LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 5670
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 6, 2023
SUMMARY
Synopsis: Establishes Social Impact Fund; appropriates $20 million.
Type of Impact: One-time State cost increase; annual State revenue increases.
Agencies Affected: Department of the Treasury
Office of Legislative Services Estimate
Fiscal Impact
One-Time State Cost Increase $20 million
Annual State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill would result in a one-time
$20 million increase in State expenditures to capitalize the Social Impact Fund. The bill
appropriates $20 million from the General Fund to the Social Impact Fund for this purpose.
The OLS assumes that management fees paid to one or more fund managers would come from
this appropriation.
 The bill also is expected to result in an indeterminate increase in annual State revenues from
repayments to the fund and any investment earnings credited to the fund.
BILL DESCRIPTION
This bill directs the Department of the Treasury to establish a Social Impact Investment Fund
in the General Fund to: facilitate the financing of water and transportation infrastructure
components of redevelopment projects in financially impaired municipalities; and to provide
predevelopment loans, in consultation with the New Jersey Housing and Mortgage Finance
Agency, to qualifying affordable housing developers that are seeking to participate in Low Income
Housing Tax Credit-supported development under the Unified Application for New Jersey
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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Housing and Mortgage Finance Agency Multifamily Rental Housing Production Programs, and to
finance construction and maintenance of certain early childhood education facilities.
The bill allows the Department of the Treasury to select one or more fund managers to
administer the fund through one or more special purposes vehicles. The bill specifies that the fund
manager is to raise private capital of at least a 1:1 ratio for every public dollar invested, net of the
fund manager’s operating expenses and fees, by utilizing the fund manager’s own funds or by
drawing on private capital including direct investments or coordinated co-investments.
The bill provides that the department is to credit the fund with: moneys appropriated by the
Legislature for the purpose of the fund; distributions from payments or repayments made to the
fund; earnings received, if any, from the investment or reinvestment of money credited to the fund;
and any money that, from time to time, may otherwise become available for the purposes of the
fund. The bill appropriates to the fund from the General Fund $20 million to effectuate the
purposes of this bill.
On or before June 30 of the second year following the effective date of this bill, the State
Treasurer, in consultation with the New Jersey Housing and Mortgage Finance Agency, is to
prepare and submit a written report regarding the use of funds appropriated to the Social Impact
Investment Fund.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill would result in a one-time $20 million increase in State
expenditures to capitalize the Social Impact Fund. The bill appropriates $20 million from the
General Fund to the Social Impact Fund for this purpose. The OLS assumes that management fees
paid to one or more fund managers would come from this appropriation.
The bill also is expected to result in an indeterminate increase in annual State revenues from
repayments to the fund and any investment earnings credited to the fund.
Section: Local Government
Analyst: Abigail Stoyer
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).