Establishes "Urban Wealth Fund Pilot Program."

A4321

ASSEMBLY, No. 4321

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

SYNOPSIS

���� Establishes "Urban Wealth Fund Pilot
Program."

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

establishing the "Urban Wealth Fund Pilot
Program" and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

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

���� 1.� a.� The New Jersey
Economic Development Authority, in consultation with the State Treasurer, the
New Jersey Redevelopment Authority, the Division of Local Government Services
in the Department of Community Affairs, and the Chief Diversity Officer in the
State Department of the Treasury, shall develop the "Urban Wealth Fund
Pilot Program" for the purpose of:

���� (1)�� encouraging State
entities and pilot municipalities to identify publicly-owned assets that are
capable of generating revenue;

���� (2)�� selecting publicly-owned
assets to be held in the urban wealth fund;

���� (3)�� contracting with a
private asset management firm or firms to manage publicly-owned assets held in
the urban wealth fund in a manner designed to enhance the revenue generated
from those assets;

���� (4)�� serving as a holding
company for publicly-owned assets held in the urban wealth fund;

���� (5)�� facilitating the
transfer of management of selected publicly-owned assets to the private asset
management firm or firms; and

���� (6)�� enabling participating
State entities and pilot municipalities to allocate increased revenue derived
from publicly-owned assets held by the urban wealth fund to specific public
purposes, including:

���� (a)�� assistance to
minority-owned businesses;

���� (b)�� improvements to
infrastructure;

���� (c)�� investments in
education; and

���� (d)�� reductions in property
taxes.

���� b.��� The New Jersey Economic
Development Authority shall:

���� (1)�� establish program
guidelines and establish criteria to evaluate assets for inclusion in the
program;

���� (2)�� notify State entities
and pilot municipalities of the opportunity to participate in the pilot
program;

���� (3)�� devise forms and
procedures to enable State entities and pilot municipalities to apply to
participate in the program; and�

���� (4)�� provide a portal on its
Internet website to enable State entities, pilot municipalities, and private
asset management firms to submit to the authority questions about the program
and applications to participate in the program.���

���� c.���� A State entity or pilot
municipality interested in participating in the program may, in accordance with
program guidelines established by the authority:

���� (1)�� undertake an inventory
and evaluation of its assets for the purpose of identifying assets that have
sound commercial viability;�

���� (2)�� conduct a valuation of
assets identified as having sound commercial viability for the purpose of
determining the current value and the potential value of each publicly-owned
asset;

���� (3)�� identify publicly-owned
assets that are undervalued and underleveraged;

���� (4)�� undertake a preliminary
assessment of the structural issues, financial benefits and risks, and social
and policy impacts of participating in the program;

���� (5)�� identify assets to
include in an application to participate in the program; and

���� (6)�� submit an application to
the authority in accordance with the program guidelines established by the
authority.

���� d.��� Upon receipt of an
application, the authority shall:

���� (1)�� assess the structural
issues, financial benefits and risks, and social and policy impacts of
including assets in the urban wealth fund;

���� (2)�� preliminarily screen and
evaluate each asset identified in an application against established program
criteria and rank each asset based on the likelihood that inclusion of the
asset in the program may result in a significant increase in revenue generated
from the asset; and

���� (3)�� determine whether to
approve an application, in whole or in part, or with conditions, and determine
which assets identified in an application to include in the program. The
authority may engage in negotiations with an applicant for the purpose of
assisting an applicant in revising an application to satisfy program
requirements.

���� e.���� The authority shall
establish criteria for the selection of a private asset management firm to
manage assets held in the urban wealth fund and shall advertise a request for
proposals from potential private asset management firms in an open and public
manner.� The authority may award a contract to a private firm or firms to
manage assets held in the urban wealth fund for a term of no more than five
years.�

���� f.���� A private asset
management firm selected by the authority shall manage assets held in the urban
wealth fund in a manner that will ensure compliance with all provisions of law
applicable to the asset, and program guidelines established by the authority, however,
the focus of the firm�s management of the portfolio of assets shall emphasize
ways to enhance revenue to be derived from the assets.

���� g.��� The authority shall at
least annually engage in an accounting of revenues derived from assets held in
the fund and shall distribute to each program participant its share of revenues
attributable to the participant�s asset or assets held in the fund.��

���� h.��� A participating pilot
municipality may appropriate revenues distributed pursuant to subsection g. of
this section for public purposes authorized under the program guidelines, which
shall include:

���� (1)�� assistance to
minority-owned businesses;

���� (2)�� improvements to
infrastructure;

���� (3)�� investments in
education; and

���� (4)�� reductions in property
taxes.

���� i.���� Prior to the conclusion
of the fourth year following the award of a contract pursuant to subsection e.
of this section, the authority shall prepare and deliver to the Governor and to
the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a
report on the pilot program, which shall include recommendations for changes to
the program and recommendations as to whether to allow the program to expire,
to extend the pilot program, or to make the program permanent.

j.� Upon
conclusion of the fifth year following the award of a contract pursuant to
subsection e. of this section, the authority shall return control over the
management of an asset included in the fund to the State entity or pilot
municipality that owns the asset.

k.� As used in
this section:

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

���� "Pilot municipality"
means a "qualified municipality" as defined in section 3 of the
"New Jersey Urban Redevelopment Act," P.L.1996, c.62 (C.55:19-22).�

���� "Pilot program" or "program"
means the "Urban Wealth Fund Pilot Program" established pursuant to
subsection a. of this section.

���� "Publicly-owned asset"
or "asset" means a government-owned asset that is capable of
generating revenue.

���� "Urban wealth fund"
or "fund" means an investment fund that is set up to manage
publicly-owned assets in order to maximize return on the assets as a means of
generating revenue.

���� 2.��� This act shall take
effect on the first day of the fourth month next following enactment and shall
expire upon the return of control over the management of assets held in the
fund to the respective State entity or pilot municipality that owns the assets.

STATEMENT

���� This bill would establish the "Urban
Wealth Fund Pilot Program" for the purpose of determining whether
identification of undervalued publicly-owned assets, which are capable of
generating revenue, and enhancing the ability of those assets to generate
revenue, by depoliticizing and professionalizing management and control over
those assets, is viable and should be extended statewide.

���� The New Jersey Economic
Development Authority (EDA) would develop program details, in consultation with
the State Treasurer, the New Jersey Redevelopment Authority, the Division of
Local Government Services in the Department of Community Affairs, and the Chief
Diversity Officer in the State Department of the Treasury.� The purpose of the
program is to:

�

encourage State
entities and pilot municipalities to identify publicly-owned assets that are
capable of generating revenue;

�

select
publicly-owned assets to be held in the urban wealth fund;

�

contract with a
private asset management firm or firms to manage publicly-owned assets held in
the urban wealth fund in a manner designed to enhance the revenue generated
from those assets;

�

serve as a
holding company for publicly-owned assets held in the urban wealth fund;

�

facilitate the
transfer of management of selected publicly-owned assets to the private asset
management firm or firms; and

�

enable
participating State entities and pilot municipalities to allocate increased
revenue derived from publicly-owned assets held by the urban wealth fund to
specific public purposes, including:

o

assistance to minority-owned
businesses;

o

improvements to infrastructure;

o

investments in education; and

o

reductions in property taxes.

���� The bill would require the EDA
to establish program guidelines and establish criteria to evaluate assets for
inclusion in the program.� The bill would direct the EDA to: notify State
entities and pilot municipalities of the opportunity to participate in the
pilot program; devise forms and procedures to enable State entities and pilot
municipalities to apply to participate in the program; and provide a portal on
its Internet website to enable State entities, pilot municipalities, and
private asset management firms to submit to the authority questions about the
program, and to submit applications to participate in the program.

���� A State entity or pilot
municipality interested in participating in the program may, in accordance with
program guidelines to be established by the EDA:

�

undertake an
inventory and evaluation of its assets for the purpose of identifying assets
that have sound commercial viability;

�

conduct a
valuation of assets identified as having sound commercial viability for the
purpose of determining the current value and the potential value of each
publicly-owned asset;

�

identify
publicly-owned assets that are� undervalued and underleveraged;

�

undertake a
preliminary assessment of the structural issues, financial benefits and risks,
and social and policy impacts of participating in the program;

�

identify assets
to include in an application to participate in the program; and

�

submit an
application to the EDA in accordance with program guidelines established by the
EDA.

���� Upon receipt of an
application, the EDA would:

�

assess the
structural issues, financial benefits and risks, and social and policy impacts
of including assets in the urban wealth fund;

�

preliminarily
screen and evaluate each asset identified in an application against established
program criteria and rank each asset based on the likelihood that inclusion of
the asset in the program may result in a significant increase in revenue
generated from the asset; and

�

determine
whether to approve an application, in whole or in part, or with conditions, and
determine which assets identified in an application to include in the program.�
The bill would authorize the EDA to engage in negotiations with an applicant
for the purpose of assisting the applicant in revising an application to
satisfy program requirements.

���� The bill would direct the EDA
to establish criteria for the selection of a private asset management firm to
manage assets held in the urban wealth fund and advertise a request for
proposals from potential private asset management firms in an open and public
manner.� The authority may award a contract to a private firm or firms to
manage assets held in the urban wealth fund for a term of no more than five
years.

���� The bill provides that a
private asset management firm selected by the EDA is to manage assets held in
the urban wealth fund in a manner that will ensure compliance with all
provisions of law applicable to the asset, and program guidelines established
by the EDA, however, the focus of the firm�s management of the portfolio of
assets shall emphasize ways to enhance revenue to be derived from the assets.

���� The bill would require the EDA
to at least annually engage in an accounting of revenues derived from assets
held in the fund, and distribute to each program participant its share of
revenues attributable to the participant�s asset or assets held in the fund.�
The bill provides that a participating pilot municipality may appropriate these
revenues for public purposes authorized under the program guidelines, which
would include: assistance to minority-owned businesses; improvements to
infrastructure; investments in education; and reductions in property taxes.

���� The bill would require the EDA
to prepare and deliver to the Governor and the Legislature a report on the
pilot program, including the EDA�s recommendations for changes to the program
and its recommendations as to whether the Legislature should allow the pilot
program to expire, extend the pilot program, or make the program permanent.�
The bill would direct the EDA to prepare and deliver the report prior to the
conclusion of the fourth year following the award of a contract to the private
asset management firm.� Upon conclusion of the fifth year following the award
of that contract, the authority would return control over the management of
asset held in the Urban Wealth Fund to the State entity or pilot municipality
that owns the asset.