The bill amends the New Jersey Aspire Program to enhance its effectiveness in stimulating economic development, particularly in distressed municipalities. Key revisions include clarifying the definition of "government-restricted municipality" to encompass areas with a municipal revitalization index distress score of at least 40, those designated for urban aid in the 2019 fiscal year, and municipalities under financial restrictions. The bill introduces new definitions related to economic development, such as "collaborative workspace" and "project financing gap," and emphasizes community engagement in redevelopment projects. It also specifies that when 100% of residential units are designated for low- and moderate-income households, project costs will include certain developer fees incurred prior to securing permanent financing.

Additionally, the bill establishes specific eligibility criteria for developers seeking incentive awards, including the requirement to demonstrate economic feasibility without the incentive and compliance with environmental standards. A significant insertion mandates that construction workers be paid prevailing wages unless a project labor agreement is in place. The bill also revises tax credit provisions, allowing for lower net benefit requirements for projects in government-restricted municipalities and introducing a five-year tax exemption for improvements made under the Aspire Program. It deletes previous provisions regarding the adjustment of tax credits based on financing gaps and emphasizes the importance of community benefits agreements for larger projects, ensuring public oversight and compliance.

Statutes affected:
Introduced: 34:1B-323, 34:1B-325, 34:1B-326, 34:1B-328, 40:14B-22.3