The bill amends the New Jersey Aspire Program by clarifying key definitions and expanding eligibility criteria for municipalities seeking assistance. It defines "government-restricted municipality" to include those with a municipal revitalization index distress score of at least 40, those designated for urban aid in the 2019 fiscal year, and those under financial restrictions from the Municipal Stabilization and Recovery Act. The bill also introduces new terms related to economic development, such as "collaborative workspace" and "incentive area," and emphasizes community engagement in redevelopment projects. Additionally, it revises the definition of "project cost" for residential projects that reserve all units for low- and moderate-income households, specifying what costs are included and excluded.

Moreover, the bill establishes requirements for developers seeking incentive awards, including demonstrating economic feasibility and compliance with environmental standards, while mandating prevailing wage rates for construction workers. It modifies the tax credit allocation process under the New Jersey Urban Enterprise Zones Act, allowing for a net positive benefit to the State that is up to 50 percentage points less than the standard requirement for projects in government-restricted municipalities. The bill also introduces phased tax abatements for improvements, extending reductions in utility connection fees, and allows for project labor agreements to provide flexibility in labor costs. Overall, these amendments aim to enhance the effectiveness of the Aspire Program in stimulating economic development in distressed areas of New Jersey.

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