An Act authorizing the expenditure of funds by the New Jersey Infrastructure Bank for the purpose of making loans to eligible project sponsors to finance the cost of certain hazard mitigation and resilience projects.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
Bank means the New Jersey Infrastructure Bank, established pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4).
CHAMP means the Community Hazard Assistance Mitigation Program established pursuant to section 5 of P.L.2023, c.63 (C.58:11B-5a).
Loan origination fee means the fee charged by the bank to pay a portion of the costs incurred by the bank in the implementation of the Community Hazard Assistance Mitigation Program.
Project sponsor means a local government unit receiving a loan from the bank pursuant to this act.
2. a. The New Jersey Infrastructure Bank is authorized to expend the aggregate sum of $7,198,045, or such amounts as can be supported through balances in the "Community Hazard Assistance Mitigation Program Revolving Loan Fund" established pursuant to section 3 of P.L.2023, c.63 (C.58:11B-10.6), including any appropriations from the Legislature, for the purpose of making loans to, or on behalf of, local government units to finance all or a portion of the cost of construction of the projects listed in section 4 of this act.
b. The bank is authorized to increase the aggregate sum specified in subsection a. of this section by acquiring additional lending capital. The bank is authorized to utilize the following sources of funds to acquire such lending capital or for any purpose of the Community Hazard Assistance Mitigation Program:
(1) the amounts of interest earned pursuant to a loan made to a project sponsor participating in CHAMP;
(2) the interest earned on amounts deposited pending their distribution to project sponsors, as provided in subsection b. of section 6 of this act; and
(3) the amounts of the loan origination fee, as provided in subsection c. of section 6 of this act, and any other CHAMP fees.
3. The New Jersey Infrastructure Bank is authorized to make loans to, or on behalf of, the project sponsors for the hazard mitigation and resilience projects listed in subsection a. of section 4 of this act up to the individual amounts indicated and in the priority stated, except that any such amount may be reduced by the bank pursuant to subsection a. of section 6 of this act, or if a project fails to meet the requirements of section 5 of this act. The bank is authorized to increase any such amount pursuant to subsections b. and c. of section 6 of this act.
4. a. The following CHAMP projects shall be known and may be cited as the State Fiscal Year 2025 Community Hazard Assistance Mitigation Program Project Eligibility List:
Applicant, Project Description Estimated Total Estimated Total
Project No. Project Amount Loan Amount
Jersey City, McGovern Park Resilience $5,053,524 $1,360,000
RB0906-001
Hoboken City, Southwest Park Expansion $13,188,272 $1,800,000
RB0905-001
Stafford Township, Elevations $2,532,436 $570,000
RB1531-001
Bergen County Flood Mitigation of $5,993,832 $1,610,000
Utilities Authority, Joint Meeting
RB0200-UA-001 Pump Station
Rochelle Park Township, Reconstruction of Sanitary $2,595,146 $2,140,000
RB0254-001 Sewer Pump Station
Marlboro Township, Nolan Road $1,757,775 $520,000
RB1330-001 Streambank Stabilization
Total Projects: 6 $31,120,985 $8,000,000
b. The bank is authorized to adjust the allowable loan amount for each project authorized in this section as appropriate, provided that the total amount of loan issuance remains within available funds, and each loan is issued pursuant to the terms and conditions of the State Fiscal Year 2025 Community Hazard Assistance Mitigation Program.
5. Any loan made by the New Jersey Infrastructure Bank pursuant to this act shall be subject to the requirements of this section.
a. The chairperson, vice-chairperson, or secretary of the bank shall certify that the project complies with the applicable provisions of P.L.2023, c.63, P.L.1985, c.334, and any amendatory and supplementary acts thereto, and any rules and regulations adopted pursuant thereto, as applicable, and any policy statements relating to CHAMP set forth in the State Fiscal Year 2025 CHAMP Financial Plan. In making this certification, the chairperson, vice-chairperson, or secretary may conclusively rely on the project review conducted by the State Office of Emergency Management without any independent review thereof by the bank.
b. The loan shall be conditioned upon inclusion of the project on a project eligibility list approved pursuant to section 6 of P.L.2023, c.63 (C.58:11B-20.5).
c. The loan shall be repaid within a period not to exceed 30 years of project completion or the making of the loan.
d. The loan shall not exceed the allowable project cost of the project, exclusive of capitalized interest, administrative expenses associated with federal funding programs, if applicable, interest earned on project costs as provided in subsection b. of section 6 of this act, the amounts of the loan origination fee as provided in subsection c. of section 6 of this act, and increased costs as determined in accordance with the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy statements relating to CHAMP set forth in the State Fiscal Year 2025 CHAMP Financial Plan.
e. The loan shall bear interest, exclusive of any cost of issuance charges, late charges, or administrative fees payable to the bank pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5) and pursuant to the provisions of the Safeguarding Tomorrow through Ongoing Risk Mitigation Act, Pub. L. 116-284, by the project sponsors receiving Community Hazard Assistance Mitigation Program loans in accordance with the terms and conditions set forth in the financial plan required pursuant to section 7 of P.L.2023, c.63 (C.58:11B-22.5).
f. The loan shall be subject to all other terms and conditions as the bank shall determine to be consistent with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) and any rules and regulations adopted pursuant thereto, the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8), and any policy statements relating to CHAMP and the financial plan required by section 7 of P.L.2023, c.63 (C.58:11B-22.5). The eligibility lists and authorization for the making of loans pursuant to this act shall expire on July 1, 2025, and any project sponsor which has not executed and delivered a loan agreement with the bank for a loan authorized in this act shall no longer be entitled to that loan.
6. a. The New Jersey Infrastructure Bank is authorized to reduce the individual amount of loa