Provides tax credit to developers for affordable housing projects in certain neighborhoods.

A4266

ASSEMBLY, No. 4266

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

SYNOPSIS

���� Provides tax credit to developers for affordable
housing projects in certain neighborhoods.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning tax credit for affordable housing
projects located in certain neighborhoods, and amending and supplementing
P.L.2009, c.90.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.2009,
c.90 (C.52:27D-489c) is amended to read as follows:

���� 3.��� As used in sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.)
and section 4 of P.L.���
, c��� (C.������� ) (pending before the Legislature as this bill)
:

���� "Applicant" means a
developer proposing to enter into a redevelopment incentive grant agreement.

���� "Ancillary infrastructure
project" means structures or improvements that are located within the
incentive area but outside the project area of a redevelopment project,
including, but not limited to, docks, bulkheads, parking garages, public electric
vehicle charging stations, freight rail spurs, roadway overpasses, and train
station platforms, provided a developer or municipal redeveloper has
demonstrated that the redevelopment project would not be economically viable or
promote the use of public transportation without such improvements, as approved
by the State Treasurer.

���� "Authority" means
the New Jersey Economic Development Authority established under section 4 of
P.L.1974, c.80 (C.34:1B-4).

���� "Aviation district"
means all areas within the boundaries of the "Atlantic City International
Airport," established pursuant to section 24 of P.L.1991, c.252
(C.27:25A-24), and the Federal Aviation Administration William J. Hughes Technical
Center and the area within a one-mile radius of the outermost boundary of the
"Atlantic City International Airport" and the Federal Aviation
Administration William J. Hughes Technical Center.

���� "Deep poverty
pocket" means a population census tract having a poverty level of 20
percent or more, and which is located within the incentive area and has been
determined by the authority to be an area appropriate for development and in
need of economic development incentive assistance.

���� "Developer" means
any person who enters or proposes to enter into a redevelopment incentive grant
agreement pursuant to the provisions of section 9 of P.L.2009, c.90
(C.52:27D-489i), or its successors or assignees, including but not limited to a
lender that completes a redevelopment project, operates a redevelopment
project, or completes and operates a redevelopment project.� A developer also
may be a municipal redeveloper as defined herein or Rutgers, the State
University of New Jersey.

���� "Director" means the
Director of the Division of Taxation in the Department of the Treasury.

���� "Disaster recovery
project" means a redevelopment project located on property that has been
wholly or substantially damaged or destroyed as a result of a
federally-declared disaster, and which is located within the incentive area and
has been determined by the authority to be in an area appropriate for
development and in need of economic development incentive assistance.

���� "Distressed
municipality" means a municipality that is qualified to receive assistance
under P.L.1978, c.14 (C.52:27D-178 et seq.), a municipality under the
supervision of the Local Finance Board pursuant to the provisions of the
"Local Government Supervision Act (1947)," P.L.1947, c.151
(C.52:27BB-1 et seq.), a municipality identified by the Director of the
Division of Local Government Services in the Department of Community Affairs to
be facing serious fiscal distress, a SDA municipality, or a municipality in
which a major rail station is located.

����
�Distressed neighborhood�
means a census tract, located within a distressed municipality, in which the
median family income does not exceed 80 percent of the Statewide or applicable
metropolitan median family income, as reported in the most recently completed
decennial census published by the United States Census Bureau.

���� "Electric vehicle
charging station" means an electric component assembly or cluster of
component assemblies designed specifically to charge batteries within electric
vehicles by permitting the transfer of electric energy to a battery or other storage
device in an electric vehicle.

���� "Eligibility period"
means the period of time specified in a redevelopment incentive grant agreement
for the payment of reimbursements to a developer, which period shall not exceed
20 years, with the term to be determined solely at the discretion of the
applicant.

���� "Eligible revenue"
means the property tax increment and any other incremental revenues set forth
in section 11 of P.L.2009, c.90 (C.52:27D-489k), except in the case of a Garden
State Growth Zone, in which the property tax increment and any other
incremental revenues are calculated as those incremental revenues that would
have existed notwithstanding the provisions of the "New Jersey Economic
Opportunity Act of 2013," P.L.2013, c.161 (C.52:27D-489p et al.).

���� "Garden State Growth
Zone" or "growth zone" means the four New Jersey cities with the
lowest median family income based on the 2009 American Community Survey from
the US Census, (Table 708.� Household, Family, and Per Capita Income and
Individuals, and Families Below Poverty Level by City: 2009); a municipality
which contains a Tourism District as established pursuant to section 5 of
P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment
Development Authority; or an aviation district.

���� "Highlands development
credit receiving area or redevelopment area" means an area located within
an incentive area and designated by the Highlands Council for the receipt of
Highlands Development Credits under the Highlands Transfer Development Rights
Program authorized under section 13 of P.L.2004, c.120 (C.13:20-13).

���� "Incentive grant"
means reimbursement of all or a portion of the project financing gap of a
redevelopment project through the State or a local Economic Redevelopment and
Growth Grant program pursuant to section 4 or section 5 of P.L.2009, c.90 (C.52:27D-489d
or C.52:27D-489e)
, or an award of tax credit pursuant to section 4 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
.

���� "Infrastructure
improvements in the public right-of-way" mean public structures or
improvements, including public electric vehicle charging stations, located in
the public right-of-way that are located within a project area or that
constitute an ancillary infrastructure project, either of which are dedicated
to or owned by a governmental body or agency upon completion, or any required
payment in lieu of the structures, improvements or projects, or any costs of
remediation associated with the structures, improvements or projects, and that
are determined by the authority, in consultation with applicable State
agencies, to be consistent with and in furtherance of State public
infrastructure objectives and initiatives.

���� "Low-income housing"
means housing affordable according to federal Department of Housing and Urban
Development or other recognized standards for home ownership and rental costs
and occupied or reserved for occupancy by households with a gross household
income equal to 50 percent or less of the median gross household income for
households of the same size within the housing region in which the housing is
located.

���� "Major rail station"
means a railroad station located within a qualified incentive area which
provides access to the public to a minimum of six rail passenger service lines
operated by the New Jersey Transit Corporation.

���� "Mixed-use parking
project" means a redevelopment project, the parking component of which
shall constitute 51 percent or more of any of the following:

���� a.���� the total square
footage of the entire mixed-use parking project;

���� b.��� the estimated revenues
of the entire mixed-use parking project; or

���� c.���� the total construction
cost of the entire mixed-use parking project.

���� "Moderate-income
housing" means housing affordable, according to United States Department
of Housing and Urban Development or other recognized standards for home
ownership and rental costs, and occupied or reserved for occupancy by
households with a gross household income equal to more than 50 percent but less
than 80 percent of the median gross household income for households of the same
size within the housing region in which the housing is located.

���� "Municipal
redeveloper" means an applicant for a redevelopment incentive grant
agreement, which applicant is:

���� a.���� a municipal government,
a municipal parking authority, or a redevelopment agency acting on behalf of a
municipal government as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3);
or

���� b.��� a developer of a
mixed-use parking project, provided that the parking component of the mixed-use
parking project is operated and maintained by a municipal parking authority for
the term of any financial assistance granted pursuant to P.L.2015, c.69.

���� "Municipal Revitalization
Index" means the 2007 index by the Office of Planning Advocacy within the
Department of State measuring or ranking municipal distress.

���� "Non-parking
component" means that portion of a mixed-use parking project not used for
parking, together with the portion of the costs of the mixed-use parking
project, including but not limited to the footings, foundations, site work,
infrastructure, and soft costs that are allocable to the non-parking use.

���� "Parking component"
means that portion of a mixed-use parking project used for parking, together
with the portion of the costs of the mixed-use parking project, including but
not limited to the footings, foundations, site work, infrastructure, and soft
costs that are allocable to the parking use.� The parking component, which may
include enclosed pedestrian walkways or a skybridge, may be in the same
structure as all the non-parking components or may be in a structure with some
non-parking components with the remaining non-parking components in an adjacent
or nearby structure that is no more than one third of a mile from the parking
components.

���� "Project area" means
land or lands located within the incentive area under common ownership or
control including through a redevelopment agreement with a municipality, or as
otherwise established by a municipality or a redevelopment agreement executed
by a State entity to implement a redevelopment project.

���� "Project cost" means
the costs incurred in connection with the redevelopment project by the
developer until the issuance of a permanent certificate of occupancy, or until
such other time specified by the authority, for a specific investment or improvement,
including the costs relating to: receiving Highlands Development Credits under
the Highlands Transfer Development Rights Program authorized pursuant to
section 13 of P.L.2004, c.120 (C.13:20-13), lands, buildings, improvements,
real or personal property, or any interest therein, including leases discounted
to present value, including lands under water, riparian rights, space rights
and air rights acquired, owned, developed or redeveloped, constructed,
reconstructed, rehabilitated or improved, and any environmental remediation
costs, capitalized interest paid to third parties, which for purposes of this
definition shall be deemed to be costs directly related to construction, the
funding of a debt service reserve fund, the cost of infrastructure improvements,
including ancillary infrastructure projects, and an amount not to exceed 20
percent of the total project cost for costs not directly related to
construction, and, for projects located in a Garden State Growth Zone only, the
cost of infrastructure improvements, including any ancillary infrastructure
project and the amount by which total project cost exceeds the cost of an
alternative location for the redevelopment project, but excluding any
particular costs for which the project has received federal, State, or local
funding.� In the case of a mixed-use parking project that is undertaken by a
municipal redeveloper and that did not commence construction before the
declaration of the COVID-19 public health emergency on March 9, 2020, project
costs may include, in the discretion of the chief executive officer of the
authority consistent with applicable law, the cost or value of land,
demolition, and equity contributions, as well as any particular costs for which
the project has received State or local funding.

���� "Project financing
gap" means:

���� a.���� the part of the total
project cost, including return on investment, that remains to be financed after
all other sources of capital have been accounted for, including, but not
limited to, developer-contributed capital, which shall not be less than 20 percent
of the total project cost, which may include the value of any existing land and
improvements in the project area owned or controlled by the developer, and the
cost of infrastructure improvements in the public right-of-way, subject to
review by the State Treasurer, and investor or financial entity capital or
loans for which the developer, after making all good faith efforts to raise
additional capital, certifies that additional capital cannot be raised from
other sources on a non-recourse basis; and

���� b.��� the amount by which
total project cost exceeds the cost of an alternative location for the
out-of-State redevelopment project.

���� "Project revenue"
means all rents, fees, sales, and payments generated by a project, less taxes
or other government payments.

���� "Property tax
increment" means the amount obtained by:

���� a.���� multiplying the general
tax rate levied each year by the taxable value of all the property assessed
within a project area in the same year, excluding any special assessments; and

���� b.��� multiplying that product
by a fraction having a numerator equal to the taxable value of all the property
assessed within the project area, minus the property tax increment base, and
having a denominator equal to the taxable value of all property assessed within
the project area.

���� For the purpose of this
definition, "property tax increment base" means the aggregate taxable
value of all property assessed which is located within the redevelopment
project area as of October 1st of the year preceding the year in which the redevelopment
incentive grant agreement is authorized.

���� "Public electric vehicle
charging station" means an electric vehicle charging station located at a
publicly available parking space.

���� "Public hydrogen fueling
station" means publicly available equipment to store and dispense hydrogen
fuel to vehicles according to industry codes and standards.

���� "Publicly available
parking space" means a parking space that is available to, and accessible
by, the public and may include on-street parking spaces and parking spaces in
surface lots or parking garages, but shall not include: a parking space that is
part of, or associated with, a private residence; or a parking space that is
reserved for the exclusive use of an individual driver or vehicle or for a
group of drivers or vehicles, such as employees, tenants, visitors, residents
of a common interest development, or residents of an adjacent building.

���� "Qualified incubator
facility" means a commercial building located within an incentive area:
which contains 100,000 or more square feet of office, laboratory, or industrial
space; which is located near, and presents opportunities for collaboration
with, a research institution, teaching hospital, college, or university; and
within which, at least 75 percent of the gross leasable area is restricted for
use by one or more technology startup companies during the commitment period.

���� "Qualified residential
project" means a redevelopment project that is predominantly residential
and includes multi-family residential units for purchase or lease, or dormitory
units for purchase or lease, having a total project cost of at least
$17,500,000, if the project is located in any municipality with a population
greater than 200,000 according to the latest federal decennial census, or
having a total project cost of at least $10,000,000 if the project is located
in any municipality with a population less than 200,000 according to the latest
federal decennial census, or is a disaster recovery project, or having a total
project cost of $5,000,000 if the project is in a Garden State Growth Zone.

���� "Qualifying economic
redevelopment and growth grant incentive area" or "incentive
area" means:

���� a.���� an aviation district;

���� b.��� a port district;

���� c.���� a distressed
municipality;
[
or
]

���� d.���
a distressed
neighborhood; or

����
e.
���� an area (1)
designated pursuant to the "State Planning Act," P.L.1985, c.398
(C.52:18A-196 et seq.), as:

���� (a) �Planning Area 1
(Metropolitan);

���� (b) �Planning Area 2
(Suburban); or

���� (c) �Planning Area 3 (Fringe
Planning Area);

���� (2) �located within a smart
growth area and planning area designated in a master plan adopted by the New
Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of
P.L.1968, c.404 (C.13:17-6) or subject to a redevelopment plan adopted by the
New Jersey Meadowlands Commission pursuant to section 20 of P.L.1968, c.404
(C.13:17-21);

���� (3) located within any land
owned by the New Jersey Sports and Exposition Authority, established pursuant
to P.L.1971, c.137 (C.5:10-1 et seq.), within the boundaries of the Hackensack
Meadowlands District as delineated in section 4 of P.L.1968, c.404 (C.13:17-4);

���� (4) located within a regional
growth area, rural development area zoned for industrial use as of the
effective date of P.L.2016, c.75, town, village, or a military and federal
installation area designated in the comprehensive management plan prepared and
adopted by the Pinelands Commission pursuant to the "Pinelands Protection
Act," P.L.1979, c.111 (C.13:18A-1 et seq.);

���� (5) �located within the
planning area of the Highlands Region as defined in section 3 of P.L.2004,
c.120 (C.13:20-3) or in a highlands development credit receiving area or
redevelopment area;

���� (6) �located within a Garden
State Growth Zone;

���� (7) �located within land
approved for closure under any federal Base Closure and Realignment Commission
action; or

���� (8) �located only within the
following portions of the areas designated pursuant to the "State Planning
Act," P.L.1985, c.398 (C.52:18A-196 et al.), as Planning Area 4A (Rural
Planning Area), Planning Area 4B (Rural/Environmentally Sensitive) or Planning
Area 5 (Environmentally Sensitive) if Planning Area 4A (Rural Planning Area),
Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area 5
(Environmentally Sensitive) is located within:

���� (a) �a designated center under
the State Development and Redevelopment Plan;

���� (b) �a designated growth
center in an endorsed plan until the State Planning Commission revises and
readopts New Jersey's State Strategic Plan and adopts regulations to revise
this definition as it pertains to Statewide planning areas;

���� (c) �any area determined to be
in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79
(C.40A:12A-5 and C.40A:12A-6) or in need of rehabilitation pursuant to section
14 of P.L.1992, c.79 (C.40A:12A-14);

���� (d) �any area on which a
structure exists or previously existed including any desired expansion of the
footprint of the existing or previously existing structure provided the
expansion otherwise complies with all applicable federal, State, county, and
local permits and approvals;

���� (e) �the planning area of the
Highlands Region as defined in section 3 of P.L.2004, c.120 (C.13:20-3) or a
highlands development credit receiving area or redevelopment area; or

���� (f) �any area on which an
existing tourism destination project is located.

���� "Qualifying economic
redevelopment and growth grant incentive area" or "incentive
area" shall not include any property located within the preservation area
of the Highlands Region as defined in the "Highlands Water Protection and
Planning Act," P.L.2004, c.120 (C.13:20-1 et al.).

���� "Redevelopment incentive
grant agreement" means an agreement between:

���� a.���� the State and the New
Jersey Economic Development Authority and a developer; or

���� b.��� a municipality and a
developer, or a municipal ordinance authorizing a project to be undertaken by a
municipal redeveloper, under which, in exchange for the proceeds of an
incentive grant
or tax credit under section 4 of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill)
, the developer agrees to
perform any work or undertaking necessary for a redevelopment project,
including the clearance, development or redevelopment, construction, or
rehabilitation of any structure or improvement of commercial, industrial,
residential, or public structures or improvements within a qualifying economic
redevelopment and growth grant incentive area or a transit village.

���� "Redevelopment
project" means a specific construction project or improvement, including
lands, buildings, improvements, real and personal property or any interest
therein, including lands under water, riparian rights, space rights and air
rights, acquired, owned, leased, developed or redeveloped, constructed,
reconstructed, rehabilitated or improved, undertaken by a developer, owner or
tenant, or both, within a project area and any ancillary infrastructure project
including infrastructure improvements in the public right-of-way, as set forth
in an application to be made to the authority.� The use of the term
"redevelopment project" in sections 3 through 18 of P.L.2009, c.90
(C.52:27D-489c et al.)
and section 4 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill)
shall not be limited to only
redevelopment projects located in areas determined to be in need of
redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and
C.40A:12A-6) but shall also include, but not be limited to, any work or undertaking
in accordance with the "Redevelopment Area Bond Financing Law,"
sections 1 through 10 of P.L.2001, c.310 (C.40A:12A-64 et seq.) or other
applicable law, pursuant to a redevelopment plan adopted by a State entity, or
as described in the resolution adopted by a public entity created by State law
with the power to adopt a redevelopment plan or otherwise determine the
location, type and character of a redevelopment project or part of a
redevelopment project on land owned or controlled by it or within its jurisdiction,
including but not limited to, the New Jersey Meadowlands Commission established
pursuant to P.L.1968, c.404 (C.13:17-1 et seq.), the New Jersey Sports and
Exposition Authority established pursuant to P.L.1971 c.137 (C.5:10-1 et seq.)
and the Fort Monmouth Economic Revitalization Authority created pursuant to
P.L.2010, c.51 (C.52:27I-18 et seq.).� A redevelopment project may include the
development of zero-emission vehicle fueling and charging infrastructure.

���� "Redevelopment
utility" means a self-liquidating fund created by a municipality pursuant
to section 12 of P.L.2009, c.90 (C.52:27D-489l) to account for revenues
collected and incentive grants paid pursuant to section 11 of P.L.2009, c.90
(C.52:27D-489k), or other revenues dedicated to a redevelopment project.

���� "Revenue increment
base" means the amounts of all eligible revenues from sources within the
redevelopment project area in the calendar year proceeding the year in which
the redevelopment incentive grant agreement is executed, as certified by the
State Treasurer for State revenues, and the chief financial officer of the
municipality for municipal revenues.

���� "SDA district" means
an SDA district as defined in section 3 of P.L.2000, c.72 (C.18A:7G-3).

���� "SDA municipality"
means a municipality in which an SDA district is situated.

���� "Technology startup
company" means a for profit business that has been in operation fewer than
five years and is developing or possesses a proprietary technology or business
method of a high-technology or life science-related product, process, or
service which the business intends to move to commercialization.

���� "Tourism destination
project" means a redevelopment project that will be among the most visited
privately owned or operated tourism or recreation sites in the State, and which
is located within the incentive area and has been determined by the authority
to be in an area appropriate for development and in need of economic
development incentive assistance.

���� "Transit project"
means a redevelopment project located within a 1/2-mile radius, or one-mile
radius for projects located in a Garden State Growth Zone, surrounding the
mid-point of a New Jersey Transit Corporation, Port Authority Transit Corporation,
or Port Authority Trans-Hudson Corporation rail, bus, or ferry station platform
area, including all light rail stations.

���� "Transit village"
means a community with a bus, train, light rail, or ferry station that has
developed a plan to achieve its economic development and revitalization goals
and has been designated by the New Jersey Department of Transportation as a
transit village.

���� "University
infrastructure" means any of the following located on the campus of
Rutgers, the State University of New Jersey:

���� a.���� buildings and
structures, such as academic buildings, recreation centers, indoor athletic
facilities, public works garages, and water and sewer treatment and pumping
facilities;

���� b.��� open space with
improvements, such as athletic fields and other outdoor athletic facilities,
planned commons, and parks; and

���� c.���� transportation
facilities, such as bus shelters and parking facilities.

���� "Urban transit hub"
means an urban transit hub, as defined in section 2 of P.L.2007, c.346
(C.34:1B-208), that is located within an eligible municipality, as defined in
section 2 of P.L.2007, c.346 (C.34:1B-208), or all light rail stations and property
located within a one-mile radius of the mid-point of the platform area of such
a rail, bus, or ferry station if the property is in a qualified municipality
under the "Municipal Rehabilitation and Economic Recovery Act,"
P.L.2002, c.43 (C.52:27BBB-1 et al.).

���� "Vacant commercial
building" means any commercial building or complex of commercial buildings
having over 400,000 square feet of office, laboratory, or industrial space that
is more than 70 percent unoccupied at the time of application to the authority
or is negatively impacted by the approval of a "qualified business
facility," as defined pursuant to section 2 of P.L.2007, c.346
(C.34:1B-208), or any vacant commercial building in a Garden State Growth Zone
having over 35,000 square feet of office, laboratory, or industrial space, or
over 200,000 square feet of office, laboratory, or industrial space in
Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, or Salem
counties available for occupancy for a period of over one year.

���� "Vacant health facility
project" means a redevelopment project where a health facility, as defined
by section 2 of P.L.1971, c.136 (C.26:2H-2), currently exists and is considered
vacant.� A health facility shall be considered vacant if at least 70 percent of
that facility has not been open to the public or utilized to serve any patients
at the time of application to the authority.

����
�Workforce housing� means
housing developed as part of a qualified residential project, as defined in
section 4 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill), and affordable to, according to federal Department of Housing and
Urban Development or other recognized standards for home ownership and rental
costs, and occupied by, or reserved for occupancy by, households with a gross
household income equal to more than 80 percent but less than 120 percent of the
median gross income for households of the same size within the housing region
in which the qualified residential project is located.� Workforce housing may
be reserved for occupancy by households with at least one member working in the
municipality in which the qualified residential property is located.

���� "Zero-emission
vehicle" means a vehicle certified as a zero emission vehicle pursuant to
the California Air Resources Board zero emission vehicle standards for the
applicable model year, including but not limited to, battery electric-powered
vehicles and hydrogen fuel cell vehicles.

���� "Zero-emission vehicle
fueling and charging infrastructure" means infrastructure to charge or
fuel zero-emission vehicles, including but not limited to, public electric
vehicle charging stations and public hydrogen fueling stations.

(cf: P.L.2024, c.71, s.1.)

���� 2.��� Section 8 of P.L.2009,
c.90 (52:27D-489h) is amended to read as follows:

���� 8.� a.� (1)� The authority, in
consultation with the State Treasurer, shall promulgate an incentive grant
application form and procedure for the Economic Redevelopment and Growth Grant
program.�
Within 30 days of the effective date of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill), the authority shall promulgate
an alternate incentive grant application form to be used by developers seeking
tax credit pursuant to section 4 of P.L.��� , c.
(C. ) (pending
before the Legislature as this bill).

���� (2)� (a) �The Local Finance
Board, in consultation with the authority, shall develop a minimum standard
incentive grant application form for municipal Economic Redevelopment and
Growth Grant programs.

���� (b)�� Through regulation, the
authority shall establish standards for redevelopment projects seeking State or
local incentive grants based on the green building manual prepared by the
Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6),
regarding the use of renewable energy, energy-efficient technology, and
non-renewable resources in order to reduce environmental degradation and
encourage long-term cost reduction.

���� b.��� Within each incentive
grant application, a developer shall certify information concerning:

���� (1)�� the status of control of
the entire redevelopment project site;

���� (2)�� all required State and
federal government permits that have been issued for the redevelopment project,
or will be issued pending resolution of financing issues;

���� (3)�� local planning and
zoning board approvals, as required, for the redevelopment project;

���� (4)�� estimates of the revenue
increment base, the eligible revenues for the project, and the assumptions upon
which those estimates are made.

���� c.���� (1)� With regard to
State tax revenues proposed to be pledged
or tax credit to be awarded

for an incentive grant
,
the authority and the State Treasurer shall
review the project costs, evaluate and validate the project financing gap
estimated by the developer, and conduct a State fiscal impact analysis to
ensure that the overall public assistance provided to the project, except with
regards to a qualified residential project, a mixed use parking project, or a
project involving university infrastructure, will result in net benefits to the
State including, without limitation, both direct and indirect economic benefits
and non-financial community revitalization objectives, including but not
limited to, the promotion of the use of public transportation in the case of
the ancillary infrastructure project portion of any transit project.

���� (2)�� With regard to local
incremental revenues proposed to be pledged for an incentive grant the
authority and the Local Finance Board shall review the project costs, and
except with respect to an application by a municipal redeveloper, evaluate and
validate the project financing gap projected by the developer, and conduct a
local fiscal impact analysis to ensure that the overall public assistance
provided to the project, except with regards to a qualified residential
project, a mixed use parking project, or a project involving university
infrastructure, will result in net benefits to the municipality wherein the
redevelopment project is located including, without limitation, both direct and
indirect economic benefits and non-financial community revitalization
objectives, including but not limited to, the promotion of the use of public
transportation in the case of the ancillary infrastructure project portion of
any transit project.

���� (3)�� The authority, State
Treasurer, and Local Finance Board may act cooperatively to administer and
review applications, and shall consult with the Office of State Planning on
matters concerning State, regional, and local development and planning
strategies.

���� (4)�� The costs of the
aforementioned reviews shall be assessed to the applicant as an application
fee, except for applications submitted on or after January 1, 2018, but before
June 30, 2019, which are amended after the effective date of P.L.2020, c.156
(C.34:1B-269 et al.), the authority may waive fees.

���� (5)�� A developer who has
already applied for an incentive grant award prior to the effective date of the
"New Jersey Economic Opportunity Act of 2013," P.L.2013, c.161
(C.52:27D-489p et al.), but who has not yet been approved for the grant, or has
not executed an agreement with the authority, may proceed under that
application or seek to amend the application or reapply for an incentive grant
award for the same project or any part thereof for the purpose of availing himself
or herself of any more favorable provisions of the Economic Redevelopment and
Growth Grant program established pursuant to the "New Jersey Economic
Opportunity Act of 2013," P.L.2013, c.161 (C.52:27D-489p et al.), except
that projects with costs exceeding $200,000,000 shall not be eligible for
revised percentage caps under subsection d. of section

19 of P.L.2013, c.161
(C.52:27D-489i).

(cf: P.L.2021, c.160, s.56)

���� 3.��� Section 9 of P.L.2009,
c.90 (52:27D-489i) is amended to read as follows:

���� 9.��� a. �The authority is
authorized to enter into a redevelopment incentive grant agreement with a
developer for any redevelopment project located within a qualifying economic
redevelopment and growth grant incentive area that does not qualify as such
an

area solely by virtue of being a transit village.

���� b.��� The decision of whether
to enter into a redevelopment incentive grant agreement is solely within the
discretion of the authority and the State Treasurer, provided that they both
agree to enter into an agreement.

���� c.���� The Chief Executive
Officer of the authority, in consultation with the State Treasurer shall
negotiate the terms and conditions of any redevelopment incentive grant
agreement on behalf of the State.

���� d.��� (1) �The redevelopment
incentive grant agreement shall specify the maximum amount of project costs,
the amount of the incentive grant to be awarded the developer, the frequency of
payments, and the eligibility period, which shall not exceed 20 years, during which
reimbursement will be granted
or tax credit awarded
, and for a project
receiving an incentive grant in excess of $50 million, the amount of the
negotiated repayment amount to the State, which may include, but not be limited
to, cash, equity, and warrants.� Except for redevelopment incentive grant
agreements with a municipal redeveloper, or with the developer of a
redevelopment project solely with respect to the cost of infrastructure
improvements in the public right-of-way including any ancillary infrastructure
project in the public right-of-way, in no event shall the base amount of the
combined reimbursements
or tax credit
under redevelopment incentive
grant agreements with the State or municipality exceed 20 percent of the total
project cost, except in a Garden State Growth Zone, which shall not exceed 30
percent.

���� (2)��
[
The
]

Except in
the case of a qualified residential project receiving tax credit pursuant to
section 4 of P.L.��� , c.
(C. ) (pending
before the Legislature as this bill), the
authority shall be permitted to
increase the amount of the reimbursement under the redevelopment incentive
grant agreement with the State by up to 10 percent of the total project cost if
the project is:

���� (a)�� located in a distressed
municipality which lacks adequate access to nutritious food in the judgment of
the Chief Executive Officer of the authority and will include either a
supermarket or grocery store with a minimum of 15,000 square feet of selling
space devoted to the sale of consumable products or a prepared food
establishment selling only nutritious ready to serve meals;

���� (b)�� located in a distressed
municipality which lacks adequate access to health care and health services in
the judgment of the Chief Executive Officer of the authority and will include a
health care and health services center with a minimum of 10,000 square feet of
space devoted to the provision of health care and health services;

���� (c)�� located in a distressed
municipality which has a business located therein that is required to respond
to a request for proposal to fulfill a contract with the federal government as
set forth in subsection d. of section 3 of P.L.2011, c.149 (C.34:1B-244);

���� (d)�� a transit project;

���� (e)�� a qualified residential
project in which at least 10 percent of the residential units are constructed
as and reserved for moderate income housing;

���� (f)�� located in a highlands
development credit receiving area or redevelopment area;

���� (g)�� located in a Garden
State Growth Zone;

���� (h)�� a disaster recovery
project;

���� (i)��� an aviation project;

���� (j)��� a tourism destination
project; or

���� (k)�� substantial
rehabilitation or renovation of an existing structure or structures.

���� (3)�� The maximum amount of
any redevelopment incentive grant shall be equal to up to 30 percent of the
total project costs, except for projects located in a Garden State Growth Zone,
in which case the maximum amount of any redevelopment incentive grant shall be
equal to up to 40 percent of the total project costs.� Notwithstanding anything
to the contrary contained within this section, the maximum amount of any
redevelopment incentive grant with respect to a mixed use parking project shall
be up to 100 percent of the total project costs allocable to the parking
component of the project, and shall be up to 40 percent of the total project
costs allocable to the non-parking component of the project.

���� e.���� Except in the case of a
qualified residential project, a mixed use parking project, or a project
involving university infrastructure, the authority and the State Treasurer may
enter into a redevelopment incentive grant agreement only if they make a
finding that the State revenues to be realized from the redevelopment project
will be in excess of the amount necessary to reimburse the developer for its
project financing gap.� This finding may be made by an estimation based upon
the professional judgment of the Chief Executive Officer of the authority and
the State Treasurer.

���� f.���� In deciding whether to
recommend entering into a redevelopment incentive grant agreement and in
negotiating a redevelopment agreement with a developer, the Chief Executive
Officer of the authority shall consider the following factors:

���� (1)�� the economic feasibility
of the redevelopment project;

���� (2)�� the extent of economic
and related social distress in the municipality and the area to be affected by
the redevelopment project or the level of site specific distress to include
dilapidated conditions, brownfields designation, environmental contamination,
pattern of vacancy, abandonment, or under utilization of the property, rate of
foreclosures, or other site conditions as determined by the authority;

���� (3)�� the degree to which the
redevelopment project will advance State, regional, and local development and
planning strategies;

���� (4)�� the likelihood that the
redevelopment project shall, upon completion, be capable of generating new tax
revenue in an amount in excess of the amount necessary to reimburse the
developer for project costs incurred as provided in the redevelopment incentive
grant agreement, provided, however, that any tax revenue generated by a
redevelopment project that is a disaster recovery project shall be considered
new tax revenue even if the same or more tax revenue was generated at or on the
site prior to the disaster;

���� (5)�� the relationship of the
redevelopment project to a comprehensive local development strategy, including
other major projects undertaken within the municipality;

���� (6)�� the need of the
redevelopment incentive grant agreement to the viability of the redevelopment
project or the promotion of the use of public transportation; and

���� (7)�� the degree to which the
redevelopment project enhances and promotes job creation and economic
development or the promotion of the use of public transportation.

���� g.��� (1) �A developer who has
entered into a redevelopment incentive grant agreement with the authority and
the State Treasurer pursuant to this section may, upon notice to and consent of
the authority and the State Treasurer, pledge, assign, transfer, or sell any or
all of its right, title and interest in and to the agreements and in the
incentive grants payable thereunder, and the right to receive same, along with
the rights and remedies provided to the developer under the agreement.� Any
such assignment shall be an absolute assignment for all purposes, including the
federal bankruptcy code.

���� (2)�� Any pledge of incentive
grants made by the developer shall be valid and binding from the time the
pledge is made and filed in the records of the authority.� The incentive grants
pledged and thereafter received by the developer shall immediately be subject
to the lien of the pledge without any physical delivery thereof or further act,
and the lien of any pledge shall be valid and binding against all parties
having claims of any kind in tort, contract, or otherwise against the developer
irrespective of whether the parties have notice thereof.� Neither the
redevelopment incentive grant agreement nor any other instrument by which a
pledge under this section is created need be filed or recorded except with the
authority.

(cf: P.L.2018, c.44, s.3)

���� 4.��� (New section)� a.� As
used in this section:

���� "Qualified residential
project" means a redevelopment project having no less than 25 dwelling
units, which is predominantly residential and includes multi-family residential
units for purchase or lease, or dormitory units for purchase or lease.� The use
of the term "qualified residential project" in this section shall not
be limited by the total project cost.

���� b.��� Up to the limits
established in sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.)
and subsection c. of this section, and in accordance with a redevelopment
incentive grant agreement, beginning upon the receipt of occupancy permits for
a qualified residential project, or upon such other event evidencing project
completion as set forth in the incentive grant agreement, the State Treasurer
shall award tax credit for a qualified residential projects located in
distressed neighborhoods.� A qualified residential project shall be eligible
for tax credit if:

���� (1)� at least 20 percent of
the residential units are constructed and reserved for low- to moderate-income
housing; and

���� (2)� at least 20 percent of
the residential units are constructed and reserved for workforce housing.

���� c.���� The value of all tax
credit approved by the authority pursuant to this section shall not exceed $600
million.

���� d.��� (1)� A developer shall
submit an application for tax credit in accordance with section 8 of P.L.2009,
c.90 (C.52:27D-489h).� The authority shall accept applications for tax credit
until the value of all credits approved by the authority reaches the limit set
forth in subsection c. of this section.

���� (2)�� If the authority
approves an application for tax credit, then the developer shall execute a redevelopment
incentive grant agreement pursuant to section 9 of P.L.2009, c.90
(C.52:27D-489i).� The State Treasurer shall award tax credit to the developer
equal to the amount set forth in the incentive grant agreement.

���� 5.��� This act shall take
effect immediately.

STATEMENT

���� This bill would provide up to
$600 million in tax credit available to developers to construct affordable
housing projects in distressed neighborhoods.� A distressed neighborhood is
defined in the bill as a neighborhood located within a distressed municipality,
in which the median family income does not exceed 80 percent of the Statewide
or metropolitan median family income, as reported in the most recently
completed decennial census published by the United States Census Bureau.�
Distressed municipalities include certain municipalities that receive
assistance from the State, municipalities under the supervision of the Local
Finance Board pursuant to the provisions of the "Local Government
Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), municipalities
identified by the Director of the Division of Local Government Services in the
Department of Community Affairs to be facing serious fiscal distress, SDA
(Schools Development Authority) municipalities, and municipalities in which a
major rail station is located.� An SDA municipality is defined as a district
that received education opportunity aid or preschool expansion aid in the
2007-2008 school year.

���� In order to qualify for tax
credit, a developer is required to construct a residential project in that: (1)
at least 20 percent of the residential units are constructed and reserved for
low- to moderate-income housing; and (2) at least 20 percent of the residential
units are constructed and reserved for workforce housing.� Developers are to
apply for tax credit in the same manner in which developers applied for grants
under the Economic Redevelopment Growth Program.

���� This bill would incentivize
development of affordable and market-rate housing in distressed neighborhoods
around the State.� The bill is expected to create balanced redevelopment in
municipalities experiencing financial trouble and a more comprehensive urban
development strategy.� The bill is designed to transform the State's urban
centers from areas with just offices, to 24-hours per day, seven-days per week
communities with robust residential populations.