This bill proposes a tax credit program aimed at developers who engage in affordable housing projects within designated "distressed neighborhoods" in New Jersey. A "distressed neighborhood" is defined as a census tract where the median family income is at or below 80% of the statewide or metropolitan median. The legislation amends existing laws to include this definition and expands the criteria for qualifying economic redevelopment and growth grant incentive areas to include these neighborhoods, alongside aviation and port districts. Developers must reserve at least 20% of residential units for low- to moderate-income housing and another 20% for workforce housing to qualify for the tax credits, which can total up to $600 million.

Furthermore, the bill introduces new definitions and clarifications related to redevelopment incentive grants, including "qualifying economic redevelopment and growth grant incentive area" and "redevelopment incentive grant agreement." It establishes that these agreements can involve tax credits in addition to grants and expands the definition of "redevelopment project" to encompass various infrastructure improvements. The bill mandates the creation of an alternate application form for developers seeking tax credits and outlines the authority's responsibilities in reviewing applications, including conducting fiscal impact analyses. The maximum reimbursement or tax credit under these agreements is capped at 20% of total project costs, with potential increases for projects meeting specific criteria, thereby aiming to stimulate economic development and revitalization in financially troubled municipalities.

Statutes affected:
Introduced: 52:27D-489