Revises various provisions concerning New Jersey Aspire Program and surrender of tax credits issued under New Jersey Economic Recovery Act of 2020.*
What changed between versions
The eligibility period was reduced from 15 years for commercial/mixed-use projects to a flat 10 years for all project types. Developers may now elect a shorter period not exceeding five years for projects in government-restricted municipalities or special mission non-profit projects.
The bill's scope expanded to address surrender of tax credits issued under the New Jersey Economic Recovery Act of 2020 (P.L.2023, c.983), replacing the previous Redevelopment Project Bridge Financing Program provision.
The definition of 'commercial project' was expanded to include industrial space predominantly used for warehouse distribution or fulfillment centers, provided the eligible project cost includes at least $10,000,000 in environmental remediation costs.
The definitions for 'stranded asset,' 'targeted industry,' and 'mixed-use project' were removed from the bill.
The definition of 'government-restricted municipality' was expanded to include specific municipalities identified by population range, county seat status, and MRI distress score thresholds, effectively adding named municipalities by description.
Special mission non-profit projects were redefined: housing units changed from 'affordable' to 'supportive housing for tenants requiring special needs or social services,' commercial space increased from 10,000 to 25,000 square feet (limited to licensed child care centers), and these projects are now exempt from the net benefit test, affordable housing requirements, market study requirement, and the incentive area location requirement.
The prevailing wage requirement for building services work no longer applies to residential tenants or residential subtenants of a redevelopment project. Previously, the exemption was limited to tenants with less than 5,000 square feet; now all residential tenants are fully exempt.
Community benefits agreement requirements were modified: special mission non-profit projects are now exempt regardless of location, public hearings must be previously advertised, stakeholders have an opportunity to be heard (rather than the governing body hearing testimony), and meeting minutes must be included in the adopting resolution.
The 60 percent occupancy requirement for commercial projects now begins in the fourth year of the eligibility period rather than the third year following issuance of a final certificate of occupancy, giving developers more time before the requirement takes effect.
Return-on-investment protections were restructured: the authority no longer reduces or recaptures tax credits at project certification solely due to increased ROI. A new lower threshold (10 percent instead of 15 percent) applies in years where the director purchases a tax credit certificate. Payment amounts calculated at project certification are now spread as equal annual payments over the first seven years rather than paid in full.
The threshold for phased project completion changed from 'total project cost in excess of $50,000,000' to 'eligible project cost in excess of $50,000,000,' which may allow more projects to qualify for phased completion since eligible project cost excludes certain items.
