, CohnReznick | Young Professionals Chair

PRIDE! I gush with pride when I think about all of the meaningful work in the community our Young Professionals participate in, both through Shore Builders Association and outside of our association. Our Young Professionals are setting amazing examples of philanthropy for the current and future generations to follow. So, you might be wondering what are some of the things that motivate our committee members to participate in community outreach. Being actively involved in any organization you join provides an opportunity to get back so much more than you put in. Here are some of our reasons for giving back: Young professionals develop confidence, leadership, cooperation, organization, and communication skills through active involvement in the community and our association. Young professionals highly value their development and personal branding. Being actively involved in the community and / or association is a valuable tool for personal branding, as it provides the individual an opportunity to increase and showcase their skill set to their colleagues and potential customers. Young professionals tend to value personal and professional relationships by blending their professional contacts with their social life. There is a collaboration among different industries, disciplines, and personalities to accomplish shared goals. Not to mention creating lifelong friendships. Professional Development Networking

Education

• Kelly Fliller – Caregiver Volunteers of Central NJ, Ocean County Military Support, United Way, Women United, Casey Coyle Foundation, Ocean County College, Toms River Community Art Project

Young professionals have a desire to make a difference and will learn the value of giving back to the community and the association and how their efforts directly impact their respective constituents. In collaborating with peers, Young Professionals can gain invaluable insight and knowledge from the “legends” of the industry. Not only is it admirable to support our community and association, it is essential to the strength of our industry. The various organizations and associations that we support actually contribute to the future sustainability of our community and industry. Being an active, engaged member provides the building blocks of longevity for your company, as well as the association. I would like to take this opportunity to give kudos to some of our SBACNJ Young Professional members who have been recognized for community / association involvement. • Danielle Bagzinski – LLS, Girl Scouts, Monmouth Chamber of Commerce, United Way, MODC Community / Association Support

• Georgette Kyriacou – LLS, Jar of Hope

Congratulations to the four of our YP members who were named on the prestigious NJBIZ “Forty under 40” List:

Earle Residential / Commercial Proudly supports Shore Builders Association 2016

• Wanessa Vaccaro

• Michael J. Kokes

• Chris Cowan

• Rob Fallone

And for some committee updates, I would also like to thank everyone that came out for our BPAC Fundraiser at the Silverball Museum in August. We had a fun night of gaming, networking, and raising money to support legal and legislative initiatives for NJBA. This fall our OCVTS subcommittee will be meeting with OCVTS to develop our mentoring program, which will work toward the statewide goal of introducing the next generation to the opportunities the building industry presents. And, as always, we will be planning another Young Professionals Happy Hour this fall, so stay tuned for details.

• Rich Robinson – NAHB Young Professional Chair

• Kristin Marzarella – Make-A-Wish, American Cancer Society, POAC

• Corey Wescoe – Jar of Hope

If you are a Young Professional, new to our association, or someone that is interested in working with us and our community organization partners, feel free to join the Young Professionals Committee at our next meeting. Just give a call to the office at 732-364-2828 to find out the details.

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Resolving Complexity Engineering Progress

Land Development Services Civil Engineering Surveying & Mapping Professional Planning for Land Development Marine & Waterfront Engineering Geotechnical Engineering Landscape Architecture

Matrix New World Land Development Services are recognized leaders in engineering, surveying, and landscape architecture consulting services. The combined strengths of our licensed and certified professionals enables us to serve a wide variety of clients in the private sector, as well as all levels of government, public authorities, and non-profit organizations in the United States. Our engineers, planners, LEED professionals, licensed surveyors, and landscape architects stand ready to assist our clients and address their needs. We demonstrate our understanding of their vision by emphasizing the importance of client satisfaction, and recognizing the value of client relationships.

Matrix New World Engineering Certified WBE / DBE / SBE 442 State Route 35, 2nd Floor Eatontown, NJ 07724 732.588.2999 matrixneworld.com

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Legal/Legislative

of law under the PEA were extended for an additional 3 years until December 31, 2018 based on the State Planning Commission action. That action ensured continued validity and effect of "CAFRA centers" under DEP's Coastal Rules, as CAFRA centers are based upon State Planning Commission designated centers. In the absence of further State Planning Commission regulatory action, Plan Endorsement will expire January 1, 2019 for municipalities whose Plans remain valid by the prior regulatory extension of the Commission unless municipalities take action to extend or update their endorsed Plan by December 31, 2018. The expiration of such Plans will result in a corresponding loss of CAFRA center status where applicable. Those with parcels in existing CAFRA centers are urged to confirm the State Plan Endorsement status for the subject municipality. NJDEP UST/SITE REMEDIATION RULES DEP took action on August 6, 2018 to implement new and amended rules applicable to remediation. DEP adopted new, and long awaited, rules governing remediation of Heating Oil Tanks Systems (HOTS) applicable in the context of residential heating oil tanks and unregulated non-residential heating oil tanks (2,000 gallons or less). These new HOTS rules will provide clarify and facilitate remediation of residential and unregulated tanks. Among other things, the rules establish the concept of a HOTS Deed Notice that may be utilized as a remedial option to allow residual soil contamination above applicable remediation standards to remain in place at residential properties. DEP also simultaneously adopted amendments to its AARCS and Technical Requirements for Site Remediation Rules. These amendments were the subject of significant comment by interested parties including NJBA. Unfortunately, DEP ignored concerns expressed by many industry groups regarding

rules that restrict the use of alternative fill at redevelopment sites. Use of alternative fill at such sites should be encouraged for myriad reasons, including the cost effectiveness of remediation and redevelopment without any loss of protection. The "benefit" of the requirement to utilize clean fill at a site already being remediated with an engineering control seems questionable at best. The amended rules (N.J.A.C. 7:26E-5.2) impose restrictions on use of alternative fill from on-site and off- site sources. For off-site alternative fill, prior written approval from DEP is required for use of alternative fill when the amount of fill will exceed pre-remediation topography and elevation of a site. For sites that require elevation for flood hazard or other reasons, this requirement will likely prove burdensome and add time, uncertainty and cost to the development process. In the AARCS rules, DEP also amended the definition of a "person" for purposes of enforcement to include "responsible corporate officials". While the legal basis for DEP's action is debatable and likely to be subject of much discussion, DEP also removed and did not adopt an originally proposed amendment that would have made such "persons" certify as part of submissions made to DEP that they had the authority to prevent and correct violations of law and the applicable regulations (essentially, that they were personally liable for violations). By removing this language from rule amendment and the proposed certification requirements, DEP will be left to its factual proofs if it seeks to impose personal liability on individual corporate officers. COURT UPHOLDS DEP ROAD BLOCK TO REMEDIATION FUNDING

Discharge Site Remediation Fund ("HDSRF"). The County's application was filed for the purpose of reimbursing a portion of the property owner's remediation cost under a contractual agreement whereby the property owner, who was previously designated as a redeveloper of the property, agreed to de- designate the property as a redevelopment site and convey it as open space to the County apparently for recreational purposes. Instead of working with the parties, including the governmental entity, to facilitate access to funding for this beneficial purpose, DEP, as is often the case with respect to HDSRF funds, put up obstacles to prevent access to the funding. The court acquiesced in DEP's decision. The court found that funding was not available because the property owner, and not the County, performed the remediation and there was no evidence of a contractual agreement to confirm the owner was performing the remediation as a designated agent or on behalf of the County rather than on the owner's own behalf. Additionally, conservation and recreation grant funding was not available under DEP's rules because the property was not identified in a comprehensive County preservation plan. This case exemplifies the reality of HDSRF funding. DEP is reluctant to approve access to funding and often puts up road blocks to funding access particularly where DEP identifies the existence of available private party funding. DEP EXPANDS OPTIONS FOR GROUNDWATER REMEDIATION Groundwater remediation typically introduces the greatest level of remediation risk, from a cost and time perspective, in the development and redevelopment context. Recent guidance released by DEP should help to minimize some of that risk. One of the most troublesome types of contaminants for purposes of remediation in Continued ›

Legal/ Legislative by Michael J. Gross, Esq. and Steven M. Dalton, Esq. Mr. Gross is a Partner & Chair, Mr. Dalton is a Partner,

SEWER/WATER CONNECTION FEES

area boundaries, as required under the Coastal Rules, was published August 6, 2018 and became operative September 5, 2018. These Center and Planning Area boundaries are now in effect for purposes of determining impervious cover and vegetative cover limits for Toms River sites that require CAFRA approval. Under DEP's Coastal Rules and the Permit Extension Act, the Toms River mainland coastal center expired late-2016. The expiration of mainland coastal centers significantly reduced the amount of allowable impervious cover available for development of sites in mainland coastal centers such as Toms River that are subject to CAFRA permitting from 80% to 3-30% depending upon the planning area designation of a parcel. With the recent regulatory action taken by DEP, sites in the Regional Center and six Core areas that require CAFRA approval qualify for 80% impervious cover. This positive development regarding Toms River is a reminder that other currently existing CAFRA centers may soon expire. The State Planning Commission adopted amended regulations effective August 21, 2015 to extend the period of approval of Plan Endorsements and center designations for three years beyond their otherwise applicable expiration date. That action was taken to prevent the loss of older endorsed plans that remained valid by operation of the Permit Extension Act ("PEA"), and would have expired with the sun setting of the PEA. As a result, designated centers that remained effective only by operation

Michael J. Gross

Legislation providing sewer and water connection fee credits (P.L. 2018, c.74; S1247/ A2779) was signed into law August 10, 2018. The law represents a successful multi-year effort pursued by NJBA along with the Association of Environmental Authorities. Under the law, existing sewer connections qualify for credits and the 50% connection fee credit on affordable units has been expanded to all developers, not just non-profits. The law addresses the inequity redevelopers often confront relating to parcels where fees were paid for prior connections and the redevelopment places no additional demand on water supply or sewer treatment systems. Given that existing law often requires payment of water and/or sewer connection fees, the new legislation helps level the playing field through credits where existing connections are in place. By treating all developers equally, the law also appropriately places emphasis on the provision of affordable housing, and not the type of corporate entity providing such housing. CAFRA CENTERS: TOMS RIVER AND OTHERS The long awaited Toms River coastal/CAFRA center designation process is complete. DEP took action to accept the State Planning Commission's changed planning area boundaries for Toms River, including its Regional Center and Core Community Development Boundaries in the coastal area. Notice of DEP's acceptance of the planning

Steve Dalton

I/M/O Hazardous Discharge Site Remediation Fund

In an unpublished decision (A-4439-15T2), the Appellate Division affirmed DEP's denial of an application filed by the County of Middlesex for funding from the Hazardous

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Bulletin Board | 34 | www.shorebuilders.org