(TRENTON)-Governor James E. McGreevey signed into law today Senate Bill 845, which authorizes municipalities to lease real estate to not-for-profit corporations or associations.

Under current law, there are restrictions placed on which municipalities and counties are allowed to lease property to non-profits. To lease the land, the law required that municipalities have a population greater than 30,000 and be located in a county with a population greater than 800,000.

"I would like to commend Senators Suliga and Lesniak, as well as Assemblypersons Stender and Green, for sponsoring legislation that will provide New Jersey's non-profit organizations with the opportunity to do their important work right in our communities," said McGreevey.

"It is a fair bill that will allow all municipalities-regardless of size-to lease land to non-profit organizations. In return, non-profits will be able to contribute their services to the municipality."

Senate Bill 845 will allow the municipality to lease municipally owned real estate to any non-profit as long as the property is only used for promoting the health, safety, morals and general welfare of the community. The property cannot be used for commercial business, trade or manufacturing purposes, without costs or a nominal rental.

This legislation was sponsored by Senators Joseph Suliga (D-Middlesex/ Somerset/ Union) and Ray Lesniak (D-Union). The Assembly version, A-1954, was sponsored by Assemblymembers Linda Stender (D-Middlesex/ Somerset/ Union) and Gerald Green (D-Middlesex/ Somerset/ Union). The law will go into effect immediately.